Our value chain – suppliers
Here we explain the basis of calculation for:
- Setting baseline data and targets
- Local sourcing in Africa
- SEDEX self-assurance
- Audits of highest-risk suppliers
Setting baseline data and targets
All performance figures against targets are for the period from 1 July 2012 to 30 June 2013.
Local sourcing in Africa
Our target is to source 70% of all our raw materials locally in Africa by 2015. Our definition of local raw materials is all materials within Africa and used in our African operations to produce our brands; this includes raw materials of both agricultural and non‑agricultural origin.
Self-assessment data is provided to us in reports run from the Supplier Ethical Data Exchange (SEDEX), a not-for-profit organisation that enables global 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 Diageo, linked their operating sites with ours, and then completed the self-assessment or any other performance-related data. We compare these results with the total number of suppliers we have identified as potentially high risk (considering industry type, location, or association with our brand).
Audits of highest-risk suppliers
Audits are conducted by independent third-party auditing companies, trained to SEDEX Members Ethical Trade Audit protocols or equivalent. Of total audits, four were requested directly by Diageo, and 130 were requested directly by others. Those requested by others remain valid through the AIM‑PROGRESS mutual recognition process or through adherence to our own audit requirements. All were accessed via the SEDEX platform on which the supplier owns the audit data.
The second tier merchandising supplier audits were conducted either by independent third-party auditing companies, or by the merchandising suppliers’ internal audit teams.