bat sustainability report 2007 - Environmental performance

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EN1  Materials used by weight or volume

The rise was due to increased tobacco leaf processing (threshing) and to manufacturing relocations requiring closure of some sites and new start-ups, which both cause increased materials use. Inputs are measured at each operation to track materials intensity and environmental impacts.

Note: As leaf tonnage includes both unprocessed tonnage entering processing and processed leaf entering factories, leaf tonnage measured for environmental reporting purposes is typically higher than tonnage used to manufacture product. 

EN2  Percentage of materials used that are recycled input materials

In 2007, 0.16 per cent of materials used were reported as recycled input materials, compared to 0.64 per cent in 2006.  These are mostly reconstituted tobacco products, made from by-products of the manufacturing process.

EN3  Direct energy consumption by primary energy source

Direct energy includes both primary (e.g., natural gas for heating) and intermediate (e.g., electricity for lighting) energy used by Group companies (WBCSD scope 1 and 2).

The reduction at sites and offices was due to energy conservation activities and manufacturing rationalisation.  Increased energy use by fleet vehicles related to increased milage due to market territory increases.

EN4 Indirect energy consumption by primary source

Indirect energy is the energy required to produce and deliver purchased electricity.

The reduction was due to manufacturing rationalisation and relocation of production.

EN5  Energy saved due to conservation and efficiency improvements

Centrally, we collect qualitative information on these activities.  In 2007 we continued with energy conservation programmes, which include measuring, reducing and replacing energy and using renewable fuels and fuels with a lower carbon footprint.

EN6  Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives

We do not report on this indicator as we do not believe it is relevant to our business.

EN7  Initiatives to reduce indirect energy consumption and reductions achieved

We are introducing communications solutions which, over time, could lead to reduced business travel.

EN8  Total water withdrawal by source

The reduction was due to manufacturing rationalisation, water conservation activities, plumbing improvements and leak detection and rectification.

EN9  Water sources significantly affected by withdrawal of water

This information is more relevant locally and we do not collate global data on it.

EN10  Percentage and total volume of water recycled and reused

EN11  Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

Group companies own or lease 19,610 hectares of land, of which 9,380 hectares is leased or owned by companies for conservation purposes.

During 2007, a biodiversity assessment tool was provided to our companies, enabling them to identify and scope threats to biodiversity.  The assessment, through a three stage plan, uses the combined resources of employees and other stakeholders, including NGOs, local communities and universities, leading to the development of corrective actions where appropriate.

EN12  Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas

We are evaluating the relationship between our activities and biodiversity conservation. Three assessments from Brazil, Uganda and Sri Lanka have been used to develop a process for evaluating site and species management and their applications to conservation field work. This process is captured in a working draft of our Best Practice launched in 2007.

A Biodiversity Statement applies to all Group companies setting out our commitments for managing biodiversity. See EN14 for more information on the Biodiversity Statement.

We also have our supplier evaluation and improvement tools to include considerations on biodiversity and environmental management (see sections on SRTP and BEST on www.bat.com/tobacco ).

EN13  Habitats protected or restored

As outlined in EN11 and EN14, we are undertaking a process to evaluate more fully our biodiversity impacts and risks.  Our agronomy practices include a range of measures aimed at protecting habitats.  Our Social Responsibility in Tobacco Production programme for leaf growers covers good agricultural practices for improving soil and water conservation, appropriate use of agrochemicals, and environmental, occupational health and safety management.  It also encourages farmers who require wood for tobacco curing to obtain it from sustainable sources.

A number of the British American Tobacco Biodiversity Partnership projects focus primarily on the restoration or protection of habitats.

In Brazil, in order to improve the conservation of natural forest within land used for tobacco farming and other native areas of land, a ‘Green Corridor’ has been created in Paraná State.  Our Brazilian subsidiary Souza Cruz is managing this project with Flora and Fauna international, one of our NGO partners in the Biodiversity Partnership.  Assessment has identified risks and has helped to provide information to contract farmers in the Paula Freitas municipality.

In Uganda, the final stages of a biodiversity risk assessment are being completed and two new mitigation projects are now being established.  The Partnership has been working with our Ugandan business in the West Nile, Bunyoro and North Kigezi areas.  A review and assessment of the operating environment has produced an evaluation of the potential biodiversity risks and opportunities and a summary of measures for priority setting.  A stakeholder workshop was held in Kampala in March 2007.  This enabled our company to engage with local conservation NGOs to discuss possible collaboration on future projects and helped with identifying biodiversity priorities in the company’s leaf growing operations, corrective actions and mitigating measures.

A forest regeneration and protection project in Uganda seeks to restore and protect natural forest habitats within leaf growing areas.  It also aims to enhance protection of river habitats, water catchments and forest reserves and to include educating and raising awareness amongst staff, local communities and other stakeholders.

EN14  Strategies, current actions, and future plans for managing impacts on biodiversity

Our Biodiversity Statement sets out the Group’s position.  It includes a requirement for our companies to undertake biodiversity risk assessments to incorporate biodiversity impacts management into business planning.

The following are set out in the Statement, which is on the Biodiversity Partnership website www.batbiodiversity.org  and at www.bat.com/principles :

• We will always ensure that our business is in compliance with all international, national and local biodiversity regulations as a minimum requirement.
• In all geographical areas of our own business operations, and for potential areas of future operation, we commit to assessing our impacts, i.e. we will identify areas of high biodiversity value and understand our impacts on ecosystem services.
• In addition, we will undertake impact assessments in areas of high biodiversity value where our ecological footprint is changing due to an increase or reduction in production or changes to production methods.
• We will undertake these assessments, engaging with stakeholders such as farmers, conservation organisations, universities and governments, to understand local issues and take into account their needs and requirements.
• These assessments and stakeholder engagements will lead to action plans, to minimise, mitigate or offset our impacts, with effective monitoring mechanisms to ensure such action plans are implemented and progress is reported.
• We will also take steps to share information with suppliers, assisting them in understanding and managing their impacts on biodiversity, hence minimising our impact throughout the supply chain, e.g. in the sourcing of leaf and packaging materials.

In 2007, we continued to develop our capacity to assess the risks posed by activities by continuing biodiversity mapping exercises, in which our companies help to evaluate the risks to biodiversity in their countries.  Our companies have annotated maps of their countries highlighting the areas within their sphere of influence where there may be direct or indirect effects on the local environment which could subsequently impact biodiversity.  23 countries are taking part and in 2007, our companies in Brazil, Indonesia, Uzbekistan, Kenya, Uganda, China, Nigeria, Bangladesh, Pakistan and Sri Lanka were updating their maps.

EN15  Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations by level of extinction risk

All Group companies are required to undertake a risk assessment to identify the presence of protected or sensitive areas, IUCN Red List species and any negative impacts due to company operations on the diversity of life and natural systems within the spheres of influence of company owned or leased tracts of land.

Through our Biodiversity Assessment tool, companies are supplied with reference materials to assist them in identifying biologically sensitive sites and IUCN Red List species within them. These references include:

• Birdlife International’s Important Bird Areas (IBA) and Endemic Bird Areas (EBA);
• IUCN Protected Areas I – IV and Red List;
• Ramsar Convention on Wetlands;
• UNESCO World Heritage sites.

EN16 Total direct and indirect greenhouse gas emissions by weight

We report all greenhouse gases in CO2 equivalent.  Emissions of CH4, N2O, HFCs, PFCs and SF6 are estimated as insignificant.

The 2007 changes are due to energy conservation and manufacturing rationalisation (WBCSD Scope 1) and a small increase in freight and business travel (WBCSD Scope 3).

EN17  Other relevant indirect greenhouse gas emissions by weight

We purchase tobacco from farmers and dealers.  The curing of some types of tobacco by farmers results in greenhouse gas emissions.

The 2007 change reflects the continuous adjustments in our global sourcing.  Differing curing practices influence the volume of estimated CO2 equivalent to varying degrees.

EN18  Initiatives to reduce greenhouse gas emissions and reductions achieved

Reductions are due to manufacturing rationalisation and energy conservation initiatives.  Our greenhouse gas emissions are represented by CO2 equivalent derived from our energy use and waste to landfills.

EN19  Emissions of ozone-depleting substances by weight

We do not report this data as emissions of CH4, N2O, HFCs, PFCs and SF6 are estimated to be insignificant.

EN20  NOx, SOx, and other significant air emissions by type and weight.

We do not report this data as emissions of CH4, N2O, HFCs, PFCs and SF6 are estimated to be insignificant.

EN21  Total water discharge by quality and destination

While there is detailed information about the quality, treatment and destination of waste water at a local level, we no longer consolidate this detail at Group level. 

Our consolidated global figures are for total waste water discharged, broken down to process and sewage waste water and storm water discharged.  In 2007 our total water withdrawn was reduced and our total water discharged increased, due to a reduction in total water consumption.

EN22  Total weight of waste by type and disposal method

The 2007 changes were due to manufacturing rationalisation and relocation of production.

EN23  Total number and volume of significant spills

No significant spills of chemicals, oils or fuels were reported by our companies.

EN24  Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally

We do not report on this indicator as we do not believe it is relevant to our business.

EN25  Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff

No such impacts have been reported as a result of our companies’ activities. Biodiversity risk assessments are underway to help identify any sensitive areas affected by Group operations and within key leaf-growing areas in the supply chain, as part of the work of the British American Tobacco Biodiversity Partnership.

The Tropical Biology Association, one of our NGO partners, is developing a project to investigate the impact of current levels of fertiliser use on freshwater systems in Uganda and to provide simple indicators for monitoring water resources.  The results will shape our approach to our continuing support of sustainable agricultural practices by leaf growers.

EN26  Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation

We do not specifically report on this indicator but provide details of our approach to managing our environmental impacts in the Environment section of our Sustainability Report.

EN27  Percentage of products sold and their packaging materials that are reclaimed by category

Approximately 50 per cent by weight of our products is normally consumed.  The amount of product actually reclaimed is not measured as it is not within our control.

EN28  Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

The incident and £3,063 fine in 2007 was on our company in Malaysia for not meeting water quality standards in discharged water from an expanded tobacco plant in May 2004.

EN29  Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce

The increases were due to manufacturing relocations and organisational changes.

EN30  Total environmental protection expenditures and investments by type

Our global reporting systems do not segregate Environment, Occupational Health and Safety related expenditures.  2007 capital expenditure on environmental projects is mainly investment in more energy efficient plant and equipment.  There was one fine in 2007 of £3,063 (see EN28)