BAT Vietnam - BAT Vietnam protects the environment and creates positive social value with nature-based solutions

BAT Việt Nam bảo vệ môi trường và tạo giá trị xã hội tích cực bằng giải pháp dựa vào thiên nhiên

The International Union for Conservation of Nature (IUCN) defines Nature-based Solutions (NbS) as “actions to protect, sustainably manage, and restore natural or disturbed ecosystems, effectively and adaptively address societal challenges, and deliver benefits to lives and ecosystems”.

Some of the environmental and social issues that Nature-based Solutions address include climate change mitigation and adaptation, water and food security, and disaster risk reduction. The 2019 United Nations Climate Action Summit highlighted Nature-based Solutions as an effective approach to combating climate change.

Nowadays, many companies are also actively applying Nature-based Solutions to minimize their impacts on the environment, promote the restoration and protection of nature, as well as create positive social values, towards the goal of sustainable development.

At the 7th Training Program for Media Agencies on Sustainable Development organized by the Vietnam Business Council for Sustainable Development under the Vietnam Chamber of Commerce and Industry (VBCSD-VCCI) with the theme "Moving towards sustainable development and Net Zero goals through Nature-based Solutions (NbS)", many companies shared typical strategies and initiatives in implementing NbS along with positive results for the environment and society. In particular, Ms. Do Hoang Anh, Head of Corporate & Regulatory Affairs for East Asia of British-American Tobacco Group (BAT) shared about BAT Vietnam's program to build sustainable raw material growing areas, and at the same time brought interesting information about the company's activities to restore and protect biodiversity in Vietnam.

Protecting, sustainably managing, and restoring natural ecosystems

As a company with a strong commitment to sustainable development in Vietnam, BAT Vietnam always focuses on ensuring a balance between business development and environmental and social factors, especially sustainability in farming activities in the supply chain when BAT Vietnam's production and business sector is closely related to raw material growing areas.

Firstly, BAT Vietnam has closely coordinated with suppliers and farmers in the supply chain to implement environmental management in planting, harvesting, and processing raw materials through many practical initiatives, focusing on land and water resource management, climate change adaptation, and preserving and protecting biodiversity and ecosystems.

Specifically, to manage land resources in farming activities, BAT Vietnam conducts soil sampling for analysis, thereby developing a suitable fertilizer regime to limit fertilizer loss into the environment, and implementing liming to improve soil acidity (PH) to increase the efficiency of fertilizer use by plants.

Regarding water resource management, BAT Vietnam has researched and tested the drip irrigation system since 2021 with the aim of saving water, limiting leaching and loss of irrigation water. Up to date, the drip irrigation system has been applied on 1,748 hectares (accounting for nearly 90% of the area using the irrigation method), contributing to saving about 1,200 m³ of water per hectare - equivalent to about 25% of the irrigation water compared to the traditional furrow irrigation method. The enterprise aims to have 100% of the area using the irrigation method apply the drip irrigation system by 2025.

In the aspect of raw material cultivation, BAT Vietnam also implements many Nature-based Solutions to adapt to climate change. The company closely coordinates with suppliers in the raw material supply chain to trace sustainable sources of drying fuel. At the same time, it has deployed a semi-automatic drying system since 2021 and has so far reached 150 drying kilns, helping to save about 33% of drying fuel compared to traditional manual drying kilns. In addition, this year, BAT Vietnam also tested electric drying kilns, starting with 3 kilns using 100% electricity, not using firewood, contributing to reducing CO2 emissions in Scope 3, as well as minimizing risks related to deforestation.

In addition to the efforts in the company's supply chain, BAT Vietnam also promotes the conservation and protection of biodiversity and ecosystems.

Specifically, the company ensures compliance with the new biodiversity operating standards of BAT Group, which include regulations and guidelines related to contents such as deforestation prevention, conversion of natural ecosystems, net positive impacts on forests, traceability of drying fuel and sustainable drying fuel, biodiversity management plan.

Simultaneously, BAT Vietnam also cooperates with Gaia Nature Conservation Center to implement a reforestation project through the protection of 120 hectares of mangrove forest in Mui Ca Mau National Park and is expected to welcome nearly 450,000 mangrove trees in 2030, and cover 4 hectares of forest with 2,000 trees in Dong Nai Cultural Nature Reserve. This activity contributes to reducing greenhouse gas emissions, preventing erosion, enhancing biodiversity, etc., and bringing other practical benefits to the local community. This is also BAT Vietnam's effort to realize BAT Group's commitment to Carbon Neutrality by 2030 and Zero Emissions by 2050.

Creating positive social value

BAT Vietnam's Nature-based Solutions also create positive social value through improving farmers' income and ensuring safety in the supply chain.

To improve farmers' income, BAT Vietnam has implemented the Top Ripe project, focusing on producing high-quality, properly ripe leaves through the application of technical and fertilization impacts. Farmers participating in this project will sell their products at a 10% higher price per kg, thereby helping them increase their income. The project was piloted in 2022, contributing to increasing the income of more than 120 farmers in Dak Lak and Gia Lai.

BAT Vietnam also strictly complies with not using child labor and forced labor in the farming activities of the enterprise's supply chain, ensuring the health and safety of farmers when all farmers in the supply chain are provided and required to wear labor protection gear during the process of spraying pesticides and harvesting tobacco leaves.

BAT Vietnam always believes that the positive values the company commits to and strives to the environment and society will be the driving force for sustainable growth for BAT Vietnam's business activities in particular and contribute to the sustainable development of Vietnam in general.

There are many factors leading to the success of building a sustainable source of raw materials. These include factors such as: companies need to set specific goals, be willing to research and invest in building strategies, policies, etc., as well as promote long-term implementation, and ensure effective governance.

“In addition, we always believe that the success of promoting sustainable development activities, specifically in building a sustainable supply of raw materials, must come from the determination and strong commitment of the company. From there, all investments and efforts are pledged to be carried out in the long term, aiming to create lasting and significant positive impacts”, shared Ms. Do Hoang Anh, Head of Corporate & Regulatory Affairs for East Asia at BAT.