- BAT Group has released its fourth Combined Annual and Sustainability Report, highlighting global progress towards its sustainability goals.
- The report showcases programmes and initiatives in BAT’s Asia Pacific (APAC) markets which are tackling local challenges such as food insecurity, climate change, and income inequality.
JAKARTA, INDONESIA – Media OutReach Newswire – 3 June 2024 -The British American Tobacco (BAT) Group has released its 2023 Combined Annual and Sustainability Report detailing strong global performance against its Sustainability targets.
Global highlights from the report include:
- Reducing greenhouse gas emissions in line with climate science: 33.1% reduction in Scope 1 and 2 greenhouse gas emissions in 2023, and a 12.48% reduction in Scope 3 emissions in 2022 vs 2020 baseline.
- Promoting a circular economy: 28.2% reduction in operational waste generated (vs 2017 baseline), achieving BAT’s 25% reduction target early. 94% of materials used for packaging is made from reusable, recyclable or compostable material.
- Generating positive value in agriculture: 39.2% reduction in water withdrawn in BAT’s direct operations (vs 2017 baseline), achieving the 35% reduction target two years early. 93.3% of farmers in the Thrive Supply Chain are reported to be growing other crops for income diversification.
- Supporting biodiversity goals: On track to hit biodiversity targets including being 68.8% forest positive across BAT’s tobacco supply chain by 2025.
- Preventing underage access: Progressed the embedding of Underage Access Prevention and International Marketing Principles programmes into Group-wide Standards of Business Conduct.
- Globally recognised sustainability success: MSCI ESG rating was upgraded to a rating of A (scale of AAA to CCC) in 2023, from a BBB in 2022. (see MSCI ESG rating guidance here).
BAT has launched initiatives in each of its local APAC markets to address their unique sustainability challenges, as part of the company’s global purpose to create “A Better Tomorrow by Building a Smokeless World”.
Addressing ongoing regional environmental concerns:
- Tobacco Leaf Development Programme in Vietnam: Introducing technologies to help farmers reduce carbon emissions and prevent deforestation.
- Nature Conservation through partnership with GAIA: Partnering to combat climate change and protect biodiversity in Vietnam through afforestation projects in Ca Mau and Dong Nai covering 120 hectares of mudflats and 4 hectares of land.
- Water Conservation: In 2023, BAT Indonesia recycled and reused a total of 31% of its internal water usage at its Malang factory. BAT continues to enhance its AWS (Alliance for Water Stewardship) certification, which it has held since 2022. BAT Indonesia shared its work and lessons in the water conservation space at the 2024 World Water Forum in Bali, Indonesia.
- Waste management: BAT Indonesia has successfully achieved ‘zero waste to landfill’ since 2022 and 100% of its non-hazardous wastes have been recycled.
Emissions reduction and climate change prevention:
- The road to a carbon neutral future: To accelerate Malaysia’s journey towards carbon neutrality, BAT has established a clear ambition and absolute targets to reduce carbon emissions. It’s factory in Johor Bahru (JB) was certified PAS 2060 and BAT has successfully reduced its Scope 1 and 2 carbon emissions by 61% in 2023 compared to its baseline.
- Climate change prevention: In Indonesia, BAT has reduced its Scope 1 and 2 greenhouse gas emission by 83% in 2023 against its 2020 baseline. This has been achieved through initiatives such as the use of 100% renewable energy using its 2.5-megawatt solar panel (supported by the purchase of a Renewable Energy Certificate).
Developing a community-driven and inclusive future:
- Beyond Benih food security programme: BAT Malaysia launched its community garden programme, Beyond Benih, to ensure food security for low-income households and reduce the country’s dependence on imports.
- Agri Education and Assistance in Vietnam: Through programmes such as THRIVE, Ripe Top and crop diversification, BAT has helped increase the average farmer income by 11% and provided returns that are 30% higher than the investment norm.
- Women’s Empowerment Programme: Providing interest-free loans for women in My Quy Dong and My Thanh Tay, Long An Province in Vietnam to facilitate small businesses or animal husbandry.
- Digital Inclusion Movement: In 2023, BAT Indonesia continued its focus on empowering micro, small and medium enterprises (MSME) through various social initiatives and local economic development opportunities, including donating 200 laptops for digital acceleration and 100 units of food carts for MSME early starters across Indonesia.
Josh Fett, Head of Corporate & Regulatory Affairs – BAT South East Asia and Australasia, said:
“The Asia Pacific is a diverse and complex region where each of our local markets experience unique social and environmental challenges. Through a hyper-localised approach to our sustainability strategy, we’re driving programmes and initiatives which are seeing a tangible impact on local communities and lives. This supports our global objective to create A Better Tomorrow.”
“We are committed to growing our sustainability initiatives across APAC to create a more sustainable future through community led education, innovation and action.”
Click here to read BAT’s 2023 Combined Annual and Sustainability Report in more detail.
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The company continues 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. To help Build a Smokeless World, BAT encourages those who would otherwise continue to smoke to switch completely to scientifically substantiated alternatives.
BAT aims to have 50 million consumers of its non-combustible products by 2030 and to generate £5 billion of New Categories revenue by 2025. BAT has a range of Sustainability targets, including a 50% reduction in Scope 1 and 2 GHG emissions and a 50% reduction in Scope 3 GHG emissions by 2030 (vs 2020 baseline), and 100% of packaging to be reusable, recyclable or compostable by 2025.
BAT employs over 46,000 people and, in 2023, the BAT Group generated revenue of £27.28 billion, with an adjusted profit from operations of £12.46 billion.
The company’s Strategic Portfolio is made up of its global cigarette brands and a growing range of nicotine and smokeless tobacco products. These include our Vapour brand Vuse; our Heated Product brand glo; and Velo our Modern Oral (nicotine pouch) brand. These New Category products have delivered more than £3 billion in annual revenue since their introduction a decade ago.
We currently have 24 million consumers of non-combustible products, the revenue from which accounted for 16.5% of Group revenue in 2023.
* Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.
† Our vapour product Vuse (including Alto, Solo, Ciro and Vibe), and certain products, including Velo, Grizzly, Kodiak, and Camel Snus, which are sold in the U.S., are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.
Forward-looking statements
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 2023 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.bat.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.
