THR is an approach to improve public health outcomes by focusing on what we believe is one of the most important movements for America’s health agenda – reducing the harm associated with smoking combustible cigarettes.

Our commitment to our mission of creating A Better Tomorrow^TM by Building a Smokeless World necessitates an even stronger commitment to pragmatic solutions that help advance paths to reduce the health impact of our operating businesses.

There are over one billion smokers worldwide and 30 million of them live right here in the U.S. In any group that large, there will be a wide spectrum of opinions and priorities. Some adult smokers are uninterested in quitting tobacco altogether. Those adults deserve access to science-backed information about potentially reduced risk options available today.

So, what exactly is THR? It’s a public health strategy that creates opportunities to improve health outcomes in America. By empowering adult smokers with knowledge about potentially reduced risk alternatives, they can make informed decisions regarding their consumption of alternative nicotine products.

Public misperceptions surrounding potentially reduced risk products pose a challenge in reducing the health burden of cigarette smoking. Our focus is to address these misperceptions by educating and engaging with key stakeholders on the scientific evidence supporting the potential benefits of potentially reduced risk products as compared to combustible cigarettes. THR accounts for where the tobacco and nicotine markets are today, where the market is heading, and for the innovative technology that has become more commonplace in the last few years. From modern oral products, like nicotine pouches, to tobacco heating products and e-cigarettes, there are more options than ever for those adults who want to continue to use tobacco and nicotine products while exploring alternatives that have potentially reduced risk compared to combustible cigarettes.

Why now? Smoking is at a near historic low. Adult smokers are embracing these potentially reduced risk alternatives, and they deserve the information about potentially reduced risk products that allows them to make the best choices for themselves. In fact, since 1970, the rate of adult smoking has fallen more than 70%, but of adults that still smoke tobacco products, including non-combustible products, more than 79% use combustible cigarettes. This number will likely remain higher than it could be if there is a lack of access to alternatives with potentially less risk for adult smokers who are uninterested in quitting tobacco altogether.

Nothing happens in a vacuum, which is why our approach to Tobacco Harm Reduction has four key pillars, all of which are crucial to having a positive impact on America’s public health:

1. Better Regulation: Using guidance grounded in science to foster sensible regulation that keeps pace with innovation.
2. Better Alternative Choices: Continued innovation allows the industry to bring new, potentially reduced risk alternatives to adult smokers who are uninterested in quitting tobacco products altogether something other than traditional combustible cigarettes.
3. Better Solutions: By working together with anyone who shares the common goal of improving public health in the US, we can find new solutions only made possible through collaboration.
4. Better Understanding: An unwavering commitment to THR requires leveraging sound science to inform adult smokers on potentially reduced risk alternatives.

These four pillars enable us to pursue our most important goal – finding a Better Way to A Better Tomorrow^TM.

In the coming weeks, we’ll dive more deeply into each of these important pillars and work to provide you with a better understanding of Tobacco Harm Reduction and why it is so important.

To learn more about Tobacco Harm Reduction, and Reynolds’ commitment to creating A Better Tomorrow by Building a Smokeless World, visit the Reducing Harm page on ReynoldsAmerican.com.

By Kara Calderon, Head of Underage Access Prevention

Recently, the National Youth Tobacco Survey (NYTS) results were released, which showed the continued decline in youth e-cigarette (Vapor Products) use, which is now at the lowest level in a decade, and down 71% since its peak in 2019.

At ��������, underage access prevention (UAP) is more than a policy; it is a core principle that drives every facet of our business. We are resolute in our commitment to ensuring that our products are not accessible to individuals under 21. This steadfast dedication influences our practices, technology, and collaborations with stakeholders across the board.

Our aim is unambiguous: We do not want our products in the hands of underage individuals. Period. This conviction propels us to operate with the highest level of responsibility, forging strong partnerships with regulators, policymakers, and retail partners. Our aim extends beyond simply complying with industry standards—we strive to set them.

In our pursuit of excellence, we leverage cutting-edge technology, trusted data, and robust marketing controls to enhance our underage protection measures. By integrating the latest scientific advancements and technological innovations, we are able to address emerging challenges and continually refine our strategies to safeguard youth.

Our vision for “A Better Tomorrow” is not just about transitioning adult smokers to potentially reduced-risk alternatives; it’s also about establishing the highest industry standards for preventing underage access. We are heartened by the significant decline in underage smoking and vaping rates, which is a testament to the collective effectiveness of our initiatives to keep these products out of the hands of youth.

A cornerstone of our strategy involves stringent contractual agreements with retailers. We require them to enforce strict age restrictions on the sale of tobacco and nicotine products, including rigorous age verification at the point of sale. This approach has achieved an impressive 99.9% compliance rate, reflecting our commitment to preventing the sale and distribution of tobacco products to minors.

Our dedication to underage access prevention is further reinforced through ongoing training and responsible marketing practices. We take a proactive approach to restrict our advertising to media where at least 85% of the audience is over 21, as verified by independent third parties. Employees of the �������� organization are continually engaged in training programs focused on Retailer Compliance, Responsible Marketing, and Underage Access Prevention. Additionally, we support TruAge, a digital solution that enhances the security and reliability of age verification processes for adult tobacco consumers. We have also been an active supporter of the We Card program since its inception in 1995. This program provides retailers with essential materials and training to help prevent the sale of tobacco and nicotine products to minors.

We are vigilant in ensuring that our marketing and advertising content does not portray underage activities or imply that using our products is crucial for social status or success, and our advertising practices strictly avoid the use of celebrities or individuals who might appeal to youth.

At ��������, our commitment to underage access prevention is always ongoing. We are dedicated to continually working with regulators, policymakers, and retail partners to enhance our strategies and maintain the highest standards of integrity and responsibility. For more information about our unwavering dedication to underage access prevention, visit our dedicated page at ReynoldsAmerican.com. Together, we are committed upholding the highest standards of responsibility and protect the well-being of our youth.

In the recent Packaging Digest article, Wesley Jones, Senior Director, Packaging & Materials; Laya Horton, Director, Packaging Development; and Michael Davis, Master Scientist, Materials Development, speak to the initiatives we have underway to make our packaging more sustainable.

Read the original article on Packaging Digest by visiting .

Keep reading to find a copy of the full article below.

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��������’s Sustainable Packaging Swap

Swapping packaging materials and design components increases portfolio packaging recyclability and decreases virgin resource use.

By Wesley Jones, Senior Director, packaging & materials at ��������

At a Glance

• A packaging change by R.J. Reynolds Tobacco Co. was key to parent �������� topping 90% recycle-ready packaging.
• ��������’s plan to ‘Build a Smokeless World’ with new product entries will bring new circular economy challenges.
• The company is collaborating with key suppliers to find packaging solutions and inspire future innovation.

�������� is championing circular economy principles by swapping and reducing product packaging materials to increase recyclability and reduce use of virgin materials. The packaging trades have resulted in over 90% of the packaging in the �������� organization’s portfolio being recycle-ready and the use of fewer finite resources.

One fundamental substitute has been critical to achieving this milestone: swapping the foil inner bundle in most R.J. Reynolds Tobacco Company (RJRT) cigarette packs.

In the previous packaging used by RJRT, foil-lined paper was incorporated inside a paper box. The recent switch substitutes the inner bundle with paper, instead of a foil-paper lamination, thereby making both the liner and box paper-based and increasing recyclability. All packs are enclosed in a polypropylene wrap for benefits such as product freshness to maintain a consistent product experience. This wrap must be removed by the adult consumer prior to recycling.

“This is a significant packaging advancement for �������� given that R.J Reynolds Tobacco Company is the organization’s largest operating company. Not only was the conversion to a paper liner the right thing to do for the planet, but it also makes sound business sense,” said Laya Horton, director, packaging development, with the �������� organization.

The new RJRT packs continue to be made from paperboard certified by the Programme for the Endorsement of Forest Certification, advancing sustainable forest management. Furthermore, 95% of cigarette packs across the portfolio are labeled to educate adult consumers on proper waste disposal and recycling.

The paper-based packs have begun appearing on retail backbars across the country and will continue rolling out through the year.

A ‘Smokeless World’ brings challenges & solutions.

New category products that support our vision to create “A Better Tomorrow” by “Building a Smokeless World” rely on different resources, presenting unique challenges in sourcing materials, production, and responsible disposal. Our operating companies are consistently working to improve circularity and to create less overall waste.

For example, previously, R.J. Reynolds Vapor Company reduced the use of virgin plastics by removing the polypropylene outer wrap on Vuse Alto Pod and Power Unit vape products, helping to keep approximately 165,000 pounds of plastic out of landfills. But the company didn’t stop at removing the plastic wrap, as Alto’s packaging is also made of 100% recycle-ready cardboard. While we are proud of this progress, we recognize that there is still work to be done to fully integrate sustainable practices and improve circularity.

The polypropylene wrap removal for Vuse Alto Pod and Power Unit has been completed, and the updated packaging is available nationwide.

“We are continuously researching and developing innovative ways to simplify our packaging to lessen our material use. Where able, removing packaging materials that do not affect the product’s quality or adult consumer experience, is a great stride forward in minimizing ��������’s environmental impact,” said Michael Davis, Master Scientist, Materials Development with the �������� organization.

These packaging swaps support ��������’s circular economy strategy, which encompasses the organization’s commitment to simplifying packaging to improve recyclability, and to reduce the use of virgin materials and finite resources. RJRT’s foil-to-paper improvement additionally supports the organization’s goal of having 100% recycle-ready packaging by 2025.

Circular economy efforts continue.

Despite design advancements aimed at increasing the recyclability of packaging, infrastructure to recycle many technically recyclable materials remains largely unavailable. Addressing this gap is essential to fostering a circular economy with a self-sustaining ecosystem of materials.

Like many other consumer goods organizations, �������� faces ongoing challenges in sourcing and identifying food-grade alternative materials to achieve 100% recycle-ready packaging. In response, the organization recently hosted its inaugural Supplier Sustainability Summit at its largest manufacturing facility, the Reynolds Operations Center outside Winston-Salem, North Carolina. The two-day event brought together senior leaders and sustainability experts from top key suppliers, underscoring their essential role in �������� achieving its sustainability ambitions. By collaborating early and closely with suppliers, the �������� organization aims to leverage its expertise and capabilities in the development of additional innovative packaging solutions.

“�������� was really successful in bringing multiple suppliers from different areas together and the discussions were really fruitful,” said Diogo de Almeida, regional sales director at Amcor, a key packaging supplier to ��������. “We all have things that we can learn from �������� and hopefully collaborate towards achieving fantastic results in the future for the planet and for all of us.”

�������� portfolio products and packaging are subject to extensive regulation, which substantially limits product and packaging changes. All product and packaging changes are implemented in compliance with all applicable regulations.

Learn more about our packaging environmental sustainability initiatives by visiting our website at www.reynoldsamerican.com/product-stewardship/.

Reynolds supports adult nicotine consumer choice, sensible regulation, clear paths for innovation, and transparent collaboration in an effort to support the tobacco harm reduction movement and Build a Smokeless World.

“I support sensible regulation in the tobacco industry; regulation that is based on sound science, high quality standards, allows for responsible innovation, and prioritizes access to alternatives for adult smokers,” details Huckabee. “Sensible regulation also requires effective and swift enforcement, ensuring that stern penalties are in place to eliminate the entry of unlawful products, such as illicit disposable vapor products marketed at youth. Currently, illicit vapor products have saturated the U.S. market, undermining the legitimacy of vapor products which may help adult smokers migrate away from cigarettes.”

With more than one billion cigarette smokers worldwide, including almost 30 million adult smokers in the US, Reynolds believes significant change will require all stakeholders – from policymakers, regulators, and advocacy groups to the healthcare and scientific communities. Reynolds believes there is a better way, and we are committed to being part of the solution.

To read the article, visit the . For more information on Reynolds’ commitment to tobacco harm reduction, visit ReynoldsAmerican.com.

By focusing on Tobacco Harm Reduction, we are able to migrate adult cigarette smokers who do not wish to quit to potentially less harmful alternatives.

We know that sustained and lasting changes to adult consumer behavior offer the greatest hope for making cigarettes obsolete and we believe that providing viable alternatives to smoking is in the public interest.

Why? Because adult smokers should be given freedom over their decision to quit smoking or switch to potentially reduced risk nicotine alternatives. ��Alternatives to cigarettes, and the policies that enable adult consumers to access them, must be rooted in objective science, not politics.

For Tobacco Harm Reduction to work, it should be based on a foundation of evidence-based science, smarter regulation, better enforcement, and a collective commitment to shape a sustainable future for adult nicotine consumers.

This requires constructive debate and transparency that is inclusive of all stakeholders, ensuring the public health community, regulators, legislators, scientists, and industry all have a voice.

In an effort to increase evidence-based, transparent dialogue, we are pleased to publicly make available interim data from a 24-month longitudinal study we initiated.

For the convenience of researchers and regulators, a full presentation on the study can be found at .

The above excerpt was taken from a now available on . ��

Reflecting on my career, I realize that I’ve always been most energized when dealing with ambiguity, attempting to create clarity and a path forward in the face of uncertainty. When I decided to return to ��������, I did so because of the exceptional people who worked there and the unique opportunity to help shape the future of a company going through a massive transformation.��This was, in my estimation, the type of opportunity business school cases would one day be written about. Could a business that has been in operation for more than a century transform to lead it into the future? I believed it could and I wanted to be a part of that journey.

Over the past few years, I have learned a lot about myself as a leader and more importantly about the leader I need to be in a world of rapidly changing context. Transformation, for all its promise, is a thorny journey that requires leaders to guide teams through the bumps and bruises they encounter along the way. This reality challenges many of the old school beliefs about the role of a leader, and equally, the role of employees. While leaders play a vital role, they will only be effective in achieving sustainable outcomes if employees are empowered to act as change agents and co-pilots in driving the business.��This has been a defining realization for how I choose to lead.

Most employees are highly capable change agents when they 1) understand “why” the change is occurring, 2) are empowered to drive change within their teams and departments, and 3) take ownership of the required changes, not distancing themselves from the mission at hand. When these conditions exist, organizational magic is unleashed. Companies tap into their workforce’s creativity, energy, and expertise, resulting in a more agile and resilient culture.

So, how do leaders contribute to creating these conditions? I am sure many of you have read books on effective leadership, as have I. And while some fundamentals remain true, we are in an era of rapid change in which traditional leadership beliefs and hierarchies, many of which are rooted in command- and-control philosophies, are far less effective.

Today’s headlines reinforce how difficult it is for company leaders to keep pace with constant turbulence, from COVID and geopolitical conflicts to social issues and strained macroeconomic conditions. Making this more complex, employee expectations have changed, making many traditional practices and norms obsolete. Why do some leaders appear to be losing the plot? Are they unwilling or incapable of pivoting to build the emotive tissue that connects their employees to their organization’s purpose? HOW we lead is just as important as WHAT we are leading our organizations towards, especially in times of uncertainty.

Organizations focused on thriving, not merely surviving, are reassessing old paradigms to respond quickly to new challenges and opportunities. And, while hierarchy arguably is inherent, it should become less of an obstacle as teams collaborate more closely to achieve winning outcomes. This is not rocket science, but it does require��a high level of self-awareness and, dare I say, humility.

Some of my best leadership moments did not occur when I was charging the hill. Instead, they were the moments when I invited my team to the table to tackle problems head on and reassured them that I believed in them. Those were the shoulder-to-shoulder moments when I effectively led my team while working at their side.

Let me explain further.

My “side by side” leadership philosophy began taking shape when I left corporate to launch a start-up. Without the shield of deep resources and prolonged timelines, I learned the importance of communicating with my team early and often. When challenges emerged, which was often, I shared them transparently. More importantly, I asked for help and engaged in collective problem solving. I also provided quick feedback, sometimes delivering unpleasant news but always with positive intent. What I saw emerge was a culture where everyone had a shared sense of purpose, individual belief, and commitment to each other. For me, it was a lesson in achieving greater impact by building the right culture.

Despite society’s fascination with charismatic leaders, the fact is that no single leader, especially today, can effectively lead an organization alone. Collaboration, different points of view, and team problem-solving approaches are essential for progress. Leaders who work side by side aren’t afraid to be challenged; they encourage healthy debate and foster ownership of ideas and outcomes among the team of smart, capable individuals they’ve assembled.

We’ve read about leaders who believe that always being out in front of their employees equates to being visionary. Their arrogance fosters the impression that they are the most knowledgeable person in their company, a shepherd who must lead a flock. In a world of rapid change, when executives require help recognizing blind spots and cracks in the organization, hubris can be harmful. By leading too far ahead, these leaders risk falling into a “leaderless trap” in which they are so far ahead that they leave employees behind, becoming an unrelatable caricature. As a result, they lose touch with their organization’s current realities. Employees today value and respect leaders that are relatable and human, rather than rigid and arrogant.

Those who lead from behind are at the other extreme of the spectrum. Leading from behind, which is sometimes disguised as full empowerment or autonomy, risks giving employees the impression that their manager lacks interest, direction, or clarity. As a result, these leaders may push and prod employees to get them where they need to go. Micromanagement, a lack of actual empowerment, and a sense of aimlessness are all possible outcomes.

Today, we have the choice to lead alongside our teams, side by side. This style of leadership creates an environment in which leaders can successfully listen, coach, guide and develop an employee’s potential, resulting in increased impact. From this vantage point, they can easily deliver a pat on the back or a tough love nudge. When leaders work side by side, they foster a culture in which every member of their team is seen, felt, and heard.

Side by side leadership does not abdicate the leader’s accountability, nor should it create an unfettered democratic workplace that leads to stagnation. It is not “soft” leadership. Instead, it is a people-centric philosophy that asserts that the coexistence of competence, confidence and humility as leadership traits result in greater business outcomes.

My goal as a side by side leader is to walk alongside my team as we navigate change, providing direction, support, and course correction as needed. This approach recognizes that everyone brings value and that organizations can flourish in change by fostering a shared sense of purpose and ownership.

If you’d like to hear more about our company’s transformation, join me at reynoldsamerican.com/careers or follow me on LinkedIn for future blogs.

But what exactly do we mean by value-based leadership? How can we practice it and benefit from it on a day-to-day basis? And what role does it play in making organizations like ours a more valuable proposition – for customers, for shareholders, and critically for employees?

What is value-based leadership?

Google the term “value-based leadership,” and you’ll find a thousand different definitions. For me, the idea can be summed up in two key points. First, it’s about having a clear understanding of what you value as an organization. (What are our goals and objectives? What are we trying to achieve?) Second, it’s about understanding the value of each decision or action you take. (How effective will this be at getting us closer to our ultimate destination?)

I first encountered the idea of value-based leadership while serving in the military early on in my career. In the military, lives can depend on people working together in pursuit of a common goal. It’s critical that individuals have a clear understanding of the overall objective and are able to evaluate each action according to its potential value and cost.��

Exactly the same principles apply in civilian life and in business.��

In the professional world, having a common set of values helps organizations make decisions that align with their overall goals and objectives. When deciding how to meet a surge in demand, a company that values cost-effectiveness, for example, may choose to outsource rather than hire additional staff.��

In personal decision-making, understanding value can help individuals make choices that align with their life goals. People who know they value financial security will avoid risky, short-term opportunities and instead look for stable investments that will bring them greater satisfaction in the longer term.��

Understanding the “why”

If you want to be a successful practitioner of value-based leadership, the first and most important question you need to ask yourself is this: do my teams understand the “why” as well as the “what”? In other words, can they see how their tasks fit into the overall picture and are they aware of the larger problems they are helping to solve?

It is this focus on helping employees understand the “why” that makes value-based leadership so effective. When people know why they are doing what they are doing, they feel more invested and motivated in completing it. Tell your employees you are switching software providers and there will always be resistance. (“What’s the point in changing?” “Our current set-up works perfectly well.” “It’s just a waste of time and money.”) Explain upfront, however, that you’re switching because it will save the business millions of dollars, and people will be far more likely to get on board for the transformation journey – and more understanding, willing, and able to overcome any roadblocks they encounter along the way.

Understanding the “why” also helps to align each team’s efforts with the overall goals and mission of the organization. The people in our IT organization, for example, have to make choices every day about where to allocate time and resources. I want everybody on the team to understand the overall problems we are trying to solve and the benefits we bring to the business by solving them. That way, they will always choose to prioritize the biggest opportunities rather than spending time on things that don’t matter as much.

Making value-based leadership the norm

There are a number of steps we take at Reynolds that help to incorporate value-based leadership into our day-to-day business practices.

First, we make it a leadership behavior. In this way, leaders approach every choice in terms of potential value. (How does this align with our overall objectives? What are the benefits of doing it – and the risks if we don’t?) We also encourage everyone in the business to treat the money they spend as if it were their own. This, again, helps employees understand the value of their actions and makes them focus on getting the best possible return on investment.��

Second, we build it into our processes. For example, before any new project can start, it is evaluated against a set of value-based criteria. What are the benefits of solving this problem? What are the risks and what are the costs? This provides us with a simple one-pager that we can use to compare and prioritize potential projects according to their value.

Third, is to promote transparency wherever we can. If you want team members to make value-based decisions, then it’s important that they have access to as much organizational knowledge as possible. What projects is the business currently engaged in? Who owns each project and what are the associated costs? The more employees can see of the business, the more they can understand. And the more they understand, the more they can contribute.��

Better for the business, better for employees

I have seen value-based leadership benefit our business and our people in countless ways. Here are three of the biggest ones:

1. Harness collective intelligence

Your employees have enormous problem-solving potential. But if knowledge is siloed then much of that potential is lost. Help employees understand your goals and objectives, and give them access to as much organizational knowledge as possible, and you’ll ensure great ideas and solutions can come from anywhere.

2. Empower individuals

Above all else, I am a people-first leader at a people-first organization. Empowering people is paramount to success and value-based leadership goes hand-in-hand with that. The other day, I watched one of my Reynolds colleagues deliver a five-slide presentation about how he automated manually intensive processes. This colleague has only been with the organization for six months (as a member of our Global Graduate management trainee program). He’s not a technology industry veteran yet — in fact, he’s at the beginning of his career. So, how was he able to come up with such an effective solution? The answer is simple: he invested time and effort in understanding “why”. He asked questions that allowed him to identify the problem and see it in the wider business context. When you take a value-based approach, you turn everybody in the organization into a potentially expert problem-solver.��

3. Move forward faster

Value-based leadership streamlines decision-making for everyone. When team members have a good understanding of the “why”, they can make choices with greater confidence – and without having to go to 15 other people for approval. The result is fewer meetings and faster decisions at all levels, making it easier for the organization to move at speed.

Sign-off

I get to see the benefits of value-based leadership every day. I’m responsible for setting a clear vision, defining priorities, and removing roadblocks for my team. They are the experts and are empowered to come up with impactful solutions. And when I see them grow, gain recognition, and get promoted, I feel like a coach does seeing their team win the championship game.

If you’re interested in building a career in this kind of empowering, value-based environment, visit reynoldsamerican.com/careers

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