Imperial Brands PLC · LSE:IMB
Imperial Brands — ESG Presentation (September 2024)
80 slides from Imperial Brands's sustainability presentation, Sep 30, 2024
Slide 1: ESG Investor Webinar: People & Planet
ESG INVESTOR WEBINAR People & Planet 30 September 2024
Slide 2: Disclaimer
Disclaimer Certain statements in this announcement business or other market conditions. announcement should be interpreted to constitute or may constitute forward- These and other factors could adversely mean that the future earnings per share of looking statements. Any statement in this affect the
Slide 3: Chair's Overview
Chair’s Overview Thérèse Esperdy Chair 3 | ESG Webinar | 30 September 2024
Slide 4: Eight Priorities Aligned to Our Strategy
Eight Priorities Aligned to Our Strategy Positive Contribution Healthier Futures Safe & Inclusive Workplace To Society OUR ESG STRATEGY REMAINS ALIGNED WITH UN SUSTAINABILITY DEVELOPMENT GOALS (SDGs) 4 | ESG Webinar | 30 September 2024
Slide 5: Underpinned by Robust Governance Framework
Underpinned by Robust Governance Framework ESG agenda is embedded within our operations and governance structure Board of Directors Committees Board People, Governance and Remuneration Committee Audit Committee Sustainability Committee Committees Executive Leadership Team Executive Group Ethics & Co
Slide 6: People, Governance & Sustainability Committee
People, Governance & Sustainability Committee Refreshed committee to oversee ESG and wider people and governance matters People, Governance and Sustainability Committee Reviewing and monitoring people and culture Executive capabilities and succession planning policies, frameworks and practices – Ove
Slide 7: Review of Non-Financial Reporting
Review of Non-Financial Reporting Review ESG-related disclosures and assurance processes People, Governance and Sustainability Committee Audit Committee Oversees non-financial reporting in conjunction with Audit Committee Internal Assurance Internal Audit Non-Financial Information & External Assuran
Slide 8: Powered by Responsibility
Powered by Responsibility Refreshed all our policies across the key areas Supplier Code of Group Human Rights Group Health, Safety Code of Conduct Speaking Up Policy Conduct Policy and Wellbeing Policy Our Code of Conduct We expect our suppliers We expect all our We are committed to We want to achie
Slide 9: Creating a Skilled and Diverse Board
Creating a Skilled and Diverse Board Thérèse Esperdy Stefan Bomhard Lukas Paravicini Sue Clark Diane de Saint Victor Ngozi Edozien Chair CEO CFO Senior Independent NED NED Andrew Gilchrist Julie Hamilton Alan Johnson Bob Kunze-Concewitz Jon Stanton NED NED NED NED NED 9 | ESG Webinar | 30 September
Slide 10: Strengthening Board Diversity and Skills
Strengthening Board Diversity and Skills By gender, ethnicity, nationality and expertise 2020 2024 Enhanced Skills and Expertise • Fast-moving consumer goods Number of Board members 9 11 • Innovation and product development • Global business leadership • Finance and risk Female Board members 2 5 22%
Slide 11: Delivering Against Our Plan
Delivering Against Our Plan Safe & Inclusive Healthier Workplace FARMER LIVELIHOODS & Futures WELFARE We supported more than EMPLOYEE HEALTH, SAFETY & WELLBEING CONSUMER HEALTH Enabled Consumer Choice by CLIMATE CHANGE Reduced our direct emissions by 100,000 Reduced Lost Time Accidents by DIVERSITY,
Slide 12: Purposeful ESG
Purposeful ESG Stefan Bomhard CEO 12 | ESG Webinar | 30 September 2024
Slide 13: Our Purpose, Vision and Strategy: A Challenger
Our Purpose, Vision and Strategy: A Challenger Our ESG approach supports our purpose, vision and strategy OUR PURPOSE “Forging a path to a healthier future for moments of relaxation and pleasure” OUR VISION “To build a strong challenger business powered by responsibility, focus and choice” Start wit
Slide 14: Our ESG Journey So Far
Our ESG Journey So Far Forging a path to a healthier future 2021 2022 2023 2024 New strategy ESG ESG strategy Internal ESG priorities People, Governance and Sustainability launched materiality signed off by ‘People & integrated into Board Committee established study ESG Planet’ executive Purpose & C
Slide 15: Executive Sponsorship of Each Priority
Executive Sponsorship of Each Priority ESG Committee Chair Stefan Bomhard CEO ELT Lead on ESG Alison Clarke Chief People and Culture Officer Global Head on ESG Tony Dunnage Global ESG Director 15 | ESG Webinar | 30 September 2024
Slide 16: A Performance Culture Drives ESG Delivery
A Performance Culture Drives ESG Delivery Performance culture drives ESG delivery • Performance culture drives challenger mindset • Culture supports ESG delivery • Focus on Zero Carbon, Zero Waste and Zero Injuries 16 | ESG Webinar | 30 September 2024
Slide 17: Healthier Futures for Consumers
Healthier Futures for Consumers Consumer Health • Driving transition to potentially reduced risk products • Meaningful contribution to tobacco harm reduction • Requires deep understanding of the consumer 17 | ESG Webinar | 30 September 2024
Slide 18: Healthier Futures for the Planet
Healthier Futures for the Planet Climate change Packaging and Waste • Clear target setting • Delivering on ESG challenges • Focus on ESG helps support commercial delivery 18 | ESG Webinar | 30 September 2024
Slide 19: Healthier Futures for People and Society
Healthier Futures for People and Society Employee health, Wider Society: safety and wellbeing Farmer Livelihoods • Zero injury ambition • Supporting farming communities 19 | ESG Webinar | 30 September 2024
Slide 20: Agenda
Agenda HEALTHIER FUTURES FOR… PERFORMANCE PEOPLE AND CONCLUSION CONSUMERS PLANET CULTURE SOCIETY Q&A Alison Clarke Paola Pocci Lukas Paravicini Tony Dunnage Stefan Bomhard Joe Thompson Benjamin Kristen Vinay Advani All 20 | ESG Webinar | 30 September 2024
Slide 21: Performance culture drives ESG delivery
Performance culture drives ESG delivery Alison Clarke Chief People and Culture Officer 21 | ESG Webinar | 30 September 2024
Slide 22: How Our Performance Culture Drives ESG Delivery
How Our Performance Culture Drives ESG Delivery Performance Culture Capability Accountability Collaboration 22 | ESG Webinar | 30 September 2024
Slide 23: Building Capabilities, Accountability and Collaboration
Building Capabilities, Accountability and Collaboration Capabilities Accountability Collaboration People, processes, data Measurement, remuneration, audits Communities, Zero Heroes, suppliers • Investment in people • Development of clear goals and • ESG community with KPIs champions to support initi
Slide 24: Galvanising Our People Through Communication
Galvanising Our People Through Communication 24 | ESG Webinar | 30 September 2024
Slide 25: Becoming More Inclusive to All
Becoming More Inclusive to All A performance approach to diversity, equity and inclusion Business Employee Resource Groups Leading from the top 1,000+ champions across four BERGs female 45% Board up from 22% in 2020 diversity minority ethnic 18% up from 0% in 2020 45% female DiverseABILITY Gender In
Slide 26: Reflecting our Diverse Customers
Reflecting our Diverse Customers Collaborating to drive commercial outcomes Salesforce Diversity • Reshaping sales teams in US and Germany • Better reflect retail communities • Increased cultural diversity • Closer retailer relationships 26 | ESG Webinar | 30 September 2024
Slide 27: Healthier Futures for Consumers
Healthier Futures for Consumers 27 | ESG Webinar | 30 September 2024
Slide 28: Consumer-centric approach to tobacco-related harm
Consumer-centric approach to tobacco- related harm Paola Pocci Chief Consumer Officer 28 | ESG Webinar | 30 September 2024
Slide 29: Forging a Path to a Healthier Future
Forging a Path to a Healthier Future Building a sustainable and profitable Next Generation Products business Our Challenger Approach to OUR PURPOSE Consumer Health “Forging a path to Start with the A data-driven approach informed by a deep a healthier future consumer understanding of consumers and o
Slide 30: Consumer Choice and Harm Reduction
Consumer Choice and Harm Reduction We take a holistic approach to maximise net benefit Scientifically substantiated Harm Consumer potentially Reduction Acceptance reduced risk products • Best health-related outcome is for adult smokers not to smoke or use any tobacco or nicotine product • Next best
Slide 31: Consumer Choice Must be Provided Responsibly
Consumer Choice Must be Provided Responsibly Consumer Acceptance Population Scientifically level substantiated Adult Adult Unintended Unintended tobacco smoker smoker reduced risk user appeal user usage harm appeal usage reduction products “Off ramp” from smoking “On ramp” to nicotine 31 | ESG Webin
Slide 32: Providing Product Choice to Drive Consumer Acceptance
Providing Product Choice to Drive Consumer Acceptance A multi-category approach is critical to meet existing nicotine consumer needs Potentially Category Retail Sales Value Penetration Rate (2023) Harm Consumer reduced risk Reduction Acceptance products Consumer Acceptance Support “Off ramp” from sm
Slide 33: Under-age People Should Never Use our Products
Under-age People Should Never Use our Products Our products target existing adult smokers, and we are constantly improving the ways we prevent youth access Potentially We are committed to: Harm Consumer reduced risk Reduction Acceptance products Our responsible marketing code Consumer Acceptance Min
Slide 34: Scientific validation of our products
Scientific validation of our products Joe Thompson Director of Group Science and Regulatory Affairs 34 | ESG Webinar | 30 September 2024
Slide 35: The Scientific Literature Demonstrates THR Potential of NGP
The Scientific Literature Demonstrates Tobacco Harm Reduction (THR) Potential of NGP Public health bodies support the concept of harm reduction Over 3,700 scientific publications on NGP in 2023 Ref: https://pubmed.ncbi.nlm.nih.gov/ UK, Royal College of Physicians 2024: “Using e-cigarettes for harm r
Slide 36: Offering a Choice of Potentially Reduced Risk NGP
Offering a Choice of Potentially Reduced Risk NGP Not all nicotine-containing products are equally as harmful as cigarettes The relati e ris scale indicates their relati e harm eate to acco Oral icotine ape nicotine replacement Com usti les t erapy Snus pouc es otal cessation C si e a si e si e r s
Slide 37: Our Multi-Stage Scientific Assessment Framework
Our Multi-Stage Scientific Assessment Framework (SAF) Assesses the Potential for Tobacco Harm Reduction Understanding toxicology and the impact of our NGP on consumer's physiology & behaviour What‘s in the Wha ‘s he Wha ‘s What does the What is the What is aerosol? impact on happening in consumer do
Slide 38: Up to 99% Reduction In Harmful Chemicals
Up to 99% Reduction In Harmful Chemicals Substantiating reduced exposure of consumers to toxicants 100% Combustible cigarettes 75% 50% >99%* >95%** reduction reduction 25% 0% Vapour Heated Tobacco Air Substantially reduced exposure: Substantially lower levels of harmful chemicals for both vapour and
Slide 39: Substantial Reduction in Toxicity in Regulatory Tests
Substantial Reduction in Toxicity in Regulatory Tests Substantiating the reduced biological impact compared to cigarettes Genotoxicity Mutagenicity Cytotoxicity Genotoxicity Mutagenicity Cytotoxicity 100% Combustible cigarettes 75% 50% Not Not 99%* 87%** Not 97%** genotoxic mutagenic mutagenic reduc
Slide 40: Assessing Long-Term Health Risks
Assessing Long-Term Health Risks Advanced in vitro toxicology provides a weight-of-evidence approach Cig 1R6F HTP HTP EVP EVP Vapour Increase Risk markers Heated Tobacco Decrease Reduced impact on human lung tissue: Reduced impact on human cardiovascular system: Reduced levels of harmful chemicals t
Slide 41: Effectively Delivering Nicotine
Effectively Delivering Nicotine Clinical studies demonstrate nicotine delivery at a similar speed to smoking to help consumers switch Nicotine Blood Delivery Nicotine uptake in the lungs 18 Baseline-adjusted plasma nicotine 16 HTP Pulze 2.0 Variant iD Balanced A Blue Stick 14 concentration (ng/mL) H
Slide 42: Marked Reductions in Biomarkers of Exposure
Marked Reductions in Biomarkers of Exposure Both dual use and complete switching have a positive impact Reduction in biomarkers between days 10-14 0% Vapour dual use Cigarette Reduced physiological impact: Both dual and exclusive use Vapour sole use substantially reduce a broad range of biomarkers o
Slide 43: Helping Adult Smokers Transition Away from Smoking
Helping Adult Smokers Transition Away from Smoking Our in-market studies show up to 50% of consumers fully switch or substantially reduce smoking using our NGP Substantial switching & smoking reduction: heated tobacco Substantial switching & smoking reduction: vapour Numbers of consumers fully trans
Slide 44: Potential for Public Health Harm Reduction
Potential for Public Health Harm Reduction Population health modelling helps evaluate societal health benefits Mortality model Model robustness Modelling Approach Data foundation Predicts mortality rates based on Grounded in dynamic population UK prevalence data on smoking and smoking and vaping sta
Slide 45: Continuing to Assess Products Once They Are on The Market
Continuing to Assess Products Once They Are on The Market Evaluate scientific & medical literature Assess consumer health complaints Monitor notifications to regulators Studies to assess benefit/impact on population 45 | ESG Webinar | 30 September 2024
Slide 46: Committed to Meaningful Contribution to Harm Reduction
Committed to Meaningful Contribution to Harm Reduction Through Consumer Choice of Potentially Less Harmful Products Access To Choice (Provide adult smokers with a potentially reduced harm choice) Proving Harm Reduction Potential (Substantiating our NGP against our Scientific Assessment Framework) Un
Slide 47: Healthier Futures for Our Planet
Healthier Futures for Our Planet 47 | ESG Webinar | 30 September 2024
Slide 48: Towards zero carbon
Towards zero carbon 48 | ESG Webinar | 30 September 2024
Slide 49: Our Climate Target
Our Climate Target Scope ZERO Emissions related to our INJURY 1 facilities and vehicles Net Zero by 2030 Scope ZERO Emissions related to the CARBON 2 energy we purchase Emissions from our ZERO Scope Net Zero suppliers and consumer WASTE 3 by 2040 usage of our products 49 | ESG Webinar | 30 September
Slide 50: Our Carbon Challenge in Context
Our Carbon Challenge in Context Our carbon footprint In 2023, total emissions across scope 1, 2 and 3 were 922,865 tonnes of carbon: pstream Scope emissions n estments irect Scope & emissions se of sol pro ucts o nstream Scope emissions Scope mployee commuting Purc ase goo s & aste generation in ope
Slide 51: Delivering on Our Direct Targets (Scope 1&2)
Delivering on Our Direct Targets (Scope 1&2) 000,s 200 1,200 Total Energy Consumption 180 [GWh] 1,000 160 Energy Consumption [GWh] Total Energy Consumption 140 [GWh] [Projected] 800 Emissions [tCO2e] 120 Scope 1 Emissions 100 600 [tCO2e] 80 Scope 1 Emissions 400 [tCO2e] [Projected] 60 40 Scope 2 Emi
Slide 52: Monitoring Energy Use Across Footprint
Monitoring Energy Use Across Footprint Driving energy efficiency and cost savings Daily: 1000 kW – approx. Annually: 120 days of shutdown 1000/24 * 120 * 24 = 120,000 kWh/yr At approx. 0.2 £/kWh Annual saving £24,000 at one site 52 | ESG Webinar | 30 September 2024 Source: Company data subject to su
Slide 53: Carbon Reduction Through Fleet Management
Carbon Reduction Through Fleet Management Efficiencies will result from new equipment and driving behaviour EV Pilots will test infrastructure 100% and handling to be fit for 2030 80% Where available, biofuel usage will be Fleet Size explored, alongside ~4,700 60% electrification 40% Projected 2024
Slide 54: Progress on Our Indirect Targets
Progress on Our Indirect Targets Targeting Scope 3 Emissions • Supplier CDP responses embedded in our FY23 Scope 3.1 calculation for the first time* • FY24 target to have 50% of purchased goods and services spend covered by science-based targets (tracking at ~47%) • Partnership with CDP Supply Chain
Slide 55: We Have a Plan and it is Delivering
We Have a Plan and it is Delivering Intermediate Targets 2024 Progress 100% grid electricity 2025 from renewables 97% from renewable sources Reduce total 2025 emissions by 50% 69% reduction since 2017 100% energy 2030 from renewables 43% from renewable sources Reduce energy 2030 consumption by 25% 2
Slide 56: Our Net Zero Ambition
Our Net Zero Ambition CLIMATE 2030 2040 CHANGE We are committed to reducing our climate Reduce scope 1 & 2 Reduce our total carbon impacts across our value chain. Focusing on both emissions by 100% footprint emissions mitigation and adaptation. by 100% UN SDGs We are taking action to combat climate
Slide 57: Packaging and Waste
Packaging and Waste Benjamin Kristen Head of Packaging 57 | ESG Webinar | 30 September 2024
Slide 58: Our Packaging & Waste Targets
Our Packaging & Waste Targets We are on track to deliver against our targets Zero Waste to landfill in our operations by 2025 ACHIEVED 20% waste reduction Within our operations by 2030 ACHIEVED All our EU & UK packaging 94% Reusable, recyclable, or compostable by 2025 (level 1 & 2)* ACHIEVED >80% av
Slide 59: VIDEO: Zero Waste To Landfill in Our Operations
VIDEO: Zero Waste To Landfill in Our Operations A challenging target we will manage together 59 |
Slide 60: Consumer trends within FMCG
Consumer trends within FMCG 28% of consumers “D e er” had actively stopped buying products with ethical or 6 in 10 ✓ Consumers want to do better shoppers actively changing the ✓ They want brand owners to do sustainability concerns, this figure way they shop better rose to 45% for Gen Z. ✓ and they w
Slide 61: All Our EU & UK Packaging Reusable, Recyclable, Compostable by 2025
All Our EU & UK Packaging Reusable, Recyclable, Compostable by 2025 (LEVEL 1 & 2)* Four formats are now recyclable enabling recycling of 1960 tonnes of plastic yearly Aachievements To Be Recyclable Formats now recyclable Improved recycling Score from 0% to up to 99% 99% Now recyclable ~1960 tonnes o
Slide 62: Recycled Packaging: Horizon Brand
Recycled Packaging: Horizon Brand Good for consumers Proven to have had a positive impact on consumers’ perception of quality, and on brand choice Good for business 10% uplift on sales during this activation compared to previous campaigns Building our future And, of course, a further step towards a
Slide 63: Packaging and Waste in NGP
Packaging and Waste in NGP Improving Product Innovation and Consumer Behaviour with NGP • Packaging and waste initiatives being rolled out across our NGP portfolio • Investing in NGP innovation • Product design to improve recyclability (e.g. removable battery) • Influencing consumer behaviour 63 | E
Slide 64: Healthier futures for people and society
Healthier futures for people and society 64 | ESG Webinar | 30 September 2024
Slide 65: Employee health, safety and wellbeing
Employee health, safety and wellbeing Tony Dunnage Group ESG Director 65 | ESG Webinar | 30 September 2024
Slide 66: Performance Drivers: Processes, Capabilities And Behaviours
Performance Drivers: Processes, Capabilities And Behaviours Safety practices integrated across the business Processes Capabilities Behaviours Recognise and influence Consistently manage health safe behaviours in the Define key safe behaviours What and safety across all workplace and increase to be f
Slide 67: Initiatives Driving Improved Focus on Safety
Initiatives Driving Improved Focus on Safety Health & Safety Campaigns On-The-Ground Initiatives 67 | ESG Webinar | 30 September 2024
Slide 68: The Approach is Delivering Results
The Approach is Delivering Results Group Lost Time Accident (LTA) frequency rate glidepath to FY30 0.5 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.1 0.2 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 Pr
Slide 69: Wider society: farmer livelihoods
Wider society: farmer livelihoods Vinay Advani Head of Leaf Procurement and Sustainability 69 | ESG Webinar | 30 September 2024
Slide 70: Partnership Approach to Leaf Supply
Partnership Approach to Leaf Supply Our suppliers’ core competencies are growing and processing tobacco Source majority of leaf from two global suppliers • Mature due diligence processes • Grievance mechanisms in place • Engagement with farmers • Child labour policies in place • Business Code of Con
Slide 71: New Challenges for Tobacco Growers
New Challenges for Tobacco Growers 17 13% countries struggle to retain Everything on the farm is origins impacted by farmers interconnected adverse weather events 71 | ESG Webinar | 30 September 2024
Slide 72: Meeting this Challenge
Meeting this Challenge bal Partnersh ip ecurity Stock armer Livelihoo ds lo S r F o G s & tf We or Supp lfare Minimum Supporting Spread risk with provision of a multi-region annual consumption decent standard footprint of living coverage 72 | ESG Webinar | 30 September 2024
Slide 73: How is a Decent Standard of Living Measured?
How is a Decent Standard of Living Measured? A standard methodology has been formally adopted by the industry Living Income Benchmark* “ e net annual income require for a household in a particular place to afford a decent standard of living for all mem ers of t at ouse ol ” A decent standard of livi
Slide 74: A Decent Standard of Living is Crucial for Farmers
A Decent Standard of Living is Crucial for Farmers We aim to improve farmers Implementing We aim to improve access to access to projects to sustainable agriculture, aimed basic needs improve financial at supporting our suppliers to for 180,000 farmers and their sustainability provide access to 100%
Slide 75: Leaf Partnership
Leaf Partnership Improved basic needs and financial awareness 166,000 1,000 96,000 3 benefiting from farmers children have financial access to clean benefiting from improved awareness water projects income and access to training courses productivity schools / initiatives childcare 75 | ESG Webinar |
Slide 76: Leaf Partnership
Leaf Partnership Supporting sustainable agriculture 99% 95% 25% Suppliers committed More fuel-efficient Wood sustainable to sustainable pest tobacco barns management 76 | ESG Webinar | 30 September 2024 Source: Company data subject to substantiation by external auditors
Slide 77: Partnership with Suppliers
Partnership with Suppliers Our suppliers are on this journey with us and we rely upon them Suppliers are part of Committed to decent Leaf Partnership Sustainable Tobacco standard of living Projects Program 98% 13 Countries 100% 77% 14 of volume from suppliers Suppliers committed to our Net Zero carb
Slide 78: Concluding Remarks and Q&A
Concluding Remarks and Q&A 78 | ESG Webinar | 30 September 2024
Slide 79: Good Progress Against Our Priority Areas
Good Progress Against Our Priority Areas Forging a path to a healthier future Enabled Reduced our Reduced We Recognised Reduced Workforce We aim to Consumer direct absolute waste supported by Lost Time Disclosure have Choice emissions in operations more than CDP for a Accidents by Initiative score 3
Slide 80: Question and Answer Session
Question and Answer Session 80 | ESG Webinar | 30 September 2024