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Scope and boundaries

This report is for all our stakeholders. It explains our key impacts across our value chain and sets out our goals, strategy, and performance for the year.

Programmes and goals

The report outlines our programmes, describing our goals of:

The report refers back to certain targets set out in our 2011 Sustainability & Responsibility Report and assesses our progress in meeting them. This year we refreshed our approach to sustainability and responsibility. We interviewed more than 40 external stakeholders to understand their social and environmental concerns for our business and industry, taking stock of our changing geographical footprint and any new implications for our Sustainability & Responsibility Strategy. We will use this feedback to refine our reporting areas and targets in future years.

Reporting boundaries

This report covers the global operations of Diageo plc in the financial year ended 30 June 2013. Dates refer to financial years unless otherwise stated. The following are boundaries for the various types of figures found throughout the report.

  • Financial data includes the results of the company and its subsidiaries, together with Diageo’s attributable share of the results of associates and joint ventures. The results of subsidiaries acquired or sold are included from, or up to, the date that control passes, as indicated in the acquisitions table below. A subsidiary is an entity controlled, directly or indirectly, by Diageo plc. Control is the power to govern the operating and financial policies so as to obtain benefits from its activities. On the acquisition of a business, or of an interest in an associate or joint venture, fair values, reflecting conditions at the date of acquisition, are attributed to the net assets including identifiable intangible assets and contingent liabilities acquired.
  • Alcohol in society includes data such as for all sites for which Diageo has full operational control. This year’s report includes data from three newly acquired businesses: Mey İçki in Turkey, Meta Abo Brewery in Ethiopia, and Ypióca Bebidas S.A., in Brazil.
  • Environmental data is collected and reported for all sites where Diageo has full operational control. We report environmental data for acquired businesses as soon as practical, and no later than after we collate one full year’s financial data. This year’s report includes environmental data from four newly acquired businesses: Zacapa in Guatemala, Mey İçki in Turkey, Meta Abo in Ethiopia and Sichuan Shuijingfang Co,. Ltd in China.
  • Socio-economic development data includes charitable giving on behalf of the company, all subsidiaries, and the independent Diageo Foundation, as defined by the London Benchmarking Group. This year’s report includes data from three newly acquired businesses: Mey İçki in Turkey, Meta Abo in Ethiopia and Ypióca in Brazil.
  • Our people: safety data has the same boundary as environmental data, described above. In addition, we include all off‑site employee work-related risks (driving on public roads and activities at third-party locations). For other data in the our people section, we have included the results of the company and its subsidiaries, as well as the following three newly acquired businesses Mey İçki in Turkey, Meta Abo in Ethiopia and Shuijingfang in China.
  • Compliance and ethics data such as breaches includes information for all sites for which Diageo has full operational control. The results of subsidiaries acquired or sold are included from, or up to, the date that control passes, as indicated in the acquisitions table below.
  • Supplier data includes all business contracts, short- or long-term, which Diageo upholds for the purchase of raw materials, packaging, logistics and transportation, marketing materials, and information services and business support.
  • Food safety and quality data is collected and reported for all sites where Diageo has full operational control. While new acquisitions adopted our global measures within the first year, performance is being tracked outside the scope of this report until a reliable baseline has been established.

Uncertainty and estimates

While we make every effort to capture all information as accurately as possible, it is neither feasible nor practical to measure all data with absolute certainty. Where we have made estimates or exercised judgement, this is highlighted within these reporting guidelines.

Significant changes in our operations

Diageo has made a number of acquisitions of brands, distribution rights, and equity interests in premium drinks businesses over the last three years, including those in the table below.

Acquisitions
Acquisition Date acquired Consideration1
£ million
Location Principal brands acquired
25.02% equity interest in United Spirits Limited 13 May – 4 July 2013 594 India McDowell’s Nr 1 family and other Indian whisky, brandy and rum products
50% equity interest in United National Breweries traditional sorghum beer business 27 June 2013 23 South Africa Chibuku, Leopard Special and Ijuba sorghum beer products
93% equity stake in SJF Holdco which owns a 39.7% controlling equity interest in Shuijingfang 27 January 2007 – 7 June 2013 (control of Shuijingfang from 29 June 2012) 2672 China Shui Jing Fang Chinese white spirit
100% of the equity share capital of Ypióca Bebidas S.A. 9 August 2012 284 Brazil Ypióca cachaça
100% of the equity share capital of Meta Abo Brewery Share Company SC 9 January 2012 153 Ethiopia Meta beer
49% of Diageo Philippines Inc not already owned by the group 14 December 2011 15 Philippines Distribution company
20% of Kenya Breweries Ltd not already owned by the group 25 November 2011 134 Kenya Tusker and other beer products
45.5% of the equity share capital of Hanoi Joint Stock Company (Halico) 13 May 2011 – 24 June 2012 60 Vietnam Vodka Hanoi
100% of the equity share capital of Mey İçki Sanayi ve Ticaret A.Ş. 23 August 2011 1,260 Turkey Yeni Raki, Terkirdağ Raki, Istanblue vodka
50% controlling equity stake in Rum Creations Products Inc. 5 July 2011 148 Guatemala Zacapa rum
51% equity stake in Serengeti Breweries Limited via a 50.03% equity-owned subsidiary 22 October 2010 60 Tanzania Serengeti lager
20% equity stake in LNJ Group 30 September 2010 6 United States 22 Marquis sparkling liqueur
  1. Includes net borrowings acquired but excludes the value of put options and transaction costs.
  2. Excludes cash acquired in Shuijingfang when first consolidated.

For more information see our 2013 Annual Report.

Reporting frameworks in this section