Procurement Magazine April W1 2026 | Page 116

DIAGEO
SUSTAINABILITY
The company has committed to implementing 10 regenerative agriculture programmes in key sourcing landscapes by 2030. A standout initiative is its investment of up to £ 5m( US $ 6.7m) over five years into Scottish peatland restoration. While peat provides the characteristic smoky flavour for many Scotch whiskies, its role in the ecosystem is far more significant. Peatlands store more carbon than all UK forests combined, yet 80 % are currently degraded.
By partnering with Caledonian Climate and the RSPB to restore 3,000 hectares, Diageo is not just hitting carbon targets; it is protecting the biodiversity and water management systems essential for Scotch production.
Ewan Andrew, President, Global Supply & Procurement and Chief Sustainability Officer at Diageo, says:“ Restoring and protecting Scotland’ s peatlands is essential to addressing climate change, protecting biodiversity and reducing carbon emissions.
“ Peatlands also play an important role in water management, ensuring the sustainability of Scotch whisky’ s number one ingredient.
“ Through collective action with other partners and producers, we’ ll restore many more times the amount of peat than we will use.”
Similarly, Heineken’ s“ Brew a Better World 2030” strategy uses regenerative practices to build long-term stability into its raw material sourcing. By working directly with farmers on

DIAGEO

HEADQUARTERS: LONDON, ENGLAND
NUMBER OF EMPLOYEES: 29,632
MARKET CAP: £ 42.03BN( US $ 56.88BN)
NUMBER OF COUNTRIES: 180 +
low-till practices and optimised fertiliser management, Heineken is proactively de-risking its supply chain against agricultural disruption.
Digital twins and the tech-enabled supply chain While agricultural restoration protects the source, digital innovation is being deployed to protect the process. The complexity of managing a global supply chain spanning over 70 countries requires a level of oversight that traditional reporting cannot provide.
Heineken has addressed this by partnering with Siemens to implement‘ Energy Digital Twins’. By creating a virtual replica of a brewery, Heineken can simulate and analyse energy usage in the virtual world before committing to physical changes. Initial simulations revealed that 70 % of energy use was linked to heating and cooling.
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