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Principles of management and reporting

In managing our sustainability programme, and describing it in this report, we aim to adopt the principles of the Global Reporting Initiative (GRI) and the AA1000APS Framework.

This table sets out how our report responds to each element of the frameworks.

Principle Reporting standard What it means Our response
Stakeholder inclusiveness^ GRI & AA1000APS The report should identify stakeholders and explain how the reporting organisation has responded to their reasonable expectations and interests.

We set out who our key stakeholders are, explain how we have engaged them this year and identify key areas of the report that address their areas of interest. (see ‘Engaging stakeholders’ in ‘Our approach’).

We aim to formalise our reporting process in future years to capture and respond better to the views of our stakeholders around the world.
Materiality^ GRI & AA1000APS

The report should cover topics and indicators:

  • that reflect the organisation’s significant economic, environmental, and social impacts or
  • that would substantively influence the assessments and decisions of stakeholders.

We have recently begun to develop a formal materiality process for our strategy and reporting (see our section on Materiality). Currently, where possible, we incorporate the views of a representative group of internal and external stakeholders as well as other trend analysis.

We believe our report addresses the issues that are considered most material to our stakeholders as we currently understand them. To learn more click here.

Our aim is to report fully on issues deemed highly material; to explain our approach to those deemed of medium materiality.
Sustainability context GRI The report should present the organisation’s performance in the wider context of sustainability. Where appropriate, we give the context for each impact area in the executive summary of that section, and, where possible, explain the local impact of our operations, for example highlighting our impact on water in water-stressed areas.
Completeness GRI Coverage of the material topics and indicators and definition of the report boundary should be sufficient to reflect significant economic, environmental, and social impacts and enable stakeholders to assess the reporting organisation’s performance in the reporting period.

Our coverage of material topics is explained in the ‘scope and boundaries’ section.

In general:

  • Financial data represent the results of wholly-owned operations, subsidiaries and the attributable share of associates and joint ventures
  • Social data for the most part represent wholly-owned businesses and joint ventures in which Diageo has a controlling share
  • Environmental data represent all sites over which Diageo has full operational control, including offices.
Balance GRI The report should reflect positive and negative aspects of the organisation’s performance to enable a reasoned assessment of overall performance. We report against stretching targets and against GRI indicators, whether or not our performance is good. This gives a balanced view of our impacts, which have been defined taking into account the views of a range of stakeholders.
Comparability GRI Issues and information should be selected, compiled, and reported consistently. We continue to report against GRI as well as targets disclosed in prior years to ensure that readers can compare this year’s performance with that of previous years.
Accuracy GRI The reported information should be sufficiently accurate and detailed for stakeholders to assess the reporting organisation’s performance. We explain our methodology for calculating performance against targets (see ‘Reporting methodologies’ in this section). KPMG has provided limited assurance for the water and carbon data disclosed in this report.
Timeliness GRI Reporting should occur on a regular schedule and information made available in time for stakeholders to make informed decisions. This report is published with our Annual Report every year. The data in both reports reflect performance in the year ended 30 June 2011.
Clarity GRI Information should be made available in a manner that is understandable and accessible to stakeholders using the report. We aim to make our report easy to understand for a wide audience. Wherever possible, we define terminology and use visuals to make our messages clear.
Reliability GRI & AA1000APS Information and processes used in the preparation of the report should be gathered, recorded, compiled, analysed, and disclosed in a way that could be subject to examination and that establishes the quality and materiality of the information. KPMG has externally assured this report according to the AA1000APS principles, and has provided limited Type 2 assurance.
Responsiveness^ AA1000APS The report should explain how the organisation responds to its stakeholders and is accountable to them. The principle covers two things: responsiveness in terms of material issues, and responsiveness in terms of communication (reporting).

We aim to respond to the concerns that surface through our stakeholder engagement activities. We have set up programmes, policies and targets for areas which we have determined to be material, however we recognise that the quality of our performance metrics and monitoring tools are not consistent across our agenda. This was a theme we heard from stakeholders this year, and we aim to address it in future.

See the section Responding to stakeholder concerns for more information on how we comply with this principle.

Footnotes

^Covered by KPMG's limited assurance scope.

 

GRI indicators in this section

3.5 Defining report content