Green Strategy for

Global Operations and

Logistics
Presentation: Group IX
Prashant Kumar (29) Saurav Kumar (40)
Anu Sharma (48) Nitin Kharbanda (49)
Industry: Consumer
Staples
Comparison:
Diageo and Pernod
Ricard Your Logo or Name Here
Parameters Diageo Pernod Ricard
Started in 1997, but the brands presence 40 year old company holding brands
Origin
since 17th Century since 17th Century
French company based out of France
Country British multinational based out of London
paris
Diageo operate in 5 continents and 180 5 continents, operate same in 180
Global Reach
countries countries

Market Value 73B GBP 40 B Euro

Share Price as on 26
2684 GBP 135 Euro
March 2020

No of Employee 29917 18900

No of Brands under
60 Brands in different caterogies 37 International Brands
umbralla

Annual Turnover 8.98B GBP Euro 12,867 Million

Operation Profit 1.57B GBP Euro 3248 Million

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Description of Supply Chain

Diageo- The core strategy is lies with in three parameters as Ensuring expected standards, building
capability and Supporting value chains with local businesses. They achieve the same by following
parameters.
 Responsible sourcing- under this they set guidelines for suppliers across the globe, initially screening
of suppliers was done, registration with SEDEX and then follow the registration for supplies.
 Reducing environmental impact-Rain fed agriculture, also focus on the usage of water to produce
products. Along with this the carbon footprint was also taken into consideration as 2/3 of them come
from supply chain and the last in this would be focusing on sustainable packaging by 2020 all the
packaging material used in paper and board will be sustainable.
 Sustainable Agriculture-Member of Sustainable Agriculture initiative (SAI) platform and doing farm
sustainable Assessment.

Pernod Ricard- the Pernod Ricard is doing the Infor demand planning to meet the demand
of back end along with commercial team asking for raw material. They also use the AI for
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better forecasting of demand of raw material.
Diageo: Matching the SDG Goals with CSR
Report

Diageo-the CSR report of Diageo is talking about reduction of greenhouse gases by 44% in direct operation,
improved water efficiency by 43%, electricity 100% taken by renewable sources in UK. In the sustainability report
they talked about empowering women employees in the organization on all the levels, sustainable supply chain
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model, protecting the water and environment as talked about in the CSR goals.
Pernod Ricard: Matching the SDG Goals with CSR Report

PR doesn’t have CSR report additional to the annual report. As per annual report of 2018-2019 they have specified
the sustainability parameters mentioned below.

 Empowering the employees-they are helping local communities as per UN SDG goal # 15 life on land along with
UN SDG # 6 for clean water and sanitation.
 Developing the local communities- all the partners involved with organization since 2012 and company is
helping them to develop themselves.
 Promoting responsible consumption-they were organizing 590 responsible parties for students in which 3,70,000
students attended the same and trained about responsible drinking.
 Protecting the planet- this is the most important point at the CSR, in which they disclose about 20% less
reduction of water usage against last year and 30% reduction on carbon emission.
 Supplier have signed the sustainable principles.

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A Comparison
Diageo
12th in the Gartner Supply chain
Provide water and sanitation to
2,32,000 people in Africa
Ranked in Dow Jones
Sustainability index
4th Rank in Thomson Global
Diversity Index
Signatory of UN global compact
Awarded AA in CDP for carbon
and water performance, in top
1% of global companies
36% senior managers are
women’s
Pernod Ricard
Taking care of 3 UN SDG Goals
end poverty, Protect the planet,
Peace and prosperity
Taking care of 3 UN SDG Goals
Regenerative agriculture schemes in
its vineyards in - Argentina, California,
Spain, Australia, China
Targets 100% water
replenishments in regions such as
India and Australia by 2030
Plans to move towards fully
renewable electricity in all its
facilities
Water by 2030 per 1 litre alcohol
consumption
reduced by 20%
carbon emissions fallen by 30% per
unit of production
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Conclusion

UN SDG • Diageo is taking about 12 goals

• Pernod Ricard is talking about 3 goals
Goals
• Diageo, unlike Pernod Ricard publishes separate CSR Report
for transparency
Separate • Diageo engaged 128 suppliers to disclose their water
CSR management practices
Report • Diageo improved water efficiency by 43.8% against our 2007
• baseline
Diageo gest recognized by multiple Agencies, Pernod has now got
into the act
Awards & • Top ranked beverage companies in the FTSE4 Good index series
Accredita • Diageo features on the Ethibel Sustainability Index (ESI) Excellence
tion Global
• Awarded AA in CDP for carbon and water performance, in top 1% of
global companies
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