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ESG

What ESG means at BAT

‘Creating shared value for our stakeholders isn’t just the right thing to do, it makes sound business sense and is central to our strategy to deliver A Better Tomorrow.’

Jack Bowles, Chief Executive

Our ESG agenda creates shared value for our shareholders and broader stakeholders including our consumers, society and employees. Our corporate purpose puts ESG front and centre, with a principal focus on reducing the health impact of our global business in order to build A Better Tomorrow™.

Along with our principal focus, we retain a strong emphasis on other ESG priorities – including addressing climate change and excellence in environmental management. At the same time, we remain committed to delivering a positive social impact and ensuring robust corporate governance across the Group.

Outlined below are the priority areas identified in 2019 and which form the core of our Sustainability Agenda:

H

Reducing the HEALTH impact of our business

  • Consumer choice
    Consumer choice
  • World-class science
    World-class science
  • Standards and regulation
    Standards and regulation
E

Excellence in ENVIRONMENTAL management

  • Climate change
  • Water
  • Waste
  • Biodiversity and afforestation
S

Delivering a positive SOCIAL impact

  • Human rights
  • Farmer livelihoods
  • Health and safety
  • People and culture
G

Robust corporate GOVERNANCE

  • Business ethics
  • Responsible marketing
  • Regulation and policy engagement

Creating shared value for

  • Consumers
    Consumers
  • Society
    Society
  • Employees
    Employees
  • Shareholders
    Shareholders

We have set stretching targets against these priorities:

H
Harm reduction

Harm reduction

  • £5 bn by 2025 in New Categories revenues
  • 50m by 2030 consumers of our non-combustible products
E
Climate change

Climate change

  • Net Zero achieve carbon neutral operations (Scope 1 and 2 CO2e emissions) by 2030 and net zero emissions across our value chain by 2050
  • 30% by 2025 of total energy from renewable sources
  • 100% by 2030 of electricity sourced for operations sites that is renewable
Waste

Waste

  • 100% by 2025 of operations sites to achieve zero waste to landfill
Water

Water

  • -35% by 2025 of total amount of water withdrawn (vs 2017 baseline)
Biodiversity and afforestation

Biodiversity & afforestation

  • Net Zero Deforestation by 2025 aiming for net zero deforestation of managed forests in our supply chain and net positive impact on forests in our tobacco supply chain
S
Farmer livelihoods

Farmer livelihoods

  • Livelihoods committed to enabling prosperous livelihoods for all farmers in our tobacco supply chain
Human rights

Human rights

  • Zero by 2025 aiming for zero child labour in our tobacco supply chain by 2025
Health and safety

Health & safety

  • Zero aiming for zero accidents Group-wide each year
People and culture

People & culture

  • 45% by 2025 increase the proportion of women in management roles to 45%
G
Business ethics

Business ethics

  • 100% aiming for full adherence to our Standards of Business Conduct (SoBC)
Responsible marketing

Responsible marketing

  • 100% aiming for full adherence to our Youth Access Prevention (YAP) Guidelines

Ultimately, ESG at BAT means building A Better Tomorrow™ not just for us, but for all our stakeholders.

ESG Report 2021

Our ESG Report 2021 provides detailed information about our policies, management approach, performance and targets for all our environmental, social and governance (ESG) priorities.

Combined Performance and ESG summary

Our online Combined Performance and ESG summary show how this creates shared value for our stakeholders to build our purpose for A Better Tomorrow™.

What ESG means at BAT

For more information on what ESG means at BAT, please see the attached investor presentation.

Sustainable farming

For more information on our approach visit our sustainability section

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