BAT Vietnam - Excellence in environmental management

Climate change

Addressing climate risks and opportunities across our value chain is key to the sustainability of our business. We have set ourselves an ambitious target to reach carbon neutrality by 2030 for our operations, and are already making great progress through:

•  Improving the energy efficiency of our factories, such as by upgrading to more efficient and lower impact equipment;
•  Increasing our use of renewable energy through renewable energy purchases and on-site energy generation projects; and
•  Optimising our logistics and fleet, such as through improving vehicle performance and fuel efficiency.

Why tackling climate change matters

Climate change impacts will be felt more strongly in the coming years. This can impact the natural environment and communities in which we operate, as well as our business and our supply chain. To secure access to natural resources, we need to build a climate-resilient business and work with our suppliers closely to address any risks arising from climate change. These risks are increasingly getting more complex, with potential impacts on crop yields, disruption to distribution networks and the livelihoods of communities, and reduced access to drinking water – a fundamental human right. While some impacts of climate change will be common everywhere, it is essential we understand and manage localised risks. Supporting people in our supply chain and preparing for the future are vital aspects of our business’s sustainability.

Water Stewardship

At BAT Vietnam, we are committed to protecting and preserving valuable water resources through various water management activities. This includes the prevention and early detection of leakages, adhering to maintenance regime, replacing equipment with more water efficient models, and improving technology for the operating process to reduce water withdrawal and increase the recycling rate of water by using treated water for landscapes.

Water management is vital to not only sustainable farming but also direct operations. It’s both our responsibility and for good business to use water efficiently.

BAT Vietnam’s Goals:

•  Reduce 35% of total amount of water withdrawn (vs 2017 baseline) by 2025
•  Increase water recycling rate to 35% by 2025. This helps save fresh water and reduce water withdrawn

Our 2021 highlights:

•  Water withdrawn reduced to 22,941 m3 (vs. 23,444 m3 in 2020) despite the additional increase in water use during the “stay-at-work” period
•  29% of water was recycled

AWS Certification

In 2022, we embarked on the Alliance for Water Stewardship (AWS) certification. AWS is a global membership collaboration for businesses, NGOs, and the public sector, where members contribute to the sustainability of local water resources by adopting and promoting a universal framework for the sustainable use of water – the International Water Stewardship Standard, or AWS Standard.

Our first phase will focus on implementing the AWS Standard at our factory at Bien Hoa.

Circular Economy

We are helping the planet and generating competitive advantage with our circular economy strategy. We are reducing waste today, from innovative product design to responsible waste management across our operations. And we are equipping ourselves with insights and innovation, led by a cross-functional leadership team. To deliver a greener tomorrow, we have established a circular economy strategy for all our product categories. We are already adopting innovative, greener design opportunities.

Biodiversity

Our business now and in the future depends on biodiversity, as we rely on natural resources like clean water and healthy soils. In Vietnam, we are leveraging sustainable agriculture through advanced biological technology lead by experts in the field, directly support our 1,692 contracted farmers in Vietnam. We have a comprehensive approach to address any biodiversity impacts of tobacco growing. We do this by:

•  Rolling out tools and technologies developed by our experts, like integrated pest management that minimises the use of agrochemicals, and drip irrigation and floating seedbeds that help to reduce water and agrochemical use;
•  Promoting the sustainable use of wood fuels for tobacco curing and helping farmers deploy more efficient curing technologies that recycle up to 95% of total waste; and
•  Providing ongoing training and capacity building on environmental best practice.