Our observations and areas for improvement will be raised in a report to British American Tobacco management. Selected observations are provided below. Additional specific observations regarding progress made and areas for improvement can be found in the appropriate sections of the printed Summary Report and full online Report. These observations do not affect our conclusions on the Report set out earlier in this statement.
- The Report includes coverage on British American Tobacco’s economic impacts in countries of operation. In addition, we noted improvements to the description of sustainability performance in key markets. These presented a more balanced picture than in the 2009 Report of successes, as well as challenges faced with regard to sustainability in these markets, particularly in relation to illicit trade and child labour.
- We have seen a more structured process at Group level in attaining quality environmental data in 2010. However, further progress is required in the development of local environmental data processes, in particular with regards to the collation, reporting and management of quality environmental data. British American Tobacco has informed us that Group EHS will be focusing on this area in 2011.
- British American Tobacco has processes in place to identify and engage with stakeholders across the organisation. During our attendance at the London held stakeholder dialogues and interviews with selected local companies, we saw evidence that British American Tobacco considers stakeholder opinions in developing and refining key sustainability decisions. Plans have been jointly developed with key stakeholders to address common sustainability challenges, for example in relation to water management, supply chain sustainability and anti-illicit trade activities.
Ernst & Young LLP