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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 over the past year.

Programmes and goals

The report outlines our programmes, describing our goals to:

The report refers back to certain targets set out in our 2011 Sustainability & Responsibility Report and assesses our progress in meeting them. We continue to refine our strategy, programmes, and reporting areas using feedback we receive from stakeholders through our engagement programme.

Reporting boundaries

This report covers the global operations of Diageo plc in the financial year ended 30 June 2012. Dates refer to financial years unless otherwise stated. The following are boundaries for the various figures found throughout the report:

  • Financial data include 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 sold or acquired are included up to, or from, the date that control passes. A subsidiary is an entity controlled, directly or indirectly, by Diageo plc. Control is the power to govern the operating and financial policies of the subsidiary 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. Adjustments to fair values include those made to bring accounting policies into line with those of the group.
  • Environmental data is collected and reported for all sites where Diageo has full operational control, and as defined by the World Resources Institute / World Business Council for Sustainable Development (WRI / WBCSD) Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition. We believe that by including 100% of environmental data from all offices and production sites under our operational control, our environmental reporting will be consistent with reporting on other operational activities. Environmental data from joint ventures and associates (where Diageo does not have full operational control) have not been included within the reported figures.
  • Socio-economic development data include charitable giving on behalf of the company, its subsidiaries, and the independent Diageo Foundation as defined by the London Benchmarking Group.
  • Supplier data include 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.
  • All other data (including alcohol in society, governance and ethics, and people) is reported for all sites (office and production) where Diageo has operational control.

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 past three years, including those in the table below.

Acquisitions

Date acquired Consideration1
£ million
Location Principal brands acquired Status
Ypióca 9 August 2012 284 Brazil Ypióca cachaça Acquisition of 100% of the equity share capital of Ypióca Agroindustrial Limitada
Meta 9 January 2012 153 Ethiopia Meta beer Acquisition of 100% of the equity share capital of Meta Abo Brewery Share Company SC
Philippines 14 December 2011 15 Philippines Distribution company Acquisition of 49% of Diageo Philippines Inc not already owned by the group
Kenya Breweries 25 November 2011 134 Kenya Distribution company Acquisition of 20% of Kenya Breweries Ltd not already owned by the group
Halico 13 May 2011 – 24 June 2012 60 Vietnam Vodka Hanoi Acquisition of 45.5% of the equity share capital of Hanoi Joint Stock Company (Halico)
Mey İçki 23 August 2011 1,260 Turkey Yeni raki, Terkirdağ raki and Istanblue vodka Acquisition of 100% of the equity share capital of Mey İçki Sanayi ve Ticaret A.S.
Quanxing and Shuijingfang 27 January 2007 – 14 July 2011 (control of Shuijingfang from 29 June 2012) 692 China Shui Jing Fang Chinese white spirit Acquisition of 53% equity stake in Sichuan Chengdu Quanxing Group Company Ltd (Quanxing). Quanxing owns a 39.7% controlling equity interest in Sichuan Shuijingfang Co., Ltd.
Zacapa 5 July 2011 148 Guatemala Zacapa rum Acquisition of a 50% controlling equity stake in Rum Creations Products Inc.
Serengeti 22 October 2010 60 Tanzania Serengeti lager Acquisition of a 51% equity stake in Serengeti Breweries Limited via a 50.03% equity owned subsidiary
22 Marquis 30 September 2010 6 United States 22 Marquis sparkling liqueur Acquisition of a 20% equity stake in LNJ Group
Nuvo 29 June 2010 29 United States Nuvo – vodka based sparkling liqueur Acquisition of an additional 28.75% equity interest in the London Group taking the group’s interest to 71.25%
  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 annual report.

Reporting frameworks in this section