Our Approach to Environmental Sustainability
Data was modified to reflect market-based Scope 2 emissions versus previously reported location-based emissions to align with the methodology for renewable energy accounting.
In 2019, we exceeded our 2025 operational greenhouse gas emission reduction goal. Science continually tells us that more needs to be done and sooner. For this reason, in 2020 we adjusted to set a more ambitious goal and had our emissions reduction target approved by the Science Based Targets initiative as consistent with levels required to meet the goals of the Paris Agreement. The target covering greenhouse gas emissions from our operations (scopes 1 and 2) is consistent with reductions required to keep warming to 1.5°C, what the latest climate science has told us is needed to prevent the most damaging effects of climate change.
Previous 2025 Goal: Reduce absolute Scope 1 & 2 greenhouse gas emissions by 20% by 2025 vs. 2015
2030 Goal: Reduce absolute Scope 1 &2 greenhouse gas emissions by 55% by 2030 vs. 2017
Scope 1 & Scope 2
Greenhouse Gas Emissions
Metric Tonnes CO2e
0 600,000
< 310,690
< 151,653 2025 Goal
2030 Goal
337,007 329,282 302,416
377,064 388,350 2017
2018 2019
2016 2015
Reducing the Harm of Tobacco Products
Preventing Underage Tobacco Use
Managing Our Supply Chain Responsibly
Developing Our Employees and Culture
Environmental Sustainability
Appendix Our Approach
Marketing Responsibly Introduction
In 2020, we revised our greenhouse gas emissions goals and our target for the emissions from our value chain (scope 3) meets the Science Based Targets initiative’s criteria for ambitious value chain goals, meaning they are in line with current best practice.
The largest category for our Scope 3 footprint is investments, driven by our 10% investment in Anheuser-Busch InBev. AB InBev has greenhouse gas emissions goals validated by the Science Based Targets initiative and is making progress on initiatives such as renewable electricity.
Another portion of our Scope 3 emissions is in our agricultural supply chain. Our tobacco operating companies support sustainable agriculture through industry programs. We source most of our tobacco from the United States. We communicate sustainable agriculture expectations with all domestic growers through our Tobacco Leaders Program. In 2019, approximately fifty percent of our growers participated in the GAP Connections Certification Program which sets standards and assesses growers in areas such as:
• Crop management (integrated pest management, nutrient management, curing and barn management)
• Soil and water management
• Agrochemical management
We support the improvement of sustainable agriculture by investing in the development of tobacco curing efficiency processes, seed variety research, and university & agricultural extension programs.
Previous Goal: Reduce absolute Scope 3 greenhouse gas emissions by 15% by 2030 vs. 2017
Revised Goal: Reduce absolute Scope 3 greenhouse gas emissions by 18% by 2030 vs. 2017
Scope 3
Greenhouse Gas Emissions
Metric Tonnes CO2e
0 6,000,000
< 4,316,779 2030 Goal
2017
2018 5,078,448
5,264,365
We update Scope 3 emission data using a hybrid life cycle assessment methodology biannually and estimate using shipment volumes in between updates; we expect 2019 data in June. Data was modified to reflect the addition of the investment category.
For international leaf suppliers, we facilitate discussions with our suppliers at the local level on woodlot management. Our suppliers’ programs include efforts to reduce fuel usage.
Additionally, some suppliers have established reforestation plans with their growers to improve access to sustainable wood fuel sources. Although wood curing is used in only a small amount of the tobacco our companies purchase, we invest in programs to re-populate the trees. Altria provided funding to help support the progress in Malawi of the production and planting of tree/bamboo seedlings, the natural regeneration of woodlands, the distribution of fuel-efficient cookstoves, and implementation of small-scale irrigation.
In our international tobacco supply chain, we are part of an industry-wide steering committee to evolve the Sustainable Tobacco Programme to align with the U.N. Sustainable Development Goals, including themes around climate change, water, crop protection, biodiversity and forest protection, and waste.
Ste. Michelle Wine Estates is a member of the Board of Directors of the Washington Winegrowers Association and lends its expertise to the association’s VineWise. VineWise gives growers tools to evaluate business practices and implement sustainable management strategies, including pest management, soil management, crop management, vineyard productivity, water management, and whole farm ecosystem.
In 2020, we are piloting CDP Supply Chain to request environmental data from our direct and indirect suppliers, which will allow us to collaborate on shared environmental goals as well as improve the accuracy of our Scope 3 emissions inventory.
Reducing the Harm of Tobacco Products
Preventing Underage Tobacco Use
Managing Our Supply Chain Responsibly
Developing Our Employees and Culture
Environmental Sustainability
Appendix Our Approach
Marketing Responsibly Introduction
Our operating companies continue to replace lighting and equipment in their facilities with more energy-efficient options. In 2019, we started the process to explore offsite and onsite renewable energy projects, partnering with a leading energy specialist to execute request for proposals for power purchase agreements. In 2020, we committed to a 100% renewable electricity goal, further supporting our ambitious Science-Based Target.
Previous 2025 Goal: Cut absolute energy use by 18% by 2025 vs. 2015 2030 Goal: Achieve 100% renewable electricity by 2030
Previous 2025 Goal: Reduce waste sent to landfill by 25% by 2025 vs. 2015 2030 Goal: Reduce waste sent to landfill by 25% by 2030 vs. 2017
Renewable Electricity
Percent
0 100%
2030 Goal
2017 2018 2019
100%
2.3%
2.2%
2.1%
Energy Use Energy Use
Billions British Thermal Units (BBTUs)
0 6,000
2025 Goal
2017 2018 2019
2016 2015
< 3,935
4,360 4,264 4,064
4,490 4,799
Waste to Landfill
Millions of Pounds
0 100
2017 2018 2019
2016 2015
< 21.2
< 20.9 2025 Goal
2030 Goal
27.9 21
86.8
35.5 28.2
In 2018, we achieved our waste to landfill goal. In 2019, we had a large increase in waste due to renovation and construction at our Headquarters location. Nearly 80% of waste generated from this project was recycled or beneficially reused and our Operating Companies continued to decrease waste to landfill in line with our new 2030 goal.
While reducing operational waste continues to be important, we also realize the impacts of product and consumer waste on the environment. In 2020, we will explore new goals around packaging and continue to focus on preventing cigarette butt litter.
Reducing the Harm of Tobacco Products
Preventing Underage Tobacco Use
Managing Our Supply Chain Responsibly
Developing Our Employees and Culture
Environmental Sustainability
Appendix Our Approach
Marketing Responsibly Introduction