“This year BAT has presented the company’s first annual combined Business and ESG Report, announcing outstanding results in achieving ambitious environmental, social, and governance (ESG) targets. Through this report, new or updated objectives were announced, such as achieving 30 percent renewable energy target by 2025 two years early, resulting in revised target of 50 percent renewable energy by 2030; increasing the initial target of 15 percent reduction in waste from BAT’s operations by 2025, to 25 percent; expanding the scope of BAT’s 100 percent reusable, recyclable or compostable packaging commitment, beyond just plastic, by 2025 and setting a new target of zero conversion of natural ecosystems in its Tobacco Supply Chain by 2025,” Ileana Dumitru, Legal and External Affairs Director for the Southeastern Europe Area, BAT told Sustainability Today.
“In Romania, our flagship sustainability project is Choose Responsibly for a Clean City Campaign, launched by BAT in 2019 to raise awareness of the responsibility of individual behavior and the importance of waste management, encouraging smokers to use the special street ashtrays for responsible disposal of cigarette stubs.”
What projects is your company implementing to achieve sustainability goals?
As a leading multinational company, sustainability is at the heart of our transformation journey as we build A Better Tomorrow™ by reducing the health impact of our business. At the same time, we remain committed to reaching excellence in environment protection, delivering a positive social impact and ensuring robust corporate governance across the Group.
To deliver a positive social impact in our communities, we develop and engage in various programs across the markets where we operate, addressing environment awareness and responsible behavior for clean cities and responsible use of resources. We are also committed to a responsible commercial behavior to prevent youth access to tobacco and nicotine products, and we are a long-term sustainable partner of the authorities in their fight against illicit trade. We also support large-scale cultural programs, arts, and music festivals, and the development of an active and creative artistic community.
We are happy to see that BAT’s efforts and commitment to high sustainability standards are recognized by prestigious independent institutions. Among them are BAT`s inclusion in the Dow Jones Sustainability Index for 21 consecutive years (BAT is the only tobacco company listed in the prestigious World Index in 2022, being ranked among the top 3 percent of evaluated companies), an MSCI BBB rating and the CDP A List level.
The company has also been included for a third consecutive year in the FT Europe’s Climate Leaders’ listing of companies making the most progress in tackling their carbon emissions. BAT was placed in the top 3 percent of over 4,000 companies evaluated. These achievements recognize BAT’s commitment to building A Better Tomorrow™, by reducing the health impact of its business and putting sustainability front and center.
How do we translate sustainability goals into efficient ESG initiatives? How are you measuring sustainability progress?
This year BAT has presented the company’s first annual combined Business and ESG Report, announcing outstanding results in achieving ambitious environmental, social, and governance (ESG) targets. Through this report, new or updated objectives were announced, such as achieving 30 percent renewable energy target by 2025 two years early, resulting in revised target of 50 percent renewable energy by 2030; increasing the initial target of 15 percent reduction in waste from BAT’s operations by 2025, to 25 percent; expanding the scope of BAT’s 100 percent reusable, recyclable or compostable packaging commitment, beyond just plastic, by 2025 and setting a new target of zero conversion of natural ecosystems in its Tobacco Supply Chain by 2025.
In 2020, BAT announced ambitious targets for reducing the health impact of its business, reaching environmental protection excellency, generating a positive social impact, and its engagement in correct and responsible commercial practices.
For example, in our first Combined Annual and ESG Report, BAT announced important results in the management of the water used in its production processes in 2022, BAT`s report shows that: 24 own operation sites are certified by the Alliance for Water Stewardship (AWS), including the BAT factory in Ploiesti, Romania, which obtained the AWS certification last year. This is the second largest BAT factory in Europe and the fifth in the group, with a total investment in its development of over €500 million so far and currently employing over 1,000 people.
Efficient water management is vital for the responsible use of resources, both at the individual and organizational levels. BAT is engaged in building A Better Tomorrow™ for consumers and for society, both by fulfilling our business sustainability objectives, towards which we are taking decisive steps, as well as through campaigns related to the responsibility of our individual choices.
What sustainable-related projects has your company run in 2023 in Romania and with what objectives and impact?
In Romania, our flagship sustainability project is Choose Responsibly for a Clean City Campaign, launched by BAT in 2019 to raise awareness of the responsibility of individual behavior and the importance of waste management, encouraging smokers to use the special street ashtrays for responsible disposal of cigarette stubs. The campaign was gradually extended and today we develop complex awareness campaigns for Romania`s cities and communities, such as this year`s IRES study, “Romanians` Sustainability Behaviors”, conducted as part of the BAT Romania Choose Responsibly for a Clean City Campaign. The study reflects how Romanians perceive A Better Tomorrow™, highlighting the societal advance in terms of sustainability awareness and the expectations of Romanians regarding good practice examples and the involvement of private companies.
In January 2021, we launched in Romania a large–scale take-back scheme for the old versions of glo, our tobacco heating device. The campaign has been running nationwide every year since its launch, in over 250 collection points and to date, with over 17,000 devices collected for recycling. In 2023, the campaign has been developed to include a large-scale afforestation component, with a tree that will be planted annually for every device returned for recycling.
Environment Day is also an important opportunity to raise awareness of the environmental challenges and things we can all do to contribute to its protection. This year, BAT Romania developed an awareness campaign on the importance of small gestures with significant impact on the environment and our communities, based on a simple insight: Romanians have always known how to reuse, reduce waste or transform used packaging into useful items. World Environment Day was a great opportunity to remember the good habits of recycling and reuse. The circular economy is a key principle of the BAT approach for A Better Tomorrow™, reducing the amount of plastic and waste, recycling and reusing materials, and developing products based on sustainability principles.
What sustainability challenges does your organization face and what are your next – step sustainability objectives?
BAT is on the journey to build A Better Tomorrow™ through a multi-category portfolio of non-combustible products, tailored to meet the preferences of adult consumers. We are becoming a business that defines itself not by the product it sells, but the consumer needs that it meets. And Romania is very important to us in terms of business development and innovation, so we will continue to invest in our business and our people here.
With 24 million consumers of our non-combustible products in the first half of 2023, our goal is to have 50 million consumers of our non-combustible products by 2030.
We also strive to add value to society by taking a long-term, collaborative approach to protecting the environment, enhancing farmer livelihoods, respecting human rights and supporting local communities.
About BAT in Romania
BAT, the largest company on the Romanian tobacco and nicotine market, has generated an impact of more than 125 billion euros in the economy in the first 25 years of its presence on the local market. Of this amount, around €24 billion is direct contribution to the state budget in the form of taxes and excise duties.
BAT is one of the largest contributors to Romania’s state budget with a total contribution of 10.5 billion lei (€2,1 billion) in excise and taxes to the state budget in 2022.
BAT employs over 3,000 people and creates another 30,000 jobs through its supply chain.
In 2019, BAT launched in Romania the Choose Responsibly for a Clean City Campaign, aimed at raising awareness on responsible waste management and the responsible use of resources, with the aim to raise awareness on the simple gestures that each of us can do to protect the environment and the community.
