Climate Change Data

British American Tobacco (Malaysia) Berhad

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:752 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:752 tCO2e/year
Scope 2 Emissions:0 tCO2e/year
Scope 3 Emissions:2172 tCO2e/year (2022 data)
Renewable Energy Share:30%
Total Energy Consumption:1875 MWh/year
Water Consumption:1117 m3/year
Waste Generated:37.13 tons/year

ESG Focus Areas

  • Tobacco Harm Reduction
  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 61% reduction in Scopes 1 and 2 GHG emissions (vs. 2020 baseline)
  • 30% of energy consumed from renewable sources
  • 70% reduction in waste generated (vs. 2017 baseline)
  • 83% recycling rate of waste generated
  • Zero waste sent to landfill from direct operations
  • 83% reduction in water withdrawn (vs. 2017 baseline)
  • Implemented New Category device take-back scheme
  • Replaced inner foil wrapper of Benson and Hedges package with recyclable paper

Social Achievements

  • Launched Beyond Benih community investment program, supporting ~14,000 beneficiaries
  • Zero work-related fatalities and Lost Time Injuries
  • 36% of management roles held by women
  • 35% cross-industry hires in management
  • Average 40 training hours per employee
  • Implemented improved Parental Leave Policy

Governance Achievements

  • 100% of employees completed SoBC training and compliance sign-off
  • 100% of reported Standards of Business Conduct (SoBC) cases investigated
  • Zero incidents of significant non-compliance with marketing regulations

Climate Goals & Targets

Long-term Goals:
  • Net zero GHG emissions by 2050
Medium-term Goals:
  • 50% reduction in Scopes 1 and 2 GHG Emissions by 2030 (vs. 2020 baseline)
  • 50% reduction in Scope 3 GHG Emissions by 2030 (vs. 2020 baseline)
  • 50% renewable energy by 2030
Short-term Goals:
  • Reduce water consumption by 35% by 2025 (vs. 2017 baseline)
  • Reduce waste generation by 25% by 2025 (vs. 2017 baseline)
  • Achieve 90% recycling rate by 2025
  • Achieve zero waste to landfill by 2025
  • Increase proportion of women in management roles to 45% by 2025
  • Increase cross-industry hires in management to 45% by 2025

Environmental Challenges

  • High tobacco black market (55.6% of combustible market)
  • Economic headwinds and inflationary pressures reducing consumer disposable income
  • Increased vapour usage
  • Accelerated combustible market reduction & downtrading
Mitigation Strategies
  • Price increase for key brands to ensure sustainable business model
  • Investments in vapour category with launch of Vuse products
  • Cost optimisation initiatives
  • Engagement with policymakers to address black market and support sensible regulations
  • Implementation of a device take-back scheme for New Category products

Supply Chain Management

Supplier Audits: 100% of operations assessed for corruption-related risks

Responsible Procurement
  • Supplier Code of Conduct (SCoC)

Climate-Related Risks & Opportunities

Physical Risks
  • Flash floods impacting operations and supply chains
Transition Risks
  • Lower-than-expected return on investments in renewable energy
  • Supply chain risks associated with climate change
  • Exclusion from international ESG indices
Opportunities
  • Reduced exposure to rising energy costs through solar energy transition
  • Participation in carbon offset trading

Reporting Standards

Frameworks Used: GRI Standards, Bursa Malaysia Sustainability Reporting Guide (3rd Edition), FTSE4Good requirements

Certifications: ISO 14001 (implied), PAS2060

UN Sustainable Development Goals

  • UNSDG 3 (Good Health and Well-being)
  • UNSDG 7 (Affordable and Clean Energy)
  • UNSDG 8 (Decent Work and Economic Growth)
  • UNSDG 9 (Industry, Innovation and Infrastructure)
  • UNSDG 10 (Reduced Inequalities)
  • UNSDG 12 (Responsible Consumption and Production)
  • UNSDG 13 (Climate Action)

The company's sustainability strategy is aligned with these SDGs through initiatives such as Tobacco Harm Reduction, renewable energy adoption, community investment, and responsible marketing.

Sustainable Products & Innovation

  • Vuse GO range of disposable vapes
  • glo™ Tobacco Heated Product

Awards & Recognition

  • Top Employer in Malaysia (6th consecutive year)
  • Top Employer in Asia Pacific and Global categories
  • Platinum Gold Award from MOSHPA (5th consecutive year)
  • 2024 Graduates' Choice of Employer to Work for
  • Bronze award for Best Hybrid Working Model