Climate Week NYC: Diageo’s President of North America Supply

In a fireside chat at Sustainability LIVE Climate Week NYC, Marsha McIntosh, President of North America Supply for Diageo North America, outlined the company’s sustainability initiatives, from building carbon-neutral facilities to innovating water and energy efficiency across its North American operations. 

Marsha discusses how Diageo is making progress towards its 2030 climate goals through the company’s “2030 Spirit of Progress" action plan.

Diageo’s decarbonisation strategy

Diageo has set ambitious targets to be net zero by 2030, focusing on two primary pillars: water conservation and decarbonisation. 

Marsha notes that Diageo has already achieved a major milestone by establishing North America’s first carbon-neutral distillery in Kentucky.

She continues to highlight the company’s drive to achieve net-zero: “In 2020, we had a clear roadmap. And as we as I look to the future in terms of the roadmap, we're well on our way.”

The Kentucky facility is just one example of Diageo’s decarbonisation efforts. 

In Canada, Diageo has partnered with Hydro-Québec to build a substation close to its facility. Marsha explains that Diageo tailors its approach based on local resources to ensure cost-effective and sustainable energy solutions.

Lessons learned in sustainability partnerships and operational efficiency

Later in the fireside chat, Marsha shares insights from Diageo’s journey, highlighting the importance of selecting experienced partners for sustainability projects. 

Reflecting on their first carbon-neutral facility in Kentucky, she notes that both Diageo and its partner were early in their sustainability journeys, which led to a collaborative but slower process. 

“We were learning together,” she says.

This experience informed Diageo’s later projects, where they partnered with companies that had more established expertise in decarbonisation.

Harnessing technology for sustainability

Technology and innovation play a central role in Diageo’s sustainability strategy. 

One innovative example is Diageo’s use of drones and AI to manage water resources more efficiently in Mexico’s water-stressed tequila-producing regions. 

Marsha explains that “in a water-stressed area, we are thinking about how we can be as efficient as possible with the use of water. So we now have drones that actually fly over all of our agave fields that look at the land mass and how much water and fertilisation there is, then they take that back to us.”

This has allowed the company to become “more intentional in terms of how we fertilise and how we use water”, Marsha says. She explains that this precision agriculture approach has proven especially valuable in areas facing water scarcity.

Regional approaches to renewable energy

Diageo’s renewable energy strategy adapts to regional resources and opportunities, underscoring the need for customised sustainability approaches. 

In Africa, for instance, Diageo’s facilities are powered by solar energy and biomass, while in Canada, hydroelectric power provides a renewable energy source.

“When we go into a region, we look at what's available in the region, what's makes sense in the region, and then applying that technology,” Marsha explains, highlighting that Diageo’s goal is to implement renewable energy sources that are both environmentally and economically sustainable for each operation.

Marsha stressed that Diageo’s approach is not “one-size-fits-all,” even within North America. 

By considering local resources, Diageo ensures that its operations align with regional sustainability opportunities and constraints.

Engaging customers and employees in sustainability

Marsha acknowledges the increasing importance of sustainability to Diageo’s customers, noting that it has become a strong differentiator for brands like Bulleit Bourbon, which is marketed as a frontier whisky with a sustainability focus. 

Diageo’s sustainability initiatives resonate with consumers, creating a competitive advantage as environmental awareness grows. Marsha says that the company is “accessing new consumers through our brands in terms of telling the story around how sustainable our brands are.”

Bulleit’s single malt variety, for example, is packaged in 100% recycled glass, a choice driven by customer demand for sustainable products.

Looking forward: Diageo’s 2030 sustainability roadmap

With its "Society 2030" action plan, Diageo aims to lead the beverage industry in sustainable practices. 

Diageo’s priorities include maintaining its commitment to carbon neutrality while addressing biodiversity and water scarcity in regions where it operates.

Through strategic partnerships, innovative technology and regional adaptability, Diageo is setting a benchmark for sustainability in the beverage industry.

Marsha urges companies to view sustainability as both a responsibility and an opportunity, encouraging others to seek efficiency gains that can fund further environmental initiatives. 

By embedding sustainability into its core business operations, Diageo aims to achieve its 2030 targets and inspire others across the industry to adopt sustainable practices.

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