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ÌÇÐÄ̽»¨has conducted Materiality Assessments^ since 2007. In 2022, we undertook our first Double Materiality Assessment (DMA) and in 2023, expanded our DMA in line with the latest available European Sustainability Reporting Standards (ESRS) at the time. This consisted of a nested approach, which articulated three dimensions of impact:

1. Outward impact:
   Our impact on environment, society and governance-related topics;
2. Inward impact:
   The impact of these topics on the Group; and
3. Financial materiality:
   The understanding of risks and opportunities posed byÌýthese topics on the Group's financial position.

2023 Double Materiality AssessmentÌý

The results of our 2023 assessment identified that 11Ìýtopics are material^ to BAT. These are:

• Tobacco Harm Reduction
• Climate Change
• Circular Economy
• Human Rights
• Biodiversity and Ecosystems
• Water
• Employees, Diversity and Culture
• Farmer Livelihoods and Community
• Supplier Engagement
• Marketing and Communications
• Ethics and Integrity

The topics for the basis of our current reporting.

2024 Double Materiality Assessment

In 2024, we enhanced our DMA, to prepare for EU Corporate Sustainability Reporting Directive (CSRD) reporting in 2026, in relation to year-end 2025.

As part of the process, we mapped our value chains components, including:

• Own Operations;
• Upstream (Leaf and procurement of goods and services); and
• Downstream (Warehousing and Trade Marketing andÌýDistribution).

These are the basis for identifying and assessing the business impacts, risks and opportunities (IROs) connected with our products, services and business relationships.

A scoring framework was applied to determine the IROs' materiality. These were validated with internal and external stakeholders.

Our material IROs are the basis of the information we intend to report on in our first CSRD Report. We are in the process of identifying the relevant disclosure requirements and data points under CSRD and will continue to work towards compliance.