Double Materiality
Our commitment to sustainability is guided by our Double Materiality Assessment (DMA)1, an approach that helps us set our strategic priorities.
Since 2022, we have conducted DMAs1 annually to ensure our sustainability strategy remains relevant and aligned with stakeholder expectations. Each iteration has sharpened our strategic focus, acknowledging the complexity of our supply chain and the need for collaboration across the value chain.
The 2025 assessment marks further progress, incorporating evolving regulatory standards and strengthening cross-functional collaboration. This supports the systematic consideration of the financial dimensions across sustainability topics, contributing to the clarity and resilience of our long-term approach.
Our DMA1 articulated two dimensions:
- Impact materiality: BAT’s impact on health, environment, society and governance-related topics.
- Financial materiality: Financial impact on health, environment, society and governance-related topics on BAT.
Our material sustainability topics
Based on the two dimensions of ‘impact materiality’ and ‘financial materiality’, our 2025 DMA1 highlighted the following material sustainability topics.
Tobacco Harm Reduction (THR)
- Harm reduction and marketing
Climate
- Climate change
Nature
- Water
- Biodiversity and ecosystems
Circularity
- Circular economy
Communities
- Employees, diversity and culture
- Human rights in the value chain
- Community engagement
We understand that the nature of materiality is inherently dynamic, with sustainability matters and stakeholder concerns evolving in response to external trends, regulation, and company plans. For this reason, our results require annual review.
Read more about our DMA1 on pages 70 to 75 of our Combined Annual and Sustainability Report 2025.
Notes:
1. Although financial materiality has been considered in the development of our Double Materiality Assessment (DMA), our DMA and any conclusions in this document as to the materiality or significance of sustainability matters do not imply that all topics discussed therein are financially material to our business taken as a whole, and such topics may not significantly alter the total mix of information available about our securities.
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