PUTTING SUSTAINABILITY FRONT AND CENTRE - SUSTAINABILITY STRATEGY REPORT 2019 - British American ...
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PUTTING
SUSTAINABILITY
SUSTAINABILITY
FRONT AND CENTRE
STRATEGY
REPORT 2019
INTRODUCTION WHO WE ARE
01 Welcome
02 Letter from our Chief Executive BAT is a leading, multi-category consumer
04 Our new Sustainability Agenda goods business. Our purpose is to build
HEALTH IMPACT ‘A Better Tomorrow’ by reducing the health
06 Health impact: our principal ESG focus impact of our business through offering a
07 What we’re doing
08 Vapour products
greater choice of enjoyable and less risky
09 Tobacco heating products (THPs) products for our consumers. Our ambition
10 Modern oral products
11 Our strategy for accelerated growth
is to increasingly transition our revenues
from cigarettes to non-combustible products
SUPPORTING ESG PRIORITIES
over time.
12 Our supporting ESG priorities
13 Excellence in environmental
management
SUPPLY
OBAL CH
GL
14 Delivering a positive social impact
15 Robust corporate governance R AI
U N
O
CREATING VALUE
g Mode
eatin
16 Creating value for our consumers oh r
prod n ora
acc ucts uc
18 Creating value for society b
To pro
d ts l
20 Creating value for our employees
CT PORTF
DU
Tr pro
22 Our contribution to the SDGs O
ad duc
O
prod ur
s
itio ts
LI
PR
uct
o
O
Vap
nal
INDEPENDENT ASSURANCE
oral
Other direct
24 External recognition product
materials
53,000+ Indirect goods
and services
26 Commentary from our Stakeholder Panel from 30,000+
employees
Our b
s
from 1,500+ suppliers
r ke t
29 Acting on the Panel’s feedback suppliers
ma
ra n
0+
ds
ar 20
ed
istr ss
ib ute d a c ro
Co
mb ts
ust d uc
ible to b a c c o pro
400,000+ tonnes of tobacco
leaf each year from 90,000
directly contracted farmers;
and from third-party
suppliers
OUR AMBITIOUS ESG TARGETS
Increasing our consumers Achieving carbon neutrality Eliminating unnecessary
of non-combustible by 2030 and accelerating single-use plastic and
products to 50 million our existing environmental making all plastic packaging
by 2030 targets to 2025 recyclable by 2025
BAT Sustainability Strategy Report 2019
Health Supporting Creating Independent
Introduction impact ESG priorities value assurance 01
WELCOME TO OUR SUSTAINABILITY
STRATEGY REPORT 2019, WHICH
FORMS PART OF OUR SUITE OF
CORPORATE PUBLICATIONS.
Our reporting suite Our Annual Report 2019 provides details of our evolved Group
strategy, with sustainability at its heart. This includes our clear
corporate purpose to build ‘A Better Tomorrow’ by reducing the
health impact of our business through offering a greater choice of
enjoyable and less risky products.
This Sustainability Strategy Report 2019 provides details
Annual Report 2019
of our Sustainability Agenda, including a clear focus to reduce
the health impact of our business; highlights of our approach and
performance for our other environmental, social and governance
(ESG) priorities; and how this creates shared value for our
stakeholders towards our corporate purpose for
‘A Better Tomorrow’.
This is complemented by our ESG Report 2019, which provides
Sustainability Strategy
Report 2019 more comprehensive details of our Sustainability Agenda and
ESG priorities, including policies, accountability, management
approach, targets and performance for each topic. We also
map our disclosures against Global Reporting Initiative (GRI)
Standards, the Sustainability Accounting Standards Board (SASB)
framework and the World Economic Forum’s new ESG framework.
ESG Report 2019
In addition, we publish our annual Modern Slavery
Statement and UK Gender Pay Report, as well as periodic
topic-specific Focus Reports and our biennial Science &
MODERN
SLAVERY
GENDER PAY
STATEMENT
REPORT
2019
2019
Technology Report.
Modern Slavery Statement
and UK Gender Pay Report 2019 bat.com/reporting
About this Report and forward-looking statements
This is a Report by British American Tobacco plc. These statements are often, but not always, made through The material in this Report is provided for the purpose of
Associate companies are excluded. References to ‘British the use of words or phrases such as “believe,” “anticipate,” giving information about the Company to stakeholders only
American Tobacco’, ‘BAT’, ‘we’, ‘us’ and ‘our’ when denoting “could,” “may,” “would,” “should,” “intend,” “plan,” and is not intended for general consumers. The Company,
opinion refer to British American Tobacco plc (the Company, “potential,” “predict,” “will,” “estimate,” “strategy” and its directors, employees, agents or advisers do not
and together with its subsidiaries, the “Group”), and when similar expressions. It is believed that the expectations accept or assume responsibility to any other person to
denoting tobacco business activity refer to Group operating reflected in this report are reasonable but they may be whom this material is shown or into whose hands it may
companies, collectively or individually as the case may be. affected by a wide range of variables that could cause come and any such responsibility or liability is expressly
actual results to differ materially from those currently disclaimed. The material in this Report is not provided for
This Report contains certain forward-looking statements, anticipated, including: the impact of adverse domestic or product advertising, promotional or marketing purposes.
made within the meaning of Section 21E of the United international legislation and regulation, changes in domestic This material does not constitute and should not be
States Securities Exchange Act of 1934, regarding our or international tax laws and rates and the impact of an construed as constituting an offer to sell, or a solicitation
intentions, beliefs or current expectations reflecting unfavourable ruling by a tax authority in a disputed area, of an offer to buy, any of our products. Our products are
knowledge and information available at the time of adverse decisions by domestic or international regulatory sold only in compliance with the laws of the particular
preparation and concerning, among other things, prospects, bodies and the inability to lead the development and jurisdictions in which they are sold.
growth and strategies. BAT undertakes no obligation to roll-out of BAT innovations (new category products and
update or revise these forward-looking statements, whether combustibles), including as a result of unsuccessful research
as a result of new information, future events or otherwise. and development or a failure to develop robust scientific risk
assessment frameworks.
BAT Sustainability Strategy Report 2019
02 Introduction
LETTER FROM Our clear commitment to providing consumers with a
range of less harmful products is central to our corporate
OUR CHIEF purpose, around which our long-term ambition is planned.
EXECUTIVE And we’re also clear that our long-term sustainability will
be underpinned by successful delivery against our other
ESG priorities.
Strong foundations
We have a long and proud history of
WE HAVE A STRATEGY sustainability achievements, but today we are
transitioning from being a business where
WITH SUSTAINABILITY sustainability has always been important to one
AT ITS HEART AND where it is front and centre in all that we do.
I FIRMLY BELIEVE Over the last 20 years, we’ve made significant
IT WILL LEAD TO ‘A progress on our sustainability journey, as
evidenced by the highlights below, as well as
BETTER TOMORROW’ our 18 consecutive years in the Dow Jones
FOR OUR CONSUMERS, Sustainability Indices (DJSI).
OUR EMPLOYEES, Yet our approach needs to constantly
develop, much as the world around us is
OUR SHAREHOLDERS evolving – from increasing expectations of
AND, UNDOUBTEDLY, the role of business in contributing to the UN
FOR SOCIETY. Sustainable Development Goals and addressing
climate change; to evolving consumer
preferences and the emergence of new
category products, such as vapour products
(e-cigarettes), that offer potentially reduced
risks for the estimated 19% of the world’s
population who continue to smoke cigarettes.
Clear priorities
Since taking over as CEO in April last
year, I have focused the business on three
clear priorities:
– Ensuring a step change in New Categories
performance with the aim of ultimately
generating an increasingly greater
proportion of our revenues from products
other than cigarettes, thereby reducing the
health impact of our business;
– Simplifying the business to be more flexible,
agile and efficient, while also releasing
valuable funds for reinvestment in New
Categories; and
2000–2005: ESTABLISHING 2006–2010: DEVELOPING
Transparent reporting International Sustainability Agenda focused External Scientific Panel formed
aligned to best Marketing Standards on harm reduction, marketplace, to guide our harm reduction research
practice frameworks and youth smoking environment, supply chain, and
prevention programmes people and culture bat-science.com launched
Eliminating Child Labour
in Tobacco Growing Social Responsibility First long-term targets for Integrated supply chain
(ECLT) Foundation and BAT in Tobacco Production reducing our direct carbon emissions sustainability strategy developed
Biodiversity Partnership (SRTP) programme with (CO2) by 50% by 2030 in consultation with stakeholders
minimum standards for
tobacco leaf suppliers First reduced-risk product, snus
smokeless oral tobacco, launched
BAT Sustainability Strategy Report 2019
Health Supporting Creating Independent
Introduction impact ESG priorities value assurance 03
WE ARE TRANSITIONING FROM A BUSINESS WHERE BUILDING
SUSTAINABILITY HAS ALWAYS BEEN IMPORTANT TO ONE WHERE ON OUR
IT IS FRONT AND CENTRE IN ALL THAT WE DO. PROGRESS
WITH
STRETCHING
NEW TARGETS
– Driving value from combustible cigarettes Specifically, we are clear that reducing the health
to enable continued investment to grow our impact of our business is our principal focus area, as
New Categories business. well as placing a greater emphasis on the importance
of addressing climate change and environmental
Our evolved strategy
management. At the same time, we remain
To accelerate progress, we have evolved our Group committed to delivering a positive social impact
strategy with the purpose of building ‘A Better and ensuring robust corporate governance across
Tomorrow’ for all our stakeholders. the Group.
Increasing our
consumers of non-
While combustible tobacco products will be at the Future ambition
core of our business for some time to come, we aim combustible products
Just as we are committed to making a step change to 50 million by 2030
to reduce the health impact of our business by using
in our New Categories performance, we are
revenue from our cigarette business to generate an
also committed to making a step change in our
ever-increasing proportion of our overall revenues
sustainability ambition.
from our new category products.
Recently, we have announced a number of stretching
And, to reflect the changes in both the world
targets that we are confident will accelerate our
around us and our business, we have a dynamic new
purpose to build ‘A Better Tomorrow’ for all our
corporate logo, as featured in this Report.
stakeholders, including:
Our Sustainability Agenda Achieving carbon
– Increasing our consumers of non-combustible
Central to our evolved strategy is our Sustainability neutrality by 2030
products to 50 million by 2030;
Agenda, which has been refreshed to reflect the and accelerating our
changing external environment. – Achieving carbon neutrality by 20301 and existing environmental
accelerating our existing environmental targets to
2025; and
targets to 2025
– Eliminating unnecessary single-use plastic and
AT ITS HEART, OUR making all plastic packaging recyclable by 20252.
EVOLVED STRATEGY IS I am proud that we have a strategy with sustainability
ABOUT ANTICIPATING embedded at its heart and I firmly believe it will
lead to ‘A Better Tomorrow’ for our consumers, our
AND SATISFYING employees, our shareholders and, undoubtedly,
THE EVER-EVOLVING for society. Eliminating
CONSUMER: PROVIDING unnecessary single-
use plastic and making
PLEASURE, REDUCING all plastic packaging
RISK AND OFFERING AN Jack Bowles recyclable by 2025
INCREASING CHOICE. Chief Executive, March 2020
2011–2015: EMBEDDING 2016–2019: GROWING 2020: STEP CHANGE
First international tobacco company Range of potentially reduced-risk Evolved our Group strategy
to launch a vapour product products available across multiple markets with a clear corporate purpose to
build ‘A Better Tomorrow’. See our
Human rights strategy developed New science-based CO2 targets set, Annual Report 2019 for details,
in consultation with stakeholders having already achieved a 47% reduction in at bat.com/annualreport.
direct emissions
Diversity and inclusion strategy Evolved our Sustainability Agenda;
implemented across the Group Thrive farmer livelihoods and sustainable see the following page for details
agriculture programme developed
Sustainable Tobacco Programme
developed with the industry Delivery with Integrity programme
strengthening our compliance culture
1 Based on Scope 1 and 2 carbon dioxide equivalent (CO2e) emissions.
2 In full, our 2025 targets are to: eliminate all unnecessary single-use plastic packaging; 100% of plastic packaging to be reusable, recyclable or compostable; and 30% recycled content in
plastic packaging – as well as having take-back schemes for all new category devices by end 2021.
BAT Sustainability Strategy Report 2019
04 Introduction
OUR NEW Our Sustainability Agenda is integral to our evolved
Group strategy and reflects our commitment to reducing
SUSTAINABILITY the health impact of our business as our principal focus
AGENDA area. This is underpinned by excellence across our other
ESG priorities.
A key strength of our approach to This comprehensive approach to evolving Along with our principal focus on reducing
sustainability is a robust process to identify our Sustainability Agenda ensures we the health impact of our business, we retain
and understand the most material ESG topics keep pace with emerging topics and a strong focus on other ESG priorities.
that drive our long-term business sustainability stakeholder expectations.
Together, this approach helps to create
and value creation.
Outlined below are the priority areas identified shared value for our consumers, society, our
Each year we engage with a wide range of in 2019 and which form the core of our employees and our shareholders. Ultimately,
stakeholders to understand what matters Sustainability Agenda. You can read more it’s about building towards ‘A Better
to them most and complement this about how we identify and prioritise them Tomorrow’ not just for BAT, but for all
with ongoing risk monitoring, research at bat.com/sustainabilityreport. our stakeholders.
and benchmarking.
Increasing our consumers Achieving carbon neutrality by 2030 Eliminating unnecessary
of non-combustible products to and accelerating our existing single-use plastic and making all plastic
50 million by 2030 environmental targets to 2025 packaging recyclable by 2025
Reducing the HEALTH impact of our business
Consumer choice World-class science Standards and regulation
Excellence in Delivering a positive Robust corporate
ENVIRONMENTAL SOCIAL impact GOVERNANCE
management
Human rights Business ethics
Climate change Farmer livelihoods Responsible marketing
Water and waste Health and safety Regulation and
policy engagement
Sustainable agriculture People and culture
Circular economy
This Report provides an overview of our strategic approach and we report in detail against all our ESG
priorities in our ESG Report at: bat.com/sustainabilityreport
BAT Sustainability Strategy Report 2019
Health Supporting Creating Independent
Introduction impact ESG priorities value assurance 05
CONSUMERS
by responsibly offering them enjoyable
and less risky choices to cigarettes.
SOCIETY
by addressing the overall health, social
and environmental impacts of our business,
and by raising standards for people
across our value chain. OUR PURPOSE
CREATES SHARED
VALUE FOR
EMPLOYEES
by creating a dynamic, inspiring
and purposeful place to work that
values their wellbeing, embraces diversity
and respects their rights.
SHAREHOLDERS
by delivering sustainable, superior
returns and long-term growth.
BAT Sustainability Strategy Report 2019
Health
06 impact
HEALTH IMPACT: As our principal ESG focus area, we are committed to
reducing the health impact of our business through
OUR PRINCIPAL offering a greater choice of enjoyable and less risky
ESG FOCUS products for our consumers.
New category alternatives to cigarettes, such as vapour, tobacco heating and modern oral
products, already have an estimated 68 million consumers worldwide and provide options for
the estimated 19% of the world’s population who continue to smoke3 to switch away from
cigarettes in significant numbers. To succeed in this, the following key enablers need to be
in place:
CONSUMER WORLD-CLASS
CHOICE SCIENCE
Smokers are Robust scientific
more likely to switch evidence is needed
to new category to support the quality,
products if they can find safety and reduced-risk
one that satisfies their potential of new
varying preferences. category products, in
HARM order for regulators
REDUCTION and consumers to
KEY have trust in them.
ENABLERS
STANDARDS AND
REGULATION
The right regulatory and market
conditions need to be in place to
enable wide availability of new category
products, alongside high standards and
responsible practices across the industry.
AS MOST OF THE HARM CAUSED OUR WORLD-CLASS AND
BY SMOKING ARISES NOT FROM TRANSPARENT SCIENCE
NICOTINE BUT FROM OTHER MEANS CONSUMERS
COMPONENTS OF TOBACCO CAN TRUST IN THE
SMOKE, THE HEALTH AND LIFE PERFORMANCE, SAFETY AND
EXPECTANCY OF TODAY’S SMOKERS HARM REDUCTION POTENTIAL
COULD BE RADICALLY IMPROVED OF OUR PRODUCTS.
BY ENCOURAGING AS MANY AS
POSSIBLE TO SWITCH TO A SMOKE- Dr David O’Reilly
FREE SOURCE OF NICOTINE. Director, Research and Science
UK Royal College of Physicians4
3 Euromonitor International (2019). ‘World market for cigarettes: October 2019’.
4 Royal College of Physicians, Tobacco Advisory Group (2016). ‘Nicotine without smoke: Tobacco harm reduction’.
BAT Sustainability Strategy Report 2019
Health Supporting Creating Independent
Introduction impact ESG priorities value assurance 07
WHAT WE’RE By enabling consumer choice through our range of new
category products, supported by world-class science and
DOING industry-leading standards, we are making significant
progress in delivering our commitment to reducing the
health impact of our business.
CONSUMER WORLD-CLASS STANDARDS
CHOICE SCIENCE AND REGULATION
Our strategy is focused on making We apply our peer-reviewed scientific We follow strict standards for product
available a broad portfolio of different framework to assess the emissions, safety and for ensuring all our product
products that satisfy consumers by exposure and risk of our products. marketing worldwide is aimed only at adult
providing pleasure, reducing risk and Product safety standards go hand-in-hand consumers and does not engage or appeal
offering an increasing choice. with sound science – we scrutinise all the to youth. We openly share our approach,
ingredients and our products benefit from and advocate for industry-wide standards
We have a deep understanding of our
thousands of hours of testing before they and regulation.
consumers and anticipate trends with
reach the consumer.
powerful foresights, data and analytics. We think regulation of new category
We make significant investments in We openly share our science, publish our products should enable market availability,
research and development (R&D) to findings in peer-reviewed journals and apply the highest quality and safety
deliver innovations that satisfy consumer present at conferences and to government standards, allow communication of the
tastes and generate growth for the advisory committees. We also publish potential benefits and risks, and ensure
business. And we’re opening up to comprehensive details of our research affordability for consumers by taxing them
radical new ideas and seeking out the programme on our dedicated appropriately – all the while preventing
inventiveness of others through strategic bat-science.com website. youth appeal and access.
investments and partnerships.
Our progress Our progress
Our progress To date, we have published 59 peer- We’ve evolved our International
Since launching our first vapour products reviewed papers on new category Marketing Principles and Youth Access
in the UK in 2013, we have made products. The results indicate that Prevention Guidelines to reflect our
significant progress in developing, our products have the potential to be multi‑category portfolio.
manufacturing and commercialising significantly less risky than cigarettes
We’ve openly shared our approach to
a range of new category products. and we’re continuing to establish more
product stewardship and have worked as
evidence to support this.
Today, our new category products are part of multi-stakeholder groups on the
available in 48 markets globally – see In 2019, we presented at 32 scientific development of industry-wide standards,
pages 8–10 for details. conferences and meetings, and we will including with the British Standards
publish our biennial Science & Technology Institution, the EU standards body (CEN)
Report later in 2020. technical committee and the International
Organization for Standardization (ISO).
Comprehensive details of how we’re Full details of our scientific framework Find out more about our regulatory
enabling consumer choice through and findings of our research, as well engagement and views on an effective
our range of new category products as the growing independent evidence regulatory framework for new category
can be found on pages 19–24 of our base, can be found on pages 19–24 of products that is based on relative risks,
ESG Report. our ESG Report. on pages 20–21of our ESG Report.
at.com/sustainabilityreport
b at.com/sustainabilityreport
b at.com/sustainabilityreport
b
BAT Sustainability Strategy Report 2019Health
08 impact
VAPOUR Vapour products are battery-powered devices that heat
liquid formulations – e-liquids – to create a vapour which
PRODUCTS is inhaled. Most e-liquids contain water, propylene glycol
and glycerol, flavourings and nicotine, although some
e-liquids don’t contain any nicotine. The products contain
no tobacco and no combustion takes place.
OUR PRODUCTS 95%
fewer toxicants
Our flagship vapour brands include Vype emitted by our Vype
and Vuse. product, compared
to cigarettes5
We continue to enhance our vapour products
with new innovations – for example, we’re
developing new distiller plate technology to
heat the e-liquid more efficiently than the
traditional ‘coil and wick’ often found in other
vapour products.
We plan to consolidate all our vapour products
27
markets where
under our global Vuse brand by the end of 2020. our vapour products
are available
The scientific evidence
Vaping concerns in the US
There is growing consensus among many
public health bodies and academics that In 2019, a number of cases of acute lung Food and Drug Administration’s (FDA) newly
vapour products can have a significantly diseases among vapers were reported in released guidance on flavoured e-cigarettes.
reduced risk profile compared to smoking. the US, including some deaths. The official Together with the FDA’s previously
In the UK, for example, Public Health England investigations have so far found strong links announced requirement to submit Pre-
has published a series of expert reviews with the use of Vitamin E acetate in e-liquids Market Tobacco Product Applications
of the latest evidence, drawing on peer- and with illicit e-liquids not sourced from (PMTAs) by May 2020 for all products,
reviewed literature, surveys and other reports. reputable manufacturers. Consistent with this is a positive step and will help ensure
They concluded that “based on current our product standards, such ingredients are consumers have access to appropriately
knowledge, vaping is at least 95% less not, and have never been, added to our regulated, quality-assured products that do
harmful than smoking”6. This is supported Vype and Vuse vapour products. not appeal or are accessible to youth.
by a wealth of other evidence reviews, studies
and reports from public health bodies, Concerns were also raised regarding youth We are confident that, as required by the
regulators and academics in countries such access to vapour products and that some PMTA process, all our Vuse products in
as Australia, Canada, France, New Zealand e-liquid flavours, such as those resembling the US will be shown to be appropriate
and the US. ‘kid-friendly’ food products, may play a role for the protection of public health. We will
in increasing youth appeal. We have strict continue to work with the FDA throughout
standards to ensure our products do not the implementation of this new regulatory
engage or appeal to youth. framework to make sure consumers have
access to quality-assured products, while
IT IS WELL ACCEPTED These cases clearly demonstrate the
doing our utmost to ensure that vaping
WITHIN THE PUBLIC importance of having, and enforcing, robust
remains positioned as a credible option
HEALTH COMMUNITY and effective regulations which ensure high
for adult smokers looking for an alternative
THAT, WHILE THE PRECISE product standards and prevent access and
to tobacco.
LONG-TERM EFFECTS OF appeal to youth – something we at BAT have
VAPING ARE UNKNOWN, long been advocating. We welcome the US
IT IS NEVERTHELESS
SUBSTANTIALLY
SAFER THAN SMOKING
TRADITIONAL CIGARETTES.
The Royal Society
5 Comparison of smoke from a 1R6F reference cigarette (approx. 9 mg tar) and vapour from Vype ePen 3, with reference to nine
for Public Health7 harmful components the World Health Organization (WHO) recommends to reduce in cigarette smoke. This quality does not
necessarily mean this product is less harmful than other tobacco products.
6 Public Health England (2018). ‘Evidence review of e-cigarettes and heated tobacco products 2018’.
7 Royal Society for Public Health (2018). ‘Health on the High Street: Running on empty’.
BAT Sustainability Strategy Report 2019Health Supporting Creating Independent
Introduction impact ESG priorities value assurance 09
TOBACCO THPs heat tobacco to generate a nicotine-containing
aerosol, with a tobacco taste, which the user inhales.
HEATING Because the tobacco is heated instead of burned, the
PRODUCTS resulting aerosol comprises mainly water, glycerol,
(THPs) nicotine and tobacco flavours – dramatically
different to cigarette smoke.
OUR PRODUCTS
17
markets where
our THPs are
Our THPs are available under our currently
flagship glo brand. available
Our range includes battery-
powered devices that heat specially
designed tobacco sticks, as well as
hybrid devices that combine vaping
technology with real tobacco.
The scientific evidence
Leading innovation
By heating tobacco rather than burning it,
THPs have the potential to be reduced-risk In 2019, we continued to expand our to cigarettes. We continue to push the
compared to smoking. Although most of portfolio with the launch of three innovative boundaries of innovation to encourage as
the research to date has been conducted by new THPs in Japan and South Korea. many adult smokers as possible to choose
the industry, we are encouraged to see an a new category product with reduced-
increasing number of independent reports This included our ‘glo pro’ device which, for
risk potential.
that are broadly aligned with our findings. the first time, used our new tobacco heating
technology – induction heating – which
For example, a study commissioned by the significantly reduces the heating time for the
UK Department of Health in 2017 found that
people using the two available THPs on the
UK market were exposed to around 50–90%
consumer. The new ‘glo sens’ product uses
our cutting-edge innovation, called Taste 90–95%
Fusion Technology, which combines vaping Some chemicals found
less of the “harmful and potentially harmful” technology with real tobacco. in cigarette smoke are not
compounds compared with conventional in glo aerosol at all, and
cigarettes8. And, in 2018, a Public Health These products provide adult consumers
many others are around
England report looked at current research with even greater and more satisfying
90–95% lower in the
on THPs and, while highlighting the need choice when looking for alternatives
glo aerosol10
for more research, found that “compared
with cigarettes, heated tobacco products
are likely to expose users and bystanders
to lower levels of particulate matter
and harmful and potentially harmful TESTS ON HEATED TOBACCO CARRIED OUT BY THE TOBACCO
compounds. The extent of the reduction INDUSTRY AND SCRUTINISED BY THE COMMITTEE...
found varies between studies”9. FOUND A REDUCTION OF UP TO 90% IN THE NUMBER OF TOXIC
CHEMICALS EMITTED BY HEATED TOBACCO COMPARED WITH
COMBUSTIBLE CIGARETTES.
David Jones
MP and honorary life fellow of Cancer Research UK11
8 Committee on Toxicity of Chemicals in Food, Consumer Products and the Environment (COT), Department of Health UK (2017). ‘Statement on the toxicological evaluation of novel heat-not-burn
tobacco products’.
9 Public Health England (2018). ‘Evidence review of e-cigarettes and heated tobacco products 2018’.
10 Comparison of smoke from a 3R4F reference cigarette (approx. 9 mg tar) and vapour from heated tobacco in glo, with reference to nine harmful components the WHO recommends to reduce in
cigarette smoke. This quality does not necessarily mean this product is less harmful than other tobacco products.
11 UK House of Commons Hansard, 26 June 2019, referencing findings of the COT in footnote 8.
BAT Sustainability Strategy Report 2019Health
10 impact
MODERN In recent years, a new category of modern oral products
has emerged. These come in the form of nicotine pouches
ORAL that are placed under the lip so that nicotine can be
PRODUCTS absorbed by the body.
18
markets where
our modern oral
OUR PRODUCTS products are
available
Our modern oral products are white in colour and contain high-
purity nicotine, water and other high-quality food-grade ingredients,
including eucalyptus and pine tree fibres, flavouring and sweeteners.
These are likely to appeal more broadly than traditional oral
tobacco. And, due to affordability and other factors like not relying
on batteries, they may be more consumer-acceptable than our
other new category products for low to middle income developing
countries, such as for our recent launches in Kenya and Pakistan.
We plan to consolidate all our modern oral products under our
global Velo brand by the end of 2020.
The scientific evidence
Traditional oral products
A wealth of epidemiological evidence from
Sweden over many decades shows that use We also sell a range of traditional oral Our Camel Snus product is currently
of snus, a type of traditional oral tobacco, is products, including Swedish-style snus and undergoing a process with the US FDA
substantially less risky than smoking. This has American moist snuff, available in loose to be classified as a modified-risk tobacco
been confirmed by the US FDA which, in tobacco form or as prepacked pouches. product, which we expect to be completed
2019, in response to an application made We have long sold snus in Sweden and in 2020. If our application is accepted,
by the company Swedish Match, formally Norway through our Fiedler & Lundgren we will be able to communicate the
recognised that switching completely from business, whose brands include Granit and health benefits of switching from cigarettes
cigarettes to the snus products assessed can Mocca; and in the US we market snus under to Camel Snus directly to consumers.
significantly lower the risks of mouth cancer, the Camel brand. Our American moist snuff
heart disease, lung cancer, stroke, emphysema products include our flagship Grizzly brand
and chronic bronchitis12. in the US, as well as the premium moist
Already our chemical studies have shown snuff brand Kodiak.
that our modern oral products have even
fewer and lower levels of toxicants than snus,
and our toxicological studies have shown
that the effect of this is to have even lower
toxicological impact on human cells than ST [SMOKELESS TOBACCO] PRODUCTS ARE MUCH CLEANER
snus. We’re confident that further research AND LESS HAZARDOUS THAN CIGARETTES. THEIR USE COULD
will confirm that consumers of modern oral REDUCE HARM TO SMOKERS IF THEY SWITCHED ENTIRELY
products will be exposed to even fewer TO THESE PRODUCTS. THIS APPEARS TO BE THE CASE WITH
toxicants than snus users. Ultimately, we SNUS USE IN SWEDEN.
believe that modern oral products present
significantly less risk to users than cigarettes. Prof Neal Benowitz
Professor of Medicine at the University of California, San Francisco13
12 https://www.fda.gov/news-events/press-announcements/fda-grants-first-ever-modified-risk-orders-eight-smokeless-tobacco-products (accessed March 2020).
13 Benowitz, N. L. (2011). ‘Smokeless Tobacco as a Nicotine Delivery Device: Harm or Harm Reduction?’ Clinical Pharmacology & Therapeutics 90, no.4: 491–93. doi:10.1038/clpt.2011.191.
BAT Sustainability Strategy Report 2019Health Supporting Creating Independent
Introduction impact ESG priorities value assurance 11
OUR While we’re proud of how much we’ve already achieved,
we need to accelerate progress in order to generate an
STRATEGY FOR increasingly greater proportion of our revenues from
ACCELERATED products other than cigarettes, thereby reducing the
GROWTH health impact of our business.
In 2019, we grew our New
Categories business by 37%
to £1.3 billion14 – we aim to Today
achieve at least £5 billion in New
Categories revenues in 2023/2024.
11 million
consumers
Opportunities for growth regularly use one of our
New category products have grown rapidly non-combustible products
across the world, with an estimated 54 million across 48 markets
vapour consumers and 15 million THP
consumers; and
With the right regulation in place, alongside
technological innovation, it is expected that
growth will continue to accelerate as the
products better meet consumer preferences
and demands.
More innovation, greater choice
Consumer preferences and technology are
evolving rapidly, and we are staying ahead of
the curve by building new capabilities around
the world focused on science and innovation;
We are also leveraging the expertise of our
external partners to further strengthen our
world-class R&D capabilities – such as our
partnership with McLaren where we are
actively working with McLaren Applied on
a number of projects to enhance our future
product pipeline; and
Our new corporate ventures team will also
accelerate the creation, development and
commercialisation of new-to-world innovation
on a test-and-learn basis.
Growing reach and availability
Of the 48 markets where our new category
products are currently available, 15 are among
the top 30 countries with the highest smoking
prevalence globally15; Our ambition is to
We’re committed to expanding to further increase to
markets as quickly and practically as we can; and
We prioritise markets with the right regulatory
50 million
frameworks in place, and where there is
consumer awareness and demand – countries
consumers
we expanded to in 2019 include Kenya, by 2030
Malaysia, Pakistan, Slovakia and South Africa.
14 At current rates of exchange.
15 Based on World Bank data (2016) measuring smoking prevalence as a percentage of the total population. The 15 countries and smoking rates are: Greece (43.4%), Russia (39.3%), Serbia
(38.9%), Bulgaria (37%), Croatia (37%), Czech Republic (34.3%), France (32.7%), Germany (30.6%), Hungary (30.6%), Slovakia (30.1%), Romania (29.7%), Austria (29.6%), Spain (29.3%),
Ukraine (28.9%) and United Arab Emirates (28.9%). https://data.worldbank.org/indicator/SH.PRV.SMOK (accessed March 2020).
BAT Sustainability Strategy Report 2019Supporting
12 ESG priorities
OUR As well as our commitment to addressing the health
impact of our business, we are also clear that our
SUPPORTING long-term sustainability and value creation will be driven
ESG PRIORITIES by ensuring a best-in-class approach to managing our
other ESG focus areas.
Highlights for each of our ESG priorities WHY THESE TOPICS MATTER
can be found on the following pages.
Comprehensive details for all our
ESG topics, including our policies,
management approach, targets EXCELLENCE IN ENVIRONMENTAL MANAGEMENT
and performance, can be found
in our ESG Report. Good environmental management ddressing our water and waste
A
is not only the right thing to do, it impacts has environmental benefits and
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delivers financial savings and efficiencies;
makes business sense given our
dependence on natural resources. Implementing sustainable agriculture
practices with our 90,000+ contracted
limate change has long been part of
C farmers helps to address environmental
our wider approach to environmental impacts and secure our tobacco leaf
management and we’ve now elevated it supply chain; and
to a standalone priority in recognition of In response to increasing concerns
the growing climate emergency; regarding plastics and post-consumption
waste, we’ve established circular
economy as a new priority area.
DELIVERING A POSITIVE SOCIAL IMPACT
As one of the world’s most y enhancing farmer livelihoods, we
B
international businesses, we have can help address rural poverty, which is a
primary root cause for issues such as child
an important role to play in delivering
labour and urban migration, and so help
a positive societal impact for our secure our supply chain;
employees and people across our
rotecting the health and safety of our
P
supply chain. people and contracted farmers enables
them to thrive while also enhancing
uman rights risks exist across our
H
business productivity; and
business and supply chain, particularly
in tobacco growing due to the inherent Investing in our people and creating a
challenges in agriculture; diverse, inclusive and engaging culture is
crucial to our business success.
ROBUST CORPORATE GOVERNANCE
Robust corporate governance is key esponsible marketing practices are
R
to our sustainable, long-term growth. crucial for ensuring adult-only consumers
use our tobacco and nicotine products
pplying high standards of business
A and that they do not appeal to youth; and
ethics and operating with honesty, ruly effective regulation needs
T
integrity and transparency is not only cooperation between governments and
the right thing to do, it is critical to the industry, and we have a legitimate role to
continuing success of our business; play in policy-related debate that affects
our business.
BAT Sustainability Strategy Report 2019Health Supporting Creating Independent
Introduction impact ESG priorities value assurance 13
Next steps
EXCELLENCE IN Building on our progress, we’re
ENVIRONMENTAL MANAGEMENT now setting ourselves even more
ambitious and stretching targets:
We are committed to reducing Sustainable agriculture Carbon neutral by 2030;
We’re supporting 90,000+ directly
impacts across our operations contracted farmers worldwide to address the educe our Scopes 1 and 2 CO2e
R
and supply chain and preparing environmental impacts of tobacco growing emissions by 30% by 2025;
our business for the risks ahead. such as by:
ource 30% of our direct energy
S
iving them access to technologies
G from renewable sources by 2025;
limate change
C developed by our Leaf Science & Research
Having achieved a 47% carbon dioxide centre, like drip irrigation and floating educe the total amount of water
R
equivalent (CO2e) reduction towards our seedbeds that help to reduce water and withdrawn by 35% and increase
original intensity-based targets, from a 2000 agrochemical use; water recycling to 15% by 2025;
baseline, we then set new science-based romoting the sustainable use of forest
P
targets to reduce our direct emissions, from resources as fuels for tobacco curing to
educe waste sent to landfill by
R
a 2017 baseline, against which we’ve already tackle deforestation; 40% by 2025 and recycle at
achieved a 9.5% reduction, such as by: least 95% of our total waste
Reducing carbon emissions from tobacco
Improving the energy efficiency of our curing with more efficient curing each year;
factories, such as by upgrading to more technologies that use up to 30% less E liminate the use of unsustainable
efficient and lower-impact equipment; fuel – these have been introduced to our
contracted farmers in eight countries, with
wood sources by our contracted
Increasing our use of renewable energy farmers for curing fuels;
through green energy certificates and on- trials underway in two more; and
site energy-generation projects; and roviding ongoing training and capacity
P Eliminate unnecessary single-use
Optimising our logistics and fleet, such as building on environmental best practice. plastic packaging by 2025;
through improving vehicle performance Circular economy 100% of plastic packaging
and fuel efficiency. We’re developing a new Group-wide to be reusable, recyclable or
Given our supply chain (Scope 3) emissions circular economy strategy for all our product
compostable by 2025; and
represent 90% of our total carbon footprint, categories, through a Management Board-led
we’re engaging with our largest direct cross-functional project team: 30% average recycled content
product materials suppliers and conducting s a start, we’ve removed silicon caps
A across all plastic packaging
climate change impact assessments for our from our Vype e-liquid pods, saving the by 2025.
major tobacco leaf sourcing countries. equivalent of around 1,000 tonnes of CO2
ater and waste
W per year, and we plan to have removed all ESG Report
We’ve reduced water withdrawals across our unnecessary plastic from Vuse packaging Find full details of our policies, management
by the end of 2021; approach, performance and targets for these
operations by 13.1% from our 2017 baseline, focus areas in our ESG Report.
such as by: rialling take-back schemes for new
T b
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Improving water efficiency and controls category products in France, Japan,
across our sites; and Mexico, South Korea and the UK, and we
plan to implement take-back schemes for
Increasing water recycling rates to 13.7%. all our new category devices by 2021; and
We’ve reduced waste sent to landfill by 13.8% etting ambitious new targets aligned to
S
since 2017 by recycling over 90% of our the UK Government’s ‘Plastics Pact’.
waste each year across all our sites worldwide.
HIGHLIGHTS FOR 2019
9.5% 13.1% 99% 1,000
REDUCTION REDUCTION OF WOOD FUEL TONNES
in direct CO2e from 2017 in water withdrawals from used by our contracted of CO2 equivalent saved
baseline and aiming to be our 2017 baseline and farmers for curing was annually by removing
CARBON NEUTRAL aiming to reduce by from sustainable silicon caps from
BY 2030 35% BY 2025 sources in 2019 Vype e-liquid pods
BAT Sustainability Strategy Report 2019Supporting
14 ESG priorities
Next steps
DELIVERING A POSITIVE ublish a new Human Rights
P
SOCIAL IMPACT Focus Report in 2020, including
details of human rights impact
assessments in tobacco-growing
We are committed to delivering elping our contracted farmers to increase
H
areas in India and Indonesia;
efficiency and productivity with new
a positive social impact for our technologies, such as for tobacco curing; onduct two further human
C
employees and people across our
Educating and supporting our contracted rights impact assessments
supply chain. farmers to grow other crops for food or as in Mexico and Mozambique
additional sources of income; and in 2020;
Human rights easuring progress via our global
M
We’re committed to protecting the human Thrive programme, which assesses over ontinue working with the
C
rights of our employees and people across our 250,000 farmers in our supply chain industry to develop and evolve
supply chain, such as: against core indicators aligned to the the Sustainable Tobacco
internationally recognised ‘Five Capitals’ Programme with a stronger focus
ur Human Rights Policy and Supplier
O livelihood framework.
Code of Conduct are aligned to the UN on risks and impacts;
Guiding Principles on Business and Human Health and safety ontinue to enhance farmer
C
Rights (UNGPs); We’re committed to ensuring a safe working
environment for our employees and
livelihoods, such as by helping
uman rights criteria are included in due
H to increase yields and improve
contractors, as well as for tobacco farmers in
diligence procedures for our tobacco leaf
our supply chain, such as through: farm productivity;
suppliers via the industry-wide Sustainable
Tobacco Programme; roup-wide health and safety programmes
G ontinue to aim for zero accidents
C
and employee training; for all our employees and
nnual human rights risk assessments for
A
all our other suppliers, with independent ailored initiatives for higher-risk areas of
T contractors Group-wide; and
audits for those with the highest risks; our business, such as manufacturing and
Trade Marketing & Distribution; ignificantly increase the
S
trengthening our farm monitoring with
S
representation of women and
our new global digital system that enables roviding our contracted farmers with best
P
issues to be tracked in real time for prompt practice health and safety training, and focus nationalities in senior
remediation; access to personal protective equipment management.
(PPE); and
articipating in multi-stakeholder groups,
P
SG Report
E
such as the ECLT Foundation and Slave-Free eveloping a new operational standard for
D Find full details of our policies, management
Alliance; and PPE in tobacco growing to drive a consistent approach, performance and targets for all
approach across our supply chain. our focus areas in our ESG Report, including
onducting human rights impact
C
more details on these topics, as well as on
assessments, aligned to the UNGPs, in People and culture anti-illicit trade.
tobacco-growing countries. We’re creating a fulfilling, rewarding and b
at.com/sustainabilityreport
responsible workplace culture by:
Farmer livelihoods
We’re helping to enable prosperous Implementing Group-wide diversity and
livelihoods for our contracted farmers, such inclusion initiatives;
as by:
L istening and responding to our employees’
eveloping new tobacco seed varieties that
D views via our Group-wide workforce
offer greater yields, as well as higher quality engagement channels; and
and resistance to diseases, and so help
Investing in world-class training and
boost farmers’ profits;
development programmes.
HIGHLIGHTS FOR 2019
12–20% 82% EMPLOYEE
5,000+
INCREASE IN ENGAGEMENT
HUMAN RIGHTS 18% REDUCTION IN
TOBACCO CROP YIELDS score in our 2019
TRAINING SESSIONS TOTAL ACCIDENTS
thanks to our new seed ‘Your Voice’ survey,
for farmers in our tobacco to employees and
varieties covering 57% of 7% higher than the
leaf supply chain in 2019 contractors in 2019
our 2019 volumes from FMCG comparator
contracted farmers
BAT Sustainability Strategy Report 2019Health Supporting Creating Independent
Introduction impact ESG priorities value assurance 15
Next steps
ROBUST CORPORATE ontinue to strive for 100%
C
GOVERNANCE adherence to our SoBC and
to increase the awareness,
understanding and accessibility
We are committed to achieving Responsible marketing
of our SoBC policies and
We’re committed to ensuring our products
our business objectives in are marketed responsibly to adult-only Speak up channels;
an honest, transparent and consumers, such as through:
00% adherence to our
1
accountable way, and sustaining ur International Marketing Principles
O International Marketing
a culture of integrity in (IMP) governing our marketing across all Principles (IMP);
our product categories, including strict
everything we do. requirements to be responsible, accurate 00% adherence to our global
1
and targeted at adult consumers only; Youth Access Prevention (YAP)
Business ethics
Expecting our markets to adhere to our Guidelines; and
Ethical values form the basis of our culture global Youth Access Prevention (YAP)
and are expressed in our Standards of Guidelines wherever our products are E nsure all our engagement with
Business Conduct (SoBC). Our Delivery with sold; and regulators and other stakeholders
Integrity programme builds on our already is conducted in accordance
strong foundations to drive a consistent
Updating our IMP and YAP Guidelines
approach to managing key risks including to keep pace with best practice and our with our SoBC Lobbying and
bribery and corruption, such as by: growing range of product categories. Engagement Policy.
egularly reviewing and updating our SoBC
R Regulation and policy engagement
ESG Report
to remain at the forefront of best practice; We’re committed to conducting all our Find full details of our policies, management
engagement activities with external approach, performance and targets for all
roviding comprehensive SoBC training
P stakeholders with transparency, openness our focus areas in our ESG Report, including
and communications for all our employees and integrity, such as by: more details on these topics as well as for
every year; Board diversity, executive remuneration,
Incorporating our longstanding Principles tax transparency, stakeholder engagement
Increasing the accessibility, awareness and and materiality.
understanding of our SoBC and Speak up for Engagement into a new Lobbying
and Engagement Policy in our SoBC, to b
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channels, such as with our new SoBC app
available in 12 languages; and highlight the importance of these principles
along with all other Group policies;
eveloping procedures and tools to
D
promote the consistent application of
Applying robust procedures and controls
our SoBC policies across the Group – for for political contributions;
example, our Third-Party Anti-Bribery and
Monitoring of regulatory engagement
Corruption Procedure. activities across the Group by our
governance committees; and
Respecting the WHO Framework
Convention on Tobacco Control (FCTC)
5.3 provision, which calls for transparent
and accountable interaction between
governments and the tobacco industry.
HIGHLIGHTS FOR 2019
100% EMPLOYEES
UPDATED
COMPLETED OUR 100% £41.4BN TOTAL
OUR IMP
SoBC TRAINING COMPLIANCE TAXES PAID
to reflect developments
and formal compliance with our Youth Access including taxes borne
in marketing, technology
sign-off procedures Prevention Guidelines and collected in 2019
and our product portfolio
in 2019
BAT Sustainability Strategy Report 2019Creating
16 value
CREATING Our consumers are at the core of everything we do
and our success is underpinned by addressing their
VALUE FOR OUR preferences; offering them a choice of enjoyable,
CONSUMERS innovative and potentially less risky products.
WE ENABLE WE COMMUNICATE AND
CONSUMER CHOICE MARKET RESPONSIBLY
Our global community of consumers is diverse and has We provide clear and accurate product information for
differing needs. We aim to satisfy evolving consumer consumers in a responsible way, enabling them to make
preferences with a broad portfolio that considers informed choices, while not appealing to youth.
geographic and market differences.
– Strict IMP compliance procedures in place,
– 150 million daily consumer interactions give us including a requirement for all marketing materials to
a deep understanding of our consumers, enabling us to be formally reviewed and approved by our Legal and
develop products that meet their different needs. External Affairs function.
– Wide range of products to choose from, including – IMP training provided for our marketing employees
traditional cigarettes, vapour products, THPs, and and trade representatives, as well as any external
modern and traditional oral products. agencies we work with.
– 48 markets where our new category products are – Digital marketing hub and toolkits to help our
available and plans to launch in further markets as markets apply our IMP online, such as regarding digital
quickly as possible, prioritising those with the right age verification and the use of social media.
conditions in place.
– Responsible flavours and features, such as for
– ‘Test and learn’ strategy helps us get the right e-liquids, to avoid appealing to youth.
mix of communication, product and price to maximise
– Youth access prevention (YAP) activities,
the harm reduction potential of new category products.
such as supporting proof-of-age schemes and providing
training for retailers and point-of-sale materials with
YAP messaging.
WE PRIORITISE WE ADDRESS THE ENVIRONMENTAL
CONSUMER SAFETY IMPACTS OF OUR PRODUCTS
Ensuring high quality and consumer safety is at the heart We are committed to addressing our consumers’ concerns
of how we design, develop and manufacture our products. about the environmental impacts of our products,
including post-consumption waste and the use of plastics
– 1,500+ scientists focused on researching and
and other materials.
developing our new category products.
– 13 markets with cigarette butt recycling and anti-litter
– Decades of product stewardship experience
programmes in collaboration with local governments,
at our world-class R&D centre in the UK.
NGOs and other third parties.
– Thousands of hours of testing undertaken before
– New projects to reduce plastic waste in packaging
our products reach the consumer.
and explore opportunities to improve the recyclability of
– New world-class battery and product safety lab our products.
opened in 2019 in our R&D centre.
– Take-back and recycling schemes being trialled
– E-liquids manufactured in Europe and using for new category products in France, Japan, Mexico,
pharmaceutical-grade nicotine. South Korea and the UK. For example, in Mexico we
incentivise consumers to return their Vype by e-liquid
– Openly sharing our approach and expertise
pods by rewarding them with 50% off their next pack
for the development of robust, industry-wide product
for every two pods returned and a free pack for every
quality and safety standards.
10 pods returned.
BAT Sustainability Strategy Report 2019Health Supporting Creating Independent
Introduction impact ESG priorities value assurance 17
OUR STRATEGY PUTS THE WE WILL BECOME A BUSINESS
CONSUMER FIRST, FOCUSING ON THAT DEFINES ITSELF NOT BY THE
UNDERSTANDING ADULT CONSUMER PRODUCTS IT SELLS BUT BY THE
CHOICE AND ENJOYMENT. CONSUMER NEEDS IT MEETS.
Kingsley Wheaton
Chief Marketing Officer
11m
consumers regularly
use one of our non-
combustible, potentially
reduced-risk products
VALUE CREATED
FOR OUR CONSUMERS
- A
wide choice of superior and
stimulating products for every
mood and moment;
- B
rands they can trust that are
manufactured to high quality
and safety standards;
- A
lternatives to cigarettes with
reduced-risk potential;
- T
ransparent, clear and
accurate information, based
on robust science, about the
relative risks; and
- R
esponsible marketing that
doesn’t engage or appeal
to youth.
100%
compliance with our
Youth Access Prevention
Guidelines
BAT Sustainability Strategy Report 2019Creating
18 value
CREATING Protecting the environment, enhancing farmer livelihoods,
respecting human rights and supporting the communities
VALUE FOR where we operate adds value to society and is a pragmatic
SOCIETY and commercial approach that secures the long-term
sustainability of our business.
WE PROTECT THE ENVIRONMENT WE RESPECT HUMAN RIGHTS
Through our long-standing environmental management Our integrated human rights strategy is aligned to the UN
systems, we are addressing a wide range of issues, with a Guiding Principles and includes policies, due diligence,
particular focus on climate change, energy use, water use, grievance channels and remediation procedures for our
waste management and sustainable agriculture. own business operations and supply chain.
– Steady progress towards our ambitious new – Industry-wide Sustainable Tobacco Programme
target to be carbon neutral by 2030, as well includes human rights criteria for our leaf suppliers.
as alignment with the Task Force on Climate-related
– Regular farm monitoring by our Extension Services,
Financial Disclosures (TCFD) by 2022.
with over 90% of our contracted farmers monitored
– Increasing our use of renewable energy using our new global digital system.
through green energy certificates and on-site energy
– Raising farmers’ awareness of human rights
generation projects.
issues and overcoming any cultural barriers, through
– Optimising water use in our factories including over 5,000 training sessions in 2019, with more than
recycling water used in manufacturing processes. 350,000 attendances.
– Recycling over 90% of our total waste – Multi-stakeholder partnerships to find collaborative
and working towards zero waste to landfill. solutions to address the root causes of human rights
issues, including 20 years in the global ECLT Foundation.
– Tackling deforestation by promoting the
sustainable use of forest resources among contracted – Human rights impact assessments in tobacco-
tobacco farmers, as well as helping them reduce growing areas in Indonesia and India in 2019, with two
agrochemical use and use water more efficiently. more planned in Mozambique and Mexico in 2020.
– Engaging with our largest product materials – Annual human rights risk assessments on 100%
suppliers to manage climate risk and reduce Scope 3 of suppliers of other product materials and indirect
carbon emissions in our supply chain. goods and services, with independent audits for those
with the highest risk.
WE SUPPORT COMMUNITIES WE ENHANCE FARMER LIVELIHOODS
Around the world, we partner with NGOs and other We support our 90,000+ contracted farmers through the
stakeholders on projects that support the communities and work of Leaf Science & Research and our Extension Services
landscapes where we operate. of expert field technicians.
– £46.1 million invested in community projects and – Increasing yields by 12–20%, depending on
charitable donations in the last three years. growing conditions, thanks to our quality tobacco seed
varieties and agronomy support, so helping to boost
– Afforestation and environmental programmes in
farmers’ profits.
25 countries, including in Bangladesh and Pakistan that
have planted over 183 million tree saplings since the – Business management training for farmers
early 1980s, and are among the largest private sector- delivered by our Extension Services and strategic
driven programmes in the countries. suppliers, including over 2,700 sessions in 2019 with
more than 76,000 attendances.
– Rural infrastructure programmes in eight countries
to help provide access to clean drinking water, solar – Increasing farm efficiency and productivity
energy, healthcare and other basic amenities, such as in through technology such as automated curing barns that
Pakistan where our mobile doctor units bring free health use 30% less fuel and are 50% less labour intensive.
services for people across six farming regions.
– Enhancing food security by educating and supporting
– Empowerment programmes in 53 countries that tobacco farmers to grow other crops, such as vegetables,
provide scholarships, training and skills development, maize and soy, which can also bring additional
micro-financing and support for small businesses and sources of income.
social enterprises.
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