


| Materials used by Group companies | 2007 metric tonnes | 2006 metric tonnes |
|---|---|---|
| 802,259 | 559,906 | |
| 499,545 | 497,564 | |
| 43,647 | 64,210 | |
| Total | 1,345,721 | 1,121,680 |
| Per million cigarettes equivalent produced | 1.29 | 1.06 |
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.

| Direct energy used by Group companies | 2007 gigajoules | 2006 gigajoules |
|---|---|---|
| 8,234,095 | 9,112,844 | |
| 1,799,162 | 1,540,059 | |
| Total | 10,033,257 | 10,652,903 |
| Per million cigarettes equivalent produced | 9.61 | 10.06 |
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 primarily related to increased mileage due to market territory increases.

| Indirect energy used by Group companies | 2007 gigajoules | 2006 gigajoules |
|---|---|---|
| Total | 8,220,270 | 8,585,255 |
| Per million cigarettes equivalent produced | 7.87 | 8.11 |
Indirect energy is the energy required to produce and deliver purchased electricity. The reduction was due to manufacturing rationalisation and relocation of production.
Our environmental management systems are based on ISO14001 and 68 per cent of our sites by production volume hold accreditation.
Throughout our operations we seek ways of enhancing efficiency through use of environmentally sound technologies, by optimising products and processes and by conserving energy and natural resources.
We seek to control and reduce our impacts via the ‘Three Rs’ principle: Reduce, Recover, Recycle.
Responsibility for our Environment, Health and Safety (EHS) policy lies with the Management Board. The policy sets out detailed requirements for all Group companies, including aiming to apply internationally recognised standards. Our policy applies across our own activities and our approach to managing our supply chain.
Our Group Operations Director has overall responsibility for environmental management. Additionally, in each business unit, the General Manager (or organisational equivalent) is responsible for environmental management, and must also appoint another designated member of the company’s board with EHS responsibilities.
Each company must carry out assessments and measurable objectives must be set for each key EHS issue identified, including the use and depletion of natural resources and the disposal of operational waste.