News Release02 March 2023
- BAT’s first Combined Annual & ESG Report outlines strong progress against ambitious ESG and sustainability targets;
- BAT shows leadership by being among the first companies globally to conduct and disclose results from a Double Materiality Assessment;
- BAT further announces new and updated sustainability targets; and
- With 22.5m consumers of its non-combustible products, BAT is transforming to reduce the health impact of its business.
BAT has further enhanced its sustainability reporting with its first Combined Annual & ESG Report, which embeds detailed information on sustainability and ESG into its statutory Annual Report. It has done so well ahead of forthcoming global requirements for companies to expand the scope and improve the quality of sustainability-related information they disclose.
New and updated targets have also been announced in the report today, including:
- Achieving 30% renewable energy target by 2025 two years early, resulting in revised target of 50% renewable energy by 2030;
- Increasing the initial target of 15% reduction in waste from BAT’s operations by 2025, to 25%;
- Expanding the scope of BAT’s 100% reusable, recyclable or compostable packaging commitment, beyond just plastic, by 2025; and
- Setting a new target of zero conversion of natural ecosystems in its Tobacco Supply Chain by 20251
Mike Nightingale, BAT’s Chief Sustainability Officer, said:
“BAT is proud to further enhance its sustainability reporting with its first Combined Annual & ESG Report. Sustainability and ESG matters are increasingly recognised as having a significant impact both on society and on how well a company performs. A combined report shows our strong commitment to transparent reporting and integrating sustainability and ESG matters into how we manage our business.
“We are making good progress in advancing our sustainability strategy and building A Better Tomorrow. We are reducing the health impact of our business and further increasing our ambitions as we drive our business transformation. In 2022, for example, we increased the number of consumers using our non-combustible products to 22.5m, while at the same time reducing Scope 1 & 2 GHG emissions by 15% vs 2021. We know we have more to do and look forward to delivering on our ambitious targets.”
This report also includes results of BAT’s first Double Materiality Assessment, an approach to assessing impacts that helps the company to further shape the most important sustainability priorities and actions. Such an approach looks not only at how its business impacts sustainability issues but also how sustainability-related matters impact its business. The results of the Double Materiality Assessment have already helped inform BAT on strategy and will continue to do so through 2023 and beyond. These assessments help companies to adjust their targets and action plans and make it more likely to generate important sustainability improvements.
1To further reduce the risk of forests, wetlands, peatlands, grasslands, woodlands and wet/dry savannah being cleared to create farmland for tobacco within its supply chain. ‘Tobacco Supply Chain’ refers to the tobacco supplied by our directly contracted farmers and those of our strategic third party suppliers who participate in our annual Thrive assessment, representing over 80% of the tobacco purchased by volume in 2022.
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This release contains certain forward-looking statements, including "forward-looking" statements made within the meaning of the U.S. 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 customer target ambition, New Categories revenue targets and our ESG targets.
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. A review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found by referring to the information contained under the headings “Cautionary Statement” and "Group Principal Risks " in the 2021 Annual Report and Form 20-F of British American Tobacco p.l.c. (BAT).
Additional information concerning these and other factors can be found in BAT's filings with the U.S. 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 and BAT’s Annual Reports, which may be obtained free of charge from the BAT website www.haroldmock.com.
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. The forward-looking statements reflect knowledge and information available at the date of preparation of this release and BAT 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.