british american tobacco p.l.c. sustainability report 2011 - Ernst Young observations and areas for improvement

 
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Sustainability Report 2011

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 (see Related information links on this page). These observations do not affect our conclusions on the Report set out earlier in this statement.

  • During our work we have seen evidence of a more detailed analysis of Group EHS data by British American Tobacco’s central EHS function. This has provided them with a greater understanding of performance at an individual unit level and has allowed for the targeting of specific activities to drive improvements in performance. There continue to be areas for improvement in relation to the transposition of data from unit to Group EHS data systems and the level of review applied to performance at a unit and regional level.
     
  • Improving health and safety performance across the Group has been a focus area over the past year and we have seen evidence of regular updates being provided to the Board and senior management. An internal review of accident categorisation has led to improved identification of priority areas and the roll-out of accident reduction initiatives across the Group. Although we have seen a positive downward trend of vehicle-related injuries compared to 2010, these accidents continue to be the most common cause of physical incidents and so the focus needs to continue to identify further areas for improvement.
     
  • British American Tobacco continues to engage with stakeholders to help shape sustainability plans and initiatives. During our attendance at the stakeholder dialogue sessions, interviews with selected key stakeholders and interviews with representatives from local companies, we noted several examples where stakeholder opinion had influenced business decisions. For example, British American Tobacco is considering ways of incorporating renewable energy and low-carbon options into its energy and wider business strategies and is examining opportunities for further collaboration to address the risks and opportunities presented by sustainable agricultural practices.

Ernst & Young LLP
London
March 2012

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