The document provides a strategic vision with clear standards and goals and an overview of BAT Vietnam’s sustainability activities and performance in 2021.

BAT Vietnam releases report on environment, society, governance.

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The highlight is the implementation in each area of ESG, which is becoming increasingly popular worldwide and is part of the United Nations action plans.

With regard to the environment – the E in ESG -- the company has undertaken a wide range of initiatives related to climate change, water management, zero waste to landfill at operation sites, biodiversity, and afforestation.

Its significant measures include a 100% switch to LED lamps at both operations sites, reducing the average annual energy usage by 12%, equivalent to 302 tons of CO2 emissions, and achieving zero waste to landfill at both sites.

Besides, over 99% of its waste was recycled while 100% of wood used for tobacco curing by farmers in its supply chain is from sustainable sources.

As for the S in ESG, the company is committed to enhancing the livelihoods of farmers and respecting the rights of people across its entire supply chain and operations.

Aiming for zero accidents company-wide and ensuring a safe working environment for employees are the top priorities of BAT Vietnam.

2021 marked a number of milestones such as 12 years without a single accident at BAT Vietnam, successfully implementing the ‘stay-at-work’ model during the prolonged Covid-19 outbreak, and sustaining training and development with 21 promotions and over 5,000 learning hours across the organization despite 2021 being a challenging year for the world of business and Vietnam’s economy.

During the prolonged Covid-19, BAT successfully operated the “stay-at-work” model.

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With respect to governance, BAT ensures 100% adherence to its Standards of Business Conduct and Youth Access Prevention guidelines.

Last year BAT Vietnam was named a winner at the Asia Responsible Enterprise Awards in the ‘Corporate Governance’ category for its Delivery with Integrity programme.

2021 was also the third year when BAT was listed among the Top 100 Sustainable Enterprises in Vietnam by VCCI – VBCSD.

Mr Daniel Hsu, BAT Vietnam’s general manager, said BAT is transforming its business across the board with its leading purpose being to build A Better Tomorrow^TM by reducing the health impacts of its business.

“Through the initiatives that have been undertaken within BAT Vietnam, we continue to reduce environmental impacts and promote a shift towards a circular economy. Water and energy efficiency programmes were some of our highlights of 2021, indicating a promising future for our sustainability goals and ambitions.”

In its ESG Report, BAT also announced its environmental targets for 2025 including increasing the use of renewables to 30% of total energy, recycling 35% of water and maintaining zero waste to landfill at operation sites.

Net zero deforestation is another commitment, for which BAT Vietnam recently joined hands with the Gaia Nature Conservation Centre for afforestation projects covering more than 120 hectares in Dong Nai and Ca Mau between 2022 and 2025.

The project officially began in August 2022.

For its social and governance targets, the company is committed to enabling more prosperous livelihoods for all farmers in its tobacco supply chain by increasing the average productivity every year, maintaining a zero accident rate, increasing the proportion of women in management roles to 45% by 2025 and ensuring 100% adherence to its Standards of Business Conduct.

On this journey, BAT Vietnam’s sustainability goals are well aligned with the agenda of the parent company and at the same time it is joining hands with the business community to contribute to Vietnam’s National Agenda for Sustainable Development 2030 based on the UN’s 17 Sustainable Development Goals. These are backed by clearand measurable goals and targets for each pillar of ESG.