Transformation at BAT means reducing the health impact of our business, whilst focusing on our environmental, social and governance (ESG) priorities.

Crucially, our approach to sustainability applies not only to our own business operations, but also to our wider supply chain.

We rely on a complex but critical supply chain, and we need it to be fit for the future. That’s why we’re using our influence to improve sustainability from crop, all the way to the consumer.

The BAT Group works with a vast network of Suppliers worldwide, from smallholder farmers and international leaf Suppliers to Suppliers of materials like paper and filters for cigarettes. For our New Category products, we have a growing supply chain in consumer electronics and e-liquids. We also have a vast number of Suppliers of indirect goods and services that are not related to our products, such as IT services and facilities management.

This Code has been updated to reflect our enhanced focus on ESG, and the ever-changing external landscape in which we operate.

At the same time, we remain committed to delivering a positive social impact and ensuring robust corporate governance across the Group.

In 2023, we invited over 600 Suppliers to take part in the CDP Supply Chain programme. Such collaboration enables us to strengthen our Supplier engagement, to drive environmental progress and further build resilience.

We know that many global ESG focus areas, such as tackling climate change, eliminating waste and progressing towards a circular economy, protecting biodiversity and forests, and water stewardship, as well as delivering a positive social impact, cannot be addressed in isolation. By working with our Suppliers, contracted farmers, and other supply chain stakeholders on such initiatives, we can develop solutions to bring about lasting change.

A key part of our relationship with Suppliers is having the confidence to Speak Up if something feels wrong. BAT takes allegations of breach of this Code, and our Standards of Business Conduct, very seriously. So please Speak Up via the various channels mentioned in our Code if you know of, or suspect, wrongdoing. I offer my personal assurance that all concerns raised will be treated in strict confidence. You will not face reprisals for speaking up, even if you are unsure.

I believe that by working closely with our Suppliers we can continue to raise standards, enhance sustainable practices, and create shared value.

Zafar Khan
Director of Operations
January 2024