Annual Report 2009 - British American Tobacco

Group energy use
GIGAJOULES PER MILLION CIGARETTES EQUIVALENT
04 14.44
05 12.60
06 12.21
07 11.82
08 12.08
09 11.12
We define Group energy use as the energy used by
the Group in its own operations plus energy used
in Group business travel and freight.
We do not include energy used to produce and
deliver purchased energy, which in effect tracks
performance of energy suppliers.
Carbon dioxide (CO 2)
TONNES CO 2 PER MILLION CIGARETTES EQUIVALENT
baseline
00
04 1.25
05 0.91
06 0.87
07 0.88
08 0.94
09 0.86
Group CO 2 is calculated from the energy used in
Group operations, from Group business travel and
freight and from Group incineration and landfill.
Water use
CUBIC METRES PER MILLION CIGARETTES EQUIVALENT
04 6.61*
05 5.58
06 5.18
07 4.85
08 4.73
09 4.41
1.38
*For comparison purposes, the 2004 figure
excludes data from Peru relating to the use of
irrigation water by farms owned by a company we
acquired in late 2003. It is unusual for the Group
to own farms. The farms have now been sold.
RESPONSIBILITY CONTINUED
Our approach to sustainability
We established our vision for sustainability
in 2007 and in 2008 we addressed key
challenges it raised. To make significant
progress against our sustainability agenda,
we need robust, commercial sustainability
plans. In 2009, we focused on embedding
sustainability into our business, to ensure that
our people understand that sustainability
benefits, rather than compromises,
commercial success.
These activities are covered in detail in our
Sustainability Report 2009, which is due for
publication in early May 2010 and will be
available online at www.bat.com/sustainability.
Dow Jones Sustainability Indexes (DJSI)
In 2009, we were, for the eighth year running,
the only tobacco company included in the
Dow Jones Sustainability World Index. This
index tracks the economic, environmental
and social performance of leading companies
based on how well they integrate sustainability
into their businesses.
We use the DJSI as a primary business measure
and set ourselves a target each year of recording
a higher score than the sector average in a
minimum of 14 out of 18 categories.
Our overall score in 2009 decreased from
84 per cent in 2008 to 81 per cent, while the
sector average increased from 69 per cent to
71 per cent. We achieved a score of 100 per cent
in three categories (Environmental reporting,
Fuels for tobacco curing and Responsible
marketing); a higher score than the sector
average in 16 (exceeding our business measure
target); and the top score in 10.
Harm reduction
Our approach to tobacco harm reduction
is to pursue the research, development and
test-marketing of innovative tobacco products,
including smokeless, that will be acceptable to
consumers and be recognised by the scientific
and public health communities and regulators
as posing reduced risks to health. This is an
important element in our business and we
have increased our expenditure and greatly
developed our capabilities over recent years
to meet this challenge.
We aim to reduce the harm caused by
smoking and we continue to make progress
in our scientific research in this area. In 2009,
we published more scientific papers than in
any year to date and we are starting to see
results from our clinical studies. Engagement
with stakeholders on scientific issues is also
improving and our External Scientific Panel,
a group of independent scientists set up in
2008, continues to help inform our research
programmes.
Research & Development (R&D)
Group R&D provides scientific support for
our current range of products and seeks to
develop innovative technologies and new
products. It also provides guidance on the
use of ingredients in our products to help our
companies meet Group standards and comply
with national legislative requirements.
Environmental performance
We recognise that we need to maintain
a clear strategic approach to managing our
environmental footprint. It not only makes
good economic and environmental sense
for us to use raw materials, energy and water
in a sustainable manner, but it is also our
responsibility to do so. Our key performance
measures are energy use, water use, waste
to landfill and recycling.
Responsibility for our Environment, Health &
Safety policy lies with the Management Board
and it applies to our own activities and to our
approach to managing our supply chain. Our
Environment, Health & Safety management is
based on international standards, including
ISO 14001.
24 British American Tobacco Annual Report 2009 Directors’ report: Business review