SUPPLIER DIVERSITY
Sustainable practices and ethical sourcing Environmental responsibility and ethical sourcing are central to BAT ’ s strategy .
The company ’ s commitment to responsible sourcing is evidenced by its comprehensive due diligence strategy , with 10-15 % of sourcing criteria dedicated to assessing sustainability and ethical practices .
“ Our due diligence strategy takes a risk-based approach , prioritising those suppliers with higher sustainability risks , bearing in mind a number of factors such as their location or sector ,” Johan continues .
This is underpinned by BAT ’ s internal expertise , as well as external risk databases , like Maplecroft . It also works with leading ESG experts including Ecovadis , Sedex and the Responsible Business Alliance .
BAT has set an ambitious target to have all high-risk product materials and indirect suppliers undergo at least one independent labour audit within a three-year cycle by 2025 .
“ We ’ re proud to report that we have already achieved 88 % of this target , 13 % ahead of our 2024 goal , underscoring our dedication to responsible sourcing practices ,” Johan adds .
Building for the future Looking ahead , BAT is developing what Johan describes as a “ multi-category asset-lite global supply chain .”
“ We have a responsibility to transform the future of work and redefine the roles humans and machines play in our business ”
JOHAN VANDERMEULEN , CHIEF OPERATING OFFICER , BAT
It ’ s an approach that involves strategic industry collaborations and the adoption of new manufacturing technologies to optimise investments while expanding into new categories .
The firm has made significant investments in sustainable operations , from renewable energy to AI-driven utility systems . Recent pilot programmes exploring sustainable aviation and marine fuels demonstrate BAT ’ s commitment to pioneering environmental solutions .
“ Our supply chains are evolving to become more responsive and synchronised ,” Johan explains . “ This is adding value far beyond traditional boundaries and enabling us to become more competitive , commercially successful and to excel in delivering sustainable value for our business .”
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