Climate & Environment

Diageo: Water crisis threatens alcoholic drinks supply

The maker of Guinness and Baileys says water supply poses the most significant climate change-related risk to its business

A Diageo production line. Picture: Bloomberg

Diageo, the world’s biggest spirits company, is worried that climate change is going to make scarce the one ingredient that’s essential for making all of its alcoholic drinks: water.

Water security poses the most significant climate change-related risk for the maker of Guinness and Baileys according to Michael Alexander, global head of water, environment and agriculture sustainability at Diageo, which had 43 sites globally in water-stressed areas last year.

“You could be with the most ...