Environment

In 2016, we developed a new set of environmental targets for 2025, as well as continuing to focus on our long-term goal to cut carbon dioxide equivalent (CO2e) emissions by 80% by 2050 from our year 2000 baseline. Our focus in 2017 has been to identify opportunities for each of our business functions to play a role in achieving these targets, as well as adapting to changes in our business.

For instance, although the production and sales of our Next Generation Products (NGPs) still account for a small portion of our direct environmental impact, we have expanded the scope of our environmental reporting to include this, in light of our ambitious growth plan for our NGPs.

In 2018, we will be integrating data from our 2017 Reynolds American Inc. acquisition. We also plan to conduct environmental life-cycle assessments across our products.

Carbon emissions

Goal: Reduce our CO2e emissions by 55% to 0.68 tonnes per million cigarettes equivalent (MCE) produced by 2025, and by 80% to 0.30 tonnes per MCE by 2050 (against year 2000 baseline)

Tonnes CO2e per million cigarettes equivalent (MCE) produced1

-46%
from our 2000 baseline
2000 baseline 2013 2014 2015 2016 2017 2025 target 2050 target
1.52 0.85 0.83 0.80 0.84 0.82 0.68 0.30

Against our 2000 baseline, we have made significant progress with a 46% reduction.

Having previously achieved significant reductions from baseline for our CO2e intensity metric, performance in 2017 has remained relatively steady. This was primarily due to a fall in production volumes, the integration of new sites from 2016 acquisitions, and expanding production at sites that had a greater reliance on fossil fuels.

Our efforts to reduce our carbon footprint across our operations includes investing in energy-efficient technologies, switching to low-carbon or renewable energy sources, and optimising our logistics and fleet with new standards for fuel efficiency, engine size and emissions. We have also optimised load capacity to reduce the number of journeys we need to make.

In 2017, we also aligned our reporting of carbon emission from electricity used, with updates made by the International Energy Agency (IEA). The updated emission factors were slightly lower than those used in previous years and as a result we observed some additional reductions in our reported data.

In 2016, we have committed to increase use of renewable energy across our operational sites to 25% by 2025. We believe our new focus on increasing the ratio of renewable energy will help contribute towards achieving further CO2e reductions against our long-term targets. In 2018, plan to review the measurement and reporting of our Scope 3 emissions.

Energy use

Goal: Reduce our energy use by 25% to 9.17 gigajoules/MCE by 2025 (against year 2007 baseline)

Energy use in Gigajoules per MCE produced1

-11%
from our 2007 baseline
2007 baseline 2013 2014 2015 2016 2017 2025 target
11.82 10.59 10.50 9.98 10.41 10.48 9.17

Having previously achieved significant reductions from baseline for our energy intensity metric, performance in 2017 has remained relatively steady, with a 1% increase from 2016. This increase was primarily due to a fall in production volumes and the integration of new sites from 2016 acquisitions, as well as an increase in volumes processed at our green-leaf threshing sites (GLTs) which, following a reduced harvest in 2016, returned to previous levels; and improvements in how we capture our freight data.

Additionally, as a result of expanding the scope of our environmental data to include production and sales of our NGPs in 2017, we have observed that production of some components for our NGPs is more energy intensive compared to our conventional cigarettes.

To continue improving energy efficiency, we invest in energy assessments and in line with these, we implement projects that also deliver cost savings. In addition to these efforts in our manufacturing, we try to optimise our logistics (such as increasing load capacity or fill rates) and improve fleet performance by applying new standards for fuel efficiency, engine size and emissions when renewing all fleet vehicles. 

In 2016, we have committed to increase use of renewable energy across our operational sites to 25% by 2025.

Goal: Increase the amount of renewable energy we source to 25% by 2025

Percentage of total energy use from renewable sources2

8.5%
of our 2017 energy consumption was from renewable sources
2016 2017 2025 target
8.2% 8.5% 25%

We are also committed to increase use of renewable energy across our operational sites to 25% by 2025. This may not seem like a stretching target, but the diverse geographies in which we operate present challenges, such as infrastructure for renewables simply not being available in many of our markets.

In 2017, we achieved a slight increase in our Group’s energy use from renewable sources, now at 8.5%. Historically, Western Europe has been one of our regions with the highest emissions, with many countries highly dependent on fossil fuels. However, in recent years, this region has seen a huge growth in renewables. We have actively looked to harness green electricity with Guarantees of Origin, where possible, as well as identifying opportunities for on-site renewables generation, to improve the energy mix across our operations. As a result, 45% of our manufacturing sites in the region now source green energy.

Worldwide, we have 14 sites that currently source electricity exclusively from renewable sources, including Augustów in Poland, Groningen in the Netherlands and Kanfanar in
Croatia, as well as our global headquarters in London.

We are now reviewing other renewable energy opportunities across the Group to drive progress towards our target.

Water

Goal: Reduce the total amount of water withdrawn by 35% to 3.17 cubic metres per MCE by 2025 (against 2007 baseline)

Water withdrawn in cubic metres per MCE1

-33%
from our 2007 baseline
2007 baseline 2013 2014 2015 2016 2017 2025 target
4.85 3.72 3.71 5.56 3.44 3.27 3.17

Goal: Increase the total amount of water we recycle to 15% by 2025 (against 2007 baseline)

Percentage of total water recycled and reused1

+1%
from our 2007 baseline
2007 baseline 2015 2016 2017 2025 target
10% 9% 11% 11% 15%

In 2017, total water withdrawn decreased by 47,561 cubic metres, a 1.3% reduction in absolute terms. For our water intensity metric, we achieved a 5% reduction compared to 2016. However, our water recycling rate performance in 2017 remained steady, due to production volumes in some sites migrating to those where water reuse is not possible due to local infrastructure not being available or yet in practice.

While our manufacturing processes don’t use as much water as other industries, we understand the reality of increasing water scarcity in some parts of the world and this has led us to expand the scope of our water risk assessments. Previously only conducted at our strategic, high-risk sites, these assessments were completed by all our factories and green-leaf threshing sites in 2017.

While reductions in the total amount of water withdrawn at our manufacturing and commercial sites have already been made of a number of years, the water risk assessments have enabled us to identify further opportunities to improve maintenance routines, metering and quicker response to leakages. By applying these simple measures, some sites, such as our cigarette factories in Kenya, Chile, Singapore and Bangladesh saw significant reductions in the amount of water withdrawn.

Waste

Goal: Reduce our waste to landfill by 80% to 0.002 tonnes/MCE by 2025 (against year 2007 baseline)

Waste sent to landfill3 in tonnes per MCE produced

-68%
from our 2007 baseline
2007 baseline 2013 2014 2015 2016 2017 2025 target
0.025 0.0124 0.0083 0.0082 0.0084 0.0077 0.002

In 2017, Group waste to landfill decreased by 4% in absolute terms compared to 2016 (a reduction from 8,931 tonnes to 8,599). In intensity terms, we were pleased to achieve an 8% reduction compared to 2016. We also recycled 93.2% of our waste in 2017.

Additionally, we have almost 25% of our manufacturing sites on zero waste to landfill status, and action plans in place to achieve this at 20 additional sites that already recycle over 90% of their waste.

Goal: Reduce the total volume of waste generated by 10% by 2025 (against year 2007 baseline)

Total volume of waste generated in tonnes ('000)

-2%
from our 2007 baseline
2007 baseline 2013 2014 2015 2016 2017 2025 target
135 130 128 131 131 132 122

Although we were able to achieve an 8% reduction in our waste sent to landfill in 20017 compared to 2016, our total waste generation increased by 1% in 2017. While we continued to see reductions in the amount of waste generated from our business as usual activities, this was offset by an increase in construction waste due to factory expansions at a small number of sites for production of our Next Generation Products (NGPs), as well as moving production to other sites, which required expansion or subsequent construction activities. We anticipate construction waste may continue to increase, as we further expand our sites for manufacturing NGPs.

Goal: Recycle at least 95% of our total waste generated each year

Percentage of waste recycled each year

93.2%
of our waste recycled in 2017
2013 2014 2015 2016 2017 2025 target
88.9% 92.6% 92.8% 92.6% 93.2% 95%

In 2017, 93.2% of Group waste was recycled, a slight improvement to 2016, despite the incorporation of new sites with recycling rates below our Group average.

Please see www.bat.com  for more information on our approach to environmental management.

  1. We have updated the following previously reported figures: 0.79 in 2015 and 0.81 in 2016; energy use per MCE in 2015 of 10.28 in 2013, 10.26 in 2014, 9.75 in 2015 and 9.92 in 2016; and water use per MCE of 3.71 in 2013, 3.69 in 2014 and 3.43 in 2016. This is broadly due to expanding the scope of recent and historical data to include three sites in one country for completeness, and correction of reported volume of MCEs in another site. Additionally, following the implementation of our new reporting system, we have taken steps to improve our calculation methodology, which has resulted in slight adjustments to overall historical data. Although the remaining 2015 and 2016 environmental data points have not been restated, as the contribution from these sites did not result in a notable change to the consolidated figures, subsequent corrections have still been made to our internal reporting for completeness.
  2. We began measuring performance against this metric systematically from 2016, so data is not available for previous years.
  3. Data is reported with an additional decimal unit compared to previous years, to enable better comparison on year-on-year performance.
EY LogoThe data on this page has been independently assured by Ernst & Young LLP. Please see the full assurance statement for details of the scope of work and conclusions.
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