BAT’s Commitment to Governance and Sustainability for Long-Term Growth

January 8, 2025

In a dynamic world teeming with challenges, British American Tobacco (BAT) has consistently demonstrated a staunch commitment to corporate governance and sustainability, recognizing these areas as pillars for long-term growth and resilience. Integrating strong governance frameworks, transparent reporting, and a keen focus on Environmental, Social, and Governance (ESG) matters, BAT aims to navigate global economic fluctuations and environmental challenges. In 2023, BAT achieved a significant milestone where all employees affirmed adherence to its Standards of Business Conduct, underscoring the company’s dedication to ethical practices and transparency. This rigorous adherence is bolstered by mandatory training, assessments, and compliance sign-offs, ensuring every employee is on board with the company’s core principles.

BAT’s strategy towards corporate governance isn’t merely a set of theoretical ideals but a practical framework designed to address both current and future challenges. This was particularly evident in the company’s robust approach to sustainably managing risks and opportunities presented by global issues such as climate change and biodiversity loss. By embedding sustainability into its strategic mission of delivering A Better Tomorrow™, BAT not only prioritizes the long-term growth of its business but also focuses on creating a positive impact on society and the planet.

Emphasizing Sustainability and ESG Matters

A significant aspect of BAT’s governance framework is its dedication to sustainability and the thoughtful management of ESG aspects. This focus on sustainability is not just a trend but a vital element of BAT’s operational philosophy. In an era where companies are increasingly scrutinized for their environmental impact, BAT has stepped up by integrating ESG matters into its central mission. Effective management of sustainability-related risks and opportunities is at the heart of BAT’s operations, reflecting its commitment to delivering A Better Tomorrow™. By aligning its business strategies with sustainability goals, BAT aims to ensure robust, long-term growth while addressing pressing environmental and social issues.

Climate change and biodiversity loss pose global challenges that necessitate comprehensive responses. Understanding this, BAT has implemented sustainable practices to mitigate its environmental footprint, demonstrating a proactive stance on ESG issues. By embedding these practices into its day-to-day operations, BAT not only addresses external expectations but also positions itself as a leader in corporate responsibility. Consistently monitoring and improving its sustainability efforts, BAT aims to achieve a balance between economic growth and environmental stewardship, thereby setting an industry standard.

Corporate Taxation and Compliance

BAT’s approach to corporate taxation perfectly complements its overall governance strategy, detailing a sophisticated stance on tax risk, governance, and collaboration with tax authorities. Transparency in taxation is paramount for maintaining public trust and ensuring compliance with legal standards across different jurisdictions. As outlined in their Combined Annual and ESG Report, BAT’s strategy for effective corporate taxation includes stringent mechanisms to manage tax risks and ensure compliance with global tax regulations. This meticulous planning underscores BAT’s accountability and commitment to fair taxation practices.

Adhering to the UK Corporate Governance Code, BAT further demonstrates its transparency and ethical conduct through annual reports that encapsulate its governance strategies. These reports showcase how BAT aligns with the Code’s Principles and Provisions, forming a bedrock of trust for investors and stakeholders. With listings on the London Stock Exchange, Johannesburg Stock Exchange, and New York Stock Exchange, BAT faces diverse regulatory landscapes and complies with US securities laws. As a foreign private issuer, BAT adheres to regulations including the Sarbanes-Oxley Act and NYSE listing rules, ensuring meticulous reporting and high governance standards.

Transparent Reporting and Global Compliance

BAT’s commitment to transparency extends beyond corporate taxation and ESG to its comprehensive reporting standards. By filing an annual report on Form 20-F and furnishing the SEC with current reports on Form 6-K, BAT maintains stringent reporting protocols that highlight its dedication to regulatory compliance and investor confidence. Such rigorous reporting standards are a testament to BAT’s resolve in upholding transparency and ethical business practices on a global scale. This transparency is not just a regulatory requirement but a core value that underpins BAT’s corporate philosophy.

The company’s governance structure is reinforced by accessible and transparent communication channels. BAT’s registered office at Globe House in London symbolizes this accessibility, with Caroline Ferland serving as the Company Secretary. Such measures facilitate open dialogue with stakeholders, enhancing trust and reinforcing BAT’s commitment to robust corporate governance. This approach ensures that BAT remains accountable and responsive to the evolving expectations of its global stakeholders, ultimately fostering a sustainable and resilient business model.

Conclusion

In today’s ever-changing world filled with challenges, British American Tobacco (BAT) has shown a steadfast commitment to corporate governance and sustainability, viewing these areas as crucial for long-term growth and resilience. By implementing strong governance frameworks, transparent reporting, and a focus on Environmental, Social, and Governance (ESG) factors, BAT aims to manage global economic changes and environmental issues. In 2023, BAT reached a significant milestone when all employees confirmed adherence to its Standards of Business Conduct, highlighting the company’s dedication to ethical practices and transparency. This commitment is reinforced through mandatory training, assessments, and compliance requirements, ensuring alignment with the company’s core principles.

BAT’s corporate governance strategy is not just a set of theoretical ideals but a practical approach designed to tackle both current and future challenges. This is evident in its proactive management of risks and opportunities arising from global issues like climate change and biodiversity loss. By embedding sustainability into its mission of delivering A Better Tomorrow™, BAT focuses on long-term business growth while making a positive societal and environmental impact.

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