Our response to last year’s assurance
In addition to creating value for our business and our stakeholders, having a strategy that addresses our material impacts, and reporting against them appropriately, is part of the GRI. Having our materiality process externally assured helps give us confidence that we are following best practice.
Last year we commissioned KPMG to assure our reporting, focusing on the following three areas:
- Reliability of performance data for the year ended 30 June 2012 marked with the symbol ^ in the water and the environment section
- Diageo’s alignment with the GRI principles of materiality and stakeholder inclusiveness marked with the symbol ^ as described in the Sustainability & Responsibility Strategy section
- Diageo’s self-declared GRI application level marked with the symbol ^ in the GRI Index section.
In its public assurance statement, KPMG outlined a number of recommendations. The table below sets out these recommendations and explains how we have addressed them.
Response to 2012 assurance recommendations
|Topic ||Recommendations ||How we responded
||To date, Diageo’s local market strategy reviews have involved Diageo employees assessing the company’s material impacts and programmes. Diageo should extend these local market reviews to more markets and engage with external stakeholders to ensure consistency across markets in light of the new operating model. Furthermore, Diageo should continue to drive, embed and formalise the Sustainability & Responsibility Strategy process as a whole in its 21 markets.
||Our focus this year has been engaging external global stakeholders to provide input into our global strategic priorities. We worked with an external consultancy firm to interview over 40 external stakeholders to assess the key material issues that could affect Diageo and our stakeholders in the medium to long term.
|Sustainability and responsibility management – co‑ordination between markets and global
||Diageo should continue to drive, embed and formalise the Sustainability & Responsibility Strategy process as a whole in its 21 markets.
||Regional executives have been closely involved in the development of our global strategic priorities. Local general managers have also been involved in discussions of performance metrics, which will be developed in the next reporting year.
|Approach to acquisitions
||Diageo should set out how it will incorporate acquisitions into its Sustainability & Responsibility Strategy.
||As part of our global stakeholder study, we interviewed selected stakeholders in acquisition markets such as India and Brazil, and fed their insights into the development of our refreshed strategic priorities.