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BAT accelerates sustainability commitments in APAC

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  • 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 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  • Generating positive value in agriculture: 39.2% reduction in water withdrawn in BAT’s direct operations (vs 2017 baseline), achieving the 35% reduction target two years early. 93.3% of farmers in the Thrive Supply Chain are reported to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.”

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