Our response to the Panel's statement

The Panel’s insights and constructive feedback are invaluable in helping to ensure our reporting meets stakeholder expectations and identifying areas for improvement.

We would like to thank the Panel members for their time and thorough review of our Report and performance. We were pleased to have the opportunity to apply many of their comments prior to publication of our Report , including providing greater clarity on our R&D investment into Next Generation Products (NGPs) and harm reduction, as well as more detail on what we regard as an appropriate regulatory framework for NGPs.

We are committed to acting upon their additional suggestions in future reports:

Process, materiality and performance

We believe the process for the first year of the Panel’s review worked well and found the open discussion of the issues and challenges incredibly beneficial. Such was the value of the Panel’s input, we have invited them to engage at an earlier stage of the reporting process in the future.

In 2017, we plan to undertake a new, comprehensive materiality assessment, including detailed stakeholder input. We will work to include more detail and clarity on this process in our next Report.

While our performance data is comprehensively covered online on this website, we recognise, and are committed to including, the Panel’s suggestion for more data transparency in the main Report in the future.

Harm reduction

We appreciate the Panel’s suggestions for more detail on our extensive stakeholder engagement for this important area, as well as further clarity on our research and regulatory views.

In February 2017, we published a Harm Reduction Focus Report , which we hope will help address some of the comments by providing more in-depth information on these complex issues.

Sustainable Agriculture and Farmer Livelihoods (SAFL)

We are committed to include key indicators for the Sustainable Tobacco Programme (STP) and SAFL in future reports. We also plan to undertake a detailed mapping exercise of our new NGP supply chain in 2017 and will openly report on the results of this.

In addition, we plan to publish a new Focus Report on Sustainable Agriculture and Farmer Livelihoods later in 2017, which will include more detail on the programmes and our supply chain risks and opportunities.

Corporate behaviour

We note the Panel’s concern that this section lacked focus due to the variety of topics covered and the need for more clarity on marketing and youth access prevention. As detailed in Responsible marketing, we are currently working on the development of new Youth Access Prevention Principles for all our product categories – from conventional cigarettes to NGPs – which we will cover in our next Report.

The Panel’s suggestions for potential changes will form valuable inputs into our 2017 materiality assessment, as well as our planning for next year’s Report.

British American Tobacco
March 2017