Diageo, one of the world’s largest beverage companies, has announced significant revisions to its environmental targets, five years after unveiling its Spirit of Progress action plan. The update, contained in its 2025 Annual Report, reflects both the company’s achievements to date and the practical constraints it has encountered in implementing its net-zero commitments. The multinational beverage company says the changes are intended to provide a more credible path to net zero after learning from the realities of implementation.
When the targets were first set in 2020, they were framed around optimism that policy frameworks, infrastructure, and global regulatory systems would evolve quickly enough to match corporate ambition. That optimism has not fully materialised. According to Diageo, while innovation has advanced, the enabling systems required to deliver climate resilience at scale have been slower to take shape. As a result, the company has adjusted its carbon and packaging goals, while leaving its water commitments unchanged.
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The revised climate targets are anchored in the Science Based Targets initiative (SBTi), which has validated Diageo’s approach for both near-term and long-term goals. The company now aims to cut its direct emissions, known as scope 1 and 2—by half by 2030 and to achieve net zero in its own operations by 2040. Across the supply chain, scope 3 emissions are set to fall by 26 percent by 2030, with a view to reaching net zero across the entire value chain by 2050. On packaging, Diageo intends to use recycled materials for half of its content by 2030, while also expanding its work in regenerative agriculture with a target of ten major programmes within the same timeframe.
Some earlier commitments have been retired. The goal of cutting packaging weight by 10 percent has been dropped on the grounds that it conflicted with the company’s growth trajectory. Likewise, a standalone target of 100 percent renewable energy by 2030 has been folded into the broader SBTi framework. Diageo, however, reaffirmed its pledge to source all electricity from renewable sources by 2030 through the RE100 initiative.
Water remains at the centre of Diageo’s sustainability strategy. The company considers it the most strategic climate risk to its business, especially in regions such as sub-Saharan Africa where water scarcity is already a pressing challenge. Since 2020, Diageo has carried out more than 150 replenishment projects, improved its water efficiency by more than 20 percent, and is on track to return more water to stressed catchments than it consumes by 2026.
Despite the recalibration, Diageo points to tangible progress. More than 85 percent of its global electricity use now comes from renewable sources. Scope 1 and 2 emissions have already fallen by almost a fifth against a 2022 baseline. In agriculture, the company has already exceeded its initial ambition of five regenerative programmes by 2030. In packaging, recycled content in PET bottles now stands at 43 percent, above the 2025 target of 35 percent.
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Ewan Andrew, Diageo’s President of Global Supply and Chief Sustainability Officer, described the updates as the outcome of experience gained over the past five years. “We now have a clearer understanding of what it takes to achieve our objectives, and the adjustments give us a stronger and more credible pathway forward,” he said, stressing the importance of collaboration with regulators, industry partners, and communities.
For Africa, the implications are significant. Diageo operates breweries and distilleries across the continent, from Kenya and Nigeria to South Africa, and relies heavily on agricultural supply chains for its products. The emphasis on regenerative farming could create opportunities for local farmers to build resilience against climate change, while the focus on recycled content speaks directly to Africa’s ongoing struggles with plastic waste and the need for circular economy solutions. The prioritisation of water also aligns with pressing regional concerns, where competition for scarce resources between industries, agriculture, and households continues to intensify.
The revisions are also a reminder of the role that international standards now play in shaping investment and operations. By grounding its climate roadmap in SBTi validation, Diageo signals to regulators, financiers, and partners across Africa the growing expectation that sustainability strategies be anchored in science-based frameworks. For local stakeholders, this could influence access to climate finance and shape future regulatory design.
Diageo’s experience illustrates a broader reality: setting ambitious goals is not enough. Delivery depends on the systems that surround those commitments—policy, infrastructure, and collaboration across the value chain. The company’s recalibration shows how global corporations adjust strategy when ambition collides with practical constraints. For Africa, it underlines the importance of creating enabling environments so that corporate sustainability ambitions translate into real impact on the ground.
