Independent Assurance Statement by Bureau Veritas

Introduction and objectives of work

videoBureau Veritas Certification was engaged by Reynolds American to conduct an independent assurance of the Environmental Indicators of GRI (Global Reporting Initiative) elements of Reynolds American 2010 Corporate Social Responsibility Report as voluntarily selected and determined by Reynolds American. This Assurance Statement applies to the related information included within the scope of work described below.

This information and its presentation in the 2010 Corporate Social Responsibility Report are the sole responsibility of the management of Reynolds American. Bureau Veritas was not involved in the drafting or organization of the Report. Our sole responsibility was to provide independent assurance on its content.

Scope of work

Reynolds American requested Bureau Veritas to include in its independent assurance the following:

  • Data and information included in 2010 Corporate Social Responsibility Report for calendar years 2008-2009 here after referred to as “reporting period”;
  • Appropriateness and robustness of underlying reporting systems and processes, used to collect, analyze and review the information reported;
  • Evaluation of the Report against Bureau Veritas Assurance Standards for Completeness, Materiality and Responsiveness 

Excluded from the scope of our work is any assurance of information relating to:

  • Activities outside the defined reporting period;
  • Positional statements (expressions of opinion, belief, aim or future intention by Reynolds American and statements of future commitment);
  • GRI G3 Indicators identified by Reynolds American as currently immaterial.

Methodology

As part of its independent assurance, Bureau Veritas undertook the following activities:

  1. Interviews with relevant personnel of Reynolds American
  2. Review of documentary evidence produced by Reynolds American;
  3. Audit of performance data, a sample was audited back to the source;
  4. Review of Reynolds American data and information systems for collection, aggregation, analysis and internal verification and review;
  5. Correlation of information with previous year’s reports.

Our work was conducted against Bureau Veritas standard procedures and guidelines for external Assurance of Sustainability Reports, based on current best practice in independent assurance. For this assignment, we used the International Standard on Assurance Engagements (ISAE) 3000, the GRI G3 Sustainability Reporting Guidelines and other internationally recognized Assurance Standards.

The work was planned and carried out to provide reasonable, rather than absolute assurance and we believe it provides a reasonable basis for our conclusions.

Our findings

On the basis of our methodology and the activities described above, it is our opinion that:

  • The information and data of the GRI environmental indicators as voluntarily reported by Reynolds American during the reporting period and included in the 2010 Corporate Social Responsibility Report are accurate, reliable and free from material mistakes or misstatements;
  • The Report provides a fair representation of Reynolds American activities over the reporting period;
  • The information is presented in a clear, understandable and accessible manner, and allows readers to form a balanced opinion over Reynolds American performance and status during the reporting period;
  • The Report properly reflects the organizations alignment to, and implementation of recognized principles of Completeness, Materiality and Responsiveness in its operations. Further detail is provided below;
  • Reynolds American has established appropriate systems for the collection, aggregation and analysis of relevant information;
  • Reynolds American has effectively implemented underlying global data collection, review, reporting and verification practices that provide a high level of confidence that the information is complete and accurate.

Alignment with International Assurance principles

Materiality

The Report addresses the range of environmental, social and economic issues of concern that Reynolds American has identified as being of highest material importance. The identification of material issues has considered both internal assessments of risks and opportunities to the business, as well as stakeholder’s views and concerns. The final report was completed and reviewed by Reynolds Americans Executive Management, and Bureau Veritas Assurances were confined to the Environmental Indicators.

Completeness

The Report accurately reflects the understanding and management of the material issues Reynolds American has identified. All areas and activities over which the organization exercises influence or control have been considered for inclusion, without undue omission. Completeness of information has been pursued via established governance, risk management and prioritization processes. The Reynolds American reporting processes are robust and undergo extensive review and verification/validation.

Responsiveness

Reynolds American is responding to those issues it has identified as material and demonstrates this in its policies, objectives, indicators and performance targets.

Key areas for ongoing development

Based on the work conducted, we recommend Reynolds American to consider the following:

  • The 2010 Corporate Social Responsibility Report contains information specific to only 20% of the Environmental Indicators from GRI G3 Sustainability Reporting Guidelines. The reporting data could be more comprehensive and inclusive of the other GRI G3 elements and indicators.
  • Reynolds American continues to refine its data collection and validation processes. The compressed timeframe for collecting and verifying the data could potentially affect the quality of reported information simply because of the volume of data collected.

Statement of independence, impartiality and competence

Bureau Veritas is a Publically traded independent professional services company that specializes in Quality, Health, Safety, Social and Environmental management with over 180 years history in providing independent assurance services, and an annual turnover of $3 billion (US).

No member of the assurance team has a relationship with Reynolds American, beyond that required of this assignment. We have conducted this verification independently and there has been no conflict of interest. Bureau Veritas has implemented a Code of Ethics to maintain high ethical standards among staff in their day-to-day business activities.

The assurance team has extensive experience in conducting assurance over environmental, social, ethical and health and safety information, systems and processes, and an excellent understanding of Bureau Veritas’ standard methodology for the Assurance of Sustainability Reports.

Bureau Veritas Certification
Houston, TX
April 29, 2010