GlobalData offers a comprehensive analysis of British American Tobacco, providing key insights into its Environmental, Social, and Governance(ESG) factors. By closely monitoring and aggregating mentions of climate change and associated ESG keywords, GlobalData delivers valuable information on British American Tobacco‘s ESG performance. GlobalData’s company profile on British American Tobacco offers a 360-degree view of the company, SWOT analysis, key financials, and business strategy including insights on ESG implementation among other information. Buy the report here.
British American Tobacco (BAT) has set net-zero by 2050 targets as part of its commitment to reducing greenhouse gas (GHG) emissions. BAT is actively working towards achieving its net-zero targets in 2022, there was a 22.3% reduction in Scope 1 & 2 CO2e emissions compared to the 2020 baseline. Scope 3 CO2e emissions experienced a 7% reduction in 2021 compared to the 2020 baseline. Additionally, there was a 33% utilization of renewable energy, surpassing the 30% target set for 2025 three years ahead of schedule.
The company has taken steps to reduce emissions and has made investments in emission reduction initiatives. BAT's efforts include strategies to manage environmental and social risks arising from contract growing and commodity sourcing, as well as the development of new tobacco seed varieties that offer greater yields and higher quality, along with disease resistance. By 2030, the company endeavors to attain a 50% reduction in emissions across Scope 1, 2, and 3, aiming to achieve Net Zero greenhouse gas (GHG) emissions throughout its value chain by 2050 at the latest. Additionally, the goal includes reaching a 50% utilization of renewable energy by 2030.
In terms of energy management, BAT reports its operational energy consumption, the percentage of grid electricity used, and the percentage of renewable energy used. The company is also focused on water management, reporting on total water withdrawn and consumed, as well as the percentage of water use in regions with high or extremely high baseline water stress. BAT discusses water management risks and strategies to mitigate those risks.
BAT's commitment to public health is reflected in its reporting of gross revenue and revenue net of excise taxes from non-tobacco nicotine products and heated tobacco products. The company also assesses risks and opportunities associated with "tobacco harm reduction" products.
Regarding marketing practices, BAT discloses the total amount of monetary losses resulting from legal proceedings associated with marketing, labeling, and advertising practices. The company also describes its marketing policy and relevant positions of the World Health Organization Framework Convention on Tobacco Control.
The company aims to achieve less than 1% waste to landfill by 2025. It is committed to preventing gross deforestation in primary native forests within its tobacco, paper, and pulp supply chains. Furthermore, the goal is to achieve Net Zero deforestation by 2025 in managed natural forests within these supply chains. The company targets a 35% reduction in water use by 2025 compared to the 2017 baseline and plans to have all operational sites certified by the Alliance for Water Stewardship by 2025. BAT's commitment to reducing GHG emissions and its efforts in various areas such as energy management, water management, and public health demonstrate its dedication to sustainability and responsible business practices.
In conclusion, BAT Plc has established net-zero targets to be achieved by 2050 and is actively working towards reducing its greenhouse gas (GHG) emissions. The company has taken steps to address environmental and social risks, invest in emission reduction initiatives, and develop new tobacco seed varieties. BAT's commitment to sustainability is evident in its efforts to manage energy and water resources, promote public health, and adhere to responsible marketing practices.