Diageo PLC

##### Governance
Given the importance of the risks, we have governance processes
in place to ensure that we consider and factor climate and nature risk
into our business operations and planning processes. To supplement
our 'Spirit of Progress' governance (summarised on page 50),
our sustainability teams and senior leaders hold monthly sustainability
performance reviews. We track water efficiency and carbon reduction
projects and hold quarterly strategic business reviews focusing on
multi-year progress and plans. Significant risks identified are escalated
to enterprise risk management forums at group level. We oversee
climate and nature risk specifically at the highest level of the company,
managing through these governance structures and processes:

- Executive sponsorship and responsibility is shared jointly between
the President, Global Supply Chain & Procurement and Chief
Sustainability Officer (Ewan Andrew) and the Global Corporate
Relations Director (Daniel Mobley).

- They are supported by our cross-functional Climate and Nature Risk
Steering Group.

- The Climate and Nature Risk Steering Group provides regular updates
to the executive sponsors and the Board which allows for potential risks
and opportunities to be part of strategic decision-making.

- The Board retains ultimate responsibility for the oversight of climaterelated risks and opportunities.

- Additionally, several cross-functional working groups are responsible
for addressing the key risks and opportunities we identify.

- Any impacts on our consolidated financial statements from climate
and nature risks and performance against non-financial metrics are
shared with and considered by the Audit Committee annually.

- Any potential financial impacts from climate and nature risks are
also reviewed and considered by the Audit Committee.

Strong internal governance structures and clear lines of accountability ensure the commitments in this strategy are owned. Diageo's Executive Committee, chaired by our Chief Executive, is accountable for the overall strategy and allocates responsibility for implementation to different parts of the business. At Diageo board level, our climate strategy is reviewed twice a year.

The CSR and ESG Committee of the Board reviews and oversees implementation of the Sustainability Policies of the Company on an annual basis. In addition, the Committee and the Board also review the progress of implementation of the Company's CSR Programmes, on a quarterly basis against Society 2030 vision and targets. [...] Yes, Corporate Social Responsibility and Environmental, Social and Governance Committee (CSR & ESG Committee) of the Board is responsible for decision making on sustainability related issues. The CSR and ESG Committee has various responsibilities, including reviewing, overseeing, and monitoring the Company's CSR and ESG matters.

Core mitigations: [...] All opportunity and risk is assessed and detailed quarterly in a public policy dashboard to ensure the right resources are deployed against each."
"The group has not given any money for political purposes in the United Kingdom during the year. Our US based subsidiary, Diageo North America, Inc. made contributions solely at its own discretion to non-UK political candidates and committees in the United States, where it is common practice to do so. Contributions of approximately $1.1 million (2023: $1.0 million) were made by Diageo North America, Inc. during the financial year to US state and local candidates and committees, consistent with applicable laws. Additionally, our Australian based subsidiary made contributions, solely at its own discretion, totalling approximately $0.01 million. The US contributions reflect no endorsement of a particular political party, and contributions were made with the aim of promoting a better understanding of our business and our views on commercial matters, as well as a generally improved business environment.

Strong internal governance structures and clear lines of accountability ensure the commitments in this strategy are owned. Diageo's Executive Committee, chaired by our Chief Executive, is accountable for the overall strategy and allocates responsibility for implementation to different parts of the business. At Diageo board level, our climate strategy is reviewed twice a year.

The CSR and ESG Committee of the Board reviews and oversees implementation of the Sustainability Policies of the Company on an annual basis. In addition, the Committee and the Board also review the progress of implementation of the Company's CSR Programmes, on a quarterly basis against Society 2030 vision and targets. [...] Yes, Corporate Social Responsibility and Environmental, Social and Governance Committee (CSR & ESG Committee) of the Board is responsible for decision making on sustainability related issues. The CSR and ESG Committee has various responsibilities, including reviewing, overseeing, and monitoring the Company's CSR and ESG matters.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]We monitor and engage when necessary as Diageo or through relevant industry associations on ESG regulations that impact our operations around scope 1, 2 and 3. This is always done in full alignment with Diageo's Society 2030 climate priorities. This means that we will support and, in some cases, push for a stronger regulatory framework when this is necessary to achieve our targets or will engage with regulators when we believe alternative policies will help accelerate the decarbonization of our operations or make more sense from a carbon footprint perspective.

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]We monitor and engage when necessary as Diageo or through relevant industry associations on ESG regulations that impact our operations around scope 1, 2 and 3. This is always done in full alignment with Diageo's Society 2030 climate priorities. This means that we will support and in some cases push for a stronger regulatory framework when we believe this is necessary to achieve our targets or will engage with regulators when we believe alternative policies will help accelerate the decarbonization of our operations or make more sense from a carbon footprint perspective.