Imperial Brands PLC · LSE:IMB
Imperial Brands — ESG Presentation (September 2022)
43 slides from Imperial Brands's sustainability presentation, Sep 27, 2022
Slide 1: ESG Investor Webinar: People & Planet
ESG INVESTOR WEBINAR People & Planet 27 September 2022
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation adversely affect the outcome and financial years will necessarily match or exceed the constitute or may constitute forward- effects of the plans and events described historical or published earnings per share looking statements. Any statement in thi
Slide 3: Our refreshed ESG approach supports our strategy, purpose and vision
Our refreshed ESG approach supports our strategy, purpose and vision We are transforming to create a more sustainable business better able to create value for all stakeholders 3 | ESG Webinar | 27 September 2022
Slide 4: Developed through a comprehensive review
Developed through a comprehensive review January 2021 September 2022 New strategy Purpose & ESG Board & New ESG ESG strategy Internal ESG priorities launched vision & materiality Executive strategy signed off by ‘People & integrated into behaviours study governance developed ESG Planet’ executive un
Slide 5: We have identified eight priority areas
We have identified eight priority areas POSITIVE CONTRIBUTION SAFE & INCLUSIVE HEALTHIER FUTURES TO SOCIETY WORKPLACE Powered by responsibility 5 | ESG Webinar | 27 September 2022
Slide 6: Our priorities are aligned to several UN SDGs
Our priorities are aligned to several UN SDGs 6 | ESG Webinar | 27 September 2022 Source: United Nations Department of Economic and Social Affairs
Slide 7: Our approach is governed by a rigorous process
Our approach is governed by a rigorous process Board and senior management are highly engaged with our ESG agenda Internal Board of Directors assurance Internal audit ESG Committee Risk Group Risk Committee External Chaired by CEO Chaired by CEO assurance EY Reporting Planet Strategy People Strategy
Slide 8: With executive sponsors for each ESG priority
With executive sponsors for each ESG priority ESG SPONSOR ALIGNED TO EXECUTIVE REMIT ESG Committee Chair Stefan Bomhard Consumer Health Climate Change ELT lead on ESG Alison Clarke Employee safety, health & Sustainable & responsible Farmer livelihoods & wellbeing sourcing welfare Global ESG Director
Slide 9: Focusing on four key areas today
Focusing on four key areas today POSITIVE CONTRIBUTION SAFE & INCLUSIVE HEALTHIER FUTURES TO SOCIETY WORKPLACE Powered by responsibility 9 | ESG Webinar | 27 September 2022
Slide 10: Today's Agenda
Today’s Agenda Chief Consumer Consumer Health Andy Dasgupta Officer Climate Change Tony Dunnage Global ESG Director Senior Manager Farmer Livelihoods & Welfare Mark Ballance Leaf Sustainability Chief People & Cultural Transformation Alison Clarke Culture Officer Q&A All 10 | ESG Webinar | 27 Septemb
Slide 11: Consumer Health
Consumer Health 11 | ESG Webinar | 27 September 2022
Slide 12: Tobacco harm reduction starts with the consumer
Tobacco harm reduction starts with the consumer We take a holistic approach to maximise net benefit Potentially Tobacco Harm Less Consumer Reduction (THR) Harmful Acceptance (product performance) Product • Best health-related outcome is adult smokers not to smoke or use any tobacco product • Next be
Slide 13: Our new NGP approach is focused on driving consumer choice
Our new NGP approach is focused on driving consumer choice Our targeted investment is informed by consumer insight and market data Our consumer-led approach will improve consumer acceptance Product Consumer Investment Market focus Consumer-led differentiation engagement focus Prioritising Differenti
Slide 14: Nicotine categories have different risk profiles from cigarettes
Nicotine categories have different risk profiles from cigarettes The relative risk scale indicates their relative harm Heated Tobacco Oral Nicotine Combustible Vape Nicotine Replacement Cigarettes Snus Pouches Therapy Total Cessation Combustible tobacco Non-combustible Non-combustible products tobac
Slide 15: Persuading consumers to switch requires innovation across the value chain
Persuading consumers to switch requires innovation across the whole value chain No one has yet created the perfect reduced-harm alternative to the cigarette Potentially Less Harmful Product Supply Chain Science Insights Distribution Marketing Partnership Substantiate reduced Demand space Leverage ex
Slide 16: Our products target existing adult smokers
Our products target existing adult smokers Offering specific product experience valued by those adult smokers THR HEATED Multiple consecutive TOBACCO sessions without charging Consumer Longer battery, smart Acceptance VAPOUR functionalities, improved (product performance) ergonomics, sturdy pods Max
Slide 17: Under-age people should never use our products
Under-age people should never use our products… …and we are constantly improving the ways we prevent youth access THR WE ARE COMMITTED TO: Consumer Responsible marketing Acceptance (product performance) Working with partners to reinforce message Maximise Adult Minimise Smokers Ensure regulatory requ
Slide 18: We have made a good start on our NGP journey
We have made a good start on our NGP journey We have validated our new approach with consumer trials Jan 2021 Sept 2021 Sept 2022 New NGP NGP teams brought NGP investment New innovation strategy together under new optimised with director Further Pulze and iD launched Global Consumer market exits app
Slide 19: Climate Change
Climate Change 19 | ESG Webinar | 27 September 2022
Slide 20: UN Sustainable Development Goals
UN Sustainable Development Goals 20 | ESG Webinar | 27 September 2022 Source: United Nations Department of Economic and Social Affairs
Slide 21: Sustainable Development Goal 7
Sustainable Development Goal 7 21 | ESG Webinar | 27 September 2022 Source: United Nations Department of Economic and Social Affairs
Slide 22: Sustainable Development Goal 7
Sustainable Development Goal 7 22 | ESG Webinar | 27 September 2022 Source: European Commission KnowSDGs SDG 7
Slide 23: There is a clear call for collective action
There is a clear call for collective action Bn TOTAL PLANET ANNUAL CO₂ EMISSIONS Tonnes 35 • Acknowledge our responsibility as part of 30 the movement for positive change 25 • We have committed to achieve 20 net zero: 15 - in our own operations by 2030 10 - in our value chain by 2040 5 0 1750 1800 1
Slide 24: Our climate change priorities
Our climate change priorities GHG EMISSIONS ACROSS 5 STEP APPROACH TO ACHIEVING NET ZERO IMPERIAL’S VALUE CHAIN 1 Energy efficiency Action targeted at Emissions scope in 2017 (% tCO2e) Scope 1 and 2 emissions 2 100% renewable grid electricity related to Imperials direct 10% 3 All energy from renewab
Slide 25: Our scope and transition to net zero
Our scope 1 and 2 transition to net zero Transition to renewable Base line electricity – wave 1 100% Renewable electricity – wave 2 CO2 (equivalent) emissions Completion of renewable electricity Mix of operational & energy efficiency Scope 1 fuel transition Net Zero 2017 Efficiencies Renewable Balan
Slide 26: We are well positioned to achieve this
We are well positioned to achieve this And our track record has been recognised SINCE 2017 IN THE LAST YEAR *37% Decrease in total absolute Scope 1 & 2 CO2e SINCE 2017 *17% Decrease in total absolute energy consumption >50% Tier 1 Suppliers have committed to have Science Based Targets in place by 20
Slide 27: Net Zero: Our ambition
Our ambition CLIMATE CHANGE We are committed to 100% 30% NET ZERO reducing our climate Of purchased Reduction of total BY 2030 impacts across our value chain. Focusing on both grid electricity CO2 by 2030 in our direct mitigation and adaptation. (Scope 1,2&3) operations from renewable ON TRACK (Scop
Slide 28: Farmer Livelihoods & Welfare
Farmer Livelihoods & Welfare 28 | ESG Webinar | 27 September 2022
Slide 29: Working together as an industry
Working together as an industry To amplify the impact for communities and the environment Sustainable Tobacco Programme 29 | ESG Webinar | 27 September 2022
Slide 30: We partner with reputable suppliers
We partner with reputable suppliers Whose core competencies are growing and processing tobacco Mature due diligence processes Engagement with farmers Business Code of Conduct available Speak up mechanisms in place Child labour policies being practised 30 30| | ESG Webinar | 27 September 2022
Slide 31: Robust governance to manage risk
Robust governance to manage risk Build on partnerships Core Business Activity farmers per leaf 120 technician visits per year per 8 farmer both announced and unannounced Data recorded for end to end traceability 31 31| | ESG Webinar | 27 September 2022
Slide 32: Drive improvement and create positive impact
Drive improvement and create positive impact Through robust frameworks • Sustainable Tobacco Programme • Sets policies informed by ILO, OECD & UNGPs • Good Agricultural Practices • Agricultural Labour Practices Verifies: 100% data verified ILO - International Labour Organisation | OECD – Organisatio
Slide 33: Imperial's due diligence process
Imperial’s due diligence process Supported through continuous dialogue with suppliers and in field verifications • 136,000 with access to water and sanitation from mature Imperial projects commissions • Over 20 childcare and education and supports projects implemented supply chain • Re-forestation,
Slide 34: Our ambition and progress so far
Our ambition and progress so far What are our commitments? 180,000 farmers with access to projects to INCREASE FINANCIAL SECURITY FARMER by 2025 LIVELIHOODS & WELFARE We are committed to continue to engage with our suppliers to Support suppliers to improve access to support and develop farming BASIC
Slide 35: Cultural Transformation
Cultural Transformation 35 | ESG Webinar | 27 September 2022
Slide 36: Creating an inclusive performance-based culture
Creating an inclusive performance-based culture OUR BEHAVIOURS 36 | ESG Webinar | 27 September 2022
Slide 37: A company-wide cultural change programme
A company-wide cultural change programme Cascading change throughout the organisation to enable our strategy ENABLING OUR STRATEGIC DELIVERY Nov 2021 2021/2022 Sept 2022 Roll-out of our Purpose Vision WAVE 1 WAVE 2 WAVE 3 WAVE 4 & Behaviours • Executive • 350 senior leaders • 1,100 people • 18,000 l
Slide 38: Change programme gaining momentum
Change programme gaining momentum External survey of 500 employees shows programme already resonating EMPLOYEE SURVEY RESULTS INDICATE IMPERIAL CHANGE PROGRAMME IS EXCEEDING EXTERNAL BENCHMARKS ON ALL KEY DETERMINANTS OF SUSTAINABLE ORGANISATIONAL CHANGE UNDERSTAND BELIEVE ARE ENABLED SEE CHANGE Imp
Slide 39: Improving diversity, equity & inclusion underpins our cultural change
Improving diversity, equity & inclusion underpins our cultural change EMPLOYEE RESOURCE GROUPS OUR LEADERSHIP TEAM Company sponsored, employee led EXECUTIVE LEADERSHIP TEAM BOARD OF DIRECTORS % women % women 40% 30% 25% 14% 2020 2022 2020 2022 Each Group aims to % ethnic minorities % ethnic minoriti
Slide 40: Cultural change ambition
Cultural change ambition Five-year diversity, equity and inclusion strategy Improving employee data disclosure Cultural change Create a community of allies ambition Reviewing prioritised policies and practices: • Attract and retain the best talent • Equal opportunities and career development • Compe
Slide 41: We are committed to making a difference
We are committed to making a difference Refreshed ESG approach integral to strategy, purpose and vision Building on good progress in some areas; more to do in others Culture transformation will support delivery of our ESG priorities Strengthened capabilities and governance structure to reinforce our
Slide 42: Questions?
Me IMPERIAL j ? Questions: Sie SERBS © Consumer Health i | § st “e Employee Diversity, Equity ; = & Responsible ~ Health, Safety & Inclusion Sourcing: & Wellbeing
Slide 43: Appendix – Further information
APPENDIX – Further information Information on ESG Strategy: https://www.imperialbrandsplc.com/healthier-futures Information on ESG performance and reporting: https://www.imperialbrandsplc.com/healthier-futures/our-performance Information on Imperial Brands Science and NGP: https://imperialbrandsscie