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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™. This entails:

  • Committing to providing adult consumers with a wide range of enjoyable and less risky products
  • Continuing to be clear that combustible cigarettes pose serious health risks, and the only way to avoid these risks is not to start or to quit
  • Encouraging those who otherwise continue to smoke, to switch completely to scientifically-substantiated, reduced-risk alternatives
  • Tracking and sharing progress of our transformation

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
  • World-class science
  • Standards and regulation
E

Excellence in ENVIRONMENTAL management

  • Climate change
  • Water and waste
  • Sustainable agriculture
  • Circular economy
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

Reducing the HEALTH impact of our business

  • 50 million consumers of our non-combustible products by 20301
  • £5 billion in New Category revenues by 20251
E

Excellence in ENVIRONMENTAL management

  • Carbon neutral by 20302
  • Reduce water withdrawn by 35% by 20253
  • Eliminate use of unsustainable wood sources by our contracted farmers
  • 100% of plastic packaging reusable, recyclable or compostable by 20251
S

Delivering a positive SOCIAL impact

  • 100% suppliers subject to human rights supply chain due diligence4
  • Enhance farmer livelihoods such as by increasing yields and productivity
  • Achieve zero accidents group-wide1
  • Increase women to 45% of management, and 40% in senior teams by 20251
G

Robust corporate GOVERNANCE

  • 100% adherence to our Standards of Business Conduct1
  • 100% adherence to our International Marketing Principles1
  • New SoBC Lobbying and Engagement Policy
  1. Internal company targets.
  2. CO2 neutral for Operations (Scope 1&2).
  3. From 2017 baseline.
  4. Non-agricultural suppliers

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

ESG Report 2020

Our ESG Report 2020 provides detailed information about our policies, management approach, performance and targets for all our environmental, social and governance (ESG) priorities.

Sustainability report

Our Sustainability Strategy Report 2019 provides details of our Sustainability Agenda and how this creates shared value for our stakeholders to build our purpose for A Better Tomorrow™.

ESG presentation

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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