Environmental Excellence
We are driving environmental excellence for a sustainable tomorrow.
Excellence in Environmental Stewardship
Our 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 output, including cutting our Scope 1, Scope 2 and Scope 3 greenhouse gas (GHG) emissions in half by 2030, which is central to achieving Net Zero GHG emissions by 2050.
Read more in the 2023 Reynolds American Sustainability Summary.
Being responsible and excellent environmental stewards is a central part of our sustainability strategy. We are focused on continuing to make progress reducing GHG emissions in our own operations, pushing ourselves to meet our targets, while also aiming to make a positive impact across our supply chain.
-Bernd Meyer, Executive Vice President of Operations within the Reynolds American organization
Decarbonizing Our Operations
We adopted BAT Group’s Climate Change and Energy Standard 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. Additionally, we are rolling out electric and hybrid vehicles across our fleet.
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.
Carbon Neutral Certifications*
We are proud that we have achieved Carbon Neutral Certification* at several of our manufacturing locations and are on track to certify all of our factories as carbon neutral by 2025.***
*Carbon Neutral sites are externally verified as adhering to internationally recognized standards/carbon neutrality methodologies such as PAS 2060 and purchase carbon credits verified by third parties to offset residual emissions for which immediate plans do not offer financially viable and/or real emission reductions.
**ASC Clarksville, ASC Taylor Brothers, ASC Memphis, and Bowman Gray Technical Center aligned to the guidelines of PAS 2060: 2014 for the period from December 1, 2022 to November 20, 2023.
***Declaration of Carbon Neutrality for ASC Clarksville, ASC Taylor Brothers, ASC Memphis, and Bowman Gray Technical Center.
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. households.*
*According to the U.S. Energy Information Administration, the average U.S. household consumes 11,000 kilowatt hours (kWh) per year.
Transitioning To A Hybrid & Electric Vehicle Fleet
We are working to reduce GHG emissions from our vehicle fleet wherever possible. In 2023, we continued transitioning our 1,800+ sales and operations vehicles to hybrid and electric models and ended the year with 709 EVs. This transition resulted in an annual reduction of more than 1,000 metric tons of CO2. Our goal is to phase out all combustible engines by 2025.
Our transition of vehicles started in 2023 with a three-year plan and we are collaborating with Ford Pro to transition our current vehicle fleet to a mix of models, including the Escape SEL Hybrid, Explorer Limited Hybrid, Ford E-Transit and Ford-150 Lightning. In 2023, we ordered almost 1,000 vehicles (900) and continue to take delivery on a rolling basis.
Annual Reduction of 0 Tons of CO2
We anticipate to reduce emissions by approximately 1,000 tons per year.
Our sales representatives average nearly 27,000 miles a year in their territories across the fifty states—that’s a lot of time on the road.
-Ed Mirana, SVP, National Sales and Strategic Accounts.
Transforming And Reducing Waste
Waste is one of the greatest challenges facing our business and planet, and we take great care in reducing waste and the environmental impact of our operations. Since 2017, we have reduced waste in our own operations by nearly 40%, surpassing our 2025 waste reduction goal (25% reduction by 2025) three years ahead of schedule.
In 2023, we researched and implemented the following initiatives related to waste reduction:
Waste stream mapping
A fundamental tool to identify, reduce, and process waste. It is key to plan for the lifecycle of our waste to improve diversion and increase recycling rates.
Composting
Engaging vendors to compost organic waste meant that 8,300 metric tons of organic waste was diverted from landfills.
Waste-to-energy
Diverting landfill-bound waste and transforming it into energy.
Reynolds Breaks Ground on WaterHub Facility at the Reynolds Operations Center
Reynolds Receives SEAL Business Sustainability Award
SEAL Awards has named Reynolds as a recipient of the 2024 SEAL Business Sustainability Awards in the Environmental Initiative Award category for the Reynolds WaterHubSM project.
The SEAL Business Sustainability Awards honor leadership, innovation, and commitment to sustainable business practices. The Environmental Initiative Award evaluated applicants on impact metrics, innovation and uniqueness of the initiative, sharing of insights and best practices, and investment of organizational leadership capital.
Absolute, material impact is a critical factor in the SEAL Business Sustainability Award evaluation process. The Reynolds American organization demonstrated strong water stewardship through its innovative WaterHub project, which is expected to reclaim over 60 million gallons of water annually, leading to their 2024 award selection.
-Matt Harney, Founder of SEAL Awards
In 2023, Reynolds broke ground on an advanced water recycling facility at its largest manufacturing plant, the Reynolds Operations Center (ROC). Once construction is complete, the WaterHub is expected to reclaim more than 60 million gallons of water per year, equivalent to the annual water supply of approximately 550 average U.S. households. One of the few projects of its size in the U.S. using advanced water reclamation technologies, the WaterHub will allow Reynolds’ operating facilities to reduce their dependence on potable water for factory utility operations.
Reynolds Operations Center Earns Alliance for Water Stewardship Certification
As members of the AWS, we are committed to 100% of our operations sites being certified against the AWS Standard by 2025. The AWS Standard is a globally recognized framework that allows water users to better understand their water use and impacts, and to work collaboratively and transparently toward sustainable water management within a catchment context. With newly certified Clarksville and Whitaker Park sites, the BAT Group’s total number of AWS-certified sites is up to 28 globally.
100% Operations sites
Alliance for Water Stewardship (AWS) certified.
60 Million Gallons
Once construction is complete, the WaterHub is expected to reclaim more than 60 million gallons of water per year, equivalent to the annual water supply of approximately 550 average U.S. households.