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BAT publishes ambitious roadmap to reach Net Zero by 2050

PRESS RELEASE

04 OCTOBER 2022

BAT publishes ambitious roadmap to reach Net Zero by 2050

  • BAT’s Low-Carbon Transition Plan further demonstrates our Race to Zero commitment to achieving climate change emission reduction targets.
  •  Targets and actions are in line with BAT’s ambitious 1.5ºC-aligned trajectory, approved by the Science Based Targets initiative (SBTi) in July 2022.
  •  This is the latest milestone in BAT’s journey to tackle climate change and to build A Better Tomorrow™.

BAT has published its Low-Carbon Transition Plan, detailing the actions it will take to reach its climate targets. This includes halving absolute emissions across its value chain by 2030, from a 2020 baseline, and to be net zero across its value chain by 2050 at the latesti.

Kingsley Wheaton, BAT’s Chief Growth Officer, said: “We’re proud to take this latest step in our sustainability journey. By outlining the measures we will take to live up to our Net Zero targets through our Low-Carbon Transition Plan, we’re demonstrating our continuing commitment to building A Better Tomorrow. As a global company, we know minimising impacts across our value chain is the right thing to do, as well as making sound business sense. That is why we have set stretching science-based climate-related targets and continue to embed sustainability across our business.”

Using risk assessment analyses and scenario planning, BAT identified risks and opportunities along the entire value chain.

BAT has committed to reduce absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 50% by 2030 from a 2020 base yearii.

Furthermore, according to the CDP , tackling Scope 3 emissions, which are indirect emissions from BAT’s value chain, will be the most critical and challenging for the sector, and it constitutes the majority of BAT’s total carbon footprint.

For these Scope 3 emissions, BAT has also committed to reduce emissions by 50% by 2030 from a 2020 base yearii, by:

  •  Partnering with suppliers, especially those contributing the most emissions, to ensure sustainability progress.
  • Progressively transitioning from air to sea freight as a lower-carbon mode of transport, on the occasions that products go by airiii.
  • Collaborating with farmers on carbon-smart tobacco leaf farming and other projects.
  • Fostering circularity throughout R&D, designing for end-of-life processes, and promoting eco-design principles.
     

BAT has been consistently recognised for performance in sustainability and was named as a 2022 Climate Leader by the Financial Times, for successfully lowering its emissions intensity, and received the highest gold class in the S&P Global Sustainability Yearbook 2021. BAT was also featured in the Dow Jones Sustainability Indices (DJSI) for the 20th consecutive year in 2021 and was the only tobacco company named on the DJSI’s World Index that same year.

i In 2021, BAT signed up to the UN-backed Race to Zero campaign, which aims to achieve net zero carbon emissions by 2050. As part of this, signatory companies are asked to outline detailed plans for achieving these targets, within one year of signing up. The Paris Agreement of 2015 set a framework seeking to limit the rise in average global temperatures to 1.5ºC above preindustrial levels. As such, BAT realigned its emissions reduction strategy in line with this 1.5ºC target, a trajectory which was approved by the SBTi in July 2022.

 

ii  This will be done through actions including:

 

  •  Investing in energy efficient projects, systems, and technologies. Implementing more than 70 such initiatives in 2021 resulted in a reduction of nearly 19,000 MT CO2e emissions.
  •  Entering into longer term power purchase agreements and investing in on-site renewable energy generation projects. By expanding global renewable electricity purchases in 2021, BAT created a reduction of 16,000 tCO2e.
  •  Rolling out electric and hybrid vehicles across BAT’s fleet, using fuels with high biofuel content, and running route optimisation processes. Between 2017 and 2021, BAT reduced fleet emissions by 30%. More information is provided in the full roadmap.

 

iii Most production currently goes by sea freight.

Enquiries

 

Media Centre
+44 (0) 20 7845 2888 (24 hours)  | @BATplc 

Investor Relations
Victoria Buxton: +44 (0)20 7845 2012
John Harney: +44 (0)20 7845 1263

 

Forward-looking statements

 

This release contains certain forward-looking statements, including "forward-looking" statements made within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as "believe," "anticipate," "could," "may," "would," "should," "intend," "plan," "potential," "predict," "will," "expect," "estimate," "project," "positioned," "strategy," "outlook", "target" and similar expressions. These include statements regarding our customer target ambition, New Categories revenue targets and our ESG targets.

All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed that the expectations reflected in this release are reasonable but they may be affected by a wide range of variables that could cause actual results to differ materially from those currently anticipated. A review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found by referring to the information contained under the headings “Cautionary Statement” and "Group Principal Risks " in the 2021 Annual Report and Form 20-F of British American Tobacco p.l.c. (BAT).

Additional information concerning these and other factors can be found in BAT's filings with the U.S. Securities and Exchange Commission ("SEC"), including the Annual Report on Form 20-F and Current Reports on Form 6-K, which may be obtained free of charge at the SEC's website, http://www.sec.gov and BAT’s Annual Reports, which may be obtained free of charge from the BAT website www.bat.com.

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. The forward-looking statements reflect knowledge and information available at the date of preparation of this release and BAT undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.