Recently, BAT became the tobacco industry’s pioneer in Environmental, Social and Governance (ESG) reporting and marking the celebration of a 27-year journey in Vietnam.

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

ESG Report 2021

The ESG Report 2021 of BAT Vietnam.

The highlight of BAT Vietnam’s report is the excellent implementation in each area of Environment, Social and Governance – known as ESG which is becoming increasingly popular worldwide and is part of the United Nations action plans.

Regarding Environment, the company has undertaken a wide range of initiatives including 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 (vs 2018) and achieving zero waste to landfill at both sites. In addition, over 99% of our waste was recycled while 100% of wood used for tobacco curing by farmers in our supply chain is from sustainable sources.

LED lamps

100% switch to LED lamps at both operations sites is one of BAT Vietnam's activities to reduce environmental impact.

Regarding Social, BAT Vietnam is committed to enhancing the livelihoods of all farmers across our entire supply chain. 2021 marked a number of milestones such as 12 years accident-free at BAT Vietnam, successfully operating the “stay-at-work” model during prolonged Covid-19, 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 businesses and Vietnam’s economy.

Farmers in BAT Vietnam’s supply chain

All farmers in BAT Vietnam’s supply chain are committed to improving their livelihoods.

Regarding Governance, BAT Vietnam ensures 100% adherence to Standards of Business Conduct (SoBC) and Youth Access Prevention (YAP) guidelines. Especially, in 2021, BAT Vietnam was named as a winner at Asia Responsible Enterprise Awards in the Corporate Governance category for “Delivery with Integrity” program. 2021 was also the third year that BAT was listed in the Top 100 Sustainable Businesses in Vietnam organized by VCCI – VBCSD.

In the ESG Report 2021, BAT Vietnam also announced environmental targets by 2025. The goal is to increase the use of renewable sources to 30% of total energy, while recycling 35% of water and maintaining zero waste to landfill at operation sites every year. Net zero deforestation is another commitment, for which BAT Vietnam recently joined hand with Gaia Nature Conservation Centre to implement afforestation projects covering more than 120 hectares in Dong Nai and Ca Mau from 2022 to 2025. The project officially kicked off in August 2022.

For Social and Governance targets, BAT Vietnam is committed to enabling more prosperous livelihoods for all farmers in our tobacco supply chain via increasing the average productivity year on year, maintaining zero accidents company-wide, increasing the proportion of women in management roles to 45% by 2025 and ensuring 100% adherence to BAT’s Standards of Business Conduct (SoBC).

On this journey, BAT Vietnam’s sustainability goals are well aligned with the agenda of the Group and at the same time joining hand with the business community to contribute to Vietnam’s National Agenda for Sustainable Development 2030 according to the 17 Sustainable Development Goals (SDG) by United Nations. These are backed by clear and measurable goals and targets for each pillar of ESG.

For further information, please read BAT Vietnam’s ESG Report 2021 here.