BAT Vietnam releases ESG report 2021

This document provides a strategic vision with clear standards and goals and offers an overview of BAT Vietnam's sustainability activities and performance in 2021.

BAT Vietnam ESG report 2021. Photo courtesy of BAT Vietnam

The highlight of BAT Vietnam's report is the implementation in each area of environment, social and governance, known as ESG that is becoming increasingly popular worldwide and is part of the United Nations action plans.

Regarding environment, the company has undertaken a wide range of initiatives relating to climate change, water management, and zero-waste to landfill at operation sites, as well as biodiversity and afforestation.

Significant results include a 100% switch to LED lamps at both operations sites, reducing the average annual energy usage by 12% compared to 2018, equivalent to 302 tons of CO2 emissions, and achieving zero waste to landfill at both sites.

In addition, over 99% of its waste was recycled while 100% of wood used for tobacco curing by farmers in its supply chain is from sustainable sources.

Regarding social initiatives, BAT Vietnam is committed to enhancing the livelihoods of all farmers and respecting the rights of people across its entire supply chain and operations. Aiming for zero accidents company-wide and ensuring a safe working environment for employees are the top priorities of BAT Vietnam.

2021 marked several milestones like 12 years accident-free at BAT Vietnam, operating the "stay-at-work" model during prolonged Covid-19, and sustaining training and development with 21 promotions and over 5,000 learning hours across the organization despite 2021 being a challenging year for the world of businesses and Vietnam’s economy.

Regarding governance, BAT Vietnam ensures 100% adherence to its Standards of Business Conduct (SoBC) and its Youth Access Prevention (YAP) guidelines.

Especially, in 2021, BAT Vietnam was named a winner at Asia Responsible Enterprise Awards in the Corporate Governance category for its "Delivery with Integrity" program.

2021 was also the third year that BAT was listed in "Top 100 Most Sustainable Enterprises in Vietnam" organized by VCCI – VBCSD.

BAT Vietnam was listed in "Top 100 Most Sustainable Enterprises in Vietnam" organized by VCCI - VBCSD in 2017, 2018 and 2021. Photo courtesy of BAT Vietnam

Daniel Hsu, BAT Vietnam's general manager, said BAT is transforming its business with the leading purpose to "Build a Better Tomorrow" by reducing the health impacts of the business.

"Through the initiatives that have been undertaken within BAT Vietnam, we continue to reduce environmental impacts and promote a shift towards a circular economy. Water and energy efficiency programs are some of our highlights of 2021, showing a promising future for our sustainability goals and ambitions," said Hsu.

In its ESG Report 2021, BAT Vietnam also announced its environmental targets by 2025. The goal is to increase the use of renewable sources to 30% of total energy, while recycling 35% of water and maintaining zero waste to landfill at operation sites every year.

Net zero deforestation is another commitment, for which BAT Vietnam recently joined hands with Gaia Nature Conservation Centre to implement afforestation projects covering more than 120 hectares in Dong Nai and Ca Mau from 2022 to 2025. The project officially kicked off in August 2022.

For social and governance targets, BAT Vietnam is committed to enabling more prosperous livelihoods for all farmers in its tobacco supply chain via increasing the average productivity year-o-year, increasing the proportion of women in management roles to 45% by 2025 and ensuring 100% adherence to BAT’s SoBC.

On this journey, BAT Vietnam’s sustainability goals are well aligned with the agenda of the group and at the same time joins hands with the business community to contribute to Vietnam’s national agenda for sustainable development to 2030 according to the 17 Sustainable Development Goals by the U.N.