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

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Sustainability Report 2011

In 2011, we established a Supply Chain Sustainability Stakeholder Panel to give us guidance and challenge on our supply chain sustainability issues. The Panel is made up of two suppliers, two professionals from other FMCG companies and two independent experts. You can read more about the Panel in the viewpoint from the Chair.

Supply chain management We developed our supply chain sustainability strategy in consultation with internal and external stakeholders in 2010. It requires each division of our supply chain to minimise its most significant environmental impacts.

Manufacturing and logistics use more energy and resources than the rest of our direct operations, so the strategy focuses on them. In both areas, we have measures in place to assess and reduce our environmental impacts and are exploring and adopting alternative technologies and renewable sources.



BEST assesses the sustainability performance of our materials suppliers, providing a framework for continual improvement. Suppliers must obtain Approved, Qualified or Certified status in order to be retained by British American Tobacco. During 2011, we carried out 41 BEST reviews, of which 23 gained the minimum Approved status, 16 gained Qualified status and two gained the highest status, Certified.

We use our Sustainable Business Assessment to compare the potential social and environmental impacts and risks associated with new products, components or packaging. Life cycle analysis provides detailed environmental information to incorporate into our decision-making. For example, consideration of energy and CO2 impacts are now used in our global factory sourcing decisions.

Our Business Enabler Survey Tool, which we use to evaluate the sustainability standards of our materials suppliers, now incorporates additional sustainability criteria. We are also integrating further sustainability principles into the selection criteria for our direct materials and machinery suppliers.

Our suppliers are encouraged to monitor and measure their environmental impacts using a scorecard that we trialled in 2011 with strategic materials suppliers. The scorecard was developed in 2010 together with these suppliers and covers energy, water, waste and CO2e. It helps us monitor performance and identify areas for joint improvements. We are now working with these suppliers to develop the next stage of the scorecard and will expand its use to our machinery suppliers.


Through our work with British American Tobacco, we were able to participate in a stakeholder dialogue session and the development of the supplier scorecard. This collaborative approach has been particularly fruitful for us and helped jump start our company-wide sustainability programme. We welcome British American Tobacco’s feedback and sharing of best practices as we continue on our journey.

Juliette Audren, Sustainability Programme Manager, SWM-INTL (paper and reconstituted tobacco leaf supplier)

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