British American Tobacco : BAT Unveils Ambitious New Environmental Targets in 2020 ESG Report

• New targets are key drivers towards achieving A Better Tomorrow™ for all stakeholders
• New environmental targets include:
  • Carbon neutrality across value chain by 2050
  • 100% renewable electricity by 2030
  • 100% of all manufacturing sites certified by the Alliance for Water Stewardship (AWS) by 2025
  • 100% of all manufacturing sites to have zero waste to landfill by 2025
• Report shows significant progress one year since stretching new ESG targets announced in 2020*

London, 9 March - BAT has announced it is committing to reaching carbon neutrality across its value chain by 2050. This ambition is highlighted in BAT's dedicated ESG report, which demonstrates significant progress towards its goals.

In 2020 BAT announced its ambition to be carbon neutral for emissions resulting from its own business activities (Scope 1 & 2) by 2030. This new commitment aims to also cut emissions across its value chain (Scope 3). This builds on BAT's existing efforts to engage with suppliers on climate change and to support contracted farmers in adopting less carbon-intensive farming techniques.

Having achieved its water recycling target ahead of time, BAT has also announced it will set the bar higher, to increase the amount of water recycled to 30% by 2025. By 2025, BAT also aims to have 100% of all manufacturing sites certified by the Alliance for Water Stewardship (AWS). This respected independent audit certification will help validate BAT's water stewardship.

BAT has been on its sustainability journey for more than 20 years. In March 2020, it announced stretching new ESG targets as part of its evolved strategy to deliver A Better Tomorrow™. The latest ESG report demonstrates that BAT has delivered significant progress since then, including:

• Increasing consumers of non-combustible products by 3 million to 13.5 million at year end 2020
• Increasing New Categories revenue by 15% in 2020 versus 2019
• Increasing renewable energy to 26% - a 10% increase from last year, and a greater than 30% reduction in overall carbon emissions since 2019
• Reducing water withdrawn by nearly 11% since 2019
• Holding more than 38,000 human rights training sessions, with more than 390,000 attendances across its supply chain, and
• Reaching 38% of female representation in management roles.

Jack Bowles, BAT's Chief Executive, said 'We are at a pivotal moment in our transformation and are committed to building the enterprise of the future. This report gives a transparent account of our progress and our heightened ambition. We continue to drive for excellence across all areas of ESG and we're proud to announce our new commitment of expanding our carbon neutrality target to include Scope 3 emissions by 2050.'

'BAT is on track to build A Better Tomorrow™ for all, from enabling consumer choice and encouraging consumers to switch to scientifically-substantiated reduced-risk products** to protecting the environment, respecting human rights and investing in talent. Ultimately, our ambition is to reduce the health impact of our business and to deliver a positive environmental and social impact.'

BAT's sustainability efforts and commitment to high standards have received notable independent recognition. These include our inclusion in the Dow Jones Sustainability Indices for 19 consecutive years (the only tobacco company to be listed in the prestigious World Index in 2020), a MSCI rating of BBB and CDP A List status.

ENDS

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