Sustainability LIVE London – Diageo’s Sustainability Plan

November 19, 2024

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Deb Caldow and Dave Lütkenhaus share Diageo’s approach to sustainability and the company’s breakthrough innovation team

Sustainability is no longer optional—it’s a shared responsibility. At Sustainability LIVE London Global Summit, Deb Caldow and Dave Lütkenhaus from Diageo’s Breakthrough Innovation Team tackled a critical question:

Who should take the lead on sustainability, companies or consumers?

Their dynamic session emphasised the role of businesses in driving change while delivering products that meet consumer expectations for quality and convenience.

Deb Caldow, Marketing Sustainability Director at Diageo

Closing the consumer ‘say-do’ gap

Deb Caldow Marketing Sustainability Director at Diageo opens by acknowledging a prevalent issue—the ‘say-do’ gap in sustainability.

While 68% of beverage consumers express a desire to live more sustainably, only 12% translate that intention into action.

“We’ve put the burden on consumers for too long,” Deb says asserting that companies must offer better, more sustainable solutions that are easy to adopt and competitively priced.

She showcases examples from other sectors that effectively balance consumer needs with sustainability. For instance, Ariel’s cool-clean technology not only lowers energy consumption but also reduces household bills.

Similarly, brands like Smol and Raindrop excel by combining convenience with eco-conscious practices, such as offering refillable and lightweight solutions.

Diageo’s innovation principle – sustainability as an ‘and,’ not an ‘or,’ – guides the company’s efforts to create solutions that simultaneously benefit people, the planet and profits.

Deb stresses, “We believe in the triple win—solutions that support people, the environment, and our shareholders.”

Pioneering sustainable packaging

Dave Lütkenhaus, Sustainability Innovation Director at Diageo focuses on the practical aspects of Diageo’s sustainability strategy, particularly in packaging innovation.

With packaging accounting for a third of the company’s Scope 3 emissions, the team is reimagining materials and processes to reduce its environmental impact.

One highlight was Diageo’s paper bottle prototype, which debuted at a food festival in Barcelona. Composed of 90% paper with a thin plastic liner and foil seal, the bottle offers a 50% reduction in carbon emissions compared to traditional formats.

“This is a step towards progress over perfection,” Dave explains, adding that consumer feedback from the trial is shaping future iterations.

The team is also exploring circular economy solutions, such as refillable bottles for bars and partnerships with EcoSpirits to distribute spirits in kegs. These innovations aim to reduce waste while maintaining the convenience and quality customers expect.

Deb Caldow, Marketing Sustainability Director and Dave Lütkenhaus, Sustainability Innovation Director at Diageo

Balancing innovation with sustainability

During the Q&A session, audience members address the environmental trade-offs of new materials. Deb and Dave explain how their sustainability screener evaluates innovations across multiple dimensions, including water usage, carbon footprint and social impact.

“We don’t look at innovations one-dimensionally,” Deb says. “What we don’t need are solutions that score our own goals in other areas.”

Another question focuses on the challenges of sourcing sustainable ingredients. With ingredients comprising another third of Diageo’s Scope 3 emissions, the team is optimising processes to reduce both carbon and water impacts, aiming for a double win in efficiency and sustainability.

Dave Lütkenhaus, Sustainability Innovation Director at Diageo

Progress over perfection

Deb and Dave conclude with a message of optimism and determination.

By flipping the ‘say-do’ gap, Diageo aims to empower consumers with high-quality, sustainable solutions. “Companies should take the lead, but with the consumer at the centre,” Dave emphasises.