Diageo has launched a £5 million investment to restore Scotland’s degraded peatlands. The goal is to revive 3,000 hectares and strengthen sustainable whisky production. Peatlands protect biodiversity, store carbon, and manage water vital for whisky’s main ingredient. This project marks Diageo’s strong commitment to environmental sustainability and Scotch whisky’s long-term future.
Diageo will collaborate with Caledonian Climate to lead large-scale restoration projects. Together, they aim to boost carbon storage, enhance biodiversity, and improve water quality across fragile Scottish landscapes. Ewan Andrew, Diageo’s President of Global Supply and Chief Sustainability Officer, emphasized that restoring peatlands is crucial for tackling climate change and protecting natural resources. He also noted that peatlands maintain whisky’s smoky flavour while conserving ecosystems.
The initiative ensures Diageo restores more peat than it uses. This approach allows the company to preserve the authentic smoky character of its whiskies while reducing environmental impact. Through shared action with other partners, Diageo aims to multiply restoration benefits across Scotland’s distilling regions.
Caledonian Climate will guide the programme, supported by experts, landowners, communities, and NGOs. The collaboration also includes Wetlands International, which will help monitor progress in carbon capture and water resilience. Coenraad Krijger, CEO of Wetlands International, stated that healthy peatlands play a vital role in mitigating floods and droughts while fighting climate change.
Moreover, Diageo’s restoration plan aligns with public efforts like the Scottish Government’s Peatland Action Fund. The company will seek additional funding from other distilleries to expand project impact. Initial work includes a collaboration with the RSPB at the Oa nature reserve on Islay, a key peatland restoration site.
Diageo is also modernizing its maltings operations to reduce peat use in whisky production. Trials that began in 2024 have already achieved a five percent reduction in peat usage per tonne of malted barley. The company is testing peat smoke recirculation and reusing displaced peat from other projects to minimize waste.
By applying a science-based approach, Diageo plans to share findings across the Scotch whisky industry. This will inspire broader sustainability practices among whisky producers.
Additionally, the announcement coincides with the appointment of Sir Dave Lewis as Diageo’s new CEO, effective January 2026. His leadership aims to drive the company’s next phase of sustainable growth, ensuring whisky production continues to thrive in harmony with nature.
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