Diageo : Sustainability & Responsibility Performance Addendum 2020

August 10, 2020 at 03:49 am EDT

Sustainability & Responsibility Performance Addendum to the Annual Report 2020

Contents

3 Introduction

7 GRI Index

Universal standards

101: Foundation - reporting principles

102: General disclosures

103: Management approach

Topic-specific standards

28 200: Economic

300: Environmental

400: Social

79 United Nations Global Compact (UNGC) Index

84 Our response to the Sustainability Accounting Standards Board (SASB)

86 Reporting boundaries and methodologies

92 External assurance

Cover images, from left to right:

Top row: Employee photo competition winner, India; a Diageo colleague at a brewery in Kenya

Second row: Diageo 'Raising the Bar' fund; a performance of our flagship theatre-based 'Smashed' education programme, which informs young people about the dangers of underage drinking; Learning for Life participants in Colombia

Third row: Tree planting in Kenya; Lagavulin Distillery on the Isle of Islay in Scotland; maintenance work on a water, sanitation and hygiene programme in Kenya

Fourth row: Learning for Life participants in Thailand; our DRINKiQ quiz; a community member using one of our water, sanitation and hygiene facilities in Kenya.

DIAGEO S&R Performance Addendum to the Annual Report 2020

Welcome

Our ambition is to create one of the best performing, most trusted and respected consumer products companies in the world.

To achieve that ambition, we need to make sure we are doing business the right way, from grain to glass. That means thinking about the long-term value we create and the risks and opportunities of our operating environment and business model. It also means ensuring we are proud of what we do at work, at home and in our communities.

Alongside our Annual Report and our website, this Performance Addendum contributes to that ambition, by reporting transparently on elements of our non-financial performance that play a vital role in delivering our strategy.

How we report to our stakeholders

Annual Report 2020

Who are our stakeholders?

Everyone who is affected by our business, and everyone who affects it, is a stakeholder. A detailed description of our stakeholder engagement process is on pages 12-13 of our Annual Report. We provide further details in disclosure 101-01 on page 9 of this Performance Addendum.

Annual Report

Where we present our most material disclosures and describe how our strategy delivers value for our business and our communities.

diageo.com

Where, through the 'In society' section, we give further details of our approach and performance, including examples of our strategy in action.

Performance Addendum

Where we give additional disclosures in line with the GRI Standards index and the UNGC advanced reporting criteria index, plus our response to the Sustainability Accounting Standards Board (SASB).

If you have any questions or comments about this report or our strategy and performance, we'd like to hear from you. Please contact sustainability@diageo.com

Since 2014 we have used the International Integrated Reporting Commission (IIRC)'s framework to guide us as we integrate sustainability within our business.

DIAGEO S&R Performance Addendum to the Annual Report 2020

What matters most - to our stakeholders and to our business

Back in 2015, we conducted a materiality analysis with a range of external stakeholders to help us determine the environmental, social and governance issues that mattered most to them, comparing the results with what mattered most to our business. These findings informed many of the social and environmental targets for 2020 that you will find on pages 32-37 of our Annual Report.

This year, we began developing our strategy to support sustainable growth over the critical decade until 2030, carrying out a rigorous materiality assessment. This looked at the external trends shaping our operating

environment and how we can most effectively align our work with the UN Sustainable Development Goals. We interviewed many internal and external stakeholders and explored the findings in workshops with experts from a range of our business functions in Bangalore, London, Nairobi, New York and Singapore. We also held a full-day workshop with our Executive Committee. The findings from this exercise are guiding the development of our strategy and priorities. While the launch of our strategy and the targets that will drive its delivery have been delayed by Covid-19 until later this fiscal year,

we are clear on our direction of travel and our overall goals.

We welcome engagement from all stakeholders to help us develop and deliver our strategy.

We believe all the topics presented in our materiality assessment below are important to our business. This matrix illustrates the view of both internal and external stakeholders about which topics are most critical, with the rankings helping to inform the development of our sustainability and responsibility strategy for the decade ahead. For more details, please see page 32 of our Annual Report.

important

Avoiding

or adapting

to climate

change

Supporting

good

Preventing

livelihoods

harmful use

and working

of alcohol

conditions

Ensuring

responsible

marketing/

retailing of

alcohol

Including and

Ensuring

Strengthening

empowering

women,

access to

security

minorities

clean water

of agri-food

and under-

sanitation

chains

represented

and hygiene

groups

stakeholdersExternal

Promoting

moderation

Reducing or

eliminating

waste

Protecting

the natural

ecosystems

our business

relies on

Less important

Internal stakeholders

More important

Key

Promote positive drinking

Champion inclusion and diversity

Pioneer grain-to-glass sustainability

DIAGEO S&R Performance Addendum to the Annual Report 2020

Our strategy

We are the stewards of some of the most iconic brands in the world, built over generations by entrepreneurs who understood the importance of pioneering solutions and investing to create enduring value.

Our strategy follows their example, by pioneering grain-to-glass sustainability, championing inclusion and diversity, and promoting positive drinking. It aims to harness

our entire business to create value for us, and for the communities where we live, work, source and sell. By enhancing our brands' relationships with consumers, earning the trust of stakeholders, building our resilience and productivity, driving performance, and mitigating risk, our strategy is key to ensuring our business continues to create sustained, quality growth over the long term.

These aims are underpinned by a commitment to sound corporate governance and transparent reporting. A respect for human rights, including the right to health and safety, is embedded in every aspect of our business.

	Our ambition
	is to create
Where we:	shared value...

Live

Work

Source

Sell

With our:

Company

Working with employees, partners and suppliers

Communities

Acting as a good corporate citizen and supporting community development

Consumers

Increasing our positive impact through brand partnerships

In what matters most:

Promote positive drinking

Champion inclusion and diversity

Pioneer grain-to-glass sustainability

For our:

Business

Communities

Partners

DIAGEO S&R Performance Addendum to the Annual Report 2020

Creating long-term value: highlights from 2020

Our strategy continues to evolve as we build towards the business we want to be in 2030 and beyond. Our performance against our 2020 and 2025 targets is reported in detail on pages 32-35 of our Annual Report.

On this page, we include highlights of our 2020 performance against three key strategic priorities, which are underpinned by our commitment to doing business the right way, with integrity and respect for human rights.

Promote positive	Champion inclusion
drinking	and diversity

Pioneer grain-to-glass sustainability

We want the millions of people who choose to enjoy our brands to 'drink better, not more'. We are committed to promoting moderation and tackling alcohol misuse across the world. We focus on three core pillars: campaigning to reduce harmful drinking; promoting moderation; and improving laws and industry standards.

We have ambitious targets for our programmes to reduce alcohol-related harm.

By the end of 2020, we had:

Educated 1m young people, parents and teachers about the dangers of underage drinking
Reached 229.2m people with moderation messages from our brands
Collected 25.3m pledges never to drink and drive through #JoinThePact, and continued to work in partnership with UNITAR, the United Nations Institute for Training and Research, to support major road safety events aimed at reducing traffic deaths and injuries, and improve road safety globally.1

We want to create an inclusive and diverse culture that ensures our people thrive, and to champion inclusion and diversity beyond our business to drive change in the communities and societies around us.

In 2020, we:

Built on our long-term focus on gender diversity with 39% of leadership roles in our business held by women, surpassing our target for 2020 and setting us on the road to our 2025 target of 40%
Continued to build an inclusive, diverse culture, including further rolling out of our Family Leave and Dignity at Work policies
Worked with others to drive societal change, including through our supplier diversity programmes and our work with partners such as the United Nations Unstereotype Alliance, which combats harmful stereotypes in advertising, and Open for Business, which advocates LGBTQ+ rights around the world.

We aim to promote inclusive growth by fostering sustainable value chains, delivering integrated community programmes, and using natural resources efficiently across our whole value chain. We have ambitious targets for water use, plastics and other packaging, and waste. We use approved, science-based targets for carbon reduction in line with our decarbonisation strategy.

In 2020, we:

Reached over 290,000 people with our community programmes, addressing multiple strands of our strategy, including skills and entrepreneurship, women's empowerment, and WASH (access to water, sanitation and hygiene)
Achieved cumulative reductions in absolute greenhouse gas emissions from our direct operations of 50.1%2
Achieved a cumulative improvement of 46% in water efficiency2
Ensured that 65.5% of our electricity is from renewable sources, attaining our RE100 commitment five years ahead of plan, and sourcing 100% of electricity at all our UK sites from renewable sources such as wind, hydro and solar.

We continued to build our understanding

1. Our #JoinThePact campaign, which, through signing a global pact, encourages people never to drink and drive, reached

25.3 million people by 30 June 2020, and we are proud of how it has raised awareness. Building on what we have learnt from our programmes and discussions with stakeholders, we will be evolving our approach to drink driving to focus on digital education campaigns that promote changes in attitudes.

As a result, this is the last year we report #JoinThePact data.

and disclosure of the strategic and near-term risks and opportunities that climate change presents, as described on pages 42-43 of our Annual Report.

2. Against our 2007 baseline.

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

This index outlines our response to the GRI Sustainability Reporting Standards

Our definition of material is relatively broad, and includes most issues that surfaced as part of our materiality assessment, regardless of priority, as illustrated on page 4. We have continued to develop our approach to reporting, building on our 2019 GRI report, and continue to report as fully as we can on our most material issues. We have reported on as many standards as possible, against the priorities set by our materiality review. This year we have reported on the revised GRI Standards for the third time, staying true to our philosophy of reporting in a transparent manner to global standards of best practice on a range of economic, environmental and social impacts.

Translating our Sustainability & Responsibility Strategy to GRI

In addition to informing our strategy, our materiality assessment guides our reporting and has helped us determine which issues to address in our Annual Report, on our website and in our

Performance Addendum, so as to be most informative for our stakeholders. The following table maps our activities and programmes against the GRI Standards.

GRI Standards					Our strategic focus area

Universal standards	101	Foundation	• Approach to reporting	• Our approach to reporting
		- reporting principles

	102	General disclosures	• Organisational profile	• Business integrity
			• Strategy
			•	Ethics and integrity
			•	Governance
			•	Stakeholder engagement
			•	Reporting practice
	103	Management approach	• Material topics and their boundaries	• Our approach to reporting
			• Management approaches
			•	Evaluation of management approaches

Topic-specific standards 200	Economic

300 Environmental

400 Social

Pioneer grain-to-glass sustainability
Pioneer grain-to-glass sustainability
Promote positive drinking
Champion inclusion and diversity

DIAGEO S&R Performance Addendum to the Annual Report 2020

How we have complied with the GRI Standards

This report has been prepared in accordance with the GRI Standards: comprehensive option. The material in this report references the following disclosures:

FOUNDATION

GRI 101-01 to 101-10 from GRI 101: Foundation 2016

GENERAL

GRI 102-01 to 102-56 from GRI 102: General Disclosures 2016

MANAGEMENT APPROACH

GRI 103-01 to 103-03 from GRI 103: Management Approach 2016

ECONOMIC

GRI 201-01 to 201-04 from GRI 201: Economic Performance 2016

GRI 202-01 to 202-02 from GRI 202: Market Presence 2016

GRI 203-01 to 203-02 from GRI 203: Indirect Economic Impacts 2016

GRI 204-01 from GRI 204: Procurement Practices 2016

GRI 205-01 to 205-03 from GRI 205: Anti-corruption 2016

GRI 206-01 from GRI 206: Anti-competitive Behaviour 2016

ENVIRONMENTAL

GRI 301-01 to 301-03 from GRI 301: Materials 2016

GRI 302-01 to 302-05 from GRI 302: Energy 2016

GRI 303-01 to 303-05 from GRI 303: Water 2018

GRI 304-01 to 304-04 from GRI 304: Biodiversity 2016

GRI 305-01 to 305-07 from GRI 305: Emissions 2016

GRI 306-01 to 306-05 from GRI 306: Effluents and Waste 2016

GRI 307-01 from GRI 307: Environmental Compliance 2016

GRI 308-01 to 308-02 from GRI 308: Supplier Environmental Assessment 2016

SOCIAL

GRI 401-01 to 401-03 from GRI 401: Employment 2016

GRI 402-01 from GRI 402: Labour/Management Relations 2016

GRI 403-01 to 403-10 from GRI 403: Occupational Health and Safety 2018

GRI 404-01 to 404-03 from GRI 404: Training and Education 2016

GRI 405-01 to 405-02 from GRI 405: Diversity and Equal Opportunity 2016

GRI 406-01 from GRI 406: Non-discrimination 2016

GRI 407-01 from GRI 407: Freedom of Association and Collective Bargaining 2016

GRI 408-01 from GRI 408: Child Labour 2016

GRI 409-01 from GRI 409: Forced or Compulsory Labour 2016

GRI 410-01 from GRI 410: Security Practices 2016

GRI 411-01 from GRI 411: Rights of Indigenous Peoples 2016

GRI 412-01 to 412-03 from GRI 412: Human Rights Assessment 2016

GRI 413-01 to 413-02 from GRI 413: Local Communities 2016

GRI 414-01 to 414-02 from GRI 414: Supplier Social Assessment 2016

GRI 415-01 from GRI 415: Public Policy 2016

GRI 416-01 to 416-02 from GRI 416: Customer Health and Safety 2016

GRI 417-01 to 417-03 from GRI 417: Marketing and Labelling 2016

GRI 418-01 from GRI 418: Customer Privacy 2016

GRI 419-01 from GRI 419: Socioeconomic Compliance 2016

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 101: FOUNDATION

REPORTING PRINCIPLES

Disclosure		Our response

101-01	Stakeholder inclusiveness	For us, everyone who is affected by our business, and everyone who affects it, is a stakeholder.
	The reporting organisation shall	In the In Society section of our website, under stakeholder engagement, we have set out each stakeholder
	identify its stakeholders, and explain

	group and provided examples of how we currently engage them on all issues, including sustainability and
	how it has responded to their
	responsibility. Our stakeholder groups, and how we engage with them, are also covered in our Annual Report
	reasonable expectations and interest.
	on pages 12-13.


101-02	Sustainability context	Our Annual Report explains the wider context in which we operate and presents our sustainability
	The report shall present the reporting	performance in relation to both our corporate performance and global sustainable development issues,
	organisation's performance in the	including the Paris Agreement and the UN Sustainable Development Goals.
	wider context of sustainability.	Our Annual Report also presents how our material issues, economic, environmental and social, relate to our

		long-term strategy, risks, opportunities and goals, including throughout our value chain.

101-03	Materiality	Our aim is to report fully on issues we deem to be material and to explain our approach.
	The report shall cover topics that:	As referenced above, we worked with stakeholders to inform our materiality matrix, set out on page 4 of this

	a. Reflect the reporting organisation's	Performance Addendum.
	significant economic,
	environmental, and social impacts;
	or
	b. Substantively influence the
	assessments and decisions of
	stakeholders.

101-04	Completeness	Our coverage of material topics is explained in the Reporting boundaries and methodologies section at the
	The report shall include coverage of	end of this document.
	material topics and their boundaries,
	sufficient to reflect significant
	economic, environmental and social
	impacts, and to enable stakeholders
	to assess the reporting organisation's
	performance in the reporting period.

101-05	Accuracy	We clearly, consistently and transparently report our performance against our external targets for 2020 and
	The reported information shall be	2025, on pages 32-35 of our Annual Report.
	sufficiently accurate and detailed for	We explain our methodology for calculating performance against targets in the Reporting boundaries and
	stakeholders to assess the reporting
	methodologies section of this Performance Addendum. PricewaterhouseCoopers LLP (PwC) were engaged
	organisation's performance.
	to provide independent limited assurance over selected information in the Annual Report and Accounts and

		in this Sustainability & Responsibility Performance Addendum (PA) for the year ended 30 June 2020.
		Information that is within PwC's limited scope is marked with the symbol .
		We are developing our strategy to address our most material issues and support sustainable growth over the
		critical decade until 2030. While the launch of our strategy and the targets that will drive its delivery have
		been delayed by Covid-19 until later this fiscal year, we are clear on our direction of travel and our overall
		goals. We know we must be leaders in promoting positive drinking, global champions for water stewardship,
		and vocal advocates for a low carbon world. We must champion inclusion and diversity, within our business
		and in society, and make sure our programmes and our business as a whole contribute to building inclusive,
		thriving communities that work for everyone, wherever we live, work, source and sell. And we will go further
		in pioneering sustainability, including through encouraging regenerative agriculture and by exploring
		circular economy approaches as we seek to minimise waste in our operations and value chain.

101-06	Balance	We report against stretching targets and against GRI indicators, whether or not our performance has been
	The reported information shall reflect	strong. This gives a balanced view of our impacts, which have been defined taking into account the views of
	positive and negative aspects of the	a range of stakeholders.
	reporting organisation's performance	We aim to present information in such a way that the reader can assess trends in performance year on year.
	to enable a reasoned assessment of

overall performance.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 101: FOUNDATION continued

REPORTING PRINCIPLES continued

Disclosure		Our response

101-07	Clarity	Our sustainability and responsibility journey is told at a high level on our website with examples to bring
	The reporting organisation shall make	our strategy to life; we identify and report on the most material issues in
	our Annual Report; and we have
	information available in a manner that	produced this Performance Addendum to ensure readers can find all the information they seek, including
	is understandable and accessible to	our responses to all GRI Standards.
	stakeholders using that information.

101-08	Comparability	We continue to report against our external targets for 2020 and 2025 and GRI Standards, and have designed
	The reporting organisation shall	our Annual Report and this Performance Addendum to enable stakeholders to easily review our performance
	select, compile and report information	over time, and help readers find comparable information.
	consistently. The reported information	We will continue to report on our 2025 targets, and we are developing further targets to help drive
	shall be presented in a manner that
	performance to 2030.
	enables stakeholders to analyse
	Our #JoinThePact campaign, which encourages people to never drink and drive through signing a global
	changes in the organisation's
	performance over time, and that	pact, had reached 25.3 million people by the end of this year. Building on what we have learnt from our drink
	could support analysis relative	driving interventions and feedback from our stakeholders, we are evolving our approach to focus
	to other organisations.	on education programmes that promote changes in attitudes as a way to tackle drink driving. As a result,
		F20 will be our final year for #JoinThePact, and we will no longer include it in our reporting.

101-09 Reliability

The reporting organisation shall gather, record, compile, analyse and report information and processes used in the preparation of the report in a way that they can be subject to examination, and that establishes the quality and materiality of

the information.

Our reporting methodologies for sustainability and responsibility information can be found on pages 86-91 of this Performance Addendum. In some cases, our data and processes are assured by third parties -

see below.

PwC were engaged to provide independent limited assurance over selected information in the Annual Report and Accounts for the year ended 30 June 2020. Information that is within PwC's limited scope is marked with the symbol .

Corporate Citizenship were engaged to assess our community investment figures.

Corporate Citizenship is the manager of the London Benchmarking Group (a global standard for measuring, benchmarking and reporting on corporate community investment), of which Diageo is a member.

101-10 Timeliness

The reporting organisation shall report on a regular schedule so that information is available in time for stakeholders to make informed decisions.

We continue to publish this Performance Addendum alongside the Annual Report.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES

ORGANISATIONAL PROFILE

Disclosure		Our response

102-01	Name of organisation	Diageo plc.

102-02 Activities, brands, products and services

The reporting organisation shall report the following information:

A description of the organisation's activities
Primary brands, products and services, including an explanation of any products or services that are banned in certain markets.

Diageo produces more than 100 alcoholic beverage brands, with our global giants such as Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray and Guinness representing almost a third of our net sales. Key details about each of these brands can be found in the Our brands section, page 2, of the Annual Report, while an overview of our production can be found in the Our business model section, pages 10-11, and

a review of our product categories on pages 60-61.

We only sell products that are approved and legal in our markets. Some markets do not allow the sale of alcohol due to religious concerns and we respect this. If stakeholders or consumers have complaints either about a brand, its raw materials, or how it is marketed, they may complain to one of the many self-regulatory bodies of which Diageo is a member, or directly to Diageo through our website or our customer care lines. We will always respond to complaints to industry bodies and abide by the decisions made. We try to respond to all consumer enquiries or complaints, either through our call centre team or via email in response to queries that come through our website.

102-03	Location of headquarters	London, UK.
	The reporting organisation shall
	report the following information:
	a. Location of the organisation's
	headquarters.

102-04	Location of operations	Our products are sold in more than 180 countries around the world and we have 163 supply sites in 26
	The reporting organisation shall	countries. A breakdown of which markets are in each region can be found in the Our global reach section of
	report the following information:	the Annual Report, page 3.
	a. Number of countries where the
	organisation operates, and the
	names of countries where it has
	significant operations and/or that
	are relevant to the topics covered
	in the report.

102-05	Ownership and legal form	Full name: Diageo plc
	The reporting organisation shall	Registered number: 23307
	report the following information:
	Registered office: Lakeside Drive, London NW10 7HQ
	a. Nature of ownership and legal form.
	Place of registration: England and Wales

			Diageo is a limited liability public company listed on the London, New York, Paris and Dublin stock exchanges.

102-06	Markets served	Our customers vary from large global retailers and convenience stores, to bars, restaurants and hotels, to
	The reporting organisation shall	governments such as 'control states' in the United States, and state monopolies in certain countries like
	report the following information:	Sweden and Norway. These organisations are conduits to our shoppers and consumers, to whom we market.
	a. Markets served, including:	An overview of our business model can be found on pages 10-11 of the Annual Report, and a geographic
	breakdown is outlined in the Business reviews, pages 50-59.
	i.	geographic locations where

		products and services are
		offered;
	ii.	sectors served;

iii. types of customers and beneficiaries.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

ORGANISATIONAL PROFILE continued

Disclosure

Our response

102-07	Scale of the organisation
	The reporting organisation shall
	report the following information:

Scale of the organisation, including:
1. total number of employees;
2. total number of operations;
3. net sales (for private sector organisations) or net revenues (for public sector organisations);
4. total capitalisation (for private sector organisations) broken down in terms of debt
  and equity;
5. quantity of products or services provided.

Diageo employs 27,775 people around the world. The production side of the business includes 163 sites in 26 countries.

This year we made £11,752 million in net sales. Further details of our business model can be found on pages 10-11 of the Annual Report, and detailed financial performance is included in the Financial statements, from page 109.

102-08 Information on employees and other workers

The reporting organisation shall report the following information:

Total number of employees by employment contract (permanent and temporary), by gender
Total number of employees by employment contract (permanent and temporary), by region
Total number of employees by employment type (full-time and part-time), by gender
Whether a significant portion of the organisation's activities are performed by workers who are not employees. If applicable,
a description of the nature and scale of work performed by workers who are not employees
Any significant variations in the numbers reported in Disclosures 102-08-a,102-08-b, and 102-08-c (such as seasonal variations in the tourism or agricultural industries)
An explanation of how the data have been compiled, including any assumptions made.

Employees by region, by gender, and by employment contract type1

				Fixed-term/
	Part-time	Full-time	Permanent	temporary	Total

North America

Men	5	1,578	1,572	11	1,583

Women	3	1,052	1,042	13	1,055

Europe and Turkey
Men	141	5,921	5,841	221	6,062

Women	373	3,652	3,796	229	4,025

Africa

Men	0	2,983	2,885	98	2,983

Women	1	1,160	1,092	69	1,161
Latin America and Caribbean

Men	0	1,700	1,691	9	1,700

Women	1	1,001	994	8	1,002

Asia Pacific

Men	10	6,091	5,972	129	6,101

Women	27	2,076	1,929	174	2,103

Diageo (total)

Men	156	18,273	17,961	468	18,429

Women	405	8,941	8,853	493	9,346

All	561	27,214	26,814	961	27,775

1. In some markets the concept of 'permanent employment' does not exist. For reporting purposes, we have considered as 'permanent' all those employees whose contract is not fixed-term/temporary.Part-time is defined as an employee not working at 100% of a Full-Time Equivalent.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

ORGANISATIONAL PROFILE continued

Disclosure			Our response

102-08	Information on employees and	Total workforce by employees and supervised workers, and by gender: this information is included in the
continued	other workers continued	Our people section of the Annual Report, page 27.
			Most people who work on behalf of Diageo are employed by Diageo, although, in common with most
			manufacturing companies, we also employ contractors, the numbers of whom vary significantly by region.
			For the most part, when we use contractors, it is for the following:
			• Construction projects, resulting from investments we are making in the business
			•	Logistics (from the end of the packaging line), such as warehouse operators, forklift truck drivers
			•	and loaders
			Selected sales and merchandising activity
			•	Cleaning, catering and site security.
			Some aspects of our business use seasonal employment, for example, in agricultural operations or in
			logistics and packing activities. In general, although seasonal employment is a feature of our business,
			it is not significant compared to our overall number of employees.

102-09	Supply chain	Around 29,000 direct suppliers from more than 100 countries provide us with the raw materials, expertise and
	The reporting organisation shall	other resources that help us make great brands. Many of those direct suppliers themselves have an extensive
	report the following information:	supply chain, connecting us with thousands more farmers and businesses. Details of how we work with our
	a. A description of the organisation's	suppliers are included in the Pioneer grain-to-glass sustainability section of the Annual Report, pages 28-29.

	supply chain, including its main
	elements as they relate to the
	organisation's activities, primary
	brands, products and services.

102-10	Significant changes to the	For acquisitions and disposals, see Note 8 to the Financial statements in the Annual Report, pages 136-137.
	organisation and its supply chain	For material organisational restructuring programmes, see Note 3 to the Financial statements in the
	The reporting organisation shall
	Annual Report, page 172. For changes in share capital structure, see Note 9 to the Financial statements in the
	report the following information:
	Annual Report, page 174.

	a. Significant changes to the	There were no material changes to the overall location of suppliers, structure of the supply chain, or our
	organisation's size, structure,
	relationships with suppliers during this reporting period. Other, less material changes in our supply chain
	ownership, or supply chain, including:
	occurred as a result of our routine tendering processes.
	i.	changes in the location of,
	We continue to promote local raw material sourcing, particularly in Africa. In 2020 we sourced 79%
		or changes in, operations,
		of the agricultural raw materials used in our African operations locally. This means we are importing
		including facility openings,
		proportionately fewer raw materials from Europe, and promoting economic development in local
		closings and expansions;
		communities, while maximising the tax benefits of local sourcing. Details are included in the Pioneer
	ii. changes in the share capital
	grain-to-glass sustainability section of the Annual Report, pages 28-29.
		structure and other capital
		formation, maintenance, and
		alteration operations (for private
		sector organisations);
	iii. changes in the location of
		suppliers, the structure of the
		supply chain, or relationships
		with suppliers, including
		selection and termination.

102-11	Precautionary principle	We take a precautionary approach to our environmental strategy, as described in our work to reduce
	or approach	greenhouse gases in the Pioneering grain-to-glass sustainability and Climate risk sections of the Annual
	The reporting organisation shall	Report, pages 28-29 and 42-43 respectively.
	report the following information:	We are developing our strategy to address our most material issues and support sustainable growth over

	a. Whether and how the organisation	the critical decade until 2030. While the launch of our strategy and the targets that will drive its delivery have
	applies the precautionary principle	been delayed by Covid-19 until later this fiscal year, we are clear on our direction of travel and our overall
	or approach.	goals. We know we must continue to be global champions for water stewardship, and vocal advocates for
			a low carbon world. And we will go further in pioneering sustainability from grain to glass, including through
			encouraging regenerative agriculture and by exploring circular economy approaches as we seek to minimise
			waste in our operations and value chain.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

ORGANISATIONAL PROFILE continued

Disclosure

Our response

102-12	External initiatives
	The reporting organisation shall
	report the following information:

A list of externally-developed economic, environmental and social charters, principles, or other initiatives to which the organisation subscribes, or which it endorses.

Diageo is a signatory to a number of global external codes and charters that reflect our commitment to sustainability and responsibility. These include, among others, the UN Guiding Principles on Business and Human Rights, the UN Global Compact, the CEO Water Mandate, the CEO Water Resilience Coalition, the Sustainable Development Goals Business Avenger for SDG6 (clean water and sanitation), the Business Ambition for 1.5⁰C, the UN Women's Empowerment Principles and the We Mean Business commitments. More details can be found on the In Society section of our website.

102-13	Membership of associations
	The reporting organisation shall
	report the following information:

A list of the main memberships of industry or other associations, and national or international advocacy organisations.

We have helped establish many social aspects organisations (SAOs) - industry-funded bodies that work with governments, the private sector and NGOs to reduce harmful drinking. A list of our SAOs and trade associations that run responsible drinking initiatives can be found in the Alcohol policy section of our website.

STRATEGY

Disclosure		Our response

102-14	Statement from senior	In our Annual Report, pages 4-9, our Chairman and Chief Executive comment on how Diageo's role in society,
	decision-maker	sustainability and responsibility strategy and targets support Diageo's Performance Ambition to create one of
	The reporting organisation shall	the best performing, most trusted and respected consumer products companies in the world.
	report the following information:
	a. A statement from the most senior
	decision-maker of the organisation
	(such as CEO, chair, or equivalent
	senior position) about the relevance
	of sustainability to the organisation
	and its strategy for addressing
	sustainability.

102-15	Key impacts, risks and	Our 2020 and 2025 targets and strategy were informed by a stakeholder and financial analysis we conducted
	opportunities	in 2015, which helped us understand our most material issues.

The reporting organisation shall	This year, we carried out a further materiality analysis to determine what is most material to our stakeholders,
report the following information:
and to us, as we design our strategy for now until 2030 and beyond.

a. A description of key impacts,	Our analysis has confirmed the importance of several key themes: promoting positive drinking through
risks and opportunities.
encouraging moderation and tackling misuse; championing water stewardship and decarbonisation

	as part of pioneering sustainability from grain to glass; and championing inclusion and diversity both
	within our business and in the communities where we live, work, source and sell.
	The results of this study are shown in the materiality matrix found on page 4 of this Performance Addendum.

	Those risks considered most material from both a financial and non-financial perspective are included
	in our Annual Report, pages 38-41. As of this year, we have highlighted climate-related risk within our
	principal risk, sustainability and responsibility. Please see page 39 of our Annual Report for more information.
	We address climate risk further on pages 42-43 of our Annual Report.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

ETHICS AND INTEGRITY

Disclosure

Our response

102-16

Values, principles, standards and

Diageo has a set of five values that are at the heart of our business in delivering our Performance Ambition.

norms of behaviour

•

We are passionate about customers and consumers

The reporting organisation shall

report the following information:

• We give ourselves and each other the freedom to succeed

a. A description of the organisation's

•

We are proud of what we do

•

We strive to be the best

values, principles, standards and

norms of behaviour.

• We value each other

Our Code of Business Conduct ('our Code') sets out what we stand for as a business and how we

demonstrate the highest standards of integrity and ethical behaviour, guided by our strong purpose and

values. It provides clarity on how we are expected to behave to build the trust and respect of everyone that

comes into contact with our company.

Our Code, which was refreshed this year, is underpinned by a number of global policies, standards and

guidelines covering specific areas of our activities. We review our policies every year to ensure that we take

account of any changes in our external environment and update them accordingly. Each one reflects our

values and our commitment to doing business the right way and can be found on our website.

102-17

Mechanisms for advice and

Our Code, policies and standards provide practical guidance to ensure all our employees and everyone

concerns about ethics

who comes into contact with our company live the values and behaviours that underpin all of our work.

The reporting organisation shall

Diageo has a confidential service (SpeakUp) available for people to raise concerns about compliance with

report the following information:

the law, our Code of Business Conduct, any of our global policies or standards, or any other compliance

a. A description of internal and

and ethics

matter. The service is available

24 hours a day, 365 days a year, in all our 20 Code languages, and

external mechanisms for:

is accessible via telephone or at www.diageospeakup.com. It can be used by all employees, contractors

It is managed by an external company,

seeking advice about ethical

or any other interested party, such as suppliers or customers.

independent of Diageo, with staff trained to deal with reports.

and lawful behaviour, and

organisational integrity;

All reports are forwarded to Diageo's Global Business Integrity team who decide next steps. Overall statistics

ii.

reporting concerns about

and significant matters are then reported quarterly to our Executive and our Audit Committee.

unethical or unlawful behaviour,

Diageo does not tolerate reprisals against anyone who reports a concern or helps with an investigation

and organisational integrity.

in good faith. Anyone found to be involved in retaliation against an individual who has raised a concern

will be subject to disciplinary action.

More information is included in the Our principal risks and risk management section of the Annual Report,

pages 38-41.

102-18

Governance structure

Diageo's governance structure is included in the Governance section of the Annual Report, pages 72-74.

The reporting organisation shall

Our Chief Executive, Ivan Menezes, is ultimately accountable for overall economic and environmental,

report the following information:

social, and corporate governance (ESG) performance, while responsibility for the component parts of our

a. Governance structure of the

sustainability and responsibility strategy is shared between members of Diageo's Executive Committee.

organisation, including committees	To further improve our oversight of ESG, our Board now receives updates on our ESG strategy and
performance at least twice a year.
of the highest governance body

b. Committees responsible for
decision-making on economic,
environmental and social topics.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

GOVERNANCE

Disclosure

Our response

102-19	Delegating authority
	The reporting organisation shall
	report the following information:

Process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees.

Our Chief Executive, Ivan Menezes, is ultimately accountable for overall economic and ESG performance, while responsibility for the component parts of our sustainability and responsibility strategy is shared between members of Diageo's Executive Committee, the majority of whom report to the Chief Executive, as outlined in 102-20. Regional presidents and local managing directors are responsible for implementing the sustainability and responsibility strategy locally and driving performance.

Senior executives are accountable for each aspect of our sustainability and responsibility strategy, which is led by the Global Director of Society. When issues arise in Board or Executive Committee meetings that relate to these topics, accountability will be delegated to the designated individual. When issues or risks to do with other ESG topics are discussed, the Board or Committee assign an executive to look into it and report back. In some cases, an issue will become a standing item on the Board or Executive Committee agenda until it is resolved. To further improve our oversight of ESG, our Board now receives updates on our ESG strategy and performance at least twice a year.

102-20 Executive-level responsibility for economic, environmental and social topics

The reporting organisation shall report the following information:

Whether the organisation has appointed an executive-level position or positions with responsibility for economic, environmental and social topics
Whether post holders report directly to the highest governance body.

Our Chief Executive, Ivan Menezes, is ultimately accountable for ESG performance, and reports directly to the Board. Responsibility for the component parts of our sustainability and responsibility strategy, led by the Global Director of Society, is shared between members of Diageo's Executive Committee, the majority of whom report to the Chief Executive. For example:

The President, Global Supply and Procurement is responsible for environmental performance, health and safety, and for labour standards within the supply network; he also holds the post of Chief Sustainability Officer.
The Corporate Relations Director is responsible for social topics, specifically positive drinking and the social elements of our commitment to pioneering grain-to-glass sustainability.
Regional presidents and local managing directors are responsible for implementing our sustainability and responsibility strategy locally, and for driving performance.

102-21 Consulting stakeholders on economic, environmental and social topics

The reporting organisation shall report the following information:

Processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics
If consultation is delegated, describe to whom it is delegated and how the resulting feedback is provided to the highest governance body.

External stakeholders are consulted widely and may also raise questions on issues with us routinely, via our website, through channels such as our SpeakUp helpline (also available for our employees), or directly with local contacts depending on the issues and nature of their relationship. Consultation may be delegated to key functions globally or locally within the business. For example, our Investor Relations team addresses issues raised through the broad investor community and will also consult on specific issues with members of other teams, including the Society team.

Feedback on stakeholder engagement is provided to the Executive Committee and the Board as appropriate. In the case of the investor community, the Investor Relations team reports the views of institutional shareholders to the Board throughout the year, and, when relevant, those of private investors as well. Private shareholders engage directly with the Chairman or with the entire Board at the Annual General Meeting. Elsewhere, feedback from our SpeakUp helpline is reviewed independently by the Business Integrity team, who also summarise issues for the Executive Committee.

The Board and Executive Committee discuss wider external concerns regularly, and they consider external views when shaping our strategy in relation to economic and ESG topics. Monitoring progress against our 2020 sustainability targets was a particular focus this year, along with determining our broader environmental and societal ambition and targets for 2030. We consulted a broad range of external stakeholders as well

as employees as part of this work and reported the results to the Executive Committee and the Board.

The Board receives a report highlighting global aggregated results of Diageo's Your Voice survey once a year. The results are discussed by the Executive Committee, which develops action plans as necessary.

This year we did not conduct our Your Voice survey because of Covid-19. In its place we used a pulse survey tool to help us measure engagement, listen to employee feedback and learn from their experience of working during the pandemic.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

GOVERNANCE continued

Disclosure

Our response

102-22 Composition of the highest governance body and

its committees

The reporting organisation shall report the following information:

Composition of the highest governance body and its committees by:

At publication of the 2020 Annual Report, the Board was made up of eight members - the Chairman, five other non-executive directors, all of whom are independent, and two executive directors. Four members of the Board were women. Three members of the Board are from ethnic minority backgrounds, as defined by the Parker Review.

The Board has three standing committees: the Audit Committee, the Nomination Committee and the Remuneration Committee. Further information on the membership and work of these committees is included in the Governance section of the Annual Report, pages 68-108.

i. executive or non-executive; ii. independence;

iii. tenure on the governance body;

iv. number of each individual's other significant positions and commitments, and the nature of the commitments;

v. gender;

vi. membership of under- represented social groups;

vii. competencies relating to economic, environmental and social topics;

viii. stakeholder representation.

102-23	Chair of the highest governance	The Chairman of the Board is a non-executive director and, in accordance with Provision 9 of the UK
	body	Corporate Governance Code, was independent on appointment.

The reporting organisation shall report the following information:

a. Whether the chair of the highest governance body is also an executive officer in the organisation

b. If the chair is also an executive officer, describe his or her function within the organisation's management and the reasons for this arrangement.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

GOVERNANCE continued

Disclosure			Our response

102-24	Nominating and selecting the	The Nomination Committee - made up of all the independent non-executive directors and the Chairman
	highest governance body	of the company - is responsible for keeping under review the composition of the Board and succession
	The reporting organisation shall	planning for the Board and senior leadership positions. The Committee makes recommendations to the
	report the following information:	Board concerning Board appointments. Criteria for Board appointments include skills, knowledge, experience
	a. Nomination and selection processes	and diversity. The Board has recently adopted a diversity policy which sets out its commitment to inclusion
	and diversity and includes diversity targets. The policy is available on our website.
	for the highest governance body

	and its committees	Further detail is included in the Governance section of the Annual Report, page 83.
	b. Criteria used for nominating and	The terms of reference of all Board committees are available on our website.
	selecting highest governance
	body members, including whether
	and how:
	i.	stakeholders (including
		shareholders) are involved;
	ii.	diversity is considered;
	iii.	independence is considered;
	iv.	expertise and experience
		relating to economic,
		environmental and social
		topics are considered.

102-25	Conflicts of interest	The Board has agreed an approach and adopted guidelines for dealing with conflicts of interest, and
	The reporting organisation shall	responsibility for authorising conflicts of interest is included in the schedule of matters reserved for the
	report the following information:	Board. Our Code of Business Conduct also references how potential conflicts of interest are managed.
				Board of Directors sub-section of the Governance section of the
	a. Processes for the highest	Further information is included in the
	Annual Report, page 72.
	governance body to ensure

	conflicts of interest are avoided
	and managed
	b. Whether conflicts of interest are
	disclosed to stakeholders, including,
	as a minimum:
	i.	cross-board membership;
	ii.	cross-shareholding with
		suppliers and other stakeholders;
	iii.	existence of controlling
		shareholder;
	iv.	related party disclosures.

102-26	Role of highest governance	Our Performance Ambition and strategy are outlined in our Annual Report, the delivery of which includes
	body in setting purpose, values	key economic and ESG issues related to our reputation.
	and strategy	In his report, the Chief Executive updates the Executive Committee and Board regularly on progress

The reporting organisation shall	against this ambition. Our sustainability and responsibility strategy, and progress against it, are also
report the following information:
discussed and signed off at Board level at least twice a year, as part of the Board's ESG discussions.

a. Highest governance body's and	Policies are generally discussed and agreed at Executive Committee level, although policies relating
senior executives' roles in the
to material risks are signed off at Board level.
development, approval and

updating of the organisation's
purpose, value or mission
statements, strategies, policies
and goals related to economic,
environmental and social topics.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

GOVERNANCE continued

Disclosure

Our response

102-27 Collective knowledge of highest governance body

The reporting organisation shall report the following information:

Measures taken to develop and enhance the highest governance body's collective knowledge of economic, environmental and social topics.

Background reports are submitted throughout the year on various economic and ESG topics, some of which are discussed in detail in Board meetings. The Audit Committee reviews management's assessment of our principal risks, including risks associated with our economic and ESG performance.

The Board is also responsible for reviewing our Annual Report, which gives important contextual and performance information on economic and ESG topics.

The Audit Committee of the Board reviews and recommends approval of the Annual Report.

102-28	Evaluating the highest governance	During the year ended 30 June 2020, the Company Secretary facilitated an internal evaluation of the
	body's performance	Board's effectiveness. This included self-assessment by each director, plus their views of the effectiveness
	The reporting organisation shall	of the Audit Committee, the Nomination Committee and the Remuneration Committee. Further detail
	report the following information:	is included in the Governance section of the Annual Report, page 78.
	a. Processes for evaluating the	Following the Annual Strategy Conference, the Board considered and agreed what should be included
	highest governance body's	on their agenda for the following year.
	performance with respect to
	governance of economic,
	environmental and social topics
	b. Whether such evaluation
	is independent or not, and
	its frequency
	c. Whether such evaluation is
	a self-assessment
	d. Actions taken in response
	to evaluation of the highest
	governance body's performance
	with respect to governance of
	economic, environmental and social
	topics, including, as a minimum,
	changes in membership and
	organisational practice.

102-29	Identifying and managing	The Executive Committee is responsible for managing economic and ESG impacts with the accountabilities
	economic, environmental,	outlined in 102-20. However, as explained in 102-19 and 102-21, our sustainability and responsibility strategy
	and social impacts	is discussed at Board level at least twice a year, and incorporates stakeholder consultation where possible.
	The reporting organisation shall	In some cases, based on past reports, Board members identify new economic and ESG impacts that
	report the following information:	Diageo should manage.
	a. Highest governance body's role	Risks, including those identified in the Effective risk management section of the Annual Report, pages 38-43,
	in identifying and managing	are discussed at least twice a year in the Audit Committee.
	economic, environmental, and
	social topics and their impacts,
	risks and opportunities - including
	its role in the implementation of
	due diligence processes

b. Whether stakeholder consultation is used to support the highest governance body's identification and management of economic, environmental and social topics and their impacts, risks and opportunities.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

GOVERNANCE continued

Disclosure

Our response

102-30 Effectiveness of risk management processes

The reporting organisation shall report the following information:

Highest governance body's role in reviewing the effectiveness of the organisation's risk management processes for economic, environmental and social topics.

At each of its meetings, the Audit Committee reviews detailed reports from the heads of the Business Integrity and Global Audit and Risk teams, and sees the minutes of management's Audit and Risk Committee meetings.

These reports and minutes include economic and ESG risks. Relevant members of the Executive Committee and other senior leaders present context informing our sustainability and responsibility strategy, including risks, to the Board. Further detail can be found in the Governance section of the Annual Report, pages 68-108.

102-31	Review of economic, environmental	The Audit Committee is updated on risks at least twice a year. The Board is updated on our sustainability and
	and social topics	responsibility strategy and performance against targets at least twice a year, as well as through our Filings
	The reporting organisation shall	Assurance Committee. The Executive Committee discusses these issues more frequently.
	report the following information:
	a. Frequency of the highest
	governance body's review of
	economic, environmental and
	social topics and their impacts,
	risks and opportunities.

102-32	Highest governance body's role	Our Annual Report is approved by a duly appointed and authorised committee of the Board, and ultimately
	in sustainability reporting	signed off by our Chief Executive and Chief Financial Officer. The Audit Committee reviews our performance
	The reporting organisation shall	against our sustainability and responsibility targets.
	report the following information:
	a. The highest committee or position
	that formally reviews and approves
	the organisation's sustainability
	report and ensures that all material
	topics are covered.

102-33	Communicating critical concerns	The Board maintains a process for communicating critical concerns through the Audit Committee,
	The reporting organisation shall	which reviews the effectiveness of the company's systems of internal control and risk management,
	report the following information:	including oversight of all of the company's whistleblowing activities.
	a. Process for communicating critical	Further detail can be found in the Governance section of the Annual Report, page 82.
	concerns to the highest
	governance body.

102-34	Nature and total number of	See the principal risks table in the Annual Report, pages 39-40.
	critical concerns

The reporting organisation shall report the following information:

a. Total number and nature of critical concerns that were communicated to the highest governance body

b. Mechanism(s) used to address and resolve critical concerns.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

GOVERNANCE continued

Disclosure			Our response

102-35	Remuneration policies	The Directors' remuneration report in the Annual Report, pages 84-106, includes our remuneration policy.
	The reporting organisation shall	As explained in that report, remuneration is driven by both financial and individual business performance
	report the following information:	objectives, which in some cases include ESG as well as economic goals. From 2020, Executive Directors,
	a. Remuneration policies for the	other members of the Executive Committee and senior leaders throughout the business will be directly
	incentivised to achieve ESG goals through their long-term incentive plans. We may also include ESG-type
	highest governance body and
	measures in the individual business objective (IBO) element of Executive Committee members' shorter-term
	senior executives for the following
	annual incentive plans.
	types of remuneration:

	i.	fixed pay and variable pay,
		including performance-based
		pay, equity-based pay, bonuses
		and deferred or vested shares;
	ii. sign-on bonuses or recruitment
		incentive payments;
	iii.	termination payments;
	iv.	clawbacks;
	v.	retirement benefits, including
		the difference between benefit
		schemes and contribution rates
		for the highest governance
		body, senior executives and
		all other employees.
	b. How performance criteria in the
	remuneration policies relate to
	the highest governance body's
	and senior executives' objectives
	for economic, environmental and
	social topics.

102-36	Process for determining	Diageo's Remuneration Committee recommends senior and executive level remuneration. Key aspects are
	remuneration	included in the Directors' remuneration report in the Annual Report, pages 84-106. Details of independent
	The reporting organisation shall	third-party advisers, including remuneration consultants, are described on page 105 of the Annual Report.
	report the following information:
	a. Process for determining
	remuneration
	b. Whether remuneration consultants
	are involved in determining
	remuneration and whether they
	are independent of management
	c. Any other relationships that the
	remuneration consultants have
	with the organisation.

102-37	Stakeholders' involvement	As described in the Directors' remuneration report in the Annual Report, pages 84-106, the Remuneration
	in remuneration	Committee actively engages shareholders each year. In 2020, we consulted a number of shareholders
	The reporting organisation shall	about the proposed changes to the remuneration policy, as well as the approach to target setting under
	report the following information:	the incentive plans. The Remuneration Committee also reviewed insights from the Chairman's discussions
	a. How stakeholders' views are	with employees to help inform their decision making.

	sought and taken into account	Each year, at the company's Annual General Meeting, shareholders are asked to vote to approve the Directors'
	regarding remuneration	remuneration report. The last Directors' remuneration report was approved by 96.88% of votes.

b. If applicable, the results of votes on remuneration policies

and proposals.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

GOVERNANCE continued

Disclosure

Our response

102-38	Annual total compensation ratio
	The reporting organisation shall
	report the following information:

Ratio of the annual total compensation for the organisation's highest-paid individual in each country of significant operations to the median annual total compensation for all employees (excluding the highest-paid individual) in the same country.

We report the remuneration of our highest-paid executives in the Directors' remuneration report in our Annual Report, pages 84-106. We report the CEO pay ratio (total compensation for the CEO vs median total compensation for UK employees) on page 101 of the Annual Report, and the year-on-year change in Directors' salaries, bonuses and benefits relative to all employees globally on page 103. We also report the total amount paid in salaries and benefits to employees under GRI indicator 201-01. We do not report publicly on this data by country.

Omissions: data by country.

102-39 Percentage increase in annual

total compensation ratio The reporting organisation shall report the following information:

Ratio of the percentage increase in annual total compensation for the organisation's highest-paid individual in each country of significant operations to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) in the same country.

We report the remuneration of our highest paid executives in the Directors' remuneration report in our Annual Report, pages 84-106. We also report the total amount paid in salaries and benefits to employees under GRI indicator 201-01. We do not report publicly on this data by country. We report the year-on-year change in Directors' salaries, bonuses and benefits relative to all employees globally on page 103 of the Annual Report.

Omissions: data by country.

STAKEHOLDER ENGAGEMENT

Disclosure		Our response

102-40	List of stakeholder groups	We engage internal and external stakeholders, ranging from employees, investors and commercial
	The reporting organisation shall	partners to governments, NGOs and local communities. A full list is included on our website and in the
	report the following information:	Stakeholder engagement section, on pages 12-13 of our Annual Report.
	a. A list of stakeholder groups
	engaged by the organisation.

102-41	Collective bargaining agreements	We have a strong commitment to transparent dialogue. In 2020, 39.6% of our employees were covered by
	The reporting organisation shall	collective bargaining agreements.
	report the following information:

a. Percentage of total employees covered by collective bargaining agreements.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

STAKEHOLDER ENGAGEMENT continued

Disclosure		Our response

102-42	Identifying and selecting	We define our stakeholders as all those who affect, are affected or could be affected by Diageo's business.
	stakeholders	We both proactively engage groups that fit these criteria, and speak and work with groups that are
	The reporting organisation shall	interested in engaging us. In 2015 we refreshed our materiality study, reviewing 115 documents from 43 key
	report the following information:	stakeholders. This year, we carried out a further materiality analysis to determine what is most material to our
	a. The basis for identifying and	stakeholders, and to us, as we design our strategy for now until 2030 and beyond.

	selecting stakeholders with	Our analysis has confirmed the importance of several key themes: promoting positive drinking through
	whom to engage.	encouraging moderation and tackling misuse; championing water stewardship and decarbonisation
		as part of pioneering grain-to-glass sustainability; and championing inclusion and diversity within Diageo
		and the communities where we live, work, source and sell.
		The results of this study are shown in the materiality matrix found on page 4 of this Performance Addendum.

		We engage a range of external stakeholders, including policymakers, non-governmental organisations,
		civil society groups, peer companies, the media, customers and regulators to understand how they
		view our activities, and how they consider our performance and reputation economically, socially
		and environmentally.
		We also engage the communities where we source, make and sell our products directly, and take inputs
		received from all interested parties via other channels such as our website.

102-43	Approach to stakeholder	We engage stakeholders at global and local level to build trust and respect. At the heart of our strategy
	engagement	is the ability to develop our global programmes so that they are able to have a positive and meaningful
	The reporting organisation shall	impact for our local communities.
	report the following information:	We engage a range of external stakeholders, including policymakers, NGOs, civil society groups, peer

	a. The organisation's approach to	companies, the media, customers, regulators, our communities and consumers to understand how they view
	stakeholder engagement, including	our activities. Increasingly we also take note of stakeholders' opinions and comments via social media and
	frequency of engagement by type	reflect the findings of these in our planning and activity.
	and by stakeholder group, and an	We are developing our strategy to address our most material issues and support sustainable growth over

indication of whether any of the	the critical decade until 2030. While the launch of our strategy and the targets that will drive its delivery have
engagement was undertaken
been delayed by Covid-19 until later this fiscal year, we are clear on our direction of travel and our overall
specifically as part of the report
goals. We know we must be leaders in promoting positive drinking, global champions for water stewardship,
preparation process.
and vocal advocates for a low carbon world. We must champion inclusion and diversity, within our business

	and in society, and make sure our programmes and our business as a whole contribute to building inclusive,
	thriving communities that work for everyone, wherever we live, work, source and sell. And we will go further
	in pioneering sustainability, including through encouraging regenerative agriculture and by exploring
	circular economy approaches as we seek to minimise waste in our operations and value chain.

102-44 Key topics and concerns raised The reporting organisation shall report the following information:

Key topics and concerns that have been raised through stakeholder engagement, including:
1. how the organisation has responded to those key topics and concerns, including through its reporting;
2. the stakeholder groups that raised each of the key topics and concerns.

Our materiality matrix on page 4 was informed by a detailed stakeholder engagement exercise we undertook this year as we developed our strategy for 2030. We review materiality on an ongoing basis in light of stakeholder comments, including those arising from our Corporate Relations activity, financial analysis and external developments including the UN SDGs, the Paris Climate Agreement, Business Ambition for 1.5⁰C, UNGC/SBTI Uniting Business to Recover Better, and the UNGC Government Letter on SDGs in Recovery.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

REPORTING PRACTICE

Disclosure		Our response

102-45	Entities included in the	Our Financial statements can be found in our Annual Report from page 109. We describe the entities that are
	consolidated financial statements	included and not included in our sustainability and responsibility reporting in Reporting boundaries and
	The reporting organisation shall	methodologies on page 86-91 of this Performance Addendum.
	report the following information:
	a. A list of all entities included in the
	organisation's consolidated financial
	statements or equivalent documents
	b. Whether any entity included in
	the organisation's consolidated
	financial statements or equivalent
	documents is not covered by
	the report.

102-46	Defining report content and the	Through stakeholder and financial analysis conducted this year, we identified those ESG issues most material
	topic boundaries	to Diageo's business. This is illustrated in the materiality matrix on page 4 of this Performance Addendum.
	The reporting organisation shall
	At a minimum our reporting includes these issues, although we also report on certain additional issues
	report the following information:	included in the GRI Standards.
	a. An explanation of the process for	See pages 9-10 of this Performance Addendum for how we have implemented the reporting principles for
	defining the report content and		content.
	defining report
	the topic boundaries
	b. An explanation of how the
	organisation has implemented
	the reporting principles for
	defining report content.

102-47	List of material topics	Our 2020 and 2025 targets and strategy were informed by a stakeholder and financial analysis we conducted
	The reporting organisation shall	in 2015, which helped us understand our most material issues.
	report the following information:	This year, we carried out a further materiality analysis to determine what is most material to our stakeholders,

	a. A list of the material topics	and to us, as we design our strategy for now until 2030 and beyond.
	identified in the process for	Our analysis has confirmed the importance of several key themes: promoting positive drinking through
	defining report content.
	encouraging moderation and tackling misuse; championing water stewardship and decarbonisation as part

		of pioneering grain-to-glass sustainability; and championing inclusion and diversity within our business and
		in the communities where we live, work, source and sell.
		The results of this study are shown in the materiality matrix on page 4 of this Performance Addendum.

102-48	Restatements of information	Restatement of baseline environmental data
	The reporting organisation shall	Diageo restates environmental data for the baseline year and intervening years to reflect changes in the
	report the following information:	company that would otherwise compromise the accuracy, consistency and relevance of the reported
	a. The effect of any restatements	information. Restatements are made in accordance with the WRI/WBCSD Reporting Protocol, and Diageo's
	Environmental Reporting Methodology.
	of information given in previous

	reports, and the reasons for	The baseline year environmental impact data, and data for intervening years, are adjusted to reflect
	such restatements.	acquisitions, divestments, updates to databases for CO2e emission factors, any errors in calculations, and
		any significant changes in reporting policy that result in a material change to the baseline of more than 1%.
		We also restate data where we can show that structural changes regarding outsourcing and insourcing
		have an impact of more than 1%.

These changes have been absorbed, and do not affect our environmental sustainability targets.

Restatement of code breach data

Prior year numbers of substantiated breaches and code-related leavers are updated to include the outcomes of those reports made in one financial year for which the investigation and any associated disciplinary actions are not closed until the following financial year, after the Annual Report has been published. This enables us to make a full and accurate year-on-year comparison.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

REPORTING PRACTICE continued

Disclosure		Our response

102-49	Changes in reporting	See 'significant changes in our operations' in the Reporting boundaries and methodologies section on
	The reporting organisation shall	page 86.
	report the following information:
	a. Significant changes from
	previous reporting periods in
	the list of material topics and
	topic boundaries.

102-50	Reporting period	Year ending 30 June 2020.
	The reporting organisation shall
	report the following information:
	a. Reporting period for the
	information provided.

102-51	Date of most recent report	August 2019.
	The reporting organisation shall
	report the following information:
	a. If applicable, the date of the most
	recent previous report.

102-52	Reporting cycle	Annual.
	The reporting organisation shall
	report the following information:
	a. Reporting cycle.

102-53	Contact point for questions	sustainability@diageo.com
	regarding the report
	The reporting organisation shall
	report the following information:
	a. The contact point for questions
	regarding the report or its contents.

102-54	Claims of reporting in accordance	We have prepared this report in accordance with the GRI Standards: Comprehensive option. Please refer
	with the GRI Standards	to the table on page 8.
	The reporting organisation shall
	report the following information:

a. The claim made by the organisation, if it has prepared a report in accordance with the GRI Standards, either:

i. 'This report has been prepared in accordance with the GRI Standards: Core option';

ii. 'This report has been prepared in accordance with the GRI Standards: Comprehensive option'.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 102: GENERAL DISCLOSURES continued

REPORTING PRACTICE continued

Disclosure			Our response

102-55	GRI content index	This index serves as the GRI content index and is summarised by the content index on page 8 of this report.
	The reporting organisation shall
	report the following information:
	a. The GRI content index, which
	specifies each of the GRI Standards
	used and lists all disclosures
	included in the report
	b. For each disclosure, the content
	index shall include:
	i.	the number of the disclosure
		(for disclosures covered by
		the GRI Standards);
	ii.	the page number(s) or URL(s)
		where the information can be
		found, either within the report
		or in other published materials;
	iii.	if applicable, and where
		permitted, the reason(s) for
		omission when a required
		disclosure cannot be made.

102-56	External assurance	Assurance policy and practice
	The reporting organisation shall	Diageo's policy is to align our reporting of non-financial information with the best and most up-to-date
	report the following information:	standards and protocols available at the beginning of our financial year. We believe in reporting against
	a. A description of the organisation's	reliable data and strive to improve the quality of our non-financial disclosures.
	PwC
	policy and current practice with
	regard to seeking external	Towards these aims, PwC were engaged to provide independent limited assurance over selected information
	assurance for the report	in the Annual Report and Accounts and this Sustainability & Responsibility Performance Addendum for the
	b. If the report has been	year ended 30 June 2020. Information that is within PwC's limited scope is marked with the symbol .

	externally assured:	PwC is an independent auditor.
	i.	a reference to the external	Diageo's Chief Executive and Chief Financial Officer approve the appointment and set the scope of PwC's
		assurance report, statements,	limited assurance engagement.
		or opinions. If not included	Corporate Citizenship
		in the assurance report
		Corporate Citizenship were engaged to assess our corporate community investment figures.
		accompanying the sustainability

		Corporate Citizenship is the manager of the London Benchmarking Group (a global standard for measuring,
		report, a description of what has

		and what has not been assured	benchmarking, and reporting on corporate community investment), of which Diageo is a member.
		and on what basis, including	The Global Director of Society appoints, and sets the scope of, Corporate Citizenship's engagement.
		the assurance standards used,

		the level of assurance obtained,
		and any limitations of the
		assurance process;
	ii.	the relationship between
		the organisation and the
		assurance provider;

iii. whether and how the highest governance body or senior executives are involved in seeking external assurance for the organisation's sustainability report.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Universal standards

GRI 103: MANAGEMENT APPROACH

To make this index easier to understand, we have described each management approach (103-02) and its evaluation (103-03) alongside the relevant indicators. So, for example, you will find the management approach and its evaluation for GRI 201, economic performance, on page 28, with the economic performance indicators following it.

MATERIAL TOPICS AND THEIR BOUNDARIES

Disclosure

Our response

103-01	Explanation of the material topic
	and its boundary

The following GRI aspects are particularly material to our 163 supply sites in 26 countries: procurement practices; materials; energy; water; biodiversity; emissions; effluent and waste; supplier environmental assessment; environmental grievance mechanisms; occupational health and safety; and supplier assessment for labour practices. The remaining additional aspects are material to all 180 countries where we make and sell products around the world, with the exception of indigenous rights which did not surface as material through our stakeholder study.

We took a value chain approach to our materiality matrix. Therefore, the issues that we identified as material are also material to our suppliers and other business partners.

MANAGEMENT APPROACHES

103-02	The management approach and its components	103-03	Evaluation of the management approach
	See relevant topics.		See relevant topics.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 200: ECONOMIC

ECONOMIC PERFORMANCE

103-02

Our management approach to economic performance

103-03

Evaluation of the management approach

Our relationships with suppliers, investors, lenders, governments, employees and local community stakeholders have direct economic and social impacts which we measure, manage and evaluate. Our Annual Report explains how we manage financial performance and includes financial KPIs. Each market and function is responsible for monitoring and reporting economic performance against annual plans and targets. That allows us to report on overall performance against strategy.

The Pioneer grain-to-glass sustainability section of the Annual Report, pages 28-29, describes our wider economic contribution to the communities where we operate. Investment in activities is based on developing a business case to deliver both economic indicators and wider business strategy including performance on environmental, social and governance activities.

We base our investments on business cases which are in line with our wider strategy and deliver both economic performance and meet our environmental, social and governance objectives.

Various business leaders authorise these investments, depending on scale. The Executive Committee confirms the most significant investments.

The Board, the Executive Committee and management teams at market and function level review economic performance at each of their meetings, tracking key performance indicators and annual operating plans. Details of financial KPIs are in the Annual Report.

Where necessary, we develop or adapt our activities to improve performance against our targets or in response to external factors. This year, in response to the Covid-19 pandemic, for example, we reduced discretionary spend and we stopped spending money on advertising and promotions that would not be effective in the current environment.

Disclosure		Our response

201-01	Direct economic value generated	Our revenues this year totalled £17,3931 million. Economic value distributed contains operating costs
	and distributed	(£6.5 billion), taxes (£7.3 billion), employee salaries and benefits (£1.4 billion), payments to providers of capital
		(£2.3 billion) and community investment (£18.9 million). Tax paid contains all cash tax paid by the company
		excluding £1 billion of VAT.
		Omissions: we do not currently break down direct economic value by local market.
		1. Data is presented on a cash basis.

201-02	Financial implications and other
	risks and opportunities due to
	climate change

A variety of trends associated with climate change affect our business, in particular the risk of water scarcity. This is explained in more detail in the Responding to climate-related risks section of our Annual Report, pages 42-43.

As of this year, we have highlighted climate-related risk within our principal risk, sustainability and responsibility. Please see page 39 of our Annual Report for more information. We are taking steps to better understand the direct and indirect impacts of climate change and water stress on our business, so that we can develop plans to ensure our supply chains remain resilient. We recognise the importance of considering climate-related risks and opportunities in business decisions and strategic planning, and acknowledge that adopting the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) is an important step in addressing these risks and supporting the transition to a low-carbon economy.

In 2018, with the support of PwC, we undertook a detailed review of the TCFD reporting recommendations. Our reporting already addresses some aspects of the guidelines, while our reporting to CDP covers much of the remainder. We will continue to develop our climate change reporting to reflect the TCFD's guidance.

In 2021, we will complete a comprehensive assessment of physical and transition climate risks in countries representing a significant share of our production, and use climate scenarios to help us develop detailed mitigation and adaptation plans. This work will be overseen by our Climate Risk Steering Group. We will also update our water risk assessment of our own operations.

Total environmental protection expenditure was approximately £20 million, which was spent on water conservation projects in Kenya and Nigeria and continuous improvement and energy efficiency initiatives elsewhere.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 200: ECONOMIC continued

ECONOMIC PERFORMANCE continued

Disclosure		Our response

201-03	Defined benefit plan obligations	Diageo operates a number of pension plans throughout the world, devised in accordance with local
	and other retirement plans	conditions and practices. Some are defined benefit plans and are funded by payments to separately
		administered trusts or insurance companies. The group also operates a number of plans that are generally
		unfunded, primarily in the United States, which provide employees' post-employment medical costs.
		Where required, we have deficit funding arrangements in place for our defined benefit plans.
		For full details, see Note 13 to the Financial statements in the Annual Report, page 145.
		Omissions: we do not disclose the number of employees included in the schemes or the percentage
		of salary contributed by employer and employee.

201-04	Financial assistance received	Diageo is a publicly-listed company and is not part-owned by any government.

from government	Tax credits are included in Note 7 and government grants in Note 10 to the Financial statements in the

	Annual Report, on page 134 and page 141 respectively.
	Omissions: this information is not broken down by country.

MARKET PRESENCE

103-02

Our management approach to market presence

103-03

Evaluation of the management approach

Diageo operates as a market-based business and has a presence in over 180 countries. Each of our markets is accountable for its own performance and for driving growth. For more details see the Our global reach section of the Annual Report, page 3.

Our strategic planning considers decisions to enter either geographic or product markets as outlined in our Annual Report.

We assess performance against our strategy using relevant key performance indicators.

Our market presence, considering issues such as scale of activity in markets, presence in current or potential product sectors, and the relative risks and opportunities is reviewed as part of the development of our overall strategy, described in our Annual Report. It is routinely reported to the Executive Committee and the Board.

Disclosure

Our response

202-01	Ratios of standard entry level wage
	by gender compared to local
	minimum wage

Diageo complies with all local legislation in relation to minimum wages in all countries in which it operates. However, we do not currently collect data in relation to this indicator at a global level.

202-02	Proportion of senior management	The global nature of our business encourages diversity in leadership and we believe in supporting local
	hired from the local community	communities. We estimate that 90% of our senior leaders come from the market in which they work.
		Our leadership and talent programmes are structured to promote a balanced intake by gender and
		across markets.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 200: ECONOMIC continued

INDIRECT ECONOMIC IMPACTS

103-02

Our management approach to indirect economic impacts

103-03

Evaluation of the management approach

As a global business operating in numerous locations, Diageo has many indirect economic impacts on the communities in which we operate, as described below. We have taken the strategic decision to focus on the areas that are most material to our business and the communities where we operate:

Empowering women and other under-represented groups
Promoting entrepreneurship, employability and skills
Building sustainable supply chains
Protecting water and the environment.

We set ourselves ambitious targets to be reached by 2020 and report our approach in the Pioneer grain-to-glass sustainability section of the Annual Report, pages 28-29.

We are currently developing our strategy to address all our most material issues and support sustainable growth over the critical decade until 2030. While the launch of our strategy and the targets that will drive its delivery have been delayed by Covid-19 until later this fiscal year, we are clear on our direction of travel and our overall goals. These include championing inclusion and diversity, within our business and in society, and making sure our programmes and our business as a whole contribute to building inclusive, thriving communities that work for everyone, wherever we live, work, source and sell.

We also monitor the number of people benefiting from our programmes, as follows: total programme beneficiaries; women reached; women empowered; skills empowerment beneficiaries; water, sanitation and hygiene beneficiaries; and sustainable agriculture initiative beneficiaries.

Indirect economic impacts are reviewed as part of strategy development and risk management and are reported to the Executive Committee and the Board.

Disclosure		Our response

203-01	Infrastructure investments and	Our Water Blueprint is our strategic approach to water stewardship and details the infrastructure
	services supported	and	services that we	affect in this area. For example, community water, sanitation and hygiene (WASH)
		programmes provide vital resources to those in need, and often contribute to the development of local
		infrastructure. We prioritise communities in close proximity to our operations and those where we source
		our local raw materials. This year we funded a number of WASH infrastructure projects across Africa,
		including in Kenya, Uganda, Tanzania, Ghana, Ethiopia, Seychelles, South Africa, Cameroon and Nigeria.
		Please see our website for examples of our WASH projects in India and Cameroon.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 200: ECONOMIC continued

INDIRECT ECONOMIC IMPACTS continued

Disclosure		Our response

203-02	Significant indirect	Diageo has a diverse array of indirect economic impacts associated with our business relationships and
	economic impacts	community investment projects. We invested £18.9 million or 1.0% of operating profit in programmes
		to support the communities where we live, work, source and sell. This year, we trained more than 6,600
		people through our range of skills empowerment programmes and we reached more than 250,000 people
		in India and Africa with access to water, sanitation and hygiene. Through our community impact programmes,
		we have empowered around 435,000 women since 2012. Details of how we contribute to local economic
		development can be found on our website. Our contribution is aligned with various external stakeholder

		priorities. For example, our programmes have helped improve livelihoods for smallholder farmers in our
		Africa supply network, by increasing farm yields through training and improved agricultural inputs. Our
		impact reports from Ethiopia, Uganda and Cameroon identified increases in farm yield and associated
		improvements in the livelihoods of farming families.

Community investment by region

Region	%

North America	39

Europe, Turkey and Global Functions	21
Asia Pacific	18

Africa	13

Latin America and Caribbean	9

Community investment by focus area

Focus area	%

Community aspects of responsible drinking programmes1	36

Brand-led and local community spend2	36
Skills empowerment programmes	18

Water sanitation and hygiene programmes	9

Women's empowerment programmes	1

This is a sub-section of the total responsible drinking budget.
Category includes cause-related brand campaigns, local market giving and disaster relief.

PROCUREMENT PRACTICES

103-02

Our management approach to procurement practices

103-03

Evaluation of the management approach

Suppliers are selected based on their ability to effectively deliver our needs in terms of service, material, timing and cost.

All suppliers are required to meet the minimum requirements set out in our Partnering with Suppliers Standard.

Suppliers are also evaluated against the risk of bribery and corruption through our Know Your Business Partner (KYBP) assessment, which considers operating risks, market/sector risks and feedback from our internal reviews and assessments.

Ongoing performance against contract and service levels is reviewed by Procurement teams, while adherence to specific requirements on issues such as labour and human rights is addressed as described from 406-01 to 412-03.

Procurement practices are reviewed by Internal Audit and by the Compliance team. The audit leads to a report for functional management and relevant Executive Committee members and includes remedial actions and recommendations.

Disclosure		Our response

204-01	Proportion of spending on	We estimate that more than 90% of our raw material volume is dedicated to 'in-country' suppliers for our
	local suppliers	sites in the following locations: India, Ireland, United Kingdom, Mexico and Turkey. For our sites in Africa, 79%
		of agricultural raw material volume used in our operations came from suppliers based in the continent
		during 2020.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 200: ECONOMIC continued

ANTI-CORRUPTION

103-02

Our management approach to anti-corruption

103-03

Evaluation of the management approach

We have an internal Anti-Corruption Global Policy, and its core principles are included in our Code of Business Conduct (our Code). This is applied to all operations and personnel, with routine training undertaken throughout the business. Adherence to the policy is driven through global and local management within routine business operations and reviewed during assessments carried out by independent internal assessors.

Our Business Integrity team monitors all functions' compliance with our Code of Business Conduct, which includes our internal anti-corruption principles. Our Internal Audit team regularly audits our markets, which includes auditing their compliance procedures. Any essential improvements required by the team are given a time limit for completion, and they will also make other recommendations for improvement where necessary. These are reviewed by the relevant management teams and Executive Committee members.

The Business Integrity team checks that those who need to have completed their Code training, and reports results to the Executive Committee and the Board.

Disclosure		Our response

205-01	Operations assessed for risks	Each of our markets is required to carry out a legal compliance risk assessment annually, including
	related to corruption	consideration of human rights, bribery and corruption, and to develop mitigation plans for their most
		significant risks. Every business unit must also carry out risk assessments on corruption.
		Omissions: significant risks related to corruption identified through the risk assessment.

205-02	Communication and training	Everyone who joins the business has to complete training on our Code within 30 days, and all employees
	about anti-corruption policies	receive refresher Code training each year. The training covers anti-corruption policies and procedures.
	and procedures	All employees at manager level and above complete an Annual Certification of Compliance (ACC).
		By completing the ACC, employees are confirming that they have read and understood our Code and
		global policies, including our policy on anti-corruption. In 2019, following an external review, we extended
		the ACC to include certain non-management roles.
		Our compliance programme uses a risk-based approach to identify where we should focus our anti-
		corruption communication and training. This approach considers the external context, geographic and
		functional risks, and the output of our own reviews including input from SpeakUp data. An example of
		our anti-corruption procedures is our third-party business partner due	diligence	programme, Know Your
		Business Partner (KYBP).

205-03	Confirmed incidents of corruption	Public legal cases are reported in Note 18 to the Financial statements of the Annual Report pages 165-166.
	and actions taken	Omissions: any non-public incidents are not reported.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 200: ECONOMIC continued

ANTI-COMPETITIVE BEHAVIOUR

103-02

Our management approach to anti-competitive behaviour

103-03

Evaluation of the management approach

We have an internal competition and anti-trust policy, the core principles of which are included in our Code of Business Conduct. We train personnel across the business in the requirements of this policy within the training on our Code. We monitor adherence through review of emerging issues, outcomes from SpeakUp, and routine assessment of all business functions through our internal independent reviews.

Our Business Integrity team monitors all functions' compliance with our Code of Business Conduct, which includes our internal competition and anti-trust principles. Our Internal Audit team regularly audits our markets, which includes auditing their compliance procedures. Any essential improvements required by the team are given a time limit for completion, and they will also make other recommendations for improvement where necessary. These are reviewed by the relevant management teams and Executive Committee members.

The Business Integrity team also checks that those who need to have completed their Code training, and reports results to the Executive Committee and the Board.

Disclosure

Our response

206-01 Legal actions for anti-competitive behaviour, anti-trust and monopoly practices

Material legal judgements are included in Note 18 to the Financial statements in the Annual Report, pages 165-166.

Omissions: we do not disclose details of ongoing regulatory investigations or sanctions because this is commercially sensitive information.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL

GRIEVANCE MECHANISMS

103-02	Our management approach to environmental	103-03	Evaluation of the management approach
	grievance mechanisms
	Our SpeakUp helpline and website act as a conduit for all		Our Environmental teams in each market review grievances to
				consider whether mitigation has been effective and whether
	grievances,	including those to do with environmental issues.
	They can be accessed by employees, those in our value chain		grievances have been addressed.

and any interested stakeholders. Grievances are investigated independently and, where necessary, anonymised to protect those raising the issue. Employees can also report issues to line managers, the Legal team, the Human Resources team or Business Integrity managers.

We manage environmental grievances, which typically relate to dust and noise, on a case-by-case basis at local site level.

If needed, local sites will escalate the complaints to the global team who will take appropriate action.

Environmental grievances are reviewed in market by the relevant functions and escalated as required to the Executive Environmental Working Group, which meets quarterly to review environmental performance. Mitigation activities are developed as appropriate.

Number of grievances about environmental impacts filed, addressed and resolved through formal grievance mechanisms During the reporting year, six grievances about environmental impacts were filed. All were addressed, with two being resolved through formal grievance mechanisms. Zero grievances about environmental impacts were filed last year which were resolved this year.

MATERIALS

103-02	Our management approach to materials	103-03	Evaluation of the management approach
	Our materials can largely be categorised as packaging and	Packaging
	agricultural raw materials. Our general approach is for our	We regularly evaluate the potential for new or alternative materials
	Packaging and Sustainability teams to evaluate and review our	and emerging environmental risks from packaging materials.
	processes and materials to ensure they are efficient and cost-	In 2018 we strengthened our approach on plastics, building on
	effective. This may mean developing or adopting new materials	the publication of our supplementary guidelines on plastics in
	that are more efficient, have a lower environmental impact	April 2017. This includes targets for plastics use (see the Annual
	or are otherwise superior. We select materials based on		Report, page 35), the banning of plastic straws and stirrers from
	performance criteria to support finished product specification	marketing and promotional activity, continued research and
	and cost. We assess new materials in extensive trials before they	development into plastic packaging, and collaboration on the
	are used for full-scale production. Detailed specifications are	development of recycling sectors in key markets, particularly
	developed that identify key performance criteria for materials	Africa. In 2020 we continued to support the Africa Plastics
	being used in production.		Recycling Alliance, which focuses on improving plastics recycling
	Our Packaging and Sustainability teams keep our materials	in sub-Saharan Africa. It was launched in March 2019, with Diageo
	and Unilever as co-founders, and now includes Nestlé,
	under review.
			The Coca-Cola Company, Mars, PepsiCo, Dow and Promisador.
	Continued on page 35
		We reuse returned glass bottles in parts of our business, but do not

				currently include them in our reported recycled content data. Last
				year, we reviewed our reporting boundaries for recycled content to
				consider including returned glass. Following our review we report
				returned glass alongside, but separately from, our recycled content
				data on page 35 of our Annual Report.
				Continued on page 35

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

MATERIALS continued

103-02	Our management approach to materials continued	103-03	Evaluation of the management
continued					continued	approach continued
	Packaging		Agricultural raw materials
	As part of our 2020 targets, we have four targets for packaging:		This year we added the requirement
	•	To reduce total packaging weight by 15%		to meet our Sustainable Agriculture
		Guidelines (SAG) to some key

	• To increase recycled content by weight to 45%		contracts as they came up for renewal.
	•	To make all packaging recyclable		We have also created and begun
	•	To sustainably source all of our paper and board packaging to ensure zero net deforestation.		rolling out pilot SAG toolkits for buyers
	In 2018, we announced new targets for 2025 on our use of plastics:		and suppliers - with full deployment
	• Ensure 100% of the plastic we use is designed to be widely recyclable (or reusable/		planned for next year. To support
		suppliers in Latin America and the
		compostable), using plastics that allow for increased consumer recycling rates		Caribbean, we have translated our
	• Achieve 40% average recycled content in our plastic bottles - and 100% by 2030
		SAG into Spanish and Portuguese.
	•	Continue to invest in circular economy opportunities and other sustainable		As our requirement for agricultural
		packaging breakthroughs
			materials in Africa grows, our work
	• Accelerate our support for recycling by increasing collaboration, particularly where we
		with smallholder farmers becomes
		have influence, and engaging with governments, peers and consumers to facilitate		more important.
		improved recycling.
			This year we continued to focus on
	As part of the innovation process of developing new products, we routinely review packaging.
		this area, particularly on sorghum,
	We consider its overall environmental impact as well as how we are performing against our
		a climate change resilient crop,
	packaging targets.
		which is the mainstay of our new

	We are currently developing our strategy for the critical decade until 2030. While the launch of		brewery in Kenya.
	our strategy and the targets that will drive its delivery have been delayed by Covid-19 until later		Our programmes aim to develop
	this fiscal year, we are clear on our direction of travel and our overall goals. These include going
		smallholder farming and support
	further in pioneering sustainability, including through exploring circular economy approaches
		mid-term growth in farm yields.
	as we seek to minimise waste in our operations and value chain.
		We are working more closely with

	For more details see the Pioneer grain-to-glass sustainability section of the Annual Report,		farmers, supporting them with
	pages 28-29,our Environment Policy, and our Sustainable Packaging Commitments.		training, planting materials and
						fertilisers, mechanisation and access
	Agricultural raw materials
		to credit, and we are seeing more
	As part of our 2020 targets, we have two targets for agricultural raw materials:
		consistent results as a consequence.
	•	Source 80% of our agricultural raw materials locally in Africa
		As weather becomes less predictable,

	• Establish partnerships with farmers to develop sustainable agricultural supplies of key		we are working with partners to
		raw materials.		implement tools that enable farmers

	Our vision is to make our agricultural supply chains economically, socially and environmentally		to become more resilient, such as crop
	sustainable. That means:		insurance, conservation agriculture
	• Securing a supply for our business, while contributing to the economic growth of the		and sustainable irrigation. Please see
		the Climate risk section of the Annual
		communities in which we operate

•	Respecting human rights, building capacity and creating shared value with	Report, pages 42-43.

	farming communities

Using resources efficiently, minimising environmental impact, and safeguarding future crop capacity and ecosystems.

Diageo is a member of the Sustainable Agriculture Initiative (SAI) Platform. In 2018 we adopted SAI's Farm Sustainability Assessment (FSA) tool as our reference to assess sustainability within our agricultural supply chain and drive improvements. Our aim is to work with our direct suppliers to deliver the requirements of our Sustainable Agriculture Guidelines and drive assurance to a minimum level of FSA Bronze (or equivalent, using a benchmarked standard) at farm level.

We adopted the SAI approach as our standard for farmers in established supply chains, while for smallholders (typically farms of 1-10 hectares) and intermediary suppliers in emerging supply chains, we are developing tailored approaches based on their most material issues.

We expect our suppliers to work continuously towards more sustainable agricultural practices by treating farmers and workers fairly, reducing negative environmental impacts, protecting natural capital and supporting wider economic benefits for farming.

For more details, see our Sustainable Agriculture Guidelines.

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

MATERIALS continued

103-02	Our management approach to materials continued
continued
	Local sourcing in Africa
	We source agricultural raw materials in Africa from local farming suppliers, including partnering
	with 78,600 smallholder farmers in Kenya, Tanzania, Ethiopia, Uganda, Cameroon, Ghana,
	Nigeria and South Africa. Our programmes support farming communities by sharing best
	practice, creating access to seeds and fertilisers, improving access to affordable finance and
	crop insurance, and enabling some mechanisation for farming. This has led to increased yields
	per hectare for the farmers involved, improving their household income while creating a more
	resilient local raw material supply network. For example, in Uganda, in 2020 we began working
	in partnership with Solidaridad to support barley smallholder farmers through training and
	access to fertilisers and seeds. Our sustainable agriculture strategy is explained in the Pioneer
	grain-to-glass sustainability section of the Annual Report, pages 28-29.

Disclosure		Our response

301-01	Materials used by weight or volume This year, we used approximately 1.43 million tonnes of agricultural raw materials such as barley, wheat and
		maize, and approximately 1.37 million tonnes of packaging.
		Global raw materials1 by volume
		(Total - 1.43 million tonnes)
		Raw Material	Volume	%

		Barley2	602,411	42.1
		Wheat	107,951	7.5
		Maize	155,101	10.8
		Molasses	129,249	9.0
		Sorghum	92,110	6.4
		Sugar	78,971	5.5
		Agave	96,266	6.7
		Grapes	105,336	7.4
		Rice	21,684	1.5
		Raisins	6,392	0.4
		Dairy	16,800	1.2
		Rye	14,000	1.0
		Other (including aniseed, cassava and hops)	3,796	0.3

Figures represent raw materials we buy directly, and exclude raw materials used to make the neutral spirit we purchase.
Includes malted barley.

Global packaging materials1 by volume (Total - 1.37 million tonnes)

		Packaging material		Volume	%

		Glass			1,167,390	85.1
		Corrugate			74,307	5.4
		Cartons			46,038	3.4
		Closures and crowns		25,053	1.8
		PET			17,683	1.3
		Cans			20,523	1.5
		Other (beverage cartons, labels, sleeves, bags and sachets)	20,644	1.5
		1. Excludes promotional materials.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

MATERIALS continued

Disclosure		Our response

301-02	Recycled input materials used	This year, 45.8% of the materials used in our packaging were recycled input materials, exceeding our 2020
		target. When returnable glass is included, our overall recycled content is 51.4%.

301-03	Reclaimed products and their
	packaging material

Recycling/recovery rates1 for primary packaging categories2

Market	Recovery rate

Germany	81%

Republic of Ireland	75%

Italy	74%

Great Britain	61%

Spain	57%

Brazil	47%

Australia	44%
North America	33%

South Africa	25%

Venezuela	25%

Greece	24%

Kenya	No published data
Nigeria	No published data

Estimated consumer recycling of primary packaging.
Primary packaging categories include glass, aluminium, paper and board.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

ENERGY

103-02	Our management approach to energy	103-03	Evaluation of the management approach
	Evaluation of the management approach		We set ourselves a series of targets to achieve by
	We committed to halving our direct carbon emissions (Scopes 1 and 2) in		2020, measured by KPIs which are disclosed in our
	absolute terms by 2020, against a 2007 baseline, and achieving a 30% reduction		Annual Report. The targets and KPIs are as follows:
	in carbon emissions in our overall supply chain.		Target: Reduce absolute greenhouse gas emissions

	Our approach is based on four main activities:			from direct operations by 50%
	1. Improving energy efficiency in our operations		KPI:	% reduction in absolute GHG (kt CO2e)
	Improving energy efficiency in our operations reduces carbon emissions,		Target: Achieve a 30% reduction in absolute
	cuts energy bills and reduces our exposure to energy risks. Measures include
			greenhouse gas emissions along the total
	improving insulation on cookers and stills, installing variable speed drives and
			supply chain
	low-energy lighting systems, and improving air condensers and boilers.
		KPI:	% reduction in absolute GHG (kt CO2e)
	2. Generating renewable energy at our sites
		Target: Ensure all our new refrigeration equipment
	Alcohol production creates a number of by-products which can be used as
	sources of renewable energy. We are investing in the bioenergy potential of			in trade is HFC-free, with a reduction in
	our distilleries and breweries.			associated greenhouse gas emissions
	3. Sourcing renewable or low-carbon energy			from 2015
		KPI:	% of new equipment sourced HFC-free from
	Renewable and low-carbon energy from bioenergy, nuclear, wind, solar and
	hydro-electric sources can contribute significantly to reducing emissions. We are			1 July 2015
	committed to procuring 100% of our electricity from renewable sources by 2030.		We are developing our strategy to address our most

	4. Partnering to reduce carbon in our supply chain		material issues and support sustainable growth over
	Supporting and encouraging our key suppliers to measure, manage and report		the critical decade until 2030. While the launch of
	their carbon emissions is essential to reducing our overall greenhouse gas		our strategy and the targets that will drive its delivery
	emissions. In addition, we have committed to ensuring that all our new		have been delayed by Covid-19 until later this fiscal
	refrigeration equipment in trade is free from hydrofluorocarbons (HFCs).		year, we are clear on our direction of travel and our
			overall goals. We know we must continue to be

For more details see the Pioneer grain-to-glass sustainability and Climate	global champions for water stewardship, and vocal
risk sections of our Annual Report, pages 28-29 and 42-43 respectively, and our
advocates for a low carbon world.
Environment Policy.
We are listed on the FTSE4Good, CDP and Dow Jones

		Sustainability World Index to benchmark our
		sustainability performance.
		The Environmental Executive Working Group,
		through the Environmental Leadership Team,
		ensures compliance is measured and monitored.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

ENERGY continued

Disclosure		Our response

302-01	Energy consumption within	We report renewable and non-renewable direct energy consumption for the last three years in addition to
	the organisation	our baseline year of 2007.
		Renewable and non-renewable direct energy consumption (TJ)1, 2

13,431
	8,704	7,995	7,807
	3,531	3,810	2,991
427
2007	2018	2019	2020

Renewable energy source Non-renewable energy source

Direct energy consumption refers to energy sources that are owned or controlled by the company and generate Scope 1 emissions as defined by the WRI/WBCSD Greenhouse Gas Reporting Protocol.
2007 baseline data, and data for each of the intervening years in the period ended 30 June 2019, have been restated in accordance with the WRI/WBCSD Greenhouse Gas Reporting Protocol and Diageo's environmental reporting methodologies.
Within PwC's independent limited assurance scope, see pages 92-93 of this document.

		Indirect (grid electricity) accounted for 13.1% of total energy consumption.
		Omissions: the breakdown of energy consumption by heating, cooling and steam is not included here
		as currently this level of detail is unavailable due to the inherent complexity of heat recovery systems.

302-02	Energy consumption outside of the	Purchased goods and services, capital goods, transport and distribution of our brands by third-party
	organisation	logistics providers, and the use of chilling and refrigeration equipment by our retail customers to store and
		display products, are among the most significant areas of energy consumption outside Diageo's direct use.
		Road and rail transport uses approximately 4.7 million gigajoules per year, and chilling and refrigeration
		equipment uses approximately 1.3 million gigajoules per year.

302-03	Energy intensity	Here we report direct and indirect energy efficiency for the last three years in addition to our baseline year
		of 2007.

Direct and indirect energy efficiency (MJ/litre packaged)1, 2, 3

3.7
	3.0	2.9	3.0
0.5	0.4	0.4	0.5
2007	2018	2019	2020

Direct

Indirect

Direct and indirect energy sources refer to those that generate Scope 1 (direct) and Scope 2 (indirect) emissions as defined by the WRI/WBCSD Greenhouse Gas Reporting Protocol.
2007 baseline data, and data for each of the intervening years in the period ended 30 June 2019, have been restated in accordance with the WRI/WBCSD Greenhouse Gas Reporting Protocol and Diageo's environmental reporting methodologies.
Energy included was used for fuel, electricity, heating, cooling and steam.
Within PwC's independent limited assurance scope, see pages 92-93 of this document.

302-04	Reduction of energy consumption	This year energy consumption from fuel, electricity, heating, cooling and steam reduced by 8.0% compared
		with 2019 as a result of energy efficiency initiatives and reduced distilled and and packaged volume; relating
		to Covid-19 during the last quarter of the year.
		Reporting boundaries and methodologies can be found on pages 86-91 of this Performance Addendum.

302-05	Reductions in energy requirements	Energy requirements of products and services are not deemed relevant as GHG emissions from this energy
	of products and services	use do not meet the relevancy criteria stipulated by the WRI Scope 3 Reporting Standard. Specifically: they
		do not contribute significantly to Diageo's overall Scope 3 footprint, nor do they contribute to Diageo's
		business-wide risk exposure.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

WATER

103-02

Our management approach to water

103-03

Evaluation of the management approach

Our Water Blueprint defines our strategic approach to water stewardship. It is an integrated approach based on four core areas: the sourcing of raw materials; water use in our own operations; stewardship within the communities in which we operate; and local and global advocacy of best practice in water stewardship.

In recent years we have expanded our strategy to encompass our broader global supply chain, which helps us better understand and manage our total impact on water. We focus on our sites and their supply chains in water-stressed areas, and their respective water catchments, all of which are in emerging markets.

Our Water Blueprint's key aims are to:

Reduce water use through a 50% improvement in water-use efficiency We will continue to improve water-useefficiency in our operations through
a combination of continuous improvement, operational efficiency projects, capital investment, and cultural change, aimed at conserving and reusing water wherever possible. We prioritise sites located in water-stressed areas.
Return 100% of wastewater from our operations to the

environment safely

Measures include investment in additional effluent treatment capacity, and upgrades to ensure we continue to make progress towards this ambitious target.

3. Replenish the amount of water used in our final product in water- stressed areas

We recognise that our impact on water stretches beyond our own operations, and we are committed to replenishing water in water-stressed areas where we operate or source raw materials. This means that where we make our brands in water-stressed areas, we will replenish the equivalent amount of water used in our final products. We will do this either by replenishing the local catchment, or by replenishing the water-stressed catchment of relevant raw material sourcing areas, through projects such as reforestation, wetland recovery,

safe water and sanitation, and improved farming techniques.

For more details see the Pioneer grain-to-glass section of our Annual Report, pages 28-29, and our Environment Policy.

We set four targets to be achieved by 2020, against a 2007 baseline. Progress against each target is disclosed in our Annual Report through the following KPIs:

Target: Reduce water use through a 50% improvement in water-use efficiency

KPI: % improvement in litres of water used

per litre of packaged product

Target: Return 100% of wastewater from our operations to the environment safely

KPI: % reduction of wastewater polluting power (1,000t BOD)

Target: Replenish the amount of water used in our final product in water-stressed areas

KPI: % of total volume of water replenished in water-stressed areas (m3)

Target: Equip our suppliers with tools to protect water resources in our most water- stressed locations

KPI: % of key suppliers engaged in water management practices.

We are developing our strategy to address our most material issues and support sustainable growth over the critical decade until 2030. While the launch of our strategy and the targets that will drive its delivery have been delayed by Covid-19 until later this fiscal year, we are clear on our direction of travel and our overall goals. We know we must continue to be global champions for water stewardship, and vocal advocates for a low carbon world.

We are listed on the FTSE4Good, CDP and Dow Jones Sustainability World Index to benchmark our sustainability performance.

The Environmental Executive Working Group, through the Environmental Leadership Team, ensures compliance is measured and monitored.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

WATER continued

Disclosure		Our response

303-01	Interactions with water as	As a beverage company, water is an essential ingredient in all Diageo brands and is used throughout our
	a shared resource	value chain. Water is used for growing our raw materials and manufacturing our packaging. We also use
		water throughout our direct manufacturing operations. We are committed to best practice water
		stewardship across our value chain including in local communities.
		We carry out a detailed, data-driven assessment of our impact on water throughout our value chain, which
		includes assessing the water embedded in our products, through to water used to grow our raw materials.
		We conduct on-going water assessments for brands and suppliers and undertake assessments every three
		years in our own sites. We use a range of tools, including lifecycle analysis, environmental footprinting, the
		World Resource Institute Aqueduct tool and our internal risk assessment process.
		Our Diageo Water Blueprint sets out how we address water-related impacts and how we work with our
		stakeholders
		including suppliers, consumers, local communities, governments and regulatory groups.
		The Water Blueprint also provides water-related goals and targets and a management approach and

		demonstrates how we interact with global and local public policy.
		Omission: catchments where Diageo causes significant water-related impacts.

303-02	Management of water discharge-	Diageo aims to return all wastewater from operations to the environment safely. Our internal voluntary
	related impacts	standard sets stringent criteria for wastewater discharge which ensure we meet or exceed local and
		national regulations and return our wastewater in a state as close to nature as possible and maximise circularity.
		The criteria for wastewater discharge include temperature, pH, total suspended solids and chemical oxygen
		demand (COD) and/or biological oxygen demand (BOD), key parameters in determining the pollution
		potential and oxidisable organic matter present in the water discharge. The global wastewater standard applies
		across all sites including locations where local discharge parameters do not exist or are in development.

303-03	Water withdrawal	Water withdrawal
				Areas with
			All areas	water stress

Water withdrawal by source

Surface water		1,851 ML	1,077 ML
-	Freshwater		1,851 ML	1,077 ML
-	Other water		0 ML	0 ML
Ground water		6,821 ML	1,778 ML
-	Freshwater		6,821 ML	1,778 ML
-	Other water		0 ML	0 ML
Seawater		0 ML	0 ML
Produced water		0 ML	0 ML
Third-party water		7,803 ML	2,115 ML
-	Freshwater		7,803 ML	2,115 ML
-	Other water		0 ML	0 ML
Total third-party	Surface water	7,803 ML	2,115 ML
Ground water	0 ML	ML
water withdrawal by
Seawater	0 ML	0 ML
withdrawal source
Produced water	0 ML	0 ML

Total water	Surface water (total) + Ground water (total) +
withdrawal	Seawater (total) + Produced water (total) +
	Third-party water (total)	16,475 ML	4,970 ML

Within PwC's independent limited assurance scope, see pages 92-93 of this document.

Please refer to reporting methodologies for more information on how data has been compiled such as standards, methodologies and assumptions used.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

WATER continued

Disclosure		Our response

303-04	Water discharge	Water discharge
					Areas with
				All areas	water stress

		Water discharge	Surface water	3,781 ML	0 ML

			Ground water	0 ML	0 ML

			Seawater	2,735 ML	14 ML

			Third-party water (total)	5,323 ML	2,314 ML

			Third-party water set for use	0 ML	0 ML
			to other organisations
		Total water discharge	Surface water + Ground water +	11,839 ML	2,328 ML
			Third-party water (total)
		Water discharge by	Freshwater	0 ML	0 ML
		freshwater and other water

			Other water	0 ML	0 ML

Please refer to GRI 306-01 for information on wastewater polluting power by region, by year (BOD/tonnes).

Please refer to reporting methodologies for more information on how data has been compiled such as standards, methodologies and assumptions used.

303-05	Water consumption	Water consumption
					Areas with
				All areas	water stress

		Water consumption	Total water consumption	4,636 ML	2,642 ML

			Change in water storage, if water	0 ML	0 ML
			storage has been identified as having
			a significant water-related impact

Please refer to reporting methodologies for more information on how data has been compiled such as standards, methodologies and assumptions used.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

BIODIVERSITY

103-02

Our management approach to biodiversity

103-03

Evaluation of the management approach

Many of our distilleries, breweries and other sites are surrounded by valuable ecosystems that support a wide range of plant and animal species and can be vital to the livelihoods of local people.

We take responsibility for the impact our business has on these ecosystems and the wider environment, particularly in relation to water, our main ingredient. Where appropriate, we measure and report our impact, mitigate the risks, and work towards improving the environment.

Additionally, we carry out biodiversity impact assessments for new builds and sites in sensitive locations.

The use of water in areas that are water stressed has particular consequences for biodiversity. Our overall water strategy focuses on an integrated approach to corporate water stewardship, with a specific emphasis on water-stressed areas.

Nineteen of our production sites are associated with wetlands designated under the Convention on Wetlands of International Importance (the Ramsar Convention).

In each protected wetland we are monitoring the local issues specific to our sites and implementing technologies that improve water efficiency and the quality of wastewater. We are also exploring the potential for collaboration with other industries and stakeholders to encourage more effective water catchment management practices.

We have identified 36 operational sites, and other land we own, near or adjacent to areas designated as having biodiversity value by the United Nations or national conservation lists. These have a relatively small total area of approximately 25km², and are listed under 304-01.

Several of our sites are also in, or close to, the habitats of species that are designated as threatened by the International Union for Conservation of Nature. In all cases, we are managing these sites in accordance with our licence conditions and aiming to meet the expectations of local stakeholders.

DisclosureOur response

304-01	Operational sites owned, leased, managed in,	See table below.
	or adjacent to, protected areas and areas of high
	biodiversity value outside protected areas
					Position in relation to area of high
					biodiversity value
		Type of					Biodiversity value

	Site	operation	Protected status of area	Inside Adjacent Near	Close	attribute

	Victoria,	Brewing	C.I. Biodiversity Hotspot			Terrestrial, Freshwater,
	Seychelles						Marine Ecosystem
		IUCN Category I-VI, Alliance for Zero Extinction,

			Key Biodiversity Area

			Ramsar

	Cragganmore,	Distilling	IUCN Category I-IV, Natura 2000			Terrestrial, Freshwater
	Scotland
		Key Biodiversity Area


			IUCN Category V-VI

	Dalwhinnie,	Distilling	IUCN Category V-VI				Terrestrial, Freshwater
	Scotland
		IUCN Category I-IV, Natura 2000


			Key Biodiversity Area

			Ramsar

	Lochnagar,	Distilling	IUCN Category V-VI				Terrestrial, Freshwater
	Scotland		IUCN Category I-IV, Natura 2000,

Key Biodiversity Area

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

BIODIVERSITY continued

DisclosureOur response

304-01	Operational sites owned, leased, managed in,	See table below (continued).
continued	or adjacent to protected areas and areas of high
	biodiversity value outside protected areas continued
							Position in relation to area of high
							biodiversity value
				Type of					Biodiversity value

	Site		operation	Protected status of area	Inside Adjacent Near	Close	attribute

	Quetzaltenango,	Packaging	C.I. Biodiversity Hotspot			Terrestrial, Freshwater
	Guatemala
			Key Biodiversity Area, Alliance for Zero Extinction


					IUCN Category I-IV, IUCN Category V-VI

	Gazimagusa,		Packaging	C.I. Biodiversity Hotspot			Terrestrial, Freshwater,
	Cyprus							Marine Ecosystem
			Key Biodiversity Area, Natura 2000


	Dailuaine,		Distilling	IUCN Category I-IV, Natura 2000			Terrestrial, Freshwater
	Scotland
			IUCN Category I-IV, IUCN Category V-VI


	Dailuaine,		Dark grains	IUCN Category I-IV, Natura 2000			Terrestrial, Freshwater
	Scotland		plant
		IUCN Category I-IV, IUCN Category V-VI


	Dufftown,		Distilling	Natura 2000				Terrestrial, Freshwater
	Scotland
			Key Biodiversity Area


					IUCN Category I-IV, IUCN Category V-VI

	Dar es Salaam,		Brewing	Key Biodiversity Area, Natura 2000, Ramsar			Terrestrial, Freshwater
	Tanzania
			IUCN Category I-IV


					IUCN Category V-VI

	Meta Abo,		Brewing	C.I. Biodiversity Hotspot			Terrestrial, Freshwater
	Ethiopia			IUCN Category V-VI


					Key Biodiversity Area

					IUCN Category I-IV

	Benin, Nigeria		Brewing	IUCN Category V-VI, Key Biodiversity Area			Terrestrial, Freshwater

	Nairobi, Kenya		Malting	C.I. Biodiversity Hotspot			Terrestrial, Freshwater
					IUCN Category I-IV, IUCN Category V-VI,
					Key Biodiversity Area

	Ponda, Goa,		Distilling	IUCN Category I-IV, IUCN Category V-VI			Terrestrial, Freshwater
	India
			Key Biodiversity Area, Alliance for Zero Extinction,

					C.I. Biodiversity Hotspot

	St Croix, USVI		Distilling	C.I. Biodiversity Hotspot			Terrestrial, Freshwater

					Key Biodiversity Hotspot, Alliance for Zero Extinction

					IUCN Category I-IV, IUCN Category V-VI

	Moshi, Tanzania	Brewing	Key Biodiversity Area, C.I. Biodiversity Hotspot			Terrestrial, Freshwater

					IUCN Category V-VI

					IUCN Category I-IV, World Heritage Site

	Auchroisk,		Distilling	IUCN Category I-IV, Natura 2000			Terrestrial, Freshwater
	Scotland
			Ramsar, Key Biodiversity Area


How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed		Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator			to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

BIODIVERSITY continued

DisclosureOur response

304-01	Operational sites owned, leased, managed in,	See table below (continued).
continued	or adjacent to protected areas and areas of high
	biodiversity value outside protected areas continued
						Position in relation to area of high
						biodiversity value
			Type of					Biodiversity value

	Site	operation	Protected status of area	Inside Adjacent Near	Close	attribute

	Benrinnes,	Distilling	IUCN Category I-IV, Natura 2000,			Terrestrial, Freshwater
	Scotland		Key Biodiversity Area

	Blackgrange,	Warehousing	Ramsar, IUCN Category I-IV, Natura 2000,			Terrestrial, Freshwater
	Scotland		Key Biodiversity Area

	Blair Athol,	Distilling	Natura 2000				Terrestrial, Freshwater
	Scotland		IUCN Category I-IV, IUCN Category V-VI,

				Natura 2000, Key Biodiversity Area
				Key Biodiversity Area

	Blythswood,	Warehousing	IUCN Category I-IV, Natura 2000,			Terrestrial, Freshwater
	Scotland		Key Biodiversity Area

				IUCN Category V-VI

	Bonhill,	Warehousing	IUCN Category V-VI				Terrestrial, Freshwater
	Scotland
		Ramsar, Natura 2000, IUCN Category I-IV,

				Key Biodiversity Area

	Broxburn,	Distilling	Ramsar, Natura 2000, IUCN Category I-IV,			Terrestrial, Freshwater
	Scotland		Key Biodiversity Area

	Burghead,	Malting	IUCN Category I-IV, Natura 2000			Terrestrial, Freshwater
	Scotland
		IUCN Category V-VI, Key Biodiversity Area


	Cambus,	Warehousing	Ramsar, IUCN Category I-IV, Natura 2000,			Terrestrial, Freshwater
	Scotland		Key Biodiversity Area

				IUCN Category V-VI, Key Biodiversity Area

	Cardhu,	Distilling	IUCN I-IV, Natura 2000				Terrestrial, Freshwater
	Scotland
		Key Biodiversity Area


	Carsebridge,	Warehousing	Ramsar, IUCN Category I-IV, IUCN Category V-VI,			Terrestrial, Freshwater
	Scotland		Natura 2000, Key Biodiversity Area

	Glen Ord,	Distilling	Ramsar, IUCN Category I-IV,			Terrestrial, Freshwater
	Scotland		Natura 2000, Key Biodiversity Area

	Glen Spey,	Distilling	IUCN Category I-IV, Natura 2000			Terrestrial, Freshwater
	Scotland

	Glendullan,	Distilling	IUCN Category I-IV, Natura 2000,			Terrestrial, Freshwater
	Scotland		Key Biodiversity Area

				IUCN Category V-VI
	Knockando,	Distilling	IUCN Category I-IV, Natura 2000			Terrestrial, Freshwater
	Scotland
	Menstrie,	Warehousing	IUCN Category I-IV				Terrestrial, Freshwater
	Scotland
		Ramsar, Natura 2000, Key Biodiversity Area


How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed		Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator			to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

BIODIVERSITY continued

DisclosureOur response

304-01	Operational sites owned, leased, managed in,	See table below (continued).
continued	or adjacent to protected areas and areas of high
	biodiversity value outside protected areas continued
				Position in relation to area of high
				biodiversity value
		Type of				Biodiversity value

	Site	operation	Protected status of area	Inside Adjacent Near	Close	attribute

	Mortlach,	Distilling	Natura 2000			Terrestrial, Freshwater
	Scotland
		IUCN Category I-IV, Key Biodiversity Area


	Mwanza,	Brewing	IUCN Category I-IV, Key Biodiversity Area	Terrestrial, Freshwater
	Tanzania
		IUCN Category V-VI


	Shieldhall,	Bottling	Ramsar, IUCN Category I-IV, IUCN Category V-VI,	Terrestrial, Freshwater
	Scotland		Natura 2000, Key Biodiversity Area

	Teaninich,	Distilling	Ramsar, IUCN Category I-IV,	Terrestrial, Freshwater
	Scotland		Natura 2000, Key Biodiversity Area

	Kampala,	Brewing	Ramsar			Freshwater
	Uganda

Proximity

Inside: inside boundary of protected area

Adjacent: <1km to boundary of protected area

Near: 1-5km to boundary of protected area

Close: 5-20km to boundary of protected area

Protected area designations

Alliance for Zero Extinction
C.I. (Conservation International) Biodiversity Hotspot
IUCN (International Union for Conservation of Nature) Categories I-VI
Key Biodiversity Area: compiled from IUCN Red List of Threatened Species™, BirdLife International's Important Bird Areas, Plantlife International's Important Plant Areas, IUCN's Important Sites for Freshwater Biodiversity, and sites identified by the Alliance for Zero Extinction
Natura 2000
Ramsar
World Heritage Site

Disclosure		Our response

304-02	Significant impacts of activities,	None of our operations or land that we own has a significant impact on protected areas, or on areas of high
	products and services	biodiversity value outside protected areas.
	on biodiversity	Omissions: impact of products.


304-03	Habitats protected or restored	We have carried out initiatives in various locations to protect habitats. For example, in Kenya, we planted
		100,000 trees, in regions such as Koguta Forest in Kisumu county, in support of the country's agenda
		to increase tree cover from 7% to 10%. Diageo employees around the world took part in volunteer-led
		environment-related activity, such as tree planting, establishing community gardens, and community
		clear-ups, in support of the United Nations World Water Day on 22 March and World Environment Day
		on 5 June 2020.
		Omissions: total size and location of all habitats restored/protected; methodologies and assumptions.

304-04	IUCN Red List species and	Critically endangered: 1
	national conservation list	Endangered: 3
	species with habitats in areas
	Vulnerable: 3
	affected by operations

Near threatened: 3

Least concern: 11

See table at 304-01 for list of locations.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

EMISSIONS

103-02	Our management approach to emissions	103-03	Evaluation of the management approach
	Distillation and brewing can generate emissions that have an		One of our 2020 targets covers our HFC-free ambition. We report
	impact on the environment. We comply with all local laws and		progress through a KPI disclosed in our Annual Report (page 35).
	regulations with regard to air emissions.		Target: Ensure all our new refrigeration equipment in trade

	In 2015 we set ourselves a target to ensure all our new refrigeration				is HFC-free, with a reduction in associated greenhouse
	equipment in trade is free from hydrofluorocarbons (HFCs), with				gas emissions from 2015
	a reduction in associated greenhouse gas emissions.		KPI:	% of new equipment sourced HFC-free from 1 July 2015.
	A few of our sites have nitrogen oxides (NOx) and sulphur oxides		We are currently developing our strategy to address our most
	(SOx) air emissions associated with the roasting and kilning of		material issues and support sustainable growth over the critical
	cereals. These emissions are measured but are minimal in the		decade until 2030. While the launch of our strategy and the
	context of our overall total NOx/SOx levels, which remain low		targets that will drive its delivery have been delayed by Covid-19
	compared with background NOx and SOx data. We are committed		until later this fiscal year, we are clear on our direction of travel
	to measuring and reducing emissions under the We Mean Business		and our overall goals, which include further reducing our emissions
	initiative to reduce Short-Lived Climate Pollutants.		and continuing to be vocal advocates for a low carbon world.
			We are listed on the FTSE4Good, CDP and Dow Jones Sustainability
			World Index to benchmark our overall sustainability performance.
			The Environmental Executive Working Group, through the
			Environmental Leadership Team, ensures compliance with our
			Environment Policy is measured and monitored.

Disclosure	Our response

305-01and Direct (Scope 1) and indirect

305-02 (Scope 2) GHG emissions

Diageo's total direct and indirect carbon emissions, (location/gross) this year were 710,986 tonnes, comprising direct emissions (Scope 1) of 567,080 tonnes and indirect emissions (Scope 2) of 143,905.

Direct and indirect GHG emissions (market-based) ('000 tonnes CO2e)1,2

845
	512	490	477
171
	71	65	30
2007	2018	2019	2020

Direct

Indirect

CO2e figures are calculated using the WRI/WBCSD GHG Protocol Guidance available at the beginning of our financial year; the kWh/CO2 conversion factor provided by energy suppliers; the relevant factors to the country of operation; or the International Energy Agency, as applicable.
2007 baseline data, and data for each of the intervening years in the period ended 30 June 2019, have been restated in accordance with the WRI/WBCSD Greenhouse Gas Reporting Protocol and Diageo's environmental reporting methodologies.
Within PwC's independent limited assurance scope, see pages 92-93.

For reporting methodologies, please see pages 86-91 of this Performance Addendum.

305-03	Other indirect (Scope 3)	Sources of Scope 3 GHG1 emissions	Metric tonnes CO2e (fiscal year 2020)
	GHG emissions
	Purchased goods and services	1,551,057

		Capital goods	414,498

		Fuel- and energy-related activities (not included in Scope 1 or 2)	172,219
		Upstream transportation and distribution2	261,666

		Waste generated in operations	260
		Business travel	0

		Employee commuting	16,374

The principal greenhouse gas is carbon dioxide; others include HCFCs and nitrous oxide (N2O) from fertilisers.
Latest data available.
PwC were engaged to provide limited assurance over this figure in our Scope 3 Logistics GHG Report for the year ended 30 June 2019. This figure has been reproduced here.

Our total fleet miles travelled during the year was 61,363,531.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

EMISSIONS continued

DisclosureOur response

305-04	GHG emissions intensity	The market-based (net) intensity ratio of our GHG emissions was 142g CO2e per litre of packaged product
		(2019 - 137g/l) and the location-based (gross) intensity ratio of our GHG emissions was 199g CO2e per litre
		of packaged product (2019 - 185g/l). For reporting methodologies, including methods of calculation, please
		see pages 86-91 of this Performance Addendum.

		Within PwC's limited assurance scope, see pages 92-93.

305-05	Reduction of GHG emissions	This year we reduced GHG emissions by 8.7%	compared with 2019. For more details, see our Annual Report,
		page 34. For reporting methodologies, please see pages 86-91 of this Performance Addendum.

305-06	Emissions of ozone-depleting	The extent of ozone-depleting substances across our operations is summarised in the following table.
	substances	The residual volumes of halons and CFCs across the business are now relatively minor.
		Ozone-depleting substances and fluorinated gases
					Present (kg)	Emitted (kg)	Emissions CO2e (tonnes)

		Halons	0	0	0

		CFC	14	0	0

		HCFC	3,064	673	1,217
		HFC	19,612	853	1,516

		SF6	1	0	0
		PCC	4	0	0

305-07 Nitrogen oxides (NOx), sulphur oxides (SOx) and other significant air emissions

The use of fuel and the distillation of alcohol generate emissions which have impacts on the environment.

In 2020, we emitted 880t of nitrogen oxides (NOx) and 810t of sulphur oxides (SOx). NOx and SOx are calculated based on fuel usage and standard emission factors. A small number of sites have NOx and SOx air emissions associated with the roasting and kilning of cereals. These emissions are measured but are minimal to our overall total NOx/SOx levels, which remain low compared with background NOx and SOx data.

NOx and SOx emissions by year (tonnes)

2018

2019

2020

NOx	988	904	880

SOx	945	949	810

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

EFFLUENTS AND WASTE

103-02	Our management approach to effluents and waste	103-03	Evaluation of the management approach
	As part of our global Environment Policy we will comply with		We have set two relevant targets to be achieved by 2020.
						Progress against each target is disclosed in our Annual Report
	consent limits on abstraction and discharges of water, or with
	appropriate Diageo standards where there is no regulation.		through the following KPIs:
	We look for alternative uses for wastewater via recycling and		Target: Return 100% of wastewater from our operations to the
	reuse where appropriate. We set targets for reducing water use
				environment safely
	and wastewater discharge, setting more challenging water
		KPI:	% reduction of wastewater polluting power (1,000t BOD)
	use and replenishment targets in areas of water scarcity.
	We monitor waste streams, promoting awareness of the need		Target: Achieve zero waste to landfill
	to increase resource efficiency. To minimise the waste we send		KPI:	Reduction in total waste to landfill (tonnes).
	to landfill, we operate a hierarchy of actions: omit, reduce, reuse,
		We are developing our strategy to address our most material
	recycle and dispose. We monitor levels of waste recycling and
	waste to energy recovery, and set a target for achieving zero waste		issues and support sustainable growth over the critical decade
	sent to landfill at all sites by 2020.				until 2030. While the launch of our strategy and the targets that
	For more details see the Pioneer grain-to-glass sustainability section		will drive its delivery have been delayed by Covid-19 until later
		this fiscal year, we are clear on our direction of travel and our
	of the Annual Report, pages 28-29, and our Environment Policy.
		overall goals. We know we must continue to be global

						champions for water stewardship, and vocal advocates for a low
						carbon world. And we will go further in pioneering sustainability
						from grain to glass, including through encouraging regenerative
						agriculture and by exploring circular economy approaches as we
						seek to minimise waste in our operations and value chain.
						Our Environmental Executive Working Group, through the
						Environmental Leadership Team, ensures compliance with our
						Environment Policy is measured and monitored.

Disclosure			Our response

306-01	Water discharge by quality	In 2020, total effluent volume was 11,839,550m3 and total BOD was 19,419 tonnes of which
	and destination	19,143 tonnes were under Diageo's direct control. We report on wastewater polluting power by region,
			by year, in 303-03, above.
			The immediate receiving medium after leaving Diageo site
							As a percentage of total	Percentage of the final BOD
							Diageo effluent volume	to the environment

			Lake			0	0

			Third-party municipal			45.5	1.9

			Land			3.1	0.1

			River			25.1	4.6
			Sea			23.8	93.4

			Wetland			2.5	0

			Total			100	100

Within PwC's limited assurance scope, see pages 92-93.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

EFFLUENTS AND WASTE continued

DisclosureOur response

306-01	Water discharge by quality and	Wastewater polluting power by region, by year (BOD/tonnes)1
continued	destination continued		2007	2018	2019	2020


		North America	214	343	836	415

		Europe and Turkey2	25,962	23,502	18,354	18,053

		Africa	9,965	145	1,605	950

		Latin America and Caribbean	9	14	10	1

		Asia Pacific	92	3	1	0
		Corporate	1	1	0	0

		Total	36,243	24,008	20,806	19,419

		Total under direct control	35,141	23,751	20,531	19,143

2007 baseline data and data for each of the intervening years in the period ended 30 June 2019 have been restated in accordance with Diageo's environmental reporting methodologies.
Baseline for Europe and Turkey has been restated to reflect waste water volumes originally omitted from F07, and established during the current reporting year which have increased the baseline volume by 10%.
Within PwC's limited assurance scope, see pages 92-93.

For standards and methodologies, see pages 86-91 of this Performance Addendum.

Wastewater treatment by method

In 2020, wastewater was treated onsite at our operations using one or more of the following methods: aerobic treatment, anaerobic treatment, pH balance, filtration, reverse osmosis, settling area and stabilisation ponds. 45.5% of wastewater volume was sent to off-site treatment facilities. This represents 1.9% of final BOD to the environment.

	Sites using treatment	Volume (m3) of effluent by
Treatment method	method (%)	treatment method

Aerobic treatment	45	5,327,798

Anaerobic treatment	40	4,735,820
pH balance	60	7,103,730

Filtration	58	6,866,939

Reverse osmosis	9	1,065,560

Settling area	100	11,839,550

Stabilisation ponds	100	11,839,550
Other	51	6,038,171

Omissions: whether the water was reused by another organisation; and volume of planned and unplanned water discharges.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

EFFLUENTS AND WASTE continued

Disclosure		Our response

306-02	Waste by type and disposal method Total weight of waste by type and disposal method (tonnes)1
				Total waste used
		Region	Total waste to landfill	or recycled	Total waste

		North America	314	138,608	138,922

		Europe and Turkey	11	417,438	417,449

		Africa	1,059	205,760	206,819

		Latin America and Caribbean	27	3,307	3,334

		Asia Pacific	235	98,495	98,730

		Corporate	168	1,223	1,391
		Total	1,814	864,831	866,645

1. This information is collected both by Diageo and by our waste disposal contractors. Within PwC's limited assurance scope, see pages 92-93.

Hazardous waste, reused, recycled and sent to landfill (tonnes)

	Hazardous waste	Hazardous waste
Region	to landfill	used or recycled	Total hazardous waste

North America	1	956	957

Europe and Turkey	9	17,442	17,451

Africa	124	726	850

Latin America and Caribbean	0	107	107

Asia Pacific	6	15	21

Corporate	38	6	44

Total	178	19,252	19,430

306-03	Significant spills	There were 20 spills or incidents during the reporting year, totalling approximately 651,700 litres of spilled
		material. In each case regulators were informed and were satisfied with our response and follow-up. There
		were no significant spills; as such none was reported in our financial statements

306-04	Transport of hazardous waste	Waste deemed hazardous under the terms of the Basel Convention is not relevant to our business.

306-05 Water bodies affected by water discharges and/or runoff

None of our operations has a known significant impact on protected water bodies as a result of wastewater discharges or runoff.

Omissions: further research required on potential impact and biodiversity value.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

ENVIRONMENTAL COMPLIANCE

103-02

Our management approach to environmental compliance

103-03

Evaluation of the management approach

Our approaches to water, energy, biodiversity, emissions, and effluents and waste are described in detail above. These all form part of our overall approach to managing our environmental impact and complying with all local laws and regulations, or with Diageo standards (whichever are higher), at each site. These are set out in our Environment Policy and our supporting framework of policies.

Our Environmental Executive Working Group (EEWG), through the Environmental Leadership Team, ensures our Environment Policy is monitored across the business. The EEWG is led by the President, Global Supply and Procurement (who is also our Chief Sustainability Officer), and reviews environmental performance and progress on a regular basis throughout the year. There are also routine reports to the Executive Committee and an annual review of performance against yearly and longer-term targets.

Disclosure		Our response

307-01	Non-compliance with	There were 14 incidents of non-compliance with environmental consents this reporting year, resulting
	environmental laws and regulations in a total of £39,221 in fines. No cases were brought through dispute resolution mechanisms.


SUPPLIER ENVIRONMENTAL ASSESSMENT

103-02	Our management approach to supplier	103-03	Evaluation of the management approach
	environmental assessment
	We work with suppliers on environmental issues principally through		Environmental performance is reviewed by the Procurement
	our climate change and water supply chain programmes with CDP,		function, which reports to the Executive Environmental Working
	and the implementation of our sustainable agriculture strategy.		Group (EEWG) who meet quarterly. Mitigation and improvement
	In previous years we have held detailed reviews with our largest		activities are developed as appropriate.

suppliers concerning their climate change risks and performance,	No significant additional supplier programmes were identified for
and developed specific action plans on areas for improvement.
development in 2020. The use of the CDP framework is welcomed
This year we shared feedback letters with participating suppliers
by suppliers as it is a sectoral approach that meets the needs of
detailing areas for improvement and invited them to join us for
their other customers.
a detailed review but delayed CDP scoring coinciding with

Covid-19 disruption this year, meant suppliers did not take up this
offer. We intend to develop our engagement with participating
suppliers significantly in support of our 2030 supply chain
emissions reductions intentions.

We also have specific environmental programmes in place with our key packaging suppliers, aligned with our 2020 sustainable packaging targets. For example, we have worked with our suppliers to increase the amount of paper and board packaging sourced from sustainable sources, and with our glass suppliers to increase the amount of recycled content. We achieved 99% sustainably sourced paper and board this year, against our 2020 target of 100%. Glass is a priority material for our sustainable packaging programme, as it represents over 80% of our packaging by weight. Plastics are also a priority (see page 35 of our Annual Report for more details).

Our Procurement function reviews suppliers' environmental performance across the programmes outlined above. We track progress throughout the year and expect suppliers to take action on areas identified for improvement.

For more details on our approach to environmental management with suppliers, see Diageo's Partnering with Suppliers Standard.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 300: ENVIRONMENTAL continued

SUPPLIER ENVIRONMENTAL ASSESSMENT continued

Disclosure

Our response

308-01 New suppliers that were screened using environmental criteria

Generally, our screening process for suppliers focuses primarily on human rights and labour standards risk. However, any suppliers considered to have potential risks are required to join SEDEX and complete

a questionnaire which contains environmental elements. In February 2020, SEDEX updated their self- assessment questionnaire. By February 2020, 1,261 of our suppliers' sites had completed the previous SEDEX self-assessment questionnaire; since February 2020, 551 suppliers have completed the updated version.

308-02	Negative environmental impacts in	We have identified a variety of environmental impacts associated with our supply chain. Some, such as
	the supply chain and actions taken	climate change through GHG emissions, are relevant to the majority of our suppliers. Other impacts such
		as biodiversity are most relevant to our agricultural raw material suppliers. Because of its wider relevance,
		we actively track and manage the carbon footprint of our supply chain through our membership of the CDP
		Supply Chain programme, which reports by calendar year.

Carbon

In 2012, we began to identify suppliers with whom we can partner to manage the carbon footprint of our supply chain. In the 2019 calendar year we identified 229 which account for approximately 80% of our global spend in the categories we identified as having the highest impact, namely logistics, packaging, raw materials, information services and third-party operations (other businesses that make our brands under licence). Of these 229 suppliers, 92% responded to the CDP questionnaire, with 55% of those reporting that they have an absolute or intensity emissions reduction target.

Compared to the previous year, suppliers reporting Scope 1 emissions has decreased slightly from 87% to 75%, and suppliers integrating climate-related issues into long-term business objectives has remained at 80%.

As part of our work with suppliers, we review their carbon performance, enabling us to analyse and assess the emissions they report to the CDP. We recognise the challenge some suppliers experience in completing their climate change disclosures and in identifying opportunities to work with Diageo to improve. This year, we have taken steps to improve our engagement with them through support webinars and have plans to create a Supplier Toolkit and training to build capability and drive further emissions reductions.

Water

Water is another significant focus area in our supply chain. As part of our 2020 targets, we committed to equipping our suppliers with tools to protect water resources in our most water-stressed locations. Through our membership of the CDP Supply Chain programme, in the 2019 calendar year we asked 144 of our largest suppliers to disclose their water management practices. Of the 86% of suppliers that responded, 70% reported having a water target. This compared with 128 suppliers asked in the previous year, of which 86% responded, and of those responding, 70% reporting having a water target.

In 2018 we carried out water risk assessments of all our third-party manufacturing sites, and identified 18 in water-stressed areas. During 2019 and 2020 we have worked with these sites to better understand their water performance.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL

GRIEVANCE MECHANISMS

103-02

Our management approach to grievance mechanisms

103-03

Evaluation of the management approach

Our social grievance mechanisms cover a wide range of

We track and routinely review our grievance mechanisms,

areas, including:

along with any feedback we have received, and improve the

•

Impacts on society

process where necessary and practical. We also engage with

local judicial or non-judicial grievance mechanisms to address

• Human rights, including child labour

matters when needed.

•

Labour practices.

Human rights breaches

Our key grievance mechanism is our third-partySpeakUp helpline

In 2020, seven human rights allegations were raised via SpeakUp.

and website, available in all 20 Code languages, which can be

Of the seven, five are now closed. Three of the cases were

accessed by employees and anyone in our value chain, including

unsubstantiated, two were substantiated and two remain under

contractors, suppliers, customers and consumers.

investigation. The two substantiated cases relate to individuals

For employees, SpeakUp complements, but does not replace,

not displaying the leadership behaviours we expect, resulting

reporting issues

to line

managers, the Legal team, the Human

in discrimination against employees. We have implemented

Resources team or Business Integrity managers.

disciplinary action to address the concerns. Three of the cases

For suppliers, we advertise SpeakUp through our Partnering with

were closed within our 60-day timeframe, while two investigations

took longer due to the nature of the allegations.

Suppliers Standard. They are also encouraged to raise concerns

Labour standards breaches

to their most senior

Diageo contact, a Diageo lawyer, or the market

Managing Director or function head.

In addition to routine tracking and review, which we carry out

All grievances and allegations are taken seriously and we

for all grievance mechanisms, we also review assessments and

non-compliances from the SEDEX Members Ethical Trade Audit

investigate those that require action. We deal with issues on

(SMETA) supplier assessment systems. Our reviews have led us

a case-by-case basis at local level, and, when needed, local

to work more closely with SEDEX on SMETA activities and

sites will escalate the issue.

with suppliers to assess and strengthen compliance with

Where issues are raised, we are committed to protecting the rights

labour standards.

of those reporting concerns, and we do not tolerate reprisals

Omissions: we do not disclose how each individual grievance

against anyone who raises anything in good faith or has assisted	is resolved since this may compromise the anonymity of
an investigation.
those involved.

We monitor breaches to identify trends or common areas where
further action may be required. Our people receive specific
training and guidance on risks relevant to their role, such as
human rights risk training for Procurement teams. This year, we
rolled out human rights training with a specific focus on Modern
Slavery to our procurement teams and a selection of key roles
within the business. Employees worldwide have received Dignity
at Work training, which is now available through an e-learning
module in 22 languages. Where appropriate, we also share
anonymous case studies of breaches of different areas of our
Code through internal channels.
More information about our approach to managing grievance
mechanisms can be found on page 41 of the Annual Report.
Number of grievances about impacts on society filed,
addressed and resolved through formal grievance
mechanisms
There were 644 suspected breaches of our Code reported this year,
of which 195 were subsequently substantiated. Of the suspected
breaches, 384 were reported through SpeakUp, compared with
416 in 2019. All identified breaches are	taken very	seriously and
those that require action are investigated by trained investigators.
For more information, see page 41 of our Annual Report.
Omissions: we do not disclose how each individual grievance
is resolved since this may compromise the anonymity of
those involved.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

EMPLOYMENT

103-02

Our management approach to employment

103-03

Evaluation of the management approach

We are committed to providing a safe and healthy working environment for all our people. We also strive to create an inspiring work environment, where talent is nurtured, developed and rewarded. We promote an inclusive culture where our employees feel secure, respected and valued for their contribution.

For more details, see the Our people section of the Annual Report, page 27.

We abide by all local labour laws and regulations and expect our suppliers to do the same. Above and beyond that we have our own policies for employees (Human Rights Global Policy) and for suppliers (Partnering with Suppliers Standard).

We measure employee engagement as one of our overarching KPIs, as set out in our Annual Report on page 33, using our annual employee Your Voice survey to measure how engaged our people are. Based on the outcomes of this survey and our ongoing engagement programmes, each team develops its own action plan to improve employee engagement and satisfaction.

Our Human Resources team routinely reviews our policies and standards to ensure they are sufficiently rigorous and will continue to strengthen our reputation as an employer. This helps us retain our employees while also attracting new people to the business.

Disclosure

Our response

401-01 New employee hires and employee turnover

Diageo employs 27,775 people around the world. In 2020 we hired 3,769 employees.

Employee turnover in 2020 was 13.3%. Turnover was a result of both voluntary departures and those stemming from our productivity drive, which was part of our organisational effectiveness initiatives.

New hires by region by age1

					Percentage of
Region	Under 30	30-50	Over 50	Total	headcount

North America	84	165	18	267	10.1%

Europe and Turkey	544	579	39	1,162	11.5%

Africa	155	217	5	377	9.1%

Latin America and Caribbean	356	409	25	790	29.2%

Asia Pacific	409	744	20	1,173	14.3%

Total	1,548	2,114	107	3,769	13.6%

Percentage of total new hires	41.1%	56.1%	2.8%	100%	N/A

Leavers by region by age1
					Percentage of
Region	Under 30	30-50	Over 50	Total	headcount

North America	71	181	74	326	12.4%

Europe and Turkey	381	754	239	1,374	13.6%
Africa	119	331	42	492	11.9%

Latin America and Caribbean	164	279	26	469	17.4%

Asia Pacific	234	674	133	1,041	12.7%

Total	969	2,219	514	3,702	13.3%

Percentage of total leavers	26.2%	59.9%	13.9%	100%	N/A

1. In some markets the concept of 'permanent employment' does not exist. For reporting purposes, we have considered as 'permanent' all those employees whose contract is not fixed-term/temporary.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

EMPLOYMENT continued

DisclosureOur response

401-01	New employee hires and	Leavers by region by gender1
continued	employee turnover continued					Percentage of

		Region	Men	Women	Total	headcount

		North America	182	144	326	12.4%

		Europe and Turkey	698	676	1,374	13.6%

		Africa	309	183	492	11.9%

		Latin America and Caribbean	310	159	469	17.4%

		Asia Pacific	666	375	1,041	12.7%

		Total	2,165	1,537	3,702	13.3%
		Percentage of total leavers	58.5%	41.5%	100%	N/A

1. In some markets the concept of 'permanent employment' does not exist. For reporting purposes, we have considered as 'permanent' all those employees whose contract is not fixed-term/temporary.

Total workforce by employees and supervised workers, and by gender

This information is included in the Our people section of the Annual Report, page 27.

Most people who work on behalf of Diageo are employed by Diageo. In common with most manufacturing companies, we also employ contractors, the numbers of whom vary significantly by region. For the most part, when we use contractors, it is for the following:

Construction projects resulting from investments we are making in the business
Logistics (from the end of the packaging line), such as warehouse operators, forklift truck drivers and loaders
Selected sales and merchandising activity
Cleaning, catering and site security.

401-02	Benefits provided to full-time	We do not collect detailed benefits data across all our locations, so cannot report fully here. Benefits provided
	employees that are not provided to	to employees vary across the countries where we do business. We can comment on two of our significant
	temporary or part-time employees	locations; the UK (21% of our global employee base) and the United States and Canada (12% of our global
			employee base). In the UK we make no differentiation in relation to access to benefits between full-time and
			part-time employees - all employees have access to the same benefits applicable for their grade/location
			regardless of the number of hours worked. In the United States and Canada non-unionised employees that
			work 19.5 hours or less a week do not receive any benefits - those employees that work more than 19.5 hours
			a week have access to the same benefits applicable for their grade/location regardless of the number of
			hours worked.
			Omission: list of benefits.

401-03	Parental leave	Diageo complies with all local legislation in relation to provision of parental leave and provides benefits
			beyond minimum requirements in many countries. In May 2019, as part of our leading work to create a fully
			inclusive and diverse workforce, we announced an ambitious new Family Leave policy applicable to all
			employees across the business from 1 July. The new global policy offers women in all markets a minimum
			of 26 weeks of fully-paid maternity leave, and men in all markets a minimum of four weeks of fully-paid
			paternity leave. In some markets, we offer 26 weeks of fully-paid paternity leave - these include North
			America, Thailand, the Philippines, Singapore, UK, Spain, Netherlands, Ireland, Italy, Russia, Colombia,
			Venezuela and Australia.
			As a result, we have seen a significant increase in the use of parental leave and the amount of time taken.
			163,824 days of parental leave were used by our employees this year. On average the number of days taken
			by men increased from 23 to 105 showing the positive impact of the new policy.
			Number of employees taking parental leave and average number of days taken by gender
					Men	Women	Total

			Number of employees taking parental leave	484	466	950

			Average days of parental leave taken in the year	105	243	173


How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

LABOUR/MANAGEMENT RELATIONS

103-02

Our management approach to labour/management relations 103-03

Evaluation of the management approach

We have a strong commitment to dialogue with all our people, including those who are represented through a trade union or works council.

We respect our employees' choice to join or not join a trade union or other organisations and provide them with a forum to bargain collectively in support of their mutual interests. In countries where the right to freedom of association is restricted by law, we support the development of alternative means of representing employees' interests, by investing in individual consultations.

In those markets where we have employees represented by trades unions or works councils, we have human resources professionals with responsibility for building relationships with those groups, who liaise on all official dialogue. We encourage our markets to involve employee representatives early in business decisions

to give them an opportunity to contribute to key issues.

As outlined in our Partnering with Suppliers Standard, we expect our suppliers to adhere to these principles.

More information can be found in our Human Rights Global Policy.

HR professionals such as Employee Relations Directors and Managers are monitored and evaluated on their performance in managing industrial dialogue.

If an employee wishes to raise a grievance, there are a number of ways to do so. Diageo has a confidential service (SpeakUp) available for anyone, including employees, to raise areas of concern about compliance with the law, our Code of Business Conduct, any of our global policies or standards, or compliance and ethics matters. The service is available 24 hours a day, 365 days a year, and is accessible via telephone or at www.diageospeakup.com.

SpeakUp complements, but does not replace, reporting labour/ management relations issues to line managers, Legal, or Business Integrity managers.

All grievances and allegations in the area of employee or labour relations are treated with the utmost sensitivity. We apply our Global Breach Management standards to every case. This includes the appointment of impartial investigation managers.

All breaches are reported and saved to our central global risk database so they can be monitored until completion and, as appropriate, analysed for trends or themes.

The annual Your Voice employee engagement survey provides a key indicator of labour relations and leads to ongoing action plans to improve relations.

Disclosure		Our response

402-01	Minimum notice periods regarding	We operate in some countries where legislation defines the minimum consultation time required,
	operational changes	and in others where this is set out in policy or in collective terms. These vary from one to 12 weeks.
		Once a decision has been made to effect a change, within those consultation timelines, employees are
		served contractual notice, bringing into effect the decision. Over any period, while we still retain an
		employee, we have a policy to redeploy or find suitable alternative employment where possible. If we are
		unable to find an opportunity we provide a severance or redundancy payment, along with notice,
		depending on contractual obligations.
		We also offer training and outplacement support, which varies by market, to help those who leave Diageo
		to find other employment.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

OCCUPATIONAL HEALTH AND SAFETY

103-02	Our management approach to occupational	103-03	Evaluation of the management approach
	health and safety
	Diageo maintains comprehensive best practice global risk		Occupational health and safety is monitored continuously and
	management standards for occupational health and safety that		reviewed by site, market and functional teams. We report our KPIs
	apply to all our operations and business units with the aim of		to the Supply Chain Leadership team every month. These are also
	ensuring that all our people go home safe and healthy, every day,		reviewed by the Executive Committee.
	everywhere. Our end-to-end health and safety excellence strategy		We take action as necessary to improve our performance, with

aims to deliver a world-class health and safety culture and	measures such as capability building, improvements to processes
environment where everybody plays their part.
and investments in assets and resources.

Each location is:

Required to assure compliance to our standards
Subject to regular formal corporate independent assurance audits
Required to maintain and assure legal compliance assessment processes.

For more details, see Diageo's Health, Safety and Wellbeing Policy.

We have now set a new primary key performance indicator of achieving a leading Total Recordable Accident Frequency rate of less than 3.5 per 1,000. This new target will be part of the next phase of our health and safety cultural journey as we develop our 2025 health and safety strategy.

This year, in response to Covid-19, we created a range of new health and wellbeing content to support our people. Campaigns and activations across the year have focused on further developing mental and physical health awareness. This included a greater focus on promoting flexible working and helping employees create a suitable, dynamic work life balance. We also launched

a new Wellbeing Tips section on My Learning Hub.

Disclosure

Our response

403-01 Occupational health and safety management system

Diageo's Occupational Health and Safety Management System is implemented through a robust audit assurance programme and adherence to Diageo's risk management standards.

It covers Diageo workers and activities across our entire supply chain from procurement, manufacturing and production to marketing, sales and distribution. It includes onsite third-party contractors and third-party logistics providers.


403-02	Hazard identification,	Diageo identifies work-related hazards and assesses risk based on our global risk management standard framework and
	risk assessment and	policy. Audit programmes review the quality of risk assessments and the competency of individuals creating assessments.
	incident investigation	We also have a global 'hazard and behaviour' reporting system, which enables us to identify and rectify unsafe

			conditions or behaviours as well as recognise positive ideas and behaviours. Through this system, employees raise
			their ideas and observations to management, who take action and provide feedback.
			Our Global Health and Safety Policy encourages our workers to report work-related hazards as soon as possible and
			remove themselves from work situations that they believe could cause injury or ill health.
			Our Global Learning Platform has tailored guidance on the investigation of work-related incidents, including the
			processes to identify hazards and assess risks in order to determine corrective actions and mitigation measures.
			The Global Health and Safety Policy cascades down to individual markets and sites.

403-03	Occupational		Our 2025 Occupational Health and Safety Strategy will aim to to create a culture free of work-related illness for workers
	health services	and a happier, healthier and more engaged workforce. Our continued focus on Diageo global risk management
			standards ensures the appropriate health and wellbeing controls are in place.
			Internal data protection/privacy policies and national regulations apply to the recording or disclosure of occupational
			health-related incidents, ensuring that workers' participation in occupational health services is not used in any
			favourable or unfavourable treatment of workers.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

OCCUPATIONAL HEALTH AND SAFETY continued

Disclosure		Our response

403-04	Worker participation, consultation	Diageo's global risk management standards (GRMS) as well as local legislation (in some markets) mandate the
	and communication on	use of employee consultation forums (e.g. safety committees) at facility level. These cover 100% of Diageo's
	occupational health and safety	operations. Our GRMS also require employees to be involved in risk assessment and change-management
		processes as they relate to health and safety.
		This year, given the unique challenges faced by all employees during the Covid-19 pandemic, we have found
		innovative ways to support, inspire and engage our people. As well as developing specific programmes to
		support people's mental health as part of our commitment to health, safety and wellbeing, we developed
		a new pulse survey tool to help us understand how engaged our employees are, to listen to their feedback,
		and to learn from their experience of working during the pandemic. We have also clarified what constitutes
		a work-related injury to people working at home, that is, an injury caused by an activity involving work-
		related equipment.

403-05	Worker training on occupational	Diageo provides worker training through several channels including:
	health and safety	• Our My Learning Hub, a learning management system platform our people can access every day for

		occupational health and safety capability and awareness content. Some of this training is mandated
		and assigned to workers and is based on the requirements of their role
		• Face-to-face occupational health and safety training such as forklift truck training or explosive
		atmospheres training is delivered by internal and external trainers; some other subject-matter-expert
		training is delivered through video conferencing.

403-06	Promotion of worker health	Diageo facilitates non-occupational medical and healthcare services through our Benefits Team. We provide
		optional medical insurance, which is communicated to employees through internal communication channels.
		Diageo provides access to an Employee Assistance Programme (Workplace Options) as well as access
		to voluntary health promotion training courses on My Learning Hub, such as our DRINKiQ e-learning
		programme on positive drinking behaviours. We continue to focus on growing the health and wellbeing
		capability of our people. We run various health and wellbeing awareness capability weeks covering
		subjects including mental health, the importance of a good night's sleep, mindfulness techniques and
		nutrition. This year, several guest speakers shared their own mental health journeys. In response to Covid-19,
		we created a new Wellbeing Tips section on My Learning Hub.

403-07	Prevention and mitigation of	Diageo prevents and mitigates significant occupational health and safety impacts directly linked to its
	occupational health and safety	operations, products or services through its business relationships by building core health and safety
	impacts directly linked by business	requirements and KPI deliverables into third-party service level agreements (SLAs). We meet third-party
	relationships	service providers on a regular basis to review delivery against KPIs and we will withdraw from business
		relations with service providers who put the reputation of Diageo at risk or who do not consistently deliver
		the KPIs within the service level agreements.

403-08 Workers covered by an occupational health and safety management system

All our workers are required to comply with the mandatory requirements of our Global Occupational Health and Safety Policy as well as adhering to all global risk management standards. Adherence to these standards and requirements is continually audited by internal audit teams.

Some of our sites have obtained accreditation to the ISO 45001 Occupational Health and Safety Management System Standard and are regularly audited against this standard by a third party.

No employees or workers are excluded from the occupational health and safety management system.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

OCCUPATIONAL HEALTH AND SAFETY continued

Disclosure		Our response

403-09	Work-related injuries	Any work-related incident, involving injury or illness, where a healthcare professional or Diageo recommends
		one or more days away from work is reportable to Diageo (e.g. any unplanned, identifiable event that results
		in personal injury or harm).
		Severe Injury and Fatality Prevention
		All business units are required to conform to the Severe and Fatal Incident Prevention Programme,
		introduced in 2012. This is aimed at eliminating the risks that lead to severe or fatal incidents and ensuring
		suitable and sustainable controls are in place to manage these. Local and regional teams conduct frequent,
		robust self-assessment audits to ensure ongoing compliance to this mandatory programme.
		Total Recordable Accident Frequency Rate
		After sustaining less than one Lost Time Accident (LTA) per 1,000 employees over the past three years,
		we have introduced a new, broader Total Recordable Accident Frequency Rate (TRAFR) metric, with the
		aim of achieving a leading TRAFR performance of 3.5 per 1,000 employees or less.
		This year, our global TRAFR target was successfully delivered with a rate of 2.12 and our global LTA frequency
		rate was 0.60 , a reduction of 41% LTAs compared with 2019. This rate is represented 83% by men and 17% by
		women. For rates by region and year since 2016, see below.
		This year, we are sorry to report that a colleague was fatally injured in a road traffic accident in Tanzania.
		The lessons from this tragedy have led to a refreshed focus on road safety capability (including defensive
		driver training) and vehicle technology, and ensuring all the hazards and risks associated with driving are
		suitably controlled. The health, safety and wellbeing of our people remains our top priority.
		Safety data by region
			Employee	Employee		Days lost per	Independent
			LTA rate	TRA rate	Fatalities1	1,000 FTEs2	contractor LTAs3

		North America	0.31	2.21	0	59.58	0

		Europe and Turkey	1.03	2.15	0	53.95	6

		Africa	0.36	2.42	1	61.46	6

		Latin America and Caribbean	1.56	2.51	0	113.32	1

		Asia Pacific	0.30	1.65	0	4.28	3

		Diageo (total)	0.60Δ4	2.12	1	42.72	16

Fatalities include any employee work-related fatality arising in their day-to-day work environment, or any work-related fatalities occurring to third parties and contractors (non FTEs), while on Diageo's premises.
The number of lost-time accidents decreased this year as did the severity of the injuries sustained during 2020. The introduction of our new total recordable accident metric will ensure more accidents will be investigated with the same rigour as lost-time accidents, helping to prevent more serious injuries in the future.
A rate is not reported for independent contractors due to the difficulty and administrative burden in accurately recording headcount. Performance is measured by an absolute incident number.
The UNB disposal has positively impacted the LTA figure from last year as acquisitions or disposals are only accounted for in the current year. Previous year and baseline data is not restated for health and safety data.
Within PwC's limited assurance scope, see pages 92-93.

Lost-time accident frequency rate per 1,000 full-time employees1

Region	2016	2017	2018	2019	2020

North America	0.37	0.70	0	1.76	0.31

Europe and Turkey	1.28	1.46	1.58	1.00	1.03

Africa	0.77	1.26	1.35	1.22	0.36

Latin America and Caribbean	2.27	1.79	0.36	1.15	1.56

Asia Pacific	2.01	0.81	0.66	0.57	0.30

Diageo (total)	1.44	1.14	1.00	0.98	0.60Δ2

Number of accidents per 1,000 employees and directly supervised contractors resulting in time lost from work of one calendar day or more.
The UNB disposal has positively impacted the LTAFR figure from last year as acquisitions or disposals are only accounted for in the current year, and prior year or baseline data is not restated.
Within PwC's independent limited assurance scope. Please see pages 92-93 for further details.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

OCCUPATIONAL HEALTH AND SAFETY continued

DisclosureOur response

403-09	Work-related injuries continued	Types of injury (employee) %
continued
		Cut by glass	18%	Forklift truck impact	4%

			Slipped, tripped or fell on the	17%	Burn - contact with hot surface	4%
			same level		or liquid
			Manual handling	14%	Struck by falling object	4%
			Fall to lower level <2m	10%	Entanglement in moving parts	3%
			Struck against	6%	Other repeated motion/pressure 1%

			Cut by knife/razor/other	6%	Bite/Sting/Animal attack	1%
			Struck/trapped by (other than	6%	Chemical splash/burn	0%
			vehicle or falling object)
			Other vehicle impact	5%

Types of injury (contractor) %

Struck/trapped by (other than	25.9%	Struck against	7.4%
vehicle or falling object)
Slipped, tripped or fell on the	14.8%	Burn - contact with hot surface	3.7%
same level		or liquid
Cut by glass	14.8%	Entanglement in moving parts	3.7%
Cut by knife/razor/other	7.4%	Struck by falling object	0%
Other vehicle impact	7.4%	Fall to lower level <2m	0%

Forklift truck impact	7.4%	Other	0%
Manual handling	7.4%

		Omissions: acute onset of occupational illness is included in our LTA definition. However, occupational
		disease rates are not disclosed due to regional variances in capabilities, national practice and regulatory
		barriers. We are working to improve consistency of reporting for future disclosures.
		Regional breakdowns by injury type are not included since, given the low LTA numbers, the trends are not
		statistically significant. We do not include absenteeism rates since we do not collect this data at a global level.

403-10	Work-related ill health	Any work-related incident, involving injury or illness, where a healthcare professional or Diageo recommends
		one or more days away from work is reportable to Diageo (e.g. any identified illness made worse or caused by
		workplace factors). Internal data protection/privacy policies and national regulations prevent the recording
		or disclosure of many communicable 'serious diseases' as defined in the GRI implementation guidance.
		Our global health and safety standards require occupational health monitoring for new employees and
		specific worker groups and for specific conditions, including lung function and audiometry assessments for
		shift workers, and assessments for lone workers and for professional drivers. Our global standards also include
		industrial hygiene monitoring requirements for specific work groups or conditions, including workplace
		chemical exposures, noise, vibration and ionising radiation. Our monitoring programmes and incident data
		suggest that the only globally material issue is musculoskeletal disorders. However, incidence rates are not
		disclosed due to regional variations in capabilities and data privacy requirements and regulations. We are
		currently piloting a new work-related ill health reporting system in the UK/Ireland with a view to expanding
		this in the future.

Omission: Diageo does not collect data on work-related ill health at a global level.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

TRAINING AND EDUCATION

103-02	Our management approach to occupational training	103-03	Evaluation of the management approach
	and education
	Training and education are central to our approach to developing		We have a performance management and development process
	our people. The cornerstone of our development initiatives is our		for all employees. We evaluate employees' performance against
	Partners for Growth (P4G) performance management programme		annual objectives and identify where they may benefit from our
	for all employees. It includes a clear personal development		extensive range of internal and external training programmes.
	programme supported by a variety of internal and external training		Each function assesses its own training needs and is responsible
	and coaching opportunities, alongside performance management.		for succession planning. As a result of these reviews, training is
	We also have a range of initiatives that are designed to help		reviewed and developed in partnership with the Global Learning
	employees become the best they can be, as described in 404-02.		team. We also centrally develop and implement specific training
				to strengthen the leadership community.

Disclosure		Our response

404-01	Average hours of training per	Our measurement control system enables markets to track and capture training hours of employees
	year per employee	(from both global and local programmes) within the Diageo 'My Learning Hub' System.
		This year the system recorded 457,428 hours in total, an average of approximately 20.4 hours per employee of
		the 22,390 employees recorded in the system.
		We also provide training to our Supply team, which is recorded manually in employees' personal files and
		is not recorded within the management system. These figures therefore exclude this training.
		Omissions: our system is not set up to record training hours per employee by gender.

404-02	Programmes for upgrading	We strive to be trusted and recognised for providing innovative world-class learning solutions. Our mission
	employee skills and transition	is for our people to access learning and development that is relevant to them simply and effectively, driven
	assistance programmes	by a desire to ensure our employees can experience learning every day, everywhere.

We will achieve this through our three core strategic pillars:

1. Promote a continuous learning culture: our ambition is to personalise learning at point of need, facilitating micro-learning moments every day where individuals take ownership for their learning needs while line managers remain accountable for development conversations

2. Partner with the business to grow capability and performance: our goal is to identify strategic capability requirements at both an organisational and local level to close the capability gap, by leveraging data-driveninsight and working with pace and agility

3. Deliver fulfilling learning experiences:we will reframe the purpose of learning, creating immersive and innovative multi-channellearning experiences that connect our global Diageo community to grow capability and performance.

We see learning technology as an enabler and launched our learner experience platform, My Learning Hub, in September 2019. Containing a library of over 20,000 external learning resources that complement our own proprietary learning content, My Learning Hub provides our people with access to best-in-class learning on any device, anywhere, at any time. We have worked to ensure we develop learning and development solutions with clarity, simplicity and agility, that provide tailored programmes that reflect our rapidly changing working environment. Our learning is segmented into Academies that are organised into dedicated content channels supporting important learning moments, such as onboarding, moving to a new role, becoming a people manager, or parental leave. In addition, employees can search for performance support at the point of need, and consume curated blended learning content to grow essential skills such as leadership, commercial, marketing and change management skills in addition to opportunities to develop

a greater understanding of resilience and personal mental health. My Learning Hub has received a very favourable response, and our people have viewed over 2,000,000 pieces of content since launch.

The majority of employees at Diageo also have individual development plans and performance goals as part of their Partners for Growth (P4G) appraisal system, which are tracked and measured by their line managers. The content available through our formal learning programmes and via My Learning Hub is further supported through active coaching and mentorship.


404-03	Percentage of employees receiving In 2020, 82.8% of our employees received regular performance reviews.
	regular performance and career	Omissions: data by gender and by employee category.
	development reviews


How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

DIVERSITY AND EQUAL OPPORTUNITY

103-02	Our management approach to diversity and equal opportunity	103-03	Evaluation of the
			management approach

Diageo is fully committed to diversity and equal opportunity, and to fostering an inclusive and diverse workplace culture where everyone can perform at their best, regardless of background. Gender balance is a priority for us, and we made a public commitment that 35% of leadership positions would be held by women by 2020, and 40% by 2025. As of the end of June 2020, 39% of our leadership positions were held by women.

We also have a number of initiatives aimed at strengthening the diversity of our talent as a whole, promoting inclusive leadership and ensuring that our workforce reflects the global markets where we operate.

We build employee advocacy through active Employee Resource Groups (ERGs), such as AHEAD (African Heritage Employees at Diageo) and Conectados (Diageo employees championing Latin culture) in the US, REACH (Race, Ethnicity and Cultural Heritage) in the UK and the international Rainbow Network. These groups help ensure we respect and value contributions from our minority communities and build alliances to champion change and inclusion. For the last two years we have supported a global INC. week,

week-longseries of employee-led events, panels, workshops and more, designed to help accelerate an inclusive culture.

As part of our leading work to create a fully inclusive and diverse workforce, we launched an ambitious new Family Leave policy applicable to all employees across the business from 1 July 2019. The global policy offers women in all markets a minimum of 26 weeks of fully-paid maternity leave, and men in all markets a minimum of four weeks of fully-paid paternity leave. In some markets, we offer 26 weeks of fully-paid paternity leave - these include North America, Thailand, the Philippines, Singapore, UK, Spain, Netherlands, Ireland, Italy, Russia, Colombia, Venezuela and Australia.

We look for the same commitment from external partners. For example, our 'Free the Bid' initiative, launched in 2018, requires all our marketing agencies to propose at least one female director as part of any creative team. Externally, we promote inclusivity as

a principle, by sponsoring Pride, for example, and other local and international initiatives to empower under-represented groups. Our brands are also prominent in promoting a positive message on inclusion and diversity more broadly, for example, iconic brands including Guinness and Smirnoff have actively promoted inclusivity and equality in their advertising this year. We are also a signatory of Business in the Community's Race at Work Charter, an initiative designed to improve outcomes for ethnic minority employees in the UK and which provides practical help to tackle racial barriers in the workplace.

We have a number of diversity targets which we track and report against regularly; these targets are incorporated into the annual goals of relevant employees. We also keep track of our employees' experience of diversity through our annual Your Voice survey.

Disclosure		Our response

405-01	Diversity of governance bodies	Women comprise 39% of top leadership roles across the company1, 38% of our Executive Committee and
	and employees	50% of our Board.
		Further employee profile information by gender is included in the Our people section of the Annual Report,
		page 27.
		The global nature of our business means that we are ideally placed to leverage diversity in leadership, and
		we estimate that 90% of our senior leaders come from the market in which they work. We strive to cultivate
		a diverse leadership group both in terms of nationality and culture, with breadth and depth of experience
		across our global operations. Our leadership and talent programmes are structured to promote a balanced
		intake of people across a wide spectrum of markets, and this is reflected in the vibrant mix of 102 different
		nationalities at Diageo.
		Omissions: employee profile information by age and specific group.
		1. Top leadership positions in Diageo below our Executive Committee.

405-02 Ratio of basic salary and remuneration of women to men

Given the complexity of our operations, we do not currently collect this data at a global level. In 2017, the UK government introduced legislation on gender pay gap reporting, and in November 2019 we published our latest detailed gender pay analysis covering our UK businesses. The headline figure was a mean pay gap of -7.5% (i.e. on average women earned 7.5% more than men).

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

NON-DISCRIMINATION

103-02

Our management approach to non-discrimination

103-03

Evaluation of the management approach

All our employees have the right to expect that their basic human identity and dignity will be fully respected in the workplace, and we reject any form of discrimination. In all aspects of employment, we treat employees justly, and according to their abilities to meet the requirements of their role. We will not discriminate based on factors such as race, religion, colour, ethnicity, national origin, disability, sexual orientation, gender, gender identity, gender expression or marital status.

We are committed to providing a harassment-free environment that promotes openness, teamwork and trust. We will not tolerate employees being subject to harassment, bullying or abuse whether physical, sexual, racial, psychological, verbal, or in any other form. We have introduced an element of human resources expertise to our triage process on issues of this nature.

In 2019 we rolled out our Dignity at Work training in Europe, and this year we completed our full global roll out. The e-learning module is available in 22 languages, and has been adapted in line with local legislation and cultures.

Through our Partnering with Suppliers Standard, we expect our suppliers to treat employees fairly and not discriminate (in any aspect of employment) on factors such as race, gender, colour, caste, religion, ethnicity, sexual orientation, disability, age, marital status, health, pregnancy, union membership, political affiliation, or national origin. This is a contractual requirement. For more details see our Human Rights Global Policy.

Employees and everyone we work with are entitled to human rights without discrimination.

We evaluate this through internal review and in response to feedback received through external formal processes. Our evaluation includes input from SpeakUp data and from other engagement mechanisms.

This year we conducted anti-discrimination and harassment training in a number of locations around the world, including all of Europe, the US and India, where it is legally required.

For more details, see our Human Rights Global Policy.

Disclosure		Our response

406-01	Incidents of discrimination and	Operations
	corrective actions taken	A key issue for all companies over the past three years has been the increase in awareness of discrimination
		and harassment in the workplace. We have appropriate measures in place to monitor and manage any
		allegations, and we raise awareness amongst our employees through various function-wide and local
		programmes. In 2019 we rolled out our Dignity at Work training in Europe, and this year we completed our
		full global roll out. The e-learning module is available in 22 languages, and has been adapted in line with
		local legislation and cultures.
		Suppliers
		Our review of all high-risk supplier audits found 15 issues of non-compliance related to the category
		of discrimination. Eight issues have been identified relating to no discrimination policy in place, two relating
		to discriminatory systems in hiring practices, two relating to gender discrimination in recruitment, one
		relating to a lack of sexual harassment committee and two relating to the discrimination of agency workers
		on issues such as provision of personal protective equipment.
		At the time of writing, three of the issues of non-compliance have been verified as closed, and we are
		following up with suppliers as part of their corrective action plans to ensure the other issues are resolved
		as well.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

103-02

Our management approach to freedom of association

103-03

Evaluation of the management approach

and collective bargaining

We have a strong commitment to industrial dialogue, supporting

We use internal reviews and our supplier assessment process

the right of employees to join or not join a trade union, as outlined

to evaluate our approach. Reviews include input from trade

in our Human Rights Global Policy. We also expect this of our

unions and any feedback we receive through SpeakUp or

suppliers, as outlined in our Partnering with Suppliers Standard.

other engagement mechanisms.

This is a contractual requirement.

For more details, see our Human Rights Global Policy.

In 2020, 39.6% of our employees were covered by collective

bargaining agreements. We aim to maintain regular, open dialogue

with unions over issues of common interest. We also believe in the

same principles for our suppliers; for more details see the Human

Rights and Core Labour Standards section of our Partnering with

Suppliers Standard.

Disclosure

Our response

407-01	Operations and suppliers in which
	the right to freedom of association
	and collective bargaining may be
	at risk

Operations

We are not aware of any operations that have violated, or are at significant risk of violating, people's rights to exercise freedom of association and collective bargaining. We will investigate allegations as and when they come up, and will take appropriate remedial action, involving relevant local agencies as appropriate.

Suppliers

Our review of all high-risk supplier audits found 110 issues of non-compliance related to the category of freedom of association and collective bargaining. 12 issues relate to the lack of a formal policy; nine to issues concerning collective bargaining agreements; 12 to the effectiveness of the representation body for the workers; 12 to a lack of grievance procedure; 59 to the lack of a worker committee; three to trade unions; and three to the attitude of the employer towards representation bodies. At the time of writing, 23 of the issues of non-compliance have been verified as closed, and we are following up with suppliers as part of their corrective action plans to ensure the other issues are resolved as well.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

CHILD LABOUR

103-02	Our management approach to child labour	103-03	Evaluation of the management approach
	We act in accordance with the United Nations Guiding Principles		Operations
	on Business and Human Rights. Our Human Rights Global Policy		Our due diligence approach focuses on child labour, which
	is informed by the Children's Rights			is one of the areas that our human rights impact assessments
	and Business Principles. We do
	not permit exploitation of children by our employees, or by our		robustly investigate.
	suppliers or business partners. We will not employ anyone under		We have reviewed higher-risk areas of our supply network and are
	the age of 16. Employees under the age of 18 will not perform any
		not aware of any operations that have significant risks concerning
	hazardous work. We respect all relevant local laws regarding
		issues related to child labour. We will investigate allegations as and
	voluntary employment and minimum age for employment.
		when they come up, and take remedial action, involving relevant

	We have identified child labour as a potential risk within our		local agencies as appropriate. We have developed a child
	agricultural supply chains, in Africa in particular. We therefore		protection toolkit as described in 103-02.
	developed a child protection toolkit which we are implementing		Our human rights steering committee is accountable for reviewing
	in all markets where we source from smallholder farmers. This will
		this activity.
	help our own people who visit farms build their awareness of the
		Suppliers
	risks to children's safety, including what activities are unacceptable
	and pose a risk to their development.		Our child protection toolkit increases awareness of the risks faced
	We will build similar awareness with farming communities		by children on family farms and supports greater protection.
		We will continue to assess the risk through our own farm visits
	through our training programme, and monitor standards during
		and additional reviews.
	visits to farmers. We will carry out further investigations to
		We have not identified any risk of the worst forms of child labour,
	evaluate ongoing risk, the level of awareness amongst our teams
	and the farming communities, and the effectiveness of our child		through our assessments or within our activities. The worst
	protection activity.		forms of child labour are defined by the International Labour
				Organization's Worst Forms of Child Labour Convention, 1999
				(No.182, Article 3).

Disclosure		Our response

408-01 Operations and suppliers at significant risk for incidents of child labour

Operations

We have reviewed higher-risk areas of our supply network, including agricultural supply chains in Africa, Mexico, Guatemala, Turkey and Brazil, and are not aware of any operations that have significant risks concerning issues related to child labour. We will investigate allegations as and when they occur and take appropriate remedial action, involving relevant local agencies as appropriate. We have developed a child protection toolkit for both farming supply networks and the Diageo employees who are involved with them.

Suppliers

Our review of all high-risk supplier audits raised 66 issues of non-compliance under the category of children and young workers. 56 issues relate to the lack of a formal policy at the supplier's facility in relation to child labour or not having records in place to verify workers' age, nine to no child labour remediation programme and one to a violation of the minimum age of employment. At the time of writing, 12 issues of non-compliance have been verified as closed and we are following up with the suppliers as part of their corrective action plans to ensure the other issues are resolved as well.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

FORCED OR COMPULSORY LABOUR

103-02

Our management approach to forced or compulsory labour

103-03

Evaluation of the management approach

Through our human rights impact assessments (HRIAs), we have reviewed higher-risk areas of our value chain network, including agricultural supply chains in Africa, Mexico, Guatemala, Turkey, the UK and Brazil, and are not aware of any operations that have significant risks concerning issues related to forced or compulsory labour.

If any allegations are reported, we will investigate and take appropriate remedial action, involving relevant local agencies as appropriate.

Further details are included in our submission in the UK under the Modern Slavery Act.

Each of our HRIAs results in an action plan. We review progress against these plans through our routine business processes.

Disclosure

Our response

409-01 Operations and suppliers at significant risk for incidents of forced or compulsory labour

Our due diligence approach focuses on the risk of forced and compulsory labour, which is one of the areas that is robustly investigated by our human rights impact assessments.

Operations

We are not aware of any operations that have significant risks concerning issues related to forced or compulsory labour. We will investigate allegations as and when they occur, and take appropriate remedial action, involving relevant local agencies as appropriate.

Suppliers

Our review of all high-risk supplier audits raised 21 issues of non-compliance related to the SMETA audit section 'freely chosen employment'. 17 of these issues relate to the lack of a formal policy at the supplier's facility; two relate to workers subject to disciplinary hearings for refusing to work overtime; one relating to wage deductions for staying in employment; and one relating to excessive probation periods.

We have followed up with the relevant suppliers with corrective action plans. At the time of writing, five of these issues of non-compliance have been verified as closed.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

SECURITY PRACTICES

103-02

Our management approach to security practices

103-03

Evaluation of the management approach

Our Corporate Security Policy outlines our four pillars of security: people security; physical security (including of our products and assets); investigations; and business continuity and crisis management (BCM). This policy is underpinned by a number of security standards and guidelines - the minimum that every market and site must adhere to.

We operate security programmes at all sites, and every site must have an identified and trained individual responsible for the programme. The level of security at each site is determined by its size and local requirements.

Sites are supported by a central team of security experts who have regional and functional responsibility for security across the four pillars and all Diageo markets. This team runs global training (such as our online people security training), oversees global security communications and awareness, and ensures

Diageo meets all external regulations and requirements.

We take a risk-based approach to security, with a global program to identify and assess risks and produce mitigation plans. We review security risks routinely and communicate with our people around the world to raise awareness.

The central team tracks all markets for adherence to our policy and manages our internal audit process for security and BCM. The team also regularly benchmarks with other multinationals and with governments through membership of and liaison with organisations such as the UK government's Centre for the Protection of National Infrastructure, the US State Department's Overseas Security Advisory Council and the International Security Management Association.

Disclosure

Our response

410-01	Security personnel trained
	in human rights policies
	or procedures

We do not record this data since our security staff contracts vary by market, some being direct employees, and others third-party contractors. However, it is a contractual requirement for third parties to carry out training on our Code of Business Conduct.

RIGHTS OF INDIGENOUS PEOPLES

Disclosure		Our response

411-01	Incidents of violations involving	We do not believe this is material to our business. We do, however, consider land rights in our human rights
	rights of indigenous peoples	impact assessments.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

HUMAN RIGHTS ASSESSMENT

103-02	Our management approach to human rights assessment	103-03	Evaluation of the management approach
	For our overall approach to human rights, see our Human Rights		Each of our HRIAs results in an action plan. We review progress
	Global Policy, which includes the requirement that	all our suppliers		against these plans through our routine business processes.
	assess human	rights within their organisations. All our business
	units and operations (100%) are required to carry out a risk
	assessment, which includes human rights as part of the
	review process.
	We have been signatories to the UN Guiding Principles on Business
	and Human Rights (UNGP) since 2014 and continue to embed
	human rights throughout our value chain.
	We have a comprehensive human rights impact assessment (HRIA)
	programme, prioritised by risk and based on a global mapping
	process. This programme is our opportunity to reach across our
	whole value chain, from our own operations to our suppliers,
	customers and other partners. Through it, we identify those
	people potentially affected by human rights issues, assess the
	risks and develop mitigation action plans. In 2018, we further
	strengthened this assessment process through our HRIA toolkit.
	The toolkit was the result of significant internal review, and
	provides additional structure to our processes along with
	additional guidance material for markets undergoing the
	HRIA process, ensuring a consistent approach.
	HRIAs are conducted by specialists in human rights alongside our
	own teams, who receive training to support their role. We also
	ensure that members of teams with direct involvement in specific
	areas of human rights risks, such as Procurement, receive training
	to support their role.
	At the beginning of the year we were on track to meet our 2020
	target of conducting HRIAs in all markets by the end of this year.
	As a result of Covid-19 we have extended this target to December
	2021. In 2020, we carried out HRIAs in China, North America
	(United States/Canada), the Middle East (first phase) and Australia,
	bringing our total to 17 since we began the programme in 2015.
	The remaining market assessments will be completed by the end
	of 2021.
	For details of how we assess human rights in our supply chain,
	please see the supplier social assessment indicator, on pages 72-73.

Disclosure		Our response

412-01	Operations that have been
	subject to human rights reviews
	or impact assessments

All our business units and operations (100%) are required to carry out a risk assessment, which includes human rights as part of the review process.

Beyond this, as part of our commitment to act in accordance with the UNGP, we have developed

a comprehensive human rights impact assessment (HRIA). At the beginning of the year we were on track to meet our 2020 target of conducting HRIAs in all markets by the end of this year. As a result of Covid-19 we have extended this target to December 2021. This year, we finalised HRIAs in China, North America (United States/Canada), the Middle East (first phase) and Australia. All markets develop action plans to address specific salient risks. To date, we have conducted HRIAs in Kenya, Ghana, Mexico, Brazil, Thailand, Turkey, Uganda, Colombia, UK, Guatemala, India (first phase), Tanzania, Nigeria, South Africa, China, North America (United States/Canada), the Middle East (first phase) and Australia.

Details of our approach are included in our Annual Report, page 36 and within our submission in the UK under the Modern Slavery Act.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

HUMAN RIGHTS ASSESSMENT continued

Disclosure		Our response

412-02	Employee training on human rights	All middle-managers and above are required to complete an Annual Certification of Compliance, which
	policies or procedures	certifies their compliance with, and understanding of, our Code, which includes human rights. Within the
		certification, those who mark the Human Rights Global Policy as most important are required to complete
		a certification of their knowledge
		and understanding of some of the key points of the policy. We have
		implemented a Brand Promoters Standard and accompanying training aimed at protecting brand

		promotion teams from harassment.
		In 2019, we refreshed our training for people in our Procurement and Sustainability functions who have
		direct responsibility for our human rights, responsible sourcing or supply governance programmes.
		Working with an external partner, we created a series of interactive webinars and workshop sessions,
		designed to educate employees on the principles of human rights - with a specific emphasis on modern
		slavery - and to empower staff to recognise the signs of potential forced labour, and to challenge and
		intervene. The training was rolled out to our Procurement teams and a selection of key stakeholder and
		influencing functions within Diageo. This year we rolled out a new responsible sourcing toolkit with
		additional training; we plan to roll out a similar toolkit to suppliers in the future.
		More broadly, through our human rights programme, we are building awareness among our employees of
		human rights risks in our value chain and engaging them on the issues through the human rights assessment
		process, which considers business activities from sourcing raw materials to operations, right the way through
		to sales. We have created a video sharing our approach to human rights, and the role our employees play.
		We also train our Procurement teams on our responsible sourcing programme and our Partnering with
		Suppliers Standard, which includes guidance on how we manage human rights and
		labour standard risks

		within our supply chain. We also train employees specifically at our supply sites on security standards and
		awareness to ensure the integrity of our supply chain, and reduce the risk of human trafficking.
		Omissions: total hours of training. Since training sessions on our Code and policies vary in duration, it is not
		possible to report accurately the number of hours spent on specific subjects during training sessions.

412-03	Significant investment agreements	100% of suppliers are contractually obliged to abide by the standards set out in our Partnering with Suppliers
	and contracts that include human	Standard, which includes specific requirements with respect to Human Rights, either through specific
	rights clauses or that underwent	contract clauses or, if not bound by a contract, by the standard inclusion of the requirement to meet our
	human rights screening	Partnering with Suppliers Standard in our standard purchase order terms and conditions.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

LOCAL COMMUNITIES

103-02	Our management approach to local communities	103-03	Evaluation of the management
						approach
	We aim to strengthen our communities by providing engaging, safe and diverse places to		Local community engagement and
	work; by building sustainable and inclusive supply chains; and by delivering programmes		programmes are reviewed by the
	that empower communities and the individuals within them, enabling them to grow.		relevant market Corporate Relations
	We invested £18.9 million, or 1.0% of operating profit, in these programmes this year.		team as well as at group level. We
	As part of this approach we are committed to promoting human rights throughout our		gather data on the impact of our
		programmes and assess how we can
	value chain. We also invest in promoting positive drinking, building thriving communities,
		improve them. Where appropriate, we
	and reducing our environmental impact.
					also assess these programmes through
	Our external targets for 2020 and 2025 address these areas, and are designed to create
		more detailed research. For example,
	shared value while contributing to the UN Sustainable Development Goals, as described		our research into local farming activity
	in the Annual Report on pages 32-35. This has led to the provision of safe water and sanitation		in Ethiopia led us to strengthen the
	in water-stressed areas for more than 250,000 people this year; the development of skills		controls on the quality of seeds
	programmes focusing on the hospitality sector which have trained around 140,000 young		provided to farmers and increase the
	people since 2008; and women's empowerment programmes which have empowered		emphasis on women's empowerment
	around 435,000 women since 2012. Our local farming programme also aims to build skills for		within our smallholder
	farmers, improve their livelihoods and support rural economic development both directly and		farming networks.
	indirectly through the trade created.
	We are currently developing our strategy to address our most material issues and support
	sustainable growth over the critical decade until 2030. While the launch of our strategy and
	the targets that will drive its delivery have been delayed by Covid-19 until later this fiscal year,
	we are clear on our direction of travel and our overall goals. These include championing
	inclusion and diversity, within our business and in society, and making sure our programmes
	and our business as a whole contribute to building inclusive, thriving communities that work
	for everyone, wherever we live, work, source and sell.
	We believe one of the best ways we can contribute to communities is by engaging others
	to become advocates for causes important to them and their stakeholders. Some of our
	strongest advocacy work includes arguing for industry-wide standards to encourage
	moderation and tackle misuse. We are also passionate advocates in areas including anti-
	corruption, the empowerment of women and other under-represented groups, and water
	stewardship. For more details see our website.

Disclosure			Our response

413-01	Operations with local community	We carry out detailed research on key community programmes to understand their full impact. For example,
	engagement, impact assessments	we have assessed farming activity with smallholders in Ethiopia, Cameroon and Uganda. These assessments
	and development programmes	help us improve our approach through activities such as improving seed quality and increasing our
			engagement with farmer organisations or intermediaries. Similar studies have assessed the impact of our
			Learning for Life skills development programmes in Latin America and Europe.
			These programmes, which are underpinned by our commitment to human rights, focus on the core
			inclusive communities element of our Pioneer grain-to-glass strategic priority, which are:
			• Empowering women and other under-represented groups
			•	Promoting entrepreneurship, employability and skills
			•	Building sustainable supply chains
			•	Improving access to clean water, sanitation and hygiene.
			These are described in more detail in the Annual Report on pages 28-37.

413-02	Operations with significant actual	The social impacts of our operations and community investment are discussed in the Annual Report on
	and potential negative impacts	pages 28-37.
	on local communities	Omissions: we discuss significant actual and potential negative impacts on local communities at a global

level but not by specific location.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

SUPPLIER SOCIAL ASSESSMENT

103-02	Our management approach to supplier social assessment	103-03	Evaluation of the
			management approach

Our Partnering with Suppliers Standard (PwS) sets out the minimum social, ethical and environmental standards we require suppliers to follow as part of their contract with us.

Within this PwS we set out our commitment to acting in accordance with the UN Guiding Principles on Business and Human Rights (UNGP), and with the international standards set out by the eight core International Labour Organization (ILO) conventions and recommendations. We also expect our suppliers

to promote the principles of our PwS throughout their own supply chain, and to have appropriate processes in place to verify compliance.

Our Responsible Sourcing programme is a comprehensive but flexible process for identifying, assessing and managing social and ethical impacts in our supply chain. While it focuses predominantly on tier one suppliers, we also have a programme for tier two suppliers of our point of sales (POS) materials, reflecting the inherent risk of procuring POS through marketing agencies; we intend to increase the number of these tier two suppliers who are codified with our core Responsible Sourcing programme in 2021.

Our Responsible Sourcing programme consists of: an initial screening; a pre-qualification questionnaire which covers social and ethical risks including human rights; a qualification process where suppliers assessed as a potential risk are required to register with SEDEX and complete a SEDEX self-assessment questionnaire; and independent audits of suppliers who represent a potential high risk. SEDEX is a not-for-profit organisation that enables suppliers to share assessments and audits of ethical and responsible practices with their customers. This means suppliers only have to go through one assessment process for many customers.

Audits follow the SEDEX Members Ethical Trade Audit (SMETA) Four Pillar Audit Protocol, or equivalent, covering health and safety, labour standards, environment and business ethics.

If we identify any issues of non-compliance in an audit, a corrective action plan report (CAPR) is raised with the supplier in question in order to resolve any issues.

We have worked with our peers under the umbrella of AIM-PROGRESS to develop a supplier business toolkit to share best practice and provide practical guidance on how to improve productivity, quality and workforce management by ensuring good working conditions and ethical standards. We currently chair a new Africa Hub under the umbrella of AIM-Progress; this year we delivered a webinar from Partner Africa in which they shared insights into the salient labour risks taken from an analysis of the audits they have completed for Diageo and others across Africa.

This year we rolled out a new Buyer Responsible Sourcing Toolkit; we plan to roll out a similar toolkit to suppliers in the future.

Human rights in our supply chain

We have been signatories to the UNGP since 2014 and continue to embed human rights throughout our value chain. We do this through our comprehensive human rights impact assessment (HRIA) programme, prioritised by risk and based on a global mapping process. This programme is our opportunity to reach beyond tier one suppliers, to primary producers such as farmers. At the beginning of the year we were on track to meet our 2020 target of conducting HRIAs in all markets by the end of this year. As a result

of Covid-19 we have extended this target to December 2021. In 2020, we carried out HRIAs in China, North America, the Middle East (first phase) and Australia, bringing our total to 17 since 2015.

HRIAs are conducted by specialists in human rights, alongside our own teams, who receive training to support their role.

In line with the UNGP, we have identified issues that are particularly salient to our business: labour rights, including the risk of child labour, especially in agricultural supply networks; treatment of contract labour; and sexual harassment in the hospitality sector. These issues were identified as external risk factors in the places where we operate, rather than through reported incidents in our own value chain. Because human rights issues such as these are often systemic, we will also work with others to address them at scale.

We have developed a child protection programme for our work with smallholder farmers, where we have trained key functions and business partners in our local sourcing programme in seven countries in Africa to prevent child labour.

We are developing an awareness programme and measures to protect workers, including seasonal contract workers.

We have also developed initiatives aimed at preventing sexual harassment in the hospitality sector, including a Global Brand Promoter Standard, which establishes principles and guidelines to protect brand promoters' rights.

We assess suppliers for their impacts on society, and the results are reviewed by our Procurement teams who consider any issues of non-compliance with our policies. This also includes performance on the SEDEX system, as described in 103-02, left.

While specific issues of non-compliance are acted on as part of the audit process, these reviews identify trends that allow us to revise standards and guidance. If specific suppliers consistently fail to respond to improvement plans, as identified as part of their performance evaluation, we reserve the right to stop working with them.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

SUPPLIER SOCIAL ASSESSMENT continued

Disclosure

Our response

414-01	New suppliers that were screened
	using social criteria

All suppliers of Procurement-managed spend go through the screening process described in 103-02 on page 53. This includes areas such as labour standards, human rights including child labour, and legal compliance on issues such as pay.

414-02	Negative social impacts in the
	supply chain and actions taken

All suppliers determined to be a potential risk are required to register with SEDEX, and to complete the SEDEX self-assessment questionnaire. To date, 1,417 of the company's supplier sites assessed as a potential risk are registered with SEDEX, an increase from 1,372 last year. Of these, 1,261 have completed the SEDEX self-assessment questionnaire which was superseded by a new version in February 2020: 551 sites have completed the new questionnaire. In addition, 202 supplier sites' SEDEX membership has lapsed, meaning we were unable to view their site data. We ask these suppliers to renew their membership, and we will disconnect on SEDEX from those with whom we no longer have a commercial relationship.

Suppliers who represent a potential high risk are flagged, so they can be independently audited against the SEDEX Members Ethical Trade Audit (SMETA) Four Pillar Audit Protocol or equivalent. We have 412

such suppliers, of whom 336 (82%) were independently audited during the last three years (audits are valid for three years); 263 audits were commissioned by Diageo, and 73 accessed through SEDEX and AIM-PROGRESS.

A total of 2,379 issues of non-compliance have been raised through these audits, with 44% relating to health, safety, and hygiene issues; 10% relating to wages and benefits, 12% relating to management systems, 9% relating to working hours; and the remaining 25% to other categories. We have followed up with the relevant suppliers with corrective action plans and are working together to resolve them. Where required, we are arranging follow-up audits to verify the issues have been closed.

Merchandising materials remain one of our highest-risk categories, because they are frequently made in higher-risk countries, and we often buy them through intermediaries and therefore may not know where they were produced. We continue to work with our key merchandising suppliers to develop their capability and processes to drive auditing and assurance further down their supply chains. To date, our key merchandising suppliers have audited over 326 factories in our supply chain.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

PUBLIC POLICY

103-02

Our management approach to public policy

103-03

Evaluation of the management approach

As part of doing business, Diageo engages with governments, public interest groups, industry associations and a broad range of other similar bodies around the world. In doing so, our aim is always to comply with all laws governing political activity.

Our Corporate Relations team manages our engagement in public policy, assessing risk and aiming to support the delivery of market and business strategy, including, for example, engagement on promoting positive drinking, or government/regulatory or fiscal policy. For more details on our approach to public policy, see our Code of Business Conduct.

The team also assesses risks and opportunities against the Corporate Relations strategy at market and global levels. The risk management focus includes public policy/engagement risks, which are also reviewed by the Executive Committee, the Audit Committee and the Audit and Risk Committee as part of overall corporate risk management activity.

Recent reviews have led to an increased emphasis on global trade tensions, indirect tax policy and various availability regulations, and to a review of our Positive Drinking strategy. Our position on specific issues related to alcohol policy is described on our website.

We are well placed to manage risks in the external policy environment, particularly those relating to ongoing international trade volatility and alcohol-related policies and regulations arising from the Covid-19 pandemic.

We have improved our analysis and evidence base, and enhanced our public policy campaigning and our network of stakeholders.

We have strengthened capability in navigating marketing and availability regulations, including e-commerce , and continue to work closely with industry and other stakeholders on public policy issues to support government priorities, the long-term sustainability of the sector and encourage responsible drinking choices for those that choose to drink.

We are at the forefront of industry initiatives in promoting positive drinking, for example adapting to encourage responsible drinking at home during the Covid-19 crisis.

Disclosure		Our response

415-01	Political contributions	Diageo has not given any money for political purposes in the UK, has made no donations to EU political
		organisations and has incurred no EU political expenditure during the year. We made contributions to
		non-EU political parties totalling £380,000 during the fiscal year in North America, where it is common
		practice. Contributions of approximately £380,000 were made to US Federal and State candidates and
		committees (consistent with applicable laws). No particular political persuasion was supported and
		contributions were made with the aim of promoting a better understanding of our business and our
		views on commercial matters, as well as a generally improved business environment.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

CUSTOMER HEALTH AND SAFETY

103-02

Our management approach to customer health and safety

103-03

Evaluation of the management approach

We aim to design and make products that are always safe for consumers to drink, and that meet their expectations in terms of taste, consistency and presentation. We have a programme of certification for our sites which includes:

Site internal assessment to Diageo standards
Market independent assurance of adherence to standards
ISO 9001 for our production facilities
FSSC22000 at our brewing and packaging locations.

At the date of this report, 76% of our sites were certified to ISO 9001 and 63% to FSSC22000. The number of certifications is growing, but it takes time to bring acquisitions in line with these standards, and we have made a number of significant acquisitions in the last few years. Moreover, our initial focus for acquisitions is to ensure compliance with Diageo standards.

For more details, see our Quality Global Policy and the Diageo Marketing Code.

We review customer safety at a number of levels across the organisation depending on severity.

Management's Audit and Risk Committee reviews our key risks that relate to customer health and safety, counterfeit and contamination (with a particular focus on food fraud).

The Excellence in Supply Chain meeting, chaired by the President, Global Supply and Procurement, monitors our top KPIs for quality - total pack defects and distribution defects.

Market-level teams meet monthly with the market head of governance to review these KPIs along with other global and local quality KPIs as part of a broader environment, health, safety and quality agenda, and escalate any issues to the market head of supply chain.

Disclosure		Our response

416-01	Assessment of the health	Our products are mostly low risk in that they are unlikely to be a source of food poisoning and are stable at
	and safety impacts of product	ambient temperatures. All products are subject to liquid testing and inspection for defects (these include
	and service categories	critical defects which relate to product safety and legislative requirements). This year we saw a 62% increase
		in reported critical packaging defects. Much of this increase was due to improved reporting, especially from
		Africa, as we reported last year. The improvement plan that we launched last year has delivered significant
		improvement in the second half of this year, with a much improved performance since March 2020. We have
		not seen an increase in complaints, with the number of complaints in the past year broadly in line with those
		recorded last year.
		We have continued to review and update our quality and global risk management standards and these have
		been shared with all production sites.

416-02	Incidents of non-compliance	To the best of our knowledge, we have had no significant incidents of non-compliance with regulations
	concerning the health and safety	resulting in a fine, a penalty or a warning.
	impacts of products and services

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

MARKETING AND LABELLING

103-02

Our management approach to marketing and labelling

103-03

Evaluation of the management approach

We take very seriously our duty to develop, produce, market and sell our brands responsibly, and all our marketing is governed by our Diageo Marketing Code, Digital Code, Responsible Research Global Standard and Data Protection Global Policy. Our Diageo Consumer Information Standard, provides mandatory minimum standards for the information that must be included on labels and packaging on all Diageo-owned brands in all geographies (where legally permitted). Labels and packaging must include alcohol content and nutrition information per serve, alcohol content by volume (ABV), at least one and up to three responsible drinking symbols, a reference to our global responsible drinking website, DRINKiQ.com, a list of allergens, and recycling and sustainability symbols. Together with companies that form the International Alliance for Responsible Drinking we have committed to adding an age-restriction symbol or equivalent words on all our alcohol brand labels, including alcohol-free extensions of alcohol brands. We will start to roll this out immediately, where legally permissible, with compliance across all markets by 2024.

For more details about labelling and information, see the Diageo Marketing Code, Quality Global Policy and the Diageo Consumer Information Standard.

We have a cross-functional review process in place for all marketing communications that ensures compliance with the Diageo Marketing Code. Where communications are in breach of the Code, they are revised appropriately. Our Marketing, Legal, Brand Technical and Regulatory functions review packaging and labelling of innovation and renovation products to ensure they comply with the Diageo Consumer Information Standard.

We review the Diageo Marketing Code every two years to ensure it remains best-in-class in terms of rigorous standards and that it is consistent with evolving technologies. All changes are signed off by the Chief Marketing Officer, General Counsel and Director of Corporate Relations.

Our market-based teams, including general managers, review the efficacy of marketing communications, as do our global brand teams and global Marketing function.

By continually assessing our communications, we gain feedback that helps improve future campaigns.

Disclosure		Our response

417-01	Requirements for product and	Our approach is as follows:
	service information and labelling	• Sourcing of components of the product or service: we do not provide sourcing information for

		•	our ingredients; 0% of our product labels include this information
		Content, particularly with regard to substances that might produce an environmental or
			social impact: legislation requires a statement of alcohol by volume on all our products; 100% of our
		•	products contain this information
		Safe use of the product or service: the Global Beer, Wine and Spirits Producers' Commitments
			(see our website) required all our products to carry at least one and up to three responsible drinking
			symbols	by 2017.	We have been working towards this in all markets. The majority of our products are
			compliant, and we continue to work towards full compliance. This and all other requirements of the
			Diageo Consumer Information Standard (see above) are implemented on new brand innovations
			and when we renovate existing brands.	Together with companies that form the International Alliance for
			Responsible Drinking we have committed to adding an age-restriction symbol or equivalent words on all
			our alcohol brand labels, including alcohol-free extensions of alcohol brands. We will start to roll this out
		•	immediately, where legally permissible, with compliance across all markets by 2024.
		Disposal of the product and environmental/social impacts: we mandate the Mobius loop
			(or equivalent) on all packaging and point of sale materials as part of our Diageo Consumer Information

			Standard; all of our products comply with this requirement, with the exception of USL which does not use

			the Mobius loop on its product labelling at present.

417-02	Incidents of non-compliance	To the best of our knowledge, we have had no significant incidents of non-compliance with regulations
	concerning product and service	resulting in a fine, a penalty or a warning.
	information and labelling

417-03	Incidents of non-compliance	This year no breaches were upheld by key industry bodies about Diageo's advertising. For more details, and
	concerning marketing	for industry complaints as a whole, see the Annual Report on page 25.
	communications

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

CUSTOMER PRIVACY

103-02

Our management approach to customer privacy

103-03

Evaluation of the management approach

Diageo holds personal data about employees, customers and suppliers, consumers and other individuals, including prospective and former employees. We have a data privacy programme led by our Global Data Privacy Officer, designed to protect all such personal information that we handle in our business activities. Our Code of Business Conduct, Data Privacy Global Policy and Digital Code set out how we handle data in line with data protection laws.

We have mandatory global training on data privacy for all employees and global data breach response processes.

Our Compliance team reviews the adoption and delivery of our Code of Business Conduct, including completion of training on the Code, and monitoring of activity including data privacy in all markets and functions.

Our group Data Privacy Officer, supported by a Privacy team, oversees internal accountability and legal compliance across Diageo and reports on key aspects to the Audit Committee.

Our global Computer Security Incident team is trained to investigate and contain any personal data security incident and, together with the Privacy team, ensures any breach is reported within the timeframe required by local law.

Issues may also be raised through our SpeakUp helpline, via line managers, Legal representatives, Human Resources or the Compliance team. Audits and issues are reviewed, with remedial action being instigated as appropriate, including via the Audit and Risk Committee and an Executive oversight committee.

For more information, see our Code of Business Conduct.

Disclosure

Our response

418-01	Substantiated complaints
	concerning breaches of
	customer privacy and losses
	of customer data

In 2018, the introduction of GDPR substantially increased the scope of personal data breaches that are potentially reportable to the relevant EU regulator(s). In some cases organisations may have to report incidents as a routine matter unless there is deemed to be 'no risk'. Individuals are also permitted by law to complain to a relevant EU regulator if they feel their privacy rights have been breached. In either case, the regulator can choose to investigate further and exercise their enforcement powers via a range of sanctions. We follow our internal procedures when we receive any requests by individuals to exercise their rights (e.g. the right to access personal information or to unsubscribe) or receive reports of any personal data incidents. This year, there have been no instances of regulatory action against, or investigation into, Diageo in the EU.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

GRI Index

Topic-specific standards

GRI 400: SOCIAL continued

SOCIOECONOMIC COMPLIANCE

103-02

Our management approach to socioeconomic compliance 103-03

Evaluation of the management approach

Diageo has a sound corporate governance structure and a robust governance, risk and compliance programme, with our Code of Business Conduct at its centre.

We train employees across the company to comply with all standards and policies, and we conduct targeted interventions with managers and senior leaders to create a culture of integrity.

For more details, see our website and the Effective risk management section of the Annual Report, pages 38-41.

Our Business Integrity team monitors and reviews compliance systems, training activity and mechanisms such as the SpeakUp helpline. Our Internal Audit team also undertakes regular audits at market level which include an assessment of compliance.

All audits are reported to the Executive Committee member responsible and to the Chief Executive and Chief Financial Officer. The Executive Committee routinely reviews the outcomes of audits, compliance monitoring of required processes and training, and the details of grievances raised through the SpeakUp helpline. These areas are also reviewed by management's Audit and Risk Committee and by the Audit Committee of the Board.

Reviews have led to further training on our Code of Business Conduct.

Disclosure

Our response

419-01 Non-compliance with laws and regulations in the social and economic area

This year there were no charges to exceptional items in respect of non-compliance with laws and regulations in the social and economic area.

Omission: we do not report fines which the business does not deem to be material. Materiality is defined in the Independent Auditor's Report in the Annual Report, pages 110-118.

How we have met	Fully disclosed as outlined by the GRI	Partially disclosed and missing	Not disclosed	Not considered material
each disclosure	Sustainability Reporting Standards	at least one required indicator		to our business at this time

DIAGEO S&R Performance Addendum to the Annual Report 2020

United Nations Global Compact (UNGC) Index

The following index is structured along the UNGC advanced level reporting criteria. Our annual Communication on Progress is made up of our Annual Report together with this Performance Addendum. This index directs readers to the relevant parts of both documents.

IMPLEMENTING THE 10 PRINCIPLES INTO STRATEGIES AND OPERATIONS

Criterion

Description

Cross reference/direct answer

1Mainstreaming into corporate Our sustainability and responsibility strategy supports the delivery of the 10 principles of the UN Global Compact

functions and business units (the 10 principles), and this year we continued to embed it into corporate functions and business units, including

through our work towards our external targets for 2020 and 2025 and our planning for our new 2030 strategy.

An overview of our strategy can be found on page 6 of this document, with further discussion in the strategic priorities section of our Annual Report 2020, pages 17-29.

Several other sections of our Annual Report reflect the mainstreaming of the 10 principles. These include:

Our Chairman's statement, pages 4-5
Our Chief Executive's statement, pages 8-9
Our principal risks and risk management, and climate-related risks sections, pages 38-43.

Further reporting in this Performance Addendum relating to the 10 principles includes:

Human rights and labour

Our support and respect for the protection of internationally proclaimed human rights, and our processes for ensuring that we are not complicit in human rights abuses, are described in GRI 103-02 to 103-03 and GRI 412, pages 69-70.

Our commitment to upholding the freedom of association and the effective recognition of the right to collective bargaining is described in GRI 103-02 to 103-03 and GRI 407, page 65.

We describe our work to eliminate all forms of forced and compulsory labour in GRI 103-02 to 103-03 and GRI 409, page 67 in this document.

Our work to support the effective abolition of child labour is described in GRI 103-02 to 103-03 and GRI 408, page 66.

Our work to eliminate discrimination and create a fair, inclusive and diverse workplace is described in GRI 103-02 to 103-03 and GRI 405, pages 63-64.

Environment

Our approach to environmental challenges, including the initiatives we undertake to promote greater environmental responsibility and encourage the development and diffusion of environmentally friendly technologies, are described in GRI 103-02 to 103-03 and GRI 301 to 308, pages 34-53.

Anti-corruption

We have an internal Anti-Corruption Global Policy, and its core principles are included in our Code of Business Conduct (our Code). Our work to prevent all forms of corruption, including extortion and bribery, and how we conduct our business transparently, are described in GRI 103-02 to 103-03 and GRI 205, page 32.

2Value chain implementation Our sustainability and responsibility strategy supports the delivery of the 10 principles of the UN Global Compact. It covers our entire value chain, from grain to glass, as described in the Strategic priorities and Doing business the right way from grain to glass sections of our Annual Report, pages 17-29 and 36-37 respectively.

Further reporting in this Performance Addendum relating to value chain implementation of the 10 principles includes:

Human rights and labour

Details of how we implement our Partnering with Suppliers Standard, are described in GRI 103-02 to 103-03 and GRI 414, pages 72-73. In our Partnering with Suppliers Standard we set out the minimum social and ethical standards we require suppliers to follow as part of their contract with us. As part of this, we outline our expectation that all our suppliers act in accordance with the UN Guiding Principles on Business and Human Rights (UNGP) and the international standards set out by the eight core International Labour Organization (ILO) conventions and recommendations.

Environment

We describe our approach to environmental standards in our supply chain and our work on climate change and water supply chain initiatives in GRI 103-02 to 103-03 and GRI 308, pages 52-53.

Anti-corruption

As well as our own measures to prevent all forms of corruption, described throughout GRI 205 in this document, we evaluate suppliers against the risk of bribery and corruption through our Know Your Business Partner (KYBP) assessment, which considers operating risks, market/sector risks and feedback from our internal reviews and assessments. This is described in GRI 103-02 to 103-03 and GRI 205, page 32. For more information, see page 41 of the Annual Report.

DIAGEO S&R Performance Addendum to the Annual Report 2020

United Nations Global Compact (UNGC) Index

ROBUST HUMAN RIGHTS MANAGEMENT POLICIES AND PROCEDURES

Criterion	Description	Cross reference/direct answer

3	Robust commitments, strategies	We committed to act in accordance with the UN Guiding Principles on Business and Human Rights (UNGP)
	or policies in the area of	by 2020. Our Human Rights Global Policy outlines our commitment to respect and embed human rights,
	human rights	as articulated	in the Universal Declaration	of Human Rights, across all our operations and throughout our
		business and value chain. Through appropriate contractual arrangements and our Global Partnering
		with Suppliers standard, we make our suppliers aware of, and expect their compliance with, our human
		rights commitments.
		In our workplaces and the communities in which we operate, we believe a serious commitment to
		respecting human rights is fundamental to our way of doing business. We recognise that we are responsible
		for the impact of our operations on our employees, on all workers in our supply chain, on consumers of our
		products and on the communities in which we operate. Therefore, we have policies and processes in place
		to identify, prevent and mitigate human rights risks, and to provide remedy for any adverse impact we have
		caused or contributed to through our operations.
		This includes a commitment to support the rights of indigenous peoples, migrant workers and the
		communities where we work, including their land rights. We're also committed to supporting rights to water
		and sanitation, delivered through our Water Blueprint, our community water, sanitation and hygiene (WASH)
		programmes, and our Partnering with
		Suppliers Standard.

		We are a signatory to the UN Global Compact and the UN Women's Empowerment Principles.
		Our Human Rights Global Policy is also informed by the International Labour Organization's (ILO)

		Declaration on Fundamental Principles and Rights to Work, the Children's Rights and Business Principles,
		and the UN Global LGBTI Standards of Conduct for Business. By committing to these international
		frameworks, we are dedicated to enriching the workplace. We act with integrity, in compliance with
		local law, and we respect the unique customs and cultures in the communities in which we operate.

4Effective management systems to We have a clear Human Rights Global Policy which sets out our commitment to human rights. We also

integrate human rights principles have a number of other policies and standards that reinforce our human rights principles to our employees,

		suppliers and other stakeholders. We have well-developed management systems, including our global
		framework for compliance training, which mandates that every employee has to complete training about our
		Code and key policies (such as human rights) on joining Diageo. The Annual Certificate of Compliance (ACC)
		is designed to confirm that all mid-level and senior managers fulfil their duties with regard to compliance
		and have read and understood our Code and key global policies. In 2019, following an external review,
		we extended the ACC to include certain non-management roles. Each market has a training plan on our
		key policies, which is delivered through locally organised, risk-based training. This year, we rolled out human
		rights training with a specific focus on modern slavery to our procurement teams and a selection of key roles
		within the business. Employees worldwide have received Dignity at Work training, which is now available
		through an e-learning module in 22 languages.
		We have a comprehensive human rights impact assessment (HRIA) approach, which is progressively
		assessing the human rights risks across our whole value chain within all of our markets. Assessments are
		prioritised by risk, initially at an international level and then within the local market context. For more
		information, see page 36 of our Annual Report, and GRI 103-02 to 103-03 and GRI 405 to 414, pages 63-73.

5	Effective monitoring and	We have established a human rights governance structure to embed the due diligence and integration of
	evaluation mechanisms of	human rights as business as usual across our operations. We aim to proactively manage and monitor any
	human rights integration	infringement of human rights on an ongoing basis and take appropriate remedial action as and when required.

Our HRIA programme is carried out by external human rights specialists alongside our own teams. It covers our own operations and those of our suppliers, including primary producers such as farmers, and our consumer markets. We consider all aspects of human rights through the assessment programme, both through focused assessments and through our routine engagement with key areas of our value chain such as agriculture. We also engage with the different stakeholders in our value chain, identifying those potentially affected by human rights risks. In 2019, we further strengthened this assessment process through our HRIA toolkit, which was developed as a result of a significant internal review. It provides additional structure to our processes, and guidance material for markets undergoing the assessment process. This aims to ensure

a consistent approach for each HRIA.

The programme supports markets through a systematic review of their businesses to identify and assess potential human rights impacts, and covers all aspects of our value chain, from raw materials to consumption. Trends identified to date are communicated along with relevant mitigation activity.

In 2020 we continued to roll out our HRIA programme, which was initially trialled in 2016. At the beginning of the year we were on track to meet our 2020 target of conducting HRIAs in all markets by the end of this year. But, as a result of Covid-19, we were unable to complete all the planned assessments, and have therefore extended this target to December 2021. In 2020, we carried out HRIAs in China, North America (United States/Canada), the Middle East (first phase) and China, bringing our total to 17.

DIAGEO S&R Performance Addendum to the Annual Report 2020

United Nations Global Compact (UNGC) Index

ROBUST LABOUR MANAGEMENT POLICIES AND PROCEDURES

Criterion	Description	Cross reference/direct answer

6	Robust commitments, strategies	Our Code of Business Conduct, which was refreshed this year, sets the standard for what is expected of
	or policies in the area of labour			well as of third parties who are contractually required to adhere to its terms.
	everyone working at Diageo, as
		Other policies, such as our Global Health, Safety and Wellbeing Policy and our Human Rights Global Policy,
		flow from its principles.
		Our overall commitment to our people is outlined in the Champion inclusion and diversity and Our people
		sections of the Annual Report, pages 26-27, which discuss how we manage issues such as diversity, health
		and safety, and engagement. The Doing business the right way from grain to glass section on pages 36-37
		explains how we manage labour issues in our supply chain to the same standards.

7	Effective management systems	Our risk and compliance programme, referenced above, also covers labour issues. For more information
	to integrate the labour principles	on how we manage issues such as diversity, health and safety, or engagement, see the Champion inclusion
		and diversity and Our people sections of the Annual Report, pages 26-27.
		Additional details can also be found in GRI 103-02 to 103-03 and GRI 405 to 409, pages 63-67.

8	Effective monitoring and	Our risk and compliance programme, referenced above, also applies to labour issues. Reports through
	evaluation mechanisms of	our SpeakUp website and telephone line help us monitor these issues, as outlined in the Annual Report,
	labour principles integration	page	41.
		We have set targets for aspects of labour implementation, notably safety, diversity and employee engagement.
		These are key performance indicators for our business, as set out on pages 30-33 of the Annual Report.
		Each is routinely monitored, and reviewed at site, market and global level, with programmes in place to
		improve performance where necessary in order to deliver our 2020 targets.
		Additional details can also be found in GRI 103-02 to 103-03 and GRI 405 to 409, pages 63-67.

ROBUST ENVIRONMENTAL MANAGEMENT POLICIES AND PROCEDURES
Criterion	Description	Cross reference/direct answer

9Robust commitments, strategies or policies in the area of environmental stewardship

Our Environment Global Policy outlines our commitment to reducing our impact on the environment. We have a series of environment targets that we aimed to achieve by 2020, as well as longer-term commitments on the use of plastics and a commitment to using 100% renewable electricity by 2030.

For more information, see the following sections of the Annual Report, Pioneer grain-to-glass sustainability, Doing business the right way from grain to glass and Climate-related risk, pages 28-29,36-37 and 42-43, and GRI 103-02 to 103-03 and GRI 301 to 308, pages 34-53.

10	Effective management	Our robust environmental management system helps us with our targets for water efficiency, water quality,
	systems to integrate the	water replenishment, carbon emissions, waste to landfill and sustainable packaging. For more information,
	environmental principles	see the following sections of the Annual Report, Pioneer grain-to-glass sustainability, Doing business the
		right way from grain to glass and Climate-related risk, pages 28-29,36-37 and 42-43, and GRI 103-02 to 103-03
		and GRI 301 to 308, pages 34-53.

11	Effective monitoring and	Our risk and compliance programme, referenced above, also applies to our Environment Global Policy.
	evaluation mechanisms for	Beyond this we have a robust system to monitor environmental performance	managed by our
	environmental stewardship	Environmental Leadership Team which meets monthly, our Environmental Executive Working Group,
		and our Climate Risk Steering Group which meets quarterly. We independently externally assure select

environmental key performance indicators. More details can be found in the Methodologies section on pages 86-91 of this Performance Addendum.

For more information, see the following sections of the Annual Report, Pioneer grain-to-glass sustainability,

Doing business the right way from grain to glass and Climate-related risk, pages 28-29,36-37 and 42-43, and

GRI 103-02 to 103-03 and GRI 301 to 308, pages 34-53.

DIAGEO S&R Performance Addendum to the Annual Report 2020

United Nations Global Compact (UNGC) Index

ROBUST ENVIRONMENTAL MANAGEMENT POLICIES AND PROCEDURES continued

Criterion	Description	Cross reference/direct answer

12	Robust commitments,	Our Code of Business Conduct and Anti-Corruption Global Policy set the standard for what is expected
	strategies or policies in the	of	everyone working at Diageo,	and those who represent or act on behalf of Diageo. We have made a
	area of anti-corruption	commitment that we will not condone the offer or acceptance of bribes in any form, anywhere we operate.

13	Effective management systems	Our risk and compliance programme, referenced in the Our principal risks and risk management section of
	to integrate the anti-corruption	the Annual Report, pages 38-41, outlines how we deliver our anti-corruption commitment. We also have an
	principle	internal Know Your Business Partner (KYBP) programme to assess third parties, such as suppliers and
		customers, against the risk of bribery and corruption, and to mitigate risks.
		For more information, see GRI 103-02 to 103-03 and GRI 205 to 206, pages 32-33.

14	Effective monitoring and	The Our Principal risks and risk management section of the Annual Report, pages 38-41, sets out our
	evaluation mechanisms for the	monitoring and evaluation mechanisms. Our internal Global Audit and Risk (GAR) programme checks that
	integration of anti-corruption	these principles are consistently applied.

For more information, see GRI 103-02 to 103-03 and GRI 205 to 206, pages 32-33.

TAKING ACTION IN SUPPORT OF BROADER UN GOALS AND ISSUES

Criterion	Description	Cross reference/direct answer

15	Core business contributions	Diageo is committed to contributing to many goals of the United Nations (UN) as well as those of other
	to UN goals and issues	affiliated, specialised agencies, such as the World Health Organization (WHO) and the International Labour
		Organization (ILO).
		Our sustainability and responsibility strategy is aligned to the UN Sustainable Development Goals (SDGs), and
		delivery of our 2020, 2025 and 2030 targets contributes to the delivery of those goals. Areas of specific focus are
		water and sanitation, health and non-communicable disease, carbon, diversity and empowerment, livelihoods
		and decent work. These also contribute to poverty reduction. Further details are available on pages 33-35 of
		the Annual Report.
		We focus particularly on promoting positive drinking through encouraging moderation and tackling misuse,
		and the WHO target of reducing alcohol-related harm by 10% across the world by 2025. Every one of our
		responsible drinking programmes, partnerships and campaigns are in service of this. In 2018 we announced
		a new Positive Drinking strategy, creating greater reach and measurement of impact, and our performance
		this year is outlined in the Annual Report on pages 24-25 and 33.

16	Strategic social investments	Our community programmes focus on the most material areas for our business, with support for water
	and philanthropy	and sanitation, diversity and inclusion, skills development for employment and sustainable agriculture.
		We also support critical issues and disaster relief as they arise in our markets, providing financial and material
		support for relief programmes, when necessary through NGO partners.
		For more on our strategic community investment programmes, see pages 28-29 and 33 of the Annual
		Report, and GRI 103-02 to 103-03 and GRI 205 to 206.

17	Advocacy and public	We engage on many issues important to our sustainability and responsibility strategy. For example, we have
	policy engagement	signed up to the Business Ambition for 1.5⁰C, the UNGC/SBTI Uniting Business to Recover Better, and the
		UNGC Government Letter on SDGs in Recovery; and have joined the Open for Business coalition, an alliance

of leading companies that are committed to supporting LGBTQ+ inclusion worldwide. For more information, see our website.

We engage in advocacy at national and international levels with governments and civil society. For example, we have a strategic partnership with WaterAid to promote access to safe drinking water, hygiene and sanitation, and more broadly for water stewardship; and we are strong global advocates for various important issues through our membership of the Alliance for Water Stewardship, UNGC CEO Water Mandate and local partnerships with NGOs including Oxfam and Amref.

On positive drinking issues we advocate, for example, for road safety, including through our partnership with the United Nations' road safety initiative, UNITAR. The partnership supports road safety events aimed at reducing traffic deaths and injuries and improving road safety globally. It has a particular focus on high-visibility enforcement in Latin America, Asia and Africa. In April 2020, in response to Covid-19, we collaborated with UNITAR as it launched a series of online training resources in English and Spanish for government officials responsible for road safety and law enforcement.

In 2018 we also led discussions at the OECD Development Assistance Committee, representing the wider private sector and supporting the role of the private sector in the development and delivery of the SDGs. We discussed our work on skills for young people and water in particular, and the importance of leveraging our core business to support shared value.

For more information, see GRI 103-02 to 103-03 and GRI 203-02,pages 30-31.

DIAGEO S&R Performance Addendum to the Annual Report 2020

United Nations Global Compact (UNGC) Index

TAKING ACTION IN SUPPORT OF BROADER UN GOALS AND ISSUES continued

Criterion

Description

Cross reference/direct answer

18 Partnerships and collective action We believe partnership is the best way to make progress against our sustainability and responsibility strategy and goals.

In the case of positive drinking, the most significant initiative we have been part of in recent years is the Global Beer, Wine and Spirits Producers' Commitments to Reduce Harmful Drinking - the largest ever industry-wide initiative to implement effective ways to address harmful drinking. The Commitments ended in December 2017, but the signatory companies remain committed to the spirit of the five Commitments and the 10 action areas.

We will continue to work with our peers in this area. Together with companies that form the International Alliance for Responsible Drinking we have committed to adding an age-restriction symbol or equivalent words on all our alcohol brand labels, including alcohol-free extensions of alcohol brands. We will start to roll this out immediately, where legally permissible, with compliance across all markets by 2024. Our partnership with UNITAR on road safety to address drink driving globally is a further example of how we use partnerships to increase the scale and impact of our efforts to deliver the Commitments.

We have strategic partnerships with two global NGOs, WaterAid and CARE International UK, to support our advocacy and programmes on water, sanitation and hygiene, and women's empowerment. These are in addition to focused partnerships to deliver programmes, including with government agencies such as the UK Government's Department for International Development (DFID) and national and international NGOs such as Amref and Oxfam.

Elsewhere in our supply chain activity, partnering with suppliers and peers through AIM-PROGRESS and SEDEX is critical to the success of our programme to improve human rights and labour standards within our global supply network. For more information, see the Pioneer grain-to-glass sustainability section of the Annual Report, pages 28-29.

CORPORATE SUSTAINABILITY GOVERNANCE AND LEADERSHIP

Criterion

Description

Cross reference/direct answer

19 CEO commitment and leadership In the Annual Report, pages 4-9, our Chairman and Chief Executive confirm their commitment to sustainability and responsibility.

20	Board adoption and oversight	The process by which the Board adopts and oversees aspects of our sustainability and responsibility strategy
		is described in GRI 102-18 to 102-39,pages 15-22.

21	Stakeholder engagement	We engage stakeholders on two levels, local and global. At a local level, employees across the business
		engage their colleagues, local governments, customers, media, community groups and consumers on issues
		of immediate concern to them. At a global level, we engage investors, customers, suppliers and multinational
		organisations such as UN agencies and NGOs. Routine dialogue through the Corporate Relations function is
		critical to those engagement processes, with regular assessment of stakeholder sentiment within the various
		sectors, the review of which strengthens our engagement process and public policy activity. For more

information, see the Stakeholder engagement section of the Annual Report, pages 12-13 and GRI 102-40 to 102-44,pages 22-23.

DIAGEO S&R Performance Addendum to the Annual Report 2020

Our response to the Sustainability Accounting Standards Board (SASB)

The US-based SASB sets out sustainability reporting standards for various sectors. The following table summarises our response to the sector-specific standard for alcoholic beverage companies.

ENERGY MANAGEMENT

SASB metricOur response

(1) Total energy consumed, (2) percentage grid electricity,	See GRI 302 in this document
(3) percentage renewable energy

WATER MANAGEMENT
SASB metric	Our response

(1) Total water withdrawn, (2) total water consumed; percentage of each	See GRI 303 in this document
in regions with high or extremely high baseline water stress	See page 42 of the Annual Report


Discussion of water management risks and description of management	See GRI 303 in this document
strategies and practices to mitigate those risks	See 28-29 and 42-43 of the Annual Report

	See our Water Blueprint

RESPONSIBLE DRINKING AND MARKETING
SASB metric	Our response

Percentage of advertising impressions made on individuals above the legal drinking age

All advertising impressions are targeted to those above the legal drinking age; see the Diageo Marketing Code for more details

See page 25 of the Annual Report for breaches of our Marketing Code

Number of incidents of non-compliance with industry or regulatory	See GRI 417-03 in this document
labelling and/or marketing codes	See page 25 of the Annual Report


Total amount of monetary losses as a result of legal proceedings	See Note 18 of the Financial statements, pages 163-166 of the Annual Report,
associated with labelling and/or marketing practices	for details of contingent liabilities and legal proceedings
	See page 25 of the Annual Report for details of breaches of marketing practices

Description of efforts to promote responsible consumption of alcohol	See pages 24-25 of the Annual Report
	See www.diageo.com

PACKAGING LIFECYCLE MANAGEMENT
SASB metric	Our response

(1) Total weight of packaging, (2) percentage made from recycled or	See GRI 301 in this document
renewable materials, (3) percentage that is recyclable or compostable	See pages 32-35 of the Annual Report


Description of strategies to reduce the environmental impact of	See GRI 301 in this document
packaging throughout its lifecycle	See pages 28-37 of the Annual Report

	See the sustainable packaging section of our website

DIAGEO S&R Performance Addendum to the Annual Report 2020

Our response to the Sustainability Accounting Standards Board (SASB)

ENVIRONMENTAL AND SOCIAL IMPACT OF INGREDIENTS SUPPLY CHAIN

SASB metric	Our response

Suppliers' social and environmental responsibility audit:	See GRI 414 in this document

non-conformancerate, (2) associated corrective action rate for (a) major and (b) minor non-conformances

INGREDIENT SOURCING

SASB metric

Our response

Percentage of beverage ingredients sourced from regions with high or extremely high baseline water stress

See page 43 of the Annual Report for the location of our sites in water- stressed areas

Omission: percentage of ingredients

List of priority beverage ingredients and description of sourcing risks	See GRI 301 in this document
due to environmental and social considerations	See pages 28-29 of the Annual Report


ACTIVITY METRIC
SASB metric	Our response

Volume of products sold	See page 14 of the Annual Report

Number of production facilities	See GRI 103-01 in this document

Total fleet road miles travelled	See GRI 305-03 in this document

DIAGEO S&R Performance Addendum to the Annual Report 2020

Reporting boundaries and methodologies

The reporting boundaries and methodologies outlined here relate to the social and environmental performance disclosures set out in our Annual Report and this Performance Addendum.

Reporting boundaries

Our reporting covers the global operations of Diageo plc in the financial year ended 30 June 2020. Dates refer to financial years unless otherwise stated. Excluding the few exceptions below, the boundaries for all data disclosed in the Annual Report and this Performance Addendum include the results of the company and its subsidiaries, together with Diageo's attributable share of the results of significant joint ventures.

On the acquisition of a business, or of an interest in an associate or joint venture, fair values, reflecting conditions at the date of acquisition, are attributed to the net assets including identifiable intangible assets and contingent liabilities acquired. For non-financial data, our aim is to integrate data from acquisitions as soon as practically possible, and ideally not later than after we have collated one full year's data.

This is because systems and processes for the collection of non-financial data often vary widely in different parts of the world, and it takes time to integrate different systems, and, in some cases, set up those systems.

Exceptions

Environmental and safety data from joint ventures and associates where Diageo does not have operational control is not included.

Uncertainty and estimates

While we make every effort to capture all information as accurately as possible, it is neither feasible nor practical to measure all data with absolute certainty. Where we have made estimates or exercised judgement, this is highlighted within the reporting methodologies.

Significant changes in our operations

Over the last three years, Diageo has made a number of disposals, notably United National Breweries in South Africa in 2019, and acquisitions of brands, distribution rights, and equity interests in premium drinks businesses. Please see Note 8 to the Financial statements in the Annual Report, pages 136-137, for details.

Reporting methodologies

Here you will find an explanation of our methodology for calculating our targets and other key information disclosed in the Annual Report and this Performance Addendum, under the following headings:

Positive drinking
Environment
Inclusive communities
Our people
Sustainable supply chains
Governance and ethics
Food safety and quality.

Positive drinking

Here we explain our methodology for the following:

Educate 5 million young people, parents and teachers about the dangers of underage drinking
Collect 50 million pledges never to drink and drive through #JoinThePact
Reach 200 million people with moderation messages from our brands.

Educate 5 million young people, parents and teachers about the dangers of underage drinking

All our programmes are administered by third parties who count the number of attendees at each session and report those numbers to us. Our two largest programmes are 'Smashed', administered by Collingwood Learning, and 'Ask, Listen and Learn', administered by the Foundation for Advancing Alcohol Responsibility.

Collect 50 million pledges never to drink and drive through #JoinThePact

People sign up for #JoinThePact on our website, at our events, or through targeted social media campaigns. Signing up at events involves either doing so on a tablet (i.e. directly onto our website) or by signing on a wall. Signatures collected on a wall are recorded by one of our staff or partners and added to the overall total.

Our #JoinThePact campaign had reached

25.3 million people by the end of this year, and we are proud of its achievements in raising

awareness. Building on what we have learnt from our drink driving interventions and feedback from our stakeholders, we are evolving our approach to focus on education programmes that promote changes in attitudes as a way to tackle drink driving. As a result, 2020 was our final year for #JoinThePact, and we will no longer include it in our reporting.

Reach 200 million people with moderation messages from our brands

The agencies that run our brand moderation campaigns collect data about numbers of consumers reached through advertising and marketing and report it to us. This year, our campaigns were Guinness Clear, Bundaberg, Captain Morgan and Crown Royal.

Environment

This section details Diageo's environmental reporting methodologies and outlines the basis and approach for quantification of the environmental impacts against the following headings:

Setting baseline data and targets
Our targets
1. Greenhouse gas emissions - referred to as carbon dioxide equivalent (CO2e)
2. Water use
3. Wastewater polluting power as measured by biochemical oxygen demand (BOD)
4. Waste to landfill
5. Sustainable packaging
Litres of packaged product (the denominator for determining efficiency indicators; both absolute and efficiency indicators are used for environmental measures).

The following methodologies take into account regulatory requirements applicable to our operations globally, industry codes of practice and voluntary guidance from external bodies.

PricewaterhouseCoopers LLP (PwC) has been appointed to provide limited assurance over selected environmental KPIs. See pages 92-93 here for PwC's full independent limited assurance opinion.

DIAGEO S&R Performance Addendum to the Annual Report 2020

Reporting boundaries and methodologies

Setting baseline data and targets

Environmental data is externally reported on the basis of our financial reporting year, running from 1 July to 30 June. Diageo's environmental reporting methodologies are reviewed and updated on an annual basis by Diageo's Environmental Leadership Team and material changes are ratified by Diageo's Environmental Executive Working Group, chaired by the President, Global Supply and Procurement.

Reporting boundaries

Environmental data is collected and reported for all sites at which Diageo has operational control including office sites with more than

50 employees. The reporting boundaries are based on the World Resources Institute/World Business Council for Sustainable Development Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition (WRI/WBCSD Protocol). Environmental data from joint ventures and associates, where Diageo does not have operational control,

is excluded from the reported environmental figures.

The environmental impacts associated with leased facilities and the carbon emissions associated with company vehicles and leased cars are also excluded and considered immaterial to the company's overall impacts. This is reviewed every three years to assess the data and extent of impacts.

The environmental data includes newly- acquired businesses and environmental impacts from new operational sites, as soon as practical and no later than one year after assuming operational control. The environmental data associated with any divestments is removed from the baseline, intervening years and current year to ensure relevant comparisons and consistent performance tracking towards targets.

We collect data on key measures of environmental performance every year. This is collated and analysed using a web-based environmental management system. For the reporting period 1 July 2019 to 30 June 2020, 205 sites in 45 countries reported environmental impact data.

Baselines

Diageo's baseline year, set as the financial year (FY) ended 30 June 2007, applies to all environmental targets with the exception of packaging, which has a baseline of (FY) 30 June 2009. The baselines have been established as set out here. The baseline data is used as the basis

for calculating progress against Diageo's targets for CO2e emissions, water use, BOD load to the environment and waste to landfill, first announced in September 2008 and further developed in 2015. 2007 as the baseline year is deemed to be appropriate in FY 2020 and the relevance of this is reviewed annually.

Restatement of baseline environmental data

Diageo restates environmental data for the baseline year and intervening years to reflect changes in the company that would otherwise compromise the accuracy, consistency and relevance of the reported information. Restatements are made in line with the protocols defined by the WRI/WBCSD Protocol and the Beverage Industry Sector Guidance for Greenhouse Gas Emissions Reporting version 3.0.

The baseline year environmental impact data, and data for intervening years, are adjusted to reflect acquisitions, divestments, updates to databases for CO2e emission factors, any errors in calculations, and any significant changes in reporting policy that result in a material change to the baseline of more than 1%. We also restate data where we can show that structural changes regarding outsourcing and insourcing have an impact of more than 1%.

In FY 2020, the baseline year environmental impacts and the impacts for the intervening years were restated to reflect changes to CO2e emission factors and updated calorific values, as well as the sale of United National Breweries in South Africa.

Any restatements are carried out in accordance with the WRI/WBCSD Protocol, which defines the requirements for companies to restate environmental impacts for consistent tracking over time when they undergo significant structural changes. We deem this necessary to make meaningful historical comparisons.

The baseline year environmental impacts associated with acquisitions and bringing production in-house are primarily determined directly from the historical data records for production volumes, energy, water use and waste generated for the baseline year and intervening years. In certain cases, where historical data is unavailable, the environmental impacts for

the baseline year and intervening years are extrapolated from current environmental impact data, based on production patterns.

The impact of these increases is absorbed within the group and does not impact our commitment to our 2020 environmental sustainability goals.

Uncertainty and estimates

While we make every effort to capture all information as accurately as possible, it is neither feasible nor practical to measure all data with absolute certainty. Where we have made estimates or exercised judgement based on industry norms and/or historical data for similar site operation, these are highlighted within these reporting methodologies.

Our targets

In 2008 Diageo set environmental targets on baseline data from the financial year ended

30 June 2007. In December 2014 we announced a new set of sustainability and responsibility targets to be achieved by FY 2020, and which would apply from FY 2016 onwards. Since setting these targets and reporting our performance against them, we have incorporated a number of acquisitions and the FY 2007 baseline has been reset accordingly. The impact of these acquisitions on our 2020 environmental targets has been fully absorbed.

1. Greenhouse gas emissions - referred to as carbon dioxide equivalent (CO2e)

CO2e emissions data has been prepared in accordance with the WRI/WBCSD Protocol, Scope 2 guidance (amendment to the GHG Protocol Corporate Standard, 2015), Scope 3 calculation guidance (Corporate Value Chain (Scope 3)) and IPCC methodology in relation to ozone-depleting substances and fluorinated gases. A summary of the key elements of this standard and their application to Diageo's business is outlined below.

Scope

Scope 1 emissions (i.e. direct CO2e emissions) are defined as those from on-siteenergy consumption of fuel sources, such as gas, fuel oil, diesel, as well as fugitive and agricultural emissions. In keeping with WRI/WBCSD Protocol guidance relating
to biofuels, Diageo reports CO2e emissions attributable to CH4 and N2O only, and
excludes direct CO2 emissions for biomass, biogas and the biogenic element of biofuels. De minimis quantities, typically at office sites,
to a maximum of 50 tonnes CO2e, are excluded, as are the carbon emissions associated with biogas flaring and leased cars since they are considered immaterial to the company's overall impacts. These areas are routinely reviewed to reassess the materiality of the data.

DIAGEO S&R Performance Addendum to the Annual Report 2020

Reporting boundaries and methodologies

Scope 2 emissions (i.e. indirect CO2e emissions) are defined as those from purchased electricity and heat.
Scope 3 emissions (i.e. indirect CO2e emissions) are defined as those that relate specifically to Category 4 of the Protocol - emissions from upstream transportation and distribution (e.g. suppliers, distribution and
logistics). CO2e emissions associated with the distribution and logistics component of the supply chain were first quantified for FY 2013 and are reported separately this financial year.
In addition, the CO2e emissions relating to all categories material to our supply chain include purchased raw materials, packaging, capital equipment, consumer use and disposal. These were first quantified for FY 2016. These are combined with direct operations and emissions associated with distribution and logistics (Category 4), providing a total supply chain carbon footprint. These are reported separately this financial year.

Carbon dioxide emissions from the fermentation process are excluded from our reported environmental data as these emissions are from a biological short cycle carbon source and are thus outside scopes 1, 2 and 3.

Calculation methodology and assumptions

Performance measure:

Absolute volume of carbon emissions (in 1,000 tonnes of CO2e) from energy use in the year.

CO2e emissions data is externally reported in metric tonnes and is the measure used to compare the emissions from the six main greenhouse gases based on their global warming potential (GWP). The CO2e emissions data is calculated on the basis of direct measurement of energy use (e.g. meter reads/ invoices) for the majority of sites. In certain limited instances (<1%*), where invoices are not available, for example due to timing differences, consumption is estimated. Fuel consumption

is reported by fuel type at site level using the environmental management system. It is then converted to energy consumption, in kWh, by fuel type and multiplied by the relevant CO2e emission factor to derive the total CO2e emissions.

Scope 1 emission factors for fuels are typically UK BEIS average fuel CO2e emissions factors and calorific values (the latest available at the start

Energy estimates determined to be 0.59%, in aggregate, from assessment of 85% of total energy consumption in Financial Year 2020 and <1% threshold, thereby seems reasonable.

of the reporting year). However, where product specific factors are available, these are applied.

As part of our strategy we have identified the opportunity to use a third party to process our distillery by-products through anaerobic digestion into biogas, which will generate green gas, for which we receive renewable energy attribute certificates. We have also purchased renewable energy attribute certificates to accelerate and support our decarbonisation strategy.

Carbon emissions from electricity (Scope 2) are reported as both market emissions and location emissions in line with the WRI/WBCSD Protocol Scope 2 amendment made in January 2015.

Diageo's CO2e reduction targets and reporting protocols since 2007 are based on market emissions applying emissions factors specified in energy attribute certificates, contracts, power purchase agreements and supplier utility emission as detailed in WRI/WBCSD Protocol Scope 2 guidance. The reporting of location (gross) emissions has been added to Diageo's protocols since FY 2014. For location-based reporting of grid electricity consumption, regional or subnational factors are used where available. These include, for example, CER (Ireland), BEIS (GB), the National Inventory Report (Canada), US eGRID (USA) and the Indian power sector report (India). In all other cases country or sub-regional factors are provided by the International Energy Agency (IEA).

2.Water use

Performance measure:

Water use efficiency derived from total volume of water withdrawn, in cubic metres, by sites in the year/total packaged volume, in litres.

Diageo prepares and reports water withdrawal data from the sites over which it has operational control, using internally developed reporting methodologies based on the GRI Standards.

In addition to tracking total water usage, Diageo also prepares and reports water efficiency, meaning the ratio of the amount of water consumed to produce one litre of packaged product.

Water-stressed locations and classification

The World Resource Institute Aqueduct tool, UN Definitions and internal survey information are used to determine the number of our sites that are located in water-stressed areas. In the current financial year, we have designated 34 of our production sites as being in water- stressed areas, identifying them as higher risk

in terms of sustainable water supply. These sites are subject to more intense water stewardship measures over and above our target to improve water efficiency by 50% by 2020.

Calculation methodology and assumptions

Diageo defines the total quantity of water withdrawals as water obtained from ground water, surface water, mains supply and water delivered to the site by tanker less any clean water provided back to local communities directly from a site. Uncontaminated water abstracted and returned to the same source under local consent, water abstracted from the sea, and rainwater collection are excluded from water usage data reported.

Water used for irrigation purposes on land under Diageo's operational control is not included in Diageo's water use efficiency for production operations. The extent of water use at Diageo-operated agricultural lands (in Mexico, Brazil and Turkey), is quantified and reported separately.

Water withdrawals are measured primarily on the basis of meter reads and invoices for the majority of sites. In some limited instances estimations are used to calculate withdrawals. Water withdrawals are reported by source at site level using the environmental management system.

Water efficiency (water use rate), per litre of packaged product, is calculated by converting the total water withdrawal in cubic metres to litres, then dividing by the total packaged volume in litres.

3. Wastewater polluting power as measured by biochemical oxygen demand (BOD)

Performance measure:

Wastewater pollution load to the environment measured in '000s tonnes of biochemical oxygen demand (BOD), by site in the year.

Much of the water used in brewing, distilling and beverage packaging facilities is used for cleaning process equipment, and such water becomes polluted with product residues. The strength of this pollution in the wastewater discharged as effluent is expressed as BOD. BOD is a direct measure of the polluting strength of effluent, and quantifies the oxidisable organic matter present in the wastewater or effluent stream.

Diageo measures and reports the final BOD load discharge to the environment outside of the site boundary that is directly treated and controlled and/or treated by third parties, consistent with international methods and literature describing

DIAGEO S&R Performance Addendum to the Annual Report 2020

Reporting boundaries and methodologies

the determination of BOD impacts. Wastewater used for irrigation is excluded from reported BOD. The BOD load to the environment ('000's tonnes), that is attributable to Diageo's owned and operated wastewater treatment facilities, is covered by external independent assurance.

Calculation methodology and assumptions

The final BOD load to the environment is determined from the volume in cubic metres of site effluent multiplied by the BOD concentration in mg/l, and is expressed as '000's of tonnes.

Effluent volume is either determined from

an on-site flow meter or by calculating a 'mass balance' formula/ratio of effluent volume: water withdrawal. In the limited instances where mass balance and ratios are applied, these are validated through industry standard coefficients for wastewater volume for brewing, distilling and packaging operations. The BOD concentration of the effluent is determined on a sample basis, from one of the following:

On/off site BOD laboratory analysis
On/off site chemical oxygen demand (COD) laboratory analysis and applying industry (or site-specific) correlation coefficient to convert to BOD
Third-party/municipaltreatment facility BOD data.

Data is reported at site level using the environmental management system.

4.Waste to landfill

Performance measure:

Total waste sent for disposal in landfill in tonnes, by site in the year.

Diageo records the type and quantity of all waste to landfill using Diageo's internal environmental reporting methodologies and GRI Standards.

The definition of waste to landfill includes all hazardous waste and all unwanted or discarded material produced in solid, sludge or liquid form from manufacturing and office sites (except asbestos waste and/or other waste required by national or state legislation to be landfilled in either specified registered sites or other landfill sites). The definition includes all refuse, garbage, construction debris, treatment and process sludge, and materials that a site has been unable to reclaim, reuse, or recover.

Calculation methodology and assumptions

Sites collect primary waste data typically in the form of weighbridge tickets and invoices from waste handlers. Data is reported by waste type

at site level using the environmental management system. All waste to landfill is reported in metric tonnes.

We aim to achieve zero waste to landfill everywhere we operate. However, incidents may occur where small quantities of waste are sent to landfill by accident or due to operational changes such as acquiring new sites, changing who handles our waste, and issues with waste disposable suppliers. We consider we have achieved zero waste to landfill if we have disposed of less than 0.2%* of baseline 'waste to landfill' volume during the year.

*0.2% of baseline waste to landfill volume equates to 200 tonnes, excludes any waste Diageo is required to dispose to landfill under local regulations.

5. Sustainable packaging

Diageo monitors and assesses the type and volume of packaging used and the alternatives available to ensure, where practical, that our brands are delivered to the consumer with the smallest possible environmental footprint. The methodology for sustainable packaging includes:

Packaging weight
Recycled content
Recyclability.

All changes in sustainable packaging impacts are quantified and expressed in terms of weight or percentages.

Pack weight changes are determined by quantifying the weight reduction in grammes and multiplying by the number of product lines (SKUs) affected on an annualised basis. Recycled content is determined by establishing the volume in grammes/kgs of non-virgin materials used to generate the pack components, and adjusting for current year changes to recycled content. Recyclability is expressed as a percentage, determined by quantifying the weight of the final pack deemed to be non-recyclable and multiplying by the total annualised volume of the SKU. Having set targets against a 2009 baseline, packaging data is inputted for each of our three metrics (weight, recycled content, and recyclability). They are then consolidated and internally verified, based on the best available information.

Litres of packaged product

Litres of product packaged by sites and aggregated at group level is the denominator for efficiency indicators, for example water efficiency or where environmental impact areas are expressed in terms of efficiency as well as absolute measures.

To calculate efficiency ratios, Diageo uses litres of packaged product as the standard measure for comparison, as this measures the environmental impact associated with the production of our products.

Calculation methodology and assumptions

Our calculation of litres of product packaged includes the total litres of product packaged which enter a finished goods warehouse at operationally controlled sites, together with any product sent to a third party for packaging (i.e. a non-operationally controlled site). Damaged product at the point of production is not included in these figures.

Data is reported at site level using the environmental management system.

Inclusive communities

Here we explain the basis of calculation for:

Setting baseline data and KPIs
Women's empowerment beneficiaries
Water, sanitation and hygiene beneficiaries
Skills empowerment beneficiaries
Community investment figures.

Setting baseline data and KPIs

We have KPIs for each of our community programmes, and baselines differ for each indicator. Learning for Life beneficiaries are counted from 1 July 2008. Women's empowerment beneficiaries are counted from 12 December 2012.

Women's empowerment beneficiaries

The number of women empowered is defined as direct participants in women's empowerment programmes, or in those programmes with

a specific women's empowerment element.

Beneficiary data for each project is provided by either our in-market sustainable development leads or our implementation partners. Data is collected via an online survey tool completed by each country team and collated at global level.

Community WASH beneficiaries

Our implementation partners provide us with beneficiary data for each project. To meet the criteria for a water, sanitation and hygiene (WASH) programme, each beneficiary should:

Live within 2km of the water source, or 500m if in an urban area
Be able to get his or her water from:
- Piped water into a dwelling, plot or yard
- A public tap/standpipe
- A tube well/borehole

DIAGEO S&R Performance Addendum to the Annual Report 2020

Reporting boundaries and methodologies

- A protected dug well
- A protected spring
- Rainwater collection
- Water filtration and purification
Have access to:
- Sanitation (toilets)
- Educational programmes on hygiene.

Skills empowerment beneficiaries

Beneficiaries are defined as direct participants in Diageo-funded programmes, including Learning for Life. Data is collected by our training partners via standardised surveys, and averages are reported by market via an online data collection tool. Alongside the number of beneficiaries, many market teams also track demographic information (age and gender), the number of hours spent training (meeting local certification standards), participant satisfaction rate, the number of participants who perform internships, and participants' increase in income after completing the programme.

Community investment figures

Community investment includes contributions (in the form of cash, in-kind donations, programme delivery costs or employee time) from Diageo plc. It includes contributions to charitable entities, non-branded responsible drinking programmes that benefit charities, and delivery costs of our community programmes. We use the principles of the London Benchmarking Group (LBG), which we helped pioneer in 1994, to measure our community investment.

Cash, in-kind donations, programme delivery costs and employee time contributions are recorded by local markets using an online data collection tool.

Our people

Here we explain the basis of calculation for:

Setting baseline data and targets
Lost-timeaccident (LTA) frequency rate
Fatalities
Employee profile data
Women in senior management positions
Engagement results.

PricewaterhouseCoopers LLP (PwC) has been appointed to provide limited assurance over selected safety KPIs. See pages 92-93 for PwC's full independent limited assurance opinion.

Setting baseline data and targets

Baseline information differs between metrics. Employee profile information and engagement results are calculated annually, and for this year, they were calculated at the year ended 30 June 2020. Lost-time accident (LTA) frequency has

a baseline of 30 June 2010, with targets set for 2020, and phased incremental targets set each year.

Reporting boundaries for safety data

Safety data is collected and reported for all sites at which Diageo has full operational control, including all office sites. The safety data includes newly-acquired businesses as soon as practical, and no later than one year after we have assumed operational control. Safety data associated with any divestments during the current reporting year is excluded from reporting in the current period.

Lost-time accident (LTA) frequency rate

Performance measure:

Lost-timeaccident (LTA) frequency rate is defined as the number of LTAs per 1,000 full-time employees (FTE).

An LTA is defined as any work-related incident resulting in injury or illness, where a healthcare professional or Diageo recommends one or more full days away from work or where a job restriction is required. Where individuals self-certify their absence in the absence

of a healthcare professional or Diageo recommendation, these are not included as LTAs.

We consider an injury or illness to be work- related when an event or exposure in the work environment (including people working at home) either (1) caused or contributed to the resulting condition, or (2) significantly aggravated a medically-documented and treated pre-existing injury or illness. Due to the ongoing impact of Covid-19 and FTEs having to work from home, we have looked closely into what home-working injuries should be in scope for reporting. For example, an injury would be in scope if caused by an activity involving work-related equipment, such as an employee injuring a finger by getting it trapped in a laptop cover.

LTA numbers also include any FTE work- related fatalities.

In line with industry best practice, for the purposes of calculating LTAs and FTEs we include all employees, temporary staff and contractors who work under our direct day-to-day supervision in our definition of 'employee'.

Total Recordable Accident Frequency Rate (TRAFR)

TRAFR is defined as the sum of all work-relatedlost-time accidents (inc Diageo fatalities, FTE and non FTE LTAs), FTE medical treatment cases (MTCs), non FTE MTCs (permanent site-based contractors) expressed as a rate per 1,000 FTEs and non FTEs.

Calculation methodology and assumptions

At all sites (operational, corporate office, remote commercial and remote home-working environment), when an incident occurs, the local line manager and local health and safety team will initiate an accident investigation and root cause analysis. If the accident is classified as an LTA, then the local health and safety representative will escalate to the site leadership team, who will in turn escalate to regional, market and global leadership.

Each month, sites are required to submit

details associated with all incidents, accidents and LTAs, and (b) FTE data for their site. FTE data is primarily obtained directly from the global HR/ payroll system or estimated using employee numbers, average number of hours worked, absences and overtime information if actual data is not readily available.

Safety data and FTE data is reported at site level using the global data management system.

Fatalities

Fatalities include any employee work-related fatality arising in their day-to-day work environment, or any work-related fatalities occurring to third parties and contractors (non FTEs), while on Diageo's premises.

Employee profile data

Total employee data comprises our average number of full-time equivalent employees. It is captured globally through financial and human resources (HR) information and reporting systems. New hires and leavers data considers the total number of employees, irrespective of type of contract. Gender data is collected by region. The majority of the gender information is collected from our global HR system. A few markets, however, are not yet using the global HR system. For those markets, the HR teams provided gender information at the market level from their local HR and finance systems.

Women in senior management positions

Gender data is collected by region. The majority of the gender information is collected from our global HR system. A few markets, however, are

DIAGEO S&R Performance Addendum to the Annual Report 2020

Reporting boundaries and methodologies

not yet using the system, and in these markets	SEDEX, linked their operating sites with ours,
the HR teams provided gender information	and then completed the self-assessment or
from their local HR and finance systems.	submitted any other performance-related data.

parties, and are available in all 20 of our Code languages. The service is run by an independent external party 24 hours a day, 365 days a year. All reports received are triaged by representatives

Engagement results

Engagement is usually assessed through our annual employee survey, Your Voice, administered by Karian and Box. In 2019 the data represented 94% of those able to participate (22,615 of the 24,129 invited) compared with 94% in 2018.

This year, Covid-19 meant we did not conduct Your Voice. Instead we established a pulse survey to measure engagement and listen to feedback from employees on their experience of working during the pandemic. We recognise that the results of this survey do not represent a like-for-like comparison with previous years.

Sustainable supply chains

Here we explain the basis of calculation for:

Setting baseline data and targets
Local sourcing in Africa
SEDEX self-assessment
Audits of highest-risk suppliers
Sustainable paper and board packaging.

Setting baseline data and targets

All performance figures against targets are for the period from 1 July 2019 to 30 June 2020 unless otherwise stated.

Exclusions

Supplier CDP water data does not include suppliers of our India business, which are currently not part of this programme.

Local sourcing in Africa

Our target is to source 80% of agricultural materials locally across Africa by 2020. 'Local' is defined as materials of agricultural origin sourced within Africa and used in our African operations to produce our brands.

We calculated this figure by using the weighted average local agricultural material volumes used across each of our African markets including Nigeria, Ghana, Cameroon, Ethiopia, Kenya, Uganda, Tanzania and South Africa.

SEDEX self-assessment

Self-assessment data is provided to us in reports run from the Supplier Ethical Data Exchange (SEDEX), a not-for-profit organisation that enables suppliers to share assessments and audits on ethical and responsible practices with their customers. Their system includes the number of suppliers who have registered with

Audits of highest-risk suppliers

A supplier is assessed as a potential high risk by considering location, category type and spend. We have only reported the number of audits of supplier sites assessed as a potential high risk, rather than all suppliers linked to Diageo on SEDEX that have an ethical audit.

Audits are conducted by independent third- party auditing companies trained to SEDEX Members Ethical Trade Audit (SMETA) protocols or equivalent. The breakdown of

our audit compliance data in this report relates to both audits requested by Diageo and audits from industry-wide mutual recognition programmes.

Audits are valid for three years, and our data relates to the most recent audit at a site.

The number of supplier sites assessed as a potential high risk decreased from 413 to 412 due to changes in our supply base.

Sustainable paper and board packaging

The percentage of sustainably sourced paper and board packaging reported relates to the 98% of suppliers who responded to our request for information and not our total supply base, and is based on data reported for the final quarter of our financial year 2020. The data from our suppliers is self-reported.

Governance and ethics

Here we explain the basis of calculation for:

Annual Certification of Compliance
SpeakUp
Reported and substantiated breaches.

Annual Certification of Compliance

We ask all employees at manager-level and above and in certain non-manager roles to confirm their understanding and commitment to their compliance and ethics accountabilities in the Annual Certification of Compliance (ACC). The ACC and Code of Business Conduct eLearning are integrated and delivered through the global online training tool, Diageo Academy, which holds a record of who has participated. Participation records are reported to market and function leadership teams, and reviewed by Business Integrity managers.

SpeakUp

Our SpeakUp whistleblowing telephone service and on-line portal www.diageospeakup.com are communicated to all employees and third

from Global Business Integrity and Global Corporate Security teams. When reports relate to discrimination and harassment or other HR related issues, a representative from Global HR will be involved in the triage process to provide expertise in handling of these cases. Investigators are appointed when required and appropriate remediation, including disciplinary consequences, are put in place where allegations are substantiated.

Oversight is provided by in-market Business Integrity managers or, in more serious cases, members of the Global Business Integrity team, Global Legal or Global HR teams.

Reported and substantiated breaches

Prior year numbers of substantiated breaches and code-related leavers are updated to include the outcomes of those reports made in one financial year but for which the investigation and any associated disciplinary actions are not closed until the following financial year, after the Annual Report has been published. This enables a full and accurate year-on-year comparison

to be made.

Food safety and quality

Here we explain the basis of calculation for:

Packaging defects (ppm)
Total concerns (complaints).

Packaging defects (ppm)

Packaging defects data is based on a 0.1% sampling for spirits and a 0.025% for beers. Individual packs are inspected against a global finished product standard. The number of defects is recorded and reported monthly against the sample size for the production run. Figures are aggregated globally and are weighted based on volume of production.

Total concerns (complaints)

All complaints are recorded (validated or not) through consumer care lines and in-market companies. The concern rate is calculated based on the volume of cases produced at the site in the same period as the complaint was received. Figures are aggregated globally, are weighted based on volume of production, and are expressed as number of complaints per units sold, with a unit being one case of nine one-litre bottles.

DIAGEO S&R Performance Addendum to the Annual Report 2020

External assurance: PwC

Independent Limited Assurance Report to the Directors of Diageo plc

The Board of Directors of Diageo plc ("Diageo") engaged us to provide limited assurance over selected information to be reported in Diageo's Annual Report and Sustainability & Responsibility Performance Addendum for the year ended 30 June 2020.

Our conclusion

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Selected Information for the year ended 30 June 2020 has not been prepared, in all material respects, in accordance with the Reporting Criteria.

This conclusion is to be read in the context of what we say in the remainder of our report.

Selected Information

The scope of our work was limited to assurance over the information marked with the symbol in Diageo's Sustainability & Responsibility ("S&R) Performance Addendum 2020 and Diageo's Annual Report 2020 ("Annual Report 2020"), the "Selected Information".

We assessed the Selected Information using Diageo's Reporting Methodologies (the "Reporting Criteria") as set out on pages

86-91 of the S&R Performance Addendum 2020. Our assurance does not extend to information in respect of earlier periods or to any other information included in the S&R Performance Addendum 2020.

	Reported
Environmental and Safety indicators	number

Direct and indirect carbon
emissions by weight (market/net	507
based) (1,000 tonnes CO2e)
Direct and indirect carbon
emissions by weight (location/gross	711
based) (1,000 tonnes CO2e)
Total direct (renewable and
non-renewable) energy	10,798
consumption (TJ)
Direct and indirect energy	3.5
efficiency (MJ/litre packaged)
Market based (net) intensity ratio
of GHG emissions (g CO2e per litre	141.9
of packaged product)
Location based (gross intensity)
ratio of GHG emissions (g CO2e per	199.17
litre of packaged product)
Percentage reduction in absolute
carbon emissions (direct and
indirect carbon emissions by
weight (market / net based))	8.7%
from the prior year
Total volume packaged (litres)	3,569,759,444
Total mains water withdrawn	7,842,713
(cubic metres)
Total ground water withdrawn	6,821,238
(cubic metres)
Total surface water withdrawn	1,851,015
(cubic metres)
Water use efficiency per litre of	4.62
product packaged (litres/litre)
Percentage improvement in
litres of water used per litre of
product packaged from the prior	2.1%
year (percentage)
Wastewater polluting power
('BOD'), total under direct	19,143
control (tonnes)
Percentage reduction in wastewater
polluting power ('BOD'), total under	6.8%
direct control (tonnes)
Total volume of waste sent to	1,814
landfill (tonnes)
Percentage reduction in total waste	39%
sent to landfill from the prior year
Lost time accident frequency rate	0.60
per 1,000 full-time employees.

Professional standards applied and level of assurance

We performed a limited assurance engagement in accordance with International Standard on Assurance Engagements 3000 (Revised) 'Assurance Engagements other than Audits or Reviews of Historical Financial Information' and, in respect of the greenhouse gas emissions,

in accordance with International Standard on Assurance Engagements 3410 'Assurance engagements on greenhouse gas statements', issued by the International Auditing and Assurance Standards Board. The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

Our Independence and Quality Control

We complied with the Institute of Chartered Accountants in England and Wales (ICAEW) Code of Ethics, which includes independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour, and which is at least as demanding as Part A and Part B of the IESBA Code of Ethics. We apply International Standard on Quality Control (UK) 1 and accordingly maintain a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Our work was carried out by

an independent team with experience in sustainability reporting and assurance.

DIAGEO S&R Performance Addendum to the Annual Report 2020

External assurance: PwC

Understanding reporting and measurement methodologies

The Selected Information needs to be read and understood together with the Reporting Criteria, which Diageo is solely responsible for selecting and applying. The absence of a significant body of established practice on which to draw to evaluate and measure non-financial information allows for different, but acceptable, measurement techniques and can affect comparability between entities and over time. The Reporting Criteria used for the reporting of the Selected Information are as at June 2020.

Work done

We are required to plan and perform our work in order to consider the risk of material misstatement of the Selected Information.

In doing so, we:

made enquiries of Diageo's management, including those with responsibility for management and group reporting of S&R data;
evaluated the design of the key structures, systems, processes and controls for managing, recording and reporting the Selected Information. We performed virtual site tours using live feed streaming under our direction for 11 sites in order to understand the key processes and controls for reporting site performance data to the group team.
Sites were selected based on their inherent risk and materiality to the group;
performed limited substantive testing remotely on a selective basis of the Selected Information for 11 sites to check that data had been appropriately measured, recorded, collated and reported; and
considered the disclosure and presentation of the Selected Information.

Diageo's responsibilities

The Directors of Diageo are responsible for:

designing, implementing and maintaining internal controls over information relevant to the preparation of the Selected Information that is free from material misstatement, whether due to fraud or error;
establishing objective Reporting Criteria for preparing the Selected Information;
measuring and reporting the Selected Information based on the Reporting Criteria; and
the content of the S&R Performance Addendum 2020 and Annual Report 2020.

Our responsibilities

We are responsible for:

planning and performing the engagement to obtain limited assurance about whether the Selected Information is free from material misstatement, whether due to fraud or error;
forming an independent conclusion, based on the procedures we have performed and the evidence we have obtained; and
reporting our conclusion to the Directors of Diageo.

This report, including our conclusions, has been prepared solely for the Board of Directors of Diageo in accordance with the agreement between us, to assist the Directors in reporting Diageo's performance and activities. We permit this report to be disclosed in the S&R Performance Addendum 2020 and online¹ at www.diageo.com/en/in-society/our-role-in-society/our-reporting for the year ended

30 June 2020, to assist the Directors in responding to their governance responsibilities by obtaining an independent assurance report in connection with the Selected Information.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Board of Directors and Diageo for our work or this report except where terms are expressly agreed between us in writing.

PricewaterhouseCoopers LLP

Chartered Accountants

London

4 August 2020

The maintenance and integrity of Diageo's website is the responsibility of the Directors; the work carried out by us does not involve consideration of these matters and, accordingly, we accept no responsibility for any changes that may have occurred to the reported Selected Information or Reporting Criteria when presented on Diageo'swebsite.

DIAGEO S&R Performance Addendum to the Annual Report 2020

External assurance: London Benchmarking Group

Assurance statement

Diageo community contribution 2019-2020

Diageo is an active member of LBG: the international standard for measuring companies' contribution to communities. LBG's measurement model helps businesses to improve the management, measurement and reporting of their community investment programmes and activities. It moves beyond charitable donations to include the full range of contributions (in time, in kind and in cash) made to community causes, and assesses the actual results for the community and for the business. (See www.lbg-online.net for more information).

As managers of LBG, Corporate Citizenship has worked with Diageo to ensure that it understands the LBG model and that the reported community investment programmes and contributions are in line with the LBG principles of measurement. Having conducted an assessment, we are satisfied that this has been achieved during the year to 30th June 2020. Our work has not extended to an independent audit of the data.

Commentary

Diageo's community contributions are a subset of a wider programme of 'Diageo in Society' activity, which has two key strands:

Promoting positive drinking - programmes that prevent and reduce alcohol misuse, working with others to raise awareness and change people's attitudes and behaviour
Grain to glass sustainability - programmes and partnerships to empower women, develop skills and improve water access and quality in communities around the world

Diageo aims to include as community contributions only those items concerning alcohol that extend beyond its core responsibilities as an alcohol company and that:

Relate directly to the delivery of community benefit
Extend beyond consumers of its own products (e.g. school children)
Are delivered by independent third-parties

Our review has shown that the data reported for the year under review reflects this approach.

Corporate Citizenship

www.corporate-citizenship.com

June 2020

DIAGEO S&R Performance Addendum to the Annual Report 2020

Attachments

Original document
Permalink

Disclaimer

Diageo plc published this content on 07 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2020 07:48:16 UTC

Real-time Estimate Cboe Europe Other stock markets 03:05:00 2024-04-23 am EDT			5-day change	1st Jan Change
2,864 ^GBX	+0.24%		+3.14%	+0.04%

Apr. 22	DIAGEO : Deutsche Bank reiterates its Sell rating	ZD
Apr. 18	Bernstein Lifts Diageo PT, Maintains Outperform Rating	MT

Diageo plc

Equities

DGE

GB0002374006

Distillers & Wineries

Diageo : Sustainability & Responsibility Performance Addendum 2020

Latest news about Diageo plc

Chart Diageo plc

Company Profile

Income Statement Evolution

Analysis / Opinion

Ratings for Diageo plc

Analysts' Consensus

EPS Revisions

Quarterly earnings - Rate of surprise

Sector Other Distillers & Wineries

	1st Jan change	Capi.
DIAGEO PLC	+0.04%	78.28B
BROWN-FORMAN CORPORATION	-13.92%	23.45B
THAI BEVERAGE	-8.57%	8.85B
EMPERADOR INC.	-7.82%	5.25B
RÉMY COINTREAU	-19.22%	4.97B
ZJLD GROUP INC	+3.26%	4.32B
RADICO KHAITAN LIMITED	+4.15%	2.79B
MGP INGREDIENTS, INC.	-18.27%	1.77B
FEVERTREE DRINKS PLC	+3.43%	1.56B
TAKARA HOLDINGS INC.	-17.39%	1.28B