BAT announces outstanding results with its first combined Annual & ESG Report

BAT has further enhanced its sustainability reporting with its first Combined Annual & ESG Report*, which embeds detailed information on sustainability and ESG into its statutory Annual Report.  It has done so well ahead of forthcoming global requirements for companies to expand the scope and improve the quality of sustainability-related information they disclose.

New and updated targets have also been announced in the report today, including:

• Achieving 30% renewable energy target by 2025 two years early, resulting in revised target of 50% renewable energy by 2030
• Increasing the initial target of 15% reduction in waste from BAT’s operations by 2025, to 25%
• Expanding the scope of BAT’s 100% reusable, recyclable or compostable packaging commitment, beyond just plastic, by 2025 and
• Setting a new target of zero conversion of natural ecosystems in its Tobacco Supply Chain by 2025 

Mike Nightingale, BAT’s Chief Sustainability Officer, said:

“BAT is proud to further enhance its sustainability reporting with its first Combined Annual & ESG Report. Sustainability and ESG matters are increasingly recognised as having a significant impact both on society and on how well a company performs.  A combined report shows our strong commitment to transparent reporting and integrating sustainability and ESG matters into how we manage our business.

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We are making good progress in advancing our sustainability strategy and building A Better Tomorrow. We are reducing the health impact of our business and further increasing our ambitions as we drive our business transformation. In 2022, for example, we increased the number of consumers using our non-combustible products to 22.5m, while at the same time reducing Scope 1 & 2 GHG emissions by 15% vs 2021. We know we have more to do and look forward to delivering on our ambitious targets.”

This report also includes results of BAT’s first Double Materiality Assessment, an approach to assessing impacts that helps the company to further shape the most important sustainability priorities and actions. Such an approach looks not only at how its business impacts sustainability issues but also how sustainability-related matters impact its business. The results of the Double Materiality Assessment have already helped inform BAT on strategy and will continue to do so through 2023 and beyond. These assessments help companies to adjust their targets and action plans and make it more likely to generate important sustainability improvements.

To further reduce the risk of forests, wetlands, peatlands, grasslands, woodlands and wet/dry savannah being cleared to create farmland for tobacco within its supply chain. ‘Tobacco Supply Chain’ refers to the tobacco supplied by our directly contracted farmers and those of our strategic third party suppliers who participate in our annual Thrive assessment, representing over 80% of the tobacco purchased by volume in 2022.