Independent Assurance Statement to British American Tobacco Management
We have performed a limited assurance engagement on selected Environment, Health & Safety (“EHS”) data presented in the British American Tobacco p.l.c. (“BAT”) 2016 Sustainability Report (“the Report”)1.
BAT management is responsible for the collection and presentation of the information within the Report. BAT management are also responsible for the design implementation and maintenance of internal controls relevant to the preparation of the Report, so that it is free from material misstatement, whether due to fraud or error.
Our responsibility, in accordance with our engagement terms with BAT management, is to carry out a ‘limited level’ assurance engagement on selected data in the Report (“the subject matter information”). We do not accept or assume any responsibility for any other purpose or to any other person or organisation. Any reliance any such third party may place on the Report is entirely at its own risk.
Our assurance engagement has been planned and performed in accordance with the International Standard for Assurance Engagements (ISAE) 3000 Revised, Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. The criteria we have used to evaluate the Report (“the Criteria”) include BAT’s own criteria as set out in the Report, and supplementary internal guidance documents.
The procedures we performed were based on our professional judgement and included the steps outlined below:
Our review of the EHS data was limited to the following metrics for the 2016 reporting period:
|Total scope 1, 2 & 3 greenhouse gas emissions||
Tonnes CO2e per million cigarettes equivalent (MCOE)
|Total energy consumption||Gigajoules per MCOE|
|Total water consumption||Cubic metres per MCOE|
|Waste to landfill||Tonnes per MCOE|
Tonnes per MCOE
Percentage of total waste recycled
|Fatalities to employees, contractors and members of public||Number of incidents|
|Serious injuries to employees and contractors||Number of incidents|
Lost Work Cases (LWCs) to employees resulting in at least one shift off work
Lost Workday Case Incident Rate (LWCIR)
Number of incidents
Number of incidents per 200,000 hours worked
We conducted our work to express a limited assurance conclusion. The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had we performed a reasonable assurance engagement and we do not therefore express a reasonable assurance opinion.
The scope of our engagement was limited to the reporting period, and therefore 2016 performance only. We only reviewed data and descriptions of performance in relation to the metrics identified in the summary of work performed above.
Our work was limited to headquarters activities. We did not visit any local companies.
We have not provided assurance over claims made by BAT that are statements of belief or forward looking in nature.
The responsibility for the prevention and detection of fraud, error and non-compliance with laws or regulations rests with BAT management. Our work should not be relied upon to disclose all such material misstatements, frauds, errors or instances of non-compliance that may exist.
Based on the scope of our review, our conclusions are outlined below:
How complete and accurate is the EHS data presented in the Report?
With the exception of this work, we have provided no other services relating to BAT’s approach to sustainability reporting throughout 2016.
We have implemented measures to ensure that we follow the applicable independence and professional competence rules as articulated by the IFAC Code of Ethics for Professional Accountants and ISQC12. Our assurance team has been drawn from our UK Climate Change and Sustainability Services team, which undertakes engagements like this with a number of significant UK and international businesses.
Ernst & Young LLP
13 March 2017