Partnering with Caledonian Climate, Diageo will identify and co-fund projects that help to restore depleted peatlands, increase carbon storage, enhance biodiversity and improve water management.

“We are taking a multi-pronged approach to peatlands through restoration and longer-term innovations. Through collective action with other partners and producers, we’ll restore many more times the amount of peat than we will use. This ensures we can maintain the traditional smoky flavour of numerous Scotch whiskies, whilst contributing to the conservation of Scotland's landscapes,” said Ewan Andrew, president of global supply and chief sustainability officer at Diageo.

The activity will be managed by Caledonian Climate, in partnership with scientific experts, landowners, communities, NGOs and others, with the aim to develop improved scientific understanding of the environmental and other benefits of peatlands. 

Impacts will be tracked across carbon, water and biodiversity, supported by a partnership with Wetlands International and in collaboration with other conservation groups.

Alongside the restoration programme, Diageo is also innovating its maltings operations to ensure more efficient use of peat, reducing the peat requirement per ton of malted barley, which has seen a 5% reduction since trials began in spring 2024, the company said.  

Diageo is also exploring how peat smoke can be recirculated in the maltings, and the viability of using displaced peat from other sources, such as in the erection of electricity infrastructure, being used in Scotch whisky production. Diageo intends to share its findings with the wider industry.