British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
1
Welcome to your CDP Climate Change
Questionnaire 2023
C0. Introduction
C0.1
(C0.1) Give a general description and introduction to your organization.
BAT is a FTSE top-10, multi-category consumer goods business with more than 50,000
employees worldwide, sales across more than 170 markets and a large agricultural and non-
agricultural supply chain. Spread across six continents, our operating regions for the relevant
period are the United States of America; Americas and Sub-Saharan Africa; Europe; and Asia-
Pacific and Middle East. BAT Group generated revenue of £27.66 billion in 2022 and profit from
operations of £10.5 billion. BAT’s purpose is to build A Better Tomorrow™ by reducing the
health impact of its business through offering a greater choice of enjoyable and less risky
products*† for adult consumers.
The company’s Strategic Portfolio is made up of its global cigarette brands and a growing
range of reduced-risk*† New Category tobacco and nicotine products and traditional non-
combustible tobacco products. These include vapour, tobacco heating products, modern oral
products including tobacco-free nicotine pouches, as well as traditional oral products such as
snus and moist snuff. BAT has set stretching sustainability targets, including: making all
packaging reusable, recyclable or compostable by 2025; halving CO2e emissions across scope
1, 2 & 3 and achieving carbon neutral operations for scope 1 & 2 GHG emissions by 2030; and,
achieving net zero GHG emissions across its value chain (scope 1, 2 & 3) by 2050.
2022 marked BAT’s 21st consecutive year in the Dow Jones Sustainability Index (DJSI) World
Indices, representing the top 10% of ESG performers globally according to DJSI’s assessment
criteria. The Financial Times identified BAT as a Climate Leader for the third year running in
2023, placing it in the top 3% of companies in Europe for achieving reductions in scope 1 and 2
emissions intensity. * Based on the weight of evidence and assuming a complete switch from
cigarette smoking. These products are not risk free and are addictive. † Our products as sold in
the US, including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to Food & Drug
Administration (FDA) regulation and no reduced-risk claims will be made as to these products
without FDA clearance.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
2
C0.2
(C0.2) State the start and end date of the year for which you are reporting data and
indicate whether you will be providing emissions data for past reporting years.
Reporting year
Start date
December 1, 2021
End date
November 30, 2022
Indicate if you are providing emissions data for past reporting years
No
C0.3
(C0.3) Select the countries/areas in which you operate.
Algeria
Argentina
Australia
Bangladesh
Belarus
Bosnia & Herzegovina
Brazil
Canada
Chile
Colombia
Croatia
Czechia
Fiji
France
Germany
Honduras
Hungary
Indonesia
Italy
Japan
Jordan
Kazakhstan
Kenya
Malaysia
Mexico
Mozambique
Netherlands
Nigeria
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
3
Pakistan
Papua New Guinea
Paraguay
Poland
Republic of Korea
Romania
Russian Federation
Samoa
Saudi Arabia
Serbia
Singapore
South Africa
Spain
Sri Lanka
Sudan
Sweden
Switzerland
Trinidad and Tobago
Turkey
Ukraine
United Arab Emirates
United Kingdom of Great Britain and Northern Ireland
United States of America
Uzbekistan
Venezuela (Bolivarian Republic of)
Viet Nam
Zambia
Zimbabwe
C0.4
(C0.4) Select the currency used for all financial information disclosed throughout your
response.
GBP
C0.5
(C0.5) Select the option that describes the reporting boundary for which climate-
related impacts on your business are being reported. Note that this option should
align with your chosen approach for consolidating your GHG inventory.
Operational control
C-AC0.6/C-FB0.6/C-PF0.6
(C-AC0.6/C-FB0.6/C-PF0.6) Are emissions from agricultural/forestry,
processing/manufacturing, distribution activities or emissions from the consumption
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
4
of your products – whether in your direct operations or in other parts of your value
chain – relevant to your current CDP climate change disclosure?
Relevance
Agriculture/Forestry
Elsewhere in the value chain only
[Agriculture/Forestry/processing/manufacturing/Distribution only]
Processing/Manufacturing
Both direct operations and elsewhere in the value chain
[Processing/manufacturing/Distribution only]
Distribution
Both direct operations and elsewhere in the value chain
[Processing/manufacturing/Distribution only]
Consumption
Both direct operations and elsewhere in the value chain
[Processing/manufacturing/Distribution only]
C-AC0.6b/C-FB0.6b/C-PF0.6b
(C-AC0.6b/C-FB0.6b/C-PF0.6b) Why are emissions from agricultural/forestry activities
undertaken on your own land not relevant to your current CDP climate change
disclosure?
Row 1
Primary reason
Do not own/manage land
Please explain
BAT doesn't directly own any tobacco farms. We purchase tobacco from our contracted
farmers either on our own leaf operations or from third party suppliers. We do work with
farmers on our value chain, as well as with our suppliers, to promote sustainable
farming practices and best practices for environmental management via Sustainable
Tobacco Programme, which is an industry-wide programme and other initiatives. All
agricultural supply chain related emissions are captured as Scope 3.
C-AC0.7/C-FB0.7/C-PF0.7
(C-AC0.7/C-FB0.7/C-PF0.7) Which agricultural commodity(ies) that your organization
produces and/or sources are the most significant to your business by revenue?
Select up to five.
Agricultural commodity
Tobacco
% of revenue dependent on this agricultural commodity
More than 80%
Produced or sourced
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
5
Sourced
Please explain
As BAT does not own tobacco farms. We buy around 400,000 tons of tobacco leaf each
year, grown by 81,000 directly contracted farmers and an estimated 195,000 farmers
from strategic 3rd party suppliers in 29 countries. This volume of tobacco is used for our
combustible and tobacco heated products. Those two categories contributed to more
than 90% of our revenue in 2022 and hence that’s the portion dependent on tobacco as
an agricultural commodity.
C0.8
(C0.8) Does your organization have an ISIN code or another unique identifier (e.g.,
Ticker, CUSIP, etc.)?
Indicate whether you are able to provide a unique identifier
for your organization
Provide your unique identifier
Yes, an ISIN code
GB0002875804
Yes, a Ticker symbol
BATS / LEI -
213800FKA5MF17RJKT63
C1. Governance
C1.1
(C1.1) Is there board-level oversight of climate-related issues within your
organization?
Yes
C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the
board with responsibility for climate-related issues.
Position of
individual or
committee
Responsibilities for climate-related issues
Board-level
committee
Risk related climate change matters are under the governance remit of the Audit
Committee. The Audit Committee is responsible for reviewing the effectiveness of
the Group’s risk management and internal controls systems, including those
relating to climate change.
The Audit Committee reviews the Group risk register twice a year and regularly
reviews the Group’s progress against climate-related targets, for example our
emission reduction targets, (verified by SBTi), target for carbon neutral operations
across Scope 1 and 2 GHG emissions by 2030, and target for Net Zero GHG
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
6
emissions across our value chain by 2050. The Audit Committee also receives
reports from the Group’s Regional Audit and CSR committees and Corporate Audit
Committee, which monitor the effectiveness of business risk management and
internal controls across regions and global functions. The Chair of the Audit
Committee provides a full briefing to the Board following each Audit Committee
meeting, including decisions taken and key topics discussed by the Audit
Committee.
Example of climate-related oversight: In 2022, the Audit Committee oversaw the
evolution of our approach to reporting in alignment with the TCFD framework. The
Audit Committee also considered climate change risks and their impact on the
Group, to ensure robust processes are in place to manage both physical and
transitional climate change risks, and annual reporting on the identification,
assessment, and management of those risks, in alignment with the TCFD
framework.
C1.1b
(C1.1b) Provide further details on the board’s oversight of climate-related issues.
Frequency with
which climate-
related issues are
a scheduled
agenda item
Governance
mechanisms into
which climate-
related issues are
integrated
Please explain
Scheduled – some
meetings
Reviewing and
guiding annual
budgets
Overseeing major
capital expenditures
Overseeing
acquisitions,
mergers, and
divestitures
Overseeing and
guiding employee
incentives
Reviewing and
guiding strategy
Overseeing and
guiding the
development of a
transition plan
Our Board has oversight of our climate strategy and
climate-related risks and opportunities. Our Board has
strategic oversight of our sustainability agenda and
takes climate-related considerations into account where
applicable when making strategic decisions, including in
relation to budgeting, risk management and overseeing
capital expenditure. The Board endorses all Group
environmental targets and, in 2022, it approved our new
target to reach 50% renewable energy use by 2030. The
Board reviews climate-related action plans, and monitors
implementation and performance of climate-related
objectives and targets. For example, in 2022, the Board
was briefed by the Director, Operations on preparations
for the Group’s first Low Carbon Transition Plan,
detailing the Group’s roadmap to reach Net Zero
emissions by 2050. The Board receives an update twice
per year from the Director, Operations on our
environmental performance and progress against
glidepaths towards achieving the Group’s environmental
targets, including in relation to climate (targets aligned to
net zero emissions by 2050) and renewable energy. The
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
7
Overseeing the
setting of corporate
targets
Monitoring progress
towards corporate
targets
Reviewing and
guiding the risk
management
process
Board also reviews our approach to stakeholder
engagement and how the Group responds to
stakeholder considerations. In 2022, these
considerations included the Group’s progress in
reducing Scope 3 emissions, which represent around
90% of the Group’s total carbon footprint.
The Board reviews the Group risk register annually,
which incorporates climate-related risks. The Board
reviews the Group budget annually which takes into
account capital allocation to deliver the Group’s
sustainability agenda and associated targets. In 2022,
the Board approved a revised version of the Group’s
Environment Policy, which highlights our priorities for
climate change mitigation e.g., emission reduction and
increasing the use of renewable energy.
The Audit Committee is responsible for reviewing the
effectiveness of the Group’s risk management and
internal controls systems, including those relating to
climate change. The Audit Committee reviews the Group
risk register twice per year and regularly reviews the
Group’s progress against its ESG metrics, including
emission targets that address climate-related issues
(progress against 2030 Scopes 1 and 2 carbon neutral
operations and 2050 net zero value chain GHG
emissions).
The Remuneration Committee determines any annual
changes to the remuneration of Management Board
members. This may include salary adjustments, which
are determined considering performance against
individual objectives. For more information on these
please refer to C1.3a.
C1.1d
(C1.1d) Does your organization have at least one board member with competence on
climate-related issues?
Board member(s)
have competence
on climate-related
issues
Criteria used to assess competence of board member(s) on
climate-related issues
Row
1
Yes
The criteria used to assess board member(s) competence on climate
related issues, is if board members understand how climate-related
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
8
issues affect the BAT Group and climate-related risks and opportunities
in the BAT Group context. Board members have experience in guiding
management or oversight of operational companies within industries
impacted by climate-related issues, where judgements are required to
manage climate-related risks and opportunities. These industries (of
which one or more board members has experience) include fast
moving consumable goods, for example, tobacco and beverages,
where climate issues impact supply chains and present transitional
risks; infrastructure, for example, railway, where physical climate risk
needs to be mitigated and adapted to; and renewable energy
generation and distribution, where climate risks need to be mitigated
and adapted to, whilst also presenting transitional opportunities.
C1.2
(C1.2) Provide the highest management-level position(s) or committee(s) with
responsibility for climate-related issues.
Position or committee
Other C-Suite Officer, please specify
Director, Operations
Climate-related responsibilities of this position
Managing annual budgets for climate mitigation activities
Managing major capital and/or operational expenditures related to low-carbon products
or services (including R&D)
Providing climate-related employee incentives
Developing a climate transition plan
Implementing a climate transition plan
Integrating climate-related issues into the strategy
Conducting climate-related scenario analysis
Setting climate-related corporate targets
Monitoring progress against climate-related corporate targets
Managing value chain engagement on climate-related issues
Assessing climate-related risks and opportunities
Managing climate-related risks and opportunities
Coverage of responsibilities
Reporting line
CEO reporting line
Frequency of reporting to the board on climate-related issues via this
reporting line
Quarterly
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
9
Please explain
The Director, Operations, is a member of the Management Board reporting directly into
the CEO for the full year 2022 and has overall responsibility for delivery of the Group’s
climate strategy, mitigation activities and environmental targets, including climate-
related risks and opportunities and associated global budgets. The Board is updated on
climate-related matters. This includes an update twice per year from the Director,
Operations on progress on the Group’s sustainability agenda and performance against
environmental targets; an annual review of the risk register including climate-related
risks; review and approval of the Combined Annual and ESG Report and Form 20-F
which includes reporting on the Group’s climate-related performance for the year; and
additional focused updates as required. The Director, Operations is accountable for
overseeing delivery of climate related targets and led development of our Low Carbon
Transition Plan. The Director, Operations receives updates on progress on climate-
related strategy and targets through the Operations Sustainability Forum (OSF) that
meets up to 4 times a year and is supported by the Group Head of Operations
Development, Sustainability, and functional teams. In 2022, these updates included
progress against our climate change targets and improvement plans and digitisation of
our non-financial data, including emission and energy – which aims to automate our
reporting, including, increasing the speed of reporting and supporting ‘what-if’ scenario
planning. The Director, Operations also chairs the Environmental Sustainability
Committee, meeting around 6 times a year to review environmental roadmaps,
strategies, risk, and opportunities, with updates provided to Management Board level.
C1.3
(C1.3) Do you provide incentives for the management of climate-related issues,
including the attainment of targets?
Provide incentives
for the management
of climate-related
issues
Comment
Row
1
Yes
BAT uses different mechanisms to incentivise the management of
climate-related issues.
We incentivise some but not all of our employees by creating a
positive link between achieving environmental performance objectives
& eligibility for an annual bonus. Eligibility to receive an annual bonus
under the Group International Executive Incentive Scheme is
impacted by annual performance assessments, which considers in the
round progress against performance objectives, which may include
environmental metrics, non-environmental metrics and other factors.
The value of the bonus is tied to non-environmental metrics as set out
in the Remuneration Policy described on page 165 of the 2022
Combined Annual and ESG Report.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
10
We also use non-monetary incentives for example, through
recognition in our internal scheme ‘Celebrating our Success’ which
highlights best practice on operational initiatives including those linked
to the environment.
C1.3a
(C1.3a) Provide further details on the incentives provided for the management of
climate-related issues (do not include the names of individuals).
Entitled to incentive
Other C-Suite Officer
Type of incentive
Monetary reward
Incentive(s)
Bonus - % of salary
Performance indicator(s)
Achievement of climate transition plan KPI
Progress towards a climate-related target
Achievement of a climate-related target
Reduction in absolute emissions
Energy efficiency improvement
Increased share of renewable energy in total energy consumption
Reduction in total energy consumption
Company performance against a climate-related sustainability index (e.g., DJSI, CDP
Climate Change score etc.)
Incentive plan(s) this incentive is linked to
Not part of an existing incentive plan
Further details of incentive(s)
Our Director, Operations, a C-Suite Officer, is responsible for the delivery of our climate-
related targets as part of the overall sustainability agenda. The most important targets
are externally communicated and linked to evaluation of the Director’s performance and
remuneration.
The Director’s performance objectives contain environmental targets, which are directly
linked to his assessment of performance alongside other non-environmental
performance objectives. The Directors’ eligibility for an annual bonus under the Group’s
IEIS plan is based on his performance assessment, which considers performance
against environmental metrics, non-environmental metrics and other factors. The value
of the company bonus plan is tied to non-environmental metrics as set out in the
Remuneration Policy described on page 165 of the 2022 Combined Annual and ESG
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
11
Report.
The Group’s emission and energy reduction targets are examples of environmental
metrics contained within the Directors performance objectives. The threshold for
success is achieving or exceeding the targeted amount of emission/energy reduction for
the year, as described by target glidepaths. For example, by the end of 2022 a
reduction of 14% in BAT’s Scope 1 & 2 Emissions (vs. 2020 baseline) was required and
a reduction of 21% (vs. 2020 baseline) was achieved, exceeding the target threshold for
this year, meaning the Director met this performance objective which contributed to the
eligibility for an annual bonus payment.
Explain how this incentive contributes to the implementation of your
organization’s climate commitments and/or climate transition plan
BAT has aligned its business model to a world in which the rise in global average
temperature is no more than 1.5 ºC above pre-industrial levels. External targets have
been set for BAT’s Operations to reach carbon operations by 2030, and net zero across
our value chain by 2050 at the latest. BAT has glidepaths in place to track and monitor
progress towards this, with clear annual targets on the emissions reduction and energy
reduction / efficiency required to achieve our 2030 and 2050 goals.
Our Director, Operations is the most senior person accountable for BAT’s sustainability
agenda, including delivery our carbon neutrality and net zero targets. Achievement of
the annual milestones required to progress towards these targets form part of the
Director, Operations Performance Objectives. As the achievement of these annual
objectives is linked to the eligibility for a bonus payment (% of salary), a financial
incentive is provided by BAT, to the Director to deliver them.
C2. Risks and opportunities
C2.1
(C2.1) Does your organization have a process for identifying, assessing, and
responding to climate-related risks and opportunities?
Yes
C2.1a
(C2.1a) How does your organization define short-, medium- and long-term time
horizons?
From
(years)
To
(years)
Comment
Short-
term
0
2
The Group’s Risk Management Manual provides guidance of the
assignment of a “Risk Time Frame”. These are used to consider the
period over which the consequence of the risk, should it occur,
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
12
impacts the business. A short-term impact is defined as an 18 month
time frame for business risks.
Medium-
term
2
5
The Group’s Risk Management Manual provides guidance of the
assignment of a “Risk Time Frame”. These are used to consider the
period over which the consequence of the risk, should it occur,
impacts the business. A medium-term impact is defined between 18
months and 5 years for business risks.
Long-
term
5
10
The Group’s Risk Management Manual provides guidance of the
assignment of a “Risk Time Frame”. These are used to consider the
period over which the consequence of the risk, should it occur,
impacts the business. A long-term impact is defined as more than 5
years for business risks.
C2.1b
(C2.1b) How does your organization define substantive financial or strategic impact
on your business?
The BAT Group follows a standardised methodology for risk management across the BAT
Group, embedded at BAT Group, functional, direct-reporting business unit (DRBU) and
individual market levels to identify, assess and monitor financial and non-financial risks faced at
every level of the business. These risks encompass both direct operations and our
supply/value chain. Risks are assessed biannually and prioritised at three levels by reference to
their impact (high/medium/low) and likelihood (probable/possible/unlikely) as per our Group
Risk Management Manual.
Substantive financial or strategic impact refers to the significant and meaningful effect that risks
can have on the financial or strategic aspects of the business. Risks are assessed both
quantitively and qualitatively using a Risk Impact Matrix set out in the Group Risk Management
Manual. In financial (quantitative) terms, substantive financial or strategic impact is defined as
an impact between £60mn and £120mn (low), between £120mn and £250mn (medium) and in
excess of £250mn (high) on Operating Profit, Net Finance Cost or Operating Cash Flow
(representing the impact in any single year). Strategic impact refers to such factors as
reputational, safety, legal and environmental impacts which are also included within the Risk
Impact Matrix and are considered within each risk assessment. These metrics apply to Group
risks, with reducing thresholds set at functional and DRBU levels.
The time frame is used to consider the period over which the consequence of the risk, should it
occur, impacts the business. Frequency of impact is considered through the assessment of the
timeframe of each risk and reported in accordance with our Risk Management Manual. This is
used to consider the period over which the consequences of the risk, should it occur, impacts
the business. Time frames are defined within question C2.1a.
Long-term risks could develop over several years after the initial event occurs, and therefore
generally relate to strategic decisions. Short-term risks have their impact immediately after the
event occurs and tend to cause disruption to normal operations. For example, the growth of
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
13
illicit trade could be a long-term risk; the failure to achieve an expected price increase could be
a short-term risk. Where a risk has a mixture of time frame the default definition should be the
longest-term.
The Group maintains a climate change risk on the Group risk register. The risk sets out the
impact on the Group to ensure robust processes are in place to manage transitional climate
change risks (in compliance with the Green Finance Strategy published by the UK Government
in July 2019 setting out disclosure expectations for listed companies in accordance with the
TCFD recommendations). The Climate Change risk template (which is used during the risk
assessment process to capture risk information, analysis, and record mitigation activities)
specifically calls out transitional climate related risk factors, such as ESG matters influencing
investor decisions, evolving climate change legislation and changes in Consumer behaviours &
expectations related to environmental issues. These “Drivers” of the risk are factored into the
Financial Impact Value, Likelihood (Probability) rating and ultimate Risk Score. Assigned
mitigation activities are also logged against the risk & are tracked/monitored.
In addition to the above, the Group has embedded physical climate related risk factors into its
business risk register (both at functional & at Group level) and its associated risk templates.
Work commenced H2 2022 to develop and establish a stand-alone ESG risk register, in
addition to the existing business risk register. This will enable greater visibility of each ESG risk
and associated risk mitigation activities. The ESG risk register will be finalised H1 2023 & the
ESG risks will be reviewed bi-annually, in line with the Group’s ERM methodology & enhanced
GRMM. Moreover, each ESG risk will be linked to risks on the Group business risk register to
ensure completeness & consistency throughout the assessment and reporting process. The
risks identified in both the ESG and business risk registers will inform the Group’s TCFD risk
disclosures.
C2.2
(C2.2) Describe your process(es) for identifying, assessing and responding to climate-
related risks and opportunities.
Value chain stage(s) covered
Direct operations
Upstream
Downstream
Risk management process
Integrated into multi-disciplinary company-wide risk management process
Frequency of assessment
More than once a year
Time horizon(s) covered
Short-term
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
14
Medium-term
Long-term
Description of process
The central Enterprise Risk Management (ERM) team oversees the Group’s bi-annual
risk review and reporting exercise and applies a standardised methodology (outlined in
the Group’s Risk Management Manual) for risk assessment across the Group,
embedded at Group, functional, direct-reporting business unit (DRBU) and individual
market levels. Risk data (from each business level) is collected and recorded within the
Group’s Risk Management System (SAP GRC RM) which applies intelligent aggregation
of risk impact scores. DRBU risk scores aggregate up to produce a Regional risk score
for each individual risk. The system also provides standardised risk management output
documents which support the bi-annual risk assessment process and are used, in part,
to drive the risk debates at various Risk Committee meetings. Risk review processes
are completed by multidisciplinary teams (e.g. Manufacturing, Leaf, Supply Chain,
Procurement, Commercial). In addition, external assessments take place as required
and may focus on specific areas (e.g. leaf growing, strategic factories) or end markets
depending on risk mapping indications.
Climate Change Risk and Impacts are identified as a result of both internal and external
risk assessments considering short, medium, and long term (as completed in TCFD
scenario analysis and materiality risk mapping). Local risk assessments are carried out
in all BAT sites as part of Risk Prevention and Mitigation practices at least twice a year
and are linked with business continuity plans focusing on, but not restricted to, short-
and medium-term risks (it varies in line with risk type and nature).
The Group risk management process has four stages, Identify, Assess & Evaluate,
Manage and Monitor.
The first stage identifies the potential events that could adversely impact achievement of
business objectives, including the failure to capitalise on opportunities. This involves
identifying the relevant strategy and objectives; understanding who the stakeholders are
and what their objectives are; and analysing the overall environment. Risk can be
identified by the relevant Leadership Team, Risk Management Committee or any senior
manager involved in managing risks.
The second stage of the Group risk management process is to assess and evaluate the
risk/opportunity to determine its impact on the relevant business strategy/objective and
whether the risk/opportunity is likely to occur. This allows risks/opportunities to be
prioritised. The assessment is done using two scales, both from 1 to 3, the combination
of which provides a total risk rating, from 1 to 9. This step helps us to understand the
risk exposure faced by the Company. To do this, details are provided on impact,
likelihood and total risk rating. The potential impact of a risk/opportunity is evaluated
through the Group’s Risk Impact Matrices. These are used to measure the potential
impact of a risk on a Group, functional, direct-reporting business unit (DRBU) and
individual market level relative to 5 Impact Categories covering financial, reputational,
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
15
safety, legal and environmental impact metrics. This evaluation is converted into a
number from 1 to 3 (from low to high) based on the relevant Risk Impact Matrix. The
risk/ opportunity is then evaluated based on the current net impact. This evaluation is
arrived at by considering the reasonably foreseeable gross impact and the expected
impact of current mitigation activities in place to manage the risk. The likelihood of the
risk having the evaluated impact is rated from 1 to 3 (low to high) based on the
assessment by the Risk Manager and Risk Owner.
Examples of identification of risks and opportunities at the facility level would be working
with our factories in making them more resilient to climate change impacts through
investment in building fabric and energy systems, reducing energy consumption and
potential exposures to climate change regulation. The risks and opportunities assessed
cover both physical risks and opportunities and transitional ones.
The third stage of the Group risk management process is to manage and assess the
current activities in place to manage identified risks and can lead to an agreed list of
additional activities required to further manage the risk, where the risk appetite is to
remove or reduce downside risks and to maximise upside risks. The list of further
activities are agreed by the relevant Leadership Teams to ensure that all key risks have
an effective risk response.
The fourth and final stage of the Group risk management process is the on-going
monitoring of the risk, including the assurance that current activities to manage risks
remains effective, as well as a review of whether the additional activities identified as
required are being delivered in accordance with the agreed timelines.
Risk mitigation activities are reported on and reviewed by each Regional Risk
Committee and the Group Risk Management Committee (GRMC) twice a year and the
Group’s Audit Committee six times a year.
In order to prepare TCFD scenarios, BAT has embedded both ESG and climate-related
risk factors into its business risk register (both at functional and at Group level) and
these are called out and assessed within associated risk templates to better quantify
financial impacts and mitigations costs and ensure robust processes are in place to
manage transitional climate change risks (in compliance with the Green Finance
Strategy published by the UK Government in July 2019).
Work commenced H2 2022 to develop and establish a stand-alone ESG risk register, in
addition to the existing business risk register This will enable greater visibility of each
ESG risk and associated risk mitigation activities. The ESG risk register will be finalised
H1 2023 and the ESG risks will be reviewed bi-annually, in line with the Group’s ERM
methodology and enhanced Group Risk Management Manual. Moreover, each ESG risk
will be linked to risks on the Group business risk register to ensure completeness and
consistency throughout the assessment and reporting process. The risks identified in
the business risk registers will inform the Group’s TCFD risk disclosures.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
16
C2.2a
(C2.2a) Which risk types are considered in your organization's climate-related risk
assessments?
Relevance &
inclusion
Please explain
Current
regulation
Relevant,
always
included
This risk is particularly relevant to BAT because it directly affects our
license to operate. The existence of robust climate change regulations,
appropriate enforcement actions and meaningful sanctions against
non-compliances are critical for assessing the climate change risk we
face as a business. Sites are required to comply with applicable
regulations related to their environmental impact in terms of climate
change, as well as compliance with BAT’s internal EH&S requirements
(e.g. emissions from operations are reported and actions aiming at their
reduction must be documented, evidence of phase out of certain
substances over time must be kept, etc.) as a minimum, to
demonstrate compliance and ensure license to operate.
We monitor existing regulations and signal potential changes and
consider these in the future deployment of our manufacturing and
supply chain networks – for example where investments should be
targeted considering carbon taxes affecting the cost of doing business
in some markets.
In some local markets there can be a lack of regulatory frameworks
governing climate-change issues - in the absence of such frameworks,
a minimum standard of performance is established in our Environment
Policy Statement, part of Group EHS Policy Manual and supporting
Policy guidelines or, the more stringent requirement between BAT EHS
Policy or local legislation will prevail. Independent regulatory audits are
carried out in a number of markets every year and in most of the
markets where we operate, BAT is also subject to inspections by
regulatory agencies (e.g. EPA in the US, local EU Environmental
Agencies, Environmental Agencies at Province and Federal levels in
Brazil, etc).
Emerging
regulation
Relevant,
always
included
This risk is particularly important to BAT because, in addition to the
emergence of robust climate change regulations and their appropriate
enforcement being critical for assessing climate change risks in
countries where we operate, our compliance with such regulation is
critical for maintaining our licenses to operate. Therefore, local entities
are required to monitor emerging regulations in various ways, including
through involvement in climate-change regulations forums and
business bodies. Our local entities subscribe to regulatory monitoring
services that provide regulatory insights, including legislative
developments. We also have an equivalent process at the Group level
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
17
for global regulatory monitoring on climate-related legislative
developments. Our monitoring helps us keep abreast of emerging
regulations, which help us assess and recalibrate our strategic
priorities.
In this category, the main risks facing BAT are an increase in carbon
pricing including the expansion of the EU ETS impacting our supply
chain and product related taxes such as Extended Producer
Responsibility or Plastic Taxes (e.g. those recently implemented in the
UK and Spain, although financial implications to date are not material
to the business). These risks will increase our cost to operate,
prompting us to invest in assets that could help mitigate some of the
additional costs. In addition, some of these taxes would impact our
suppliers thereby increasing purchase costs.
Technology
Relevant,
always
included
BAT is committed to reducing the impact of our operations on the
environment and has set several challenging targets to reduce the
emissions generated by our supply chain and wider value chain,
reduce waste and water consumption, and increase our use of
renewable energy (in turn reducing our reliance on fossil fuel energy
sources). These commitments and science-based targets are aligned
to the 1.5C scenario. To deliver these commitments and internally plan
for financial and operational requirements, we have established
glidepaths at factory, regional, and global level with the deployment of
new technology being a key enabler to the delivery of our goals and
targets. BAT aims to reduce its CO2e emissions by, amongst other
things, increasing its energy efficiency (consumption of energy per unit
of production) and/or by replacing current energy/fuel sources for
cleaner ones.
In the context of leaf deployment, as disclosed in 2.3 risk 001, and 2.4
opportunity 002 and 003, technology plays a crucial role in improving
farmer resilience, increasing their financial returns, and reducing
emissions generated through farming (and particularly curing
processes). Our Global Leaf Agronomy Development Centre is based
in Brazil and is responsible for developing and deploying new cutting-
edge technologies to our Leaf Operations.
BAT's risks relate to failure to invest in new technology (e.g. higher
efficiency machines) and current assets becoming non-compliant and
the associated cost of write-downs. In addition, changes in the portfolio
product mix may require higher than anticipated levels of investment to
meet the stated ESG targets.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
18
Legal
Relevant,
always
included
It is expected, following COP26, that the level of environmental policies
and legal requirements will increase over the medium term. We have
Legal teams at a local, regional, and global level and they are
responsible for ensuring compliance with applicable legal requirements
and keeping abreast of emerging regulatory developments. In the
event emerging regulations are considered to have a relevant
operational or financial impact on our business, these are captured
within risk registers and monitored via our risk processes to ensure
they are implemented effectively.
Legal compliance is a “must meet” condition to operate at BAT sites.
Therefore, the risk of non-compliance of applicable legal requirements
is always part of the risk mapping and sites’ actions / contingency
plans.
An example of this risk is the national EPR schemes that EU Member
States were required to have in place by 5 January 2023 as set out in
the EU Single Use Plastics Directive and forms part of the response to
our disclosure in section 2.3 risk 002.
Market
Relevant,
always
included
We continue to assess the impact of climate change on market risks
and believe these present transition risks to our business.
Specifically, we anticipate potential shifts in demand and supply for
energy, commodities, cost of capital, and insurance products.
Examples of potential risk/ impact on our business include:
• The cost of energy on our direct operations could be impacted as
demand increases for renewable energy forms and energy providers
are required to build infrastructure to uplift supply to meet demand. We
have considered this risk further within section 2.3 risk 003 and 2.4
opportunity 001.
• Potential supply issues affecting our access to tobacco to meet our
requirements and the potential impact on tobacco prices because of
chronic climate change factors impacting weather conditions and
growing productivity levels. We have considered this risk further within
section 2.3 risk 001.
• The potential impact on our cost of capital in the event of either
reduced profitability (due to incremental operating costs due to climate
change) or our ESG performance not meeting the expectations of our
stakeholders. We have considered this risk further within section 2.3
risk 004.
• As part of our TCFD reporting within our annual report, we also
considered other potential manifestations of this risk, including access
to insurance markets (to mitigate the risk of acute climate change) as
well as the impact of energy costs across our wider value chain
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
19
(indirect energy costs embedded within the costs of our materials/
finished goods purchases).
We have established challenging targets and external commitments
with an ambition of being industry leader in reducing our impact on the
environment in which we operate. These commitments are aligned to
the 1.5C scenario and span across emissions, water, and waste.
Whilst market forces are not fully controllable, by reducing energy
requirements, driving the use of renewable energy, driving the rollout of
technological advances to improve our production efficiencies (both
manufacturing and agriculturally in the field), and the use of hedging
contracts to mitigate short term energy price volatility, we aim to
mitigate these market risks as far as possible.
Reputation
Relevant,
always
included
Maintaining our reputation as a responsible company has always been
of crucial importance to BAT, ensuring we meet and exceed the
expectations of our stakeholders.
As the impact of climate change are becoming more apparent, and
policy setters implement policies to slow the pace of climate change,
expectations on BAT as a global FMCG from market participants and
wider society are increasing, and our ambition is to exceed these
expectations through industry leadership by placing ESG at the core of
our strategy.
Reputational risk could impact our business in several ways, with
material potential impacts identified as part of our work in preparation
for TCFD reporting in FY22, including:
• Consumer expectation and how this may impact purchasing
decisions, requiring us to continue to meet the emerging needs of our
consumers and wider stakeholders and communicate our
environmental performance effectively with our consumers.
• Potential risk regarding effective access to capital and cost of debt in
the event BAT falls short of meeting the expectations of financial
stakeholders, which could potentially impact our ability to issue bonds
or borrow money (due to increase in interest rates). This risk has been
further disclosed within 2.3 risk 004.
For example, there is a global focus around all matters related to
plastic. We are researching and trying to find alternatives to cellulose
acetate for conventional cigarettes filters.
We have already aligned our pledges to the UK Plastics Pact and
committed to, by 2025:
- Have 30% average recycled content across all plastic packaging;
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
20
- 100% of our packaging (including plastic) will be reusable, recyclable
or compostable; and
- Have takeback schemes in all markets where we sell our new
category devices.
We have externally communicated a series of challenging
commitments to reduce the impact of our business on the environment
(spanning across emissions, waste, and water), and are actively
increasing our disclosure to improve awareness of our ESG
performance (both in our formal reporting - for example, in Combined
ESG and Annual report, TCFD reporting and via our corporate and
brand websites).
Acute
physical
Relevant,
always
included
Acute physical risks were identified during TCFD scenario mapping and
risk analysis. Extreme weather events are expected to increase in
frequency and severity due to climate change and can impact our
operations, infrastructure, and suppliers, and impact the overall
effectiveness of our supply chain.
In particular, this risk has the ability to impact our access to tobacco, a
critical component of our products, through increased prevalence of
flooding and extreme weather (including hail, hurricanes, El Niño and
other weather events which impact the areas where we grow and
purchase tobacco) which may impact supply/ production of tobacco in
any particular growing season and compromise our ability to source
sufficient tobacco to meet our demand.
This risk is mitigated through our sourcing strategy (i.e. sourcing each
of the key tobacco types from several locations to mitigate the potential
impact that could arise from acute weather events) and through our
duration policies which stipulate minimum safety stock levels (typically
between 9 -12 months - depending on the quality of tobacco, its role in
our products, and our ability to substitute that tobacco type) to ensure
we are able to mitigate the impact of crop failures in any given year.
Duration policies for finished goods (i.e. combustibles and new
category products), semi-finished materials, and other critical inputs
(e.g. paper, filter tow, etc), as well as multi supplier sourcing strategies
similarly mitigate the potential impact in our broader supply chain.
Business continuity plans are in place and reviewed annually. They are
designed to enable us to alter factory production plans/ sourcing to
mitigate supply chain disruption that may extend beyond the period
protected through inventory durations.
Wherever possible, insurance policies are put in place through our
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
21
Global Treasury and Risk function to mitigate potential financial losses
that could arise through acute risks.
Chronic
physical
Relevant,
always
included
Longer term changes in weather patterns due to climate change could
potentially significantly impact our operations, particularly our access to
leaf tobacco (grown through our own operations or purchased from 3rd
parties). These changes could impact temperatures, level of rainfall,
soil water stress, and the overall viability of tobacco growing in those
Regions, either due to the climate no longer being suitable for tobacco
growing or the land being repurposed by government intervention to
prioritise the growing of food crops.
We monitor this type of risk through data collected through our network
of field technicians as part of annual crop monitoring process and use
this data to understand trends and shape longer term crop planning.
We also commissioned an independent study that was completed in
2020, analysing predicted weather changes across our top 10 growing
locations, with soil stress indicators used to estimate impact on yield,
production volumes, and overall cost of tobacco. This analysis is
disclosed within 2.3 Risk 001 – whilst the impact varied across regions
with increases and decreases in yield forecast, the overall impact on
the cost of tobacco was estimated to be less than 5% of our total cost
of tobacco at Group level. We will reperform this analysis overtime to
ensure we have the information needed to mitigate the impact of this
risk on our business.
At present we believe our Global Agronomy Development activities,
with specific focus on water efficiency and roll out of agriculture best
practices, are sufficient to mitigate the chronic risk climate change
poses to our tobacco supply chain.
C2.3
(C2.3) Have you identified any inherent climate-related risks with the potential to have
a substantive financial or strategic impact on your business?
Yes
C2.3a
(C2.3a) Provide details of risks identified with the potential to have a substantive
financial or strategic impact on your business.
Identifier
Risk 1
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
22
Where in the value chain does the risk driver occur?
Upstream
Risk type & Primary climate-related risk driver
Chronic physical
Other, please specify
Potential increased operating costs due to changes in precipitation patterns and
extreme variability in weather patterns leading to agricultural supply chain disruption
and reduced production capacity
Primary potential financial impact
Increased direct costs
Company-specific description
Access to tobacco is of pivotal importance to the Group as it is a key component to our
combustibles and new categories businesses (tobacco heated products "THP", as well
as our Vapour and Modern oral categories). The Group sourced around 400m kgs of
tobacco in 2022 from 29 different countries (including 14 vertically integrated leaf
operations).
Climate change poses a risk to agriculture production because of changes to
precipitation and temperature and the resulting impact on the effectiveness of tobacco
production and the Group's ability to procure sufficient tobacco leaf to meet our demand.
Specifically risks include:
• Acute physical risks (including increased prevalence of flooding and extreme weather,
such as hail, hurricanes, El Niño and other weather events, which impact the areas in
which we grow and purchase tobacco) which may impact production of tobacco in any
particular growing season and compromise our ability to source sufficient tobacco to
meet our demand. This risk is mitigated through our sourcing strategy (sourcing each of
the key tobacco types from several locations to mitigate the potential impact that could
arise from acute weather events) and through our duration policies which stipulate
minimum stock levels (typically between 9 -12 months - depending on the quality of
tobacco, its role in our products, and our ability to substitute that tobacco type) to ensure
we are able to mitigate the impact of crop failures in any given year.
• Chronic physical risks arising from ongoing changes to weather patterns impacting
temperatures, level of rainfall, soil, water stress, and the overall viability of tobacco
growing in those Regions, either due to the climate no longer being suitable for tobacco
growing or the land being repurposed by government intervention to prioritise the
growing of food crops.
To assess chronic physical risk, an independent study was undertaken to understand
the potential impacts of climate change across our largest 10 tobacco source countries
(Brazil, US, Zimbabwe, Bangladesh, Pakistan, India, Mozambique, Turkey, Mexico, and
Indonesia) which accounted for 84% of the total Group tobacco purchase volume in
2022.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
23
Time horizon
Long-term
Likelihood
More likely than not
Magnitude of impact
Low
Are you able to provide a potential financial impact figure?
Yes, an estimated range
Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
10,000,000
Potential financial impact figure – maximum (currency)
47,000,000
Explanation of financial impact figure
The Hadgen2-ES model (Developed by the Hadley Centre of the Meteorological Office,
UK) was used to forecast the weather pattern for the period 2021- 2050 for the growing
regions in scope.
In total we assessed 88 sub-national jurisdictions, accessing historical weather data of >
3,100 weather stations and generating > 5,400 weather forecast maps.
Climate-related risks to tobacco-growing conditions were assessed by examining the
impact of possible changes in temperature, rain, and water balance in the soil. The
analysis was done at regional level, covering all growing Regions where we source
tobacco, with anticipated growing conditions forecast for each decade from 2020 to
2050.
Having forecast soil stress levels anticipated, projections of growing yield were made
and compared to growing yield projections (farmers productivity - kg/ha) which enabled
us to compute the estimated impact on production cost and tobacco prices in the future
with the annual impact versus 2020 tobacco costs used to estimate the risk.
By way of example, farmer yield in the Karnataka Province growing region of India was
approximately 1,548 kg/ ha in 2020 and has been estimated to decrease to 1,457 by
2030 and 1,526 by 2040 resulting in a decrease in yield of between 5.9% (by 2030) and
1.4% (by 2040) and a corresponding increase in tobacco cost.
Based on the Regions where we grow tobacco and the estimated Group demand for
tobacco in the future (with assumptions for demand reduction applied of between 1 –
2% per annum depending on location) with favourable and unfavourable impacts on
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
24
yield, the potential financial impact on annual cost of tobacco of between £10m and
£47m (less than 5% of overall Group tobacco purchases).
Financial estimates were also generated up until 2050, using the same modelling
approach, with the results used for the purposes of the Group's 2022 TCFD reporting.
Cost of response to risk
7,200,000
Description of response and explanation of cost calculation
Global leaf research & agronomy deployment is a key aspect of our strategy for driving
our environmental & social goals across the leaf operations where we grow tobacco,
ensuring the application of best practice and long-term sustainability of the communities
working with or supported by tobacco production.
The Global Leaf Agronomy Development (GLAD) Centre conducts world-class research,
from development & testing in the lab to real-world field trials with farmers, often in
partnership with academic & research institutions. Our activities are split into 4 strategic
pillars; farmer profitability, carbon management, biodiversity and water & climate
change,
Situated in Brazil, and leveraging decades of experience in tobacco growing, our GLAD
Centre identifies tailored solutions for application and deployment across both our leaf
operations and strategic 3rd party suppliers, with the following focus areas:
- Soil Science & Plant Nutrition, Water and Emissions
- Leaf Breeding, Seed Technology, Seed Production & Industrialisation,
- Mechanisation & Curing
- Crop Protection, Agriculture best practice
- Substrates, Botanicals, Bioprocess, Leaf Chemistry
Mitigation plans for each country have been established, with specific best practice
workstreams initiated to include solar powered technology to lower the cost of drip
irrigation, drought tolerance mapping, seed development & precision irrigation pilots. For
example, in 2022, drip irrigation was expanded in our Operations in Chile and Vietnam.
Reduction of water consumption, higher efficiency of fertilizer (Lower CO2 emissions
due Nitrogen fertilizer) and labour reduction, are the key benefits of this system.
An example of tailored innovation targeted at mitigating water risk can be found in
Bangladesh and Pakistan. An Alternative Furrow Irrigation was already deployed in
14,962 ha. The results from trials and commercial scale, showed water usage reduction
up to 8%-10% compared to traditional furrow irrigation. We plan to increase the adoption
of this technique to reach 85% of our Bangladesh farmer base by 2025 & 100% by
2030, as well as looking at affordable alternative solutions incl. drip irrigation technology.
The cost of response is based on the amount we invest annually in Global Leaf
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
25
Agronomy Development activities, all aimed to improve farmer resilience & the
sustainability of their farms.
Comment
Identifier
Risk 2
Where in the value chain does the risk driver occur?
Downstream
Risk type & Primary climate-related risk driver
Emerging regulation
Carbon pricing mechanisms
Primary potential financial impact
Increased indirect (operating) costs
Company-specific description
Under a sustainable transition it is likely there will be increased regulation on our
products as regulators and policy makers seek to slow the pace of climate change, with
one of the more acute examples being carbon pricing to incentivise the reduction in
emissions.
As of 1 August 2022, there were 68 explicit carbon pricing mechanisms (taxes or
tradable allowances – Emissions Trading Schemes (ETS)) around the world. The
jurisdictions (countries/ groups of countries/of provinces) covered by these mechanisms
represent more than 70% of global GDP. Further policies are likely to emerge globally
over the course of the next 15 to 20 years. By end of 2022, 2 of our factories were
covered by ETS whilst 10 operations were subject to carbon taxes.
Furthermore, there is a risk that carbon pricing is applied to all Scope 3 emissions,
which suppliers will pass on to BAT.
Time horizon
Long-term
Likelihood
Likely
Magnitude of impact
Medium
Are you able to provide a potential financial impact figure?
Yes, an estimated range
Potential financial impact figure (currency)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
26
Potential financial impact figure – minimum (currency)
125,000,000
Potential financial impact figure – maximum (currency)
240,000,000
Explanation of financial impact figure
Detailed modelling was performed by an external consultant based on (i) All emissions
priced at location of consumption (i.e. mapped to sales projections) to reflect move to
point of consumption-based mechanisms like EU Carbon Border Tax Adjustment (ii) All
Scope 3 emissions included on the basis that all value chain emissions will need to be
covered within the economy to reach net zero (however, biogenic categories have
included but not priced into the model) (iii) Model used glidepath for BAT Low Carbon
Transition Plan reflecting BAT's latest 1.5°C-aligned, absolute reduction targets that
accommodate net zero criteria and definitions (approved by the SBTi in July 2022).
The REMIND-MAgPIE 3.0-4.4 carbon tax projections at a country level were used to
estimate the potential future tax charges.
The financial numbers reflect two scenarios – Net Zero 2050 (maximum impact) and
Delayed Transition (minimum impact) and represent the maximum cost after which the
reduction in emissions more than offset the absolute increase in unit carbon taxes.
Cost of response to risk
27,000,000
Description of response and explanation of cost calculation
The costs to respond to the risk has been based on the total investment cost in 2022
(£27m) of ESG initiatives including product related initiatives which positively impacted
CO2 emissions and it is envisaged that a similar level of investment would be required
throughout the coming years as part of the Low Carbon Transition Plan. This planned
reduction in emissions in our total supply chain relies upon aggressive scope 3
reduction initiatives, both internal (e.g. as technology to drive lower consumer and end
of product life emissions) and external (e.g. suppliers reducing their own emissions), the
exact nature of which has not been quantified.
Comment
Identifier
Risk 3
Where in the value chain does the risk driver occur?
Direct operations
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
27
Risk type & Primary climate-related risk driver
Market
Other, please specify
Increased costs due to increased energy costs impacting direct operating costs
Primary potential financial impact
Increased direct costs
Company-specific description
We have set a series of challenging targets under our Low Carbon Transition Plan to
reduce our energy usage and emission, and shield us, as far as possible, from energy
cost inflationary pressures. Our goals of emission reduction and reduced dependency
on fossil fuel forms of energy complement each other, given almost 80% of the Group
Scope 1 and 2 emissions are being generated by our Operating facilities.
Under a sustainable transition (Network for Greening the Financial System (NFGS)
divergent net zero scenario) there may be a significant increase in demand for green
energy as companies seek to meet their public commitments to reduce scope 1, 2 & 3
emissions to make progress towards their goal of achieving carbon neutrality. As the
energy sector seeks to expand supply of greener energy forms, there is a risk that the
costs of electricity and natural gas will increase (as surcharges are placed on fossil fuels
to drive the decarbonisation policy agenda), impacting the cost of energy used in our
sites. The cost of energy around the Group is circa £100m with purchased electricity
and natural gas accounting for 89% of the energy incurred.
In light of the impact of geo political events over the last two years on the supply of
energy and costs incurred, the development and installation of more efficient machinery
and the leveraging of greener, renewable energy sources, will not only support the
Group’s delivery of its ESG targets but will also generate opportunities to reduce the
impact of carbon taxes and insulate the Group from future energy cost inflation (both
fossil fuel derived energy forms as a consequence of geo-political restrictions on supply,
as well as globally companies increasing their demands in greener energy in pursuit of
their own ESG commitments).
The external events in 2022, which were out of our control, continue to impact the
supply and price of energy and have impacted the likelihood of this risk materialising.
This will continue to be reassessed as part of our group risk process.
Time horizon
Medium-term
Likelihood
Likely
Magnitude of impact
Low
Are you able to provide a potential financial impact figure?
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
28
Yes, an estimated range
Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
63,000,000
Potential financial impact figure – maximum (currency)
93,000,000
Explanation of financial impact figure
The financial estimates were based on the Group’s 4 largest energy types (natural gas,
standard electricity, renewable electricity and diesel) which accounted for 89% of our
total energy consumption (and 94% of energy costs) in 2022.
Our future factory demand was estimated based on Group volume growth rates
assumptions, with our combustibles volume assumed to continue to reduce at a rate
marginally better than industry norms. New Category growth rates were set in
accordance with our Group’s plans to deliver £5bn in New Category revenue by 2025,
with projected energy consumption requirements based on these assumed volume
movements, with assumptions overlaid to consider the continued favourable impact of
energy efficiency improvements through Integrated Work System activities, as well as
considerations of automation related improvements for New Category production
(estimates based on recent performance trends).
Using detailed energy cost information from 2022, unit energy costs were computed for
each manufacturing site. Based on future energy requirement, the 12 Regional price
indexes from the REMIND-MAgPIE model were used to project potential future energy
unit costs at each of our factories.
A further overlay in the analysis was performed to reflect the transition towards 100%
electricity sourced in operations sites to be renewable by 2030, with an assumed
premium of ~2.3% vrs standard electricity grid tariffs as demand increases for
renewable energy forms.
Two Network for Greening the Financial System (NFGS) scenarios were used in the
analysis performed; the first represented the divergent net zero scenario which sought
to limit global warming to 1.5 degrees, which saw a projected energy cost increase of
£93m in 2030 compared to baseline as demand for electricity rises as the world seeks to
decarbonise rapidly and policy setters apply climate related targets across all sectors.
The second scenario assumed current policies continued to be applied (climate inaction
scenario), which saw a projected energy cost increase of £63m in 2030 compared to
baseline.
We anticipate the impact over the short to medium term being closer to the lower range
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
29
estimate but may move towards the upper range over the longer term as post COP26
policies are implemented.
Cost of response to risk
20,000,000
Description of response and explanation of cost calculation
To ensure the delivery of external commitments (see “Company specific description”
above) made in relation to emission reduction and carbon neutrality ambitions,
glidepaths have been developed for our factories with plans designed to reduce
emissions, drive energy efficiency, and move Group energy requirements towards
renewable energy sources.
The Group's use of renewable energy has increased from 11% in 2019 to 32% in 2022
demonstrating the extensive effort underway to reduce our dependency on fossil fuels
and mitigate potential future energy price rises.
In 2022, just under £20m was invested in energy efficiency / sourcing related capital
projects across the group. Projects delivered included:
- Solar heating, cooling, and PV equipment (e.g. Turkey, Pakistan, Bangladesh)
- Boiler replacement (biomass, heat pumps and others) (e.g. Croatia, Germany)
- Efficient building energy management system (e.g. Nigeria, Trinidad)
- LED / Automated Lighting (e.g. Hungary, Indonesia)
- Efficient HVAC automation systems (e.g. Pakistan)
The costs to respond to the risk has been based on the average investment cost in
energy efficiency / sourcing projects of ~£-20m p.a. until at least 2030.
In addition to projects to move energy consumption towards renewable sources, the
Group continues to target improved efficiency of infrastructure through IWS
methodologies and footprint related projects, reducing idleness of infrastructure and
optimising our use of energy. Product lifecycle analysis, greater recycling of our
products through take-back schemes, and improved product design all assist in
delivering production efficiencies and reduce the exposure of the Group to potential
future energy cost increases.
Where possible, energy hedging (typically over a period of 12 – 18 months) is used as a
mechanism to mitigate the impact of short-term shocks to our manufacturing-based
energy costs, with a risk mitigation framework stipulating level of coverage to be
achieved through hedging. Similar mechanisms are being used by the Group to lock the
cost of renewable energy over the medium term (mitigating the premiums in pricing
expected versus standard electricity), through the use of virtual power purchase
agreements.
Comment
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
30
Identifier
Risk 4
Where in the value chain does the risk driver occur?
Direct operations
Risk type & Primary climate-related risk driver
Market
Other, please specify
Potential increase in cost and / or decrease in access to capital markets in the
event of climate change driven increases to operating costs and / or ESG concerns
from investors.
Primary potential financial impact
Decreased access to capital
Company-specific description
The Group access the capital market to provide funding for business operations. c.40%
of the Group’s funding is in form of debt based on latest market capitalisation estimates.
BAT current credit rating of Baa2 (Moody's, or BBB+ S&P) is based on our scale and
broad geographical diversification, solid brand portfolio, strong market positions in both
developed and emerging markets and our strong profit performance, and also reflects
the speed in which we are transforming our business to multi-category (New Categories
and beyond) to mitigate the impact of volume decline on combustible products.
As at year ended 2022 the Group has £42.4bn of bonds, with the vast majority financed
in USD at interest rates ranging from 1.7% to 8.1% and maturity dates ranging from
2023 to 2052.
Climate impacts have the potential to impact the businesses profitability as well as
investor’s perception of BAT’s efforts in addressing ESG concerns. This may impact
investor’s demand for BAT debt which will affect BAT’s cost of funds as well as our
ability to access capital, which may have potential knock-on impacts to our future
interest costs and may impact the overall profitability of our business.
Time horizon
Medium-term
Likelihood
Unlikely
Magnitude of impact
Low
Are you able to provide a potential financial impact figure?
Yes, an estimated range
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
31
Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
31,000,000
Potential financial impact figure – maximum (currency)
62,000,000
Explanation of financial impact figure
The financial impact provided was performed for the purposes of TCFD reporting by the
Group within its YE 2022 annual reporting. Although there is no precedence in the
market to value the potential impact of climate change on financing costs, based on our
ongoing engagement with our banking partners we have estimated that the potential
impact on our cost of debt to be similar in magnitude to a credit rating decline of 1 to 2
notches (i.e. Moody’s from Baa2 towards Baa3, S&P from BBB+ towards BBB),
potentially increasing our cost of debt by between 0.25% and 0.50%, although our credit
rating remains unaffected.
The drivers of this potential impact include;
(a) potential operating cost increase or revenue decline due to direct climate change
impacts that may lead to a credit rating decline;
(b) implied tobacco credit spreads widen versus investment grade comparables with the
same credit ratings,
A financial analysis was performed of the profile of our debt (with £42.4bn of bonds
issued by the Group as at 31/12/22). Based on the maturity of existing debt, we
modelled the impact of potential increased borrowing costs that the Group may
potentially incur on the debt that is due to mature in the period 2024 – 2026 (an amount
valued at £12.4bn as at 31/12/22), with an impact of between £31m and £62m
estimated in the event of a +0.25% and +0.50% increase in borrowing costs
respectively.
It is noted that this financial impact is considered indicative, assuming that the Group
ceases to prioritise the climate related responses within ESG, (which would go against
the Group's current strategy) and assumes all maturing debt is refinanced.
Cost of response to risk
40,000,000
Description of response and explanation of cost calculation
BAT ensures that our climate change response as well as ESG targets are; (1) well
defined; (2) ambitious; (3) relevant to stakeholders and; (4) well communicated. This
allows stakeholders and potential investors to properly appraise their investment
opportunities with BAT as well as provide feedback to ensure that BAT has meaningful
dialogues with them to manage our access to and cost of capital.
ESG is central to the Group's strategy and reducing the impact of our business on the
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
32
environment and increasing our resilience to climate change are a key part of BAT's
ESG ambitions.
The cost of response reflects the amount the Group invested in 2022 within Operations
on ESG activities including:
• Capex investment to improve the efficiency and reduce the GHG emissions of our
factories and Green Leaf Threshing infrastructure, as well as machinery required to
facilitate product specification changes to reduce the environmental impact of our
products
• Investment in ESG product innovation activities (environmentally improved filter
materials, inner bundling, improving the recyclability of plastics packaging as outlined at
pages 54-55 of the 2022 Combined Annual and ESG Report.
• Investment in Global Leaf Agronomy activities to enhance farmer livelihoods, and drive
environmental excellence (water reduction, carbon management, agricultural best
practice) as outlined at pages 62-63 of the 2022 Combined Annual and ESG Report.
• Investment in our Operations Centre of Excellence with responsibilities including
carbon emission reduction (e.g. decarbonisation roadmaps/renewable energy and
energy efficiency projects), waste (and end of life management) and water stewardship
(e.g. Water Roadmaps for sites in water-stressed areas) as outlined at pages 52,55 and
58 - 59 of the 2022 Combined Annual and ESG Report.
The Group's performance against its external targets and goals are disclosed annually
within our Combined Annual and ESG Report. A tangible outcome of these efforts
includes reducing the likely impact of climate change on our business, as well as
ensuring our ESG performance meets the expectations of our stakeholders and assists
in mitigating the likelihood and impact of credit rating changes and future costs of debt.
Comment
It is recognised that it is difficult to separate the impact of climate related responses on
the cost of capital. BAT’s key capital rating will be largely driven by its ability to build a
sustainable future through attracting consumers to its New Category Products and
ensuring this category becomes commercially viable. The overall cost of response only
considers the investments in ESG initiatives whereas the costs to respond to the wider
risk on cost of capital will be significantly higher as it would need to include investment
in new products and marketing activities. For example, we spent £323m in 2022 on
R&D activities, the majority of which related to New Category Products.
C2.4
(C2.4) Have you identified any climate-related opportunities with the potential to have
a substantive financial or strategic impact on your business?
Yes
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
33
C2.4a
(C2.4a) Provide details of opportunities identified with the potential to have a
substantive financial or strategic impact on your business.
Identifier
Opp1
Where in the value chain does the opportunity occur?
Direct operations
Opportunity type
Resource efficiency
Primary climate-related opportunity driver
Use of more efficient production and distribution processes
Primary potential financial impact
Reduced direct costs
Company-specific description
Improving energy efficiency is an important part of our Low Carbon Transition Plan by
enabling our Operating sites to achieve our carbon neutrality targets and reduce overall
Scope 1 and 2 emissions. Almost 80% of these emissions are being generated by these
Operating facilities.
In planning the delivery of Group targets, glidepaths have been developed at a factory,
Region, and Group level, to track our progress and prioritise our investments towards
initiatives that deliver the most effective emission reductions and energy cost reduction.
In addition, a focus on top losses caused by inefficient use of energy, are analysed and
remediating actions are put in place under the Group’s IWS programme.
Factory glidepaths are regularly assessed and with proposals for investments in energy
efficiency initiatives such as building energy management systems, Heating, Ventilation
and Air Conditioning (HVAC) systems, solar heating, cooling, and boiler replacements.
These proposals are reviewed centrally and incorporate the use of our Internal Carbon
Price to reflect the future cost of carbon to the business.
The reduction in losses either through best practices or use of more efficient machinery
will not only support the Group’s delivery of its ESG targets but also generate
opportunities to reduce the impact of carbon taxes and mitigate the risks of future
energy cost inflation.
Time horizon
Long-term
Likelihood
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
34
Likely
Magnitude of impact
Low
Are you able to provide a potential financial impact figure?
Yes, an estimated range
Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
22,000,000
Potential financial impact figure – maximum (currency)
40,000,000
Explanation of financial impact figure
In 2022, 69 initiatives to reduce carbon emissions were implemented across 66 of our
operating facilities. These initiatives delivered a total reduction in our scope 1 and 2
emissions of 15,011 MT CO2e (~2.7% of the Group 2020 baseline). The annualised
energy cost saving of these initiatives implemented amounted to £2.9m, with a one-off
capex cost of £7m. Continued investment is planned for up until 2030 and will play a
crucial role in helping the Group make progress towards its targets.
The financial estimate of the potential benefit of these initiatives include both the cost of
direct energy that is anticipated to be saved as a consequence of the installation of
more energy efficient plant and machinery, as well as the financial benefit of emission
reduction, using our Internal Carbon Pricing to the value of this benefit. The lower
financial estimate assumes £2m of energy cost reduction initiatives being implemented
for a period of 8 years reducing scope 1 and 2 emissions by 10,000 MT CO2e p.a.
together with an average internal carbon price of £80 per MT (total financial impact
£22m). The upper range assumes £3m of energy cost reduction initiatives being
implemented for a period of 8 years reducing scope 1 and 2 emissions by 20,000 MT
CO2e p.a. together with an average internal carbon price of £100 per MT (total financial
impact £40m).
Whilst we fully intend to optimise the efficiency of our infrastructure as far as possible,
we recognise emission reduction may get more challenging over time, depending on
technological developments, as high impact initiatives are prioritised in the early years of
our transition. Consequently, the range of benefits reflects different scenarios on the
average savings and timing of delivery up to 2030. Additionally, we also recognise
uncertainties relating to internal carbon pricing in the future as it depends on level of
supply and demand, hence estimating these at an average of £80-£100 per MT based
on current available market data.
Cost to realize opportunity
68,000,000
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
35
Strategy to realize opportunity and explanation of cost calculation
Glidepaths have been developed at local factory, regional, and global level to map the
delivery of these targets, The Operations ESG team operates as a Centre of Excellence
and work in collaboration with the Regional Engineering team, the Group Head of
Manufacturing technology, and Local/ Regional Operations directors to provide insights,
technologies, and best practice, tailored to the local environment to ensure suitability to
drive energy efficiency programmes & emissions reduction. Where possible, local
engagement/ collaboration is also performed with universities with a view of accessing
new to world technologies that can be rolled out across Group infrastructure.
Opportunity areas are identified and prioritised, with Internal Carbon Pricing and
Marginal Abatement Costing tools used to appraise projects and allocate ESG funding,
with glidepath delivery tracked to ensure that pace and reach of transformation are in
line with our overall targets and ambition.
Through renewable solar on-site generation we decreased our reliance on national
energy grids, where energy sourced from fossil fuels make up a large % of the grids’
energy mix. 26 sites were generating renewable energy on-site. As of last year, we had
on-site solar generation coming online in Kenya, Uzbekistan, and Bangladesh.
In 2022 69 projects spanned across our 66 Group factories & GLTs and included the
following initiatives:
- Building energy management systems (e.g. Bangladesh)
- Compressors, Vacuums, and Heating, Ventilation & Air Conditioning (HVAC) systems
(e.g. South Korea, Nigeria, Mexico)
- Lighting upgrades and LED roll out (e.g. Indonesia, Brazil)
- Solar heating, cooling, and Photovoltaic equipment (e.g. Solomon Islands, Kenya,
Uzbekistan)
As noted above, the costs to realise the opportunity has been based on the average
investment cost over 2021/22 and have been projected to estimate the costs of similar
programmes as the Group continues to drive projects to deliver our targets, with an
average multiple of 8 years assumed (mid-point of 5 - 9 years used in the benefits
above, (8*£8.5m = £68m cost to achieve).
Comment
Identifier
Opp2
Where in the value chain does the opportunity occur?
Downstream
Opportunity type
Resilience
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
36
Primary climate-related opportunity driver
Other, please specify
Favourably impact farmer profitability and increase their resilience to climate
change
Primary potential financial impact
Reduced direct costs
Company-specific description
There is an opportunity to increase tobacco yields and reduce the impact of climate
related changes for our farmers. BAT purchase around 400,000 MT of packed tobacco
a year and, as such, security of supply is a fundamental requirement to the Group’s
future success.
In 2022, the Group sourced 63% of its annual tobacco requirement via 14 vertically
integrated leaf operations like Brazil, Mexico, Bangladesh & Pakistan, which hold direct
purchasing contracts with more than c81,000 farmers. This strategy of direct sourcing is
considered to provide the Group with the best opportunity to gain access to high quality,
sustainably sourced tobacco. These direct-contract purchases are then supplemented
through purchases from strategic and other 3rd party suppliers.
The resilience of our farmer base to climate change is therefore of pivotal importance,
ensuring their prosperous livelihood, which in turn ensures the future viability of tobacco
production and the Group’s access to tobacco.
We continuously seek to reinforce our directly contracted farmer base resilience through
the development of tailored best practise techniques developed by our Global Leaf
Agronomy Development centre based in Brazil as well as through local regional/ country
level partnerships. These initiatives, once developed and tested, are rolled out to our
contracted farmer base via our network of field technicians who are responsible for
working with the farmer throughout the growing season. As well as focusing on
environmental best practice, a key aspect of our strategy is the continuous improvement
of farmer yield (kg/ ha) with the following key benefits:
a) improves the financial returns of our directly contracted farmer base and their
financial sustainability;
b) also facilitates the repurposing of land for crop diversification and improved income
from non-tobacco crops; and
c) reduces our Scope 3 emissions (by reducing amount of curing fertilisers needed per
kg)
Whilst farmer yield is impacted by weather and other uncontrollable events, our field
performance data collected through the growing season shows a continuous
improvement in farmer yield over time, demonstrating the success of our strategy in
delivering best practice techniques to our farmer base. In Bangladesh as an example we
had an increase of 12.2% in yield compared to 2019.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
37
We believe that opportunity is ongoing and it will remain as an area for continuous
improvement.
Time horizon
Long-term
Likelihood
Likely
Magnitude of impact
Low
Are you able to provide a potential financial impact figure?
Yes, an estimated range
Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
5,000,000
Potential financial impact figure – maximum (currency)
7,500,000
Explanation of financial impact figure
As part of our Sustainability and farmer living income goals, we collect data to estimate
income levels generated by our contracted farmers and those farmers contracted by our
strategic third party suppliers through the production of tobacco and non-tobacco crops,
as well as other forms of income they generate through the year. The data collected
includes total volume produced, farmer yield, % of crop diversification, production costs,
and dependents living on the farms, allowing us to understand income levels vs in-
country indices such as rural and urban living wages. This visibility allows us to
understand the financial health of our contracted farmer base and those of strategic third
party suppliers representing around 80% of our tobacco purchases, better understand
the factors leading to lower vs higher incomes (extent of the impact of alternative crops/
production efficiency, increased use of labour) and take targeted interventions with our
contracted farmers as part of our social goals, and encourage our strategic third-party
suppliers to do the same in their respective spheres of influence.
For example,using this data across our 14 leaf operations, and based on production
volumes, number of farmers, and average yield (which ranges depending on tobacco
type, growing conditions, and size of farm amongst other factors), we were able to
estimate the benefit of a 1% yield improvement across our contracted farmer base in our
leading 5 leaf operations which generated a potential increase in farm revenue of
£2.4mn. When pro-rated to our globally contracted volumes, this indicates a benefit of
up to c. 40kg per hectare increase in tobacco production and a potential increase in
farm revenues of up to £7.5mn per annum at a global level.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
38
In light of our historic performance and ability to deploy best practise to our farms, this
yield improvement was considered conservative but demonstrates the potential benefit
that could arise from our continued global leaf research and agronomy efforts.
The increase in production efficiency also raises the possibility of farmers repurposing
their land for the purposes of non-tobacco growing activities. Our directly contracted
farmers utilise c. 88,000ha across our largest 5 operations for tobacco growing, with a
1% yield improvement giving up to 900 ha which could be repurposed for other
activities.
Cost to realize opportunity
7,200,000
Strategy to realize opportunity and explanation of cost calculation
Global leaf research and agronomy deployment is a key aspect of our strategy for
driving our environmental and social goals across the leaf operations we grow tobacco,
ensuring the application of best practice, and long term sustainability of the communities
working with or supported by tobacco production.
Our leaf research activities is split into 4 strategic pillars: farmer profitability, carbon
management, biodiversity, and water & climate change, with ongoing workstreams
designed to support the delivery of our targets and goals.
Situated in Brazil (our largest leaf operation globally) and leveraging decades of
experience in tobacco growing, the leaf research centre seeks tailored solutions for
application and deployment across all 12 of our leaf operations (as well as strategic 3rd
parties), with the following focus areas:
Soil Science & Plant Nutrition, Water management, Emissions, and pest management
Leaf Breeding, Seed Technology, Seed production & Industrialization,
Mechanization & Curing
Crop Protection, Agrochemicals, Agriculture best practice
Substrates, Botanicals, Bioprocess, Leaf Chemistry
Our Global Leaf Agronomy Development Centre has a cost of about £7.2mn annually
between investments and operating costs and its core purpose is to improve farmer
resilience and the sustainability of their farms. We have therefore allocated this £7.2 mn
as the cost to achieve the goal of favourably impacting farmer profitability and increasing
their resilience to climate change.
Using our network of leaf technicians and senior leaf leadership teams in each of the
operations, improvement needs are identified and form the basis of focus areas and
active workstreams within our Global Leaf Agronomy Development Centre, with
technology solutions identified and technology deployment plans developed over a time
horizon of up to 5 years.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
39
In 2022 deployment of technology specifically targeting farmer profitability improvement
included elite seed varieties in Bangladesh, Mexico and Pakistan. Mechanization to
reduce labour in soil management in Fiji, Kenya are being deployed. Other technologies
like stitching machine aiming labour reduction in the curing phase is being deployed in
Pakistan and under development in Bangladesh.
Comment
Identifier
Opp3
Where in the value chain does the opportunity occur?
Downstream
Opportunity type
Energy source
Primary climate-related opportunity driver
Use of lower-emission sources of energy
Primary potential financial impact
Reduced indirect (operating) costs
Company-specific description
Tobacco growing is a key contributor to the emissions within the Group’s value chain,
contributing total scope 3 emissions of 1,966 thousand tonnes CO2e in 2021 (32% of
the Group’s scope 3 emissions). Whilst on farm activities such as fertiliser usage and
farm equipment contribute to these emissions, the largest component relates to
practices used to cure flue-cured Virginia and Dark Fire Cured tobacco which represent
more than 70% of our tobacco purchases.
The Group has recognised the impact on environment and biodiversity and has had
programmes in place for many years to ensure wood used for curing is sustainability
sourced, with >99% of wood used for curing since 2016 being sourced from sustainable
means, and more than 80% of our tobacco purchased in 2022 being cured using
renewable fuels (sustainable wood, biomass, sun curing).
The Group has also sought to remove coal as a fuel source for curing. As of 2021, less
than 10% of the total tobacco sourced by the Group was cured using coal, and
programmes are in place to remove it entirely from the remaining locations where coal is
still used by the farmer base for curing (predominantly used as a fuel source in
Zimbabwe and South Africa, and partially used in China and Vietnam). In 2022 less than
6% of the volume was cured with coal, a considerable achievement.
Whilst relating to less than 10% of tobacco purchases, the emissions accounted for 28%
of the emissions generated in 2021 (leaf value chain emission, excluding biogenics),
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
40
and therefore remains a key priority of the Group in meeting its emission reduction
objectives of net zero across our value chain (scope 1, 2, and 3 emissions) by 2050).
By maximising the efficiency of curing processes and fuel used by our farmers (direct
contract, as well as indirect via strategic suppliers), we estimate that the emissions
generated by curing can be reduced by up to 90% (depending on tobacco barn type and
alternative fuel used) versus coal used in these countries (and included within our 2020
emissions baseline), and will contribute to our emissions reduction journey.
Time horizon
Medium-term
Likelihood
Very likely
Magnitude of impact
Low
Are you able to provide a potential financial impact figure?
Yes, an estimated range
Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
3,650,000
Potential financial impact figure – maximum (currency)
7,300,000
Explanation of financial impact figure
The financial estimate provided relates to the reduction in curing emissions expected to
be delivered on the purchases we make from our strategic supplier based in Zimbabwe
(which amounted to 19% of our curing emissions in 2021, excl. biogenics), with a rollout
plan in place to transition the strategic supplier’s farmer base from coal to renewable
fuels by 2025.
Pilots were performed in 2021 to test alternative options for curing fuel including wood,
wood chips, briquettes, and wood logs. The results of the trial demonstrated that the
level of emissions generated by coal amounted to 2.64kg CO2e vs 1 kg of coal used,
with alternative wood fuels being approximately 0.12kg Co2e vs 1 kg of wood (~95%
lower emissions). Given the properties of the alternative fuel sources, the thermal
efficiency was 2.1 times lower than the coal being replaced, and as such, the overall
reduction in emissions amounted to 90% ((0.12*2.1)/2.64).
We therefore anticipate curing emissions for our purchased tobacco from our strategic
supplier in Zimbabwe will reduce cumulatively by 61,000 MT CO2e in the next three
years.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
41
We have estimated the financial benefit associated with this emission reduction through
the anticipated cost of carbon. Our internal cost of carbon has been considered as a
proxy for the benefits that the coal removal project will deliver, with indicative prices of
£60 per MT for 2022 (lower range = £3.65m) rising to £120 per MT for 2030 (upper
range = £7.3m).
Cost to realize opportunity
750,000
Strategy to realize opportunity and explanation of cost calculation
As noted within Opportunity #3, our Global Leaf Agronomy Development Centre plays a
key role in our climate change strategy, with Carbon management being one of its four
strategic pillars. We launched programme Curing 2.0 in 2021 with multiple workstreams
and initiatives being developed in 2021 and 2022 which consider optimised curing barn
construction (optimised for the farmer base, affordability, and materials available in the
countries they operate), as well as the fuel(s) being used to cure the tobacco to optimise
thermal efficiency/ emissions being generated.
In 2021 we introduced 33,000 directly contracted farmers across 4 countries (Brazil, Sri
Lanka, Bangladesh and Pakistan) to fuel-efficient curing technologies, with the barns
piloted in Brazil and Sri Lanka demonstrating a reduction of at least 30% in fuel and
14% in electricity used, with Bangladesh and Pakistan showing a 15% reduction
compared to traditional models. Deployment plans have been established to roll these
technologies out to our directly contracted farmer base aligned with local priorities and
needs.
Specifically in Zimbabwe, our strategic third-party supplier has performed pilots of wood,
wood chip, and briquettes across 5% of their contracted farmer base across both small
scale and commercial farmers. Leveraging the expertise of our Global Leaf Agronomy
Development Centre based in Brazil, assessments were performed to analyse the best
combination of barn type and fuel use. Trials were successful and our strategic third-
party supplier has rollout plans in place to remove coal from use as a curing fuel.
As part of the rollout plan, our strategic third-party supplier has analysed logistics routes
to deliver the alternative fuel from wood farms to the supplier base, with backloading
(wood for following season taken back by the farmer as the current crop is delivered to
the buying floors) used wherever possible to reduce transport costs/ emissions. Based
on the analysis performed, including the cost of timber and the volume of renewable fuel
required (noting reduced thermal efficiency vs coal) the cost of replacing coal has been
estimated at £0.05 per kg of tobacco purchased (~£750,000) per annum based on
current volumes being purchased.
Comment
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
42
Identifier
Opp4
Where in the value chain does the opportunity occur?
Downstream
Opportunity type
Resource efficiency
Primary climate-related opportunity driver
Use of more efficient modes of transport
Primary potential financial impact
Reduced direct costs
Company-specific description
Emissions from logistics and distribution accounted for 4% of the Group’s 2020 Scope 3
emissions. In-line with BAT Group ambition to achieve -50% reduction in Scopes 1 to 3
GHG emissions by 2030 and net zero GHG emissions across our value chain in entire
supply chain by 2050, the company is continuously seeking opportunities to optimize
their transportation operation and reduce the resultant freight emissions. Through
improved forecast accuracy and planning, the focus has been to reduce air freight
associated with our New Category products and move towards lower emission
transportation.
Since 2021 there has been a reduction in the usage of air freight and increase in the
utilization of sea freight for New Categories product. In 2021 60% was transferred
through sea freight and this increased to 75% in 2022. The company will continue to
seek to optimise the use of sea freight in its logistics network.
Time horizon
Short-term
Likelihood
More likely than not
Magnitude of impact
Low
Are you able to provide a potential financial impact figure?
Yes, an estimated range
Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
8,000,000
Potential financial impact figure – maximum (currency)
16,000,000
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
43
Explanation of financial impact figure
The financial benefits associated with the increased use of sea freight in the transporting
of finished goods components has two elements – the reduction in logistics costs in
transporting our product from the suppliers to our distribution centres, as well as the
reduction in scope 3 emissions, with the cost of carbon being used as a proxy to
estimate the financial benefits associated with the reduction in emissions being targeted.
The minimum financial benefits have been based on the benefit of moving from a
baseline of 60% sea freight to 75% sea freight based on 2022 forecasted volumes. This
results in a logistics benefit of between ~£8-£10m. The maximum potential benefit is
based on sea freight reaching 90%.
Cost to realize opportunity
1,400,000
Strategy to realize opportunity and explanation of cost calculation
Our supply chain operation is continuously looking for opportunities & innovations to
adopt carbon efficient solutions for transportation. One of the key strategies is to
minimize airfreight. In order implement the reduction in air freight, especially in the
transportation on New Categories product, team is focusing on planning smart and
ahead to avoid last minute delivery urgencies.
The process of early forecasting and longer lead time allocation for material movement
is maturing with time, enabling gradual reduction in the use of air freight. Air freight for
regular product movement has been capped through adding an extra layer of approval
process for any unplanned air shipment.
While there were challenges in route selection and the allocation of lead times in 2022,
due to on-going geo-political tension, we believe that we will have opportunity to utilize
more sea freight in coming years through continued prioritization of sea freight for
regular material movement and stringent scrutiny for urgent air freight cases.
The cost to respond reflects the uplift in inventory to ensure sufficiency of supply, given
additional transport time of sea freight (shipment period 5-6 weeks). The financial
estimate provided relates to additional 5-6 weeks of inventory for those products that
have less than 75% of sea freight.
Comment
C3. Business Strategy
C3.1
(C3.1) Does your organization’s strategy include a climate transition plan that aligns
with a 1.5°C world?
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
44
Row 1
Climate transition plan
Yes, we have a climate transition plan which aligns with a 1.5°C world
Publicly available climate transition plan
Yes
Mechanism by which feedback is collected from shareholders on your climate
transition plan
We have a different feedback mechanism in place
Description of feedback mechanism
We engage with and receive feedback from shareholders on environmental, social &
governance (ESG) / sustainability matters generally, and climate change matters
specifically, including our climate transition plan and our commitments to halve absolute
GHG emissions by 2030 and achieve Net Zero by 2050 across our value chain (scope
1, 2 & 3). We engage with shareholders and collect feedback on our TCFD Report,
which includes key elements of our climate transition plan and detailed financial
modelling on the timing and materiality of key climate-related risks and opportunities,
including on a 1.5°C-aligned transition. Our comprehensive Investor Relations (IR)
programme includes: IR general and ESG-specific roadshows across our shareholder
base; Specific IR ESG communications materials; and, 1:1 ESG-specific meetings with
shareholders. BAT attendees include, amongst others, our Chief Growth Officer (the
Management Board member responsible for ESG / sustainability), Director of Scientific
Research (Management Board member responsible for science and R&D), Chief
Sustainability Officer, Head of IR, Senior Investor Sustainability Manager, and Head of
ESG. Our Chairman and Chief Executive also receive feedback on ESG matters,
including on our climate transition, during their regular interactions with investors.
Additionally, shareholders also have opportunities to ask questions on any matter,
including our climate transition, at our Annual General Meeting.
Frequency of feedback collection
More frequently than annually
Attach any relevant documents which detail your climate transition plan
(optional)
BAT's Low Carbon Transition Plan aligned with a 1.5°C trajectory is publicly available
here:
https://www.bat.com/group/sites/UK__9D9KCY.nsf/vwPagesWebLive/DOAWWEKR/$fil
e/BAT_Low_Carbon_Transition_Plan_2022.pdf
C3.2
(C3.2) Does your organization use climate-related scenario analysis to inform its
strategy?
Use of climate-related scenario analysis to inform strategy
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
45
Row 1
Yes, qualitative and quantitative
C3.2a
(C3.2a) Provide details of your organization’s use of climate-related scenario analysis.
Climate-
related
scenario
Scenario
analysis
coverage
Temperature
alignment of
scenario
Parameters, assumptions, analytical choices
Physical
climate
scenarios
RCP 8.5
Company-
wide
Analytical choices made aligned to climate scenarios
from the UN IPCC methodology and GHG trajectories
for RCP 8.5. We named this 'Climate Inaction, >3
degree'. This provides us with the worst case of
climate risk and scenario for BAT. We further analysed
3 timeframes: short (2022-2027), medium (2028 -2037)
and long term (2038-2050). We included financial
modelling elements: carbon pricing projects, financial
data, energy, consumption and customer trends.
Parameters are the 10 largest tobacco source/ growing
countries, the regional temperature behaviour over
time, precipitation, and soil water levels (surplus and
deficit). This was assessed and risk calculated relative
to the growing conditions.
Assumptions include the impact of crop yields/ access
and cost to tobacco and financial impact of the
scenario. These were modelled to determine the
highest risk countries and develop mitigation plans.
Transition
scenarios
Bespoke
transition
scenario
Company-
wide
3.1ºC - 4ºC
Analytical choices made aligned to climate scenarios
that result in warming of 3-4 degrees. We named this
'Climate Inaction, >3 degree'. We further analysed 3
timeframes: short (2022-2027), medium (2028 -2037)
and long term (2038-2050). We included data sets
such as REMIND-MAgPIE 3.0-4.4 with 'Divergent Net
Zero' scenario and customer, energy, financial and
regulatory elements.
Parameters include the scale and timing of transition
impacts on plastic regulation and tax, energy pricing
and consumer preference, assessed to calculate risks
and opportunities within a given market at a point in
time
Assumptions include changes in relevant emerging
legislation e.g. plastic tax and renewable energy,
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
46
changes in energy consumption based on product
growth and energy efficiency forecasts.
Physical
climate
scenarios
RCP 2.6
Company-
wide
Analytical choices made aligned to climate scenarios
from the UN IPCC methodology and GHG trajectories
for RCP 2.6. We named this 'Sustainable Transition < 2
degree'. We further analysed 3 timeframes: short
(2022-2027), medium (2028 -2037) and long term
(2038-2050). We included financial modelling elements:
carbon pricing projects, financial data, energy,
consumption and customer trends.
Parameters are the 10 largest tobacco source/ growing
countries, the regional temperature behaviour over
time, precipitation, and soil water levels (surplus and
deficit). This was assessed and risk calculated relative
to the growing conditions.
Transition
scenarios
Bespoke
transition
scenario
Company-
wide
1.5ºC
Analytical choices made aligned to climate scenarios
that limit warming to 1.5 degrees. We named this
(Sustainable Transition <2 degrees). We further
analysed 3 timeframes: short (2022-2027), medium
(2028 -2037) and long term (2038-2050). We included
data sets such as REMIND-MAgPIE 3.0-4.4 with
'Divergent Net Zero' scenario and customer, energy,
financial and regulatory elements.
Parameters include the scale and timing of transition
impacts on plastic regulation and tax, energy pricing
and consumer preference, assessed to calculate risks
and opportunities within a given market at a point in
time
Assumptions include changes in relevant emerging
legislation e.g. plastic tax and renewable energy,
changes in energy consumption based on product
growth and energy efficiency forecasts.
C3.2b
(C3.2b) Provide details of the focal questions your organization seeks to address by
using climate-related scenario analysis, and summarize the results with respect to
these questions.
Row 1
Focal questions
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
47
The focal questions that scenario analysis helps us to answer are - how might the
impact and likelihood of our material risks and opportunities change under three time
horizons: short term (2022 – 2027), medium term (2028 – 2037), and longer term (2038
– 2050) and two climate scenarios, Sustainable Transition (1.5 degree warming) and
Climate Inaction (>3 degree warming).
Material risks are those that could have a significant effect on our operations, strategy
and financial planning if they are not managed appropriately. In contrast, material
opportunities may improve our financial performance over time in the event they can be
realised.
Results of the climate-related scenario analysis with respect to the focal
questions
We identified three climate-related opportunity areas and seven climate-related threats,
which span transitional Opportunities: O1 Products & services; O2 Energy sourcing and
O3 Resource efficiency), Transitional risks: T1 Emerging regulation on carbon pricing;
T2 Emerging Regulation on Products; T3 Increased Cost of Capital; T4 Increased
Insurance Premiums; T5 Increased Energy Prices and Physical risks: T6 Acute & T7
Chronic. These are described in the TCFD disclosure section of the 2022 Combined
Annual Report.
The results of the Sustainable Transition scenario highlighted increased Transitional risk
of compliance costs due to emerging regulation, cost of green energy and carbon
taxation arising from Government policies. The impact would be greatest in the medium
term as these regulatory costs outweighed the reduction in emissions and energy
consumption as part of BAT’s Low Carbon Transition Plan. In addition, higher costs &
reduced access to both insurance and capital markets were identified across the three
time-horizons. This analysis has informed the decision to undertake a more
comprehensive review of BAT’s energy strategy including seeking opportunities in
Purchase Power Agreements in certain countries over the next few years and continue
supporting energy reduction initiatives.
Physical risk analysis under the Sustainable Transition showed that whilst there were
some favourable and unfavourable impacts on yield across the three time horizons and
two scenarios, the risk of potential financial impact on annual cost of tobacco is less
than 5 %. We believe the impacts on yield can be mitigated through agronomy action
plans, which avoid yield driven cost of production increases.
The results of the Climate Inaction scenario showed the cost of Transition risks will be
lower, and impact delayed, as little or no change to current regulation is projected.
In contrast to Transition risks, Physical risks were shown to be most severe under
Climate Inaction (the scenario sees a world where warming exceeds a 3°C threshold)
due to increased frequency and severity of climate-related events and consequential
potential financial impact on our business. In response, more extensive mitigation may
be required incl. investments in working capital to increase our supply chain resilience &
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
48
this will continue to be monitored.
While there are challenges ahead, the Group is well placed to address them. We believe
we have the resilience & agility to create new transitional growth opportunities,
supported by our global reach, supply chain flexibility, diverse product portfolio and
capital strength. The insights gained from the modelling performed further strengthen
the importance & relevance of our climate strategy and net zero carbon emissions target
to mitigate these risks. We will continue to review each material climate related risk &
opportunity and build upon our existing mitigation strategies to enhance the resilience of
our business to climate change.
C3.3
(C3.3) Describe where and how climate-related risks and opportunities have
influenced your strategy.
Have climate-related
risks and
opportunities
influenced your
strategy in this area?
Description of influence
Products and
services
Yes
We recognise the importance of linking our sustainability
ambitions to our products. We are building brands with
purpose with a view to meet the changing needs of
consumers and to generate growth. Sustainability is a key
part of that purpose.
Our Group-wide circular economy strategy and life cycle
analysis (LCAs) across our product categories support this.
Our Product strategy is multi-faceted, considering both the
materials used in its production to reduce their
environmental impact at source (recyclable, compostable
products no unnecessary single use plastic) as well as
ensuring takeback schemes are in place in countries where
we market New Category devices, to facilitate responsible
disposal of used device, in line with local logistical, legal and
regulatory requirements and infrustructures. In addition,
92% of packaging was resuable, recyclable or compostable.
Our stakeholder engagement programme demonstrates that
consumers care about products with a reduced
environmental impact and targets have been set to achieve
30% of average recycled content in plastic packaging and
our waste going to landfill to be less than 1% by 2025.
Where permitted to do so, we articulate our commitment to
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
49
reduce the environmental impact of our products (including
digital platforms to enhance consumer engagement via our
Corporate and brand websites as demonstrated by Vuse) to
raise awareness of our ESG ambition and performance to
date with a view of enhancing consumer buy-in, brand
loyalty, and generating growth through increasing market
share of our products to realise the opportunities presented
by climate change.
Supply chain
and/or value
chain
Yes
Risks & opportunities posed to our supply chain include
ability to grow/ access tobacco, risks of impending
regulation, and increasing costs of energy. Whilst these
risks are not new, the likelihood of these risks occurring are
acerbated by climate change and we seek to ensure that
our strategy continues to mitigate the risks as far as
possible.
Examples of how our strategies have been impacted
include:
Access to Leaf tobacco – we have a long track record of
agronomic excellence and rollout of farmer best practise. A
new agronomy centre is being established in Asia to
supplement our global centre in Brazil which will assist in
the rollout of technologies for Asian growing markets to
ensure efficient use of water and minimise the impact of
climate change on growing yields in the future. For example,
tailored seed varieties, and deployment of farming best
practices such as alternative row irrigation, drip irrigation,
and plough techniques to minimise the effects of flood
driven soil erosion. Inventory durations and our sourcing
footprint continue to be reviewed to ensure supply risk is
mitigated by diversification of sourcing and holding sufficient
levels of inventory to mitigate the risk of supply shortfalls via
flooding, drought, fire & other risks posed by climate
change.
Carbon-smart farming programme - taking a strategic
approach on reducing emissions from tobacco using
agriculture’s ability to remove carbon from the atmosphere.
We have launched the programme in Brazil, Bangladesh,
Mexico & Pakistan and the United States will join soon.
These countries represent our largest in-house leaf
operations and learnings from these countries will help
further develop and scale up the programme as part of our
wider climate strategy.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
50
Supplier Engagement – we continue to increase the number
of suppliers we engage in CDP, extending to nearly 220
direct and indirect suppliers in 2022 (up from 64 in 2021). In
addition to the Supplier Code of Conduct and invitations to
CDP Supply Chain programme, we introduced a “Supplier
Pledge” to our top 60 suppliers. This Pledge requests that
suppliers engage in activities such as disclosing to CDP,
monitoring and reducing GHG emissions and establishing
targets and action plans. We intend to deploy the Pledge on
a wider scale in the future.
Energy costs on direct operations – see strategy on
renewable energy within operations.
Investment in
R&D
Yes
We are investing in R&D to develop alternatives products
that not only reduce risk to health, but their environmental
impact. The strategy focuses on initiatives to improve
recyclability and increase the use of recycled & recyclable
materials.
This strategy of using less virgin material helps reduce both
waste and CO2e emissions. Our targets are:
- 100% of plastic packaging to be reusable, recyclable, or
compostable by 2025; and
- 30% average recycled content across all plastic packaging
by 2025.
In 2022, we changed the pack profile of our Vapour refills in
Canada and included recycled cardboard content. The
reduced pack profile resulted in a 15% reduction in CO2e
per unit and a 45% saving in paper use in Canada. We plan
to roll out the reduced pack profile and recycled board
content across the Group over the course of 2023.
Our glo device packaging is recyclable, where local facilities
exist, and we have worked to eliminate any unnecessary
plastic packaging from it. We've removed all plastic wrap
from glo device packaging, which has resulted in a saving of
20 metric tonnes of plastic per year. In 2022, we also
reduced the device box size by over 55% vs 2021, which
has resulted in a saving of 300 metric tonnes of paper per
year, and a 65% reduction in CO2e footprint from the
changes to our device packaging.
Globally, over 80% of the cans used in our Velo products
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
51
are recyclable, where local facilities exist. In the U.S.,
Traditional Oral product containers (Grizzly moist snuff and
Camel Snus) are made from plastic (polypropylene) & steel,
which are recyclable, where facilities exist.
We have made progress in improving the recyclability of
plastic packaging in cigarettes. 93% of our plastic packaging
for cigarettes can be recycled and all poly film, as well as
tear-off strips used on packs, can be recycled (subject to
local recycling infrastructure). We are also conducting trials
on alternative plastic-free materials for cellulose acetate
cigarette filters (filters classified as having plastic content).
These actions align with the transitional opportunity
identified in C3.2b where market share can be captured due
to consumer preference for 'sustainability leaders', which is
enabled through innovation guided by sustainability goals.
Operations
Yes
Our strategy across operational sites is to use
decarbonisation assessments and value stream mapping to
eliminate losses and identify opportunities to reduce CO2e
emissions and energy use. This underpinned by our target
to reduce Scope 1 & 2 emission by 50% vs. our 2020
baseline in 2030. Our internal Energy Standard provides
guidance on decarbonisation and seeks consistency in the
way climate-related initiatives are financially assessed with
our Internal Carbon Price glidepath. Each of our
manufacturing facilities has a detailed decarbonisation
roadmap to clearly demonstrate its contribution to and the
actions needed to reach our targets.
The Operations Sustainability team operates as a Centre of
Excellence for Scopes 1 and 2, collaborating with Regional
Engineering teams, Group Heads of Manufacturing
Technology, and Local and Regional Operations directors to
provide insights, technologies and best practices to drive
energy-efficiency programmes, emissions reductions and
increase renewable energy use.
In 2022, we implemented more than 69 initiatives that
resulted in the reduction of nearly 15,011 tCO2e emissions.
This is equivalent to 2.8% of our 2020 baseline. The
projects included establishing smart energy management
systems that optimise consumption, upgrading and
replacing heating and lighting, air conditioning systems,
installing solar heating, and replacing boilers with less
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
52
polluting alternatives such as biomass. Furthermore, we
continued expanding our green electricity purchasing
program in countries such as Indonesia, Vietnam,
Honduras, etc as well PV deployment in Pakistan,
Uzbekistan, Kenya helping reduce 43,130 tCO2e.
C3.4
(C3.4) Describe where and how climate-related risks and opportunities have
influenced your financial planning.
Financial planning
elements that have
been influenced
Description of influence
Row
1
Revenues
Direct costs
Capital
expenditures
Capital allocation
Access to capital
Short, medium, and long term financial planning is performed by the
Group and considers all factors likely to influence business performance,
including climate related risks and opportunities. Examples of how our
financial planning has been influenced in 2022 by climate change factors
include:
Revenues – Volume, market share growth, and pricing forms a key part
of our profitability. Climate change considerations include but are not
limited to the competitiveness of our products, ensuring they meet
consumer needs, and perform better than our competition. We
continuously seek insights through consumer research to understand
consumer need spaces which feed into future product innovation, and
monitor market share data to track our performance vs business plans.
For example, providing consumers the opportunity to return used
devices through Take-Back schemes for responsible disposal is an
important part of glo and Vuse’s brand planning. We continue to take in
the learnings from our experience and look for ways to improve in this
area. Physical risks driven by climate change also play into revenue
planning, ensuring we have sufficient inventory durations (with a trade
off on working capital and funding costs) to mitigate short term supply
risks whilst our business continuity plans are mobilised, with a view to
mitigate impact on our consumers.
Direct costs – A key metric for financial planning is cost of sales and
ability to manage the impact of inflation on overall profitability. Ways in
which climate change considerations can impact cost of sales and, as
such, are considered as part of our financial planning include increasing
costs of tobacco leaf as a consequence of supply led constraints (El
Nino weather events, flooding, drought, hail storms) impacting yield and
production volumes; the cost of raw materials and impact of specification
changes as we introduce innovation to reduce the environmental impact
of our products (e.g. improving the recyclability of our products, the
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
53
increased use of recyclable packaging and materials); the cost of
regulation as demonstrated via EPR in Europe; as well as the cost of
energy impacting our direct operations as well as our wider value chain
as we transition away from fossil fuels.
Capital allocation – the Group use established processes to determine
base budget allocation for future periods and resource allocation
requests are made for significant incremental funding requirements. For
example, in 2022, more capital was allocated to fund the expansion of
the Global Sustainability Team which included Operations’ ESG Centre
of Excellence teams and for a larger capital investment budget.
Capital investment – we fund a dedicated capital investment budget
used to progress the delivery of our ESG commitments. In 2022, this
amounted to £27 million, with investments directed towards equipment to
drive energy efficiency and renewable energy generation, water
recycling and efficiency projects, waste reduction, and product
innovation-led specification improvements to drive recyclability and
reduce waste. Financial planning is used to prioritise budgets, with the
use of MACC, Internal Carbon Pricing and Balance Scorecards
(assessing impact on environmental and social targets of the specific
investment case).
Access to capital - Climate risk/opportunities impact BAT’s financing in a
couple of ways: (1) climate change may impact the business financially
through potentially higher costs and/or our consumers ability to buy our
products which, if materialised, would impact our profitability and credit
ratings and; (2) perception of our investors towards our ESG progress
which could reduce their willingness to invest in BAT or restrict our
access to capital. Both of these, if they were to materialise, would result
in higher cost of funding for BAT. The process of managing this risk is
embedded in our financing principles which is agreed and reported to the
main board. Operationally, funding is also discussed at the Corporate
Committee and at the Corporate Finance Committee (chaired by our
Finance Director). We also have a monthly Treasury Risk Committee
where we monitor this. In terms of metrics, we have an established
medium term target credit rating which seeks to achieve a balance
between balance sheet requirements and access to capital as well as
various other metrics. In addition, the Corporate Treasury team is
embedded in key discussions on ESG as well as dialogues through debt
investor engagement to understand the dynamics of ESG impact on
funding and capital markets and take appropriate actions to mitigate
against any potential impact of our access to capital due to ESG factors.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
54
C3.5
(C3.5) In your organization’s financial accounting, do you identify spending/revenue
that is aligned with your organization’s climate transition?
Identification of spending/revenue that is aligned with your organization’s climate
transition
Row
1
Yes, we identify alignment with our climate transition plan
C3.5a
(C3.5a) Quantify the percentage share of your spending/revenue that is aligned with
your organization’s climate transition.
Financial Metric
CAPEX
Type of alignment being reported for this financial metric
Alignment with our climate transition plan
Taxonomy under which information is being reported
Objective under which alignment is being reported
Amount of selected financial metric that is aligned in the reporting year (unit
currency as selected in C0.4)
27,000,000
Percentage share of selected financial metric aligned in the reporting year (%)
5
Percentage share of selected financial metric planned to align in 2025 (%)
5
Percentage share of selected financial metric planned to align in 2030 (%)
5
Describe the methodology used to identify spending/revenue that is aligned
● Capital investment initiatives that contribute to a reduction in GHG emissions across
the supply chain as set out in the Group’s Low Carbon Transition Plan.
● To ensure the delivery of emission targets set across Scope 1-3, glidepaths have
been established, with capital investment and operating budgets set to support the
delivery of these planned reductions. 2022 spend related to emission reduction
initiatives included those relating to factories emission reduction (examples include solar
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
55
panel installations at our factories in Turkey and Mexico, as well as Bio Mass Boilers /
Heatpumps in South Korea and Hungary) and the use of materials that generate less
emissions (such as moving to fully recyclable innerbundling for packs “reloc” and
“maxim” cigarette packs).
● The forecasted investment is expected to increase to ~7% of total spend in 2023 but
on average is estimated to be ~5% over medium term
● It is recognised that EU Taxonomy criteria is more restrictive. Therefore absolute
values and percentages quoted would be lower than those quoted in the above table.
C4. Targets and performance
C4.1
(C4.1) Did you have an emissions target that was active in the reporting year?
Absolute target
C4.1a
(C4.1a) Provide details of your absolute emissions target(s) and progress made
against those targets.
Target reference number
Abs 1
Is this a science-based target?
Yes, and this target has been approved by the Science Based Targets initiative
Target ambition
1.5°C aligned
Year target was set
2021
Target coverage
Company-wide
Scope(s)
Scope 1
Scope 2
Scope 2 accounting method
Market-based
Scope 3 category(ies)
Base year
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
56
2020
Base year Scope 1 emissions covered by target (metric tons CO2e)
342,034
Base year Scope 2 emissions covered by target (metric tons CO2e)
198,830
Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target (metric tons CO2e)
Base year Scope 3, Category 2: Capital goods emissions covered by target
(metric tons CO2e)
Base year Scope 3, Category 3: Fuel-and-energy-related activities (not
included in Scopes 1 or 2) emissions covered by target (metric tons CO2e)
Base year Scope 3, Category 4: Upstream transportation and distribution
emissions covered by target (metric tons CO2e)
Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target (metric tons CO2e)
Base year Scope 3, Category 6: Business travel emissions covered by target
(metric tons CO2e)
Base year Scope 3, Category 7: Employee commuting emissions covered by
target (metric tons CO2e)
Base year Scope 3, Category 8: Upstream leased assets emissions covered by
target (metric tons CO2e)
Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target (metric tons CO2e)
Base year Scope 3, Category 10: Processing of sold products emissions
covered by target (metric tons CO2e)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
57
Base year Scope 3, Category 11: Use of sold products emissions covered by
target (metric tons CO2e)
Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target (metric tons CO2e)
Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target (metric tons CO2e)
Base year Scope 3, Category 14: Franchises emissions covered by target
(metric tons CO2e)
Base year Scope 3, Category 15: Investments emissions covered by target
(metric tons CO2e)
Base year Scope 3, Other (upstream) emissions covered by target (metric tons
CO2e)
Base year Scope 3, Other (downstream) emissions covered by target (metric
tons CO2e)
Base year total Scope 3 emissions covered by target (metric tons CO2e)
Total base year emissions covered by target in all selected Scopes (metric
tons CO2e)
540,864
Base year Scope 1 emissions covered by target as % of total base year
emissions in Scope 1
100
Base year Scope 2 emissions covered by target as % of total base year
emissions in Scope 2
100
Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target as % of total base year emissions in Scope 3, Category 1:
Purchased goods and services (metric tons CO2e)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
58
Base year Scope 3, Category 2: Capital goods emissions covered by target as
% of total base year emissions in Scope 3, Category 2: Capital goods (metric
tons CO2e)
Base year Scope 3, Category 3: Fuel-and-energy-related activities (not
included in Scopes 1 or 2) emissions covered by target as % of total base year
emissions in Scope 3, Category 3: Fuel-and-energy-related activities (not
included in Scopes 1 or 2) (metric tons CO2e)
Base year Scope 3, Category 4: Upstream transportation and distribution
covered by target as % of total base year emissions in Scope 3, Category 4:
Upstream transportation and distribution (metric tons CO2e)
Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target as % of total base year emissions in Scope 3, Category 5:
Waste generated in operations (metric tons CO2e)
Base year Scope 3, Category 6: Business travel emissions covered by target
as % of total base year emissions in Scope 3, Category 6: Business travel
(metric tons CO2e)
Base year Scope 3, Category 7: Employee commuting covered by target as %
of total base year emissions in Scope 3, Category 7: Employee commuting
(metric tons CO2e)
Base year Scope 3, Category 8: Upstream leased assets emissions covered by
target as % of total base year emissions in Scope 3, Category 8: Upstream
leased assets (metric tons CO2e)
Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target as % of total base year emissions in Scope 3,
Category 9: Downstream transportation and distribution (metric tons CO2e)
Base year Scope 3, Category 10: Processing of sold products emissions
covered by target as % of total base year emissions in Scope 3, Category 10:
Processing of sold products (metric tons CO2e)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
59
Base year Scope 3, Category 11: Use of sold products emissions covered by
target as % of total base year emissions in Scope 3, Category 11: Use of sold
products (metric tons CO2e)
Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target as % of total base year emissions in Scope 3,
Category 12: End-of-life treatment of sold products (metric tons CO2e)
Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target as % of total base year emissions in Scope 3, Category 13:
Downstream leased assets (metric tons CO2e)
Base year Scope 3, Category 14: Franchises emissions covered by target as %
of total base year emissions in Scope 3, Category 14: Franchises (metric tons
CO2e)
Base year Scope 3, Category 15: Investments emissions covered by target as
% of total base year emissions in Scope 3, Category 15: Investments (metric
tons CO2e)
Base year Scope 3, Other (upstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (upstream) (metric tons CO2e)
Base year Scope 3, Other (downstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (downstream) (metric tons CO2e)
Base year total Scope 3 emissions covered by target as % of total base year
emissions in Scope 3 (in all Scope 3 categories)
Base year emissions covered by target in all selected Scopes as % of total
base year emissions in all selected Scopes
100
Target year
2030
Targeted reduction from base year (%)
50
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
60
Total emissions in target year covered by target in all selected Scopes (metric
tons CO2e) [auto-calculated]
270,432
Scope 1 emissions in reporting year covered by target (metric tons CO2e)
307,708
Scope 2 emissions in reporting year covered by target (metric tons CO2e)
112,764
Scope 3, Category 1: Purchased goods and services emissions in reporting
year covered by target (metric tons CO2e)
Scope 3, Category 2: Capital goods emissions in reporting year covered by
target (metric tons CO2e)
Scope 3, Category 3: Fuel-and-energy-related activities (not included in
Scopes 1 or 2) emissions in reporting year covered by target (metric tons
CO2e)
Scope 3, Category 4: Upstream transportation and distribution emissions in
reporting year covered by target (metric tons CO2e)
Scope 3, Category 5: Waste generated in operations emissions in reporting
year covered by target (metric tons CO2e)
Scope 3, Category 6: Business travel emissions in reporting year covered by
target (metric tons CO2e)
Scope 3, Category 7: Employee commuting emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 8: Upstream leased assets emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 9: Downstream transportation and distribution emissions
in reporting year covered by target (metric tons CO2e)
Scope 3, Category 10: Processing of sold products emissions in reporting
year covered by target (metric tons CO2e)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
61
Scope 3, Category 11: Use of sold products emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 12: End-of-life treatment of sold products emissions in
reporting year covered by target (metric tons CO2e)
Scope 3, Category 13: Downstream leased assets emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 14: Franchises emissions in reporting year covered by
target (metric tons CO2e)
Scope 3, Category 15: Investments emissions in reporting year covered by
target (metric tons CO2e)
Scope 3, Other (upstream) emissions in reporting year covered by target
(metric tons CO2e)
Scope 3, Other (downstream) emissions in reporting year covered by target
(metric tons CO2e)
Total Scope 3 emissions in reporting year covered by target (metric tons
CO2e)
Total emissions in reporting year covered by target in all selected scopes
(metric tons CO2e)
420,472
Does this target cover any land-related emissions?
Yes, it covers land-related CO2 emissions/removals associated with bioenergy and non-
land related emissions (e.g. non-FLAG SBT with bioenergy)
% of target achieved relative to base year [auto-calculated]
44.5184001893
Target status in reporting year
Underway
Please explain target coverage and identify any exclusions
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
62
BAT commits to reduce absolute scope 1 and 2 GHG emissions 50% by 2030 from a
2020 base year.* BAT also commits to reduce absolute scope 3 GHG emissions from
purchased goods and services, upstream transportation and distribution, use of sold
products, and end of life treatment of sold products 50% by 2030 from a 2020 base
year. BAT commits that 20% of its suppliers by spend covering purchased goods and
services will have science-based targets by 2025.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks.
In alignment with the SBTi Forest, Land, and Agriculture (FLAG) Emissions Guidance
published in 2022, and anticipating the forthcoming release of the final GHG Protocol
Land Sector & Removals Guidance in 2024, BAT aims to establish SBTi FLAG-targets
tailored to our value chain in 2024.
Plan for achieving target, and progress made to the end of the reporting year
BAT's strategy to achieve the 50% reduction target involves addressing Scope 2
emissions (market based) through the implementation of green electricity procurement
methods (EAC's, green contracts, and PPA's) tailored to the specific characteristics of
each market. Moreover, we aim to further enhance on-site generation to minimize
Scope 1 emissions. This entails transitioning from coal or diesel to cleaner burner fuels
like natural gas and, whenever feasible, embracing biomass alternatives. Additionally,
we are committed to continuously advancing our energy efficiency initiatives and
expanding on-site solar. In 2022, we made substantial progress by effectively executing
our plan, resulting in a 22% reduction in both Scope 1 and Scope 2 (market-based)
emissions compared to our 2020 baseline (420,472 / 540,864) -1 = -22%.
List the emissions reduction initiatives which contributed most to achieving
this target
Target reference number
Abs 2
Is this a science-based target?
Yes, and this target has been approved by the Science Based Targets initiative
Target ambition
1.5°C aligned
Year target was set
2021
Target coverage
Company-wide
Scope(s)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
63
Scope 3
Scope 2 accounting method
Scope 3 category(ies)
Category 1: Purchased goods and services
Category 4: Upstream transportation and distribution
Category 11: Use of sold products
Category 12: End-of-life treatment of sold products
Base year
2020
Base year Scope 1 emissions covered by target (metric tons CO2e)
Base year Scope 2 emissions covered by target (metric tons CO2e)
Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target (metric tons CO2e)
4,011,245
Base year Scope 3, Category 2: Capital goods emissions covered by target
(metric tons CO2e)
Base year Scope 3, Category 3: Fuel-and-energy-related activities (not
included in Scopes 1 or 2) emissions covered by target (metric tons CO2e)
Base year Scope 3, Category 4: Upstream transportation and distribution
emissions covered by target (metric tons CO2e)
225,088
Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target (metric tons CO2e)
Base year Scope 3, Category 6: Business travel emissions covered by target
(metric tons CO2e)
Base year Scope 3, Category 7: Employee commuting emissions covered by
target (metric tons CO2e)
Base year Scope 3, Category 8: Upstream leased assets emissions covered by
target (metric tons CO2e)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
64
Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target (metric tons CO2e)
Base year Scope 3, Category 10: Processing of sold products emissions
covered by target (metric tons CO2e)
Base year Scope 3, Category 11: Use of sold products emissions covered by
target (metric tons CO2e)
640,627
Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target (metric tons CO2e)
323,971
Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target (metric tons CO2e)
Base year Scope 3, Category 14: Franchises emissions covered by target
(metric tons CO2e)
Base year Scope 3, Category 15: Investments emissions covered by target
(metric tons CO2e)
Base year Scope 3, Other (upstream) emissions covered by target (metric tons
CO2e)
Base year Scope 3, Other (downstream) emissions covered by target (metric
tons CO2e)
Base year total Scope 3 emissions covered by target (metric tons CO2e)
5,200,931
Total base year emissions covered by target in all selected Scopes (metric
tons CO2e)
5,200,931
Base year Scope 1 emissions covered by target as % of total base year
emissions in Scope 1
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
65
Base year Scope 2 emissions covered by target as % of total base year
emissions in Scope 2
Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target as % of total base year emissions in Scope 3, Category 1:
Purchased goods and services (metric tons CO2e)
100
Base year Scope 3, Category 2: Capital goods emissions covered by target as
% of total base year emissions in Scope 3, Category 2: Capital goods (metric
tons CO2e)
Base year Scope 3, Category 3: Fuel-and-energy-related activities (not
included in Scopes 1 or 2) emissions covered by target as % of total base year
emissions in Scope 3, Category 3: Fuel-and-energy-related activities (not
included in Scopes 1 or 2) (metric tons CO2e)
Base year Scope 3, Category 4: Upstream transportation and distribution
covered by target as % of total base year emissions in Scope 3, Category 4:
Upstream transportation and distribution (metric tons CO2e)
100
Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target as % of total base year emissions in Scope 3, Category 5:
Waste generated in operations (metric tons CO2e)
Base year Scope 3, Category 6: Business travel emissions covered by target
as % of total base year emissions in Scope 3, Category 6: Business travel
(metric tons CO2e)
Base year Scope 3, Category 7: Employee commuting covered by target as %
of total base year emissions in Scope 3, Category 7: Employee commuting
(metric tons CO2e)
Base year Scope 3, Category 8: Upstream leased assets emissions covered by
target as % of total base year emissions in Scope 3, Category 8: Upstream
leased assets (metric tons CO2e)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
66
Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target as % of total base year emissions in Scope 3,
Category 9: Downstream transportation and distribution (metric tons CO2e)
Base year Scope 3, Category 10: Processing of sold products emissions
covered by target as % of total base year emissions in Scope 3, Category 10:
Processing of sold products (metric tons CO2e)
Base year Scope 3, Category 11: Use of sold products emissions covered by
target as % of total base year emissions in Scope 3, Category 11: Use of sold
products (metric tons CO2e)
100
Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target as % of total base year emissions in Scope 3,
Category 12: End-of-life treatment of sold products (metric tons CO2e)
100
Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target as % of total base year emissions in Scope 3, Category 13:
Downstream leased assets (metric tons CO2e)
Base year Scope 3, Category 14: Franchises emissions covered by target as %
of total base year emissions in Scope 3, Category 14: Franchises (metric tons
CO2e)
Base year Scope 3, Category 15: Investments emissions covered by target as
% of total base year emissions in Scope 3, Category 15: Investments (metric
tons CO2e)
Base year Scope 3, Other (upstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (upstream) (metric tons CO2e)
Base year Scope 3, Other (downstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (downstream) (metric tons CO2e)
Base year total Scope 3 emissions covered by target as % of total base year
emissions in Scope 3 (in all Scope 3 categories)
92.6
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
67
Base year emissions covered by target in all selected Scopes as % of total
base year emissions in all selected Scopes
92.6
Target year
2030
Targeted reduction from base year (%)
50
Total emissions in target year covered by target in all selected Scopes (metric
tons CO2e) [auto-calculated]
2,600,465.5
Scope 1 emissions in reporting year covered by target (metric tons CO2e)
Scope 2 emissions in reporting year covered by target (metric tons CO2e)
Scope 3, Category 1: Purchased goods and services emissions in reporting
year covered by target (metric tons CO2e)
3,703,409
Scope 3, Category 2: Capital goods emissions in reporting year covered by
target (metric tons CO2e)
Scope 3, Category 3: Fuel-and-energy-related activities (not included in
Scopes 1 or 2) emissions in reporting year covered by target (metric tons
CO2e)
Scope 3, Category 4: Upstream transportation and distribution emissions in
reporting year covered by target (metric tons CO2e)
208,240
Scope 3, Category 5: Waste generated in operations emissions in reporting
year covered by target (metric tons CO2e)
Scope 3, Category 6: Business travel emissions in reporting year covered by
target (metric tons CO2e)
Scope 3, Category 7: Employee commuting emissions in reporting year
covered by target (metric tons CO2e)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
68
Scope 3, Category 8: Upstream leased assets emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 9: Downstream transportation and distribution emissions
in reporting year covered by target (metric tons CO2e)
Scope 3, Category 10: Processing of sold products emissions in reporting
year covered by target (metric tons CO2e)
Scope 3, Category 11: Use of sold products emissions in reporting year
covered by target (metric tons CO2e)
661,953
Scope 3, Category 12: End-of-life treatment of sold products emissions in
reporting year covered by target (metric tons CO2e)
226,589
Scope 3, Category 13: Downstream leased assets emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 14: Franchises emissions in reporting year covered by
target (metric tons CO2e)
Scope 3, Category 15: Investments emissions in reporting year covered by
target (metric tons CO2e)
Scope 3, Other (upstream) emissions in reporting year covered by target
(metric tons CO2e)
Scope 3, Other (downstream) emissions in reporting year covered by target
(metric tons CO2e)
Total Scope 3 emissions in reporting year covered by target (metric tons
CO2e)
4,800,191
Total emissions in reporting year covered by target in all selected scopes
(metric tons CO2e)
4,800,191
Does this target cover any land-related emissions?
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
69
Yes, it covers land-related CO2 emissions/removals associated with bioenergy and non-
land related emissions (e.g. non-FLAG SBT with bioenergy)
% of target achieved relative to base year [auto-calculated]
15.4103178835
Target status in reporting year
Underway
Please explain target coverage and identify any exclusions
BAT commits to reduce absolute scope 1 and 2 GHG emissions 50% by 2030 from a
2020 base year.* BAT also commits to reduce absolute scope 3 GHG emissions from
purchased goods and services, upstream transportation and distribution, use of sold
products, and end of life treatment of sold products 50% by 2030 from a 2020 base
year. BAT commits that 20% of its suppliers by spend covering purchased goods and
services will have science-based targets by 2025.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks.
In alignment with the SBTi Forest, Land, and Agriculture (FLAG) Emissions Guidance
published in 2022, and anticipating the forthcoming release of the final GHG Protocol
Land Sector & Removals Guidance in 2024, BAT aims to establish SBTi FLAG-targets
tailored to our value chain in 2024.
Plan for achieving target, and progress made to the end of the reporting year
Scope 3 GHG emissions (including biogenic emissions and removals) comprise most of
our total carbon footprint, contributing to 91% of our total value chain emissions in 2021.
In order to reduce Scope 3 emissions, we are focusing our efforts on the most carbon-
intensive categories first, taking the following approach: 1. Collaborating with tobacco
farmers through carbon-smart farming; 2. Using sustainable tobacco curing fuels by
eliminating residual use of coal for curing while ensuring gross deforestation does not
occur in the process; 3. Building a more climate-resilient supply chain partnership with
direct and indirect suppliers; and 4. Fostering a circular economy throughout our value
chain by increasingly using readily recyclable materials, designing for end of life, and
implementing product Take-Back schemes for our New Category devices.
Due to the complexity of consolidating and verifying Scope 3 data in accordance with
the GHG Protocol, we report on Scope 3 one year behind. Therefore, please note that
current emissions populated above are related to our reporting year 2022 (Dec-21 to
Nov-22) for Scope 1 and Scope 2 while Scope 3 emissions correspond to the reporting
year 2021 (Dec-20 to Nov-21). The 2022 reporting period Scope 3 emissions figures
are underway.
List the emissions reduction initiatives which contributed most to achieving
this target
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
70
C4.2
(C4.2) Did you have any other climate-related targets that were active in the reporting
year?
Target(s) to increase low-carbon energy consumption or production
Net-zero target(s)
Other climate-related target(s)
C4.2a
(C4.2a) Provide details of your target(s) to increase low-carbon energy consumption
or production.
Target reference number
Low 1
Year target was set
2018
Target coverage
Company-wide
Target type: energy carrier
All energy carriers
Target type: activity
Consumption
Target type: energy source
Renewable energy source(s) only
Base year
2017
Consumption or production of selected energy carrier in base year (MWh)
3,148,397
% share of low-carbon or renewable energy in base year
9.1
Target year
2025
% share of low-carbon or renewable energy in target year
30
% share of low-carbon or renewable energy in reporting year
32.9
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
71
% of target achieved relative to base year [auto-calculated]
113.8755980861
Target status in reporting year
Achieved
Is this target part of an emissions target?
No
Is this target part of an overarching initiative?
No, it’s not part of an overarching initiative
Please explain target coverage and identify any exclusions
The parameter is: Percentage (%), share of renewable energy used (Mwh) in direct
energy used (MWh), i.e. energy used by our sites & offices and fleet vehicles.
Renewable energy use (MWh) covers the use of renewable fuels as well as purchased
green electricity, heat and steam. Use of renewable fuels helps to reduce Scope 1
CO2e emissions since emissions factors associated with renewable fuels are
significantly lower than that of non-renewable fuels. Use of purchased renewable
electricity, heat and steam allows to reduce Scope 2 CO2e emissions as per Market-
Based method since emissions factors associated with renewable electricity are zero or
significantly lower than that of standard grid electricity. Thus, actions to achieve this
target contribute to achievement of Emissions Target Abs 1.
There are no exclusions in the scope of the target and parameter monitored against it.
Plan for achieving target, and progress made to the end of the reporting year
List the actions which contributed most to achieving this target
1) On-site electricity generation from our 26 solar installations (newly installed in 6
countries e.g. Pakistan and Uzbekistan) 2) Renewable electricity purchases and
extension to new countries e.g. Indonesia, US. Vietnam, Korea, Honduras. 3) Usage
biomass for steam generation e.g. Brazil, Switzerland, Sri Lanka; and 4) Energy
efficiency activities aimed at reducing the use of non-renewable energy use such as
installing energy consumption systems as well as driving our Energy Conservation
(ENERCON) program for energy usage optimization.
Target reference number
Low 2
Year target was set
2022
Target coverage
Company-wide
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
72
Target type: energy carrier
All energy carriers
Target type: activity
Consumption
Target type: energy source
Renewable energy source(s) only
Base year
2020
Consumption or production of selected energy carrier in base year (MWh)
2,568,143
% share of low-carbon or renewable energy in base year
26.8
Target year
2030
% share of low-carbon or renewable energy in target year
50
% share of low-carbon or renewable energy in reporting year
32.9
% of target achieved relative to base year [auto-calculated]
26.2931034483
Target status in reporting year
New
Is this target part of an emissions target?
No.
Is this target part of an overarching initiative?
No, it’s not part of an overarching initiative
Please explain target coverage and identify any exclusions
The parameter is: Percentage (%), share of renewable energy used (Mwh) in direct
energy used (MWh), i.e. energy used by our sites & offices and fleet vehicles.
Renewable energy use (MWh) covers the use of renewable fuels as well as purchased
green electricity, heat and steam. Use of renewable fuels helps to reduce Scope 1
CO2e emissions since emissions factors associated with renewable fuels are
significantly lower than that of non-renewable fuels. Use of purchased renewable
electricity, heat and steam supports reduction in Scope 2 CO2e emissions as per
Market-Based method since emissions factors associated with renewable electricity are
zero or significantly lower than that of standard grid electricity. Thus, actions to achieve
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
73
this target contribute to achievement of Emissions Target Abs 1.
There are no exclusions in the scope of the target and parameter monitored against it.
Plan for achieving target, and progress made to the end of the reporting year
The plan for achieving the Renewable energy target includes:
1/ energy generated from renewable fuels at our sites (e.g. wood fuel, bio mass fuels)
and in fleet vehicles, owned or leased (e.g. biodiesel)
2/ purchased renewable electricity, hot water and steam
3/ renewable energy generated on site using non-fuel technology (e.g. with photovoltaic
installations or solar water heaters)
These focus on:
1/ opportunities to purchase of electrical energy that is by 100% generated from
renewable sources with proper substantiation thereof
2/ opportunities for on-site renewable energy generation such as biomass.
In 2022 the % of Renewable energy in direct energy use was 32.9%
% of target achievement is calculated as follows: (32.9%- 26.8%)/ (50% - 26.8%) =
26.2%, subject to rounding.
List the actions which contributed most to achieving this target
Target reference number
Low 3
Year target was set
2020
Target coverage
Company-wide
Target type: energy carrier
Electricity
Target type: activity
Consumption
Target type: energy source
Renewable energy source(s) only
Base year
2017
Consumption or production of selected energy carrier in base year (MWh)
982,285
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
74
% share of low-carbon or renewable energy in base year
10.71
Target year
2030
% share of low-carbon or renewable energy in target year
100
% share of low-carbon or renewable energy in reporting year
75.2
% of target achieved relative to base year [auto-calculated]
72.225333184
Target status in reporting year
Underway
Is this target part of an emissions target?
No.
Is this target part of an overarching initiative?
No, it’s not part of an overarching initiative
Please explain target coverage and identify any exclusions
The parameter is: Percentage (%), share of renewable electricity (MWh) in total
electricity purchased (MWh) by our Operations sites. Operations sites refers to all BAT-
owned cigarette manufacturing factories, sites manufacturing other tobacco or nicotine
products, such as snus, modern oral and e-liquids and green leaf threshing (GLT)
tobacco processing sites. Use of purchased renewable allows to reduce Scope 2 CO2e
emissions as per Market-Based method since emissions factors associated with
renewable electricity are zero or significantly lower than that of standard grid electricity.
Thus, actions to achieve this target contribute to achievement of Emissions Target Abs
1. The target and parameter monitored against it does not cover electricity generated on
site for consumption from both renewable (e.g. solar installations) and non-renewable
sources (e.g. diesel used by stand-by generators).
Plan for achieving target, and progress made to the end of the reporting year
The target has been active throughout the reporting year 2022. We expanded
renewable electricity purchases at our Operations sites in Indonesia, US, Vietnam,
South Korea and Honduras. However, as part of our increased ambition we have
increased our target for renewable energy consumption covering all the energy carriers
and all direct operations from 30% to 50% of total energy consumption, and in an effort
to simplify we have prioritized total renewable energy consumption over purchased
renewable electricity which is one of the energy carriers. As such, we retired the target
in the beginning of 2023 reporting year and haven’t reflected it in our 2022 Combined
Annual and ESG report.
List the actions which contributed most to achieving this target
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
75
C4.2b
(C4.2b) Provide details of any other climate-related targets, including methane
reduction targets.
Target reference number
Oth 1
Year target was set
2018
Target coverage
Company-wide
Target type: absolute or intensity
Absolute
Target type: category & Metric (target numerator if reporting an intensity
target)
Waste management
metric tons of waste generated
Target denominator (intensity targets only)
Base year
2017
Figure or percentage in base year
160,124
Target year
2025
Figure or percentage in target year
136,105
Figure or percentage in reporting year
125,686
% of target achieved relative to base year [auto-calculated]
143.3781589575
Target status in reporting year
Achieved
Is this target part of an emissions target?
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
76
CO2e emissions associated with managing waste generated constitute a minor part of
Scope 3 emissions, thus there are no additional targets focussing on this category
specifically.
Is this target part of an overarching initiative?
No, it’s not part of an overarching initiative
Please explain target coverage and identify any exclusions
The target was to decrease the absolute volume of waste generated by 15% by 2025.
After achieving our original target of 15% 3 years early, in 2022 we increased our group
target to 25%. In monitoring the parameter against the target we follow the GRI 306:
Waste 2020 Standard, namely Disclosure 306-3 for waste generated from our direct
operations. As well as data from BAT facilities, this also includes construction waste
generated in BAT premises from on-site constructions, building modifications or
extensions. Our 2017 baseline figure is 160,124 tonnes. Baseline is not adjusted in case
of closure or acquisition of new sites. Target covers all waste generated across our
direct operations, without any exclusions.
Plan for achieving target, and progress made to the end of the reporting year
List the actions which contributed most to achieving this target
In 2022, as well as achieving a further 8.6% reduction in absolute waste versus 2021,
we also passed our initial target of a 15% reduction in waste from operations by 2025
against a 2017 baseline, achieving a 21.5% reduction.
These improvements were achieved by utilising existing processes from our Integrated
Work System (IWS) to increase machinery operational efficiency and reduce waste,
conducting loss analysis and value stream mapping. Further we optimized our material
management through internal reuse and suppliers take-back schemes to reduce waste.
Target reference number
Oth 2
Year target was set
2021
Target coverage
Company-wide
Target type: absolute or intensity
Absolute
Target type: category & Metric (target numerator if reporting an intensity
target)
Waste management
metric tons of waste generated
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
77
Target denominator (intensity targets only)
Base year
2017
Figure or percentage in base year
160,124
Target year
2025
Figure or percentage in target year
120,093
Figure or percentage in reporting year
125,686
% of target achieved relative to base year [auto-calculated]
86.0283280458
Target status in reporting year
New
Is this target part of an emissions target?
CO2e emissions associated with managing waste generated constitute a minor part of
Scope 3 emissions, thus there are no additional targets focussing on this category
specifically.
Is this target part of an overarching initiative?
No, it’s not part of an overarching initiative
Please explain target coverage and identify any exclusions
The target is to decrease the absolute volume of waste generated by 25% by 2025. The
target was enhanced in 2022 to replace the target to decrease the absolute volume of
waste generated by 15% by 2025, which was achieved 3 years in advance of the target
horizon.
In monitoring the parameter against the target we follow the GRI 306: Waste 2020
Standard, namely Disclosure 306-3 for waste generated from our direct operations. As
well as data from BAT facilities, this also includes construction waste generated in BAT
premises from on-site constructions, building modifications or extensions.
Our 2017 baseline figure is 160,124 tonnes. Baseline is not adjusted in case of closure
or acquisition of new sites. Target covers all waste generated across our direct
operations, without any exclusions.
Plan for achieving target, and progress made to the end of the reporting year
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
78
In 2022 we achieved our initial target of reducing waste generated from our operations
by 15% by 2025 vs 2017 baseline. As such, we increased it to a 25% reduction by
2025, against a 2017 baseline.
We plan to continue work toward waste reduction through cooperation with purchased
materials suppliers to reduce packaging, material management optimization and driving
loss analysis and value stream mapping.
List the actions which contributed most to achieving this target
Target reference number
Oth 3
Year target was set
2018
Target coverage
Company-wide
Target type: absolute or intensity
Absolute
Target type: category & Metric (target numerator if reporting an intensity
target)
Waste management
Percentage of total waste generated that is recycled
Target denominator (intensity targets only)
Base year
2017
Figure or percentage in base year
81.58
Target year
2025
Figure or percentage in target year
90
Figure or percentage in reporting year
84.33
% of target achieved relative to base year [auto-calculated]
32.6603325416
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
79
Target status in reporting year
Revised
Is this target part of an emissions target?
CO2e emissions associated with managing waste generated constitute a minor part of
Scope 3 emissions, thus there are no additional targets focussing on this category
specifically.
Is this target part of an overarching initiative?
No, it’s not part of an overarching initiative
Please explain target coverage and identify any exclusions
The target is to recycle at least 90% of waste that we generate by 2025. In 2022 the
target was revised by changing the commitment from 95% to 90%. The previous target
was set before alignment with new GRI 306: Waste 2020 Standard stipulating to
exclude waste to energy, incl. incineration for energy recovery and converting waste into
fuel, as a form of recycling. Our revised target of 90% in line with the targets of our
industry peers and is considered reasonable taking into account our current
performance and actions plan to drive the glidepath to 2025 commitment.
Our definition of Waste generation is aligned with GRI 306: Waste 2020 Standard, while
the definition of Waste Recycled covers both Waste Recycled and Waste Preparation
for Reuse as per GRI 306: Waste 2020 Standard. Recycling is operation applied to
items or materials that have become waste to ensure they fulfil a purpose in place of
new items or materials that would otherwise have been used for that purpose. This does
not include energy recovery, neither via incineration, nor via conversion into fuel. Each
our reporting unit reports the total amount of waste generation and its breakdown by
final destination, including recycling. Recycling rate is calculated as Waste Recycled
(tonnes) divided by Waste Generated (tonnes).
Our 2017 baseline figure is 81.58%. Baseline is not adjusted in case of closure or
acquisition of new sites. Target covers all waste generated across our direct operations,
without any exclusions.
Plan for achieving target, and progress made to the end of the reporting year
In order to achieve our target for waste recycling we plan to continue the search for and
work with recycling services suppliers, implement waste segregation at source at our
sites as well as driving loss analysis and value stream mapping to reduce waste
generation and direct higher proportion of it to recycling.
List the actions which contributed most to achieving this target
Target reference number
Oth 4
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
80
Year target was set
2021
Target coverage
Company-wide
Target type: absolute or intensity
Absolute
Target type: category & Metric (target numerator if reporting an intensity
target)
Waste management
Other, please specify
Percentage of total waste generated that is sent to landfill
Target denominator (intensity targets only)
Base year
2017
Figure or percentage in base year
10.11
Target year
2025
Figure or percentage in target year
1
Figure or percentage in reporting year
4.95
% of target achieved relative to base year [auto-calculated]
56.641053787
Target status in reporting year
New
Is this target part of an emissions target?
CO2e emissions associated with managing waste generated constitute a minor part of
Scope 3 emissions, thus there are no additional targets focussing on this category
specifically.
Is this target part of an overarching initiative?
No, it’s not part of an overarching initiative
Please explain target coverage and identify any exclusions
The target is to decrease the percentage of waste generated across our direct
operations that is sent to landfill to less than 1% by 2025.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
81
This is the target newly set in 2022 on the account that that landfilling is the least
preferable option in waste management hierarchy because of its negative impacts on
the environment and human health.
The target complements our target for achieving 90% waste recycling rate by 2025 and
replaces the previous target (i.e. 100% of Operations site at zero waste to landfill). The
new target (less than 1% to landfill) extends the commitment to the whole scope of our
direct operations, while taking into consideration that at certain geographies landfill is
the only legally appropriate option of disposing certain types of waste.
In monitoring the parameter against the target we follow the GRI 306: Waste 2020
Standard, namely Disclosure 306-5 for waste directed to disposal.
Each reporting unit reports the total amount of waste generation and its breakdown by
final destination, including landfill.
Our 2017 baseline figure is 10.11%. Baseline is not adjusted in case of closure or
acquisition of new sites.
Target covers all waste generated across our direct operations, without any exclusions.
Plan for achieving target, and progress made to the end of the reporting year
In order to achieve our target for waste to landfill reduction we plan to continue the
search for and work with recycling services suppliers, implement waste segregation at
source at our sites as well as driving loss analysis and value stream mapping to reduce
waste generation and divert more waste from landfill.
List the actions which contributed most to achieving this target
C4.2c
(C4.2c) Provide details of your net-zero target(s).
Target reference number
NZ1
Target coverage
Company-wide
Absolute/intensity emission target(s) linked to this net-zero target
Abs1
Abs2
Target year for achieving net zero
2050
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
82
Is this a science-based target?
Yes, we consider this a science-based target, and we have committed to seek validation
of this target by the Science Based Targets initiative in the next two years
Please explain target coverage and identify any exclusions
By joining the UN-supported Race to Zero global campaign, BAT has affirmed its
commitment to taking decisive action on climate change. As part of this commitment,
BAT is dedicated to establish a long term and net zero science-based targets that aim
for net-zero emissions across its entire value chain by 2050.
The urgent need to prevent the average global temperature from rising beyond 1.5°C
above pre-industrial levels necessitates substantial and widespread efforts. As a
company, BAT recognizes its pivotal role in driving change and is therefore aligning its
existing sustainability targets with this critical trajectory. Our ultimate objective is to
achieve net-zero emissions throughout our value chain no later than 2050.
The Race to Zero campaign stands as the largest alliance ever assembled, united by
the common goal of reducing global emissions by 50% by 2030 and attaining net-zero
carbon emissions by 2050. This alliance underscores the collective resolve to combat
climate change and sets the stage for unprecedented collaboration and innovation.
Do you intend to neutralize any unabated emissions with permanent carbon
removals at the target year?
Yes
Planned milestones and/or near-term investments for neutralization at target
year
In order to fulfil our ambitious climate objectives, we have developed a comprehensive
climate strategy that encompasses not only our own business operations but also our
broader value chain. Our milestones consist of short-term targets, approved by SBTi,
aimed at achieving a 50% reduction in Scopes 1, 2, and 50% reduction in Scope 3
emissions by 2030 compared to a 2020 baseline. Additionally, we are committed to
achieving carbon neutrality in our direct operations by 2030.
To achieve a 50% reduction in Scopes 1 and 2 emissions, we have established a
renewable energy use target of 50% by 2030. This target is supported by an increase in
the utilization of renewable energy sources and power purchase agreements (PPAs).
We are also investing in on-site renewable energy generation projects such as solar and
biomass.
Furthermore, we are accelerating our Energy Conservation (ENERCON) program,
which focuses on energy efficiency, through investments in energy-efficient projects and
management systems. Additionally, we are actively expanding the deployment of
electric, plug-in hybrid, and hybrid vehicles to minimize emissions from our fleet.
To address Scope 3 emissions, we are working on establishing a climate-resilient
supply chain that involves both direct and indirect suppliers. This effort is reinforced by
our objective of having 20% of our suppliers set Science-Based targets by 2025.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
83
Building on the expertise of our Global Leaf Agronomy Development team we have
launched Carbon Smart Farming. Through this initiative we are working with farmers to
find more efficient and sustainable fuel alternatives for tobacco curing, as an example in
2022 we met our internally set milestone for BAT Group's own leaf operations to not use
coal for curing. Through the same initiative we are looking at practices in the farm to
build resilience against climate change.
Finally, we are committed to fostering circularity throughout our value chain by
incorporating design concepts that consider the end-of-life phase of our products and
increasing the utilization of more recycled / recyclable materials. This will help us
minimize waste and make progress towards our goals.
Planned actions to mitigate emissions beyond your value chain (optional)
C4.3
(C4.3) Did you have emissions reduction initiatives that were active within the
reporting year? Note that this can include those in the planning and/or
implementation phases.
Yes
C4.3a
(C4.3a) Identify the total number of initiatives at each stage of development, and for
those in the implementation stages, the estimated CO2e savings.
Number of
initiatives
Total estimated annual CO2e savings in metric
tonnes CO2e (only for rows marked *)
Under investigation
205
0
To be implemented*
114
25,000
Implementation
commenced*
19
18,103
Implemented*
69
15,011
Not to be implemented
0
0
C4.3b
(C4.3b) Provide details on the initiatives implemented in the reporting year in the table
below.
Initiative category & Initiative type
Energy efficiency in buildings
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
84
Building Energy Management Systems (BEMS)
Estimated annual CO2e savings (metric tonnes CO2e)
1,052
Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1
Scope 2 (location-based)
Scope 2 (market-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
149,948
Investment required (unit currency – as specified in C0.4)
453,000
Payback period
1-3 years
Estimated lifetime of the initiative
16-20 years
Comment
Installation of metering systems for energy, compressed air and vacuum for further
addressing key consumers based on the measurements; detection and early fixing of
leakages/ losses.
Initiative category & Initiative type
Energy efficiency in buildings
Heating, Ventilation and Air Conditioning (HVAC)
Estimated annual CO2e savings (metric tonnes CO2e)
813
Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (location-based)
Scope 2 (market-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
238,212
Investment required (unit currency – as specified in C0.4)
712,003
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
85
Payback period
1-3 years
Estimated lifetime of the initiative
11-15 years
Comment
Modernization of Heating, Ventilation and Air Conditioning (HVAC) systems in key and
auxiliary departments, incl. replacement of HVAC components where losses of energy
were identified. Implemented at certain factories & Green Leaf Threshing plants in line
with 5-year energy saving plans.
Initiative category & Initiative type
Energy efficiency in buildings
Insulation
Estimated annual CO2e savings (metric tonnes CO2e)
571
Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
19,667
Investment required (unit currency – as specified in C0.4)
52,000
Payback period
1-3 years
Estimated lifetime of the initiative
6-10 years
Comment
Improved insultation of steam valves and distribution systems.
Initiative category & Initiative type
Energy efficiency in buildings
Lighting
Estimated annual CO2e savings (metric tonnes CO2e)
313
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
86
Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (location-based)
Scope 2 (market-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
74,402
Investment required (unit currency – as specified in C0.4)
224,011
Payback period
1-3 years
Estimated lifetime of the initiative
6-10 years
Comment
Lighting management, incl. LED lighting installation & use of natural lighting, equipping
buildings with insulation panels. Implemented across factories and Green Leaf
Threshing plants.
Initiative category & Initiative type
Energy efficiency in production processes
Compressed air
Estimated annual CO2e savings (metric tonnes CO2e)
985
Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (location-based)
Scope 2 (market-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
189,596
Investment required (unit currency – as specified in C0.4)
490,000
Payback period
1-3 years
Estimated lifetime of the initiative
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
87
11-15 years
Comment
Replacement and improvement of compressed air generation system to improve
efficiency and reduce losses. Implemented at certain factories & Green Leaf Threshing
plants in line with 5-year energy saving plans.
Initiative category & Initiative type
Energy efficiency in production processes
Motors and drives
Estimated annual CO2e savings (metric tonnes CO2e)
676
Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (location-based)
Scope 2 (market-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
98,866
Investment required (unit currency – as specified in C0.4)
207,510
Payback period
1-3 years
Estimated lifetime of the initiative
6-10 years
Comment
Replacement of motors and drives for more efficient models. Implemented at certain
factories & Green Leaf Threshing plants in line with 5-year energy saving plans.
Initiative category & Initiative type
Energy efficiency in production processes
Reuse of steam
Estimated annual CO2e savings (metric tonnes CO2e)
1,105
Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
88
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
140,399
Investment required (unit currency – as specified in C0.4)
328,198
Payback period
1-3 years
Estimated lifetime of the initiative
16-20 years
Comment
Upgrade of steam generation and supply system to recover and reuse steam; flash
steam recovery in boilers. Implemented at certain factories & Green Leaf Threshing
plants in line with 5-year energy saving plans.
Initiative category & Initiative type
Other, please specify
Other, please specify
Vacuum
Estimated annual CO2e savings (metric tonnes CO2e)
215
Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (location-based)
Scope 2 (market-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
30,739
Investment required (unit currency – as specified in C0.4)
159,000
Payback period
4-10 years
Estimated lifetime of the initiative
16-20 years
Comment
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
89
Replacement and improvement of vacuum generation system to improve efficiency and
reduce losses. Implemented at certain factories & Green Leaf Threshing plants in line
with 5-year energy saving plans.
Initiative category & Initiative type
Energy efficiency in production processes
Process optimization
Estimated annual CO2e savings (metric tonnes CO2e)
3,969
Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1
Scope 2 (location-based)
Scope 2 (market-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
1,191,309
Investment required (unit currency – as specified in C0.4)
1,256,613
Payback period
1-3 years
Estimated lifetime of the initiative
11-15 years
Comment
Set of energy efficiency initiatives, equipment utilisation optimisation, Variable Speed
Drives, control improvements, harmonics reduction, others.
Initiative category & Initiative type
Energy efficiency in production processes
Smart control system
Estimated annual CO2e savings (metric tonnes CO2e)
2,684
Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
90
Scope 2 (location-based)
Scope 2 (market-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
451,517
Investment required (unit currency – as specified in C0.4)
1,384,000
Payback period
1-3 years
Estimated lifetime of the initiative
16-20 years
Comment
Solution for automatic control of Heating, Ventilation and Air Conditioning (HVAC) and
boilers in some factories and Green Leaf Threshing plants (Artificial Intelligence).
Initiative category & Initiative type
Energy efficiency in production processes
Waste heat recovery
Estimated annual CO2e savings (metric tonnes CO2e)
388
Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
91,700
Investment required (unit currency – as specified in C0.4)
240,000
Payback period
1-3 years
Estimated lifetime of the initiative
11-15 years
Comment
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
91
Recovery of waste heat through heat exchangers. Implemented at certain factories in
line with 5-year energy saving plans.
Initiative category & Initiative type
Low-carbon energy generation
Solar PV
Estimated annual CO2e savings (metric tonnes CO2e)
2,240
Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (location-based)
Scope 2 (market-based)
Voluntary/Mandatory
Voluntary
Annual monetary savings (unit currency – as specified in C0.4)
209,656
Investment required (unit currency – as specified in C0.4)
1,604,282
Payback period
4-10 years
Estimated lifetime of the initiative
16-20 years
Comment
Installation of solar panels for on-site electricity generation.
C4.3c
(C4.3c) What methods do you use to drive investment in emissions reduction
activities?
Method
Comment
Dedicated budget for
energy efficiency
We continue to fund a dedicated ESG capital investment budget for
use in delivering our ESG objectives and external commitments
including investment in projects to improve the efficiency of our factory
infrastructure (emissions, water, waste), drive product innovation
related projects which improve our environment credentials (increased
use of recycled material, removal of single use plastics), and projects to
enhance our social performance (farmer livelihoods via mechanisation,
yield improvement projects, and others).
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
92
Internal Carbon Price and marginal abatement cost metrics are used as
a means of prioritising projects and allocating the dedicated budget.
The Capital investment budget amounted to £20mn in 2021 and is set
to rise to £42mn in 2023.
Compliance with regulatory
requirements/standards
At a site level there is an allocated budget to ensure compliance with
regulatory requirements and standards (including those related to
climate change). Budgetary requirements are reviewed on an annual
basis during a planning and budget allocation process; and as and
when a new regulatory requirement/standard is introduced. An example
is the investment in emissions reduction activities relating to the
compliance with both the UK Streamlined Energy and Carbon
Reporting (SECR) and the European Union Energy Savings
Opportunity Scheme (ESOS). We observe that a growing number of
companies outside the EU are beginning to develop clearer
commitments which favour local partners for implementation of
emissions reduction technologies.
Employee engagement
Employee engagement and related initiatives are a critical element in
how we reduce energy consumption/CO2e emissions. Such initiatives
have an allocated budget at a site level. This is reviewed on yearly
basis during a planning and budget allocation process. Emissions
reductions are partially included in reward scheme throughout
organisational structure. Awareness and communication campaign are
in place to imbed energy saving and waste reduction culture. World
Earth Day & Environment Day are celebrated annually across BAT to
trigger related local campaigns.
C4.5
(C4.5) Do you classify any of your existing goods and/or services as low-carbon
products?
No
C5. Emissions methodology
C5.1
(C5.1) Is this your first year of reporting emissions data to CDP?
No
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
93
C5.1a
(C5.1a) Has your organization undergone any structural changes in the reporting year,
or are any previous structural changes being accounted for in this disclosure of
emissions data?
Row 1
Has there been a structural change?
Yes, a divestment
Name of organization(s) acquired, divested from, or merged with
Our factory in US (Santa Fe Nautral Tobacco company, Oxford site)
Details of structural change(s), including completion dates
Our factory in US stopped operations, site was sold to a 3rd party. Date: June 2022
C5.1b
(C5.1b) Has your emissions accounting methodology, boundary, and/or reporting year
definition changed in the reporting year?
Change(s) in methodology, boundary, and/or reporting year definition?
Row 1
No
C5.1c
(C5.1c) Have your organization’s base year emissions and past years’ emissions been
recalculated as a result of any changes or errors reported in C5.1a and/or C5.1b?
Base year
recalculation
Base year emissions recalculation policy,
including significance threshold
Past years’
recalculation
Row
1
No, because the impact
does not meet our
significance threshold
The effect of divestments occurred between 2021
and 2022 and is <2% of our annual Scope 1 and 2
emissions, which is not material at the Group level,
thus no recalculation of emissions baseline and no
restatement of previously reported figures is
needed. The divested sites/ businesses continued
environmental reporting until the time the
divestment occurred.
No
C5.2
(C5.2) Provide your base year and base year emissions.
Scope 1
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
94
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
342,034
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.*
BAT also committed to reduce absolute scope 3 GHG emissions from purchased goods
and services, upstream transportation and distribution, use of sold products, and end of
life treatment of sold products 50% by 2030 from a 2020 base year.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks.
Scope 2 (location-based)
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
417,572
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.* BAT also committed to
reduce absolute scope 3 GHG emissions from purchased goods and services, upstream
transportation and distribution, use of sold products, and end of life treatment of sold
products 50% by 2030 from a 2020 base year.
The targets for Scope 1 and 2 CO2e emissions are as per Market-based approach. Yet,
we keep tracking Scope 2 emissions as per Location-based approach for comparison
and analysis of effect of renewable electricity purchases.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks
Scope 2 (market-based)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
95
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
198,830
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.* BAT also committed to
reduce absolute scope 3 GHG emissions from purchased goods and services, upstream
transportation and distribution, use of sold products, and end of life treatment of sold
products 50% by 2030 from a 2020 base year. *The target boundary includes land-
related emissions and removals from bioenergy feedstocks.
Scope 3 category 1: Purchased goods and services
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
4,011,245
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.* BAT also committed to
reduce absolute scope 3 GHG emissions from purchased goods and services, upstream
transportation and distribution, use of sold products, and end of life treatment of sold
products 50% by 2030 from a 2020 base year.
Please refer to Scope 3 methodology details in section C6.5.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks.
Scope 3 category 2: Capital goods
Base year start
December 1, 2019
Base year end
November 30, 2020
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
96
Base year emissions (metric tons CO2e)
177,040
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.* BAT also committed to
reduce absolute scope 3 GHG emissions from purchased goods and services, upstream
transportation and distribution, use of sold products, and end of life treatment of sold
products 50% by 2030 from a 2020 base year.
Please refer to Scope 3 methodology details in section C6.5.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks
Scope 3 category 3: Fuel-and-energy-related activities (not included in Scope 1 or
2)
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
133,606
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.* BAT also committed to
reduce absolute scope 3 GHG emissions from purchased goods and services, upstream
transportation and distribution, use of sold products, and end of life treatment of sold
products 50% by 2030 from a 2020 base year.
Please refer to Scope 3 methodology details in section C6.5.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks.
Scope 3 category 4: Upstream transportation and distribution
Base year start
December 1, 2019
Base year end
November 30, 2020
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
97
Base year emissions (metric tons CO2e)
225,088
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.* BAT also committed to
reduce absolute scope 3 GHG emissions from purchased goods and services, upstream
transportation and distribution, use of sold products, and end of life treatment of sold
products 50% by 2030 from a 2020 base year.
Please refer to Scope 3 methodology details in section C6.5.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks.
Scope 3 category 5: Waste generated in operations
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
8,831
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.* BAT also committed to
reduce absolute scope 3 GHG emissions from purchased goods and services, upstream
transportation and distribution, use of sold products, and end of life treatment of sold
products 50% by 2030 from a 2020 base year.
Please refer to Scope 3 methodology details in section C6.5.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks.
Scope 3 category 6: Business travel
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
98
7,737
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.* BAT also committed to
reduce absolute scope 3 GHG emissions from purchased goods and services, upstream
transportation and distribution, use of sold products, and end of life treatment of sold
products 50% by 2030 from a 2020 base year.
Please refer to Scope 3 methodology details in section C6.5.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks.
Scope 3 category 7: Employee commuting
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
53,468
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.* BAT also committed to
reduce absolute scope 3 GHG emissions from purchased goods and services, upstream
transportation and distribution, use of sold products, and end of life treatment of sold
products 50% by 2030 from a 2020 base year.
Please refer to Scope 3 methodology details in section C6.5.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks.
Scope 3 category 8: Upstream leased assets
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
99
0
Comment
Emissions from leased assets are included in Scopes 1 & 2.
Scope 3 category 9: Downstream transportation and distribution
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
27,385
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.* BAT also committed to
reduce absolute scope 3 GHG emissions from purchased goods and services, upstream
transportation and distribution, use of sold products, and end of life treatment of sold
products 50% by 2030 from a 2020 base year.
Please refer to Scope 3 methodology details in section C6.5.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks
As part of our 1.5ºC Science-Based Target approval process we have added Scope 3
Category 9 (Downstream Transportation and Distribution) to our 2020 baseline.
Scope 3 category 10: Processing of sold products
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
0
Comment
BAT's products are not processed by third parties.
Scope 3 category 11: Use of sold products
Base year start
December 1, 2019
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
100
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
640,627
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.* BAT also committed to
reduce absolute scope 3 GHG emissions from purchased goods and services, upstream
transportation and distribution, use of sold products, and end of life treatment of sold
products 50% by 2030 from a 2020 base year.
Please refer to Scope 3 methodology details in section C6.5.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks.
Scope 3 category 12: End of life treatment of sold products
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
323,971
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.* BAT also committed to
reduce absolute scope 3 GHG emissions from purchased goods and services, upstream
transportation and distribution, use of sold products, and end of life treatment of sold
products 50% by 2030 from a 2020 base year.
Please refer to Scope 3 methodology details in section C6.5.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks.
Scope 3 category 13: Downstream leased assets
Base year start
December 1, 2019
Base year end
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
101
November 30, 2020
Base year emissions (metric tons CO2e)
0
Comment
BAT does not lease assets to third parties.
Scope 3 category 14: Franchises
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
4,895
Comment
2020 was selected as the baseline as BAT have obtained SBTi sign-off for our near-
term targets in line with 1.5°C trajectory. BAT committed to reduce absolute scope 1
and 2 GHG emissions 50% by 2030 from a 2020 base year.* BAT also committed to
reduce absolute scope 3 GHG emissions from purchased goods and services, upstream
transportation and distribution, use of sold products, and end of life treatment of sold
products 50% by 2030 from a 2020 base year.
Please refer to Scope 3 methodology details in section C6.5.
*The target boundary includes land-related emissions and removals from bioenergy
feedstocks.
Scope 3 category 15: Investments
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
0
Comment
BAT does not have equity or debt investments.
Scope 3: Other (upstream)
Base year start
December 1, 2019
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
102
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
0
Comment
Scope 3 emissions assessment performed by BAT with support of external sustainability
consultant identified no other upstream activities, emission from which would be
relevant.
Scope 3: Other (downstream)
Base year start
December 1, 2019
Base year end
November 30, 2020
Base year emissions (metric tons CO2e)
0
Comment
Scope 3 emissions assessment performed by BAT with support of external sustainability
consultant identified no other downstream activities, emission from which would be
relevant.
C5.3
(C5.3) Select the name of the standard, protocol, or methodology you have used to
collect activity data and calculate emissions.
Defra Environmental Reporting Guidelines: Including streamlined energy and carbon reporting
guidance, 2019
IEA CO2 Emissions from Fuel Combustion
IPCC Guidelines for National Greenhouse Gas Inventories, 2006
The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised
Edition)
The Greenhouse Gas Protocol Agricultural Guidance: Interpreting the Corporate Accounting and
Reporting Standard for the Agricultural Sector
The Greenhouse Gas Protocol: Scope 2 Guidance
The Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Standard
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
103
C6. Emissions data
C6.1
(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons
CO2e?
Reporting year
Gross global Scope 1 emissions (metric tons CO2e)
307,708
Comment
Scope 1 emissions are direct emissions from sources owned or controlled by BAT.
These are emissions associated with use of fuel at facilities under our operational
control and by our vehicle fleet as well as CO2 used for the production of Dry Ice
Expanded Tobacco (DIET). Fuels include both renewable, such as wood fuel, biodiesel
etc., and non-renewable ones, such as natural gas, LPG, diesel, coal etc. Data is
collected from invoices, telematics, fuel cards, meter readings and other documentation
and logged within our EHS Reporting Tool. DEFRA Greenhouse Gas Reporting:
Conversion Factors 2021 are used to convert to CO2e.The set of emissions factors
used for calculations is updated on annual basis.
Scope 1 CO2e emissions decreased by 10.0% compared to the 2021. This was driven
by energy saving projects originated based on Efficiency Assessments
recommendations, as well as from identification of energy losses and prompt actions
upon as part of the Energy Conservation Daily management system in manufacturing
and leaf sites. There have also been many route optimizations, some outsourcing of
distributions’ activities and replacements of vehicles to less carbon-intensive models in
the commercial side of the business. In addition, there was effect of the divestment and
production decrease by 5% at our tobacco and nicotine products making facilities and
by 8% at our green leaf threshing sites.
C6.2
(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.
Row 1
Scope 2, location-based
We are reporting a Scope 2, location-based figure
Scope 2, market-based
We are reporting a Scope 2, market-based figure
Comment
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
104
Scope 2 CO2e emissions include indirect emissions associated with the purchase of
electricity, hot water and steam which is consumed at our locations. Data is collected
from invoices, internal metering and in some instances via our Building Management
System (BMS).
Scope 2 Location-based CO2e emissions are calculated using International Energy
Agency 2021 country specific emission factors. The set of emissions factors used for
calculations is updated on annual basis.
Scope 2 Market-based CO2e emissions are calculated from supplier-specific emissions
factors. To ensure reported Market-based CO2e emissions meet the ‘Good quality
criteria’ as per GHG Protocol Scope 2 Guidance, we specify market-based factors only
when these are supported by contractual instruments. For renewables, electricity
procurement is either unbundled energy attribute certificates (I-RECs, GoOs, RECs,
etc.) or Green electricity products from an energy supplier (supported by energy
attribute certificates or Power Purchase Agreement). Whenever market-based factors
are not available, market-based Scope 2 CO2e emissions are calculated using
International Energy Agency 2021 country specific emission factors, same as in the
Location-based method.
C6.3
(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons
CO2e?
Reporting year
Scope 2, location-based
356,070
Scope 2, market-based (if applicable)
112,764
Comment
In 2022 our Scope 2 CO2e emissions-Location based decreased by 9.4% compared to
2021.This was driven mostly by implementation of energy saving projects as per energy
Efficiency Assessments recommendations, focused on electricity, as well as from the
identification of energy losses and prompt implementation of solutions as part of the
Energy Conservation Daily management system in manufacturing and leaf sites. The
supporting driver is replacing purchased electricity with renewable electricity generated
at owned/operated sites via solar technology (e.g. Pakistan, Uzbekistan). Further factors
are production decrease and divestments in certain geographies.
In 2022, our Scope 2 CO2e emissions–Market Based decreased by 33.8% compared to
2021. This was driven by the same factors as the decrease in Scope 2 CO2e emissions-
Location based as well as additional renewable electricity sourcing in a range of
countries (e.g. Indonesia, US, Vietnam, Korea, Honduras etc).
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
105
C6.4
(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies,
etc.) of Scope 1, Scope 2 or Scope 3 emissions that are within your selected reporting
boundary which are not included in your disclosure?
No
C6.5
(C6.5) Account for your organization’s gross global Scope 3 emissions, disclosing
and explaining any exclusions.
Purchased goods and services
Evaluation status
Relevant, calculated
Emissions in reporting year (metric tons CO2e)
3,703,409
Emissions calculation methodology
Supplier-specific method
Average data method
Spend-based method
Fuel-based method
Distance-based method
Site-specific method
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
46
Please explain
Purchased Goods and Services have been calculated using BAT procurement data
captured across our operations:
Materials: Purchased materials were extracted from the BAT Procurement System, and
materials were allocated into broad categories based on taxonomy. In some instances,
Units of Measure (UoMs) used within the procurement system required alteration to a
standard weight measurement (i.e. kilograms). BAT utilise a library of UoM conversion
factors which is based upon multiple evidence points such as material specifications
and/or item specific weighing. The standard weight was used to allocate emission
factors as follows:
LCAs: specific product LCAs were utilised where available and/or proxy LCAs used
where appropriate.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
106
In the absence of these datasets, the Ecoinvent v3.7.1 database was utilised. If the
Ecoinvent v3.7.1 database did not have the relevant emission factors, we used a
combination approach based upon the different materials used in the product.
Services: Spend data was used to estimate emissions. Two methods were used:
Supplier Specific emission factors: CDP data was used to source supplier specific
Scope 1, 2 and 3
(upstream) reported emissions and annual revenue. Emissions per GBP revenue were
then calculated per supplier and applied to the GBP spend by BAT for the
corresponding supplier. This was applied where supplier specific emissions and revenue
were published.
Average Emissions Intensity: An average emissions intensity of tCO2e per GBP spend
was calculated based on the Supplier Specific emission factors per service category (i.e.
HR, Professional, Facility, Marketing, Production and Technology Services). This
average emission factor was then applied to the remaining spend per service category
that have not already been accounted for.
For further details on our Scope 3 methodology please refer to our Scope 3 Simplified
Methodology available on BAT.com
Due to the complexity of consolidating and verifying Scope 3 data in accordance with
the GHG Protocol, we report one year behind. Therefore, please note that the Scope 3
emissions populated correspond to the reporting year 2021 (Dec-20 to Nov-21). The
2022 reporting period Scope 3 emissions figures are underway.
Capital goods
Evaluation status
Relevant, calculated
Emissions in reporting year (metric tons CO2e)
142,083
Emissions calculation methodology
Spend-based method
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
0
Please explain
Capital Goods expenditure is extracted from Category 1 Purchased Goods and Services
data and includes general production (machinery) and technology (hardware and IT
infrastructure) equipment. Quantis Scope 3 Evaluator emission factors for Food
Beverage and Tobacco and Electrical and Optical Equipment are utilised to convert
spend volumes into emissions.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
107
Due to the complexity of consolidating and verifying Scope 3 data in accordance with
the GHG Protocol, we report one year behind. Therefore, please note that the Scope 3
emissions populated correspond to the reporting year 2021 (Dec-20 to Nov-21). The
2022 reporting period Scope 3 emissions figures are underway.
Fuel-and-energy-related activities (not included in Scope 1 or 2)
Evaluation status
Relevant, calculated
Emissions in reporting year (metric tons CO2e)
188,050
Emissions calculation methodology
Average data method
Site-specific method
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
0
Please explain
Fuel and energy related data is recorded within our EHS Reporting Tool and includes
purchased fuels (coal, bioethanol, fuel oil, natural gas, petrol, wood logs, CNG, diesel,
biodiesel, LPG), electricity, heat (hot water) and steam. The data covers a reporting
period of November 2020 to December 2021. DEFRA 2021 emission factors were
applied to the energy consumption to calculate emissions.
Due to the complexity of consolidating and verifying Scope 3 data in accordance with
the GHG Protocol, we report one year behind. Therefore, please note that the Scope 3
emissions populated correspond to the reporting year 2021 (Dec-20 to Nov-21). The
2022 reporting period Scope 3 emissions figures are underway.
Upstream transportation and distribution
Evaluation status
Relevant, calculated
Emissions in reporting year (metric tons CO2e)
208,240
Emissions calculation methodology
Supplier-specific method
Average data method
Distance-based method
Site-specific method
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
108
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
29
Please explain
Freight movements of in-bound and out-bound finished goods or semi-finished
products/materials owned by BAT, including all modes of transport (i.e. air, road, rail and
sea) fall within this category. BAT calculate movement up until the change of
product/material ownership. Data is either provided direct from suppliers (in CO2e)
based on their emission calculation methodology, or within our EHS Reporting Tool and
converted to emissions using DEFRA 2021 emission factors.
Upstream transport which is undertaken within BAT owned or leased vehicles is
reported within Scope 1 under vehicle fuel.
Due to the complexity of consolidating and verifying Scope 3 data in accordance with
the GHG Protocol, we report one year behind. Therefore, please note that the Scope 3
emissions populated correspond to the reporting year 2021 (Dec-20 to Nov-21). The
2022 reporting period Scope 3 emissions figures are underway.
Waste generated in operations
Evaluation status
Relevant, calculated
Emissions in reporting year (metric tons CO2e)
8,273
Emissions calculation methodology
Waste-type-specific method
Site-specific method
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
0
Please explain
Waste volumes (tonnes) and disposal route (excluding waste incineration onsite which
is captured in Scope 1) are recorded within our EHS Reporting Tool. DEFRA 2021
emission factors were allocated dependent upon disposal route (i.e. landfill, combustion
or recycled).
Due to the complexity of consolidating and verifying Scope 3 data in accordance with
the GHG Protocol, we report one year behind. Therefore, please note that the Scope 3
emissions populated correspond to the reporting year 2021 (Dec-20 to Nov-21). The
2022 reporting period Scope 3 emissions figures are underway.
Business travel
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
109
Evaluation status
Relevant, calculated
Emissions in reporting year (metric tons CO2e)
14,050
Emissions calculation methodology
Supplier-specific method
Average data method
Distance-based method
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
80
Please explain
Business Travel is recorded within our EHS Reporting Tool. For air, data includes
passenger kilometre and class of travel, the data for rail includes passenger km and for
rental vehicles it includes fuel used (litres or kg). DEFRA 2021 emission factors were
allocated.
80% of data is provided by our Tier-1 business travel supplier. The remaining 20% are
captured by the BAT sites through our EHS reporting tool. This is a mix of local
suppliers data gathering and distance times travel modes estimates.
Assumptions: all air travel is assumed to be international and to ensure consistency with
historic reporting, radiative forcing is not included.
Due to the complexity of consolidating and verifying Scope 3 data in accordance with
the GHG Protocol, we report one year behind. Therefore, please note that the Scope 3
emissions populated correspond to the reporting year 2021 (Dec-20 to Nov-21). The
2022 reporting period Scope 3 emissions figures are underway.
Employee commuting
Evaluation status
Relevant, calculated
Emissions in reporting year (metric tons CO2e)
59,088
Emissions calculation methodology
Average data method
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
0
Please explain
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
110
Employee headcount (including direct contractors) and location are recorded within our
EHS Reporting Tool. The average commuting mode (i.e. car, rail, walk, etc) and
distance have been referenced from Numbeo, a source aligned to GHG guidance.
DEFRA 2021 emission factors were allocated against total distances across transport
modes (i.e. return journey for the typical amount of working days per year) to calculate
emissions.
Assumptions: all employees are assumed to commute to their place of work, as
opposed to work from home, and walking and cycling are assumed to have zero
emissions. In total, it was assumed each employee commuted twice a day for 234 days
in 2021. No calculations for homeworking are included.
Due to the complexity of consolidating and verifying Scope 3 data in accordance with
the GHG Protocol, we report one year behind. Therefore, please note that the Scope 3
emissions populated correspond to the reporting year 2021 (Dec-20 to Nov-21). The
2022 reporting period Scope 3 emissions figures are underway.
Upstream leased assets
Evaluation status
Not relevant, explanation provided
Please explain
Emissions from leased assets are included in Scopes 1 & 2.
Downstream transportation and distribution
Evaluation status
Relevant, calculated
Emissions in reporting year (metric tons CO2e)
30,687
Emissions calculation methodology
Average data method
Average product method
Distance-based method
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
0
Please explain
The emissions associated with the transportation of products sent from BAT to retailer,
paid for by a third-party, in addition to customers travelling from retailers having bought
BAT products, are included in this category. Emissions are calculated based on total
weight of products sold by BAT in the reporting period and an average travel distance
for both scenarios to calculate total tonne km for each product type.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
111
Due to the complexity of consolidating and verifying Scope 3 data in accordance with
the GHG Protocol, we report one year behind. Therefore, please note that the Scope 3
emissions populated correspond to the reporting year 2021 (Dec-20 to Nov-21). The
2022 reporting period Scope 3 emissions figures are underway.
Processing of sold products
Evaluation status
Not relevant, explanation provided
Please explain
BAT's products are not processed by third parties.
Use of sold products
Evaluation status
Relevant, calculated
Emissions in reporting year (metric tons CO2e)
661,953
Emissions calculation methodology
Average data method
Average product method
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
0
Please explain
BAT produce a variety of products from cigarettes to New Category products. Specific
product LCAs were utilised where available and/or proxy LCAs were allocated. The
emissions associated with the use of products sold by BAT are defined as follows:
• Tobacco Heating Products / Vapour: emissions associated with charging of devices
throughout a device’s lifetime, and emissions associated with the use of eliquid and
tobacco blend
• Tobacco Combustion: emissions associated with the combustion of cigarettes
including cigarette paper and tobacco blend
• Lighter Fuel: emissions associated with the use of lighter fuel to light all products sold
in 2021
Assumption: it was assumed that 90% of cigarette paper and tobacco blend are
combusted in cigarettes and similar products. The remaining 10% and the filter tow
component of the product are assessed in Category 12 End of Life Treatment.
Due to the complexity of consolidating and verifying Scope 3 data in accordance with
the GHG Protocol, we report one year behind. Therefore, please note that the Scope 3
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
112
emissions populated correspond to the reporting year 2021 (Dec-20 to Nov-21). The
2022 reporting period Scope 3 emissions figures are underway.
End of life treatment of sold products
Evaluation status
Relevant, calculated
Emissions in reporting year (metric tons CO2e)
226,589
Emissions calculation methodology
Average data method
Average product method
Waste-type-specific method
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
0
Please explain
End of Life emissions accounts for the disposal of final products and associated
packaging used for sale and transportation of BAT products. LCAs, where available,
and/or proxy LCAs, were used to understand the split of different disposal routes for
different material types of BAT products. The disposal route splits were then adjusted to
reflect the end market in which products were sold, using recycling research BAT
undertook into its 20 key markets as part of a Waste Footprint mapping exercise.
Assumptions: A Waste Footprint exercise, using market-specific recycling research
allowed for a market specific emission factor to be attributed to those top 20 markets.
Where market-specific information was not available, global average emission factors
were taken. Recycling rates provided through the Waste Footprint exercise were also
halved to consider consumer behaviour.
Due to the complexity of consolidating and verifying Scope 3 data in accordance with
the GHG Protocol, we report one year behind. Therefore, please note that the Scope 3
emissions populated correspond to the reporting year 2021 (Dec-20 to Nov-21). The
2022 reporting period Scope 3 emissions figures are underway.
Downstream leased assets
Evaluation status
Not relevant, explanation provided
Please explain
BAT does not lease assets to third parties.
Franchises
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
113
Evaluation status
Relevant, calculated
Emissions in reporting year (metric tons CO2e)
1,009
Emissions calculation methodology
Average data method
Site-specific method
Percentage of emissions calculated using data obtained from suppliers or
value chain partners
0
Please explain
BAT have a franchise agreement for NC stores in the EU, for which emissions from
electricity, gasoil and natural gas are estimated using Real Estate Environmental
Benchmark data and IEA 2021 and DEFRA 2021 emission factors.
Due to the complexity of consolidating and verifying Scope 3 data in accordance with
the GHG Protocol, we report one year behind. Therefore, please note that the Scope 3
emissions populated correspond to the reporting year 2021 (Dec-20 to Nov-21). The
2022 reporting period Scope 3 emissions figures are underway.
Investments
Evaluation status
Not relevant, explanation provided
Please explain
BAT does not have equity or debt investments.
Other (upstream)
Evaluation status
Not relevant, explanation provided
Please explain
Scope 3 emissions assessment performed by BAT with support of external sustainability
consultant identified no other upstream activities, emission from which would be
relevant.
Other (downstream)
Evaluation status
Not relevant, explanation provided
Please explain
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
114
Scope 3 emissions assessment performed by BAT with support of external sustainability
consultant identified no other downstream activities, emission from which would be
relevant.
C-AC6.8/C-FB6.8/C-PF6.8
(C-AC6.8/C-FB6.8/C-PF6.8) Is biogenic carbon pertaining to your direct operations
relevant to your current CDP climate change disclosure?
Yes
C-AC6.8a/C-FB6.8a/C-PF6.8a
(C-AC6.8a/C-FB6.8a/C-PF6.8a) Account for biogenic carbon data pertaining to your
direct operations and identify any exclusions.
CO2 emissions from biofuel combustion (processing/manufacturing machinery)
Emissions (metric tons CO2)
34,092
Methodology
Default emissions factors
Please explain
These are emissions from biofuels (e.g. wood fuel, biodiesel) used by our sites for on-
site generation of steam, heat and electricity. Emissions are calculated based on
amounts of fuels used reported by our units across the Group via our environmental
reporting system and DEFRA 2021 factors for biofuels, outside of scopes.
CO2 emissions from biofuel combustion (other)
Emissions (metric tons CO2)
4,448
Methodology
Default emissions factors
Please explain
These are emissions from biofuels (e.g. biodiesel, bioethanol) used by our fleet vehicles
used in distribution, marketing and other activities. Emissions are calculated based on
amounts of fuels used reported by our units across the Group via our environmental
reporting system and DEFRA 2021 factors for biofuels, outside of scopes.
C-AC6.9/C-FB6.9/C-PF6.9
(C-AC6.9/C-FB6.9/C-PF6.9) Do you collect or calculate greenhouse gas emissions for
each commodity reported as significant to your business in C-AC0.7/FB0.7/PF0.7?
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
115
Agricultural commodities
Tobacco
Do you collect or calculate GHG emissions for this commodity?
Yes
Reporting emissions by
Total
Emissions (metric tons CO2e)
1,599,910
Denominator: unit of production
Change from last reporting year
Lower
Please explain
BAT don't own any tobacco farms; thus, we have no Scope 1 and 2 emissions
associated with production of tobacco leaf as agricultural commodity. A Scope 3
assessment was performed in 2021, thus we have calculated emissions from Tobacco
as an agricultural commodity within our Scope 3 (cat 1). These are emissions
associated with Purchased tobacco leaf for both combustibles and PRRP products,
including biogenic emissions and removals. Scope 3 assessment for 2022 is under way.
Our historical CDP responses to question C-AC6.9/C-FB6.9/C-PF6.9 state the
reportable emissions related to agricultural commodity - tobacco excluding biogenic
emissions and removals. However, the tobacco curing process is one of the biggest
contributors to biogenic emissions throughout our leaf value chain. Therefore, the figure
of 1,599,910 tCO2e reported for 2021 is including biogenic emissions and removals
within our upstream tobacco value chain. In 2020 the figure related to agricultural
commodity - tobacco was 1,968,601 tCO2e including biogenic emissions and removals
within our upstream tobacco value chain. In relation to the total emissions of 2021
compared to those of 2020, we had a reduction that occurred due to the change in the
volume of tobacco purchased in different countries, which have a lower emission factor,
in addition to contributions from a more efficient curing processes.
Explain why you do not calculate GHG emission for this commodity and your
plans to do so in the future
C6.10
(C6.10) Describe your gross global combined Scope 1 and 2 emissions for the
reporting year in metric tons CO2e per unit currency total revenue and provide any
additional intensity metrics that are appropriate to your business operations.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
116
Intensity figure
0.0000152
Metric numerator (Gross global combined Scope 1 and 2 emissions, metric
tons CO2e)
420,472
Metric denominator
unit total revenue
Metric denominator: Unit total
27,654,776,658
Scope 2 figure used
Market-based
% change from previous year
21.2
Direction of change
Decreased
Reason(s) for change
Change in renewable energy consumption
Other emissions reduction activities
Divestment
Change in output
Change in revenue
Please explain
Decrease by 21.2% vs 0.0000193 in 2021. Decrease is driven by decrease in combined
Scope 1 and 2 (Market-based) emissions by 15.1% vs 2021, which was driven by
emissions reduction activities as reported in CC6.3, while revenue increased by 7.7%
vs 2021)
C7. Emissions breakdowns
C7.1
(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas
type?
Yes
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
117
C7.1a
(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas
type and provide the source of each used greenhouse warming potential (GWP).
Greenhouse
gas
Scope 1 emissions (metric tons of
CO2e)
GWP Reference
CO2
304,647
IPCC Fourth Assessment Report (AR4 -
100 year)
CH4
1,181
IPCC Fourth Assessment Report (AR4 -
100 year)
N2O
1,880
IPCC Fourth Assessment Report (AR4 -
100 year)
C7.2
(C7.2) Break down your total gross global Scope 1 emissions by country/area/region.
Country/area/region
Scope 1
emissions (metric
tons CO2e)
Algeria
871
Argentina
2,237
Bangladesh
17,743
Belarus
1,362
Brazil
9,162
Canada
2,681
Chile
5,870
Croatia
6,471
Germany
10,923
Honduras
1,462
Hungary
1,410
Indonesia
6,340
Italy
1,317
Japan
1,030
Jordan
47
Kenya
4,461
Malaysia
1,030
Mexico
11,151
Mozambique
311
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
118
Netherlands
1,057
Nigeria
21,280
Sudan
1,515
Pakistan
10,233
Papua New Guinea
1,718
Poland
13,395
Romania
8,580
Russian Federation
13,602
Serbia
1,460
Singapore
771
South Africa
10,803
Republic of Korea
4,054
Sri Lanka
1,594
Sweden
320
Switzerland
1,752
Turkey
17,224
United Kingdom of Great Britain and Northern Ireland
2,376
Ukraine
2,974
Uzbekistan
4,986
Venezuela (Bolivarian Republic of)
2,752
Viet Nam
706
United States of America
81,664
Colombia
604
Bosnia & Herzegovina
651
Samoa
112
Zambia
451
Zimbabwe
884
Australia
450
Fiji
1,419
France
700
Kazakhstan
630
Czechia
737
Saudi Arabia
1,720
Trinidad and Tobago
1,187
Spain
663
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
119
Paraguay
17
United Arab Emirates
50
Other, please specify
Other countries with small business, not material in terms of total emissions.
There are BAT units in 30 countries, that in total give less than 3.7% of total
Scope 1 and 2 Market-based emissions (less than 2.2% of Scope 1
emissions).
6,378
C7.3
(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able to
provide.
By activity
C7.3c
(C7.3c) Break down your total gross global Scope 1 emissions by business activity.
Activity
Scope 1 emissions (metric tons CO2e)
Manufacturing and Processing
215,887
Offices, Warehouses, Retail
8,230
Vehicle Fleet
83,591
C-AC7.4/C-FB7.4/C-PF7.4
(C-AC7.4/C-FB7.4/C-PF7.4) Do you include emissions pertaining to your business
activity(ies) in your direct operations as part of your global gross Scope 1 figure?
Yes
C-AC7.4b/C-FB7.4b/C-PF7.4b
(C-AC7.4b/C-FB7.4b/C-PF7.4b) Report the Scope 1 emissions pertaining to your
business activity(ies) and explain any exclusions. If applicable, disaggregate your
agricultural/forestry by GHG emissions category.
Activity
Processing/Manufacturing
Emissions (metric tons CO2e)
215,887
Methodology
Default emissions factor
Please explain
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
120
These are our Scope 1 emissions from tobacco processing at green leaf threshing
plants and manufacturing cigarettes, other tobacco products and New Categories’
Products etc. at our factories. In 2022 these decreased by 6% vs 2021 due to decrease
in production and energy efficiency activities. The emissions are calculated from 1/
various types of fuels used on site (e.g. natural gas, diesel, heavy fuel etc.) with
application of DEFRA 2021 emissions factors and 2/ Direct input of CO2 input DIET
(dried ice expanded tobacco) process.
Activity
Distribution
Emissions (metric tons CO2e)
72,580
Methodology
Default emissions factor
Please explain
These are our Scope 1 emissions from Trade Marketing & Distribution vehicles. In 2022
these decreased by 5% vs 2021. The decrease is driven by change of route to market
model implying reduction of distribution fleet in certain geographies, fuel saving
programs as well as gradual shift to hybrid and electric vehicles across the Group.
Emissions form these vehicles constitute 87% of emissions from all vehicles by BAT.
The emissions are calculated from various types of fuels used by fleet vehicles (e.g.
petrol, diesel, LPG). DEFRA 2021 emissions factors set is applied for calculations.
C7.5
(C7.5) Break down your total gross global Scope 2 emissions by country/area/region.
Country/area/region
Scope 2,
location-based
(metric tons
CO2e)
Scope 2,
market-based
(metric tons
CO2e)
United States of America
94,867
10,567
Brazil
9,229
0
Turkey
5,993
0
Russian Federation
16,450
376
Poland
32,149
666
Bangladesh
27,235
27,235
Indonesia
15,884
76
Nigeria
738
738
Mexico
14,046
0
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
121
South Africa
17,906
3,134
Romania
14,481
1,054
Pakistan
10,277
9,685
Republic of Korea
18,851
16,727
Germany
2,887
0
Croatia
3,432
92
United Kingdom of Great Britain and Northern Ireland
3,191
10
Chile
6,198
0
Uzbekistan
6,155
6,155
Ukraine
4,130
4,130
Kenya
962
962
Hungary
3,614
795
Singapore
4,745
4,745
Venezuela (Bolivarian Republic of)
3,405
3,405
Argentina
2,743
301
Switzerland
163
0
Honduras
1,460
247
Netherlands
1,530
82
Canada
593
0
Serbia
2,835
115
Viet Nam
3,701
562
Sri Lanka
2,959
0
Trinidad and Tobago
3,044
3,044
Japan
195
0
Algeria
1,344
1,344
Malaysia
1,135
815
Sweden
57
5
Papua New Guinea
308
308
Belarus
65
65
Italy
204
0
Sudan
1,452
1,452
Colombia
109
9
Australia
506
38
Bosnia & Herzegovina
2,070
2,070
Mozambique
34
34
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
122
Jordan
772
0
Samoa
95
95
Zimbabwe
1,126
1,126
Zambia
361
361
Fiji
731
731
France
10
10
Kazakhstan
94
94
Czechia
28
28
Saudi Arabia
838
838
Spain
19
16
United Arab Emirates
240
0
Paraguay
0
0
Other, please specify
Other countries with small business, not material in terms of
total emissions. There are BAT units in 30 countries, that in
total give less than 3.7% of total Scope 1 and 2 Market-based
emissions (less than 2.4% of Scope 2 market - based
emissions).
8,423
8,423
C7.6
(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able to
provide.
By activity
C7.6c
(C7.6c) Break down your total gross global Scope 2 emissions by business activity.
Activity
Scope 2, location-based (metric
tons CO2e)
Scope 2, market-based (metric
tons CO2e)
Manufacturing and
Processing
319,805
87,301
Offices, Warehouses,
Retail
36,206
25,404
Vehicle Fleet
59
59
C7.7
(C7.7) Is your organization able to break down your emissions data for any of the
subsidiaries included in your CDP response?
No
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
123
C7.9
(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for the
reporting year compare to those of the previous reporting year?
Decreased
C7.9a
(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1
and 2 combined), and for each of them specify how your emissions compare to the
previous year.
Change in
emissions
(metric tons
CO2e)
Direction of
change in
emissions
Emissions
value
(percentage)
Please explain calculation
Change in
renewable
energy
consumption
43,130
Decreased
8.71
Change is driven by: decrease from
emissions due to additional renewable
electricity purchases (e.g. Indonesia,
US, Vietnam, Korea, Honduras etc.)
and more on-site renewable electricity
generation with solar panels incl. newly
and expanded installations in 6
countries (e.g. Pakistan, Uzbekistan,).
This allowed to reduce emissions by
43,130 tCO2e. - (43,130/495,407)
*100% = -8.71%
Other
emissions
reduction
activities
15,011
Decreased
3.03
Change is driven by: decrease from
emissions due to a wide range of
energy efficiency projects in building
and process improvements at our
operation sites . This allowed to reduce
emissions by 15,011 tCO2e. -
(15,011/495,407) *100% = -3.03%
Divestment
8,415
Decreased
1.7
Change is driven by divestment of
facilities in Indonesia and Myanmar,
discontinuation of operations in Iran as
well as closure of a few other smaller
businesses. The above divestments
occurred in 2021 reporting year, which
means the business were operational
for part of 2021 and non-operational in
2022. Further, in 2022 we divested our
facility in US (Santa Fe Natural
Tobacco company), as reflected in
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
124
question 5.1a. Yet, this divestment had
smaller effect on year-on-year
emissions variances. This resulted in
emissions decrease by 8,415 tCO2e. -
(8,415/ 495 407) *100% = - 1.70%
Acquisitions
0
No change
0
No acquisitions in the reporting period.
Mergers
0
No change
0
No mergers in the reporting period.
Change in
output
9,907
Decreased
2
With the exclusion of closed sites,
production of finished goods (e.g.
cigarettes, snus, modern oral etc.) and
semi-finished goods (e.g. threshed
tobacco leaf, DIET) in BAT decreased
by 3.00% in 2022 vs 2021. This
resulted in decrease of emissions by
9,907 tCO2e. -(9,907/ 495,407) * 100%
= -2.00%
Change in
methodology
0
No change
0
No change in methodology in the
reporting period.
Change in
boundary
0
No change
0
No material change in boundary in the
reporting period.
Change in
physical
operating
conditions
0
No change
0
No material change in physical
operating conditions in the reporting
period.
Unidentified
0
No change
0
No unidentified drivers of change in the
reporting period.
Other
1,528
Increased
0.31
Changes in Sales & Distribution
models, leading to expansion of vehicle
fleet in some geographies e.g. Saudi
Arabia and intensification of trade
marketing activities in a few others. This
resulted in an increase of emissions by
1,528 tCO2e. (1,528/ 495,407) * 100%
= 0.31%
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
125
C7.9b
(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on a
location-based Scope 2 emissions figure or a market-based Scope 2 emissions
figure?
Market-based
C8. Energy
C8.1
(C8.1) What percentage of your total operational spend in the reporting year was on
energy?
More than 0% but less than or equal to 5%
C8.2
(C8.2) Select which energy-related activities your organization has undertaken.
Indicate whether your organization undertook this energy-
related activity in the reporting year
Consumption of fuel (excluding
feedstocks)
Yes
Consumption of purchased or
acquired electricity
Yes
Consumption of purchased or
acquired heat
Yes
Consumption of purchased or
acquired steam
Yes
Consumption of purchased or
acquired cooling
No
Generation of electricity, heat,
steam, or cooling
Yes
C8.2a
(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks)
in MWh.
Heating
value
MWh from
renewable
sources
MWh from non-
renewable
sources
Total (renewable
and non-renewable)
MWh
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
126
Consumption of fuel
(excluding feedstock)
LHV (lower
heating
value)
109,580
1,316,469
1,426,049
Consumption of
purchased or acquired
electricity
646,615
254,750
901,365
Consumption of
purchased or acquired
heat
2,418
242
2,660
Consumption of
purchased or acquired
steam
3,135
2,129
5,264
Consumption of self-
generated non-fuel
renewable energy
8,907
8,907
Total energy
consumption
770,655
1,573,590
2,344,245
C8.2b
(C8.2b) Select the applications of your organization’s consumption of fuel.
Indicate whether your organization undertakes this
fuel application
Consumption of fuel for the generation of
electricity
Yes
Consumption of fuel for the generation of
heat
Yes
Consumption of fuel for the generation of
steam
Yes
Consumption of fuel for the generation of
cooling
No
Consumption of fuel for co-generation or
tri-generation
Yes
C8.2c
(C8.2c) State how much fuel in MWh your organization has consumed (excluding
feedstocks) by fuel type.
Sustainable biomass
Heating value
LHV
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
127
Total fuel MWh consumed by the organization
109,446
MWh fuel consumed for self-generation of electricity
52
MWh fuel consumed for self-generation of heat
14,000
MWh fuel consumed for self-generation of steam
95,394
MWh fuel consumed for self- cogeneration or self-trigeneration
0
Comment
Sustainable fuels that we use comprise biodiesel, bio gasoline, wood fuel (e.g. wood
chips, wood pellets) and other biomass fuels such as paddy husk. Bio gasoline and
biodiesel are used mostly in our fleet vehicles, to a large extent in South America (e.g.
Brazil). Minor amount of biodiesel is consumed by manufacturing facilities. Wood fuel is
mostly consumed by our factory and green leaf threshing plants (GLTs) in Brazil for
steam and cooling generation. Minor amount is consumed in our warehousing facilities
in Switzerland and Poland for heat generation. Minor amount of other biomass fuels is
used in Sri Lanka for leaf curing that is done on site.
Other biomass
Heating value
LHV
Total fuel MWh consumed by the organization
0
MWh fuel consumed for self-generation of electricity
0
MWh fuel consumed for self-generation of heat
0
MWh fuel consumed for self-generation of steam
0
MWh fuel consumed for self- cogeneration or self-trigeneration
0
Comment
We don't use biomass fuels that are not sustainable. Biomass fuels that we source are
in most cases certified (e.g. wood fuel used in Switzerland). Whenever fuel certification
schemes are absent, we ensure that biofuel is waste or by-product of agricultural
process (e.g. rice husk used on Sri Lanka) or a commercial wood fuel sourced in line
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
128
with applicable legal requirements, incl. those addressing deforestation and conversion
prevention (e.g. wood fuel used in Brazil).
Other renewable fuels (e.g. renewable hydrogen)
Heating value
LHV
Total fuel MWh consumed by the organization
135
MWh fuel consumed for self-generation of electricity
0
MWh fuel consumed for self-generation of heat
135
MWh fuel consumed for self-generation of steam
0
MWh fuel consumed for self- cogeneration or self-trigeneration
0
Comment
This is certified biogas used by one of our facilities in Sweden.
Coal
Heating value
LHV
Total fuel MWh consumed by the organization
14,591
MWh fuel consumed for self-generation of electricity
0
MWh fuel consumed for self-generation of heat
77
MWh fuel consumed for self-generation of steam
14,514
MWh fuel consumed for self- cogeneration or self-trigeneration
0
Comment
Coal is used for on-site energy generation (steam, heat) by some of our facilities (e.g.
South Africa, Zimbabwe).
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
129
Oil
Heating value
LHV
Total fuel MWh consumed by the organization
466,994
MWh fuel consumed for self-generation of electricity
62,293
MWh fuel consumed for self-generation of heat
337,565
MWh fuel consumed for self-generation of steam
67,136
MWh fuel consumed for self- cogeneration or self-trigeneration
0
Comment
Oil-type fuels comprise petrol, diesel oil, heavy fuel oil and light fuel oil. Diesel is widely
used across BAT geography of operations by both fleet vehicles and on-site generators.
Petrol is used by Fleet vehicles in a wide range of geographies. Heavy fuel is used for
generation of energy in different forms on site at a few factories and green leaf threshing
plants (GLTs), while light fuel oil is used for heating at a minor number of our facilities.
Gas
Heating value
LHV
Total fuel MWh consumed by the organization
834,883
MWh fuel consumed for self-generation of electricity
0
MWh fuel consumed for self-generation of heat
217,996
MWh fuel consumed for self-generation of steam
451,560
MWh fuel consumed for self- cogeneration or self-trigeneration
165,327
Comment
Gas-type fuels comprise Natural gas as well as forms thereof, such as CNG and LPG.
Natural gas is widely used across BAT geography for on-site generation of energy in the
form of steam and heat. On top, it is used for tri-generation (e.g. our facility in Turkey).
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
130
CNG is used by industrial vehicles on site (e.g. forklift trucks) and fleet vehicles as well
as in boilers. LPG is used by Fleet vehicles, industrial vehicles on site (e.g. forklift
trucks) and in on-site canteens.
Other non-renewable fuels (e.g. non-renewable hydrogen)
Heating value
LHV
Total fuel MWh consumed by the organization
0
MWh fuel consumed for self-generation of electricity
0
MWh fuel consumed for self-generation of heat
0
MWh fuel consumed for self-generation of steam
0
MWh fuel consumed for self- cogeneration or self-trigeneration
0
Comment
Non other non-renewable fuels that cannot be classified as oil, gas or coal are currently
used by our sites. Non-renewable hydrogen is not used.
Total fuel
Heating value
LHV
Total fuel MWh consumed by the organization
1,426,049
MWh fuel consumed for self-generation of electricity
62,345
MWh fuel consumed for self-generation of heat
569,773
MWh fuel consumed for self-generation of steam
628,604
MWh fuel consumed for self- cogeneration or self-trigeneration
165,327
Comment
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
131
Over 99.8% of fuel that is used for energy generation at our sites is consumed within our
organization. The only facility selling energy is our factory in Croatia, which supplies
steam and minor amount of heat to 3rd party located in the immediate vicinity.
C8.2d
(C8.2d) Provide details on the electricity, heat, steam, and cooling your organization
has generated and consumed in the reporting year.
Total Gross
generation
(MWh)
Generation that is
consumed by the
organization (MWh)
Gross generation
from renewable
sources (MWh)
Generation from
renewable sources that is
consumed by the
organization (MWh)
Electricity
70,269
70,269
7,976
7,976
Heat
569,938
569,938
14,300
14,300
Steam
628,604
628,001
95,394
95,394
Cooling
0
0
0
0
C8.2e
(C8.2e) Provide details on the electricity, heat, steam, and/or cooling amounts that
were accounted for at a zero or near-zero emission factor in the market-based Scope
2 figure reported in C6.3.
Country/area of low-carbon energy consumption
Republic of Korea
Sourcing method
Purchase from an on-site installation owned by a third party (on-site PPA)
Energy carrier
Electricity
Low-carbon technology type
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
107
Tracking instrument used
Contract
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Republic of Korea
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
132
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2022
Comment
Our factory in Korea concluded a contract with 3rd party for placement and operating a
solar installation at factory's premises. The installation became operational in 2022,
generated electricity is supplied directly to the factory. The factory covered 11% of its
electricity consumed in 2022 by renewable attributes. Electricity purchased from an on-
site installation owned by a third party contributes to 3% of total renewable electricity
purchased.
Country/area of low-carbon energy consumption
Indonesia
Sourcing method
Purchase from an on-site installation owned by a third party (on-site PPA)
Energy carrier
Electricity
Low-carbon technology type
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
1,490
Tracking instrument used
Contract
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Indonesia
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2021
Comment
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
133
Our factory in Indonesia concluded a contract with 3rd party for placement and
operating a solar installation at factory's premises. The installation became operational
in September 2021, generated electricity is supplied directly to the factory. The factory
covered 100% of its electricity consumed in 2022 by renewable attributes. Electricity
purchased from an on-site installation owned by a third party contributes to 7% of total
renewable electricity purchased.
Country/area of low-carbon energy consumption
Viet Nam
Sourcing method
Purchase from an on-site installation owned by a third party (on-site PPA)
Energy carrier
Electricity
Low-carbon technology type
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
818
Tracking instrument used
Contract
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Viet Nam
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2022
Comment
Our factory in Vietnam concluded a contract with 3rd party for placement and operating
a solar installation at factory's premises. The installation became operational in 2022,
generated electricity is supplied directly to the factory. The factory covered 100% of its
electricity consumed in 2022 by renewable attributes. Electricity purchased from an on-
site installation owned by a third party contributes to 17% of total renewable electricity
purchased in Vietnam for our factory and offices.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
134
Country/area of low-carbon energy consumption
Paraguay
Sourcing method
Default delivered electricity from the grid (e.g. standard product offering by an energy
supplier) from a grid that is 95% or more low-carbon and where there is no mechanism
for specifically allocating low-carbon electricity
Energy carrier
Electricity
Low-carbon technology type
Renewable energy mix, please specify
Default country energy mix >95% renewable content
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
176
Tracking instrument used
Contract
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Paraguay
Are you able to report the commissioning or re-powering year of the energy
generation facility?
No
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
Comment
Our offices are located in Paraguay, which is a country with default grid mix of low-
carbon electricity is over 95% and no mechanism for actively sourcing low-carbon
electricity from the grid (i.e. energy attribute certificates or another attribute tracking
system) - as per CDP definitions.
Country/area of low-carbon energy consumption
Republic of Korea
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
135
Low-carbon technology type
Wind
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
2,939
Tracking instrument used
Korean REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Republic of Korea
Are you able to report the commissioning or re-powering year of the energy
generation facility?
No
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
Comment
Our factory in Korea covered 11% of its electricity consumed in 2022 by renewable
attributes. 97% of renewable electricity purchased is covered by Korean RECs (72% -
from wind technology, 25% - from solar technology) the rest 3% is from an on-site
installation owned by a third party. Across BAT Procurement departments of respective
sites hold contracts with utilities or suppliers of such electricity. The copies of
corresponding certificates and/or other contractual documents for the reporting units
claiming to purchase low carbon electricity are collected via our on-line environmental
reporting system.
Country/area of low-carbon energy consumption
Republic of Korea
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
1,059
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
136
Tracking instrument used
Korean REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Republic of Korea
Are you able to report the commissioning or re-powering year of the energy
generation facility?
No
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
Comment
Our factory in Korea covered 11% of its electricity consumed in 2022 by renewable
attributes. 97% of renewable electricity purchased is covered by Korean RECs (72% -
from wind technology, 25% - from solar technology) the rest 3% is from an on-site
installation owned by a third party. Across BAT Procurement departments of respective
sites hold contracts with utilities or suppliers of such electricity. The copies of
corresponding certificates and/or other contractual documents for the reporting units
claiming to purchase low carbon electricity are collected via our on-line environmental
reporting system.
Country/area of low-carbon energy consumption
Indonesia
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Geothermal
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
19,140
Tracking instrument used
TIGR
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Indonesia
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
137
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
1987
Comment
Our factory in Indonesia covered 100% of its electricity consumed in 2022 by renewable
attributes. 93% of renewable electricity purchased is covered by TIGRs from geothermal
technology, the rest 7% is from an on-site installation owned by a third party. Across
BAT Procurement departments of respective sites hold contracts with utilities or
suppliers of such electricity. The facility started with partial renewable electricity sourcing
from an on-site installation owned by a third party and achieved 100% in 2022 by
attribution through TIGRs. The copies of corresponding certificates and/or other
contractual documents for the reporting units claiming to purchase low carbon electricity
are collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Viet Nam
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Small hydropower (<25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
786
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Viet Nam
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
138
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2015
Comment
Our factory and offices in Vietnam covered 100% of its electricity consumed in 2022 by
renewable attributes. 83% of renewable electricity purchased is covered by I-RECs
(76% - from 2 generators using small hydro technology, 7% - from one generator using
large hydro technology), the rest 17% is from an on-site installation owned by a third
party. Across BAT Procurement departments of respective sites hold contracts with
utilities or suppliers of such electricity. The copies of corresponding certificates and/or
other contractual documents for the reporting units claiming to purchase low carbon
electricity are collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Viet Nam
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Large hydropower (>25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
350
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Viet Nam
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2014
Comment
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
139
Our factory and offices in Vietnam covered 100% of its electricity consumed in 2022 by
renewable attributes. 83% of renewable electricity purchased is covered by I-RECs
(76% - from 2 generators using small hydro technology, 7% - from one generator using
large hydro technology), the rest 17% is from an on-site installation owned by a third
party. Across BAT Procurement departments of respective sites hold contracts with
utilities or suppliers of such electricity. The copies of corresponding certificates and/or
other contractual documents for the reporting units claiming to purchase low carbon
electricity are collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Viet Nam
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Small hydropower (<25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
2,867
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Viet Nam
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2010
Comment
Our factory and offices in Vietnam covered 100% of its electricity consumed in 2022 by
renewable attributes. 83% of renewable electricity purchased is covered by I-RECs
(76% - from 2 generators using small hydro technology, 7% - from one generator using
large hydro technology), the rest 17% is from an on-site installation owned by a third
party. Across BAT Procurement departments of respective sites hold contracts with
utilities or suppliers of such electricity. The copies of corresponding certificates and/or
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
140
other contractual documents for the reporting units claiming to purchase low carbon
electricity are collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Argentina
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Large hydropower (>25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
8,479
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Argentina
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
1972
Comment
Our factory in Argentina covered 100% of its electricity consumed in 2022 by I-RECs.
Respective renewable electricity was generated by large hydro technology. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Australia
Sourcing method
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
141
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
Low-carbon technology type
Renewable energy mix, please specify
Solar, Hydro
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
682
Tracking instrument used
Contract
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Australia
Are you able to report the commissioning or re-powering year of the energy
generation facility?
No
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
Comment
Our organization in Australia comprising Head offices and several other offices across
the country covered 93% of its electricity consumed in 2022 by renewable electricity
attributes. Respective renewable electricity was supplied under 'green tariff' contact and
is generated from different technologies, comprising solar and hydro. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Brazil
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
142
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
196
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Brazil
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2018
Comment
Our factory, 2 green leaf threshing plants and R&D centre in Brazil covered 100% of its
electricity consumed in 2022 by I-RECs. Respective renewable electricity was
generated mostly (97%) from Wind technology from several generation facilities. The
rest was generated from hydro (2.7%) and solar (0.3%) technology. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Brazil
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Large hydropower (>25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
2,347
Tracking instrument used
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
143
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Brazil
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2014
Comment
Our factory, 2 green leaf threshing plants and R&D centre in Brazil covered 100% of its
electricity consumed in 2022 by I-RECs. Respective renewable electricity was
generated mostly (97%) from Wind technology from several generation facilities. The
rest was generated from hydro (2.7%) and solar (0.3%) technologies. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Brazil
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Wind
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
46,581
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Brazil
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
144
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2014
Comment
Our factory, 2 green leaf threshing plants and R&D centre in Brazil covered 100% of its
electricity consumed in 2022 by I-RECs. Respective renewable electricity was
generated mostly (97%) from Wind technology from several generation facilities. The
rest was generated from hydro (2.7%) and solar (0.3%) technologies. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Brazil
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Wind
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
4,074
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Brazil
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
145
2018
Comment
Our factory, 2 green leaf threshing plants and R&D centre in Brazil covered 100% of its
electricity consumed in 2022 by I-RECs. Respective renewable electricity was
generated mostly (97%) from Wind technology from several generation facilities. The
rest was generated from hydro (2.7%) and solar (0.3%) technologies. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Brazil
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Wind
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
35,199
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Brazil
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2021
Comment
Our factory, 2 green leaf threshing plants and R&D centre in Brazil covered 100% of
their electricity consumed in 2022 by I-RECs. Respective renewable electricity was
generated mostly (97%) by Wind technology from several generation facilities. The rest
was generated from hydro (2.7%) and solar (0.3%) technologies Across BAT
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
146
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Canada
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Wind
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
4,569
Tracking instrument used
US-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Canada
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2011
Comment
Our organization in Canada comprising Head offices and several other offices and
warehousing facilities across the country covered 100% of its electricity consumed in
2022 by US-RECs. Respective renewable electricity was generated from Wind
technology. The organization started sourcing renewable electricity in 2022. Across
BAT Procurement departments of respective sites hold contracts with utilities or
suppliers of such electricity. The copies of corresponding certificates and/or other
contractual documents for the reporting units claiming to purchase low carbon electricity
are collected via our on-line environmental reporting system.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
147
Country/area of low-carbon energy consumption
Chile
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Large hydropower (>25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
970
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Chile
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
1963
Comment
Our factory in Chile covered 100% of its electricity consumed in 2022 by I-RECs.
Respective renewable electricity was generated by hydro technology at several
generation facilities. Across BAT Procurement departments of respective sites hold
contracts with utilities or suppliers of such electricity. The copies of corresponding
certificates and/or other contractual documents for the reporting units claiming to
purchase low carbon electricity are collected via our on-line environmental reporting
system.
Country/area of low-carbon energy consumption
Chile
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
148
Low-carbon technology type
Large hydropower (>25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
10,387
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Chile
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
1959
Comment
Our factory in Chile covered 100% of its electricity consumed in 2022 by I-RECs.
Respective renewable electricity was generated by hydro technology from several
generation facilities. Across BAT Procurement departments of respective sites hold
contracts with utilities or suppliers of such electricity. The copies of corresponding
certificates and/or other contractual documents for the reporting units claiming to
purchase low carbon electricity are collected via our on-line environmental reporting
system.
Country/area of low-carbon energy consumption
Chile
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
2,616
Tracking instrument used
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
149
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Chile
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2020
Comment
Our green leaf threshing plants, offices and warehousing facilities in Chile covered
100% of their electricity consumed in 2022 by I-RECs. Respective renewable electricity
was generated by solar technology. Across BAT Procurement departments of respective
sites hold contracts with utilities or suppliers of such electricity. The copies of
corresponding certificates and/or other contractual documents for the reporting units
claiming to purchase low carbon electricity are collected via our on-line environmental
reporting system.
Country/area of low-carbon energy consumption
Colombia
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Hydropower (capacity unknown)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
522
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Colombia
Are you able to report the commissioning or re-powering year of the energy
generation facility?
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
150
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
1992
Comment
Our organization in Colombia comprising Head offices and several other offices and
warehousing facilities across the country covered 100% of its electricity consumed in
2022 by I-RECs. Respective renewable electricity was generated from hydro
technology. The organization started sourcing renewable electricity in 2022. Across
BAT Procurement departments of respective sites hold contracts with utilities or
suppliers of such electricity. The copies of corresponding certificates and/or other
contractual documents for the reporting units claiming to purchase low carbon electricity
are collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Croatia
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
Low-carbon technology type
Renewable energy mix, please specify
Solar, Wind, Hydropower
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
14,805
Tracking instrument used
Other, please specify
ZelEn Certificate
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Croatia
Are you able to report the commissioning or re-powering year of the energy
generation facility?
No
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
151
Comment
Our factory in Croatia consumes 100% renewable electricity that is backed-up by ZelEn
certificates and purchased under green tariff. The electricity represents renewable
energy mix and is generated from a number of technologies, including solar, wind and
hydro. Across BAT Procurement departments of respective sites hold contracts with
utilities or suppliers of such electricity. The copies of corresponding certificates and/or
other contractual documents for the reporting units claiming to purchase low carbon
electricity are collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Croatia
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
Low-carbon technology type
Hydropower (capacity unknown)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
3,918
Tracking instrument used
Other, please specify
ZelEn Certificate
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Croatia
Are you able to report the commissioning or re-powering year of the energy
generation facility?
No
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
Comment
Our green leaf threshing plant and several offices across Croatia consume renewable
electricity that is backed-up by ZelEn certificates and purchased under green tariff.
Renewable attributes cover 100% of electricity consumption by green leaf threshing
plant and 5% of electricity consumption by office locations. The electricity is generated
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
152
with Hydro technology. Across BAT Procurement departments of respective sites hold
contracts with utilities or suppliers of such electricity. The copies of corresponding
certificates and/or other contractual documents for the reporting units claiming to
purchase low carbon electricity are collected via our on-line environmental reporting
system.
Country/area of low-carbon energy consumption
Germany
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
Low-carbon technology type
Renewable energy mix, please specify
Solar, Wind, Hydropower
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
8,336
Tracking instrument used
Contract
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Germany
Are you able to report the commissioning or re-powering year of the energy
generation facility?
No
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
Comment
Our factory, retail and several offices across Germany consume 100% renewable
electricity that is sold under green tariff. The electricity represents renewable energy mix
and is generated from a number of technologies, including solar, wind and hydro.
Across BAT Procurement departments of respective sites hold contracts with utilities or
suppliers of such electricity. The copies of corresponding certificates and/or other
contractual documents for the reporting units claiming to purchase low carbon electricity
are collected via our on-line environmental reporting system.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
153
Country/area of low-carbon energy consumption
Honduras
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
3,621
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Honduras
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2015
Comment
Our factory in Honduras covered 100% of its electricity consumed in 2022 by I-RECs.
Respective renewable electricity was generated from solar technology. The factory
started sourcing renewable electricity in 2022. Across BAT Procurement departments of
respective sites hold contracts with utilities or suppliers of such electricity. The copies of
corresponding certificates and/or other contractual documents for the reporting units
claiming to purchase low carbon electricity are collected via our on-line environmental
reporting system.
Country/area of low-carbon energy consumption
Hungary
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
154
Energy carrier
Electricity
Low-carbon technology type
Renewable energy mix, please specify
Hydropower, Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
12,330
Tracking instrument used
Contract
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Czechia
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2001
Comment
Our 3 factories in Hungary making a range of tobacco and modern oral products
consume 100% renewable electricity that is sold under green tariff. The electricity
represents renewable energy mix and is generated from a number of technologies,
including solar and hydro, at several facilities in Czech Republic and Slovakia (2001
Solenicze CZ, 2004 Vyssi Brod CZ, 2011 Kosice SK, 2012 Kamyk and Vltavou CZ).
Across BAT Procurement departments of respective sites hold contracts with utilities or
suppliers of such electricity. The copies of corresponding certificates and/or other
contractual documents for the reporting units claiming to purchase low carbon electricity
are collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Italy
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
Low-carbon technology type
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
155
Renewable energy mix, please specify
Solar, Wind, Hydropower
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
714
Tracking instrument used
GO
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Italy
Are you able to report the commissioning or re-powering year of the energy
generation facility?
No
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
Comment
Our offices and warehousing facilities across Italy consume 100% renewable electricity
that is purchased under green tariff. The electricity represents renewable energy mix
and is generated from a number of technologies, including solar, wind and hydro.
Across BAT Procurement departments of respective sites hold contracts with utilities or
suppliers of such electricity. The copies of corresponding certificates and/or other
contractual documents for the reporting units claiming to purchase low carbon electricity
are collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Japan
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Sustainable biomass
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
399
Tracking instrument used
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
156
NFC – Renewable
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Japan
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2004
Comment
Our offices in Japan covered 100% of its electricity consumption in 2022 by renewable
electricity certificates issued under one of the national schemes. Respective renewable
electricity was generated from sustainable biomass. Across BAT Procurement
departments of respective sites hold contracts with utilities or suppliers of such
electricity. The copies of corresponding certificates and/or other contractual documents
for the reporting units claiming to purchase low carbon electricity are collected via our
on-line environmental reporting system.
Country/area of low-carbon energy consumption
Jordan
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
1,838
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Jordan
Are you able to report the commissioning or re-powering year of the energy
generation facility?
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
157
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2018
Comment
Our factory and offices in Jordan covered 100% of the electricity consumed in 2022 by I-
RECs. Respective renewable electricity was generated by solar technology. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Malaysia
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Large hydropower (>25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
480
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Malaysia
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2014
Comment
Our head office in Malaysia covered part of its electricity consumed in 2022 with I-RECs.
Respective renewable electricity was generated by Hydro technology. Across BAT
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
158
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Mexico
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
3,502
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Mexico
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2022
Comment
Our head offices and several offices and warehousing facilities across Mexico covered
100% of electricity consumed in 2022 by I-RECs. Respective renewable electricity was
generated with solar technology. Across BAT Procurement departments of respective
sites hold contracts with utilities or suppliers of such electricity. The copies of
corresponding certificates and/or other contractual documents for the reporting units
claiming to purchase low carbon electricity are collected via our on-line environmental
reporting system.
Country/area of low-carbon energy consumption
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
159
Mexico
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
31,754
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Mexico
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2020
Comment
Our factory and green leaf threshing plant in Mexico covered 100% of electricity
consumed in 2022 by I-RECs. Respective renewable electricity was generated with
solar technology. Across BAT Procurement departments of respective sites hold
contracts with utilities or suppliers of such electricity. The copies of corresponding
certificates and/or other contractual documents for the reporting units claiming to
purchase low carbon electricity are collected via our on-line environmental reporting
system.
Country/area of low-carbon energy consumption
Netherlands
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
160
Low-carbon technology type
Wind
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
3,919
Tracking instrument used
GO
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Netherlands
Are you able to report the commissioning or re-powering year of the energy
generation facility?
No
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
Comment
Our factory and offices in the Netherlands consume renewable electricity generated with
wind technology to cover 100% of electricity needs in 2022. Across BAT Procurement
departments of respective sites hold contracts with utilities or suppliers of such
electricity. The copies of corresponding certificates and/or other contractual documents
for the reporting units claiming to purchase low carbon electricity are collected via our
on-line environmental reporting system.
Country/area of low-carbon energy consumption
Pakistan
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
1,687
Tracking instrument used
I-REC
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
161
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Pakistan
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2019
Comment
Our facility in Pakistan producing modern oral across covered its electricity consumed in
2022 by I-RECs. Respective renewable electricity was generated with solar technology.
The facility commenced renewable electricity sourcing from 2022 reporting year. Across
BAT Procurement departments of respective sites hold contracts with utilities or
suppliers of such electricity. The copies of corresponding certificates and/or other
contractual documents for the reporting units claiming to purchase low carbon electricity
are collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Poland
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
Low-carbon technology type
Wind
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
47,137
Tracking instrument used
GO
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Poland
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
162
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2010
Comment
Our 2 factories in Poland consume 100% renewable electricity that is purchased under
green tariff. The electricity is generated using wind technology at several facilities across
Poland (Chotów - 2010, Gostyczyna - 2012, Broniewek - 2014, Staniew, Nasiegniewo,
Wojnowice - 2015, Kłoda, Zabłocie, Żukowice - 2020). Across BAT Procurement
departments of respective sites hold contracts with utilities or suppliers of such
electricity. The copies of corresponding certificates and/or other contractual documents
for the reporting units claiming to purchase low carbon electricity are collected via our
on-line environmental reporting system. multiple windmill onshore power plants.
Country/area of low-carbon energy consumption
Romania
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
Low-carbon technology type
Renewable energy mix, please specify
Solar, Wind, Hydropower, Thermal, Biomass
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
38,895
Tracking instrument used
GO
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Romania
Are you able to report the commissioning or re-powering year of the energy
generation facility?
No
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
Comment
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
163
Our factory in Romania consumes 100% renewable electricity that is purchased under
green tariff. The electricity represents renewable energy mix and is generated from a
number of technologies, including solar, wind, hydro and biomass at several facilities in
Romania. Across BAT Procurement departments of respective sites hold contracts with
utilities or suppliers of such electricity. The copies of corresponding certificates and/or
other contractual documents for the reporting units claiming to purchase low carbon
electricity are collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Russian Federation
Sourcing method
Project-specific contract with an electricity supplier
Energy carrier
Electricity
Low-carbon technology type
Wind
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
24,746
Tracking instrument used
Contract
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Russian Federation
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2011
Comment
Our factory in Russia Saint Petersburg has covered 100% of its electricity consumption
by renewable energy attributes. A contract with a company operating a wind farm has
been concluded to cover 59% of the factory's electricity needs. The rest electricity
consumption is covered through I-RECs. Across BAT Procurement departments of
respective sites hold contracts with utilities or suppliers of such electricity. The copies of
corresponding certificates and/or other contractual documents for the reporting units
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
164
claiming to purchase low carbon electricity are collected via our on-line environmental
reporting system.
Country/area of low-carbon energy consumption
Russian Federation
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Large hydropower (>25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
10,000
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Russian Federation
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
1959
Comment
Our factory in Russia Saint Petersburg covered 100% of its electricity consumed in 2022
by renewable energy attributes. 30% of this electricity is covered by I-RECs for
electricity generated with Large Hydro technology at 2 generation facilities. The rest
electricity consumption is covered by project-specific contract and I-RECs for electricity
generated with solar technology. Across BAT Procurement departments of respective
sites hold contracts with utilities or suppliers of such electricity. The copies of
corresponding certificates and/or other contractual documents for the reporting units
claiming to purchase low carbon electricity are collected via our on-line environmental
reporting system.
Country/area of low-carbon energy consumption
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
165
Russian Federation
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Large hydropower (>25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
2,796
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Russian Federation
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2004
Comment
Our factory in Russia Saint Petersburg covered 100% of its electricity consumed in 2022
by renewable energy attributes. 30% of this electricity is covered by I-RECs for
electricity generated with Large Hydro technology at 2 generation facilities. The rest
electricity consumption is covered by project-specific contract and I-RECs for electricity
generated with solar technology. Across BAT Procurement departments of respective
sites hold contracts with utilities or suppliers of such electricity. The copies of
corresponding certificates and/or other contractual documents for the reporting units
claiming to purchase low carbon electricity are collected via our on-line environmental
reporting system.
Country/area of low-carbon energy consumption
Russian Federation
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
166
Electricity
Low-carbon technology type
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
5,323
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Russian Federation
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2019
Comment
Our factory in Russia Saint Petersburg and a facility in Russia Saratov covered 100% of
its electricity consumed in 2022 by renewable energy attributes. 11% of electricity
consumption of Saint Petersburg factory and 100% of electricity consumption of Saratov
facility are covered by I-RECs for electricity generated with Solar technology at 1 facility.
The rest electricity consumption is covered by project-specific contract. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Serbia
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
Low-carbon technology type
Large hydropower (>25 MW)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
167
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
3,651
Tracking instrument used
GO
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Serbia
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
1970
Comment
Our factory in Serbia consumes 100% renewable electricity that is purchased under
green tariff. The electricity is generated using hydro technology. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system. multiple windmill onshore
power plants
Country/area of low-carbon energy consumption
South Africa
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Sustainable biomass
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
11,242
Tracking instrument used
I-REC
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
168
Country/area of origin (generation) of the low-carbon energy or energy
attribute
South Africa
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
1992
Comment
Our factory in South Africa covered 100% of its electricity consumed in 2022 with I-
RECs. 71% of respective renewable electricity was generated by sustainable biomass
combustion technology, while 29% - by solar technology. Across BAT Procurement
departments of respective sites hold contracts with utilities or suppliers of such
electricity. The copies of corresponding certificates and/or other contractual documents
for the reporting units claiming to purchase low carbon electricity are collected via our
on-line environmental reporting system.
Country/area of low-carbon energy consumption
South Africa
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
4,530
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
South Africa
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
169
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2014
Comment
Our factory in South Africa covered 100% of its electricity consumed in 2022 with I-
RECs. 71% of respective renewable electricity was generated by sustainable biomass
combustion technology, while 29% - by solar technology. Across BAT Procurement
departments of respective sites hold contracts with utilities or suppliers of such
electricity. The copies of corresponding certificates and/or other contractual documents
for the reporting units claiming to purchase low carbon electricity are collected via our
on-line environmental reporting system.
Country/area of low-carbon energy consumption
Sri Lanka
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Small hydropower (<25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
4,844
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Sri Lanka
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2016
Comment
Our factory, offices green leaf threshing plant and other leaf operations facilities covered
100% of electricity consumed in 2022 by I-RECs. Respective renewable electricity was
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
170
generated by run of river (small hydro) technology. Across BAT Procurement
departments of respective sites hold contracts with utilities or suppliers of such
electricity. The copies of corresponding certificates and/or other contractual documents
for the reporting units claiming to purchase low carbon electricity are collected via our
on-line environmental reporting system.
Country/area of low-carbon energy consumption
Sweden
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
Low-carbon technology type
Hydropower (capacity unknown)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
4,069
Tracking instrument used
GO
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Sweden
Are you able to report the commissioning or re-powering year of the energy
generation facility?
No
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
Comment
Our factory in Sweden consumes 100% renewable electricity that is purchased under
green tariff. The electricity is generated using hydro technology. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system. multiple windmill onshore
power plants.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
171
Country/area of low-carbon energy consumption
Switzerland
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
Low-carbon technology type
Large hydropower (>25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
6,624
Tracking instrument used
GO
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Italy
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2004
Comment
Our factory in Switzerland consumes renewable electricity that is by 100% backed-up by
GoOs under the contract. Renewable technology used for energy generation is hydro.
Across BAT Procurement departments of respective sites hold contracts with utilities or
suppliers of such electricity. The copies of corresponding certificates and/or other
contractual documents for the reporting units claiming to purchase low carbon electricity
are collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
Switzerland
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
172
Low-carbon technology type
Renewable energy mix, please specify
Solar, Wind, Hydropower, Thermal, Biomass, Waste
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
80
Tracking instrument used
Contract
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Switzerland
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2020
Comment
Our offices in Switzerland consume 100% renewable electricity (mix from 90% hydro
and 10% of wind and solar) under green tariff. Across BAT Procurement departments of
respective sites hold contracts with utilities or suppliers of such electricity. The copies of
corresponding certificates and/or other contractual documents for the reporting units
claiming to purchase low carbon electricity are collected via our on-line environmental
reporting system.
Country/area of low-carbon energy consumption
Turkey
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Hydropower (capacity unknown)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
13,837
Tracking instrument used
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
173
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Turkey
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2009
Comment
Our factory, offices and warehousing facilities in Turkey covered 100% of electricity
consumption in 2022 by I-RECs. Respective renewable electricity was generated by
hydro technology. Across BAT Procurement departments of respective sites hold
contracts with utilities or suppliers of such electricity. The copies of corresponding
certificates and/or other contractual documents for the reporting units claiming to
purchase low carbon electricity are collected via our on-line environmental reporting
system.
Country/area of low-carbon energy consumption
United Arab Emirates
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Solar
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
475
Tracking instrument used
I-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
United Arab Emirates
Are you able to report the commissioning or re-powering year of the energy
generation facility?
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
174
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2017
Comment
Our office in UAE, Dubai covered 100% of its electricity consumed in 2022 with I-RECs.
Respective renewable electricity was generated by solar technology. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
United Kingdom of Great Britain and Northern Ireland
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
Low-carbon technology type
Renewable energy mix, please specify
Solar, Wind, Hydropower, Thermal, Biomass, Waste
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
14,873
Tracking instrument used
REGO
Country/area of origin (generation) of the low-carbon energy or energy
attribute
United Kingdom of Great Britain and Northern Ireland
Are you able to report the commissioning or re-powering year of the energy
generation facility?
No
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
Comment
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
175
Our Head office and R&D facility in UK consume renewable electricity (renewable
energy mix with major component coming from wind energy and the rest - form solar,
hydro, waste and biomass) that in backed-up by REGO certificates and is supplied
under green tariff. Across BAT Procurement departments of respective sites hold
contracts with utilities or suppliers of such electricity. The copies of corresponding
certificates and/or other contractual documents for the reporting units claiming to
purchase low carbon electricity are collected via our on-line environmental reporting
system.
Country/area of low-carbon energy consumption
United Kingdom of Great Britain and Northern Ireland
Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)
Energy carrier
Electricity
Low-carbon technology type
Wind
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
247
Tracking instrument used
REGO
Country/area of origin (generation) of the low-carbon energy or energy
attribute
United Kingdom of Great Britain and Northern Ireland
Are you able to report the commissioning or re-powering year of the energy
generation facility?
No
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
Comment
Our offices in UK consume 100% renewable electricity supplied under the green tariff.
The technology used for this electricity generation is wind. Across BAT Procurement
departments of respective sites hold contracts with utilities or suppliers of such
electricity. The copies of corresponding certificates and/or other contractual documents
for the reporting units claiming to purchase low carbon electricity are collected via our
on-line environmental reporting system.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
176
Country/area of low-carbon energy consumption
United States of America
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Large hydropower (>25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
51,343
Tracking instrument used
US-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
Canada
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
1965
Comment
Seven of our factories and an R&D facility in the US covered 100% of their electricity
consumption in 2022 by US -RECs. 23% of such electricity is generated with large hydro
technology in 1 facility in Canada. Across BAT Procurement departments of respective
sites hold contracts with utilities or suppliers of such electricity. The copies of
corresponding certificates and/or other contractual documents for the reporting units
claiming to purchase low carbon electricity are collected via our on-line environmental
reporting system.
Country/area of low-carbon energy consumption
United States of America
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
177
Energy carrier
Electricity
Low-carbon technology type
Large hydropower (>25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
11,849
Tracking instrument used
US-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
United States of America
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
1964
Comment
Seven of our factories and an R&D facility in the US covered 100% of their electricity
consumption in 2022 by US -RECs. 17% of such electricity is generated with large hydro
technology in 2 generation facilities in US. Across BAT Procurement departments of
respective sites hold contracts with utilities or suppliers of such electricity. The copies of
corresponding certificates and/or other contractual documents for the reporting units
claiming to purchase low carbon electricity are collected via our on-line environmental
reporting system.
Country/area of low-carbon energy consumption
United States of America
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Large hydropower (>25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
178
25,711
Tracking instrument used
US-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
United States of America
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
1925
Comment
Seven of our factories and an R&D facility in the US covered 100% of their electricity
consumption in 2022 by US -RECs. 17% of such electricity is generated with large hydro
technology in 2 generation facilities in US. Across BAT Procurement departments of
respective sites hold contracts with utilities or suppliers of such electricity. The copies of
corresponding certificates and/or other contractual documents for the reporting units
claiming to purchase low carbon electricity are collected via our on-line environmental
reporting system.
Country/area of low-carbon energy consumption
United States of America
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Small hydropower (<25 MW)
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
4,335
Tracking instrument used
US-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
United States of America
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
179
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
1940
Comment
Seven of our factories and an R&D facility in the US covered 100% of their electricity
consumption in 2022 by US -RECs. 2% of such electricity is generated with small Hydro
technology at 1 generation facility in US. Across BAT Procurement departments of
respective sites hold contracts with utilities or suppliers of such electricity. The copies of
corresponding certificates and/or other contractual documents for the reporting units
claiming to purchase low carbon electricity are collected via our on-line environmental
reporting system.
Country/area of low-carbon energy consumption
United States of America
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Sustainable biomass
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
50,582
Tracking instrument used
US-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
United States of America
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2013
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
180
Comment
Seven of our factories and an R&D facility in the US covered 100% of their electricity
consumption in 2022 by US -RECs. 58% of such electricity is generated with
sustainable biomass combustion technology at 4 generation facilities in US. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
United States of America
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Sustainable biomass
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
10,758
Tracking instrument used
US-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
United States of America
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2010
Comment
Seven of our factories and an R&D facility in the US covered 100% of their electricity
consumption in 2022 by US -RECs. 58% of such electricity is generated with
sustainable biomass combustion technology at 4 generation facilities in US. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
181
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
United States of America
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Sustainable biomass
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
61,112
Tracking instrument used
US-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
United States of America
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2009
Comment
Seven of our factories and an R&D facility in the US covered 100% of their electricity
consumption in 2022 by US -RECs. 58% of such electricity is generated with
sustainable biomass combustion technology at 4 generation facilities in US. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
Country/area of low-carbon energy consumption
United States of America
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
182
Sourcing method
Unbundled procurement of energy attribute certificates (EACs)
Energy carrier
Electricity
Low-carbon technology type
Sustainable biomass
Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)
3,898
Tracking instrument used
US-REC
Country/area of origin (generation) of the low-carbon energy or energy
attribute
United States of America
Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
Commissioning year of the energy generation facility (e.g. date of first
commercial operation or repowering)
2008
Comment
Seven of our factories and an R&D facility in the US covered 100% of their electricity
consumption in 2022 by US -RECs. 58% of such electricity is generated with
sustainable biomass combustion technology at 4 generation facilities in US. Across BAT
Procurement departments of respective sites hold contracts with utilities or suppliers of
such electricity. The copies of corresponding certificates and/or other contractual
documents for the reporting units claiming to purchase low carbon electricity are
collected via our on-line environmental reporting system.
C8.2g
(C8.2g) Provide a breakdown by country/area of your non-fuel energy consumption in
the reporting year.
Country/area
United States of America
Consumption of purchased electricity (MWh)
247,114
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
183
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
247,114
Country/area
Brazil
Consumption of purchased electricity (MWh)
88,396
Consumption of self-generated electricity (MWh)
475
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
88,871
Country/area
Bangladesh
Consumption of purchased electricity (MWh)
58,458
Consumption of self-generated electricity (MWh)
162
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
184
Total non-fuel energy consumption (MWh) [Auto-calculated]
58,620
Country/area
Poland
Consumption of purchased electricity (MWh)
48,134
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
48,134
Country/area
Russian Federation
Consumption of purchased electricity (MWh)
43,866
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
43,866
Country/area
Nigeria
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
185
Consumption of purchased electricity (MWh)
1,801
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
1,801
Country/area
Turkey
Consumption of purchased electricity (MWh)
13,837
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
13,837
Country/area
Mexico
Consumption of purchased electricity (MWh)
35,257
Consumption of self-generated electricity (MWh)
142
Consumption of purchased heat, steam, and cooling (MWh)
0
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
186
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
35,399
Country/area
Pakistan
Consumption of purchased electricity (MWh)
29,286
Consumption of self-generated electricity (MWh)
4,001
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
33,287
Country/area
Romania
Consumption of purchased electricity (MWh)
41,949
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
41,949
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
187
Country/area
South Africa
Consumption of purchased electricity (MWh)
19,118
Consumption of self-generated electricity (MWh)
1,735
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
20,853
Country/area
Croatia
Consumption of purchased electricity (MWh)
19,236
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
19,236
Country/area
Germany
Consumption of purchased electricity (MWh)
8,336
Consumption of self-generated electricity (MWh)
770
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
188
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
9,106
Country/area
Indonesia
Consumption of purchased electricity (MWh)
20,729
Consumption of self-generated electricity (MWh)
3
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
20,732
Country/area
Chile
Consumption of purchased electricity (MWh)
13,973
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
13,973
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
189
Country/area
Uzbekistan
Consumption of purchased electricity (MWh)
12,422
Consumption of self-generated electricity (MWh)
213
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
108
Total non-fuel energy consumption (MWh) [Auto-calculated]
12,743
Country/area
United Kingdom of Great Britain and Northern Ireland
Consumption of purchased electricity (MWh)
15,167
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
15,167
Country/area
Kenya
Consumption of purchased electricity (MWh)
8,936
Consumption of self-generated electricity (MWh)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
190
474
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
9,410
Country/area
Venezuela (Bolivarian Republic of)
Consumption of purchased electricity (MWh)
10,826
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
10,826
Country/area
Ukraine
Consumption of purchased electricity (MWh)
11,233
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
191
Total non-fuel energy consumption (MWh) [Auto-calculated]
11,233
Country/area
Hungary
Consumption of purchased electricity (MWh)
12,394
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
4,545
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
16,939
Country/area
Argentina
Consumption of purchased electricity (MWh)
9,525
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
9,525
Country/area
Canada
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
192
Consumption of purchased electricity (MWh)
4,569
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
4,569
Country/area
Singapore
Consumption of purchased electricity (MWh)
12,273
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
12,273
Country/area
Switzerland
Consumption of purchased electricity (MWh)
6,705
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
193
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
6,705
Country/area
Sri Lanka
Consumption of purchased electricity (MWh)
4,844
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
4,844
Country/area
Viet Nam
Consumption of purchased electricity (MWh)
4,854
Consumption of self-generated electricity (MWh)
8
Consumption of purchased heat, steam, and cooling (MWh)
3,135
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
7,997
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
194
Country/area
Honduras
Consumption of purchased electricity (MWh)
4,357
Consumption of self-generated electricity (MWh)
513
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
4,870
Country/area
Sudan
Consumption of purchased electricity (MWh)
4,639
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
4,639
Country/area
Trinidad and Tobago
Consumption of purchased electricity (MWh)
5,389
Consumption of self-generated electricity (MWh)
0
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
195
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
5,389
Country/area
Netherlands
Consumption of purchased electricity (MWh)
4,043
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
213
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
4,256
Country/area
Serbia
Consumption of purchased electricity (MWh)
3,805
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
45
Total non-fuel energy consumption (MWh) [Auto-calculated]
3,850
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
196
Country/area
Saudi Arabia
Consumption of purchased electricity (MWh)
1,358
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
1,358
Country/area
Sweden
Consumption of purchased electricity (MWh)
4,126
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
23
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
4,149
Country/area
Fiji
Consumption of purchased electricity (MWh)
1,707
Consumption of self-generated electricity (MWh)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
197
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
1,707
Country/area
Papua New Guinea
Consumption of purchased electricity (MWh)
658
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
658
Country/area
Algeria
Consumption of purchased electricity (MWh)
2,775
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
198
Total non-fuel energy consumption (MWh) [Auto-calculated]
2,775
Country/area
Italy
Consumption of purchased electricity (MWh)
715
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
715
Country/area
Malaysia
Consumption of purchased electricity (MWh)
1,706
Consumption of self-generated electricity (MWh)
56
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
1,762
Country/area
Belarus
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
199
Consumption of purchased electricity (MWh)
177
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
177
Country/area
Bosnia & Herzegovina
Consumption of purchased electricity (MWh)
2,817
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
2
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
2,819
Country/area
Japan
Consumption of purchased electricity (MWh)
399
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
200
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
399
Country/area
Zimbabwe
Consumption of purchased electricity (MWh)
1,371
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
12
Total non-fuel energy consumption (MWh) [Auto-calculated]
1,383
Country/area
Zambia
Consumption of purchased electricity (MWh)
2,263
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
2,263
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
201
Country/area
France
Consumption of purchased electricity (MWh)
194
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
194
Country/area
Colombia
Consumption of purchased electricity (MWh)
567
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
567
Country/area
Czechia
Consumption of purchased electricity (MWh)
63
Consumption of self-generated electricity (MWh)
0
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
202
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
63
Country/area
Kazakhstan
Consumption of purchased electricity (MWh)
146
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
146
Country/area
Spain
Consumption of purchased electricity (MWh)
96
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
96
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
203
Country/area
Australia
Consumption of purchased electricity (MWh)
736
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
736
Country/area
Jordan
Consumption of purchased electricity (MWh)
1,838
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
1,838
Country/area
Mozambique
Consumption of purchased electricity (MWh)
399
Consumption of self-generated electricity (MWh)
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
204
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
399
Country/area
United Arab Emirates
Consumption of purchased electricity (MWh)
475
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
475
Country/area
Samoa
Consumption of purchased electricity (MWh)
207
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
205
Total non-fuel energy consumption (MWh) [Auto-calculated]
207
Country/area
Paraguay
Consumption of purchased electricity (MWh)
176
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
176
Country/area
Republic of Korea
Consumption of purchased electricity (MWh)
36,400
Consumption of self-generated electricity (MWh)
191
Consumption of purchased heat, steam, and cooling (MWh)
0
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
36,591
Country/area
Other, please specify
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
206
Other countries with small business, not material in terms of total emissions. There
are BAT units in 30 countries, that in total give less than 3.7% of total Scope 1 and
2 Market-based emissions (less than 1.6% of non-fuel energy consumption).
Consumption of purchased electricity (MWh)
14,485
Consumption of self-generated electricity (MWh)
0
Consumption of purchased heat, steam, and cooling (MWh)
6
Consumption of self-generated heat, steam, and cooling (MWh)
0
Total non-fuel energy consumption (MWh) [Auto-calculated]
14,491
C9. Additional metrics
C9.1
(C9.1) Provide any additional climate-related metrics relevant to your business.
Description
Other, please specify
% farmers’ sustainable wood fuel sources
Metric value
99.99
Metric numerator
n/a
Metric denominator (intensity metric only)
n/a
% change from previous year
0.1
Direction of change
Increased
Please explain
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
207
BAT tobacco supply chain represents 1/3 of total scope 3 emissions, mainly attributed to
the curing process of flue cured tobacco, although also included are other activities
performed in the field such as crop inputs application, transport and mechanization. One
of the most representative fuels used in the curing process is wood, with 99.99% coming
from sustainable sources. Sustainable wood sources are defined in the BAT Biodiversity
Operational Standard as: wood resources harvested legally from planted sources in
such a way that does not cause any detrimental social, environmental or economic
impact. This may include wood sourced from exotic species that have not been planted;
and wood sourced from existing legal plantations. Considering the total volume of
purchased cured tobacco, we have 83% of leaf volumes cured using renewable fuels
and sustainable methods. Our Thrive Sustainable Agriculture and Farmer Livelihoods
program guides and monitors the tobacco production to a more sustainable way.
Through our field technician's technical visits we provide support and knowledge for
farmers, encouraging them to apply more sustainable practices such as the use of
recommended inputs (e.g. fertilisers, tobacco seed varieties, agrochemicals etc) and
elimination of hazardous pesticides, the use of sustainable and renewable sources of
fuel, no deforestation of native and natural vegetation, proper waste management, water
preservation, and others. Taking all this into account BAT had a more than 10%
reductions of CO2 emissions in 2021 compared to 2020.
C10. Verification
C10.1
(C10.1) Indicate the verification/assurance status that applies to your reported
emissions.
Verification/assurance status
Scope 1
Third-party verification or assurance process in place
Scope 2 (location-based or market-based)
Third-party verification or assurance process in place
Scope 3
Third-party verification or assurance process in place
C10.1a
(C10.1a) Provide further details of the verification/assurance undertaken for your
Scope 1 emissions, and attach the relevant statements.
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
208
Limited assurance
Attach the statement
BAT_Annual_Report_Form_20-F_2022 (1).pdf
Page/ section reference
See attached Independent Limited Assurance report – pages – 94 to 95.
Scope 1 CO2e emissions data were in scope of Independent Limited Assurance by
KPMG. Assurance was carried out in accordance with ISAE 3410. Verified figure of
Scope 1 CO2e emissions is in p.94.
Relevant standard
ISAE 3410
Proportion of reported emissions verified (%)
100
C10.1b
(C10.1b) Provide further details of the verification/assurance undertaken for your
Scope 2 emissions and attach the relevant statements.
Scope 2 approach
Scope 2 location-based
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
BAT_Annual_Report_Form_20-F_2022 (1).pdf
Page/ section reference
See attached Independent Limited Assurance report, pages 94 to 95.
Scope 2 CO2e emissions data were in scope of Independent Limited Assurance by
KPMG. Assurance was carried out in accordance with ISAE 3410. Verified figure of
Scope 2 CO2e emissions is in p.94.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
209
Relevant standard
ISAE 3410
Proportion of reported emissions verified (%)
100
Scope 2 approach
Scope 2 market-based
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
BAT_Annual_Report_Form_20-F_2022 (1).pdf
Page/ section reference
See attached Independent Limited Assurance report, pages 94 to 95.
Scope 2 CO2e emissions data were in scope of Independent Limited Assurance by
KPMG. Assurance was carried out in accordance with ISAE 3410. Verified figure of
Scope 2 CO2e emissions is in p.94.
Relevant standard
ISAE 3410
Proportion of reported emissions verified (%)
100
C10.1c
(C10.1c) Provide further details of the verification/assurance undertaken for your
Scope 3 emissions and attach the relevant statements.
Scope 3 category
Scope 3: Purchased goods and services
Scope 3: Capital goods
Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)
Scope 3: Upstream transportation and distribution
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
210
Scope 3: Waste generated in operations
Scope 3: Business travel
Scope 3: Employee commuting
Scope 3: Downstream transportation and distribution
Scope 3: Use of sold products
Scope 3: End-of-life treatment of sold products
Scope 3: Franchises
Verification or assurance cycle in place
Annual process
Status in the current reporting year
Complete
Type of verification or assurance
Limited assurance
Attach the statement
BAT_Annual_Report_Form_20-F_2022 (1).pdf
Page/section reference
See attached Independent Limited Assurance report, pages 94 to 95.
Scope CO2e emissions data were in scope of Independent Limited Assurance by
KPMG. Assurance was carried out in accordance with ISAE 3410. Verified figure of
Scope 3 CO2e emissions is in p.94.
Relevant standard
ISAE 3410
Proportion of reported emissions verified (%)
100
C10.2
(C10.2) Do you verify any climate-related information reported in your CDP disclosure
other than the emissions figures reported in C6.1, C6.3, and C6.5?
Yes
C10.2a
(C10.2a) Which data points within your CDP disclosure have been verified, and which
verification standards were used?
Disclosure
module
verification
relates to
Data verified
Verification
standard
Please explain
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
211
C4. Targets and
performance
Energy
consumption
Limited
assurance
ISAE3000
standard
The scope of verification (Independent limited
assurance performed by KPMG) covered: total
direct energy use, renewable energy consumption
and, based on the above, calculation of Renewable
energy as a % of total direct energy use.
Verification of the data points is performed
annually; scope is companywide.
For full Assurance Statement - see page 94 to 95
of the attachment. Relevant figures are in page 94
C4. Targets and
performance
Waste data
Limited
assurance
ISAE3000
standard
The scope of verification (Independent limited
assurance performed by KPMG) covered: Waste
generated. Verification of the data points is
performed annually; scope is companywide. For
full Assurance Statement - see page 94 to 95 of
the attachment. Relevant figures are in page 94
C4. Targets and
performance
Waste data
Limited
assurance
ISAE3000
standard
The scope of verification (Independent limited
assurance performed by KPMG) covered: % of
waste recycled. Verification of the data points is
performed annually; scope is company wide. For
full Assurance Statement - see page 94 to 95 of
the attachment. Relevant figures are in page 94
C4. Targets and
performance
Waste data
Limited
assurance
ISAE3000
standard
The scope of verification (Independent limited
assurance performed by KPMG) covered:
hazardous waste and radioactive waste generated.
Verification of the data points is performed
annually; scope is companywide. For full
Assurance Statement - see page 94 to 95 of the
attachment. Relevant figures are in page 94.
C11. Carbon pricing
C11.1
(C11.1) Are any of your operations or activities regulated by a carbon pricing system
(i.e. ETS, Cap & Trade or Carbon Tax)?
Yes
C11.1a
(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.
Canada federal fuel charge
Denmark carbon tax
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
212
EU ETS
France carbon tax
Norway carbon tax
Poland carbon tax
South Africa carbon tax
Sweden carbon tax
Switzerland carbon tax
Switzerland ETS
Ukraine carbon tax
Other carbon tax, please specify
Croatia carbon tax
Other carbon tax, please specify
Belgium carbon tax
C11.1b
(C11.1b) Complete the following table for each of the emissions trading schemes you
are regulated by.
EU ETS
% of Scope 1 emissions covered by the ETS
2.76
% of Scope 2 emissions covered by the ETS
0
Period start date
January 1, 2022
Period end date
December 31, 2022
Allowances allocated
1,640
Allowances purchased
4,900
Verified Scope 1 emissions in metric tons CO2e
8,394
Verified Scope 2 emissions in metric tons CO2e
0
Details of ownership
Facilities we own and operate
Comment
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
213
Our facility (cigarette factory) in Poland Augustow is under EU ETS. The scheme is
applied to emissions from fuel combustion on site to generate energy, incl. natural gas
(boiler house and air dryer) and oil; it doesn't cover emissions from fuel use by company
vehicles. The scheme is not applicable to Scope 2 emissions.
Reported verified Scope 1 emissions for our facility in Augustow cover both emissions
from fuel use on site (mostly natural gas) and in fleet vehicles. Reported verified Scope
2 emissions are as per Market-based method and are equal to 0, while the site sources
100% renewable electricity. For our factory in Augustow the last free EUA allocation for
2022 was equal to 1640 tCO2e.
EUA allowances were purchased on the market in September 2022 in the amount of
4900 tCO2e. The remaining part of 2022 emissions was covered by allowances
purchased/allocated in previous years.
Switzerland ETS
% of Scope 1 emissions covered by the ETS
0.5
% of Scope 2 emissions covered by the ETS
0
Period start date
January 1, 2022
Period end date
December 31, 2022
Allowances allocated
1,787
Allowances purchased
0
Verified Scope 1 emissions in metric tons CO2e
1,491
Verified Scope 2 emissions in metric tons CO2e
0
Details of ownership
Facilities we own and operate
Comment
Our facility (cigarette factory) in Switzerland is under the Swiss ETS, which is linked to
the EU ETS. The scheme is applied to emissions from fuel combustion on site for
energy generation, which constitutes major part of Scope 1 emissions; it doesn't cover
emissions from fuel use by company vehicles. The scheme is not applicable to Scope 2
emissions.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
214
According to the Swiss confederation legislation, a company subject to ETS can ask the
authorities to develop emissions reduction glidepath for it. Whenever company’s
emissions are lower than the glidepath, it is exempt from paying carbon tax for relevant
equivalent amount.
The BAT factory in Switzerland entered such a scheme and committed to reduce its
CO2e emissions by signing an agreement with the Swiss confederation. A glidepath had
been defined for the period 2013-2020. Throughout the period, our facility had been
performing better than the target, which allowed to convert the difference into tradable
CO2e certificates (CHF 100 / ton) and refund carbon taxes. Later the agreement was
extended to cover 2021 - 24. New glidepath was defined and agreed.
In 2022 CO2e emissions of our factory in Switzerland were below the target given by
authorities (1797 tCO2e), hence no additional purchase of emissions allowance was
needed.
For over the decade our factory in Switzerland implemented a range of decarbonization
initiatives, such as energy saving, replacement of natural gas boiler at the warehouse
for biomass fuel boiler and sourcing 100% renewable electricity, which allowed it to
meet commitment to the authorities and further, subject to purchase of carbon offsets
and verification as per PAS2060 standard, become carbon neutral in regards to each of
the years from 2020 till 2022 (the status is to be maintained).
C11.1c
(C11.1c) Complete the following table for each of the tax systems you are regulated
by.
Canada federal fuel charge
Period start date
December 1, 2021
Period end date
November 30, 2022
% of total Scope 1 emissions covered by tax
0.87
Total cost of tax paid
79,090
Comment
BAT Canada pays 1. a federal fuel charge applicable to fuel used by company vehicles
used for trade marketing and 2. a federal fuel charge for natural gas used for heating in
the Canadian warehouses and head office. The payment is based on the rate of
average 50 CAN $/tonne of Carbon Dioxide Equivalent in 2022
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
215
Denmark carbon tax
Period start date
December 1, 2021
Period end date
November 30, 2022
% of total Scope 1 emissions covered by tax
0.09
Total cost of tax paid
60,469
Comment
Denmark Carbon Tax is applied to fuel used (diesel and petrol) by our vehicles fleet at
the end market. Carbon tax is applied based on fixed rate per litre of diesel and per litre
of petrol and is included in the price of fuel. In the market we have an office that uses
electrical energy only and fleet vehicles for trade marketing activities.
France carbon tax
Period start date
December 1, 2021
Period end date
November 30, 2022
% of total Scope 1 emissions covered by tax
0.22
Total cost of tax paid
78,480
Comment
France Carbon Tax is applied to fuel used (diesel and petrol) by our vehicles fleet at the
end market. Carbon tax is applied based on fixed rate per litre of diesel and per litre of
petrol and is included in the price of fuel.
Norway carbon tax
Period start date
December 1, 2021
Period end date
November 30, 2022
% of total Scope 1 emissions covered by tax
0.02
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
216
Total cost of tax paid
8,214
Comment
Norway Carbon Tax is applied to fuel used (diesel and petrol) by our vehicles fleet at the
end market. Carbon tax is applied based on fixed rate per litre of diesel and per litre of
petrol and is included in the price of fuel. In the market we have an office that uses
electrical energy only and fleet vehicles for trade marketing activities.
Poland carbon tax
Period start date
December 1, 2021
Period end date
November 30, 2022
% of total Scope 1 emissions covered by tax
1.48
Total cost of tax paid
1,100
Comment
Carbon Tax in Poland is applied to fuel used (diesel and petrol) by vehicles fleet in the
country. Carbon tax is applied based on fixed rate per litre of diesel and per litre of
petrol.
Note: Our factory in Poland Augustow is regulated by ETS, while our factory in
Ostrzeszów consumes very minor amounts of fuel subject to carbon tax, thus is exempt
from it.
South Africa carbon tax
Period start date
December 1, 2021
Period end date
November 30, 2022
% of total Scope 1 emissions covered by tax
2.78
Total cost of tax paid
9,382
Comment
Our factory in South Africa is subject to carbon tax as the total installed thermal capacity
of the combined stationary fuel combustion equipment on site exceeds the threshold (10
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
217
MW(th)) as per Carbon Tax Act. Emissions from fuel use by vehicles fleet are not in
scope of the taxation scheme.
Sweden carbon tax
Period start date
December 1, 2021
Period end date
November 30, 2022
% of total Scope 1 emissions covered by tax
0.1
Total cost of tax paid
25,278
Comment
Sweden Carbon Tax is applied to fuel used (diesel and petrol) by vehicles fleet in the
country. Carbon tax is applied based on fixed rate per litre of diesel and per litre of petrol
(included in the price). All Scope 1 emissions are associated with fuel use by vehicles
since the only. Fuel used on site by our factory is natural gas covered by biogas
certificates.
Switzerland carbon tax
Period start date
December 1, 2021
Period end date
November 30, 2022
% of total Scope 1 emissions covered by tax
0.5
Total cost of tax paid
0
Comment
Switzerland Carbon tax is applicable to natural gas and fuel oil used at our facility in
Boncourt. The sum of the tax for the reporting period is 155 thousand GBP. However,
due to the fact that BAT Switzerland is registered in EU ETS and relevant emissions
reduction program, carbon taxes are refunded because of Scope 1 emissions from fuels
used on site are significantly below (by 17%) the allowance. Thus, refunding taxes
serves as a kind of allowances trading. The tax is not applicable to fuels used by fleet
vehicles in trade marketing and other activities.
Ukraine carbon tax
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
218
Period start date
December 1, 2021
Period end date
November 30, 2022
% of total Scope 1 emissions covered by tax
0.55
Total cost of tax paid
524
Comment
Our factory in Ukraine pays a tax on CO2e emissions from the use fuel use on site,
which is applicable to natural gas and diesel oil. Payment is done annually on the basis
of volumes of natural gas used in the reporting period. The tax is not applicable to other
fuels use on site as well as fuels used by fleet vehicles in trade marketing and other
activities.
Other carbon tax, please specify
Period start date
December 1, 2021
Period end date
November 30, 2022
% of total Scope 1 emissions covered by tax
1.74
Total cost of tax paid
5,357
Comment
Croatia Carbon Tax: BAT facilities in Croatia (factory and green leaf threshing plant) pay
a governmental fee on CO2e emissions from the use of natural gas, fuel oil and diesel
on site. This is required for facilities that are not covered by ETS and emit more than
450 tCO2e per year. Payment is done annually based on the report of calculated
emissions (the methodology implies use of number of worked hours and fuel used by
each type of equipment, e.g. boiler, dryer etc.) in the central informational governmental
system. The fee is not applicable to fuel used by fleet vehicles.
Other carbon tax, please specify
Period start date
December 1, 2021
Period end date
November 30, 2022
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
219
% of total Scope 1 emissions covered by tax
0.09
Total cost of tax paid
28,393
Comment
In Belgium the employer has to pay a solidarity contribution for company cars that can
also be used for private purposes, which is based on the cars fuel consumption and
energy label. A minimum amount is always applied. In the end market we have offices
using mostly electricity, and a minor amount of fuel. Scope 1 emissions in the end
market are also generated from fleet vehicles used for trade marketing activities.
C11.1d
(C11.1d) What is your strategy for complying with the systems you are regulated by or
anticipate being regulated by?
Our strategy is to comply with both current and future regulations in respect of Carbon Pricing
and other related taxes and to take appropriate action to reduce the cost of regulations through
lowering the basis for these emissions. At a global level, our Centre of Excellence for Carbon
Taxes and ETS keeps up to date information on current and emerging regulations and interacts
with the relevant BAT entities. The Centre develops glidepaths for Carbon Emissions and
Energy reduction plans, which encompass engineering and technical initiatives and the
implementation of the "EnerCon" Energy conservation system to address losses. These are
reflected in BAT’s 2030 Low Carbon Transition Plan and through these efforts, the Group will
significantly decrease emissions and associated payments under the applicable ETS and
carbon tax schemes. Furthermore, we use an internal carbon price (ICP) to incentivise
investments into projects that reduce CO2e emissions as well as a balance scorecard that
considers the impact of projects on both the environment and society. Together, these
incentivise initiatives that support the Low Carbon Transition Plan whilst disincentivising those
that do not. Each factory has CO2e reduction glidepaths reflecting the investment and
efficiency initiatives that are planned to be undertaken.
We have implemented robust internal compliance mechanisms to ensure adherence to the
requirements of ETS (Emissions Trading Scheme) and carbon tax schemes that are applicable
to our sites. Cross-functional teams, including Operations, Legal and Finance, diligently monitor
and collaborate with regulatory authorities to ensure a comprehensive understanding of the
applicability of these schemes to our facilities. We focus on determining the scope of
application, such as emissions under Scope 1 and/or Scope 2, as well as emissions associated
with specific types of fuels used allowing markets to anticipate ETS schemes and carbon taxes
applicable to them in upcoming years and preparing them for management systems and budget
allocation.
As a result of the strategy, our facilities that are regulated by ETS, take necessary measures
based on the number of allowances allocated and their emissions performance. This includes
purchasing additional allowances, utilizing allowances trading tools, or employing other
reimbursement mechanisms. For example, as a result of this strategy, our facility in Switzerland
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
220
receives a tax reimbursement due to its significant progress in emissions reduction, which is
well below the stipulated glidepath outlined in the local ETS and in Poland we are continuing to
invest in heat recovery systems.
2022 also saw the implementation of a plastic taxes in the UK with further countries
implementing similar taxes over the next few years (e.g. Spain implemented plastic tax on 1st
January 2023). As a consequence of our strategy to reduce the cost of regulations and our
external commitment to ensure at least 30% average recycled content in plastic packaging,
projects are underway to increase recycled content in our products which will be implemented
over the next few years.
C11.2
(C11.2) Has your organization canceled any project-based carbon credits within the
reporting year?
Yes
C11.2a
(C11.2a) Provide details of the project-based carbon credits canceled by your
organization in the reporting year.
Project type
Agroforestry
Type of mitigation activity
Carbon removal
Project description
Project VCU 799: Uganda, Mayuge, Eastern Uganda, Bukaleba Forest Project (BFP),
Agriculture Forestry and Other Land Use. The project activity is to establish and manage
exotic and indigenous reforestation on degraded shrub and grassland.
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
160
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2011
Were these credits issued to or purchased by your organization?
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
221
Purchased
Credits issued by which carbon-crediting program
VCS (Verified Carbon Standard)
Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Investment analysis
Market penetration assessment
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Market leakage
Provide details of other issues the selected program requires projects to
address
Besides the main aims of the project which are i) To establish and manage forest
plantations to meet the growing demand for high quality wood products and ii) To
sequester carbon dioxide through forest planting, the project is also aimed:
i) To promote environmental conservation such as soil conservation, protection of water
sources and enhancement of biodiversity through the protection and management of
existing indigenous flora and fauna and where possible enrichment planting with
indigenous tree species.
ii) To facilitate socio-economic development of the local communities through:
- Promotion of tree planting/afforestation activities in the local communities;
- Provision of employment opportunities;
- Support for development initiatives for the communities through the sale of carbon
credits;
- Establishing of community woodlots in the villages around BFP on community owned
land, with the objective of increasing fuel and timber supply within the communities;
- Designating 10% of the carbon revenues generated by the project to community
development initiatives in the villages surrounding BFP;
ii) To develop local infrastructure including roads, health centers, water supply and
communication systems.
Comment
Offsets for our factories in Malaysia and Jordan as well as offices and fleet in Jordan for
the PAS2060 carbon neutrality verification process.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
222
Project type
Reforestation
Type of mitigation activity
Carbon removal
Project description
Project VCU 959: Uruguay, Cerro Chato/ Valentines an Cerro Chato/ Valentines and
Regis/ Garao Regions, ‘Guanaré’ Forest Plantations on degraded grasslands under
extensive grazing, Agriculture Forestry and Other Land Use. The project is performed
on land previously under extensive grazing by beef cattle, on which forest plantations for
obtaining high-value, long-lived timber products and for sequestering large amounts of
carbon dioxide from the atmosphere will be established.
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
4,237
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2015
Were these credits issued to or purchased by your organization?
Purchased
Credits issued by which carbon-crediting program
VCS (Verified Carbon Standard)
Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Investment analysis
Barrier analysis
Market penetration assessment
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Market leakage
Provide details of other issues the selected program requires projects to
address
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
223
The project activity is implemented on degraded land, which is expected to continue to
degrade in the absence of the project and hence the land cannot be expected to revert
to a non-degraded state without human intervention. Forests consist of Eucalyptus
grandis and to a lesser extent Eucalyptus globulus, Eucalyptus dunnii, Eucalyptus
maidenii and Pinus taeda plantations managed with a rotation length up to 22 years,
forest to be re-planted upon clear-cut. The plantations are established on land
previously used for cattle grazing.
The main objectives of the project activity are wood production, land restoration and
carbon sequestration through afforestation. All practices will be compatible with FSC
standard for sustainable forest management.
On top of the main purpose, the project will result in a significant contribution to
sustainable development of Uruguay, mainly through: i) increased employment and
quality of employment; ii) rural development (decentralization); iii)
increased gross value of production; iv) improved fiscal balance; v) biodiversity
preservation and vi) improvement and preservation of soil quality.
Comment
Offsets for our Head Office and research centre in the UK cover emissions from fuel use
on site and by fleet vehicles, electricity use, employees commuting and business travel.
Project type
Agroforestry
Type of mitigation activity
Carbon removal
Project description
Project VCU 1162: China, Jangxi, Jiangxi Province Le'an County Forest Farm Carbon
Sink Project. The Project involves the improved forestry management, such as
conversion of logged to protection forest. The forestry management converts logged to
Protected Forest (LtPF)
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
20,000
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2015
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
224
Were these credits issued to or purchased by your organization?
Purchased
Credits issued by which carbon-crediting program
VCS (Verified Carbon Standard)
Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Investment analysis
Market penetration assessment
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Market leakage
Provide details of other issues the selected program requires projects to
address
The implementation of the project activity includes the Improved Forest Management
(IFM) of the forests in from the conversion of logged to protected forest.
The project activity will contribute to the environment (biodiversity conservation and soil
erosion control), thus contribute to sustainable development.
Comment
Offsets for Carbon Neutrality on the back of an assured LCA and verified by third party.
Project type
Agroforestry
Type of mitigation activity
Carbon removal
Project description
Project VCU 1664: China, Yunnan province, Xishuangbanna Improved Forest
Management Project.
The project area is tropical secondary forest on agricultural land. The main object of the
project is to improve the forest coverage rate, protect local ecological environment,
reduce carbon emissions and carbon sequestration by enhance the management level
and converse logged to protected forest within the project area. The implementation of
the project will result in significant carbon sequestration and improve the sustainable
development of ecological system.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
225
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
54,000
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2015
Were these credits issued to or purchased by your organization?
Purchased
Credits issued by which carbon-crediting program
VCS (Verified Carbon Standard)
Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Investment analysis
Market penetration assessment
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Market leakage
Provide details of other issues the selected program requires projects to
address
The project activity will significantly improve the forest management conditions within
the project area and benefit local ecological environment. The implementation of the
project will not only achieve a reliable measurable carbon sequestration by reducing
commercial timer, but also contribute to sustainable development of the local
community, host country by means of:
- As one of the most precious ecological resources, forest is key to biodiversity and all
life forms. The protection of local forest will enrich the biodiversity and provide more
opportunity for adaptive response to natural challenges and economic development
(e.g. climate change and new medical discoveries);
- Offer job opportunities. Instead of casual labour demand for forest timber, the
protected forest will create some employment opportunities for forest management. The
related training process will improve the skill of the local employees.
- Meet the strategy development plan of host country and local area. After the
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
226
implementation of the project, the increasing forest coverage rate will benefit the local
environmental condition by producing more oxygen and absorb more greenhouse gas.
Comment
Offsets for Carbon Neutrality on the back of an assured LCA and verified by third party.
Project type
Agroforestry
Type of mitigation activity
Carbon removal
Project description
Project VCU 1715: China, Inner Mongolia Autonomous, Inner Mongolia Wu‘erqihan IFM
(conversion of logged to protected forest), Agriculture Forestry and Other Land Use.
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
11,704
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2013
Were these credits issued to or purchased by your organization?
Purchased
Credits issued by which carbon-crediting program
VCS (Verified Carbon Standard)
Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Investment analysis
Barrier analysis
Market penetration assessment
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
227
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Market leakage
Provide details of other issues the selected program requires projects to
address
The implementation of the project activity converses the trees to protected forest. The
species involved in the project are Birch and Larch.
The project activity will contribute to the environment (biodiversity conservation and soil
erosion control), thus contribute to sustainable development.
Comment
Offsets for our manufacturing facilities in Poland, Argentina, Brazil, Chile, Serbia and
Viet Nam, GLT in Mexico as well as for our offices and fleet in Colombia, Japan and Viet
Nam for the PAS2060 carbon neutrality verification process.
Project type
Agroforestry
Type of mitigation activity
Carbon removal
Project description
Project VCU 1718: China, Inner Mongolia Autonomous, Inner Mongolia Keyihe IFM
(conversion of logged to protected forest) Project.
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
481
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2013
Were these credits issued to or purchased by your organization?
Purchased
Credits issued by which carbon-crediting program
VCS (Verified Carbon Standard)
Method(s) the program uses to assess additionality for this project
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
228
Consideration of legal requirements
Investment analysis
Market penetration assessment
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Market leakage
Provide details of other issues the selected program requires projects to
address
The implementation of the project activity converses the trees to protected forest. The
species involved in the project are Birch and Larch.
The project activity will contribute to the environment (biodiversity conservation and soil
erosion control), thus contribute to sustainable development.
Comment
Offsets for our factory in Argentina for the PAS2060 carbon neutrality verification
process.
Project type
Agroforestry
Type of mitigation activity
Carbon removal
Project description
Project VCU 1935: China, Hubei Province, Hubei Hongshan IFM (Conversion of Logged
to Protected Forest), Agriculture Forestry and Other Land Use.
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
4,859
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2015
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
229
Were these credits issued to or purchased by your organization?
Purchased
Credits issued by which carbon-crediting program
VCS (Verified Carbon Standard)
Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Investment analysis
Market penetration assessment
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Market leakage
Provide details of other issues the selected program requires projects to
address
The implementation of the project activity converses the trees to protected forest. The
species involved in the project are Oak, Masson Pine, Broad- Leaved Mixed Forest and
Coniferous and Broad-Leaved Mixed Forest.
The project activity will contribute to the environment (biodiversity conservation and soil
erosion control), thus contribute to sustainable development.
Comment
Offsets for our manufacturing facilities in Hungary, Argentina, Brazil, Chile and Sweden,
as well as GLT in Brazil for the PAS2060 carbon neutrality verification process.
Project type
Agroforestry
Type of mitigation activity
Carbon removal
Project description
Project VCU 1935: China, Hubei Province, Hubei Hongshan IFM (Conversion of Logged
to Protected Forest), Agriculture Forestry and Other Land Use.
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
47,047
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
230
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2018
Were these credits issued to or purchased by your organization?
Purchased
Credits issued by which carbon-crediting program
VCS (Verified Carbon Standard)
Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Investment analysis
Market penetration assessment
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Market leakage
Provide details of other issues the selected program requires projects to
address
The implementation of the project activity conserves the trees to protected forest. The
species involved in the project are Oak, Masson Pine, Broad- Leaved Mixed Forest and
Coniferous and Broad-Leaved Mixed Forest.
The project activity will contribute to the environment (biodiversity conservation and soil
erosion control), thus contribute to sustainable development.
Comment
Offsets for Carbon Neutrality on the back of an assured LCA and verified by third party.
Project type
Agroforestry
Type of mitigation activity
Carbon removal
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
231
Project description
Project VCU 2322: Canada, Monet Forest Conservation Project, Agriculture Forestry
and other land use
VCS Improved Forest Management (IFM) – Logged to Protected Forest (LtPF)
conservation project aims at preserving intact the whole forest property by preventing
logging on a productive forest area.
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
2,700
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2016
Were these credits issued to or purchased by your organization?
Purchased
Credits issued by which carbon-crediting program
VCS (Verified Carbon Standard)
Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Investment analysis
Market penetration assessment
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Market leakage
Provide details of other issues the selected program requires projects to
address
The conservation project in mostly dedicated for allowing the biomass of standing trees
to fix more CO2 than the baseline scenario. In line with applicable regulations, the forest
is managed following sustainability criteria, considering the following elements:
• The preservation of biological diversity;
• The maintenance and improvement of the condition and productivity of forest
ecosystems;
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
232
• The conservation of soil and water;
• The maintenance of forest ecosystem contributions to major ecological cycles;
• The maintenance of the many socio-economic benefits society derives from forests;
and
• The consideration, in making development choices, of the values and needs
expressed by the populations concerned.
Comment
Offsets for our offices, warehousing facilities and fleet in Canada for the PAS2060
carbon neutrality verification process.
Project type
Agroforestry
Type of mitigation activity
Carbon removal
Project description
Project VCU 2361: Paraguay, San Pedro, Canindeyu. Afforestation in cooperation with
local landowners for Forestal San Pedro S.A
The project aims to establish and manage sustainable forest plantations for the
sequestration of carbon and the production of quality timber in Eastern Paraguay.
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
5,000
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2015
Were these credits issued to or purchased by your organization?
Purchased
Credits issued by which carbon-crediting program
VCS (Verified Carbon Standard)
Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Investment analysis
Market penetration assessment
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
233
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Provide details of other issues the selected program requires projects to
address
The project activity will contribute to the environment (biodiversity conservation and soil
erosion control), thus contribute to sustainable development.
Comment
Offsets for Carbon Neutrality on the back of an assured LCA and verified by third party.
Project type
Reforestation
Type of mitigation activity
Carbon removal
Project description
Project VCU 2404: India, Odisha, Andhra Pradesh and Chhattisgarh, Reforestation of
degraded land by Mangalam Timber Products Limited, Agriculture Forestry and Other
Land Use.
The project activity involves carbon sequestration of degraded lands through
reforestation activities. Many discrete parcels of degraded land that is owned by small
and poor farmers/ tribal who do not have the capability of plantation without any external
financial support and technical guidance are reforested under Farm Forestry Scheme.
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
3,724
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2001
Were these credits issued to or purchased by your organization?
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
234
Purchased
Credits issued by which carbon-crediting program
VCS (Verified Carbon Standard)
Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Investment analysis
Barrier analysis
Market penetration assessment
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Market leakage
Provide details of other issues the selected program requires projects to
address
Besides increasing the forest cover and improvement in biodiversity in the area, the
project activity would also provide enhanced sources of livelihood and income in rural
areas by generating large employment opportunities.
The project has been undertaken to protect the land which was severely degraded or
degrading. Prior to the project activity the lands were wastelands due to severe soil
erosion without considerable flora. The reforestation under the proposed project activity
is on degraded land which was lying barren since decades. The farmers who own the
land are mainly poor farmers/tribal who do not have the capability of growing plantation
of their own without any external financial support and technical guidance. In absence of
the project activity the land would have continued as degraded land or degrading would
continue further.
Comment
Offsets for our manufacturing facility, offices and fleet in Switzerland and Sri Lanka as
well as GLT in Sri Lanka for the PAS2060 carbon neutrality verification process.
Project type
Agroforestry
Type of mitigation activity
Carbon removal
Project description
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
235
Paroo Shire, Queensland (Australia) - Werai Park Forest Regeneration (ERF103091).
Human Induced Regeneration (HIR).
The aim of HIR projects is to establish permanent native forests through assisted
regeneration from in-situ seed sources (including rootstock and lignotubers) on land that
was cleared of vegetation and where regrowth was suppressed for at least 10 years
prior to the project having commenced.
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
1,300
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2022
Were these credits issued to or purchased by your organization?
Purchased
Credits issued by which carbon-crediting program
Emissions Reduction Fund of the Australian Government
Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Provide details of other issues the selected program requires projects to
address
The project activity will contribute to the environment (biodiversity conservation and soil
erosion control), thus contribute to sustainable development.
Comment
Offsets for our offices, warehousing facilities and fleet in Australia for the PAS2060
carbon neutrality verification process.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
236
Project type
Agroforestry
Type of mitigation activity
Carbon removal
Project description
Project ACR509: US, Florida, Levy County, Kite Hammock IFM (Improved Forest
Management) project .
Kite Hammock IFM has employed a conservation easement that limits harvest within the
easement boundaries to 15% of the forestland annually. Implementing the management
plan to no harvest in the project boundaries will enhance the Carbon stock for the
present and future.
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
6,498
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2017
Were these credits issued to or purchased by your organization?
Purchased
Credits issued by which carbon-crediting program
ACR (American Carbon Registry)
Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Barrier analysis
Market penetration assessment
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Market leakage
Provide details of other issues the selected program requires projects to
address
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
237
The project is supposed enhance water quality while securing the long-term viability and
integrity of the hardwood structure that provides a significant groundwater recharge
area. The project will also serve as a connecting corridor for Black Bear, white tailed
deer and home for the gopher tortoise. The tall, native pines provide nesting habitat for
the Migratory Swallow-tailed Kite for which the project is named.
Thus, the project contributes to SDG goals: 06: Clean Water and Sanitation;13: Climate
Action; 15: Life on Land
Comment
Offsets for our factories and R&D centre in US for the PAS2060 carbon neutrality
verification process.
Project type
Agroforestry
Type of mitigation activity
Carbon removal
Project description
Project ACR595: US, Kentucky, Anew - Elk Forestry Project
The project activity is improved forest management, with Elk Forest’s forest
management practices representing a significant improvement in the carbon storage
and conservation value.
The project ensures long-term sustainable management of the forests, which could
otherwise undergo significant commercial timber harvesting.
Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
6,000
Purpose of cancellation
Voluntary offsetting
Are you able to report the vintage of the credits at cancellation?
Yes
Vintage of credits at cancellation
2020
Were these credits issued to or purchased by your organization?
Purchased
Credits issued by which carbon-crediting program
ACR (American Carbon Registry)
Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
238
Barrier analysis
Market penetration assessment
Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation
Potential sources of leakage the selected program requires this project to
have assessed
Activity-shifting
Market leakage
Provide details of other issues the selected program requires projects to
address
By committing to maintain forest CO2 stocks above the baseline level, the project will
provide significant climate benefits through carbon sequestration. The project focuses
on sustainable, natural forest growth and maintenance harvests for essential activities,
recreation, wildlife habitat and forest health. Thus, the project activity will contribute to
the environment (biodiversity conservation and soil erosion control).
Comment
Offsets for Carbon Neutrality on the back of an assured LCA and verified by third party.
C11.3
(C11.3) Does your organization use an internal price on carbon?
Yes
C11.3a
(C11.3a) Provide details of how your organization uses an internal price on carbon.
Type of internal carbon price
Shadow price
How the price is determined
Social cost of carbon
Benchmarking against peers
Other, please specify
BAT used as reference a) the EU’s Emissions Trading Scheme b) World Bank
trends, c) Joseph Stiglitz social cost of carbon assumptions
Objective(s) for implementing this internal carbon price
Change internal behavior
Drive energy efficiency
Drive low-carbon investment
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
239
Identify and seize low-carbon opportunities
Stakeholder expectations
Stress test investments
Reduce supply chain emissions
Scope(s) covered
Scope 1
Scope 2
Pricing approach used – spatial variance
Uniform
Pricing approach used – temporal variance
Evolutionary
Indicate how you expect the price to change over time
2022 set at £60 per tCO2 and rise to £82.50 in 2025 and £120 for 2030.
Prices are reviewed annually and issued by the Group's Centre of excellence for use by
the business.
A number of sources are used to estimate ICP prices, including initiatives under
UNCFFF (International Emissions Trading, Joint Implementation and Clean
Development Mechanism, New Approaches under Article 6 of the Paris Agreement),
and outside of the UNFCCC including (The voluntary Carbon market, Result-based
Climate Finance).
Actual price(s) used – minimum (currency as specified in C0.4 per metric ton
CO2e)
60
Actual price(s) used – maximum (currency as specified in C0.4 per metric ton
CO2e)
60
Business decision-making processes this internal carbon price is applied to
Capital expenditure
Operations
Mandatory enforcement of this internal carbon price within these business
decision-making processes
Yes, for some decision-making processes, please specify
Used for all Operations related capital investments (being the most significant
proportion of Group capex) with future roll out planned for other capex items in
2023.
Explain how this internal carbon price has contributed to the implementation
of your organization’s climate commitments and/or climate transition plan
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
240
The application of the internal carbon price ensures the NPV and Business Case of
proposed investment considers costs of carbon offset for emissions being generated &
assists in the prioritisation of projects that support the Group's objectives in reducing
carbon emissions.
This process not only ensured that the NPV of projects delivered a financial return (after
accounting for the cost of carbon) but also facilitated the application of marginal
abatement considerations and project prioritisation of the Group's ESG related capital
expenditure (which amounted to £27mn in 2022), ensuring those projects that delivered
the most beneficial carbon reductions were prioritised and progressed.
Concurrently, as part of the Group's emission target delivery plans, glidepaths of
planned emission reduction have been developed and are periodically reviewed by
Senior management throughout the course of the year. The application of ICP and
emission impact tracking enables visibility of the impact of new projects (adverse and
favourable) and allows the glidepaths to be updated accordingly.
In addition, to further supplement the ICP process, a balance scorecard was designed to
appraise investment cases to consider their impact across our broad environmental and
social objectives (i.e. not just considerations of emissions impact, but also considering
impact on water, waste, and our social agenda). The revised process was trialled in
2022 for all Operations Capital expenditure which enabled the approach to be calibrated
before the planned roll out to all BAT capex investment cases in 2023.
C12. Engagement
C12.1
(C12.1) Do you engage with your value chain on climate-related issues?
Yes, our suppliers
Yes, our customers/clients
Yes, other partners in the value chain
C12.1a
(C12.1a) Provide details of your climate-related supplier engagement strategy.
Type of engagement
Innovation & collaboration (changing markets)
Details of engagement
Collaborate with suppliers on innovative business models to source renewable energy
% of suppliers by number
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
241
100
% total procurement spend (direct and indirect)
15.9
% of supplier-related Scope 3 emissions as reported in C6.5
43.2
Rationale for the coverage of your engagement
On Information collection, we require that 100% of our tobacco suppliers participate in
the Sustainable Tobacco Programme, an industry-wide program where, among several
other topics, reporting on climate change data is required. This includes 100% of fuel
types and its amount used to cure the tobacco crops. This is one of the data used to
calculate the Group Scope 3 emissions. Once a year, we also request similar
information to the suppliers participating in our Thrive Programme (representing over
80% of the tobacco purchased by volume in 2022), where they need to provide more
granular information on several additional data points associated with CO2e emissions,
such as fuels and energy used in the farm, mileage covered to transport tobacco from
the farms to the buying points and distance covered to distribute crop agri inputs.
On Innovation and collaboration, our Global Leaf Agronomy Development Centre in
Brazil is also crucial for providing technological data-driven and science-based carbon-
smart solutions. These are then rolled-out to our 81,000+ contracted farmers by our
Extension Services of expert field technicians. The centre conducts world-class
research – from development and testing in the lab to real-world field trials with farmers
– often in partnership with highly respected academic and research institutions. We test
and deploy these technologies in the producing countries, not just in BAT Group's own
leaf operations but also in partnerships with third party suppliers and entities. To support
this, the centre established a new Leaf Up innovation programme in 2020. In 2021 we
had identified the start-ups to enhance our existing capabilities and develop new
technologies and practices that also support carbon-smart farming and started to run the
proof-of-concepts on cutting-edge innovations. In 2022 we finalized the proof of
concepts pilots and validated some technologies that now is in proof of application
phase or in final development phase in areas such as longer-term weather forecasting,
smart irrigation technology, remote sensing monitoring for deforestation, curing virtual
simulator training. We plan to make such technologies available to all our field
technicians. The Leaf Up program started to integrate new projects to strengthen and
bring access to more cutting-edge technologies.
Impact of engagement, including measures of success
Approximately one third of our Scope 3 CO2e emissions is in our tobacco supply chain.
The majority comes from using fuels to cure tobacco leaves. In 2022 we achieved 83%
of our annual leaf volumes cured using renewable fuels and methods, such as
sustainable wood, biomass and sun curing, which is monitored through our Thrive
program in order to track our measure of success. We’ve introduced our directly
contracted farmers to innovative, fuel-efficient curing technologies. We’re also focused
on eliminating the use of coal as a fuel for curing, which represented less than 10% of
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
242
the volume in 2021 and less than 6% in 2022. One of the ways to achieve these
reductions is through engagement with farmers, bringing new fuel alternatives for the
curing process, as for example in Vietnam where they replaced coal with firewood. We
are working on trials that show 40% emission reduction when compared to wood.
Another initiative is the automation of traditional curing barns (160 units) in Pakistan,
where a monitoring device can help the reduction of fuel up to 12% compared to the
controls. This technology is being tested in Bangladesh as well. The results will help us
to prioritise investments for driving further emissions reduction. We also have a carbon
smart farming program that takes a strategic approach focused on both reducing
emissions from tobacco farming and, crucially, leveraging the positive effect agriculture
could have in removing carbon from the atmosphere. For the past two years, we have
been working in partnership with a specialist consultancy to validate this approach and
monitor, report and verify the results. We plan to develop a system that can be easily
applied by small farmers. The systems will form the basis of our carbon-smart farming
programme, empowering our directly contracted farmers to incorporate carbon-smart
farming into their business model. It will also provide us with verified data to measure
progress against our 2050 ambition and to validate the impact of different carbon-smart
strategies. In 2022, the pilot was expanded to Bangladesh, Mexico, and Pakistan,
starting with establishing partnerships with specialized local institutions and
representative selection of farmers for the planned activities.
Comment
Addressing climate risks and opportunities across our value chain is key to the
sustainability of our business. Given our supply chain (Scope 3) emissions represent
around 91% of our total carbon footprint, we are engaging with our suppliers on various
ways, measuring performance against indicators and asking data for tracking
improvements, as well as deploying technologies that can support reduction in
emissions. In 2019-2020 we conducted a climate change study involving 10 of our
major tobacco-leaf-sourcing countries and have cascaded the results and the
recommended key actions to mitigate risks to the farmers in these locations. In our
tobacco supply chain, we are helping our directly contracted farmers and those of our
strategic suppliers to reduce Scope 3 emissions through more efficient curing
technologies, smarter use of fertilisers and increasing yields with a higher amount of
tobacco harvested per hectare (kilos per hectare). These all contribute to reduced
emissions. Our Global Leaf Agronomy Development Centre continues to develop
innovative curing technologies and a range of alternative fuels that help reduce the
carbon impact of our directly contracted farmers. Some examples are i. Improving
energy efficiency: Upgrading curing barns to automated ‘loose leaf’ models can enable
at least a 30% reduction in fuel use; ii. Using a range of alternative and more
sustainable curing fuels, including the use of sugarcane bagasse briquettes in Kenya,
jute sticks, rice husk briquettes and other agricultural waste in Bangladesh, rice paddy
husks in Sri Lanka, wood biomass pellets in India, to mention a few; iii. Trials to
understand the feasibility to replace LPG and/or diesel gas by renewable sources like
wood or pellets are under technical discussion in Venezuela, Chile, and Mexico.
Acquisition of new curing barns are being driven to move to the use of wood instead of
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
243
gas in Mexico Also alternatives to eliminate the use of coal in curing to a sustainable
and renewable source of fuel.
Type of engagement
Engagement & incentivization (changing supplier behavior)
Details of engagement
Climate change performance is featured in supplier awards scheme
% of suppliers by number
19.7
% total procurement spend (direct and indirect)
83.7
% of supplier-related Scope 3 emissions as reported in C6.5
45.7
Rationale for the coverage of your engagement
BAT has introduced a set of questionnaires related to ESG for the supplier selection
process that should be used for Procurement Strategic Sourcing since 2021.Within BAT
procurement process, any contract award in excess of £150k requires a detailed
assessment of supplier’s capability, including ESG performance, due to the potential risk
posed by supplier relationships of this size.
As such, 19.7% of our non-tobacco suppliers by number, 83.7% by total group spend,
and 45.7% of total emissions of directs purchased good and services are covered by
this process. The ESG questionnaire assesses supplier performance across science-
based target status, Life Cycle Analysis capability, GHG Emissions Reporting,
renewable energy performance and overall emissions reduction targets. Through this
we are building supplier capability, and working to progress through defined phases of
capability, ensuring progress so suppliers are ready to be handed over into the overall
procurement process.
Impact of engagement, including measures of success
The ESG supplier questionnaire was designed to raise the profile of ESG requirements
by embedding them as a mandatory part of BAT’s supplier selection process for
strategic sourcing. This introduction has allowed us to engage more effectively with our
suppliers during the commercial process and where appropriate drive improvement
actions that can be embedded. For instance, in 2022, BAT undertook steps to establish
baseline of our strategic board supplier’s ESG maturity via the supplier selection
process. Based on this, the group of suppliers’ detailed understanding of ESG
credentials which includes climate change metrics such as science-based targets, Life
Cycle Analysis, Emission per MT were obtained via monthly engagement sessions. This
engagement has driven completion of Life Cycle Analysis in 2022 for this group of
strategic suppliers. As a result, this information allows BAT to factor in ESG implications
in its sourcing decisions.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
244
Comment
As we increase the weighting of ESG performance in supplier awards, and enhance the
contractual requirements around the stated performance, we anticipate future reductions
of GHG emissions as part of our ongoing commercial processes. Additionally, we will
roll-out the specific supplier capability build program to the wider business, with the aim
of covering up to 95% of emissions not just through the supplier award process, but also
the capability framework. We are confident this approach will contribute to our progress
towards our corporate targets, and have received external recognition of the approach,
e.g., Gartner, mentioned BAT’s approach as best in class during their Supply Chain
Symposium/Xpo in June ‘23
Type of engagement
Innovation & collaboration (changing markets)
Details of engagement
Other, please specify
Agricultural supply chain collaboration
% of suppliers by number
84
% total procurement spend (direct and indirect)
13.4
% of supplier-related Scope 3 emissions as reported in C6.5
36.3
Rationale for the coverage of your engagement
BAT collaborates with leaf suppliers to reduce climate impacts caused by the
agricultural supply chain. The 84% refers to tobacco suppliers and our expectation is to
achieve close to 100% in 2023. In 2021, building on our decades of experience in
sustainable agriculture we developed a new carbon smart farming programme. In 2022
we continue to carry out research work on technologies, new curing technologies and
best soil management practices to address issues and bring solution on carbon
removals and reductions in partnership with farmers. Some of these good practices and
technologies are already being implemented. This takes a strategic approach focused
on both reducing emissions from tobacco farming and crucially leveraging the positive
effect agriculture could have in removing carbon from the atmosphere. As an example,
we are running a project called ‘Carbon performance in agricultural production models’
in 4 strategic markets, Bangladesh, Brazil, Pakistan and Mexico, which represents 49%
of our emissions across our leaf supply chain, in order to define the best soil
management practices for carbon removal. Approximately 1/3 of our Scope 3 CO2e
emissions is in our Tobacco Supply Chain. The majority comes from using fuel to cure
tobacco leaves.
Impact of engagement, including measures of success
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
245
The measure of success is the year-on-year reduction on farmer’s emissions as well as
the ability to cascade best practices to minimise emissions via soil management as an
example. To assess this conformance, we use Thrive that covers 84% of our volume
base, 4% increase when comparing to previous year, and we check performance year
on year. Regarding emissions, 2021 decreased by more than 10% when compared to
2020 emissions and we continue working through the Global Leaf Agronomy
Development team to identify the best combination of curing technology and fuel types
to help halve our emissions by 2030.
Comment
C12.1b
(C12.1b) Give details of your climate-related engagement strategy with your
customers.
Type of engagement & Details of engagement
Education/information sharing
Run an engagement campaign to education customers about your climate change
performance and strategy
% of customers by number
100
% of customer - related Scope 3 emissions as reported in C6.5
100
Please explain the rationale for selecting this group of customers and scope
of engagement
Climate related issues are becoming more important to consumers as knowledge about
these issues increases. This can impact consumer sentiment and preference for
purchasing products from companies. Therefore, it is important to communicate our
climate change performance and strategy to consumers and demonstrate that we are
taking action to reduce climate impacts. We publish our educational resources on our
website which enables all of consumers to access this information. Our online platforms
and corporate reports describe our strategy, management approach and performance
on climate-related issues. Communication campaigns also highlight verified climate
related credentials of our activities and product portfolio. For example, Vuse has
reduced its carbon emissions by c.55% (as of March 2023) through its sustainability
initiatives since launched in 2019, whilst offsetting the remaining 45%. We also engage
with customers directly through our new category device take back scheme.
Impact of engagement, including measures of success
We measure the success of our education and information sharing in two ways. 1)
Providing timely and relevant information on our climate strategy on our online platforms
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
246
and external reports. In practice this means publishing new topical reports for external
stakeholders e.g., a Low Carbon Transition Plan, and 2) Measuring the volume of traffic
to climate-related online resources. An increasing trend in traffic volume is our measure
for success.
Over the last year we have updated climate-related information on BAT.com. This
includes the publication of our Low Carbon Transition Plan, publishing our 2022 TCFD
reporting and CDP Climate Change Disclosure, meeting our success criteria for 1.
Downloads of our combined ESG report increased by 202% compared to our 2021 ESG
Report, between the time periods of March to June for each year, meeting our success
criteria for 2. This time period has been selected due to the publication date of our 2022
report in February and the time the analysis took place in June.
Type of engagement & Details of engagement
Collaboration & innovation
Other, please specify
Provide all consumers with a means of responsible disposal of Vapour & THP
Devices
% of customers by number
100
% of customer - related Scope 3 emissions as reported in C6.5
100
Please explain the rationale for selecting this group of customers and scope
of engagement
To provide consumers with a means of disposing their Vapour and THP (tobacco
heating products) devices responsibly, we aimed to launch a take back scheme and
defined our measure of success as availability of such a scheme in all markets where
we sell devices. The take back scheme provides a complimentary means for customers
to return our devices (any BAT product that contains a battery or printed circuit board –
including Vuse Go) for responsible disposal – regardless of condition.
Impact of engagement, including measures of success
In 2021 and 2022 we continue to be committed to having take back schemes in all
markets where we sell New Category devices. In 2022, we fulfilled this commitment and
had such a scheme in place in 50 markets. We recognise the need to improve
customer participation. For example, BAT Romania are running a year-long initiative
where a tree is planted for every glo device responsibly disposed via the local take back
scheme. In 2023, we refreshed our internal minimum standard that Markets will need to
adhere to. We aim to continue to review and improve how we manage our product
waste, based on our learnings and supported by emerging technologies.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
247
C12.1d
(C12.1d) Give details of your climate-related engagement strategy with other partners
in the value chain.
Emissions from our fleet makes up 20% of our Scope 1 and 2 emissions in 2022. This means
our fleet operatives and partners are an important group in our value chain to engage with on
climate related issues. We are working with our fleet partners to transition to electric battery,
plug-in hybrid and self-charging hybrid vehicles, for example, in Australia, Italy, the U.S., South
Korea and Jordan. While we transition our fleet, we are also reducing associated emissions
through several initiatives. We optimise travel routes through telematic systems in vehicles.
These systems help alert drivers and us of improvement actions in driving that are designed to
enhance both road safety, as well as fuel efficiency, which could lead to reduced emissions.
Between 2020 and 2022, these combined efforts have reduced fleet emissions by around 10%.
C12.2
(C12.2) Do your suppliers have to meet climate-related requirements as part of your
organization’s purchasing process?
Yes, climate-related requirements are included in our supplier contracts
C12.2a
(C12.2a) Provide details of the climate-related requirements that suppliers have to
meet as part of your organization’s purchasing process and the compliance
mechanisms in place.
Climate-related requirement
Complying with regulatory requirements
Description of this climate related requirement
BAT recognises that we rely on our suppliers for the delivery of many important products
and services and for assistance in delivering corporate sustainability commitments.
We are committed to pursuing best practice in environmental management and reducing
the impacts of the Group on the natural environment, both in our own operations and in
our wider value chain. We believe that, while underpinned by a contractual relationship,
this reliance needs to be based on a bond of trust between BAT and suppliers.
We have enhanced our Supplier Code of Conduct (SCoC) and stated our expectations
for suppliers to identify, understand and actively work towards avoiding, minimising, and
mitigating their impacts on the natural environment. In the SCoC, we underline the
importance of acting together with trusted suppliers to deliver our ESG policy. Suppliers
are an extension of BAT’s business, and this updated SCoC strengthens the principles
of working together and understand the standards and behaviours expected when
working with BAT.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
248
The enhanced SCoC has been approved and will be deployed in 2023/24. We expect
our ALL suppliers to meet these commitments and ensure that their employees,
partners and subcontractors will do the same. Both parties should be open and
transparent with each other and report any instances of non-compliance. In these
circumstances, the first step is for BAT and the supplier to discuss and, where
appropriate, agree suitable remedial actions.
% suppliers by procurement spend that have to comply with this climate-
related requirement
100
% suppliers by procurement spend in compliance with this climate-related
requirement
100
Mechanisms for monitoring compliance with this climate-related requirement
Supplier self-assessment
Response to supplier non-compliance with this climate-related requirement
Suspend and engage
Climate-related requirement
Climate-related disclosure through a public platform
Description of this climate related requirement
BAT has a stated intention of prompting suppliers to act on measuring and managing
GHG emissions reductions via public transparency.
Some of our suppliers were invited to disclose to CDP (Carbon Disclosure Project)
based their contribution to BAT’s Scope 3 emissions. For impacted suppliers the
requirement is an annual climate disclosure through the completion of the CDP
questionnaire. These disclosures would be required to be made available via the CDP
website.
210 of our highest impact suppliers, or 60% scope 3 emissions coverage, were invited
to disclose. Through a rigorous supplier engagement process between May-Sept 2022
BAT was able to maximize the supplier response rate. It was critical that we supported
suppliers’ disclosure, so we included a supplier education programme during the ’22
disclosure cycle i.e. capacity build webinars. This helped not to only maximise response
rate but to also improve the quality of the submissions.
What we got from this: We achieved a 94% response rate from our invited suppliers and
were classified as Supplier Engagement Leader by CDP.
How have we used this: Using the CDP data we benchmarked our suppliers’ maturity
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
249
and created a framework that has allowed us to have a focussed engagement with our
suppliers and start a dialogue at an appropriate level.
% suppliers by procurement spend that have to comply with this climate-
related requirement
70
% suppliers by procurement spend in compliance with this climate-related
requirement
65
Mechanisms for monitoring compliance with this climate-related requirement
Supplier self-assessment
Off-site third-party verification
Response to supplier non-compliance with this climate-related requirement
Retain and engage
Climate-related requirement
Setting a science-based emissions reduction target
Description of this climate related requirement
As part of our recently approved science-based targets (SBTs) (1.5°C Pathway), BAT
has committed that 20% of its suppliers by spend covering Purchased Goods &
Services will set SBTs by 2025.
Through CDP disclosure and continued supplier engagement we obtained a baseline of
our suppliers' science-based target status and preparedness for submission.
We have driven SBTs through our structured engagement framework, ‘A Better
Tomorrow, Together’. We deployed a phased emissions maturity programme that
requires suppliers to have SBTs in place to exit Stage 2 (Efficiency) and enter the 3rd
and final phase (Integration). We have deployed or have plans to deploy this structured
framework across 55% of our emissions.
Furthermore, we created a set of Climate Supplier Minimum Standards and included a
requirement for suppliers relating to SBTs.
Currently 12% of suppliers in our ‘A Better Tomorrow, Together’ programme have an
approved SBTs. A we are encouraging and supporting many more suppliers to start the
process.
Our Minimum Standard has been set based on a fiscal threshold of £10m spend. By
2025 we expect to have all suppliers at Stage 3 (Submit) in the science-based target
application process.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
250
% suppliers by procurement spend that have to comply with this climate-
related requirement
20
% suppliers by procurement spend in compliance with this climate-related
requirement
12
Mechanisms for monitoring compliance with this climate-related requirement
Certification
Supplier scorecard or rating
Response to supplier non-compliance with this climate-related requirement
Retain and engage
Climate-related requirement
Climate-related disclosure through a non-public platform
Description of this climate related requirement
It is BAT policy that any contract awarded more than £150k requires an assessment of
supplier’s ESG capability. More than 80% of BAT’s Scope 3 emissions are covered
under this procurement policy.
ESG criteria is present in the selection process, but we wanted to enhance the
questions specifically on Climate. We also wanted to mandate full compliance in the
application of the questionnaire. Finally, we wanted to review the weighting of ESG in
the overall supplier selection process.
We included 15 focussed questions on emissions reduction, assessing performance
across SBTi, LCA capability, Emissions Reporting, renewable energy performance and
overall emissions reduction targets. We weighted the total ESG allocation as follows: E
40%, S 40%, G 20%. Finally, we mandated that all questions must be answered and
scored by the Procurement team.
We have now mandated a 10% weighting for ESG across total RFx scoring and for our
New Categories business we have uplifted that weighting to 20% due to the end of life
of New Category products.
We trained the procurement team on the refreshed RFX document and have been
monitoring compliance in its application
% suppliers by procurement spend that have to comply with this climate-
related requirement
100
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
251
% suppliers by procurement spend in compliance with this climate-related
requirement
100
Mechanisms for monitoring compliance with this climate-related requirement
Supplier self-assessment
Supplier scorecard or rating
Response to supplier non-compliance with this climate-related requirement
Exclude
C-AC12.2/C-FB12.2/C-PF12.2
(C-AC12.2/C-FB12.2/C-PF12.2) Do you encourage your suppliers to undertake any
agricultural or forest management practices with climate change mitigation and/or
adaptation benefits?
Yes
C-AC12.2a/C-FB12.2a/C-PF12.2a
(C-AC12.2a/C-FB12.2a/C-PF12.2a) Specify which agricultural or forest management
practices with climate change mitigation and/or adaptation benefits you encourage
your suppliers to undertake and describe your role in the implementation of each
practice.
Management practice reference number
MP1
Management practice
Integrated pest management
Description of management practice
Solutions vary according to the growing region, type of property, options available from
market to market, eventually property by property.
Your role in the implementation
Knowledge sharing
Operational
Explanation of how you encourage implementation
Engagement via technical assistance directly in the field (scheduled periodic visits),
showing the benefits of integrated pest management, through demonstration in the field
or training. BAT encourage their directly contracted farmers and also their strategic
suppliers to implement integrated pest management techniques. One of these
techniques in the use of natural biocontrol agents. Our Global Leaf Agronomy
Development Centre works to continuously enhance integrated pest management
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
252
strategies, which are then deployed to the farmers by our Field Technicians. Ongoing
developments include: selection of disease-resistant tobacco varieties; the use of
biological control strategies that can lead to a reduction in the use of agrochemicals and
biodiversity preservation.
Climate change related benefit
Emissions reductions (mitigation)
Increasing resilience to climate change (adaptation)
Reduced demand for fertilizers (adaptation)
Reduced demand for pesticides (adaptation)
Comment
In 2022, biological control strategies were recommended in 9 of the Group's own Leaf
Operations. For example, in Brazil, 33% of our directly contracted farmers use some
form of biological control techniques for pest control, as an example to the use of natural
predators for specific seedbed pests for insect control. In Bangladesh we have
introduced, in our contracted farmers, bio-fungicides in seedbeds & pheromone traps.
BAT continues to map commercially available biocontrol alternatives globally and look to
introduce these to our directly contracted farmers. BAT will also deliver tailored training
on integrated pest management techniques to support implementation of biocontrol
techniques where available. In addition to the biocontrol, BAT is reducing agrochemical
use and any contamination risk through decreasing chemical run-off and water-pollution
risks, disposal schemes for empty agrochemical containers, higher-yielding & more
disease-resistant tobacco seed varieties.
Management practice reference number
MP2
Management practice
Knowledge sharing
Description of management practice
Field technicians from our Leaf operations, perform field visits to our directly contracted
farmers, which occurs, approximately, once a month during the entire season for 100%
of farmers. They act as a direct and key link between the farmers and BAT, building
trusted relationships and working with the farmers to develop their skills, promote better
yields and maintain standards which includes providing agronomy support and the
recommendation of sustainable curing technologies and alternative fuels. Our strategic
third-party leaf suppliers have a similar approach with their own contracted farmers. Our
strategic third-party leaf suppliers also provide their farmers with training to help build
their skills, knowledge and awareness on a range of topics including natural resources
preservation. In 2022, it was reported through our Thrive assessments that there were
more than 129,000+ people engaged via farmer training, covering topics like natural
resources preservation which includes forest conservation, soil management and also
themes related to biodiversity.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
253
Your role in the implementation
Knowledge sharing
Explanation of how you encourage implementation
Engagement via technical assistance directly in the field (scheduled periodic visits)
which is delivered for 100% of farmers.
Climate change related benefit
Emissions reductions (mitigation)
Reduced demand for fossil fuel (adaptation)
Reduced demand for fertilizers (adaptation)
Reduced demand for pesticides (adaptation)
Comment
Field technicians act as a key, direct link between farmers & BAT. They build trusted
relationships & work with the farmers to develop their skills, promote better yields &
maintain standards. BAT global leaf agronomy centre develops innovative farming
techniques & technologies which are deployed to our contracted farmers by expert field
tech. These innovative technologies & solutions, incl. sustainable conservationist soil
best practices + hybrid tobacco seed varieties, offer greater yields & higher quality,
helping boost farmers’ profits at the same time as reducing the need for more land to be
used for tobacco growing, less fuel for curing process through technologies
improvement or with the change for more sustainable type of fuel. Sustainable farming
practices bring environmental & livelihood benefits to farmers. Support & technologies
provided to contracted farmers in Brazil, as an example, over the past 10 years led to a
40% increase in yields, in terms of kilogram per hectare.
Management practice reference number
MP5
Management practice
Reducing energy use
Description of management practice
Via trials supported by our Global Leaf Agronomy Development Centre we identify the
most efficient curing methods resulting in reduced energy use.
Your role in the implementation
Knowledge sharing
Operational
Explanation of how you encourage implementation
Engagement via technical assistance directly in the field (scheduled periodic visits) for
100% of directly contracted farmers, sharing innovative solutions and possibilities to
increase their energy efficiency.
Climate change related benefit
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
254
Increasing resilience to climate change (adaptation)
Reduced demand for fossil fuel (adaptation)
Comment
Based on our footprint of where we buy tobacco from, main energy consumed is from
curing. Our technical assistance teams provide advice on the ways to improve curing
efficiency. Upgrading curing barns to automated ‘loose leaf’ models can enable at least
a 30% reduction in fuel use. These innovative curing technologies have been introduced
to our directly contracted farmers in 4 countries. E.g. In Brazil, 55% of directly
contracted farmers benefit from this technology and 37% with other type of efficient air
forced barns. It makes the curing process more efficient but also 45% less labour
intensive. In Sri Lanka, where the farmers already had sustainable sources of curing
fuel, implementing an automated paddy husk feeder in the Loose-leaf barns had a 37%
reduction in fuel on a semi-commercial scale of 20 barns. This also helps reduce
farmers operating costs. The same approach is expected by our third-party suppliers.
Management practice reference number
MP6
Management practice
Waste management
Description of management practice
Solutions vary according to the growing region, type of property, options available from
market to market, programs in place by municipalities, industry approach programs and
others.
Your role in the implementation
Knowledge sharing
Explanation of how you encourage implementation
Engagement via technical assistance directly in the field (scheduled periodic visits),
encouraging farmers for a safe disposal and explaining the importance of doing so to
keep the family safe and also to protect the environment from soil and water
contamination.
Climate change related benefit
Emissions reductions (mitigation)
Comment
BAT policy requires all tobacco suppliers to dispose empty agrochemical containers
safely. In some countries, BAT provides additional support to collect and safely dispose
of empty containers for pesticides and other agrochemicals. For example, in Brazil, BAT
partners with an industry scheme that collects and recycles containers from over
100,000 farms across the country. In Chile 100% of our directly contracted farmers have
reported to have safely disposed of Crop Protection Agent containers in 2022. In
Croatia, almost 80% of our directly contracted farmers participate in a municipal waste
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
255
programme for recycling seedling trays and empty agrochemical containers. This allows
them to dispose of waste safely and also reduce uncontrolled waste incineration without
energy recovery.
Management practice reference number
MP8
Management practice
Crop diversity
Description of management practice
If farmers continuously grows the same crop on the same area - land (‘monocropping’) it
risks depletion of soil nutrients and increases the probability of diseases and pests
occurrence. Crop rotation is recognised as one of the best practice approach to
protecting and enhancing soil health and also reducing pressure from pests and
diseases. We have always encouraged crop diversification – it not only increases
farmers’ resilience by preventing reliance on just one crop but also helps to enhance
food security and to preserve soil health.
Your role in the implementation
Knowledge sharing
Operational
Explanation of how you encourage implementation
Implementation is encouraged via agricultural technical assistance visits from our
technicians at the farms of our directly contracted farmers.
Climate change related benefit
Increasing resilience to climate change (adaptation)
Reduced demand for fertilizers (adaptation)
Comment
In 2022, 92.8% of tobacco farmers in our supply chain were reported to grow other
crops in addition to tobacco which is monitored by our field technicians and reported in
our Thrive program. Thrive is our tobacco sustainability programme where all elements
around sustainable tobacco production are tracked, it provides us with a greater level of
understanding on how our suppliers and farmers are responding to our priorities.
Management practice reference number
MP3
Management practice
Reforestation
Description of management practice
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
256
In the curing process of tobacco is common to use wood as a fuel, and relying on this
natural resource, we have programmes in place to avoid and also to combat
deforestation, promoting the use of sustainable wood as well as farmer’s self-
sufficiency. For this, among other actions, we’re providing farmers with seedlings,
wherever possible, so they can meet future fuel needs without causing deforestation.
Your role in the implementation
Knowledge sharing
Operational
Explanation of how you encourage implementation
We deliver training and education for farmers in order to explain and give them the
knowledge of the importance and benefits of reforestation. We also provide saplings of
trees for farmer´s reforestation in most of the places where we operate. BAT has the
target to achieve 100% of wood used by the directly contracted farmers for tobacco
curing to be from sustainable source. In 2022 we had 99.998% of the tobacco volume
cured with sustainable source of wood. Ongoing work complemented with deforestation
risk assessments maintain focus on the subject and allow us to improve our approach
year on year. We have also run a proof of concept for remote sensing deforestation
monitoring in order to bring new technologies for better accuracy and strengthening
current monitoring.
Climate change related benefit
Increasing resilience to climate change (adaptation)
Reduced demand for fertilizers (adaptation)
Comment
We provide our directly contracted farmers with tree saplings as sources of sustainable
fuel for tobacco curing, as well as training in forest and biodiversity management. Our
third-party suppliers are expected to follow similar practices with their own contracted
farmers. Since the 1970s, we have provided more than 400 million saplings to our
directly contracted farmers and their local communities to promote wood self-sufficiency
in Brazil, Kenya, Bangladesh and Pakistan.
The largest programs are run in Pakistan and Bangladesh (e.g. our Bonayan
afforestation programme through which we have distributed over 115 million free
saplings to rural communities since it started).
Management practice reference number
MP7
Management practice
Fertilizer management
Description of management practice
Soil management practices, how farmer´s land is prepared to grow the crops and also
the technique used to apply fertiliser can contribute to carbon emissions reduction. This
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
257
is the concept of our Carbon Smart Farming initiative that takes a strategic approach
focused on both reducing emissions from tobacco farming and also leveraging the
positive effect agriculture could have in removing carbon from the atmosphere. The
latter may be achieved by planting trees, as well as through methods like cover crops
and conservation tillage that may keep the soil covered and undisturbed which can lead
to reductions in the need for fertiliser application and losses from nitrogen volatilization.
Nitrogen fertiliser with lower emissions were tested for Air Cured Burley and showed
similar performance to traditional fertilisation, however with lower CO2 emissions.
Usage of High Wide Base with Mulching to grow tobacco is a technology that reduce the
losses of soil to surrounding areas. Doing so enhances efficiency in the fertiliser usage.
Higher Efficiency in fertilisation means that the amount applied into the soil will be better
used by the plants, reducing the need for additional application of fertilisers, avoiding
extra CO2 emissions.
The technological package for fertilisation taking into consideration each soil type and its
nutrient stocks is a way to reduce the use of nitrogen fertiliser. Countries like Brazil and
Mexico are going into a direction where the nitrogen fertilisation needs to follow a more
tailored solution depending upon soil organic matter content, taking into account the
current availability of nutrients, demanding less application of excess of nitrogen.
Additionally, in the search for new solutions, we are evaluating new management
strategies that allow the elimination of nitrogen use.
Your role in the implementation
Knowledge sharing
Explanation of how you encourage implementation
Implementation of smarter use of fertilizers is encouraged via agricultural techniques
and also best practices for soil and water conservation which is shared through our field
technicians’ field visit of our directly contracted farmers.
Climate change related benefit
Increasing resilience to climate change (adaptation)
Reduced demand for fertilizers (adaptation)
Comment
In 2021, 76 % of tobacco hectares reported to have appropriate best practice soil and
water management plans implemented and in 2022 82% of tobacco hectares reported
to have appropriate best practice in regard to soil and water management practices (all
those % is related to the total tobacco volume reported in Thrive). We aim to achieve
100% of hectares (entire tobacco supply chain) following these best practices.
Management practice reference number
MP4
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
258
Management practice
Diversifying farmer income
Description of management practice
We encourage our farmers to grow others crops in addition to tobacco, towards a
diverse portfolio of crops that can also be rotated with tobacco crop. We believe it
improves food security and increases farmers’ resilience by providing additional sources
of income. In 2022, 92.8% of our farmers in the Tobacco Supply Chain were reported to
be growing other crops.
Your role in the implementation
Knowledge sharing
Explanation of how you encourage implementation
Educating and supporting our directly contracted farmers to grow other crops for food or
as additional sources of income, providing free seeds, crop inputs and training, as well
as help accessing markets to sell their production. Encouraging cultivation of corn,
wheat and pastureland after the tobacco harvest. The Group's own Leaf Operations and
strategic third-party suppliers educate and support tobacco farmers on crop
diversification, with more than 87,206 people engaged via training delivered in 2022.
Climate change related benefit
Increasing resilience to climate change (adaptation)
Reduced demand for fertilizers (adaptation)
Comment
Rural poverty is recognised as a primary root cause for issues such as child and forced
labour, as well as poor safety and environmental standards.
Enhancing farmer livelihoods helps tackle such issues and strengthen our supply chain.
Profitable farms with good incomes mean farmers are more likely to adhere to safety
standards and look after the environment.
The practice is coupled with crop rotation practices.
C-AC12.2b/C-FB12.2b/C-PF12.2b
(C-AC12.2b/C-FB12.2b/C-PF12.2b) Do you collect information from your suppliers
about the outcomes of any implemented agricultural/forest management practices
you have encouraged?
Yes
C12.3
(C12.3) Does your organization engage in activities that could either directly or
indirectly influence policy, law, or regulation that may impact the climate?
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
259
Row 1
External engagement activities that could directly or indirectly influence
policy, law, or regulation that may impact the climate
Yes, we engage directly with policy makers
Does your organization have a public commitment or position statement to
conduct your engagement activities in line with the goals of the Paris
Agreement?
Yes
Attach commitment or position statement(s)
We will work with governments, NGOs, academics and other key stakeholders to
develop effective and environmentally responsible solutions to the challenges that we
face. We seek to conduct our engagement activities in line with the goals of the Paris
Agreement.
Env Policy BAT com 25 Jul 2023 - Final_.pdf
Describe the process(es) your organization has in place to ensure that your
external engagement activities are consistent with your climate commitments
and/or climate transition plan
External engagement on all policy matters, including environmental/climate change
policy, is coordinated through Legal and External Affairs (LEX). LEX will also, where
appropriate, consult with subject-matter experts on such matters. This approach is
replicated across the group, at a regional and end market level. Such an approach
ensures all of our direct and indirect activities are aligned with our overall approach to
climate change, and our overall business strategy.
In addition, we engage with our external stakeholders on our climate commitments and
transition plan through our Combined Annual and ESG report. Our internal processes
and communications are utilised to engage with our employees on our climate change
strategy, encouraging them to act in line with this strategy when acting on behalf of the
organization. BAT has a Global Environmental, Health & Safety Policy Manual which is
distributed to all BAT Group operating companies for their local implementation in their
operating environments. According to the Global Environmental, Health & Safety Policy
Manual, the local companies are encouraged to engage with the relevant authorities
and other interest groups in terms of climate change in line with the Group strategy.
C12.3a
(C12.3a) On what policy, law, or regulation that may impact the climate has your
organization been engaging directly with policy makers in the reporting year?
Specify the policy, law, or regulation on which your organization is engaging
with policy makers
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
260
Request for Information: Development of Best Practices for Collection of Batteries to be
Recycled and Voluntary Battery Labeling Guidelines
Category of policy, law, or regulation that may impact the climate
Low-carbon products and services
Focus area of policy, law, or regulation that may impact the climate
Circular economy
Policy, law, or regulation geographic coverage
National
Country/area/region the policy, law, or regulation applies to
United States of America
Your organization’s position on the policy, law, or regulation
Neutral
Description of engagement with policy makers
Provided public facing comments in response to EPA’s Request for Information on
Development of Best Practices for Collection of Batteries to be Recycled and Voluntary
Battery Labelling Guidelines.
Details of exceptions (if applicable) and your organization’s proposed
alternative approach to the policy, law or regulation
Have you evaluated whether your organization’s engagement on this policy,
law, or regulation is aligned with the goals of the Paris Agreement?
Yes, we have evaluated, and it is aligned
Please explain whether this policy, law or regulation is central to the
achievement of your climate transition plan and, if so, how?
This policy does not materially contribute to our climate transition plan.
C12.4
(C12.4) Have you published information about your organization’s response to climate
change and GHG emissions performance for this reporting year in places other than
in your CDP response? If so, please attach the publication(s).
Publication
In mainstream reports, incorporating the TCFD recommendations
Status
Complete
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
261
Attach the document
BAT_Annual_Report_Form_20-F_2022 (1).pdf
Page/Section reference
Pages 70 to 81
Content elements
Governance
Strategy
Risks & opportunities
Emissions figures
Emission targets
Other metrics
Comment
We have reported in line with the full suite of TCFD recommendations in our 2022 ARA
C12.5
(C12.5) Indicate the collaborative frameworks, initiatives and/or commitments related
to environmental issues for which you are a signatory/member.
Environmental
collaborative
framework, initiative
and/or commitment
Describe your organization’s role within each framework,
initiative and/or commitment
Row
1
Business Ambition for
1.5C
Race to Zero Campaign
We are signatories of the Business Ambition for 1.5 campaign and
committed to setting 1.5 degree aligned science-based climate
targets for Scope 1 and Scope 2. We fulfilled this commitment in
2022 following verification of our emission reduction targets by SBTi
(Science Based Targets Initiative).
We are also members of the Race to Zero campaign. Our role in this
campaign is to demonstrate leadership by aligning to the criteria.
Examples of our company meeting these criteria include, setting
near-term and long-term emission reduction targets, publishing a
Low Carbon Transition Plan, implementing and reporting annual on
our performance through our Combined ESG and Annual Report,
TCFD and CDP disclosure.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
262
C13. Other land management impacts
C-AC13.2/C-FB13.2/C-PF13.2
(C-AC13.2/C-FB13.2/C-PF13.2) Do you know if any of the management practices
mentioned in C-AC12.2a/C-FB12.2a/C-PF12.2a that were implemented by your
suppliers have other impacts besides climate change mitigation/adaptation?
Yes
C-AC13.2a/C-FB13.2a/C-PF13.2a
(C-AC13.2a/C-FB13.2a/C-PF13.2a) Provide details of those management practices
implemented by your suppliers that have other impacts besides climate change
mitigation/adaptation.
Management practice reference number
MP1
Overall effect
Positive
Which of the following has been impacted?
Biodiversity
Description of impacts
Coverage: BAT’s directly contracted farmers and those of strategic suppliers cover 84%
of sourced tobacco.
BAT, leveraging on the many years of experience of its Global Leaf Agronomy
Development Centre, works with its directly contracted farmers to train them and
develop their skills to promote better yields and higher quality, soil and water best
practices. as well as to encourage the use of sustainable fuel for curing.
Applying sustainable farming practices and use of sustainable fuel allows to reduce
environmental impact of the activities in farms and curing, thus reducing negative impact
on the natural habitat at the adjacent areas and preserving species of fauna and flora
presented in these areas.
Have any response to these impacts been implemented?
No
Description of the response(s)
The impact is positive, thus no response is required
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
263
Management practice reference number
MP2
Overall effect
Positive
Which of the following has been impacted?
Biodiversity
Soil
Water
Yield
Description of impacts
Coverage: contracted farmers and those of strategic suppliers cover more than 80% of
sourced tobacco.
BAT, leveraging on the many years of experience of the Global Leaf Agronomy
Development Centre, works with the directly contracted farmers to train them and
develop their skills to promote better yields and higher quality, soil and water best
practices as well as to encourage them for using sustainable fuel for curing.
Applying sustainable farming practices and use of sustainable fuel allows to minimize
environmental impact of the activities in farms and curing, thus minimizing negative
impact on the natural habitat at the adjacent areas and preserving species of fauna and
flora presented in these areas.
Have any response to these impacts been implemented?
No
Description of the response(s)
The impact is positive, thus no response is required
Management practice reference number
MP3
Overall effect
Positive
Which of the following has been impacted?
Biodiversity
Soil
Description of impacts
Forests are natural sources for carbon sequestration, improving farmer’s and
environment’s climate resilience. At the same time, reforestation activities allow to
preserve forests which are a habitat of animals and plants, thus have positive effect on
preserving the biodiversity.
Have any response to these impacts been implemented?
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
264
No
Description of the response(s)
The impact is positive, thus no response is required
Management practice reference number
MP4
Overall effect
Positive
Which of the following has been impacted?
Water
Yield
Description of impacts
BAT Global leaf agronomy centre develops new tobacco seed varieties that offer greater
yields, as well as higher quality and resistance to diseases. This helps to boost farmers’
profits as well as to grow leaf more efficiently using the same area of land and similar
amounts of water while applying less pesticides. Overall yield improvement is linked with
improved social metrics which are also essential to our farmer’s livelihood approach.
Have any response to these impacts been implemented?
No
Description of the response(s)
The impact is positive, thus no response is required
C15. Biodiversity
C15.1
(C15.1) Is there board-level oversight and/or executive management-level
responsibility for biodiversity-related issues within your organization?
Board-level oversight
and/or executive
management-level
responsibility for
biodiversity-related issues
Description of oversight and objectives relating to
biodiversity
Row
1
Yes, both board-level
oversight and executive
management-level
responsibility
Our Group governance framework ensures Board-level oversight
of ESG including biodiversity-related issues. Board oversight
includes review of performance against biodiversity &
deforestation targets and annual review of the Group risk
register (which includes forest-related risks). The Board has
delegated certain responsibilities to the Audit Committee (AC),
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
265
responsible for reviewing the effectiveness of Group risk
management and internal controls systems, (including for
biodiversity issues). The AC reviews the Group risk register
twice/year and progress on forest-related targets. The AC’s remit
includes engagement of external providers to conduct assurance
over ESG metrics (including biodiversity-related metrics) and
related data in annual reporting and monitoring assurance work.
This approach was adopted in 2021 to further enhance the
Group’s rigour in reporting ESG-related information. Our
Management Board (MB), chaired by the CEO, is responsible for
overseeing the implementation of Group strategy and policies.
The Director, Operations (DO) is a member of the MB reporting
directly into the CEO. The DO has overall responsibility for
delivery of the Group’s biodiversity strategy, environmental
targets and related risks and opportunities. The Board is
updated on ESG topics (which include biodiversity-related
issues) on a quarterly basis. This consists of review of the
Group’s environment strategy, targets & performance twice per
year, an annual review of the risk register (which includes
biodiversity related risks), review and approval of the Combined
Annual and ESG Report and Form 20-F which include our
biodiversity-related performance for the year, and additional
focused updates on our ESG progress. The DO chairs and
receives updates from functional leaders and teams on
biodiversity-related strategy and targets through Sustainability &
Environmental Forums that meet 4-6 times a year. The MB
receives updates on biodiversity-related risks and strategic
plans, along with risk mitigation plans. This includes monitoring
by the Group Risk Management Committee, chaired by the
Finance & Transformation Director.
C15.2
(C15.2) Has your organization made a public commitment and/or endorsed any
initiatives related to biodiversity?
Indicate whether your organization made a
public commitment or endorsed any
initiatives related to biodiversity
Biodiversity-related
public commitments
Initiatives
endorsed
Row
1
Yes, we have made public commitments and
publicly endorsed initiatives related to
biodiversity
Commitment to Net
Positive Gain
Commitment to No Net
Loss
Adoption of the
mitigation hierarchy
approach
Other, please
specify
Business for
Nature Call to
Action
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
266
C15.3
(C15.3) Does your organization assess the impacts and dependencies of its value
chain on biodiversity?
Impacts on biodiversity
Indicate whether your organization undertakes this type of assessment
Yes
Value chain stage(s) covered
Upstream
Tools and methods to assess impacts and/or dependencies on biodiversity
Biodiversity indicators for site-based impacts
IBAT – Integrated Biodiversity Assessment Tool
STAR – Species Threat Abatement and Restoration metric
Please explain how the tools and methods are implemented and provide an
indication of the associated outcome(s)
In 2022 was commissioned a Biodiversity Risk Assessment, mapping 69,200 of our
directly contracted and categorising them on Low, Medium & High risk. Farmers
assessed represented 91.5% of BAT’s directly contracted farmers in 2021 crop year,
with a total farm area of 318,000 hectares. The assessment was done against five
global biodiversity risk indicators, using Integrated Biodiversity Assessment tool(IBAT) ;
i. Risk against the Ecosystem Intactness Index; ii. Proximity to World Heritage Sites
and/or Alliance for Zero Extinction sites; iii. Proximity to Key Biodiversity Areas; iv. Risk
against STAR Threat Abatement - STAR-T; v. Risk against STAR Restoration =
STAR=R. STAR stands for Species Threat Abatement & Restoration. The assessment
analysed the geo location of farmers and specific risk for each of the five indicators. The
results show that, based on a combined Biodiversity Risk Score, 98% of farms assessed
(96.4% of the total assessed farmed area) were classified as low biodiversity risk.
Medium biodiversity risk areas represented less than 1% of the total farm area assessed
in each country. Regarding STAR indicators, the results show a very low level of
assessed risk to areas of high biodiversity significance. 75 hectares are classified with
high START-T significance and 1 hectare with high STAR-R significance. This means
that farmers are in regions with high significance for threatened or endemic species of
birds, mammals and/or amphibia; it does not mean the farmers are causing the threat or
damaging the environment but that there is increased risk or significance to their
activities. Farmers classified as high risk in the combined score assessment have been
locally re-assessed on the ground by our Field Technicians (FTs) and checked for
potential impact / risk on biodiversity posed by their farming practices. We also checked
for any cultural or economic dependency of the farmers for some native species. In
cases where risk is found, farmers are required to adopt a biodiversity management
plan (BMP), including where needed remediation actions to mitigate any farm
operational risk. The BMP is then monitored by the Field Technicians until the
conclusion of the agreed actions taken to remediate / eliminate the existing risks. Out of
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
267
the 981 farmers classified as high risk in the study, 807 remain in our supply chain and
632 have implemented a BMP, with a total farm area of 6,362 hectares.
Dependencies on biodiversity
Indicate whether your organization undertakes this type of assessment
Yes
Value chain stage(s) covered
Upstream
Tools and methods to assess impacts and/or dependencies on biodiversity
STAR – Species Threat Abatement and Restoration metric
Please explain how the tools and methods are implemented and provide an
indication of the associated outcome(s)
As an agriculture activity, our tobacco growing is dependent on ecosystems , such as
forest products (710k tonnes of wood in 2022), soil and freshwater (33% of the hectares
of tobacco sourcing area used irrigation in 2022) and land (282K hectares of tobacco in
2022).
Based on this dependency, in 2022 we worked with The Biodiversity Consultancy -
“TBC”, to calculate the land use footprint, based on crop year 2021 and using TBC’s
Biodiversity Extent, Condition and Significance (BECS) method. The land occupancy
footprint is expressed in units of Mean Species Abundance Hectares (MSA.ha), which
represent the equivalent area of converting an undisturbed ecosystem into a completely
artificial surface (e.g., a tarmacked car park). The Extent portion is the physical area of
habitat occupied to produce the crop. The Condition is expressed in MSA.ha which is
the biodiversity loss equivalent of turning one ha of pristine habitat into a car park. MSA
is based on GLOBIO model, it gives the estimated condition of biodiversity, measuring
the amount of biodiversity loss on occupied land, based on the quality of an ecosystem
according to current land use practices. Significance provides a ‘weighting’ to the
impact, based on the type of biodiversity (species or ecosystems) that are impacted and
the ‘value’ of that biodiversity globally; it is estimated using STAR data. Total biodiversity
footprint across BAT directly contracted suppliers was calculated at 270,000 MSA.ha.
We work with leaf suppliers to promote sustainable agriculture practice and preserve the
ecosystem provided by the natural resources we use to grow tobacco, prioritising our in-
house operations first. Example of this is the adoption of sustainable soil and water
management practices in our Tobacco Supply Chain. In 2022 82% of tobacco hectares
reported in Thrive programme had an appropriate best practice of soil and water
management plans implemented, an increase from 76% in 2021.
C15.4
(C15.4) Does your organization have activities located in or near to biodiversity-
sensitive areas in the reporting year?
Yes
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
268
C15.4a
(C15.4a) Provide details of your organization’s activities in the reporting year located
in or near to biodiversity -sensitive areas.
Classification of biodiversity -sensitive area
Key Biodiversity Area (KBAs)
Country/area
Brazil
Name of the biodiversity-sensitive area
Brazil - Parque Nacional do Iguaçu
Brazil - Parque Nacional dos Campos Gerais do Paraná
Brazil - Parque Provincial Piñalito y alrededores
Brazil - Reserva de la Biósfera Yabotí
Brazil - Parque Nacional da Serra Geral
Brazil - Campos do Planalto das Araucárias
Brazil – Campos de Cima da Serra
Brazil - Santiago pampas
Brazil - Médio Rio Camaquã
Brazil - San Pedro
Brazil - General Carneiro
Proximity
Up to 10 km
Briefly describe your organization’s activities in the reporting year located in
or near to the selected area
In 2022, we commissioned The Biodiversity Consultancy to conduct a geospatial
Biodiversity Risk Assessment, mapping our contracted farmers against five global
Biodiversity indicators and categorising them based on Low, Medium & High risk .The
assessment mapped 69,200 of our directly contracted farmers against a recognized
range of Biodiversity Indicators such as Ecosystem Intactness Index, proximity to World
heritage sites and/or Alliance for Zero Extinction sites/ Key Biodiversity Areas and
Species Threat Abatement and Restoration Score, and shown that 981 farmers were
classified as high risk for the combined score risk of the study. We assessed the farmer-
by-farmer case, understanding what was the respective indicator that put them on high-
risk category. Based on this desktop exercise, we did an on the ground assessment
checking what could be potential operational farming practices or potential risk factors to
the biodiversity. 632 farmers were confirmed to be still in our contract base for 2022 and
had adopted a biodiversity management plan. The relevant operational activity is
tobacco farming.
Indicate whether any of your organization’s activities located in or near to the
selected area could negatively affect biodiversity
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
269
Yes, but mitigation measures have been implemented
Mitigation measures implemented within the selected area
Operational controls
Explain how your organization’s activities located in or near to the selected
area could negatively affect biodiversity, how this was assessed, and describe
any mitigation measures implemented
Our agriculture activities have potential impact and dependency on biodiversity, and use
of ecosystem services, such as forest products, soil, and water. Conventional
agricultural practices can be resource intensive as they can be associated with
deforestation, pollution, and biodiversity loss. To mitigate this risk, we continue to
develop, advance, and implement sustainable agricultural practices that help to
preserve natural capital, like reduction in the use of agrochemicals and soil erosion, as
well as preservation of soil fertility. Farmers classified as high risk in the Biodiversity
Risk Assessment were re-assessed on the ground by our field technicians and, if further
risks were identified, a biodiversity management plan was implemented. Factors looked
at during the assessment included activities that could be causing risk to biodiversity,
presence of endangered animal species, presence of invasive plant species, animal and
vegetal species that may have benefits for the agriculture or socio-cultural-economic
interest, and presence of natural habitats patches.
Aside of this individual approach, we focus on developing and deploying practices and
programmes to promote and leverage sustainable agriculture practices in our directly
contracted farmers first. To reduce the risk of deforestation, we promote afforestation of
no invasive species to produce wood in the farms that grow tobacco. We provide our
directly contracted farmers with tree saplings as sources of sustainable fuel for tobacco
curing. Our third-party suppliers are expected to follow similar practices with their
contracted farmers. We also promote the use of alternative fuels to cure tobacco. In
2022 22% of our contracted farmers used other types of biomass fuels for tobacco
curing. Forests or other natural areas being cleared to create farmland for tobacco is a
risk that we are working hard to reduce. We monitor our directly contracted farmers
regarding farmland expansion and the risk of natural ecosystems conversion. This
includes the risk of encroaching on legally protected areas and/or recognised
biodiversity areas. Regular, scheduled farm visits are used alongside unannounced
visits. Where non-compliance is found, prompt action is taken. Before we contract with
new farmers, we undertake due diligence to check for their ability to comply with
deforestation conversion free (DFC) status. If any cases of deforestation are observed,
the relevant farmer will be put under remediation to reforest in the same eco-region
and/or jurisdiction. We ask our third-party suppliers to take equivalent steps. Training on
best practices in sustainable agriculture practices, appropriate to growing conditions, are
provided to the directly contracted farmers in our supply chain, with 129,000 people
trained in topics associated with natural resources preservation in 2022 in our own
operations and those of strategic 3rd party suppliers.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
270
Classification of biodiversity -sensitive area
Key Biodiversity Area (KBAs)
Country/area
Mexico
Name of the biodiversity-sensitive area
Mexico - Lower Central Basin
Mexico - Reserva Ecológica Sierra de San Juan
Mexico - Marismas Nacionales
Mexico - Selvas Nayaritas
Proximity
Up to 10 km
Briefly describe your organization’s activities in the reporting year located in
or near to the selected area
In 2022, we commissioned The Biodiversity Consultany to conduct a geospatial
Biodiversity Risk Assessment, mapping our contracted farmers against five global
Biodiversity indicators and categorising them based on Low, Medium & High risk .The
assessment mapped 69,200 of our directly contracted farmers against a recognized
range of Biodiversity Indicators such as Ecosystem Intactness Index, proximity to World
heritage sites and/or Alliance for Zero Extinction sites/ Key Biodiversity Areas and
Species Threat Abatement and Restoration Score, and shown that 981 farmers were
classified as high risk for the combined score risk of the study. We assessed the farmer-
by-farmer case, understanding what was the respective indicator that put them on high-
risk category. Based on this desktop exercise, we did an on the ground assessment
checking what could be potential operational farming practices or potential risk factors to
the biodiversity. 632 farmers were confirmed to be still in our contract base for 2022 and
had adopted a biodiversity management plan. The relevant operational activity is
tobacco farming.
Indicate whether any of your organization’s activities located in or near to the
selected area could negatively affect biodiversity
Yes, but mitigation measures have been implemented
Mitigation measures implemented within the selected area
Operational controls
Explain how your organization’s activities located in or near to the selected
area could negatively affect biodiversity, how this was assessed, and describe
any mitigation measures implemented
Our agriculture activities have potential impact and dependency on biodiversity, and use
of ecosystem services, such as forest products, soil, and water. Conventional
agricultural practices can be resource intensive as they can be associated with
deforestation, pollution, and biodiversity loss. To mitigate this risk, we continue to
develop, advance, and implement sustainable agricultural practices that help to
preserve natural capital, like reduction in the use of agrochemicals and soil erosion, as
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
271
well as preservation of soil fertility. Farmers classified as high risk in the Biodiversity
Risk Assessment were re-assessed on the ground by our field technicians and, if further
risks were identified, a biodiversity management plan was implemented. Factors looked
at during the assessment included activities that could be causing risk to biodiversity,
presence of endangered animal species, presence of invasive plant species, animal and
vegetal species that may have benefits for the agriculture or socio-cultural-economic
interest, and presence of natural habitats patches.
Aside of this individual approach, we focus on developing and deploying practices and
programmes to promote and leverage sustainable agriculture practices in our directly
contracted farmers first. To reduce the risk of deforestation, we promote afforestation of
no invasive species to produce wood in the farms that grow tobacco. We provide our
directly contracted farmers with tree saplings as sources of sustainable fuel for tobacco
curing. Our third-party suppliers are expected to follow similar practices with their
contracted farmers. We also promote the use of alternative fuels to cure tobacco. In
2022 22% of our contracted farmers used other types of biomass fuels for tobacco
curing. Forests or other natural areas being cleared to create farmland for tobacco is a
risk that we are working hard to reduce. We monitor our directly contracted farmers
regarding farmland expansion and the risk of natural ecosystems conversion. This
includes the risk of encroaching on legally protected areas and/or recognised
biodiversity areas. Regular, scheduled farm visits are used alongside unannounced
visits. Where non-compliance is found, prompt action is taken. Before we contract with
new farmers, we undertake due diligence to check for their ability to comply with
deforestation conversion free (DFC) status. If any cases of deforestation are observed,
the relevant farmer will be put under remediation to reforest in the same eco-region
and/or jurisdiction. We ask our third-party suppliers to take equivalent steps. Training on
best practices in sustainable agriculture practices, appropriate to growing conditions, are
provided to the directly contracted farmers in our supply chain, with 129,000 people
trained in topics associated with natural resources preservation in 2022 in our own
operations and those of strategic 3rd party suppliers.
Classification of biodiversity -sensitive area
Key Biodiversity Area (KBAs)
Country/area
Venezuela (Bolivarian Republic of)
Name of the biodiversity-sensitive area
Venezuela - Parque Nacional Guatopo
Veneuela - Zona Protectora Macizo Montañoso del Turimiquire
Venezuela - Parque Nacional San Esteban
Venezuela – Palmichal
Venezuela - Parque Nacional El Guácharo
Venezuela - Parque Nacional Henri Pittier
Proximity
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
272
Up to 10 km
Briefly describe your organization’s activities in the reporting year located in
or near to the selected area
In 2022, we commissioned The Biodiversity Consultany to conduct a geospatial
Biodiversity Risk Assessment, mapping our contracted farmers against five global
Biodiversity indicators and categorising them based on Low, Medium & High risk .The
assessment mapped 69,200 of our directly contracted farmers against a recognized
range of Biodiversity Indicators such as Ecosystem Intactness Index, proximity to World
heritage sites and/or Alliance for Zero Extinction sites/ Key Biodiversity Areas and
Species Threat Abatement and Restoration Score, and shown that 981 farmers were
classified as high risk for the combined score risk of the study. We assessed the farmer-
by-farmer case, understanding what was the respective indicator that put them on high-
risk category. Based on this desktop exercise, we did an on the ground assessment
checking what could be potential operational farming practices or potential risk factors to
the biodiversity. 632 farmers were confirmed to be still in our contract base for 2022 and
had adopted a biodiversity management plan. The relevant operational activity is
tobacco farming.
Indicate whether any of your organization’s activities located in or near to the
selected area could negatively affect biodiversity
Yes, but mitigation measures have been implemented
Mitigation measures implemented within the selected area
Operational controls
Explain how your organization’s activities located in or near to the selected
area could negatively affect biodiversity, how this was assessed, and describe
any mitigation measures implemented
Our agriculture activities have potential impact and dependency on biodiversity, and use
of ecosystem services, such as forest products, soil, and water. Conventional
agricultural practices can be resource intensive as they can be associated with
deforestation, pollution, and biodiversity loss. To mitigate this risk, we continue to
develop, advance, and implement sustainable agricultural practices that help to
preserve natural capital, like reduction in the use of agrochemicals and soil erosion, as
well as preservation of soil fertility. Farmers classified as high risk in the Biodiversity
Risk Assessment were re-assessed on the ground by our field technicians and, if further
risks were identified, a biodiversity management plan was implemented. Factors looked
at during the assessment included activities that could be causing risk to biodiversity,
presence of endangered animal species, presence of invasive plant species, animal and
vegetal species that may have benefits for the agriculture or socio-cultural-economic
interest, and presence of natural habitats patches.
Aside of this individual approach, we focus on developing and deploying practices and
programmes to promote and leverage sustainable agriculture practices in our directly
contracted farmers first. To reduce the risk of deforestation, we promote afforestation of
no invasive species to produce wood in the farms that grow tobacco. We provide our
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
273
directly contracted farmers with tree saplings as sources of sustainable fuel for tobacco
curing. Our third-party suppliers are expected to follow similar practices with their
contracted farmers. We also promote the use of alternative fuels to cure tobacco. In
2022 22% of our contracted farmers used other types of biomass fuels for tobacco
curing. Forests or other natural areas being cleared to create farmland for tobacco is a
risk that we are working hard to reduce. We monitor our directly contracted farmers
regarding farmland expansion and the risk of natural ecosystems conversion. This
includes the risk of encroaching on legally protected areas and/or recognised
biodiversity areas. Regular, scheduled farm visits are used alongside unannounced
visits. Where non-compliance is found, prompt action is taken. Before we contract with
new farmers, we undertake due diligence to check for their ability to comply with
deforestation conversion free (DFC) status. If any cases of deforestation are observed,
the relevant farmer will be put under remediation to reforest in the same eco-region
and/or jurisdiction. We ask our third-party suppliers to take equivalent steps. Training on
best practices in sustainable agriculture practices, appropriate to growing conditions, are
provided to the directly contracted farmers in our supply chain, with 129,000 people
trained in topics associated with natural resources preservation in 2022 in our own
operations and those of strategic 3rd party suppliers.
Classification of biodiversity -sensitive area
Key Biodiversity Area (KBAs)
Country/area
Viet Nam
Name of the biodiversity-sensitive area
Vietnam - Chu Yang Sin
Proximity
Up to 10 km
Briefly describe your organization’s activities in the reporting year located in
or near to the selected area
In 2022, we commissioned The Biodiversity Consultany to conduct a geospatial
Biodiversity Risk Assessment, mapping our contracted farmers against five global
Biodiversity indicators and categorising them based on Low, Medium & High risk .The
assessment mapped 69,200 of our directly contracted farmers against a recognized
range of Biodiversity Indicators such as Ecosystem Intactness Index, proximity to World
heritage sites and/or Alliance for Zero Extinction sites/ Key Biodiversity Areas and
Species Threat Abatement and Restoration Score, and shown that 981 farmers were
classified as high risk for the combined score risk of the study. We assessed the farmer-
by-farmer case, understanding what was the respective indicator that put them on high-
risk category. Based on this desktop exercise, we did an on the ground assessment
checking what could be potential operational farming practices or potential risk factors to
the biodiversity. 632 farmers were confirmed to be still in our contract base for 2022 and
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
274
had adopted a biodiversity management plan. The relevant operational activity is
tobacco farming.
Indicate whether any of your organization’s activities located in or near to the
selected area could negatively affect biodiversity
Yes, but mitigation measures have been implemented
Mitigation measures implemented within the selected area
Operational controls
Explain how your organization’s activities located in or near to the selected
area could negatively affect biodiversity, how this was assessed, and describe
any mitigation measures implemented
Our agriculture activities have potential impact and dependency on biodiversity, and use
of ecosystem services, such as forest products, soil, and water. Conventional
agricultural practices can be resource intensive as they can be associated with
deforestation, pollution, and biodiversity loss. To mitigate this risk, we continue to
develop, advance, and implement sustainable agricultural practices that help to
preserve natural capital, like reduction in the use of agrochemicals and soil erosion, as
well as preservation of soil fertility. Farmers classified as high risk in the Biodiversity
Risk Assessment were re-assessed on the ground by our field technicians and, if further
risks were identified, a biodiversity management plan was implemented. Factors looked
at during the assessment included activities that could be causing risk to biodiversity,
presence of endangered animal species, presence of invasive plant species, animal and
vegetal species that may have benefits for the agriculture or socio-cultural-economic
interest, and presence of natural habitats patches.
Aside of this individual approach, we focus on developing and deploying practices and
programmes to promote and leverage sustainable agriculture practices in our directly
contracted farmers first. To reduce the risk of deforestation, we promote afforestation of
no invasive species to produce wood in the farms that grow tobacco. We provide our
directly contracted farmers with tree saplings as sources of sustainable fuel for tobacco
curing. Our third-party suppliers are expected to follow similar practices with their
contracted farmers. We also promote the use of alternative fuels to cure tobacco. In
2022 22% of our contracted farmers used other types of biomass fuels for tobacco
curing. Forests or other natural areas being cleared to create farmland for tobacco is a
risk that we are working hard to reduce. We monitor our directly contracted farmers
regarding farmland expansion and the risk of natural ecosystems conversion. This
includes the risk of encroaching on legally protected areas and/or recognised
biodiversity areas. Regular, scheduled farm visits are used alongside unannounced
visits. Where non-compliance is found, prompt action is taken. Before we contract with
new farmers, we undertake due diligence to check for their ability to comply with
deforestation conversion free (DFC) status. If any cases of deforestation are observed,
the relevant farmer will be put under remediation to reforest in the same eco-region
and/or jurisdiction. We ask our third-party suppliers to take equivalent steps. Training on
best practices in sustainable agriculture practices, appropriate to growing conditions, are
provided to the directly contracted farmers in our supply chain, with 129,000 people
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
275
trained in topics associated with natural resources preservation in 2022 in our own
operations and those of strategic 3rd party suppliers.
Classification of biodiversity -sensitive area
Key Biodiversity Area (KBAs)
Country/area
Bangladesh
Name of the biodiversity-sensitive area
Bangladesh - Jamuna-Brahmaputra river
Bangladesh - Pablakhali Wildlife Sanctuary
Proximity
Up to 10 km
Briefly describe your organization’s activities in the reporting year located in
or near to the selected area
In 2022, we commissioned The Biodiversity Consultany to conduct a geospatial
Biodiversity Risk Assessment, mapping our contracted farmers against five global
Biodiversity indicators and categorising them based on Low, Medium & High risk .The
assessment mapped 69,200 of our directly contracted farmers against a recognized
range of Biodiversity Indicators such as Ecosystem Intactness Index, proximity to World
heritage sites and/or Alliance for Zero Extinction sites/ Key Biodiversity Areas and
Species Threat Abatement and Restoration Score, and shown that 981 farmers were
classified as high risk for the combined score risk of the study. We assessed the farmer-
by-farmer case, understanding what was the respective indicator that put them on high-
risk category. Based on this desktop exercise, we did an on the ground assessment
checking what could be potential operational farming practices or potential risk factors to
the biodiversity. 632 farmers were confirmed to be still in our contract base for 2022 and
had adopted a biodiversity management plan. The relevant operational activity is
tobacco farming.
Indicate whether any of your organization’s activities located in or near to the
selected area could negatively affect biodiversity
Yes, but mitigation measures have been implemented
Mitigation measures implemented within the selected area
Operational controls
Explain how your organization’s activities located in or near to the selected
area could negatively affect biodiversity, how this was assessed, and describe
any mitigation measures implemented
Our agriculture activities have potential impact and dependency on biodiversity, and use
of ecosystem services, such as forest products, soil, and water. Conventional
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
276
agricultural practices can be resource intensive as they can be associated with
deforestation, pollution, and biodiversity loss. To mitigate this risk, we continue to
develop, advance, and implement sustainable agricultural practices that help to
preserve natural capital, like reduction in the use of agrochemicals and soil erosion, as
well as preservation of soil fertility. Farmers classified as high risk in the Biodiversity
Risk Assessment were re-assessed on the ground by our field technicians and, if further
risks were identified, a biodiversity management plan was implemented. Factors looked
at during the assessment included activities that could be causing risk to biodiversity,
presence of endangered animal species, presence of invasive plant species, animal and
vegetal species that may have benefits for the agriculture or socio-cultural-economic
interest, and presence of natural habitats patches.
Aside of this individual approach, we focus on developing and deploying practices and
programmes to promote and leverage sustainable agriculture practices in our directly
contracted farmers first. To reduce the risk of deforestation, we promote afforestation of
no invasive species to produce wood in the farms that grow tobacco. We provide our
directly contracted farmers with tree saplings as sources of sustainable fuel for tobacco
curing. Our third-party suppliers are expected to follow similar practices with their
contracted farmers. We also promote the use of alternative fuels to cure tobacco. In
2022 22% of our contracted farmers used other types of biomass fuels for tobacco
curing. Forests or other natural areas being cleared to create farmland for tobacco is a
risk that we are working hard to reduce. We monitor our directly contracted farmers
regarding farmland expansion and the risk of natural ecosystems conversion. This
includes the risk of encroaching on legally protected areas and/or recognised
biodiversity areas. Regular, scheduled farm visits are used alongside unannounced
visits. Where non-compliance is found, prompt action is taken. Before we contract with
new farmers, we undertake due diligence to check for their ability to comply with
deforestation conversion free (DFC) status. If any cases of deforestation are observed,
the relevant farmer will be put under remediation to reforest in the same eco-region
and/or jurisdiction. We ask our third-party suppliers to take equivalent steps. Training on
best practices in sustainable agriculture practices, appropriate to growing conditions, are
provided to the directly contracted farmers in our supply chain, with 129,000 people
trained in topics associated with natural resources preservation in 2022 in our own
operations and those of strategic 3rd party suppliers.
Classification of biodiversity -sensitive area
Key Biodiversity Area (KBAs)
Country/area
Sri Lanka
Name of the biodiversity-sensitive area
Knuckles Range
Rattota and associated hydrobasin
Udawattakele
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
277
Gannoruwa Forest
Deniyalanda and associated hydrobasin
Hakgala / Meepilimana
Dunhinda falls and associated hydrobasin
Halgran Oya and associated hydrobasin
Haputale
Horton plains / Ohiya / Pattipola-Ambewela
Kalupahana
Kandapola-Seethaeliya / Pedro
Minneriya / Girithale / Kaudulla
Namunukula
Polonnaruwa
Sigiriya
Wasgomuwa
Wirawila Tank
Proximity
Up to 10 km
Briefly describe your organization’s activities in the reporting year located in
or near to the selected area
In 2022, we commissioned The Biodiversity Consultany to conduct a geospatial
Biodiversity Risk Assessment, mapping our contracted farmers against five global
Biodiversity indicators and categorising them based on Low, Medium & High risk .The
assessment mapped 69,200 of our directly contracted farmers against a recognized
range of Biodiversity Indicators such as Ecosystem Intactness Index, proximity to World
heritage sites and/or Alliance for Zero Extinction sites/ Key Biodiversity Areas and
Species Threat Abatement and Restoration Score, and shown that 981 farmers were
classified as high risk for the combined score risk of the study. We assessed the farmer-
by-farmer case, understanding what was the respective indicator that put them on high-
risk category. Based on this desktop exercise, we did an on the ground assessment
checking what could be potential operational farming practices or potential risk factors to
the biodiversity. 632 farmers were confirmed to be still in our contract base for 2022 and
had adopted a biodiversity management plan. The relevant operational activity is
tobacco farming.
Indicate whether any of your organization’s activities located in or near to the
selected area could negatively affect biodiversity
Yes, but mitigation measures have been implemented
Mitigation measures implemented within the selected area
Operational controls
Explain how your organization’s activities located in or near to the selected
area could negatively affect biodiversity, how this was assessed, and describe
any mitigation measures implemented
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
278
Our agriculture activities have potential impact and dependency on biodiversity, and use
of ecosystem services, such as forest products, soil, and water. Conventional
agricultural practices can be resource intensive as they can be associated with
deforestation, pollution, and biodiversity loss. To mitigate this risk, we continue to
develop, advance, and implement sustainable agricultural practices that help to
preserve natural capital, like reduction in the use of agrochemicals and soil erosion, as
well as preservation of soil fertility. Farmers classified as high risk in the Biodiversity
Risk Assessment were re-assessed on the ground by our field technicians and, if further
risks were identified, a biodiversity management plan was implemented. Factors looked
at during the assessment included activities that could be causing risk to biodiversity,
presence of endangered animal species, presence of invasive plant species, animal and
vegetal species that may have benefits for the agriculture or socio-cultural-economic
interest, and presence of natural habitats patches.
Aside of this individual approach, we focus on developing and deploying practices and
programmes to promote and leverage sustainable agriculture practices in our directly
contracted farmers first. To reduce the risk of deforestation, we promote afforestation of
no invasive species to produce wood in the farms that grow tobacco. We provide our
directly contracted farmers with tree saplings as sources of sustainable fuel for tobacco
curing. Our third-party suppliers are expected to follow similar practices with their
contracted farmers. We also promote the use of alternative fuels to cure tobacco. In
2022 22% of our contracted farmers used other types of biomass fuels for tobacco
curing. Forests or other natural areas being cleared to create farmland for tobacco is a
risk that we are working hard to reduce. We monitor our directly contracted farmers
regarding farmland expansion and the risk of natural ecosystems conversion. This
includes the risk of encroaching on legally protected areas and/or recognised
biodiversity areas. Regular, scheduled farm visits are used alongside unannounced
visits. Where non-compliance is found, prompt action is taken. Before we contract with
new farmers, we undertake due diligence to check for their ability to comply with
deforestation conversion free (DFC) status. If any cases of deforestation are observed,
the relevant farmer will be put under remediation to reforest in the same eco-region
and/or jurisdiction. We ask our third-party suppliers to take equivalent steps. Training on
best practices in sustainable agriculture practices, appropriate to growing conditions, are
provided to the directly contracted farmers in our supply chain, with 129,000 people
trained in topics associated with natural resources preservation in 2022 in our own
operations and those of strategic 3rd party suppliers.
C15.5
(C15.5) What actions has your organization taken in the reporting year to progress
your biodiversity-related commitments?
Have you taken any actions in the reporting period
to progress your biodiversity-related
commitments?
Type of action taken to progress
biodiversity- related commitments
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
279
Row
1
Yes, we are taking actions to progress our
biodiversity-related commitments
Land/water protection
Education & awareness
Livelihood, economic & other
incentives
C15.6
(C15.6) Does your organization use biodiversity indicators to monitor performance
across its activities?
Does your organization use indicators to monitor
biodiversity performance?
Indicators used to monitor
biodiversity performance
Row
1
Yes, we use indicators
Pressure indicators
Response indicators
C15.7
(C15.7) Have you published information about your organization’s response to
biodiversity-related issues for this reporting year in places other than in your CDP
response? If so, please attach the publication(s).
Report type
Content elements
Attach the document and indicate
where in the document the relevant
biodiversity information is located
In voluntary sustainability
report or other voluntary
communications
Content of biodiversity-
related policies or
commitments
Impacts on biodiversity
Details on biodiversity
indicators
Risks and opportunities
Biodiversity strategy
Page 56 - 57
1
1
BAT_Annual_Report_Form_20-F_2022 (1).pdf
C16. Signoff
C-FI
(C-FI) Use this field to provide any additional information or context that you feel is
relevant to your organization's response. Please note that this field is optional and is
not scored.
British American Tobacco CDP Climate Change Questionnaire 2023 Thursday,
July 27, 2023
280
C16.1
(C16.1) Provide details for the person that has signed off (approved) your CDP climate
change response.
Job title
Corresponding job category
Row 1
Tadeu Marroco - Chief Executive
Chief Executive Officer (CEO)
