Modern Slavery Act Statement

MODERN SLAVERY ACT STATEMENT for the Financial Year ended 30 June 2019 This statement describes the activities Diageo is undertaking to Contents prevent slavery and human trafficking in our business operations Introduction 02 and supply chain. It covers all Diageo group companies worldwide What is modern slavery? 02 and has been published in accordance with the Modern Slavery Act 2015, the California Transparency in Supply Chains Act 2010 Our ambition 02 and all modern slavery-related legislation in other countries. Our 2020 Sustainability and Responsibility Targets 03 Our approach 03 Our Policies and Training 04 Our policies 04 Who these policies apply to 04 Training on these policies 05 Dedicated Modern Slavery training 05 Whistleblowing and breaches 05 Governance 06 Our supply network and assessment process 07 Human Rights Programme 08 Addressing risks 08 Responsible Sourcing Programme 10 Plans for the future 12 Modern Slavery Act Statement for the Financial Year ended 30 June 2019 02 Introduction INTRODUCTION What is modern slavery? Our ambition We produce our brands from over 150 sites Modern slavery is a crime and a violation of Diageo is a global leader in beverage alcohol across 26 countries. We directly employ over fundamental human rights. Modern slavery with an outstanding collection of brands 28,000 people. Our partners employ many It is our ambition to be one takes various forms, including slavery, servitude, across spirits and beer. Our products are sold more, supporting our global manufacturing, of the best performing, most forced and compulsory labour and human in more than 180 countries around the world. distribution, sales and marketing operations. trusted and respected trafficking, all of which have in common the Our brands include Johnnie Walker, Crown We have interdependent relationships companies in the world. deprivation of a person’s liberty by another in Royal, JεB, Buchanan’s and Windsor whiskies, throughout our value chain, from the farmers order to exploit them for personal or Smirnoff, Cîroc and Ketel One vodkas, Captain who grow our ingredients, to our employees commercial gain. Morgan, Baileys, Don Julio, Tanqueray and and contractors, to the consumers who buy Guinness. our brands. Through our full value chain, from We know that modern slavery is a global issue grain to glass, we are connected to many and is linked in part to the rapid rise in global It is our ambition to be one of the best communities. We want to make sure that migration. It exists in every region in the world performing, most trusted and respected throughout that chain – wherever we live, and in most types of economy, whether companies in the world. We know we will only work, source and sell – we are making a industrialised, developing or in transition. No achieve this ambition if we do business positive contribution. sector or industry can be considered immune sustainably and responsibly, and can or be complacent. demonstrate that this is the case. Diageo has a zero-tolerance approach to modern slavery. This statement describes what we are doing to prevent modern slavery in our business operations and our value chain. Modern Slavery Act Statement for the Financial Year ended 30 June 2019 03 Introduction Our 2020 sustainability Two specific commitments within our 2020 and specifically the risk of modern slavery. This and responsibility targets targets relate directly to modern slavery: framework details our commitment to acting Defining and delivering our sustainability goals ethically and with integrity in all our business Diageo has a well-developed is an integral part of our long-term business • act in accordance with the UN Guiding dealings, and to implementing and enforcing and embedded policy strategy and our commitment to making a real Principles on Business and Human Rights. systems and controls to prevent modern framework that addresses difference to the world in which we operate. slavery in our business and in our value chain. • deliver our responsible sourcing human rights, and specifically We are also committed to ensuring there is commitments with suppliers to improve Our sustainability and responsibility targets for transparency in our approach to tackling the risk of modern slavery. labour standards and human rights in our 2020 focus on the areas that are most material modern slavery in our own business and supply chains. to our business and that will contribute to throughout our value chain. long-term impact and success, delivering For additional information on our 2020 targets, value for Diageo, our stakeholders and please see our website. We expect the same high standards from all communities. Our 2020 targets draw on our our contractors, suppliers and other business achievements to date and our ambitions for Our approach partners, and we require our contractors and the future, are aligned with the UN Sustainable We are a signatory to the United Nations suppliers to comply with our policies and Development Goals (SDGs) and have been Global Compact and committed to acting in codes to combat the use of forced, compulsory developed by a diverse group of internal and accordance with the United Nations Guiding or trafficked labour, or anyone held in slavery external experts. We have mapped our Principles on Business and Human Rights or servitude, whether adults or children. We sustainable development strategy against the (UNGPs). We fully endorse and support the expect our suppliers in turn to hold their SDGs and, through our targets and ongoing principles enshrined in the International Bill of own suppliers to the same high standards. programmes, are supporting their delivery. Human Rights and the International Labour We recognise the need to work in partnership Organization’s (ILO) Declaration on We have regular contact with our trading with others in order to meet our ambitions Fundamental Principles and Rights at Work. partners to check, as far as possible, that they and the wider goals of the SDGs. are similarly committed to good practices in Diageo has a well-developed and embedded relation to their workforce and contractors. policy framework that addresses human rights, Modern Slavery Act Statement for the Financial Year ended 30 June 2019 04 Our Policies and Training OUR POLICIES AND TRAINING Our policy framework addresses human rights, and specifically the risk of modern slavery, and is supported by training. Our policies 1 2 3 Who these policies apply to Our Code and Human Rights Global Policy Our Code of Business Conduct (our Our Human Rights Policy details Our Partnering with Suppliers Standard apply to every one of our employees worldwide Code) is intended to embody our purpose Diageo’s position on our core human – our code for suppliers – has been regardless of their role or seniority, including and values. It sets out our collective and rights principles: valuing diversity; developed to help drive higher standards those in subsidiary companies and joint ventures individual commitment to conducting preventing harassment, discrimination, in our supply chain. It sets out the where Diageo has a controlling interest. business in accordance with them, and child labour and forced labour; expectations minimum standards we require of our with all relevant laws, regulations and on wages and working hours; and enabling suppliers, along with the wider We also expect all our business partners to industry requirements, as well as with a freedom of association to trade unions. sustainability aspirations we expect our adopt clear commitments on ethical business high standard of ethics and responsibility. You can read about our Human Rights suppliers to be working towards in areas like those in our Code, and any party operating Our Code (available in 20 languages) also Global Policy here. such as water management and emissions on Diageo’s behalf must ensure that their sets out the headline expectations on reductions. The standard is structured actions comply with our Code and global human rights, which are further detailed in around the following five focus areas of policies. Wherever possible, we contractually our Human Rights Global Policy. engagement with our suppliers: Business commit our business partners to adhere to our Integrity and Ethical Standards; Human Code and/or our Partnering with Suppliers We have reviewed our Code to ensure it Rights and Labour Standards; Health and Standard. We have also included an ‘end-to- remains in line with our policies (which are Safety; Environmental Impact; and end responsibility’ statement in our Partnering updated annually) and our business Sustainable Agricultural Supply Chains. with Suppliers Standard, setting out the practices. We have taken the opportunity You can read more about our Partnering expectation of our suppliers to promote the to ensure the language is as simple as with Suppliers Standard here. principles of the standard throughout their possible for our employees to understand. own supply chain, and to have the appropriate We launched the refreshed Code globally in processes in place to verify and demonstrate September 2019 and in all 20 Code languages applicable compliance standards Modern Slavery Act Statement for the Financial Year ended 30 June 2019 05 Our Policies and Training Training on these policies delivery, to ensure they remain relevant to the The training was rolled out to both procurement This includes breaches raised through our Diageo understands the importance of building risks our employees face in their roles. staff and a selection of key stakeholder and confidential whistleblowing line, SpeakUp, compliance capability across the business and influencing functions within the company, with which is available for all Diageo employees or we are working hard to engage our employees. Our Annual Certification of Compliance certifies recordings also made available upon request. business partners to use in order to raise that all employees at manager level and above concerns about a breach of our Code, global Our Code training – our way of assuring that all fully understand what is expected of them.

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