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Notes to editors

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Vuse’s carbon neutrality was certified by BAT’s sustainability partner, Vertis, in May 2021 as a world-first global vape brand achievement and a significant contribution to BAT’s ambitious climate targets, including carbon neutrality across its own operations by 2030. The achievement builds on BAT’s strong ESG foundations which are deeply embedded in its business, its people and its culture. In 2020 alone, ����̽��achieved a 30.9% reduction in emissions from its operations, contributing to a 37.4% reduction against a 2017 baseline. In March 2021, ����̽��announced a further ambition to be carbon neutral across its value chain by 2050, representing around 90% of its total carbon footprint.

Vuse’s carbon neutrality status, and ambition to increase sea freight, is part of a bigger ambition to become an environmentally sustainable vape brand with initiatives including:

• ��A global device and pod collection scheme��- through BAT’s Drop the Pod campaign, approximately 200k pods were collected since the start of the pilot in 2020
• ��Cutting single use plastics from packaging��- Cut the Wrap has saved 100 tonnes of plastic, or the equivalent of four million plastic bottles in 2020³

����̽��has reduced its carbon usage by 30% in the last year⁴. It has been reducing its carbon footprint by:

• ��Improving the��energy efficiency��of factories by upgrading to more efficient and lower-impact equipment
• ��Increasing the��use of renewable energy��through renewable energy purchases and on-site energy generation.�� On-site solar energy is used in factories in eight countries and two new installations are planned this year.
• ��Driving��external certification for carbon neutrality��- three of BAT’s major sites are going through external certification for carbon neutrality.

����̽��is committed to its purpose of building A Better Tomorrow™ by reducing the health impact of its business through providing a range of enjoyable and less risky products*†.

BAT’s sustainability efforts and commitment have received notable independent recognition. These include inclusion in the Dow Jones Sustainability Indices for 19 consecutive years (the only tobacco company to be listed in the prestigious World Index in 2020), a MSCI rating of BBB and CDP A List status for climate change.

Vuse’s carbon neutrality is part of BAT’s overall carbon reduction ambitions and has been independently validated by Vertis based on product Life Cycle Assessment data provided by an independent third party. Today’s voyage down the Thames was carbon neutral.

^1��Based on ePod, ePen, eTank mini, Alto devices and consumables internal sales forecast (calculated March 2021) for 12 months starting from April 2021
²��Vuse aims to have 80% of international shipments transported by sea by the end of 2022.
³��Plastic saving per annum was calculated from 2020 global sales volumes and the plastic bottles comparison was based on a 22.9g bottle weight, representative weight of 500ml commercially available soft drink bottles (May 2020). Results have been verified by an independent body.
⁴��BAT_ESG_Report_2020.pdf page 125��
*Any reference to ‘reduced-risk products’ is based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.
†��Our products as sold in the US, including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to Food and Drug Administration (FDA) regulation and no reduced-risk claims will be made as to these products without FDA clearance.