Top 25 Corporations Demonstrating Best Practices in ESG 2024

BAT’s commitment to Building A Better Tomorrow is supported by its Environment, Social, and Governance (ESG) priorities. The company aims to excel in environmental management, create a positive social impact, and maintain robust corporate governance throughout its operations.

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BAT

Established in 1907, BAT stands as a top-ranking local and global multi-category consumer goods business. With a rich history spanning over a century, the company has consistently demonstrated its resilience and enduring presence in the market. BAT has been listed on the Nairobi Securities Exchange (NSE) since 1969, solidifying its status as a key player in the business landscape.

Recognising its impact and the significance of maintaining high standards of integrity, along with evolving societal responsibilities, BAT has embarked on a transformative journey dedicated to the pursuit of Building A Better Tomorrow for all stakeholders, encompassing consumers, employees, society, and shareholders. While sustainability has been integral to BAT for decades, the company has been on a trajectory to elevate its focus, placing sustainability at the forefront of all endeavours.

BAT’s commitment to Building A Better Tomorrow is supported by its Environment, Social, and Governance (ESG) priorities. The company aims to excel in environmental management, create a positive social impact, and maintain robust corporate governance throughout its operations. BAT’s ambition is further reinforced by a comprehensive sustainability agenda aligned with relevant United Nations’ Sustainable Development Goals (UN SDGs). This agenda delineates precise, measurable targets that are regularly monitored, with oversight at both senior management and board levels.

Demonstrating a steadfast commitment to environmental protection, BAT implements a diverse range of integrated sustainability initiatives within its operations. Actively engaging with local recyclers, the company’s recycling efforts have led to the notable achievement of zero waste sent to landfills. Additionally, BAT is a proactive supporter of the government’s Greening Kenya initiative, aligning its practices with national environmental goals.

As part of its afforestation program, KIJANI, BAT sets an annual target to plant a minimum of 2 million trees. Collaborating with various stakeholders, including farmers within the community, the company has successfully overseen the planting of over 54 million surviving trees in Kenya since 1978. Managing comprehensive carbon emission and sequestration programs, BAT actively contributes to the creation of carbon sinks through afforestation.

In the realm of renewable energy, BAT has invested significantly, allocating approximately KES 145 million to solar energy initiatives. This investment has played a pivotal role in achieving a substantial 33 percent reduction in scope 1 and 2 carbon emissions compared to the 2020 baseline, complementing other concerted efforts.

Our commitment to building a sustainable business is unwavering, it includes reducing our carbon footprint, improving water stewardship, promoting farmer livelihoods, encouraging diversity and inclusion, and boosting health and safety.

Board Chair Rita Kavashe

In its commitment to both environmental and social responsibility, BAT remains acutely aware of the global imperative for water stewardship. The company aligns its practices with this critical aspect, recognising the importance of responsible water management. In addition to its corporate efforts, BAT extends its impact to the wider community through various initiatives such as facilitating access to clean water and actively participating in community clean-ups.

In a stride towards holistic impact, BAT continuously strives to broaden its social and environmental footprint. For instance, in 2022, the corporation issued 15 tonnes of certified maize seeds to contracted farmers. This initiative not only stimulated crop diversification but also played a crucial role in making a contribution to enhancing food security.

BAT Kenya employees celebrate the company’s recognition as a top employer in Kenya and Africa for a sixth time in a row.

BAT’s dedication to the ‘S’ of ESG is further underscored by its commitment to mitigating the health impact of its business. The company asserts that the primary means of avoiding health risks associated with smoking lies in abstaining from initiation or quitting smoking altogether. Nonetheless, BAT actively encourages individuals who might otherwise persist in the habit to fully transition to scientifically substantiated alternatives. A key milestone for the company is the attainment of a multicategory product portfolio through the responsible launch and marketing of its tobacco-free oral nicotine pouches. This initiative represents a proactive step in aligning the company’s product offerings with evolving consumer preferences and contributing to harm reduction in the realm of tobacco consumption.

Demonstrating unwavering support for diversity and gender parity, BAT has made significant headway in enhancing the representation of women in its workforce. Notably, the percentage of women in the company’s ranks has increased by 100 percent in recent years, reflecting the company’s commitment to fostering an inclusive and equitable workplace environment.

Renewable energy is an important part of environmental protection and is something BAT are committed to enhancing.
They have continued investment in solar energy and are developing plans towards a self-consumption captive solar
installation with a total capacity of 1,400kWp

Moreover, as part of its commitment to creating a conducive workplace, BAT has implemented programs like Parents@BAT, offering biological and adoptive parents the necessary support. This includes providing 16 weeks of maternity leave and establishing an onsite mothers’ room for nursing mothers.

To cultivate the next generation of leaders, BAT collaborates with selected institutions of higher learning to mentor female students continuing their education in Science, Technology, Engineering, and Mathematics (STEM). This initiative is aimed at fostering the development of future leaders and promoting gender diversity in STEM fields, underscoring BAT’s genuine commitment to social inclusion.

BAT Kenya staff celebrate their organization’s aquisition of the Alliance for Water Stewardship certification in 2022 for its
two factories – in Thika and Nairobi.

Demonstrating a longstanding commitment to good corporate governance, BAT conducts its business with integrity, transparency, and accountability. These values find expression in various policies and principles, including the company’s Standards of Business Conduct, which underscore its dedication to ethical corporate behaviour. As part of its self-regulatory initiatives, BAT actively engages in preventing underage access to its products and maintains a confidential whistle-blowing portal for stakeholders including employees to report concerns about business conduct.

Within the same sphere of good corporate governance, BAT extends its commitment to include valued business partners, specifically its contracted tobacco farmers. These farmers are integral to the company’s supply chain, and BAT is dedicated to ensuring their self-sufficiency and prosperity. Through the THRIVE farmer livelihoods program, BAT provides support to Kenyan farmers by offering training in sustainable agriculture, facilitating access to crop and health insurance, and fostering farmer Savings and Credit Cooperative Organisation (SACCO) programs.

These initiatives aim to empower farmers, enabling them to generate additional and sustainable income while aligning with BAT’s overarching commitment to ethical and responsible corporate practices. BAT exemplifies a model of ESG practices, blending sustainable practices, diverse inclusion, and a commitment to societal wellbeing.

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Dr. Hanningtone Gaya

Dr. Hanningtone Gaya

Kenya’s Dr Hanningtone Gaya, holds a PhD in Commerce in Business Management from Nelson Mandela University (NMU), is viewed as an authority in country branding and is the founder chairman of the Brand Kenya Board.

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