Mission Statement, Vision, & Core Values (2024) of British American Tobacco p.l.c. (BTI)

An Overview of British American Tobacco p.l.c. (BTI)

General Summary of British American Tobacco p.l.c.

British American Tobacco p.l.c. (BTI) was established in 1902 and has grown to become one of the leading companies in the global tobacco industry. The company operates in over 180 markets across the world, offering a diverse range of products including traditional tobacco products and newer categories such as vaping and heated tobacco products.

As of 2024, British American Tobacco's product portfolio consists of:

• Combustible Cigarettes
• Vaping Products (e.g., Vype, glo)
• Heated Tobacco Products
• Traditional Pipe Tobacco
• Roll-Your-Own Tobacco
• Nicotine Pouches

The company reported global sales of approximately £25 billion in 2023, with a consistent year-on-year growth in both traditional and non-traditional product segments.

Financial Performance in the Latest Financial Reports

In its latest financial report for the year ended December 31, 2023, British American Tobacco reported record-breaking revenues mainly driven by strong sales from its reduced-risk products.

The growth in revenue was particularly notable in emerging markets, where the company saw a significant uptick in demand for its reduced-risk product line. The overall market share of British American Tobacco in the global tobacco market reportedly reached 14.2% in 2023.

Introduction to Company as a Leader in the Industry

British American Tobacco has positioned itself as a leader in the industry through innovation and a commitment to transitioning to a sustainable future. With robust investments in research and development, the company has been successful in expanding its portfolio to include non-combustible products.

The successful strategy is reflected in the following metrics:

British American Tobacco's successful adaptation to changing consumer preferences and regulatory landscapes sets it apart from competitors, making it a noteworthy case study for understanding ongoing transformations in the tobacco industry.

Mission Statement of British American Tobacco p.l.c. (BTI)

Company's Mission Statement

The mission statement of British American Tobacco p.l.c. (BTI) encapsulates its commitment to delivering high-quality tobacco products while focusing on sustainable practices and addressing consumer needs. This mission is integral in guiding the strategic direction of the company and ensuring alignment with its long-term goals.

Core Component 1: Quality Products

British American Tobacco emphasizes the production of high-quality products. This commitment is evident in their investment in research and development.

For instance, in 2022, the company allocated £1.1 billion towards R&D, aimed at enhancing product safety and exploring innovative alternatives to traditional tobacco.

Core Component 2: Sustainability

Sustainability is a cornerstone of British American Tobacco’s mission. The company aims to achieve a net-zero carbon footprint by 2030.

As of 2023, BAT has reduced its greenhouse gas emissions by 30% compared to 2017 levels.

• Carbon Footprint Reduction: Targeting a 50% reduction in absolute emissions by 2030.
• Renewable Energy Usage: 35% of total energy consumption sourced from renewable resources in 2023.
• Waste Management: Aiming for zero waste to landfill across its manufacturing sites by 2025.

Core Component 3: Consumer Focus

Consumer focus is evident in British American Tobacco’s mission to meet the evolving needs of its customers. The introduction of next-generation products (NGPs), such as e-cigarettes and heated tobacco, reflects this commitment.

In 2023, NGPs accounted for approximately 20% of total revenue, showcasing a significant shift towards alternatives.

Vision Statement of British American Tobacco p.l.c. (BTI)

Vision Statement Overview

The vision statement of British American Tobacco p.l.c. as of 2024 emphasizes the company’s commitment to sustainable growth and innovation in response to evolving consumer preferences. It aims to build a better tomorrow through the development of reduced-risk products and initiatives that create value for stakeholders.

Focus on Sustainable Growth

As part of its vision, British American Tobacco aims to achieve net-zero greenhouse gas emissions by 2030. The company reported a reduction of 15% in its total greenhouse gas emissions from 2017 to 2022. In 2023, BAT invested £1 billion in sustainability initiatives.

Innovation in Product Offerings

British American Tobacco is focusing on innovation by expanding its non-combustible product range. The company reported that in 2023, non-combustible products accounted for 40% of total revenue, reflecting a significant shift in consumer demand.

Creating Value for Stakeholders

The vision also encompasses creating value for various stakeholders, including shareholders, employees, and communities. In 2023, BAT announced a total shareholder return of 12%, driven by strategic investments and financial performance.

Commitment to Compliance and Ethics

As part of its vision, British American Tobacco has increased its investment in compliance and ethical standards, allocating £200 million for training and development programs in 2023. This commitment is designed to ensure adherence to regulations and promote ethical business practices.

Core Values of British American Tobacco p.l.c. (BTI)

Integrity

Integrity is a fundamental core value at British American Tobacco p.l.c. (BTI). It ensures that all actions are conducted honestly and transparently while respecting laws and regulations.

In 2023, British American Tobacco reported a compliance program that achieved over 90% completion among its global employees, emphasizing training on ethical practices and legal standards.

The company also undertook initiatives such as the Integrity Hotline, which received approximately 1,500 calls regarding ethical concerns in 2022, demonstrating a commitment to addressing misconduct.

Respect

Respect is essential for fostering a positive workplace environment and creating strong relationships with stakeholders.

In 2023, British American Tobacco conducted a global employee engagement survey, achieving an engagement score of 78%, reflecting a culture of respect within the organization.

Additionally, the company’s Diversity and Inclusion Strategy has led to a workforce that is 45% female in managerial roles, showcasing its commitment to gender equality.

Innovation

Innovation drives British American Tobacco’s strategies to adapt to market changes and consumer needs.

In its 2023 financial report, BTI announced a 12% increase in investment in research and development, reaching £800 million, focusing on smoke-free products and sustainable practices.

Programs such as the Next Generation Products initiative saw a 15% growth in product sales, underscoring the company's commitment to innovation.

Sustainability

Sustainability reflects British American Tobacco’s dedication to minimizing its environmental impact and promoting sustainable practices.

The company has set ambitious targets to reduce carbon emissions by 50% by 2030, and as of 2023, it reported a 20% reduction from its 2020 baseline.

In 2022, BAT invested £50 million in sustainable agricultural programs, benefiting over 40,000 farmers globally.

Responsibility

Responsibility ensures that British American Tobacco acts with accountability towards its consumers and communities.

In its 2023 reports, the company indicated an investment of £100 million in community development projects, focusing on health and education.

Additionally, regulatory compliance has been strengthened, with over 95% of its products meeting local regulations on responsible marketing as of 2022.