Greenhouse gas (GHG) emissions are one of the major causes of rising global warming, and the companies from the consumer sector including FMCG, retail, packaging, food, and beverages account for a significant amount of the global emissions. CO2, Methane & NOx gases form a major part of greenhouse gases released from Fossil Fuels such as gas and oil. Due to rising GHG emissions from companies, it became important among major contributing sectors to report gas emissions during their operations.
Companies from the consumer sector are under increasing pressure to reduce their carbon footprint. Consumers are becoming more aware of excess carbon dioxide emissions' detrimental environmental effects. Their consumption behavior changes due to this, and they take an active interest in sustainability issues.
Diageo Plc (Diageo) is an alcoholic beverages company that produces, distributes, markets, and sells spirits, and beer products. The company markets products under Johnnie Walker, Smirnoff, Baileys, Captain Morgan, Tanqueray, Guinness, McDowell’s No.1, and CIROC brand names.
Total GHG emissions (Scope 1 & 2) of Diageo in 2022 were 447 thousand tonnes of CO2 equivalents, a decrease of 5% from 2021. Diageo has set a target to achieve net zero emissions in its direct operations (Scope 1 & 2) by 2030 in line to limit global warming to 1.5 degrees Celsius.
GHG emissions are generally classified into Scope 1,2 & 3 emissions. Scope 1 includes direct GHG emissions from stationary fuel combustion and refrigerant gases. Scope 2 encompasses indirect GHG emissions from the on-site generation and purchase of electricity. Scope 3 involves all other indirect GHG emissions in Diageo’s value chain.
In 2022, Diageo’s Scope 1 emissions were 436 thousand tonnes of CO2eq, and Scope 2 emissions were 11 thousand tonnes of CO2eq. Diageo’s Scope 3 emissions were 5,435 thousand tonnes of CO2eq during the same year.
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