The Sustainability Awards honor companies, products, projects, and individuals proving that purpose-driven strategy can fuel growth. Winners are selected by a panel of business-leader judges who evaluate performance, innovation, and quantifiable outcomes.

Bernd was recognized for his leadership in opening the Reynolds WaterHub, championing employee-driven biodiversity initiatives, reducing total waste generated, optimizing the recycling of materials, and cutting direct emissions across operations, making a measurable impact both locally and globally.

To give an inside look at how the Operations team is leading in sustainability, we caught up with Bernd. In this Q&A, he shares key insights on sustainability solutions and initiatives underway at Reynolds:

Q: What are some of the key sustainability challenges you have sought to improve at the Reynolds Operations Center?

A: The Reynolds Operations Center (ROC), located in Forsyth County, North Carolina, is the largest factory within the global BAT Group, encompassing an impressive two million square feet for multi-category finished goods production on a nearly 615-acre campus. The significant size and scope of the campus amplify its environmental presence while presenting numerous challenges and opportunities.

One of the largest, most pressing challenges my team and I have tackled is water usage. The ROC is located in a water-stressed area and uses approximately 100 million gallons of water annually to support operations. With the implementation of the Reynolds WaterHub, we expect to recover 60 million gallons of water annually, reducing freshwater consumption from the grid while simultaneously increasing the amount of water recycled.

On our site, we are proactively addressing biodiversity and environmental degradation concerns to promote and support the conservation of native species.

We are also continuously looking for new ways to effectively segregate and responsibly dispose of waste at the ROC.

Additionally, we are confronting the challenge of greenhouse gas emissions from manufacturing and logistics with several large-scale and targeted initiatives like converting our fleet to EV or hybrid vehicles, introducing multi-modal logistics, e.g. moving more transport lanes to railway.

Q: Can you tell us about the Reynolds WaterHub and what makes it a unique approach to reducing water withdrawn?

A: When it came to reducing the amount of water withdrawn, Reynolds partnered with H2O Innovation to construct a state-of-the-art on-site water recycling facility, the Reynolds WaterHub, that has enabled the ROC to drastically reduce dependence on potable water and conserve water in Forsyth County.

One of a few water recycling projects of its scale, the WaterHub is designed to capture a combined wastewater stream from the plant, treat it to North Carolina reclaim water standards, and then reintroduce it for factory utilities, ultimately reducing the use of valuable drinking water. The WaterHub serves as a pilot project in the U.S.

The Reynolds WaterHub, which opened in April 2025, is an advanced water recycling facility and product of H2O Innovation, projected to reclaim more than 60 million gallons of water a year. With the WaterHub now operational, Reynolds expects to reduce water withdrawn at the ROC by more than 40%, which in turn is anticipated to reduce water withdrawn across the entire global BAT Group by approximately 6%, contributing to the global BAT Group���s goal of reducing water withdrawn by 35% across global operations by the end of 2025. All that to say, this initiative is on track to hit the target both locally in the U.S. and globally across the BAT Group.

Q: How have you supported employee-driven projects when it comes to biodiversity?

A: Supporting and building on employees��� ideas, Reynolds sponsored the planting of pollinator gardens and the installation of sustainable technologies at the Reynolds WaterHub site. The latest pollinator garden came to life when a group of employee volunteers planted 20+ species and over 400 native seedlings on-site in a bed designed by an employee ecologist to attract native pollinators, insects, and birds.

The garden is part of a two-year biodiversity plan that will include drone and acoustic monitoring, native meadow rehabilitation, native tree planting, bat house installations, and on-site industrial composting. We are also supporting tree planting projects together with our local leaf team with our farmer community.

Q: Can you share recent progress or initiatives the organization has made in waste reduction and recycling?

A: From construction waste to manufacturing waste, our Operations team is optimizing the recycling of materials and reducing waste to landfill.

Last year, the organization increased its recycling rate of total waste generated to 84%, reduced its total percentage of waste generated by 41%, and sent only 1.4% of waste from direct operations to the landfill.

We continue to invest time and resources into initiatives to advance circularity. Recently, we installed an aerobic digestor for composting organic materials at the ROC and continue to map waste streams for future waste diversion improvements.

Q: What are some examples of sustainable initiatives the organization has adopted to reduce emissions?

A: We have seen a 46% reduction in Scope 1 & 2 (direct) emissions compared to the 2020 baseline and are well on track to achieve our 50% reduction target by 2030. Besides all the quick wins, like LED lighting for all facilities and increasing efficiencies of boilers and conditioning equipment, some of the major projects include consolidating several production sites into fewer, more efficient multi-category plants to eliminate approximately 100,000 semi-finished product transport truck miles and transitioning the organization���s national sales fleet to hybrid and electric vehicles. Nearly 95% of cars were converted over the past year.

Electric trucks at the ROC have also replaced the use of propane-fueled forklifts on site and almost 100% of our forklifts have been converted to electrical forklifts. We also intend to move to electrical trucks for short distances transport within our Supply Chain. Our Supply Chain has also been re-designed to reduce number of storage locations and our logistics network to avoid unnecessary warehousing and transport lanes.

The WaterHub簧 is an advanced water recycling facility and product of H2O Innovation projected to reclaim more than 60 million gallons of water a year���equivalent to the annual water supply of approximately ���reducing Reynolds��� environmental impact and advancing the global BAT Group���s sustainability ambitions. Utilizing the latest technology, it captures a combined wastewater stream from the plant, treats it to North Carolina reclaim water standards, and then reintroduces it as intake water for the factory utilities���reducing the intake of fresh, valuable drinking water at the facility.

���Today marks a significant milestone in Reynolds��� sustainability journey and demonstrates our long-term commitment to environmental stewardship,��� said Bernd Meyer, executive vice president of operations at the Reynolds organization. ���With the WaterHub now operational, we expect to reduce water withdrawn at the Reynolds Operations Center by more than 40%, which in turn is anticipated to reduce water withdrawn across the global BAT Group by approximately 6%.���

The WaterHub is a lighthouse project in the global BAT Group, significantly advancing the the global Group���s sustainability agenda through its scale and impact. Through the WaterHub, Reynolds is contributing to the global BAT Group���s goal of reducing water withdrawn by 35% across global operations.

One of the few projects of its size in the United States using advanced water reclamation technologies, the WaterHub enables Reynolds��� operating facilities to reduce dependence on potable water for factory utility operations, conserving water in Forsyth County���s Yadkin-Pee Dee River Basin.

���The WaterHub is a prime example of how innovation can advance both sustainability and resilience,��� said Guillaume Clairet, chief operations officer at H2O Innovation. ���By supporting partners like Reynolds in conserving water and achieving their environmental goals, we���re proud to play a role in their journey toward water positivity.���

The surrounding WaterHub site will serve as a sustainability showcase for the organization and include a 1300 square foot native garden with over 400 plants of 24 different species to promote biodiversity and multiple sustainable technology installations.

Reynolds received a SEAL Business Sustainability Award in the Environmental Initiatives category for the WaterHub project and was recently recognized with an Award of Excellence by Winston-Salem/Forsyth County Utilities for its Industrial Waste Pretreatment Program for 2024. The Reynolds Operations Center also maintains Alliance for Water Stewardship certification, a globally applicable framework for sustainable water management to better understand water use and impacts.

For additional information on Reynolds��� water stewardship efforts and commitment to sustainability, read the 2024 做厙輦⑹ Sustainability Summary. To learn more about the WaterHub, visit .

Photos and video footage are available for download in our media gallery. Photos are linked and videography , using the password: WATERHUB (case sensitive).

However, it is more than a fundraiser, it is a joyous occasion for employees to come together for fun, while also helping the community.泭

On February 28, 32 teams from the 做厙輦⑹ organization gathered at Bowlero Lanes in Winston-Salem, NC. During the afternoon, everyone enjoyed strikes and spares while tossing beads, dancing to the DJ, and engaging with BBBS teams and volunteers.泭

The event marked the culmination of weeks of fundraising to support the great work of the BBBS organization.

About BBBS泭

The presence of a positive role model makes a major difference in the lives of youth and encourages better behavior, academic performance, and confidence among other things.泭泭

Big Brothers Big Sisters provides supportive one-to-one mentoring relationships and directly impacts school-based mentorship programs to ensure that children in Forsyth and Davie Counties achieve the best outcomes in life.

Big Brothers Big Sisters’ mission is to create and support one-to-one mentoring relationships that ignite the power and promise of youth. Fundraising from this event contributes to:������泭

• Recruiting Big Brothers and Big Sisters.泭

• Covering the cost of professional youth development training for mentors and parents.泭

• Enabling professional match supervision support throughout the life of the match.泭

• Providing cultural and social activities to enrich the opportunities for students.泭

• Specialized programming and activities for unmatched littles on the waiting list.泭

Employee Volunteerism泭

Connecting with and contributing to our communities is a tradition and point of pride at the 做厙輦⑹ organization. Generously devoting time, talent and resources, our companies and employees are on a mission to improve lives and shape the communities where we live and work. All regular, full-time employees receive up to two days a year to volunteer during regular working hours. These partial or full days can be taken to volunteer at a nonprofit, local school, or organization event.泭

Happy Dirt is a North Carolina-based nonprofit that aggregates, distributes, and markets organic produce raised by NC farmers, many of whom are or formerly were tobacco farmers or live in tobacco-dependent communities. The organization currently supports over 50 farmers in locations including Oxford, Rose Hill, Bailey, and Burlington by working to create distribution opportunities for them to expand their product offerings and scale up into wholesale markets.

Second Harvest is committed to working with community partners to create healthy and food secure communities including through connecting local farms with food pantries to expand use of fresh, local produce to pantry patrons by purchasing produce at market rate from small-scale farmers ��� both spurring economic activity and investing in healthier communities.

做厙輦⑹ Inc. and the 做厙輦⑹ Foundation donated two $100,000 gifts respectively to Second Harvest. The first gift will enable Second Harvest to partner with Happy Dirt. The second will directly fund the food bank���s Farm Fresh Nourish program, an initiative that sources fresh produce in the region and distributes it to partner agencies. This unique collaboration will significantly enhance the availability of fresh, healthy produce for families across the food bank���s 18-county service area, supporting both families experiencing food insecurity and NC farmers.

Additionally, this partnership���s focus on farmer livelihood will allow growers to diversify and expand production, buffer and extend their growing season, and significantly improve the sustainability of their farms, both economically and environmentally.

���The 做厙輦⑹ organization is proud to collaborate with Second Harvest Food Bank and Happy Dirt to strengthen farmer livelihoods, advance environmental sustainability through organic produce farming and distribution, and deliver healthy, nutritious meals to food insecure households in need,��� said Kara Calderon, Senior Director, Sustainability and Community Engagement within the 做厙輦⑹ organization. ���This collaboration reflects our commitment to Thriving Communities by delivering meaningful change by connecting People, Planet, and Prosperity.���

Next year will mark the 150^th year anniversary of R.J. Reynolds Tobacco Company, and a key part of the Reynolds organization���s long history includes supporting the communities where we live and work. This collaboration is a perfect example of our community commitment and shows how we are continuing to make a positive impact as our business evolves.

We look forward to seeing the success of this collaboration in the months ahead.

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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做厙輦⑹���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 做厙輦⑹

At a Glance

• A packaging change by R.J. Reynolds Tobacco Co. was key to parent 做厙輦⑹ topping 90% recycle-ready packaging.
• 做厙輦⑹���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.

做厙輦⑹ 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 做厙輦⑹ 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 做厙輦⑹ 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 做厙輦⑹ 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 做厙輦⑹���s environmental impact,��� said Michael Davis, Master Scientist, Materials Development with the 做厙輦⑹ organization.

These packaging swaps support 做厙輦⑹���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, 做厙輦⑹ 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 做厙輦⑹ achieving its sustainability ambitions. By collaborating early and closely with suppliers, the 做厙輦⑹ organization aims to leverage its expertise and capabilities in the development of additional innovative packaging solutions.

���做厙輦⑹ 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 做厙輦⑹. ���We all have things that we can learn from 做厙輦⑹ and hopefully collaborate towards achieving fantastic results in the future for the planet and for all of us.���

做厙輦⑹ 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/.

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Many individuals and families face homelessness and food insecurity. Our Trade Marketing Senior Leadership Team partnered with Samaritan Ministries to provide hope and essential items for those in need. Approximately 80 employees packed 200 toiletry kits to be passed out to those seeking assistance at Samaritan Ministries.泭

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Many individuals and families face homelessness and food insecurity. For some, these are chronic issues suffered over the years; for others, they are temporary setbacks due to unexpected challenges. Unfortunately, these populations continue to grow and present major social issues for many communities.���泭

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Hygiene Kit Assembly

Our Trade Marketing Senior Leadership Team partnered with Samaritan Ministries to provide hope and essential items for those in need. After a busy day of meetings and workshops, approximately 80 employees packed 200 toiletry kits to be passed out to those seeking assistance at Samaritan Ministries.泭

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The toiletry kits assembled by the Trade Marketing Senior Leadership Team will provide 100 men and 100 women with highly needed items including toothbrushes, soap, ChapSticks, insect repellent, feminine products, and other items.泭

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“We���re grateful to the 做厙輦⑹ organization���s team for assembling hygiene bags with basic need items like soap, deodorant, and hand sanitizer. For someone who has hit rock bottom, this simple act of kindness helps bring comfort and builds trust as they seek shelter and nourishment to survive. Your support is vital to our mission of providing food, shelter, and hope.” – Jan Kelly, executive director of Samaritan Ministries泭

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The Impact

Since 1981, Samaritan Ministries has served the Winston-Salem community as an interdenominational, volunteer-based nonprofit. It is the only soup kitchen in the county and serves as a homeless shelter for men. The organization also manages Project Cornerstone, which is a long-term residential recovery program for men battling addiction and homelessness.泭泭

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Samaritan Ministries is open 365 days and nights a year. About 300 men, women, and children are served daily in the Soup Kitchen, while up to 70 are housed each night in the shelter. In 2023, the organization served 101,603 meals and offered 13,285 nights of shelter to the homeless. In fact, Samaritan Ministries recently celebrated serving its 5 millionth meal in the soup kitchen.

Connecting with and contributing to our communities is a tradition and point of pride at the 做厙輦⑹ organization. Generously devoting time, talent and resources, our companies and employees are on a mission to improve lives and shape the communities where we live and work. All regular, full-time employees receive up to two days a year to volunteer during regular working hours. These partial or full days can be taken to volunteer at a nonprofit, local school, or organization event.

Agricultural supply chains are particularly vulnerable to a range of challenges, including climate change and water scarcity, increasing demand for land and natural resources, rural poverty, social inequality, child labor and ageing farmer populations. Tobacco is no exception.泭

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“As a business, we are invested in the sustainability of our tobacco growing communities. We take steps to certify that farming practices align with our environmental goals and that working conditions are independently audited. Additionally, all our U.S. farmers grow diverse crops, increasing resilience and supporting prosperous livelihoods.��� – Chris Dixon, Vice President of Leaf Operations within the 做厙輦⑹ organization泭

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Our Long-Standing Commitment to Human Rights

The 做厙輦⑹ organization respects human rights and deliver a positive social impact in the communities in which we operate. By taking a holistic approach to enhancing their lives and tackling human rights risks, we can help secure the long-term sustainability of rural communities.泭

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Fundamental human rights are affirmed by the Universal Declaration of Human Rights, and our commitment to respect those fundamental rights are set out in the global BAT Group���s Standards of Business Conduct and Supplier Code of Conduct, which we independently adopted,泭 including the rights of employees within the 做厙輦⑹ organization, the people we work with, and the communities in which we operate across our supply chains and business operations. All our leaf suppliers are expected to participate in the industry���s Sustainable Tobacco Program, which requires an annual self-assessment against priority themes, including human rights.���泭

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Thrive Assessments

Launched in 2016 by the global BAT Group, Thrive Assessments are part of a sustainable agriculture and farmer livelihoods program, which includes all global BAT Group-owned and strategic third-party suppliers worldwide. For over eight years, , our sustainable agriculture and farmer livelihoods program focused on farming communities has been implemented. Thrive aims to assess that all our contracted farmers have a viable livelihood, promote farming to be seen as a preferred profession, particularly for rural youth, and within farming, demonstrate that tobacco is a valuable crop to grow.泭

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GAP Connections

The GAP Connections farmer certification program helps produce quality crops while protecting, sustaining, or enhancing the environment; ensuring the safety and rights of farm laborers; and recognizing producers committed to a higher standard.泭泭

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Supporting Farmer Housing

Since 2006, we have been helping support the need for decent, safe, sanitary, and affordable housing for agricultural workers. In 2023, we provided $50,000 to Southeast Nonprofit Housing for its On-Farm Housing Program. The program provides incentives for growers to build new, better housing and is proven to increase both health and productivity.泭

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To learn more about what the global BAT Group does to support Farmer Livelihoods worldwide, visit .泭

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Forward-looking Statements:泭

This document may contain certain forward-looking statements, including “forward-looking” statements made within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as ���believe���, ���anticipate���, ���could���, ���may���, ���would���, ���should���, ���intend���, ���plan���, ���potential���, ���predict���, ���will���, ���expect���, ���estimate���, ���project���, ���positioned���, ���strategy���, ���outlook���, ���target��� and similar expressions. These include statements regarding our ESG targets.

All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed that the expectations reflected in this document are reasonable, but they may be affected by a wide range of variables that could cause actual results and performance to differ materially from those currently anticipated. A review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found by referring to the information contained under the headings ���Cautionary Statement��� and ���Group Principal Risks��� in the 2023 Annual Report and Form 20-F of British American Tobacco p.l.c. (BAT).

Additional information concerning these and other factors can be found in BAT’s filings with the U.S. Securities and Exchange Commission (���SEC���), including the Annual Report on Form 20-F and Current Reports on Form 6-K, which may be obtained free of charge at the SEC’s website, https://www.sec.gov/ and BAT’s Annual Reports, which may be obtained free of charge from the BAT website .

The forward-looking statements reflect knowledge and information available at the date of preparation of this website and we undertake no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.泭

The 做厙輦⑹ organization���s approach to mitigating and adapting to climate change is shaped by our climate strategy and backed by our sustainability targets. Across our value chain, we aim to reduce our carbon emissions, including cutting our Scope 1, Scope 2, and Scope 3 greenhouse gas (GHG) emissions by 50% by 2030, which is central to achieving Net Zero GHG emissions across our value chain by 2050 at the latest.泭

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“Being responsible and excellent environmental stewards is a central part of our sustainability strategy. We are focused on continuing to make progress reducing greenhouse gas emissions in our own operations and value chain, pushing ourselves to meet our targets, while also aiming to make a positive impact across our end-to-end supply chain.��� – Bernd Meyer, Executive Vice President of Operations within the 做厙輦⑹ organization泭

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Energy Monitoring

The 做厙輦⑹ organization adopted the global to provide guidance and consistency for our approach to decarbonization and its implementation across our operations. We use site-specific decarbonization plans for our operations facilities and invest in energy efficiency projects and management systems.泭

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Through energy monitoring, we can identify any abnormal equipment processes and in turn minimize wasted energy. Installing energy meters helped reduce Scope 1 and Scope 2 emissions by nearly 35% by the end of 2023 compared to our 2020 baseline.泭

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Prioritizing Energy Efficiency

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To manage our energy efficiency across operations sites, we are independently implementing the global BAT Group���s 10 Golden Rules for manufacturing sites and conduct regular assessments, including actions such as powering down unused equipment and implementing leak detection and repair programs. Compressed air leaks impact energy consumption and costs and can lead the system to overload and reduce its lifespan. Reduction of compressed air leaks is part of our continuous improvement process.泭

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Upgrading the air conditioning system, switching to LED lighting, and installing occupancy sensors at our largest operations site reduced our Scope 2 GHG emissions by approximately 1,000 tons.泭

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Increasing Renewable Energy Use

By the end of 2023, we sourced 41% of our power from renewable energy sources as part of our goal to reduce our Scope 1 and 2 GHG emissions. Our factories continued to purchase 100% renewable electricity, which equals the annual electricity consumption of nearly 20,000 U.S. households¹.���泭

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Minimizing Emissions in Transportation

Transportation is key to our business, but it also contributes to carbon emissions and the effects of climate change. To mitigate these impacts, we implemented multimodal transport methods. Since May 2023, we have used trains ��� rather than higher-carbon transport ��� to move stock from our North Carolina Main Distribution Center to regional distribution centers in California and Washington. Since this project launched, we have reduced approximately 550 metric tons of CO2e from our Scope 3 emissions, and we are continuing to expand the initiative into additional U.S. regions.���泭

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Footnotes:泭

¹ According to the U.S. Energy Information Administration, the average U.S. household consumes 11,000 kilowatt hours (kWh) per year泭

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Forward-looking Statements:泭

This document may contain certain forward-looking statements, including “forward-looking” statements made within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as ���believe���, ���anticipate���, ���could���, ���may���, ���would���, ���should���, ���intend���, ���plan���, ���potential���, ���predict���, ���will���, ���expect���, ���estimate���, ���project���, ���positioned���, ���strategy���, ���outlook���, ���target��� and similar expressions. These include statements regarding our ESG targets.

All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed that the expectations reflected in this document are reasonable, but they may be affected by a wide range of variables that could cause actual results and performance to differ materially from those currently anticipated. A review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found by referring to the information contained under the headings ���Cautionary Statement��� and ���Group Principal Risks��� in the 2023 Annual Report and Form 20-F of British American Tobacco p.l.c. (BAT).

Additional information concerning these and other factors can be found in BAT’s filings with the U.S. Securities and Exchange Commission (���SEC���), including the Annual Report on Form 20-F and Current Reports on Form 6-K, which may be obtained free of charge at the SEC’s website, https://www.sec.gov/ and BAT’s Annual Reports, which may be obtained free of charge from the BAT website .

The forward-looking statements reflect knowledge and information available at the date of preparation of this website and we undertake no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.泭

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Adult Consumer Behavior

Butt litter is a complex topic which requires the participation of all stakeholders to help drive change. We are committed to working with adult consumers to enhance their understanding of the impact of butt littering and encourage responsible disposal.泭泭

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Cigarette butt littering is an adult consumer behavior. Research shows that adult consumer education and awareness-raising initiatives are likely to be some of the most successful measures. At the 做厙輦⑹ organization, we support a number of such initiatives and education campaigns. We are educating adult consumers on proper waste disposal and recycling through product labeling on 95% of packs in our cigarette product portfolio.泭

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Santa Fe Natural Tobacco Company, an operating subsidiary of the 做厙輦⑹ organization, has distributed butt pouches since 2017 to encourage adult consumer collection of butts. In 2022, retail butt pouches were distributed to 27,000 outlets to promote adult consumer collection and responsible disposal of butts.泭

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Butt Collection and Recycling Partnerships

Our partners, and , are providing adult Keep America Beautiful volunteers across the country the opportunity to collect cigarette butts and send them to TerraCycle, where they are combined with other materials to make useful, Earth-friendly items such as lumber, furniture, containers and more. This is one example of how by working together we can give cigarette butt waste a new life and turn it into something useful again.泭泭

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Keep America Beautiful���s Cigarette Litter Prevention Program

The partnership between the 做厙輦⑹ organization and Keep America Beautiful stretches back to the 1980s. With the 做厙輦⑹ organization���s acquisition of Santa Fe Natural Tobacco Company in 2002, the partnership strengthened significantly.泭

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Since 2012, Santa Fe Natural Tobacco Company has contributed over $3.7 million in partnership with Keep America Beautiful, which operates the nation���s largest program aimed at eliminating cigarette litter and whose program returns an average of $100 million in measurable benefits annually across 20,000 communities.泭

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We have been a longtime sponsor��� since 2010 ���of Keep America Beautiful���s , among other sustainability-focused programs related to reducing the environmental impact of our products.泭泭

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The 做厙輦⑹ organization���s goals for partnering with Keep America Beautiful are twofold:泭泭

• To promote responsible waste management practices and encourage individuals to take action to protect the environment and preserve it for future generations; and泭泭

• To demonstrate the 做厙輦⑹ organization���s sustainability practices, which are a strategic business priority for our long-term success.泭

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Through Keep America Beautiful, the 做厙輦⑹ organization supports the Cigarette Litter Prevention Program by providing monetary donations to Keep America Beautiful���s affiliates across the country, allowing them to engage in litter prevention activities, including providing receptacle ashtrays, distributing pocket ashtrays, and conducting cigarette litter clean-ups.泭泭

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Adult consumer awareness about cigarette litter is growing even more quickly than the cigarette smoking rate is declining in the U.S.> Keep America Beautiful reported a nearly 70 percent decrease in cigarette butt litter from 2009 to 2020¹.

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Public awareness-raising initiatives are an effective way of tackling the issue, and we are committed to continuing our efforts in this area. The 做厙輦⑹ organization and Santa Fe Natural Tobacco Company donations directly fund the Cigarette Litter Prevention Program. The Cigarette Litter Prevention Program is designed to empower community mindset change on proper butt disposal through education and receptacle points. Butts are sent to TerraCycle for recycling.泭

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Communities that have implemented a Cigarette Litter Prevention Program consistently reduce cigarette litter by half based on local measurements taken in the first four to six months after the program is implemented. Through proper disposal, the program aims to educate adult consumers and inspire actions that keep cigarette butts off the ground.泭

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We value working with Keep America Beautiful because the organization helps us to address an important issue with effective and scalable solutions.泭

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Terracycle���s Butt Recycling

Since 2009, the 做厙輦⑹ organization has invested��痂ore than $12.5 million��疳n cigarette litter education, prevention, cleanup, and recycling through Keep America Beautiful and TerraCycle.泭

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TerraCycle is a company focused on reducing waste and dealing with hard-to-recycle materials, such as cigarette butts. The Santa Fe Natural Tobacco Company, an operating subsidiary of the 做厙輦⑹ organization, has partnered with TerraCycle since 2012 on the Cigarette Waste Recycling Program, which provides adult volunteers across the country the opportunity to collect cigarette butts and send them to TerraCycle, where they are combined with other recyclable materials to make useful, Earth-friendly items such as lumber, furniture, containers and more.泭

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TerraCycle uses a start-with-waste model. Butts have been identified as difficult to recycle material in the Waste Stream. They���ve developed material expertise, understood the material properties, and identified the deconstruction and potential reuse options. TerraCycle utilizes their network of financial partners, processors, manufacturers, and vendors to form partnerships that will execute a through-the-line process that recycles butts into new items.泭

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Material processors take in raw inputs (post-industrial & post-consumer) of cigarette waste for the purpose of processing to meet TerraCycle���s needs. For cigarette butts, this includes extracting the Cellulose Acetate material from the cigarette waste, then processing to a usable format for TerraCycle���s end user base. Residual organic components such as ash, tobacco and paper are separated and composted.泭

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To make the best of the cigarette waste, the 做厙輦⑹ organization and Keep America Beautiful continue to collaborate with TerraCycle to keep that litter out of landfills and to recycle it into fertilizers and usable items like park benches.泭

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Employee Cleanups

The 做厙輦⑹ organization���s employees volunteer with Keep Winston-Salem Beautiful, a local affiliate of Keep America Beautiful. The 做厙輦⑹ organization has adopted three locations in Winston-Salem���a street, a park, and a stream���and works with Keep Winston-Salem Beautiful to conduct clean-ups and beautification activities.泭

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We���re doing our part to inspire action and instill a deeper sense of care for the community that surrounds us. Working through our three adopted sites as part of the Keep Winston-Salem Beautiful program, our employees host at least four clean ups per year in each location. The goal of this work is to motivate others to join the 做厙輦⑹ organization���s all-hands-on-deck approach towards environmental and responsible disposal across our operations.泭

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Located at Salem Creek Greenway, Mill Creek, and Reynolds Blvd, employees are invited to join the cause and take full advantage of our volunteerism benefit…which offers each employee two full days to donate their time during working hours every year.泭

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���Environmental preservation programs allow employees within the 做厙輦⑹ organization from a variety of functions to gather for the common goal of improving our community���s ecological health and appearance, all while having a great time!��� – Chrissy Sherrill, Lead Manager of Regulatory Process & Submissions PMO within the 做厙輦⑹ organization泭

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Footnotes:泭

¹ Keep America Beautiful 2020 National Litter Study.泭

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Forward-looking Statements:泭

This document may contain certain forward-looking statements, including “forward-looking” statements made within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as ���believe���, ���anticipate���, ���could���, ���may���, ���would���, ���should���, ���intend���, ���plan���, ���potential���, ���predict���, ���will���, ���expect���, ���estimate���, ���project���, ���positioned���, ���strategy���, ���outlook���, ���target��� and similar expressions. These include statements regarding our ESG targets.

All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed that the expectations reflected in this document are reasonable, but they may be affected by a wide range of variables that could cause actual results and performance to differ materially from those currently anticipated. A review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found by referring to the information contained under the headings ���Cautionary Statement��� and ���Group Principal Risks��� in the 2023 Annual Report and Form 20-F of British American Tobacco p.l.c. (BAT).

Additional information concerning these and other factors can be found in BAT’s filings with the U.S. Securities and Exchange Commission (���SEC���), including the Annual Report on Form 20-F and Current Reports on Form 6-K, which may be obtained free of charge at the SEC’s website, https://www.sec.gov/ and BAT’s Annual Reports, which may be obtained free of charge from the BAT website .

The forward-looking statements reflect knowledge and information available at the date of preparation of this website and we undertake no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.泭

The 做厙輦⑹ organization���s approach to agriculture and working with farmers��疳s designed to mitigate and reduce environmental impacts. We continue to develop, advance, and implement tools and initiatives that preserve our natural resources and environments, enhance rural livelihoods, and increase resilience to climate change.泭

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We���ve adopted the global BAT Group Biodiversity Operational Standard to our direct leaf operations as well as providing guidance to third party leaf suppliers by outlining policies under which we aim to protect biodiversity and explaining how to adhere to the principles of sustainable development, covering agricultural, manufacturing, and distribution operations. It is largely focused on avoiding, minimizing, and mitigating our impact on ecosystems. This standard applies to our use of wood as fuel for tobacco curing, new farmland development by tobacco farmers and leaf suppliers, and tobacco farming and its associated agricultural practices.泭

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Our is designed to mitigate and reduce environmental impacts. While the industry-wide���helps to maintain high environmental, social and agronomy standards in our tobacco leaf supply chain on a day-to-day basis, many of the challenges impacting upon the livelihoods of泭 farmers and sustainability of agriculture require a long-term, holistic approach.泭泭

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Good Agricultural Practices

Many of the challenges impacting the livelihoods of our farmers and sustainability of agriculture are aided by additional certifications. The farmer certification program helps produce quality crops while protecting, sustaining, or enhancing the environment; ensuring the safety and rights of farm laborers; and recognizing producers committed to a higher standard.泭泭

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Preserving Natural Resources

Through our operations and use of ecosystems services such as forest products, soil, and water, we directly impact those ecosystems and communities and must continually work to manage our impact.泭

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At the 做厙輦⑹ organization, we���ve adopted the global BAT Group���s to our direct leaf operations and are providing guidance to third party leaf suppliers by outlining policies under which we aim to protect biodiversity and explaining how to adhere to the principles of sustainable development covering agricultural, manufacturing, and distribution operations.泭泭

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We are largely focused on avoiding, minimizing, and mitigating our impact on ecosystems. This standard applies to our use of wood as fuel for tobacco curing, new farmland development by tobacco farmers and leaf suppliers, and tobacco farming and its associated agricultural practices.泭

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Sourcing Sustainable Wood

Our goal is to eliminate the use of unsustainable wood sources by our contracted farmers.泭泭

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Our afforestation programs encourage tree planting to provide a sustainable source of wood for farmers who require it for tobacco curing. The global BAT Group also wants to eliminate any potential risk of forests being cleared to create farmland to grow tobacco. Aligned to the global BAT Group, the 做厙輦⑹ organization participates in the��特ustainable Tobacco Programme. This requires that before any expansion of farming on new land, all contracted farmers conduct a detailed environmental and regulatory evaluation. This process should factor in local legislation and the presence of rare or endangered species.泭

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We are also encouraging some of our contracted farmers to cure their tobacco with appropriate, locally available alternative fuels. All fuels have environmental impacts, so we are also evaluating ways to minimize fuel consumption, for example by using innovative designs for curing barns.泭

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Soil Conservation

Our approach to soil conservation and improvement involves testing and adapting available technology for each area to help reach the best solutions, depending on local soil conditions, climate and topography.泭

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There are various ways to improve soil fertility and create the best growing conditions, while avoiding soil loss or deterioration. The techniques the 做厙輦⑹ organization promotes include minimum tillage, a method that minimizes turning or disruption of the soil; relay cropping, where two or more crops are grown in sequence; and the use of plant-based green manure.泭

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The farmers we work with already have highly diversified farms, with 100% of our U.S. growers growing other crops alongside, or in rotation with, tobacco. We���ve always encouraged this crop diversification ��� it not only increases farmers��� resilience by not relying on just one crop but also helps to enhance food security and to preserve soil health.泭泭

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We are also introducing farmers to techniques such as contour planting, which lessens the effect of water run-off and requires less tilling. Our expert field technicians provide farmers with technical assistance on areas such as sustainable soil, water, biodiversity, forest, and pest management. The benefits of this can be seen in agrochemical usage, which is generally significantly lower in tobacco growing than other comparable crops.泭

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Organic Farming

In 2023, we had 46 organic contract growers, sourcing from over 1,300 acres of organic farmland.泭泭

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Santa Fe Natural Tobacco Company, an operating subsidiary of the 做厙輦⑹ organization, has sourced organically grown tobacco since before the national organic certification standards were established by the USDA in 2002. Its contracted organic growers are inspected and recertified annually and rotate crops with other organic produce to support business year over year.泭

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Organic farming offers several benefits that contribute to a better environment. This can include reduced pollution as organic farming practices minimize the use of synthetic pesticides and fertilizers, which helps reduce water and soil pollution. It can also reduce water requirements, promote healthy soil, and support biodiversity. Organic farms tend to support diverse ecosystems, including beneficial insects, birds, and soil organisms.

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Conclusion

Our business depends on and impacts biodiversity at a local and national level. Through our operation companies and their use of ecosystems services such as forest products, soil, and water, we directly impact those ecosystems and communities and must continually work to manage our impact.泭泭

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Forward-looking Statements:泭

This document may contain certain forward-looking statements, including “forward-looking” statements made within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as ���believe���, ���anticipate���, ���could���, ���may���, ���would���, ���should���, ���intend���, ���plan���, ���potential���, ���predict���, ���will���, ���expect���, ���estimate���, ���project���, ���positioned���, ���strategy���, ���outlook���, ���target��� and similar expressions. These include statements regarding our ESG targets.

All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed that the expectations reflected in this document are reasonable, but they may be affected by a wide range of variables that could cause actual results and performance to differ materially from those currently anticipated. A review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found by referring to the information contained under the headings ���Cautionary Statement��� and ���Group Principal Risks��� in the 2023 Annual Report and Form 20-F of British American Tobacco p.l.c. (BAT).

Additional information concerning these and other factors can be found in BAT’s filings with the U.S. Securities and Exchange Commission (���SEC���), including the Annual Report on Form 20-F and Current Reports on Form 6-K, which may be obtained free of charge at the SEC’s website, https://www.sec.gov/ and BAT’s Annual Reports, which may be obtained free of charge from the BAT website .

The forward-looking statements reflect knowledge and information available at the date of preparation of this website and we undertake no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.泭