BAT Vietnam - Excellence in environmental management

Climate change

With unpredictable weather systems and rising sea levels becoming a feature of our times, there is an urgent need to address climate change.

The transformation of our own operations and those of our suppliers is a critical part of working towards achieving our science-based emissions reduction targets, in line with Paris Climate Agreement goals.

Across products and operations, we rely on natural resources such as timber, soil and water. That means we are affected by, and therefore dedicate efforts to manage our impacts on climate change.

Addressing climate risks and opportunities across our value chain is key to the sustainability of our business. We have set ourselves an ambitious target to reach 50% absolute reduction in Scope 1 and 2 GHG emissions by 2030 (vs 2020 baseline), 50% renewable energy use by 2030 and carbon neutrality by 2025 for our operations, and are already making great progress through:

• Improving the energy efficiency of our factories, such as by upgrading to more efficient and lower impact equipment;
• Increasing our use of renewable energy through renewable energy purchases and on-site energy generation projects; and
• Optimising our logistics and fleet, such as through improving vehicle performance and fuel efficiency.

Through this we have achieved impressive results, by the end of 2024, 60% absolute reduction in Scope 1 and 2 GHG emissions (vs 2020 baseline), 83% renewable energy and carbon neutrality since 2023 for our BAT-Vinataba (JV) site.

Why tackling climate change matters

Climate change impacts will be felt more strongly in the coming years. This can impact the natural environment and communities in which we operate, as well as our business and our supply chain. To secure access to natural resources, we need to build a climate-resilient business and work with our suppliers closely to address any risks arising from climate change. These risks are increasingly getting more complex, with potential impacts on crop yields, disruption to distribution networks and the livelihoods of communities, and reduced access to drinking water – a fundamental human right. While some impacts of climate change will be common everywhere, it is essential we understand and manage localised risks. Supporting people in our supply chain and preparing for the future are vital aspects of our business’s sustainability

Water Stewardship

Ensuring a prosperous and sustainable future for people and planet requires responsible and inclusive stewardship of water – a critical and limited resource.

At BAT Vietnam, we are committed to protecting and preserving valuable water resources through various water management activities. This includes the prevention and early detection of leakages, adhering to maintenance regime, replacing equipment with more water efficient models, and improving technology for the operating process to reduce water withdrawal and increase the recycling rate of water by using treated water for landscapes. Our commitment firmed the following Goals:

1. Influence: our members and partners are a powerful driving force for change and scale in the adoption of water stewardship.
2. Inclusion: water stewardship and its benefits are accessible for all.
3. Impact: water stewardship drives and supports positive change in community for water stressed catchments.

Water management is vital to not only sustainable farming but also direct operations. It’s both our responsibility and for good business to use water efficiently.

BAT Vietnam’s Goals:

35% reduction in water withdrawn (vs 2017 baseline) and 30% of water recycled by 2025 and 100% operation sites Alliance for Water Stewardship certified.

Our 2024 highlights:

Site BAT Vinataba (JV): Water withdrawn reduced to 14,706 m3 (vs. 26,736 m3 in 2017), reached 45% reduction in water withdrawn (vs 2017 baseline) and 37% of water recycled.

Site Vina BAT (JV) (new added in our report): Water withdrawn reduced to 3,163 m3 (vs. 3,913m3 in 2023), reached 19% reduction in water withdrawn (vs 2023).

Both sites conducted Water stewardship seminars including key stakeholders to gather water data, identify water challenges, best practice sharing as well coorporated to NGOs (Saigonxanh & Bienhoaxanh) implemented 13 activities for canal cleanup to promote water stewardship to community.

AWS Certification

Water stewardship is the use of water that is socially and culturally equitable, environmentally sustainable and economically beneficial, achieved through a stakeholder-inclusive process that includes both site- and catchment-based actions. AWS is a global membership collaboration for businesses, NGOs, and the public sector, where members contribute to the sustainability of local water resources by adopting and promoting a universal framework for the sustainable use of water – the International Water Stewardship Standard, or AWS Standard.

Our first phase where implementing the AWS Standard at our BAT Vinataba (JV) company, already got the Alliance for Water Stewardship certified by June 2023 as well as retained certification to end 2024. The second site Vina BAT (JV) got the Alliance for Water Stewardship certified by March 2025.

Circular Economy

Our ambition - Reducing the use of virgin raw materials. 

We seek to reduce our material footprint across our value chain and to understand and minimise the environmental impact of virgin raw material use.

We aim to use more sustainable materials and increase resource efficiency, encourage responsible consumption and disposal and collaborate with waste management organisations to enhance material recovery.

BAT Vietnam’s Goals:

90% recycling rate of waste generated, 25% reduction in waste generated across our operations by 2025 (versus 2017 baseline) and less than 1% of our operational waste going to landfill by 2025.

Our 2024 highlights:

Site BAT Vinataba (JV): 98.6% recycling rate of waste generated, 74% reduction in waste generated (versus 2017 baseline), Zero waste to landfill since 2022.

Site Vina BAT (JV) (new added in our report): 95% recycling rate of waste generated, Zero waste to landfill since 2023.