No Trade-Offs: Diageo Is Making ESG a Growth Engine

On May 1st, the Advertising Producers Association (APA) will debut Production Unplugged – a new kind of event designed to break down silos and get brands closer to production companies. Part expo, part deep-dive learning experience, Production Unplugged is a bold, fast-paced forum built around six curated zones that highlight the themes modern marketers care most about: agility, smart production, customer experience, ESG, innovation, and connectivity.

But this event isn’t just a logistical rethink, it’s a strategic one too. Shaped by the APA’s foundational report earlier this year, it reflects the growing recognition across the industry that production needs direct connection with brands.

One of the most impactful of these six zones is ESG (environmental, social and governance) – a topic that, while complex, is critical to how modern marketers and brands think about production, creativity, and innovation. At the forefront of this conversation is Annalisa Tedeschi, global marketing director for sustainable innovation at Diageo. With a focus that spans immediate product improvements and long-term transformation, she’s leading an effort to ensure that ESG isn’t just an add-on, but a central engine of brand desirability and business growth.

“Sustainability should not be a trade-off,” she says. “It should add desirability.” For Annalisa, the tension between performance and sustainability is a false one. Diageo’s ‘Brands & Sustainability’ programme reflects this belief, aiming to inspire and equip marketers to not see ESG as a limitation, but a source of competitive edge.

The guiding principle is “the AND,” she says – consumer benefit and positive impact, brand salience and purpose, profit and planet. “When sustainability is built into the brand from the start, it’s a value enhancer,” Annalisa explains. “Not just an extra cost or risk response.”

At Diageo, this thinking plays out across two tracks of innovation. The Core Innovation team focuses on launching sustainable products and packaging within 6-18 months, leveraging existing capabilities. “They’re held to real, measurable targets,” Annalisa says – on carbon, water, and social impact, all aligned with Diageo’s 2030 Spirit of Progress goals.

Meanwhile, the Breakthrough Innovation team works on more radical, future-facing solutions. Their remit stretches to 24–36 months and beyond, pushing boundaries across four pillars: packaging, liquid, future formats, and circular systems. “It’s where we create completely new ideas that wouldn’t be possible within current structures,” she says – but always ones with the potential to move the needle significantly on ESG.

Partnerships are also a critical part of Diageo’s ESG equation. While they don’t work directly with production companies on a regular basis, ESG criteria are embedded in every brief.

“We’re really clear with joint business plan partners about our goals,” Annalisa adds. “We’re always looking for alignment on DE&I, carbon, and water – and we love working with B Corps.”

Looking from the point of view of the consumer however, one might ask themselves if there really is a real demand for ESG-focused products in the alcohol space.

Annalisa explains: “Not yet. Not enough to shift the market. The work hasn’t been strong or scaled enough.” Here, she sees a chicken-or-egg challenge. Until the industry produces desirable, high-performance products that are also sustainable – and tells that story through compelling marketing – consumers won’t be able to express that demand. “We have to lead with the work,” she says. “That’s how we build the category and start seeing ROI.”

Scaling that kind of work remains the biggest challenge. “The quality of what’s out there is high, but the quantity is still low.” Part of the issue is data – or rather, the lack of it. Without strong measurement frameworks, proving the business case can be tricky. “And without that proof, it’s hard to get more brands on board.”

Still, she remains optimistic. “We’re at the start of something. ESG is moving from a risky conversation to a creative one. It can become a platform that drives meaningful brand difference and real-world impact.”

So what advice does she have for other brands looking to lean into ESG more seriously?

“Start now. Don’t wait for perfect data or perfect solutions,” Annalisa says. “Take a ‘progress over perfection’ approach, and build ESG into your creative process from day one. If we make sustainability the foundation of great work – not an afterthought – it becomes not only viable but vital.”

If you would like to attend Production Unplugged, you can purchase tickets here. We’re offering 25% off for LBB members with the code ‘LBBEXCLUSIVE25’.