SUSTAINABILITY STRATEGY

SUSTAINABILITY FRAMEWORK
SUSTAINABILITY FRAMEWORK
SUSTAINABILITY FRAMEWORK
SUSTAINABILITY FRAMEWORK
SUSTAINABILITY FRAMEWORK
SUSTAINABILITY FRAMEWORK

Our purpose is to create something better for the world’s smokers with a portfolio of high-quality next generation and tobacco products. In doing so we are transforming our business and strengthening our sustainability and value creation.

Our sustainability strategy is integral to the long-term success of our business and underpins our drive to create shared value for our stakeholders. During the year we reviewed and refocused our sustainability strategy to more closely align it with our Group strategy and the UN Sustainable Development Goals. These goals aim to have a transformational impact on the world by 2030 and we are currently developing long-term targets to enhance our reporting against them.

The issues covered in our sustainability strategy have been identified through an independent materiality assessment and reflect the changing nature of our business and stakeholder priorities.

We identified the key areas that have the greatest significance to us and our stakeholders as: 

  • a sustainable tobacco supply: maintaining sustainable agricultural practices to ensure a consistent, quality supply of tobacco
  • reduced harm Next Generation Products (NGP): developing alternative products that are less harmful to health
  • responsible operations and people: behaving responsibly at all times and providing a safe and rewarding work environment for employees

The three pillars of our strategy, designed to enable growth and create value, define the approach we take to addressing our environmental, social and governance issues. We remain committed to reducing our environmental impact, collaborating with stakeholders to make a positive social impact and maintaining high standards of governance.

We identified the key areas that have the greatest significance to us and our stakeholders:

    - a sustainable tobacco supply: maintaining sustainable agricultural practices to ensure a consistent, quality supply of tobacco
    - reduced harm Next Generation Products (NGP): developing alternative products that are less harmful to health
    - responsible operations and people: behaving responsibly at all times and providing a safe and rewarding work environment for employees

The three pillars of our strategy, designed to enable growth and create value, define the approach we take to addressing our environmental, social and governance issues. We remain committed to reducing our environmental impact, collaborating with stakeholders to make a positive social impact and maintaining high standards of governance.

We identified the key areas that have the greatest significance to us and our stakeholders:

    - a sustainable tobacco supply: maintaining sustainable agricultural practices to ensure a consistent, quality supply of tobacco
    - reduced harm Next Generation Products (NGP): developing alternative products that are less harmful to health
    - responsible operations and people: behaving responsibly at all times and providing a safe and rewarding work environment for employees

The three pillars of our strategy, designed to enable growth and create value, define the approach we take to addressing our environmental, social and governance issues. We remain committed to reducing our environmental impact, collaborating with stakeholders to make a positive social impact and maintaining high standards of governance.

OUR 3 STRATEGIC PILLARS

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

Key Issues

We’re partnering with our suppliers to focus support in farming communities.

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We’re working to further the respect for human rights and to address child labour.

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Wood sustainability is important for security of supply and addressing climate change.

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ENVIRONMENTAL 
SOCIAL 

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

Key Issues

We want a culture where everyone takes care of themselves and each other.

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We’re proud of our international and diverse workforce.

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Our business success is driven by our talented people.

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SOCIAL 

Developing alternative products that are less harmful to health.

Key Issues

Creating something better for the world smokers.

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Our products are for adult consumers only.

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Using leading edge science to develop safer alternatives to smoking.

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ENVIRONMENTAL

OUR VALUE CHAIN

We are proud of the contributions we make, not just to wealth creation and employment but the mutual positive benefits we share with our global value chain.

  • Sourcing of tobacco leaf

    Sourcing of NTMs and NGP components

  • Manufacture of Imperial Brands products

  • Storage and distribution of products

  • Sale of our products to retailers in 160 markets

  • Consumer purchase

  • We work with our suppliers to raise standards in the supply chain.

  • 100% of our tobacco suppliers participate in the Sustainable Tobacco Programme.

  • We work with our non-tobacco material (NTM) and NGP suppliers to raise standards in the supply chain.

  • In 2018 we invited our strategic NGP suppliers to participate in the CDP supply chain programme.

  • We manufacture high quality tobacco and non-tobacco products. We expect our contract manufacturers to comply to the same high standards.

  • 91% of our manufacturing sites certified to ISO 14001.

  • We distribute our products around the world using a Track and Trace system to track our tobacco products through our supply chain.

  • Our intelligence resulted in 200 million Illegal cigarettes being seized in FY18.

  • We only market our products to adult consumers.

  • We have stringent marketing standards for our tobacco products and NGPs.

  • We use age verifying technology to ensure adult only purchases of our online and instore e-vapour products.  

     

GOVERNANCE

We place responsibility in the context of good business management. Our PLC Board approves direction and remains informed with business reviews, progress reports and briefings. Our Operating Executive is responsible for implementing Group strategy and monitoring operational performance.

A formal review of our sustainability strategy and performance is held with both the Operating Executive and the PLC Board, annually. Material risks to the business, including strategic, operational, financial, legal and the most pertinent social and environmental risks, are detailed in our Risk Register.

Further information can be found in our Leadership and Governance Table.

 

STAKEHOLDER ENGAGEMENT

Building and maintaining trust with our stakeholders underpins the success and reputation of our business. Stakeholder engagement introduces wider perspectives and enables better decision-making; it is an ongoing process which we primarily use to help us understand key priorities and material issues and how we can do things better.

We conducted independent materiality assessments in 2013 and 2016 which included identifying economic, social and environmental risks based on the geographical location of our operations as well as the locations of our key strategic suppliers. Around 940 locations were assessed, and the output helped to identify our top 20 issues, which supports how we frame our sustainability strategy.

In May 2019 we convened an independently facilitated Stakeholder Panel to appraise our approach and alignment with the UN Sustainable Development Goals as well as support further prioritisation of our environmental, social and governance (ESG) issues. For a summary of the Panel session, see our Stakeholder Panel Statement.

 

MESSAGE FROM OUR CEO

We are transforming our business as we continue to focus on creating something better for the world’s smokers.

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OUR STRATEGY

Our strategy is aligned to our purpose of creating something better for the world’s smokers and focuses on driving results in three key areas. 

GOVERNANCE

Colleagues at business meeting in conference room

High standards of governance are critical to our sustainability.