Diageo pledges £5m to restore Scotland’s peatlands
Lagavulin owner Diageo has vowed to invest up to £5 million (US$6.56m) in the restoration of up to 3,000 hectares of degraded peatland across Scotland by 2030.
Partnering with Caledonian Climate to deliver on its pledge, Diageo will identify and co-fund projects that help to restore depleted peatlands, increase carbon storage, enhance biodiversity and improve water management in some of the country’s most iconic and fragile landscapes.
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. Peatlands also play an important role in water management, ensuring the sustainability of Scotch whisky’s number one ingredient.
“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.
“Today, as a part of announcing Diageo’s pledge to restore and protect key areas of Scotland’s natural capital, I am canvassing strongly for others to continue to join us as we look to drive successful systemic change in Scotland’s landscape restoration in support of future economic growth, and sustainable Scotch whisky production for the decades and centuries to come.”
Peat provides the smoky flavour across a number of Scotch whiskies, and just a small amount is used in the peated Scotch whisky making process.
Peatlands not only capture carbon, but are also important in water management, slowing water run-off and improving water quality. Yet many of Scotland’s peatlands are degraded, releasing carbon, and damaging local ecosystems.
Through this major commitment to scaled funding and collective action, projects will be delivered that improve resilience in the landscapes, increasing biodiversity, water management and supporting local communities while safeguarding the natural resources on which the industry depends.
Updating peat use
Alongside the restoration programme, the company is sharing a wider update on its approach to peat use.
Projects include innovation in maltings operations to ensure more efficient use of peat, and reducing the peat requirement per ton of malted barley, which has seen a 5% reduction since trials began in spring 2024.
The company is also in the early stages of exploring how peat smoke could 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.
Taking a science-based approach to deepen its understanding and optimise peat use efficiency, Diageo intends to share these learnings with the wider industry.
Freddie Ingleby, managing director at Caledonian Climate, said: “We’re delighted to manage this ambitious investment for Diageo. Their collaborative approach, bringing together a range of stakeholders, including scientific experts, landowners, communities and NGOs, will accelerate peatland restoration at scale across Scotland.
“Taking a science-led approach over the five-year commitment, we’ll build on best practices and share learnings across the sector, advancing our collective understanding of peatland restoration whilst supporting nature recovery, water resilience and climate action.”
All projects will prioritise collaboration to maximise co-funding opportunities, including combining private funding with the Scottish government’s Peatland Action Fund, and supporting projects co-funded by other distilleries and key stakeholders. The programme is set to support a range of new and ongoing projects, including a collaboration with the RSPB and other partners on the Oa nature reserve on Islay.
Coenraad Krijger, CEO at Wetlands International, said: “Healthy peatlands are extraordinary climate champions, not only capturing carbon that mitigates climate change, but also storing water that helps reduce flooding and alleviate droughts. This collaboration with Diageo and Caledonian Climate will invest in solutions that will restore huge amounts of degraded Scottish peatlands for the benefit of people, nature and climate, while inspiring other businesses to follow this example elsewhere in the country and across the globe.”
In January this year, Isle of Arran Distillers partnered with Scotland’s Dougarie Estate to restore 325 hectares of damaged peatland.
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