For six-years three of Diageo’s Scottish distilleries operated without an emissions trading scheme (ETS) permit.

Now, the spirit giant being fined £1.39 million – reduced to £1.2 million on appeal – by the Scottish Environment Protection Agency (SEPA).

“ETS is a crucial step towards achieving Scotland’s goal of a 75% reduction in CO2 emissions by 2030 and net zero emissions by 2045, and participation and full compliance is not optional,” said SEPA in a statement.

“These civil penalties demonstrate SEPA’s commitment to enforcement of obligations under ETS. Our message is clear: if you do not follow the regulations designed to protect and improve our environment, there are consequences. These penalties should serve as a warning to not only the company involved, but all others in Scotland, that we will take the appropriate action to ensure compliance.”

According to SEPA, the three Diageo distillers are: Roseisle, Burghhead Maltings, and Glen Ord.

Diageo is reported as saying that this was caused by an unfortunate administrative error and steps have been taken to ensure it does not happen again.

The company owns over 200 alcoholic drinks brands, including Johnnie Walker, Bells and Talisker whiskies, as well as Guinness, Smirnoff, Baileys and Gordon’s gin. It has more than 150 manufacturing sites in 30 countries, including 28 malt distilleries in Scotland.

In 2021 its profits were £3.7 billion.