UK: Diageo invests in restoring up to 3,000 hectares of degraded peatland across Scotland

Diageo has announced a £5 million investment over the next five years to restore up to 3,000 hectares of degraded peatland across Scotland, Foodbev Media reported on November 13.

The initiative, delivered in partnership with environmental group Caledonian Climate, aims to boost carbon storage, enhance biodiversity and improve water management in key landscapes critical to the Scotch whisky industry.

Peat, which gives many Scotch whiskies their distinctive smoky flavour, plays a vital environmental role beyond whisky production. Healthy peatlands act as natural carbon sinks and help regulate water flow and quality, a crucial factor given that water is the number one ingredient in Scotch. However, many of Scotland’s peatlands have become degraded, releasing carbon and threatening local ecosystems.

Ewan Andrew, president of global supply and chief sustainability officer at Diageo, said: “Restoring and protecting Scotland’s peatlands is essential to addressing climate change, protecting biodiversity and reducing carbon emissions“.

“We’re taking a multi-pronged approach through restoration, innovation and collaboration, to restore many times more peat than we use, ensuring the smoky character of Scotch can continue sustainably for generations.”

The restoration programme will be managed by Caledonian Climate, working with scientific experts, landowners, NGOs and community partners. Monitoring will focus on carbon sequestration, biodiversity and water resilience, with Wetlands International providing impact measurement support.

Freddie Ingleby, managing director at Caledonian Climate, said: “By bringing together a wide range of stakeholders, this initiative will accelerate peatland restoration at scale across Scotland“.

Projects will also explore opportunities to combine private investment with public funding, such as the Scottish Government’s Peatland Action Fund, and will include partnerships with organisations such as the RSPB on the Oa nature reserve on Islay, a site that holds particular importance for the whisky industry.

“We’ll take a science-led approach, sharing learnings across the sector to advance understanding and drive nature recovery,” Ingleby added.

Alongside the restoration efforts, Diageo is taking steps to reduce its own reliance on peat in the whisky-making process. Innovations in malting operations have already improved peat-use efficiency by 5% since trials began in spring 2024.

The company is also investigating technologies to recirculate peat smoke in maltings and exploring whether peat displaced from other industries, such as energy infrastructure projects, could be repurposed for whisky production.

These projects form part of Diageo’s broader science-based approach to resource efficiency and its ambition to share learnings across the Scotch whisky sector.

Coenraad Krijger, CEO of Wetlands International, added: “Healthy peatlands are extraordinary climate champions. This collaboration will restore huge areas of degraded Scottish peatlands for the benefit of people, nature and climate, and we hope it inspires others across the industry to follow suit.”

Diageo’s investment reflects a growing recognition across the whisky industry that sustainability is inseparable from quality and long-term viability. With climate change posing risks to water availability, raw materials and iconic landscapes, the restoration of peatlands stands as both an environmental and strategic imperative.