Diageo: Advancing Inclusive Procurement
Diageo: Advancing Inclusive Procurement
Diageo is a global leader in premium drinks, with over 200 brands sold in more than 180 countries. Inclusion and diversity are embedded across the organisation, from its workforce and brands to its supply chains and the communities in which it operates. Its approach is guided by a long-term commitment to sustainability and responsible business.
Inclusive sourcing forms a core pillar of Diageo’s environmental, social and governance (ESG) strategy, Spirit of Progress,where championing inclusion and diversity is a key priority. Through this strategy, Diageo aims to create a more inclusive supply chain by increasing access to opportunities for underrepresented and disadvantaged businesses worldwide.
Diageo’s inclusive procurement journey
To support this work, Diageo used Business in the Community (BITC)’s Inclusive Procurement Maturity Model (IPMM) to assess the maturity of its inclusive procurement approach globally.
Diageo’s inclusive procurement maturity score of 87.5% places the organisation within the “Innovation & Leadership” category. At this level of maturity, inclusive sourcing is no longer a standalone initiative, but a core business priority embedded across procurement strategies, policies, and performance metrics. Teams are supported by clear targets, robust data tracking, and leadership sponsorship at both global and market levels. Diageo has also moved beyond Tier 1 suppliers to influence wider supply chain practices and partnered with external organisations to shape industry standards and share best practice.
Reaching this stage has been a journey. One of the key learnings for Diageo has been the importance of building strong internal capability, equipping not only procurement teams but also wider stakeholders with the tools, training, and confidence to identify and engage diverse suppliers effectively.
Putting inclusive procurement into practice
Diageo’s inclusive sourcing programme In practice, this approach is embedded in day-to-day procurement activity.
In practice, this approach is embedded in day-to-day procurement activity. Diverse suppliers (defined as businesses that are at least 51% owned and operated by individuals from underrepresented groups1) are actively included in sourcing pipelines and tender processes, ensuring they have fair access to compete for business.
Diageo also recognises and celebrates impact through an annual Diverse Supplier of the Year award, which highlights outstanding partners, showcases their contribution, and provides greater visibility for their work.
This approach is not only about diversifying spend, but also about creating lasting impact by helping businesses thrive and communities prosper.
Watch how Diageo is putting inclusive procurement into practice across its supply chain.
Overcoming challenges
Like many organisations, Diageo initially faced challenges around supplier visibility, data availability, and internal awareness. To address this, the organisation strengthened partnerships with certification bodies, invested in improved data tracking, and built capability across procurement teams and wider stakeholders through training and clear accountability measures. Leadership sponsorship and embedding inclusive sourcing into core business priorities were also critical in scaling impact.
Driving impact through supplier diversity
By the last closed fiscal year FY25 (July 2024 to June 2025), Diageo had reached more than $1.07 billion USD in spend with diverse and disadvantaged suppliers, doubling investment since FY22. The organisation now works with more than 930 Tier 1 diverse suppliers across 28 countries, demonstrating the global reach and scale of its inclusive procurement programme.
This commitment has been recognised externally, including being named a Platinum Impact Sourcing Global Champion by WEConnect International2 in 2025, reinforcing Diageo’s position as a leader in responsible procurement.
Looking ahead
Diageo believes that a diverse supplier base drives innovation, strengthens resilience, and creates meaningful economic impact within communities. By continuing to embed inclusive sourcing into procurement strategies and decision-making, the organisation aims to build a supply chain that is more representative, agile, and future-ready.
Take the next step
Organisations looking to strengthen their approach to inclusive procurement should:
