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

 
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Sustainability Report 2011

To manage our environmental impacts we work within our supply chain but to be truly effective we also need to work more with local communities and in collaboration with other international organisations.

Environmental managementReducing our impacts

We have had a comprehensive Environmental, Health & Safety (EHS) management system for many years. We monitor and reduce our direct environmental impacts by making our operations more efficient. We also address our indirect impacts by choosing suppliers with strong environmental credentials and encouraging our existing suppliers to improve their environmental performance.

 

OUR ENVIRONMENTAL TARGETS

To assess our environmental efficiency, we set targets relative to the volume of cigarettes we produce. Each of the targets below is calculated per million cigarettes equivalent.

From our 2000 baseline of 1.38 tonnes:
  • Reduce CO2e emissions by 50 per cent by 2030 and 80 per cent by 2050. (Our CO2e emissions include other greenhouse gases, such as methane.)
From our 2007 baselines:
  • Reduce direct energy use by 6.7 per cent by 2012.
  • Reduce direct water use by 13.4 per cent by 2012.
  • Reduce waste to landfill by 12 per cent by 2012 and recycle at least 85 per cent of our waste each year.

In 2011, we performed well against our key environmental measures for energy, carbon dioxide equivalent (CO2e) emissions, water and waste, primarily due to efficiency improvements alongside an increase in production volumes. This increase in volumes resulted from the recent inclusion of data from our business in Indonesia. In absolute terms, energy increased by 1.9 per cent, with water use and waste to landfill also increasing. You can read more about this in the environmental performance data.

Having met our 2012 targets for energy, water and waste ahead of schedule we had intended to publish new targets in this Report, however, this has been delayed to allow time to review our approach and seek advice on the most appropriate measures to help ensure we continue to improve our performance. During 2011, we developed CO2e and energy reduction plans for our largest manufacturing sites; began a review of the scope of reporting for energy and CO2e; worked to strengthen our water strategy; and integrated data from our 2010 acquisition in Indonesia. We are committed to achieving further reductions in our energy and water use and waste sent to landfill and to meeting our long-term CO2e targets. Given the importance of this, we believe it is prudent to spend more time on the development of new Group targets, so will instead announce them in our 2012 Report.

When it comes to reducing our environmental impacts within our direct operations, our priority is to minimise energy consumption. We aim to do this by carefully assessing and planning our energy needs to maximise efficiency; by investing in energy-efficient equipment; by employee engagement; and by encouraging our suppliers to reduce their energy use.

That said, our long-term ambitions are demanding and to meet them, we must also look at renewable and low-carbon energy sources. This is particularly the case in our manufacturing and logistics operations where our direct energy use is highest. In 2011, we carried out a feasibility review of renewable energy. A number of our sites have followed up with their own investigations. For example, a few of our factories use biomass or tobacco dust as a fuel to provide heat and to reduce waste to landfill.

Water is an important resource for us, especially in manufacturing and tobacco growing. For many years, we have been measuring water use in our operations and working to reduce it. Local initiatives have contributed to us meeting our Group targets, such as in some locations, where water resources are scarce, adopting innovative technologies. For example, two of our factories in Malaysia and Brazil use rainwater collection systems. In Uzbekistan, our company has worked with local stakeholders to improve the existing water irrigation systems for tobacco farmers in the Urgut area. To reduce the water footprint of the entire supply chain, we also encourage our suppliers to cut their water consumption.

ASSURANCE COMMENT FROM ERNST & YOUNG LLP

Our review of British American Tobacco’s stakeholder engagement processes showed that stakeholders continue to place high importance on the Group’s response to climate change. British American Tobacco has set long-term targets to reduce direct CO2e emissions and, in 2007, developed 2012 targets for four environmental metrics, all of which were met in 2011. Although we have seen evidence of five-year CO2e reduction plans being developed for large manufacturing sites, the commitment to develop five-year milestones to reduce CO2e emissions for the Group as a whole has not been met. It will be important to finalise these mid-term targets so that performance against them can be communicated in next year’s Sustainability Report.

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