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Beyond tobacco leaf, we source product materials such as paper and filters for cigarettes.

For our expanding New Category products, the supply chain includes electronic components and liquids for our Vapour consumables.Ìý

Triage Process

All in-scope suppliers are evaluated through an independent risk assessmentÌýplatform, covering topics that are identified as relevant for the Group, such as working conditions and forced labour.

The outcome of the risk assessment, determines the type of the audit assigned, which can be either a third-party on-site audit or a third-party verified self-assessment.

Breakdown of audits

Since 2022, 540 in-scope suppliers in 59 countries have undergone at least one labour audit:

• Tier 1 product materials suppliers: 388
• Lower-tier product materials suppliers:Ìý48; and
• Indirect suppliers: 104

In 2024, 321 independent labour audits were carried out. 156 were first time audits and 165 were re-audits of existing suppliers due to previous audit performance.

Managing audit findings

If an in-scope supplier is identified to fall below our minimum standards, we support the supplier to develop anÌý action plan and monitor its progress. If a supplier does not show necessary improvements, we terminate the contract, as appropriate.

Through this process, 23 suppliers made sufficient improvements to meet our standards and 10 were removed from our supply chain in 2024.

Training and capability building

In 2024, procurement relationships managers across all regions were trained on leveraging our audit partners to progress the Group’s social agenda.

The training provided guidance on how to monitor supplier performance and manage supplier relationships, based on the findings of the labour audit. In addition, over the course of the year, we shared best practices and agreed common commitments with our suppliers at the suppliers’ summit.

Our in-scope suppliers also received a step by-step guide on our audit processes and standards.

Responsible mineral sourcing

Our electronics supply chain includes multiple layers of suppliers, which create additional challenges for managing human rights risks.

Our SCoC applies to all our suppliers and outlines the actions we expect them to take in relation to responsible mineral sourcing.

In line with the OECD guidelines, we work with our suppliers for them to exercise the appropriate due diligence required for identifying the origin of 'conflict minerals'.

Being supporter members of the Responsible Business Alliance (RBA) provides access to cross-industry initiatives, such as the Responsible Minerals Initiative, through which we have visibility of smelters’ audits.

Findings are reported annually in our Conflict Minerals Report.

Such data helps us improve the traceability of our minerals supply chain in order to identify areas of risk.

Find out more:ÌýRead more aboutÌýour policies and procedures

Managing Supply Chain Risk

Sustainability is integrated into our supply chain management strategies through our supplier programmes and risk assessments, which include environmental criteria, as well as other social issues, such as human rights and labour practices, and governance issues, such as suppliers’ policies, procedures and management systems and exposure to risks like financial crime, and illicit trade through the Coupa platform.

Supply Chain Contracts

Any contract with a value of over £150,000 requires suppliers to be evaluated against ESG criteria which has the weighting of at least 10% of the total evaluation points. Examples of the types of information we request include:

• ESG policies
  • Climate Change mitigation targets and reporting maturity
  • Waste to landfill performance and reduction plans
  • Policies and procedures to ensure their activities meet minimum social standards e.g. labour standards