british american tobacco p.l.c. sustainability report 2011 - Environmental performance

 
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Sustainability Report 2011

We track Group efficiency performance using the normalised output figure ‘cigarettes equivalent produced’. This includes manufacturing of tobacco products and materials and green leaf threshing.

EN1 Materials used by weight or volume
 2010
metric tonnes
2011
metric tonnes
% change
Tobacco leaf*859,974909,4965.76%
Direct materials
(cigarette paper, wrapping, packaging, filters, glues, inks, plug wraps)
433,855442,8932.08%
Indirect materials
(parts, cleaning materials, etc)
32,60441,95128.67%
Total1,326,4331,394,3415.12%
Per million cigarettes equivalent 1.231.17-4.88%

*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.

The Group’s total use of materials increased in 2011 by 67,908 tonnes (5.12 per cent) driven primarily by the inclusion of data from our 2010 acquisition in Indonesia.

EN2 Percentage of materials used that are recycled input materials

In 2011, the percentage of materials used which were reported as from recycled input materials fell from 0.21 per cent in 2010 to 0.11 per cent, a decrease of 47.6 per cent. These are mostly reconstituted tobacco products, made from by-products of the manufacturing process.

The decrease was primarily the result of a site in the UK no longer using 418 tonnes recycled packaging materials and a site in Serbia no longer using 548 tonnes reconstituted materials.

EN3 Direct energy consumption by primary energy source
 2010
gigajoules
2011
gigajoules
% change
Sites and offices3,960,839*3,791,884-4.27%
Fleet and other vehicles1,865,0891,862,629-0.13%
Total5,825,9285,654,513-2.94%
Per million cigarettes equivalent 5.394.75-11.87%

* The previously reported figure for sites and offices in 2010 of 7,997,668 has been restated due to the fact that it also included intermediate energy (e.g. electricity for lighting and energy from biomass) that should not be part of the scope for this GRI.

Direct energy includes the primary energy used (e.g. natural gas for heating and fuel for our own or leased fleet) by Group companies (WBCSD scope 1).

The decrease of 11.87 per cent was primarily driven by site rationalisation.

EN4 Indirect energy consumption by primary source
 2010
gigajoules
2011
gigajoules
% change
Total3,253,057*3,358,1433.23%
Per million cigarettes equivalent3.012.82-6.31%

* The previously reported figure for 2010 of 8,561,792 has been restated due to the fact that it also included direct energy that should not be part of the scope for this GRI.

Indirect energy is the energy required to produce and deliver purchased electricity. As it is a function of many components from each location around the world, which are dependent upon the individual energy efficiency of local providers, the change is difficult to analyse at a Group level.

EN5 Energy saved due to conservation and efficiency improvements

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

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

In line with management measures such as restrictions on business travel, we are expanding the use of communications solutions, such as video teleconferencing facilities, which, over time, could lead to further reductions in business travel.

You can read examples of some of our other initiatives in the environment and supply chain sections.

EN8 Total water withdrawal by source
 2010
cubic metres
2011
cubic metres
% change
Total4,481,0754,621,1473.13%
Per million cigarettes equivalent 4.153.89-6.27%

Total water use in 2011 decreased to 3.89 million cubic metres. Performance against the normalised output measure, cigarettes equivalent produced, has also improved by 6.3 per cent. This was largely due to an increase in production volumes resulting from the inclusion of our 2010 acquisition in Indonesia. Absolute water use increased by 3.1 per cent.

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
 2010
cubic metres
2011
cubic metres
Total445,110341,823
% of water withdrawn9.93%7.4%
EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas

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

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

Working in partnership with three NGOs – Fauna & Flora International, The Tropical Biology Association and the Earthwatch Institute – in the British American Tobacco Biodiversity Partnership we continue to develop our management of biodiversity issues, measuring our impacts, setting targets and reporting on progress.

These include the following 2012 targets:

  • Complete the next round of biodiversity risk and opportunity assessments, using the updated tool, in all our leaf growing operations by end 2014;
     
  • Conduct research to verify the apparent return of wildlife to trial areas of re-established natural forest in Sri Lanka by 2013; and
     
  • Aim for zero use of natural forest for directly contracted farmers’ curing fuels by end 2015.

In 2010, biodiversity risk and opportunity assessments were completed in all our tobacco leaf growing operations. These assessments help us to identify, assess and address risks arising from our impacts and dependencies on biodiversity and ecosystems in and around our leaf growing areas. By the end of 2011, initiatives had been put in place to address the issues identified.

We make sure that the assessments and the actions taken encourage cooperation with local stakeholders and don’t just focus on tobacco. Collaboration with the people living and working in the agricultural landscapes or organisations like our Biodiversity Partnership or local NGOs is often required for these initiatives.

Examples of these initiatives are replanting trees to address water supply issues in a watershed catchment of the Indonesian island of Lombok and a Ugandan project to restore and manage forest and freshwater health. You can read a case study on the Indonesia biodiversity project.

In 2011, we revised the biodiversity risk and opportunity assessment tool with our Biodiversity Partnership. The revised version of the tool should give us a more consistent approach to the assessments across the globe. This will be rolled out to our tobacco growing operations in 2012 and the next round of assessments will be completed by the end of 2014. We also plan to share the assessment tool with other tobacco and agricultural businesses to encourage them to adopt a similar approach.

As a business we focus on addressing our own biodiversity impacts and dependencies and those of our contracted farmers. But through our Biodiversity Partnership, we also address challenging biodiversity issues through projects with external stakeholders in the wider agricultural landscapes and ecosystems on which we depend. You can read about these projects in detail on the Partnership’s website: www.batbiodiversity.org Opens in new window.    

Our Group Biodiversity Statement outlines our aim to embed biodiversity conservation across our businesses. For more information on the Biodiversity Statement, please see EN14.

EN13 Habitats protected or restored

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

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

Our Biodiversity Statement outlines the Group’s position. It includes a requirement for our companies to undertake biodiversity risk assessments to help incorporate biodiversity impacts management into business planning. The following commitments are included in the Statement, which is on the Biodiversity Partnership website www.batbiodiversity.org Opens in new window and at www.bat.com/principles Opens in new window.

  • 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;
     
  • 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; and
     
  • 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.

Working with the Biodiversity Partnership has helped us to develop specific biodiversity tools and generate greater awareness of the issues within the Group and our supply chain. In 2011, we began our third five-year term of the Partnership, with a commitment of £1.5 million per year. There will be fewer but larger projects focusing on biodiversity in agricultural landscapes and the ecosystems on which they depend, specifically:

  • Reducing unsustainable use of forests and restoring natural forests;
     
  • Enhancing freshwater ecosystems, through improved vegetation cover and water management; and
     
  • Promoting agricultural practices that enhance soil health and biodiversity.

You can read about current projects in detail on the Partnership’s website: www.batbiodiversity.org Opens in new window

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

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

EN16 Total direct and indirect greenhouse gas emissions by weight
 2010
metric tonnes
2011
metric tonnes
% change
Direct CO2 WBCSD 1371,610355,410-4.36%
Indirect CO2 WBCSD 2371,989373,6800.45%
Indirect CO2 WBCSD 3177,805187,4365.42%
Total921,404916,526-0.53%
Per million cigarettes equivalent 0.850.82-3.53%

We report all greenhouse gases in CO2 equivalent. The source is primarily energy used and waste to landfill which produces methane. We do not include data on emissions of CH4, N2O, HFCs, PFCs and SF6 as they are estimated to be insignificant.

The reduction was primarily due to various energy reduction initiatives.

EN17 Other relevant indirect greenhouse gas emissions by weight
 2010
metric
tonnes
2011
metric
tonnes
% change
Total1,422,4551,607,965 
Per tonne of leaf cured 5.45.562.96%

We purchase tobacco from farmers and dealers. The curing of some types of tobacco by farmers using wood fuel results in greenhouse gas emissions. If the air curing method used by some farmers is also included, then the 2011 figure would be 4.3 metric tonnes per tonne of tobacco.

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved

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

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, currently less than 0.002 per cent.

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

We do not currently report other greenhouse gas data, such as NOx and SOx emissions, as this is not collected at a global level.

EN21 Total water discharge by quality and destination
 2010
cubic metres
2011
cubic metres
% change
Total water withdrawn4,481,0754,621,1473.13%
Total waste water discharged by Group companies2,498,3192,389,108-4.37%
Per million cigarettes equivalent 2.312.01-12.99%
Process and sewage waste water2,498,3192,388,631-4.39%
Total water consumption1,982,7562,232,03912.57%

The 2011 reductions were largely the result of an increase in production volumes resulting from the inclusion of our 2010 acquisition in Indonesia. Absolute water use increased by 3.1 per cent.

Within our industry, unplanned discharges of water are unusual. We track reports of unplanned water discharge by our companies and will report on any incidents where there has been a breach of local regulation.

EN22 Total weight of waste by type and disposal method
 2010
metric tonnes
2011
metric tonnes
% change
Non-hazardous waste sent to landfills19,08719,9934.75%
Non-hazardous waste recycled112,994118,8455.18%
Non-hazardous waste incinerated479296-38.20%
Other non-hazardous waste15946-71.07%
Hazardous waste sent to approved landfills63194207.94%
Hazardous waste recycled1,8391,678-8.75%
Hazardous waste incinerated4613-71.74%
Other hazardous waste728822.22%
Total134,741141,1524.76%
Per million cigarettes equivalent 0.1250.119-5.12%

The 2011 increase in waste in absolute terms was largely driven by higher waste being generated at a small number of sites due to specific reasons such as production waste rising as a result of an increase in production volumes, salvage waste from a warehouse fire and transferring production volumes to a site with limited recycling facilities.

We approach waste as another raw material and we recycle or reuse it within our business or that of others. We aim to reduce our waste to landfill towards our 2012 goal of 0.022 tonnes per million cigarettes equivalent, 12 per cent lower than our 2007 baseline, which was met ahead of schedule in 2011 with a decrease to 0.017 tonnes largely due to efficiency improvements alongside an increase in production volume resulting from the inclusion of our 2010 acquisition in Indonesia.

EN23 Total number and volume of significant spills

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

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 organisation’s discharges of water and runoff

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

EN26Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation

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

EN27Percentage of products sold and their packaging materials that are reclaimed by category

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

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
 2010
£
2011
£
Total fines970
No. of non-compliance incidences10

In 2011, there were no reported fines for environmental non-compliance.

EN29Significant environmental impacts of transporting products and other goods and materials used for the organisation’s operations, and transporting members of the workforce

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

EN30Total environmental protection expenditures and investments by type
 2010
£
2011
£
% change
Capital improvements14,267,59018,130,60727.08%
Salaries and other operating expenses18,493,32320,731,19012.10%
Fines, penalties and surcharges970-100.00%
Total32,761,01038,861,79718.62%
Per million cigarettes equivalent 30.3432.687.72%

Our global reporting systems are integrated for Environmental, Occupational Health and Safety related expenditures. 2011 capital expenditure increase was primarily driven by instigating contingency plans following the Japan earthquake.

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