News Release18 May 2021
BAT recognised as a Climate Leader by the Financial Times
- BAT continues to win recognition for its ESG efforts, being included in the inaugural FT European Climate Leaders ranking
- The company has set ambitious targets to be carbon neutral in its operations by 2030, and across its wider value chain by 2050.
- BAT is building A Better Tomorrow™ for all stakeholders which includes reducing the health impact of its business.
BAT has been named as a 2021 Climate Leader by the Financial Times in an inaugural European ranking.
FT Europe Climate Leaders 2021 recognises the top 300 of more than 4,000 companies across Europe that achieved the highest reduction in core greenhouse gas emissions in relation to revenues for the period between 2014 and 2019.
BAT has set ambitious climate targets including being carbon neutral in its own operations by 2030. In 2020 alone, BAT achieved a 30.9% reduction in emissions from its operations, contributing to a 37.4% reduction against a 2017 baseline. In March this year, BAT announced a further ambition to be carbon neutral across its value chain by 2050, representing around 90% of its total carbon footprint.
Minimising impacts on the environment, increasing climate change resilience and protecting the natural resources on which society depends are key parts of BAT’s ESG strategy. Some examples include:
- Improving the energy efficiency of factories, such as by upgrading to more efficient and lower-impact equipment.
- Increasing the use of renewable energy through renewable energy purchases and on-site energy generation projects.
- Optimising logistics and fleet, such as through improving vehicle performance and fuel efficiency.
Kingsley Wheaton, Chief Marketing Officer at BAT, said: “We are very pleased to be named by the Financial Times as one of the companies leading the charge against climate impact. BAT is deeply committed to being a responsible business and reducing our impact on the environment.
“Last year, we said we’d achieve carbon neutrality for our own emissions by 2030 and we’re making good progress towards this target. In addition, considering the urgent global challenge of climate change, earlier this year we committed to carbon neutrality across our value chain by 2050. This recognition by the Financial Times is a positive signal that we’re heading in the right direction.”
BAT is committed to its purpose of building A Better Tomorrow™ by reducing the health impact of its business through providing a range of enjoyable and less risky products. BAT’s sustainability efforts and commitment to high standards have received notable independent recognition. These include our inclusion in the Dow Jones Sustainability Indices for 19 consecutive years (the only tobacco company to be listed in the prestigious World Index in 2020), a MSCI rating of BBB and CDP A List status.
Notes to Editors
BAT is a leading, multi-category consumer goods business, established in 1902. Our purpose is to build A Better Tomorrow by reducing the health impact of our business through offering a greater choice of enjoyable and less risky products for our consumers. The company has announced a target of increasing the number of its non-combustible product consumers from 11 million to 50 million by 2030; and to achieve at least £5 billion in New Categories revenues in by 2025. BAT has also committed to encouraging those who otherwise continue to smoke, to switch completely to scientifically-substantiated, reduced-risk* alternatives.
This latest recognition marks a milestone in BAT’s transformation journey towards A Better Tomorrow™ putting sustainability front and centre in all it does. The company’s wider targets include to:
- Increase the number of its non-combustible product consumers to 50 million by 2030;
- Generate New Categories revenue of £5bn in 2025;
- Become carbon neutral for its own operations (Scope 1 and 2 emissions) by 2030 and in its wider operations (Scope 3 emissions) by 2050;
- Eliminate unnecessary single-use plastic and make all plastic packaging reusable, recyclable or compostable by 2025.
*Based on the weight of evidence and assuming a complete switch from smoking. These products are not risk-free and are addictive.
This is a release by British American Tobacco p.l.c. References to ‘British American Tobacco’, ‘BAT’, ‘we’, ‘us’ and ‘our’ when denoting opinion refer to British American Tobacco p.l.c. (the ‘Company’, and together with its subsidiaries, the ‘Group’; associate companies are excluded), and when denoting business activity refer to Group operating companies, collectively or individually as the case may be.
This release contains certain forward-looking statements, including “forward-looking” statements made within the meaning of the US Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as “believe,” “anticipate,” “could,” “may,” “would,” “should,” “intend,” “plan,” “potential,” “predict,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “outlook”, “target” and similar expressions. These include statements regarding our intentions, beliefs or current expectations reflecting knowledge and information available at the time of preparation, and concerning our results of operations, financial condition, liquidity, prospects, growth, strategies and the economic and business circumstances occurring from time to time in the countries and markets in which Group companies operate, including the projected future financial and operating impacts of the COVID-19 pandemic.
All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed that the expectations reflected in this release are reasonable but they may be affected by a wide range of variables that could cause actual results to differ materially from those currently anticipated.
Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are uncertainties related to the following: the impact of adverse domestic or international legislation and regulation; the inability to develop, commercialise and deliver the Group’s New Categories strategy; the impact of significant increases or structural changes in tobacco, nicotine and New Categories-related taxes; changes or differences in domestic or international economic or political conditions; the impact of serious injury, illness or death in the workplace; adverse decisions by domestic or international regulatory bodies; and the inability to lead the development and roll-out of BAT innovations (New Category products and combustibles), including as a result of unsuccessful research and development or a failure to develop robust scientific risk assessment frameworks. The forward-looking statements reflect knowledge and information available at the date of preparation of these materials, and the Company undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.
The material in this release is provided for the purpose of giving information about BAT to stakeholders only and is not intended for general consumers. The Company, its directors, officers, employees, agents or advisers do not accept or assume responsibility to any other person to whom this material is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. The material in this release is not provided for product advertising, promotional or marketing purposes. This material does not constitute and should not be construed as constituting an offer to sell, or a solicitation of an offer to buy, any of our products. Our products are sold only in compliance with the laws of the particular jurisdictions in which they are sold.
Additional information concerning these and other factors can be found in BAT’s filings with the US Securities and Exchange Commission (“SEC”), including the Annual Report on Form 20-F and Current Reports on Form 6-K, which may be obtained free of charge at the SEC’s website, http://www.sec.gov.