"Imperial has many attractive qualities, including its people, brands and market positions."

Stefan Bomhard

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“The Board firmly believes Imperial has great potential and we will continue to make the improvements required to realise the value creation opportunities that lie ahead.”

Thérèse Esperdy

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A CELEBRATION OF OUR PEOPLE IN 2020

32,500 employees globally continued working with a
relentless focus on health, safety and wellbeing.
38 factories with the vast majority
operating throughout the crisis.
30,896 hours of learning completed by employees
via our global learning platform.

ENGAGING STAKEHOLDERS

Building and maintaining trust with our stakeholders underpins the success and reputation of Imperial Brands. Through stakeholder collaboration we aim to develop the Company, minimise our environmental impact, make a positive social contribution and uphold high standards of governance.

MANAGING OUR ESG RESPONSIBILITIES

Our sustainability strategy is integral to our long-term success and frames the way we manage our environmental, social and governance (ESG) responsibilities. Our strategy is aligned with the UN Sustainable Development Goals, which aim to have a transformational impact on the world by 2030 by addressing global challenges such as poverty, availability of clean water, inequality and climate change.

Diagram
  • Next Generation Products

    Developing alternative products that are potentially less harmful to health.

  • Sustainable Tobacco Supply

    Maintaining sustainable agricultural practices to ensure a consistent, quality supply of tobacco.

  • Behaving Responsibly

    Behaving responsibly at all times and providing a safe and rewarding work environment for employees.

  • Overseen by the Board and ESG Committee

    The Board has oversight of our ESG responsibilities, supported by a cross-functional ESG Steering Committee, chaired by the Chair of Imperial Brands. The Committee meets formally during the year and encourages members to stay in touch with each other on a day-to-day basis to ensure there is regular ongoing dialogue about ESG matters.


OUR PRIORITY ESG ISSUES

CONSUMER HEALTH

We understand society’s concerns about the health risks of smoking and recognise the important role we can play in helping to reduce the harm caused by combustible tobacco products.

Our commitment

We are committed to strengthening our NGP performance and in doing so, making a more meaningful contribution to harm reduction by offering adult smokers a range of potentially less harmful products.

How we are achieving this

Building consumer and regulatory confidence in NGP by scientifically substantiating their harm reduction potential relative to conventional cigarettes.

Seeking to underpin our NGP operations with leading-edge science, innovation and high quality standards.

Our progress in 2020

Completed pre-clinical studies that show NGPs myblu and Pulze aerosols contain fewer and substantially lower levels of toxicants, and reduced in vitro toxicity, compared to cigarette smoke.

Our clinical studies show substantial reductions in exposure to harmful chemicals for smokers that switch to myblu.

UN SDGs

We are committed to tobacco harm reduction.

CLIMATE AND ENERGY

Given our global reach and influence, we have a duty to protect the natural environment and actively work to minimise our environmental impacts.

Our commitment

We are committed to reducing our climate and energy impacts across our value chain, from crop production to manufacturing and distribution.

How we are achieving this

Managing our climate-related risks and opportunities across our business and value chain.

Reducing our carbon footprint across our value chain.

Better understanding the carbon footprint of our NGP.

Our progress in 2020

We have developed site-based opportunities to ensure we deliver against our 2030 science-based carbon reduction targets.

We have seen a 12 per cent decrease in total Scope 1 and 2 emissions from our 2017 baseline year and our target is to reduce by 25 per cent by 2030.

We conducted a life cycle analysis of myblu which provided comprehensive information about the product’s environmental impact.

UN SDGs

We are taking action to combat climate change and its impacts.

FARMER LIVELIHOODS AND WELFARE

Farmer livelihoods and welfare is of paramount importance to sustainable tobacco production and we continue to engage with our suppliers to support farming communities.

Our commitment

We are committed to supporting farmers to diversify income streams in order to enhance farming community livelihoods and welfare.

How we are achieving this

Strengthening the industry-wide Sustainable Tobacco Programme (STP) to measure positive impact.

Working together with our tobacco leaf suppliers through our Leaf Partnerships to allocate funds to continually improve access to basic needs and diversification of income.

Our progress in 2020

We are members of the STP Steering Committee and are contributing to the development of STP.

We supported farmers in Africa and Asia in diversifying their income from growing complementary crops to tobacco, such as fruit trees, maize, groundnuts and vegetables. We funded projects in Africa, Asia and South America enhancing access to basic needs to over 12,000 people. Case studies are on our website.

UN SDGs

We are committed to decent work for all and sustainable economic growth.

HUMAN RIGHTS – MODERN SLAVERY

As an international business we recognise the importance, influence and duty we have in promoting respect for human rights across our business and supply chains.

Our commitment

We are committed to raising awareness and improving processes for identifying modern slavery in our business and supply chains.

How we are achieving this

Better understanding modern slavery risk across our business and supply chains.

Educating the business on the risk of modern slavery.

Introducing a robust human rights framework, which includes how we address modern slavery and the issue of child labour in tobacco farming.

Our progress in 2020

We started to implement the recommendations from the Slave Free Alliance (SFA) gap analysis conducted in 2019, although our work was hampered by the impact of COVID-19. Details are available on our website. SFA conducted a workshop for our global procurement team. Our Modern Slavery e-learning module is now available to employees in 12 languages. Specialist training has been provided for key functional representatives.

UN SDGs

We are committed to decent work for all and sustainable economic growth.

WASTE

As part of our duty to protect the natural environment, we seek to minimise waste and waste sent to landfill.

Our commitment

We are committed to minimising the waste associated with our products, packaging and production processes.

How we are achieving this

Supporting manufacturing sites to achieve the 2030 targets set for waste.

Innovating waste solutions for product disposal.

Monitoring and responding to EU legislative changes, including the Single-Use Plastics Directive.

Our progress in 2020

Developed the myblu recycling playbook to support markets and our product design teams in understanding how to implement recycling and take-back schemes for current myblu devices, pods and packaging.

We continue to explore opportunities for improving material recycling in our cigarette filters and packaging.

UN SDGs

Ensuring sustainable consumption and production patterns.

OPERATING REVIEW

Through our three divisions we manage performance and prioritise the allocation of resources and investment.

Download Operating Review

FINANCIAL REVIEW

We will further optimise our cost base and capital discipline to prioritise investment more effectively and deliver growing returns.

Download Financial Review

2020 Overview

TOBACCO & NGP NET REVENUE*

+0.8% £8.0bn

ASSET BRAND NET REVENUE*

+1.0% £5.2bn

ADJUSTED EARNINGS PER SHARE*

-5.6% 254.4p

REPORTED EARNINGS PER SHARE

+49.3% 158.3p

DIVIDEND PER SHARE**

-33.3% 137.7p

* Movement on a constant currency basis

**Rebased by a third to accelerate debt repayment

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