Annual report 2010 - Imperial Tobacco Group

Corporate Responsibility continuedStrategy Performance Governance FinancialsClimate ChangeWe are committed to further reducing our carbonfootprint with a commercially focused approach to carbonmanagement. The focus of our climate change strategy isto reduce our impacts by achieving a balanced approachto carbon management through energy conservationlower carbon technologies, renewable energy and carbonoffsetting. Further details on our approach is available onour website www.imperial-tobacco.com/cr.Based on the results of the energy audits, potential costsavings and additional energy saving opportunities, we havedeveloped a carbon saving target 1 of 20 per cent by 2020in line with the current EU target of 20 per cent.We continued to evaluate renewable energy opportunitieswithin our manufacturing operation, however our main focusis on overall efficiency improvements throughout the Group.Renewable energy options are considered in all our energystudies and where factories are being upgraded or newbuildings are in development.In the UK, we made preparations to participate within themandatory Carbon Reduction Commitment Energy EfficiencyScheme, which came into effect in April 2010.Carbon Disclosure Project (CDP) and Supply ChainLeadership ParticipationDeveloping stronger relationships with our suppliers and thesharing of good environmental practices remains a priorityfor us. Benefits include optimising our costs and improvingour security in our supply chain.We took part in the CDP 2010 information request, andreceived a score of 63 per cent (2009: 62 per cent). The fullCDP and our submission is available at www.cdproject.netWe have continued our participation in the CDP SupplyChain Leadership Programme and a number of our keysuppliers whom we invited to take part agreed to participate.We are working with our suppliers to further encourageparticipation which now covers approximately 50 per centof our non-tobacco material purchases by value and ourmajor global tobacco leaf suppliers.Future FoundationsWe constantly review and manage our governanceprocesses to ensure our long term sustainability. These arefundamental for responsible business practice.Our key CR areas of focus are governance, business integrityand risk management, anti-illicit trade activities, regulatoryengagement, and our other engagement activities across oursupply chain and within the communities in which we operate.Adult choice and anti-illicit trade activities underpin legitimatesales which are a key driver in strengthening our long termbusiness sustainability.We seek proactive engagement with governments and otherregulatory bodies and encourage reasonable, proportionateand evidence based regulation. We support consumers intheir choice to enjoy tobacco products without discrimination,and challenge disproportionate and unnecessary regulationthat undermines the principles of adult choice and thefreedom of competition.We focus on continuing to engage with and influence ourpartners to improve social and environmental standards inthe supply chain. Supporting the communities in which weoperate is important to us and enables us to address issuesthat directly and indirectly affect our supply chain.Governance and Business IntegrityIn our governance report on pages 54 to 72 of this report,we explain how in practice we apply the principles ofgood governance advocated by the Combined Codeon Corporate Governance.During the year we established a Commercial Integrity teamwhich has responsibility for reviewing and managing ouranti-illicit trade strategies and the protection of our brands.Commercial Integrity is also responsible for promoting goodcorporate and individual conduct across the Group andfacilitating our Corporate Responsibility approach.In 2010, we reviewed and updated our existing Code ofConduct and began a comprehensive training programme1 This target will use 2009 as a base year.48