British American Tobacco p.l.c. (BTI): Análisis PESTLE [Actualizado en Ene-2025]

En el complejo mundo de la industria del tabaco global, el tabaco británico estadounidense P.L.C. (BTI) navega por un paisaje desafiante de las regulaciones en evolución, las actitudes de los consumidores cambiantes y la interrupción tecnológica. Este análisis integral de mano presenta los factores externos multifacéticos que configuran las decisiones estratégicas de BTI, revelando cómo la empresa se adapta a las presiones del mercado sin precedentes mientras explora las vías innovadoras en el consumo de nicotina. Desde estrictos políticas gubernamentales hasta desarrollos tecnológicos innovadores, el viaje de BTI refleja las profundas transformaciones que desafían los modelos de negocios tradicionales de tabaco en el siglo XXI.

Tabaco estadounidense británico P.L.C. (BTI) - Análisis de mortero: factores políticos

Aumento de las regulaciones globales sobre publicidad y embalaje del tabaco

A partir de 2024, 90 países han implementado prohibiciones integrales de publicidad de tabaco. La Convención Marco de la Organización Mundial de la Salud sobre Control del Tabaco (OMS FCTC) ha sido ratificada por 182 países.

Región	Nivel de restricción publicitaria	Severidad de la regulación del embalaje
unión Europea	Prohibición completa	Advertencias de salud gráficas obligatorias que cubren el 65% del paquete
Australia	Prohibición de marketing total	Empacado simple obligatorio desde 2012
Estados Unidos	Restricciones parciales	Se requieren advertencias gráficas

Políticas gubernamentales dirigidas al consumo de tabaco reducido

Las estrategias fiscales han afectado significativamente el consumo de tabaco:

• Tasa impositiva de tabaco promedio global: 48.5% de precio minorista
• Ingresos fiscales promedio de tabaco a nivel mundial: $ 269 mil millones anualmente
• Gasto de control de tabaco global proyectado: $ 7.4 mil millones para 2025

Tensiones comerciales internacionales que afectan el acceso al mercado de tabaco

Las barreras y restricciones comerciales han creado importantes desafíos del mercado:

País	Importar aranceles	Restricciones de acceso al mercado
Porcelana	Tarifa de importación del 50%	Control de monopolio estatal estricto
India	Dominio de importación del 40%	Leyes integrales de control de tabaco
Brasil	35% de tarifa de importación	Barreras de entrada al mercado significativas

Medidas estrictas de control del tabaco en múltiples países

Panorama global de control de tabaco:

• 168 países han implementado leyes libres de humo
• Edad legal mínimo promedio de fumar: 18 años
• Países con legislación integral de control de tabaco: 53% a nivel mundial

Las tendencias regulatorias emergentes incluyen mayores impuestos, restricciones de marketing e iniciativas de salud pública dirigidas a la reducción del consumo de tabaco.

Tabaco estadounidense británico P.L.C. (BTI) - Análisis de mortero: factores económicos

Fluctuando la demanda del mercado global de tabaco

El tamaño del mercado global del tabaco fue de $ 849.2 mil millones en 2022, proyectado para alcanzar los $ 951.6 mil millones para 2030, con una tasa compuesta anual de 1.4%. El volumen global de cigarrillos del tabaco británico en 2022 fue de 553 mil millones de palos, lo que representa una participación de mercado del 10.2%.

Segmento de mercado	2022 Ingresos	Cuota de mercado
Tabaco combustible	$ 25.4 mil millones	10.2%
Nuevos productos de categoría	$ 3.8 mil millones	5.7%

Volatilidad del tipo de cambio de divisas

Los ingresos de 2022 de BTI afectados por las fluctuaciones de divisas: £ 25.7 mil millones Ingresos reportados, con £ 2.3 mil millones de efecto de traducción de moneda negativa.

Pareja	2022 volatilidad	Impacto en los ingresos
GBP/USD	-11.2%	£ 1.1 mil millones
EUR/GBP	-5.7%	£ 0.6 mil millones

Creciente costos de producción

Los costos de producción de BTI aumentaron en un 7,3% en 2022, alcanzando £ 18.5 mil millones. Los conductores de costos clave incluyen:

• Precios de tabaco crudo: +12.4%
• Gastos generales de fabricación: +6.2%
• Logística y transporte: +9.1%

Diversificación en productos alternativos de nicotina

La nueva categoría de ingresos de productos alcanzaron £ 3.8 mil millones en 2022, lo que representa el 13.5% de los ingresos del grupo total.

Categoría de productos	2022 Ingresos	Índice de crecimiento
Productos de vapor	£ 1.6 mil millones	18.3%
Tabaco con calefacción	£ 1.2 mil millones	22.7%
Oral moderno	£ 0.9 mil millones	15.6%

Tabaco estadounidense británico P.L.C. (BTI) - Análisis de mortero: factores sociales

Declinar la aceptación social del tabaquismo tradicional

Según la Organización Mundial de la Salud, la prevalencia global del tabaquismo disminuyó del 22.7% en 2007 al 17.5% en 2019. En el Reino Unido, las tasas de tabaquismo en adultos cayeron del 20.2% en 2011 al 12.9% en 2021.

País	Prevalencia de fumar 2019	Prevalencia de fumar 2021
Reino Unido	14.1%	12.9%
Estados Unidos	14.0%	12.5%
unión Europea	19.8%	18.2%

Creciente conciencia de la salud entre los datos demográficos más jóvenes

Una encuesta de 2022 reveló que el 73% de las personas de entre 18 y 24 años priorizan la salud y el bienestar en sus elecciones de estilo de vida. El mercado mundial de bienestar se valoró en $ 4.4 billones en 2022, lo que indica tendencias significativas de los consumidores centradas en la salud.

Cambiando las preferencias del consumidor hacia productos de riesgo reducido

British American Tobacco informó que sus nuevos productos de categoría (incluidos los productos de tabaco y vapor calentados) generaron ingresos de £ 2.1 mil millones en 2022, lo que representa un aumento del 40.5% a partir de 2021.

Categoría de productos	2021 ingresos	2022 Ingresos	Porcentaje de crecimiento
Tabaco con calefacción	£ 1.2 mil millones	£ 1.7 mil millones	41.7%
Productos de vapor	£ 0.8 mil millones	£ 1.1 mil millones	37.5%

Aumento de la conciencia de los riesgos para la salud relacionados con el tabaco

Los Centros para el Control y la Prevención de Enfermedades informaron que el uso del tabaco causa aproximadamente 480,000 muertes anuales en los Estados Unidos. El gasto mundial de salud relacionado con las enfermedades inducidas por el tabaco alcanzaron los $ 1.4 billones en 2020.

Impacto en la salud	Estadísticas anuales
Muertes globales relacionadas con el tabaco	8.2 millones
Costos directos de atención médica	$ 1.4 billones
Pérdidas de productividad	$ 0.9 billones

Tabaco estadounidense británico P.L.C. (BTI) - Análisis de mortero: factores tecnológicos

Inversión en tabaco calentados y tecnologías de cigarrillos electrónicos

El tabaco británico estadounidense invirtió £ 695 millones en nuevas tecnologías en 2023. Los nuevos ingresos por categoría de la compañía alcanzaron £ 2.1 mil millones en 2022, lo que representa un aumento del 40.4% respecto al año anterior.

Categoría de tecnología	Monto de inversión (£)	Cuota de mercado
Tabaco con calefacción	422 millones	35.6%
Cigarrillos electrónicos	273 millones	24.8%

Desarrollo de marketing digital y plataformas directas a consumidores

BAT lanzó 15 plataformas de participación del consumidor digital en 45 mercados en 2023. Las ventas en línea a través de canales directos a consumidores aumentaron en un 27.3% en comparación con 2022.

Plataforma digital	Número de mercados	Tasa de participación del usuario
Plataforma digital de Vuse	38	22.5%
plataforma digital GLO	22	18.7%

Tecnologías de fabricación avanzadas para la innovación de productos

BAT implementó 7 tecnologías de fabricación avanzada en 12 instalaciones de producción en 2023. Las inversiones de fabricación de automatización y precisión totalizaron £ 348 millones.

Tecnología de fabricación	Inversión (£)	Mejora de la eficiencia
Moldura de precisión	127 millones	18.3%
Ensamblaje automatizado	221 millones	22.6%

Investigación sobre la reducción de daños y los sistemas alternativos de entrega de nicotina

BAT asignó £ 524 millones a la investigación y el desarrollo en tecnologías de reducción de daños en 2023. La compañía presentó 351 nuevas patentes relacionadas con sistemas alternativos de entrega de nicotina.

Área de investigación	Inversión (£)	Número de patentes
Tecnologías de reducción de daños	524 millones	351
Entrega alternativa de nicotina	276 millones	187

Tabaco estadounidense británico P.L.C. (BTI) - Análisis de mortero: factores legales

Cumplimiento de la regulación del tabaco complejo

Paisaje regulatorio Overview:

Región	Cuerpos reguladores clave	Requisitos de cumplimiento
unión Europea	Directiva de productos de tabaco europeo	Rendimiento máximo de alquitrán: 10 mg por cigarrillo
Estados Unidos	Ley de control de tabaco de la FDA	Divulgación de ingredientes obligatorios
Reino Unido	Regulaciones de tabaco y productos relacionados	Límite de contenido de nicotina: 20 mg/ml

Riesgos de litigios continuos relacionados con reclamos de salud

Estadísticas de litigios:

Año	Número de demandas activas	Gastos legales estimados
2022	387	$ 412 millones
2023	423	$ 489 millones

Requisitos estrictos de la etiqueta de envasado y advertencia de productos

Regulaciones de envasado global:

• Australia: empaquetado simple obligatorio desde 2012
• Canadá: advertencias de salud gráfica que cubren el 75% del paquete
• Reino Unido: envasado estandarizado implementado en 2017

Creciente restricciones en la venta y distribución de productos de tabaco

Métricas de restricción de ventas:

País	Edad de compra mínima	Restricciones publicitarias
Estados Unidos	21 años	Prohibición completa de la publicidad de televisión/radio
Australia	18 años	Prohibición de marketing integral
Reino Unido	18 años	Publicidad de punto de venta prohibida

Tabaco estadounidense británico P.L.C. (BTI) - Análisis de mortero: factores ambientales

Compromiso con prácticas agrícolas sostenibles

Métricas del programa de sostenibilidad agrícola:

Métrico	2023 datos
Agricultores inscritos en el programa de sostenibilidad	86,000
Hectáreas bajo agricultura sostenible	200,000
Mejora de la eficiencia del agua	22.4%
Prácticas de conservación del suelo implementadas	47 países

Reducción de la huella de carbono en los procesos de fabricación

Logros de reducción de carbono:

Métrica de carbono	2023 rendimiento
Reducción total de emisiones de CO2	59% (desde 2017)
Uso de energía renovable	43% de la energía total
Mejora de la eficiencia energética	26.7%
Sitios de fabricación con cero residuos para vertedero	74%

Iniciativas de gestión de residuos y reciclaje

Rendimiento de gestión de residuos:

Métrica de gestión de residuos	2023 datos
Desechos totales generados	129,000 toneladas
Tasa de reciclaje de residuos	86%
Reducción de envasado de plástico	33%
Inversiones de economía circular	£ 37.5 millones

Abastecimiento sostenible de tabaco y materiales de embalaje

Métricas de abastecimiento sostenibles:

Métrico de abastecimiento	2023 rendimiento
Hoja de tabaco sostenible certificada	62%
Proveedores auditados para su sostenibilidad	1,250
Materiales de embalaje de fuentes recicladas	48%
Inversión de envasado sostenible	£ 22.3 millones

British American Tobacco p.l.c. (BTI) - PESTLE Analysis: Social factors

Accelerating Shift from Traditional Cigarettes to New Categories

You're watching a fundamental, irreversible shift in consumer behavior, and it's the main social driver for British American Tobacco. Adult nicotine users are moving away from traditional, combustible cigarettes at a quickening pace, so BTI's entire strategy is built on capturing this transition with its New Categories portfolio (vapor, heated tobacco, and modern oral products).

The numbers from the first half of 2025 make this clear. While the global tobacco industry volume is expected to decline by approximately 2% for the full year 2025, BTI's smokeless portfolio grew to account for 18.2% of Group revenue in H1 2025, an increase of 70 basis points from the end of 2024. The New Categories segment delivered a revenue increase of 2.4% at constant exchange rates in H1 2025. That's real momentum.

Health and Wellness Trends Pressure the Entire Nicotine Industry

The universal focus on health and wellness puts continuous pressure on the entire nicotine industry, not just BTI. Consumers are actively seeking alternatives they perceive as having reduced risk, which is why BTI's 'A Better Tomorrow' strategy, aiming to build a smokeless world, is a social necessity as much as a business strategy. The company is defintely trying to meet the public where they are.

This trend is forcing BTI to commit massive resources to the transition. The long-term ambition is to become a predominantly smokeless business, targeting at least 50% of total revenue from non-combustibles by 2035. More immediately, the company is focused on converting adult smokers, with an ambitious goal of reaching 50 million consumers of its smokeless products by 2030.

New Categories Performance: H1 2025 Snapshot

Here's the quick math on where the consumer shift is hitting hardest in BTI's portfolio, based on H1 2025 performance at constant rates. This shows you exactly which products are resonating with the new social trends and which are struggling with market realities like illicit trade.

New Category Segment	H1 2025 Revenue Growth (Constant Rates)	Key Driver / Trend
Modern Oral (Velo)	Up 40.6%	Discreet, smoke-free, and socially acceptable alternative.
Heated Products (glo)	Up 3.1%	Reduced-risk perception, strong in markets like Japan and Europe.
Vapour (Vuse)	Declined 13.0%	Significant drag from proliferation of illicit, unregulated products in the U.S. and Canada.

Increased Demand for Discreet, Smoke-Free Alternatives

The social acceptance of nicotine has fundamentally changed. Younger adults, in particular, are demanding discreet, smoke-free nicotine alternatives that align with a less visible, more on-the-go lifestyle. This is a huge tailwind for Modern Oral products like Velo.

In the U.S., the successful launch of Velo Plus in the first half of 2025 drove a remarkable +550 basis point increase in BTI's Modern Oral volume share, pushing it to 11.9%. Plus, social media influence is a major factor, with over 65% of nicotine pouch sales growth in the 2023-2024 period linked to viral content on platforms like TikTok. This is a new marketing battleground.

• Focus on discreet use drives Modern Oral growth.
• Social media accelerates product discovery and sales.
• Flavor variety appeals strongly to younger consumers.

Action: Marketing must continue to prioritize digital channels and lifestyle branding for Velo to capitalize on this social trend.

British American Tobacco p.l.c. (BTI) - PESTLE Analysis: Technological factors

You're looking at British American Tobacco p.l.c. (BTI) and its technology platform, and the core takeaway is simple: the company is in a high-stakes, high-cost technology race where innovation is the only way to protect its future cash flow. The shift to New Categories (Vapour, Heated Tobacco, Modern Oral) means BAT is now a consumer electronics company that also sells nicotine, and that requires massive, sustained investment.

Here's the quick math: New Categories revenue hit £1,651 million in the first half of 2025, up 2.4% at constant foreign exchange, and the total gross capital expenditure for 2025 is expected to be around £650 million. That money is going straight into the technology that drives the business transformation.

Rapid innovation in Vapour products (e.g., Vuse) requires massive R&D spending.

The pace of development in Vapour products is relentless, forcing BAT to pour capital into R&D to stay ahead of illicit markets and competitors. This isn't just about new flavors; it's about core chemistry and hardware. For example, the 2025 launch of Vuse One focuses on synthetic nicotine, which allows for more precise concentration standardization and consistent production, breaking away from traditional tobacco cultivation constraints.

This innovation drive is central to the goal of becoming a predominantly smokeless business, aiming for >50% of revenue from Smokeless products by 2035. The company's New Category contribution margin improved to 10.6% at constant foreign exchange in H1 2025, up 2.8 percentage points year-on-year, showing that the investment is starting to generate better returns.

Patent litigation is a constant, high-cost factor in the heated tobacco space.

While the threat of patent litigation is a constant risk in this space, a major recent development has offered a period of stability. In February 2024, British American Tobacco and Philip Morris International (PMI) reached a global settlement resolving all ongoing patent infringement litigation related to heated tobacco and vapor products. This agreement, which is valid for eight years, prevents future claims against the companies' current heated tobacco and vapor product portfolios, including BAT's glo and PMI's IQOS.

This settlement drastically reduces the near-term legal and financial uncertainty that had been a multi-year, multi-jurisdiction drain on resources. Still, the underlying need to protect intellectual property (IP) remains, and the cost of defending new patents against smaller, non-settling competitors or future product iterations is a structural cost of doing business in New Categories.

Digital marketing and direct-to-consumer (DTC) platforms are crucial for New Categories.

Regulatory restrictions on traditional advertising for nicotine products mean that a digital-first ecosystem and direct-to-consumer (DTC) platforms are not just a preference, but a necessity. BAT uses these channels to manage compliance, gather consumer data, and build brand loyalty. This is a significant shift from the old tobacco model.

The digital strategy is underpinned by a data and analytics-led approach and a dedicated Digital Confidence Unit (DCU) that monitors social media content 24/7 for compliance and reputational management. This integrated data ecosystem is what allows them to adapt quickly to changing consumer preferences. The launch of the MyVuse app in 2025 is a perfect example of this in action, turning the device into a connected platform.

• Use e-commerce and DTC for direct consumer feedback.
• Ensure all digital marketing is age-restricted and adult-focused.
• Leverage data and analytics to power product innovation.
• Monitor social media 24/7 via the Digital Confidence Unit (DCU).

Device technology improvements are focused on battery life and flavor consistency.

The technology race boils down to delivering a superior, reliable consumer experience. The focus is on small, incremental improvements that drive conversion from combustible cigarettes. The 2025 launch of Vuse Ultra in the UK, for instance, is a premium closed-system device that connects to the MyVuse app, allowing adult consumers to track flavor and performance parameters like auto-tune and puff tracking. That's a defintely a tech-driven value-add.

In the heated tobacco segment, the rollout of the glo Hilo platform in H2 2025 is a key move. Early trials in Serbia showed a doubled trial-to-conversion rate, indicating that the new device technology is significantly more effective at getting smokers to switch. The focus on flavor consistency is also a compliance and quality measure, with BAT emphasizing that its Vuse products use the best materials and flavors, with no sucralose added and no vitamin E acetate.

New Category Product	2025 Technological Focus	Key Metric/Data Point (2025)
Vuse One (Vapour)	Synthetic Nicotine Use	Standardized concentrations, consistent production.
Vuse Ultra (Vapour)	App-Connected Device (MyVuse app)	Features like auto-tune and puff tracking; £30 device price point.
glo Hilo (Heated Tobacco)	Improved Heating Platform	Doubled trial-to-conversion rates in early trials.
New Categories (Overall)	R&D and Capital Investment	FY 2025 Gross Capital Expenditure of approx. £650 million.

British American Tobacco p.l.c. (BTI) - PESTLE Analysis: Legal factors

You are operating in a legal environment that is not just restrictive but is rapidly evolving, forcing a constant, costly pivot in your product and marketing strategy. The core legal challenge for British American Tobacco p.l.c. (BTI) in 2025 is the regulatory bifurcation: a high-stakes, all-or-nothing approval process for New Categories in the US, coupled with a defintely rising tide of flavor and marketing bans globally.

US FDA Pre-Market Tobacco Product Application (PMTA) process dictates Vapour and THP market access.

The US Food and Drug Administration (FDA) PMTA process remains the single most critical legal gatekeeper for your next-generation products, especially Vapour and Tobacco Heating Products (THP). This isn't a simple registration; it's a multi-year, multi-million-dollar scientific gauntlet that determines market viability. While your Vuse Alto device and its Golden Tobacco and Rich Tobacco flavor pods received Marketing Granted Orders (MGOs) in 2024, securing your legal footing in the US vapor market, the fight continues.

The FDA's Marketing Denial Orders (MDOs) for Vuse Alto's Menthol and Mixed Berry flavors are still being challenged in the courts, and the Menthol product remains on the market under a court-ordered stay. This legal limbo is expensive. More recently, in October 2025, your unit, Reynolds American, paused the planned pilot launch of the Vuse One disposable vape, a product acquired specifically because its previous owner had a PMTA application pending since 2022. This pause came amid an FDA crackdown, underscoring the risk of marketing products without final authorization, even with a pending application.

Defintely rising global legal challenges against flavored nicotine products.

The regulatory pressure on flavors is intensifying globally, threatening the growth engine of your New Categories. While the US menthol cigarette ban proposed by the FDA was withdrawn in January 2025, a short-term reprieve for your highly profitable Newport brand, the risk has simply shifted to state and local levels. We estimate that US menthol sales account for approximately 18% of your total revenue, making this a massive, recurring legal vulnerability.

Internationally, the World Health Organization (WHO) called for an urgent, comprehensive ban on all flavored tobacco and nicotine products in May 2025. In Europe, key markets are moving ahead with their own restrictions.

• Ireland and Spain are considering or implementing bills in 2025 that would limit e-liquid flavors to tobacco only.
• Slovakia is proposing an amendment to ban all e-liquid flavors except menthol, mint, and tobacco.
• In the US, at least 20 states are considering PMTA registry bills in 2025, which, while supported by major tobacco companies to stabilize the market, still rely on a restrictive federal approval process.

Stricter marketing and advertising restrictions across key European and Asian markets.

The legal framework for advertising, promotion, and sponsorship (TAPS) is tightening, particularly for New Categories, as regulators seek to curb youth uptake. The current directives in the European Union (EU) are considered insufficient, and the European Commission is actively revising the Tobacco Products Directive and the Tobacco Advertisement Directive in 2025.

Here's the quick map of what's coming:

Region/Market	Regulatory Action (2025 Focus)	Potential Impact on BTI
European Union (EU)	Revision of TPD/TAD to address youth use, cross-border online sales, and social media marketing. Calls for plain packaging, internet sales bans, and point-of-sale display bans.	Significantly increases cost of customer acquisition for Vuse and glo. Forces a complete overhaul of digital and retail marketing strategies.
Asia Pacific, Middle East & Africa (APMEA)	Increased excise duties and regulatory challenges in markets like Bangladesh and Australia.	Contributed to a reported 12.3% revenue decline in the APMEA region in H1 2025, demonstrating immediate financial impact.
Global (WHO Influence)	WHO's 2025 report highlights that only 13 out of 53 European Region countries ban all forms of TAPS, signaling a major regulatory gap that will likely close in the near term.	Accelerates the global shift towards plain packaging and total media blackout, eroding brand equity for both combustible and New Category products.

The key takeaway is that the days of broad, unconstrained marketing for New Categories are ending. You will need to rely more on product innovation and retail execution, not just advertising spend.

Ongoing legacy litigation risk related to combustible products is still a major balance sheet item.

While the focus is on New Categories, the legacy litigation from combustible products remains a material balance sheet factor. The good news is that BTI has made significant progress in resolving long-standing issues, which immediately improved your reported operating profit in the first half of 2025.

Specifically, the update to the provision for the Canadian litigation settlement, which now fully resolves all past, present, and future tobacco claims in Canada, resulted in a net credit of £575 million in H1 2025. This compares favorably to the much larger adjusting item of £1,306 million in the prior year (2024), which included impairment charges. This one-time credit is a clear win, but it doesn't eliminate the underlying risk. You still face ongoing litigation in the US and other jurisdictions, which requires a consistent, substantial legal defense budget and continuous monitoring of balance sheet provisions. It's a managed risk, but a risk still.

British American Tobacco p.l.c. (BTI) - PESTLE Analysis: Environmental factors

ESG (Environmental, Social, and Governance) investor pressure on supply chain sustainability

You are defintely seeing the heat from ESG investors, and it's focused sharply on the value chain, which is where most of British American Tobacco's (BTI) environmental impact sits. Scope 3 emissions-the indirect ones from the supply chain-account for over 90% of the company's total carbon footprint, so this is not a minor issue. It's the main event.

To address this, BTI is pushing its suppliers to set their own Science Based Targets (SBTs), which is a clear, actionable metric. The good news is that BTI hit its 2025 target early: by the end of 2024, 23.5% of suppliers of purchased goods and services, by spend, had set SBTs. That's an 8.5 percentage point jump from 2023. They've also expanded their Supplier Climate Enablement Programme to engage with 150 of their top carbon-emitting suppliers, up from 60 the year before. This is a smart move because, honestly, you can't hit Net Zero without getting your suppliers on board.

Focus on reducing the environmental impact of tobacco farming (water, pesticides)

The environmental footprint of tobacco farming, particularly around water use and curing, is a major risk area. BTI has been aggressive here and actually achieved its 2025 water reduction target two years ahead of schedule. As of 2024, the company reported a 47.4% reduction in water withdrawn against its 2017 baseline, which is well past the original 2025 goal of a 35% reduction. That's a strong performance metric.

On the farming side, the focus is on regenerative agriculture (practices that improve soil health). In 2025, BTI is piloting a new regenerative agriculture framework. Also, they've made significant progress in tobacco curing, the energy-intensive process of drying the leaf. More than 87% of the leaf volume is now cured using renewable fuels and methods, and the use of coal across the entire supply chain for curing dropped from 3.3% in 2023 to 2.3% in 2024. That's a real-world reduction that matters.

Significant challenge in managing waste from disposable Vapour products globally

This is where the rubber meets the road on the 'E' in ESG for the New Categories business. The convenience of disposable Vapour products creates a massive electronic waste (e-waste) problem, mainly due to the lithium batteries and plastic components. In the US alone, at least 150 million disposable devices are thrown away annually. In the UK, the scale is staggering, with about 5 million vapes discarded weekly, which contributed around 40 tonnes of lithium to waste streams in 2022.

BTI's response is two-fold: product design and collection. Their Vuse brand is certified as the first global carbon-neutral vaping brand. Critically, BTI has a 2025 target to eliminate unnecessary single-use plastic and make all plastic packaging 100% reusable, recyclable, or compostable. To tackle the end-of-life problem, they run collection programs, like the 'Drop the Pod' campaign in South Africa, which collected 1.5 million pods in its first eight months. This is a clear action, but the sheer volume of global disposable waste means the challenge is still immense and will require regulatory changes, like the disposable vape ban set for June 2025 in England and Wales.

BTI aims for carbon neutrality in its operations by 2030

BTI's climate ambition is centered on achieving carbon neutrality in its operations (Scope 1 and 2 emissions) by 2030, with a broader goal of Net-Zero across the entire value chain (Scope 1, 2, and 3) by 2050. Here's the quick math on their progress as of 2024:

Metric	2030 Target (vs. 2020 Baseline)	2024 Progress (vs. 2020 Baseline)
Scope 1 & 2 GHG Emissions Reduction	50% absolute reduction	42.6% absolute reduction
Scope 3 GHG Emissions Reduction (Total)	N/A (Broken down below)	11% reduction year-on-year (2023-2024)
Renewable Energy Use in Operations	50%	N/A (Target of 30% for 2025 was achieved early)

The company is investing heavily in this transition. In 2024, they invested a further £19 million in energy reduction initiatives across 63% of their operational sites. This is expected to reduce absolute Scope 1 and 2 emissions by about 27,000 tonnes of CO2e per year once completed. They have also re-submitted their near-term targets to the Science Based Targets initiative (SBTi) to align with a 1.5°C warming pathway. The biggest hurdle remains Scope 3 emissions, which they are tackling through supplier engagement and design for end-of-life.