British American Tobacco Malaysia - Our Sustainability Strategy
BAT Malaysia's sustainability strategy underpins how we conduct our business and how we deliver the BAT Group’s corporate vision of creating A Better Tomorrow™.
BAT Malaysia’s Sustainability Strategy
BAT Malaysia’s sustainability strategy is aligned to the BAT Group’s strategy, by addressing the five strategic impact areas – Tobacco Harm Reduction (THR), Climate, Nature, Circularity, and Communities. Further, BAT Malaysia seeks to manage environmental and social impacts of its business responsibly through careful and effective governance of our impacts, risks, and opportunities. Our governance framework supports and provides the foundation for sustainable, long-term decision-making.
THR recognises the important role that smokeless alternatives with Reduced Risk alternatives*† to smokers who may not otherwise choose to stop smoking. That is why we encourage those who would otherwise continue to smoke to switch completely to smokeless products.
We aim to:
- Increase consumers of Reduced-Risk alternatives*† to 50 million by 2030;
- Generate at least 50% of our revenue from Reduced-Risk alternatives*† by 2035.
Our strategic aim is to generate an increasingly greater proportion of our revenues smokeless products, and by doing so, building a Smokeless World to realize our purpose of building A Better Tomorrow ™.
- We are committed to providing adult consumers with a wide range of enjoyable and less risky products*†.
- We continue to be clear that combustible cigarettes pose serious health risks, and the only way to avoid these risks is not to start or to quit.
- We encourage those who otherwise continue to smoke to switch completely to scientifically substantiated, smokeless alternatives.
- We will track and share progress of our transformation.
In 2025, Omni™, a progress summary of our journey for A Better Tomorrow™ by Building a Smokeless World, was introduced in Malaysia, with the objective of enhancing THR awareness.
*Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.
† Our products as sold in the US, including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.
As climate change remains a pressing global challenge, BAT Malaysia is committed to addressing climate-related impacts and reducing carbon emissions across its operational footprint.
In 2025, BAT Malaysia recorded:
- 51.91% reduction in operational emissions (Scope 1 & 2) against the 2020 baseline; and
- Total energy consumption of 24,196 GJ (45.62%) generated by renewable energy sources.
BAT Malaysia’s operations are not water intensive, and water is not a key input resource in our manufacturing activity. We manage water use through a risk-informed approach that considers both site-level operations and broader catchment conditions. Based on the Aqueduct Water Risk Atlas, most BAT Malaysia’s facilities are in areas assessed as having low baseline water stress, with approximately 7.69% located in areas classified as high baseline water stress.
- Johor Bahru Factory was certified under AWS for the second consecutive year in 2025.
- BAT Malaysia implemented the Indigenous Village Sanitation Project in Kg Sayong Pinang, an indigenous village located near one of our key water sources. The project involved constructing 11 lavatories, benefiting 80 community members.
BAT Malaysia seeks to embed circularity principles into its operations through a focus on responsible material use, effective waste management, and reducing operational waste sent to landfill, with the objective of minimising environmental impacts and improving resource efficiency.
- Benson & Hedges comes with fully recyclable packaging.
- Continue to convert 100% of tobacco waste generated from factory operations into bricks, diverting this waste from landfills.
- In 2025, 98.18% of total waste generated from our operations was diverted from disposal through recycling and recovery pathways, reflecting continued progress towards our targets of achieving a 90% recycling rate and zero waste to landfill.
BAT Malaysia is committed to fostering a diverse, inclusive, and equitable workplace while protecting the wellbeing of its people and contributing to the long-term sustainability of its business, workforce, and the communities in which it operates.
Read more about our values here > British American Tobacco Malaysia - Our values.
Communities are at the core of our sustainability efforts. Through our flagship community investment programme, Beyond Benih, BAT Malaysia empowers low-income (B40) communities by enhancing food security through sustainable community farm gardens.
Discover how Beyond Benih is creating lasting impact: British American Tobacco Malaysia - Communities, Social Impact and Well-being.