Climate Change Data

Environmental Metrics

ESG Focus Areas

• Marketplace
• Environment
• Supply Chain
• People and Culture

Environmental Achievements

• Implemented a programme aimed at reducing our carbon footprint by addressing various aspects of our business, including energy usage, water consumption, waste to landfill and business travel.
• Planted approximately 22,000 trees to neutralize carbon footprint in collaboration with community members.

Social Achievements

• Launched Youth Smoking Prevention (YSP) Programme in 2000, revamping it in 2010 to raise retailers’ and consumers’ awareness of the age requirement for purchasing tobacco products.
• Revamped and re-launched Core Values to strengthen the connection between employees and the company.
• Strengthened ties with employee's labor union by introducing a program for the Promotion of Management-Labor Cooperation.
• Continued to support communities and charitable projects focusing on areas that include empowerment, civic life and the environment.

Governance Achievements

• Adhere stringently to the requirements of the Tobacco Control Act 2009 and our own International Marketing Standards (IMS).

Climate Goals & Targets

Environmental Challenges

• Continued sluggish growth locally.
• Increased costs of raw materials.
• Reduced demand from associates in the Caricom markets.
• Local sales volumes impacted during the four months of the state of emergency and curfew.

Mitigation Strategies

• Focus on achieving sustainable growth through successful marketing based on innovation, responsibility and consumer choice.
• Deep scrutiny of all overhead categories to contain key cost pools and proactively manage operating expenses.
• Investments in machinery refurbishment and upgrades to improve efficiency and quality.
• Implementation of Global Process Standards (GPS) alignment project to align processes to benchmark multinational companies.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Continued adherence to good business practice, world class products, stakeholder engagement, and commitment to deliver value for our shareholders.
• Ongoing adherence to good business practice, world class products, stakeholder engagement, and commitment to deliver value for our shareholders.
• Continued efforts to drive sustainability initiatives across the business which include recycling, energy efficiency, water conservation, world class health & safety standards as well as employee development programmes.

Social Achievements

• Longstanding partnership with the Steelpan, the national instrument of the country.
• Actively engaged with the distinguished 12-time National Panorama champions, demonstrating our unwavering support for the development of this iconic musical art form.
• Engaged in initiatives that would provide economic relief and created employment in some communities.
• Successfully run daily operations in Mt Do’r community.

Governance Achievements

• Ongoing adherence to good business practice, world class products, stakeholder engagement, and commitment to deliver value for our shareholders.
• Continued efforts to drive sustainability initiatives across the business which include recycling, energy efficiency, water conservation, world class health & safety standards as well as employee development programmes.
• An international audit conducted in 2022 confirmed that the Company has the necessary controls in place to become an enterprise that is fit for the future.

Climate Goals & Targets

Environmental Challenges

• Inflation impacting real income and purchasing power of citizens, leading to increased demand for lower-priced tobacco products and contributing to illicit trade.
• COVID-19 restrictions, supply chain disruption, and a challenging economic environment.
• Adverse reaction by consumers to the format change of Lucky Strike Red – Super King Size, severely disrupted supply chain and evolving consumer behaviour by segment.
• Relatively slow economic recovery post the COVID-19 restrictions.
• Decline in the volume of Lucky Strike Red’s newest stock unit.
• Increasing appetite for lower-priced products in all categories.
• Increasing industry restrictions, rising crime rates, global supply chain shortages and the influx of illicit product.
• Increasing inflation, downtrading, competition and economic headwinds.

Mitigation Strategies

• Accelerating the introduction of new product offers to respond to changing consumer demands, transforming our portfolio, and leveraging our best-in-class distribution system to ensure uninterrupted delivery of our products to customers.
• Leveraging the benefits of a diverse portfolio which covers the entire spectrum of consumer demand.
• Introduction of ultra-low price offers since Q4 2021.
• Adjusting the portfolio in response to consumer preferences.
• Keeping the Regular Size Full Flavoured Variant as an option for Lucky Strike Red.
• Transitioning Lucky Strike White to a King Size format.
• Introducing a 10’s variant of Rothmans.
• Transitioning Rothmans to a King Size and a 10’s format.
• Working with our suppliers, distributors and other key stakeholders to drive our business agenda and win with our customers and consumers.
• Driving the never-ending process of optimization of our route to market, more focused on increasing the number of retailers we serve with improved convenience and tools to continue to support the growth of their businesses with our winning portfolio.
• Working with our distribution partners to leverage technology to drive optimization of the collective business as an engine for growth in a market space where data driven insights are needed to keep winning.
• Investing ahead in getting closer to our consumers to beat the competition in all segments.
• Managing inventory levels to mitigate the risk of stock outages due to supply chain disruptions.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Celebrated World Environment Day, distributing 1700 seedlings.
• Organized a beach clean-up exercise at Coffee Beach, La Brea.

Social Achievements

• Successfully negotiated the 2023-2025 Collective Bargaining Agreement in the shortest timeframe and with the lowest settlement in the Company’s history.
• Launched a new Reward & Recognition Platform – Building Tomorrow.
• Consistently delivered employee engagement initiatives through the Power of We platform.
• Administered the Your Voice Survey to measure employee engagement.
• Hosted an Investor Forum attended by the JMMB.
• Commemorated 119 years of operation with a special breakfast event for employees and a Community Hamper Distribution of 120 hampers.
• Received the Most Successful Market Entrant Award at the TTMA President’s Dinner and Awards 2023.

Governance Achievements

• All Directors participated in formal corporate governance training in 2023.
• Successfully renewed its license to manufacture, import, export and distribute in accordance with the Tobacco Control Act.
• Implemented operational changes to facilitate the successful rotation of Graphic Health Warnings.

Climate Goals & Targets

Environmental Challenges

• Confusion and uncertainty among consumers and trade partners during portfolio consolidation.
• Diminished planned production volume and shift in local distribution model leading to constrained warehouse capacity.
• Volatile market demands requiring flexible operating model.
• Illicit cigarette trade impacting safety and sustainability.

Mitigation Strategies

• Initiated a focused stabilization process, re-establishing closer connections with trade partners and engaging consumers.
• Strategic collaboration with trade partners.
• Appointment of Massy Distribution as the sole distributor.
• Optimized route to market strategy focused on safety, scale, and sustainability.
• Introduced flexibility, transitioning between a two and three shift hybrid operating model.
• Expanded distribution reach to provide consumers with access to legitimate products.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Most Successful Market Entrant Award (TTMA)