Supply chain
- For the latest information, please see Integrated Report 2020. Information below is for FY2019. FY2020 online content will be released in June 2021.
Building sustainable supply chains
Maintaining a well-managed supply chain is essential for our business sustainability. We work closely with all of the stakeholders involved to reduce negative social and environmental impacts.
Our factories produce ready-made cigarettes, other tobacco products, and some of our Reduced-Risk Products. We purchase approximately half of our tobacco leaf from directly contracted growers, and the other half from tobacco leaf merchants.
To ensure the highest levels of sustainability and integrity across the supply chain, all of our suppliers are required to comply with our supply chain policies and standards.
Aspirational goal
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We will reduce environmental and social risks, and enable transparent and responsible practices across our supply chain.
Targets and Progress
AGRICULTURAL LABOR PRACTICES
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Target
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We will implement our Agricultural Labor Practices (ALP) program in all sourcing countries by 2025.
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Progress
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In 2019, 81% of our supplying entities reported against ALP. [58%*1 of our directly contracted growers and 98% of our leaf merchants were covered by ALP; leaf merchants data come from reporting entities only and excluding India and China.] 74% of our volumes were covered by ALP.
SUPPLIER SCREENING
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Target
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We will screen all key suppliers against environmental, social, and governance criteria by 2023.
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Progress
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At the end of 2019, 67% of our key suppliers were screened against ESG criteria.*2
GREENHOUSE GAS EMISSIONS
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Target
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We will reduce greenhouse gas emissions from our own operations by 35% and from our direct leaf supply chain by 40%, between 2015 and 2030.
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Progress
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Since 2015, we have reduced greenhouse gas emissions from our own operations by 17.4%. Greenhouse gas emissions from our direct leaf supply chain increased by 17.9%.*3
WATER AND WASTE
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Target
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We will reduce water withdrawal by 15% and waste by 20%, in relation to our own operations, between 2015 and 2030.
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Progress
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Since 2015, we have reduced water withdrawal by 9.7% and waste by 6.3%, in relations to our own operations.*3
FORESTRY
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Target
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We will replace all wood from natural forests used in the tobacco curing process of our directly contracted growers with renewable fuel sources by 2030.
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Progress
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Based on our 2019 sustainable tree planting activities in Tanzania, Zambia and Brazil, we estimate that we are on a path to achieve 59% renewable wood sourcing by 2026.
*2 Results for our international tobacco business.
*3 The main reason for the increase in GHG emissions from our direct leaf supply chain is the increased volume sourced from Zambia and Tanzania, both of which use wood for curing that currently is predominantly non-renewable. We expect that the impact of initiatives to reduce leaf-related emissions will be seen from 2022 onwards, with curing barn upgrades and the increase in proportion of renewable wood used for curing in Zambia and Tanzania.
Reducing our environmental impact in the tobacco value chain
Read more about our targets on 'Greenhouse gas emissions', 'Water and Waste', and 'Forestry'.
Read more about our programs and initiatives in our international tobacco business.