Sustainability

Crafting a better tomorrow by elevating our communities and anchoring climate change in our corporate culture.

Our ambition to achieve this is rooted in our sustainability agenda – Rolling Responsibly - an integral part of Rolling Towards 2025.

SPOTLIGHT ON ROLLING RESPONSIBLY

Rolling Responsibly consists of three imperative focal points to steer our sustainable practices forward.

Compliance: Our commitment to prepare diligently to meet the evolving landscape of regulatory demands, notably addressing the Corporate Sustainability Reporting Directive.

Climate commitment: Actively engaging with the Carbon Disclosure Project (CDP) and the Science Based Targets initiative (SBTi), emphasising a strong commitment to reach emission reduction targets.

Embedding sustainability into our ways of working: As a core principle, we continue to embed sustainability into our day-to-day business processes, ensuring that environmental and social factors are considered in our strategic decisions.

	MATERIAL TOPICS	2024 ACCOMPLISHMENTS	2025 PLAN
Environment	E1 - Climate Change E5 - Resource Use & Circular Economy	Progressed Scope 1 & 2 decarbonisation pathway. Emission reduction targets validated by the Science Based Targets initiative across Scope 1, 2 and 3 for Green House Gas emissions. Scope 3 education sessions focused on better business continuity decisions, including a roadmap for the coming years to achieve our near-term targets. Started up resource use & circular economy workstream, primarily in packaging, with cross-functional involvement.	Deliver emission reduction and progress in accordance with SBTi targets. Create a process to ensure compliance with EU Deforestation Regulation (EUDR) & STG's no-deforestation commitment. Create a roadmap to deliver Scope 3 targets across the organization. Continue to educate colleagues in the organization. Set resource use & circularity targets.
Social	S1 - Own workforce S2 - Workers in the value chain S3 - Consumers and end-users	Launched a dedicated D&I committee and trained leaders in unconscious bias and microaggressions in the workplace. Kicked off procurement workstream and launched a responsible procurement strategy with focus on due diligence, and a continual roll out of our Supplier Code of Conduct. Gained insights from the Sustainable Tobacco Programme.	Implement transparent reward structure, operationalise the D&I Committee, data tracking, inclusive recruitment and training. Launch a global action plan focusing on training and skills development. Strengthen our due diligence approach through close dialogue with suppliers and performing ESG risk assessment. Centrally fund community initiatives supporting employee health & wellbeing, education & women's enablement.
Governance	G1 - Business Conduct	Established a set of policies and commitments to more effectively manage our impacts, risks and opportunities. Double Materiality Assessment (DMA) outcome considered in Enterprise Risk Management. ESG screening incorporated into M&A process, with deal breakers.	Regularly review and continuously monitor implementation of ESG policies. Annual Double Materiality Assessment (DMA) review to revisit the Impacts, Risks and Opportunities (IROs) identification and assessment. Workstream participants have sustainability objectives focused on delivering roadmaps to meet our targets.

Sustainable Community Pioneers
We are committed to uplifting our communities through local initiatives spanning across areas such as: healthcare & well-being, education and women’s enablement. Through these we aim to provide opportunities for advancement for our employees and their families in the countries where we produce our cigars.
We have identified the following material topics for the Sustainable Community Pioneers pillar: Diversity & Inclusion, Employee development, Working conditions, Anti-child and anti-forced labor, and Consumer health & safety. A strong social community is fundamental to our business. We aim to maintain a responsible supply chain and procurement, take responsibility toward consumers, and provide an inclusive employee experience.

OUR VIEWS AND POLICIES

Our view on smoking

We acknowledge the health risks associated with consuming tobacco and nicotine products. The use of these products should be a personal choice and those who do use them must weigh the associated health risks and balance those against their enjoyment.

Nobody under the age of 18 (or such higher age as may have been determined by local law for legal purchase) should consume tobacco or nicotine products.

We do not work to increase the number of smokers or to grow the total market for tobacco or nicotine products. On the contrary, we grow our business by growing our market share. Our aim is to give smokers and users of nicotine products reasons to choose our products and categories over those of competitors.

Our view on regulation

Scandinavian Tobacco Group acknowledges that tobacco products are different from other consumer products and that the health risks associated with them require stricter regulation – in particular to prevent children and adolescents from taking up smoking. Tobacco products continue to be subject to increased regulation in terms of manufacturing, promotion, presentation, sale and consumption. We support proportionate and fact-based regulation of our products and market place. We ensure compliance with local laws and regulations. And when marketing our products, we apply self-imposed principles that in many cases are stricter than local regulations. When it comes to new regulation, we do what we can to ensure a balanced approach to our product categories. On the one hand, regulation should always take health issues and the protection of youth into account. On the other hand, regulation should also take into account that the typical consumer of cigars and pipe tobacco is a mature adult. The consumer profile and the different characteristics of the various tobacco product categories mean that legislation, where relevant, should differentiate between, for instance, cigars and other tobacco products. We want to be a trusted participant in the legislative process, and we have valuable input and views to share specific to our products.

Our view on diversity

Diversity is the existence of many unique individuals in the workplace, marketplace and community, individuals from different genders, nations, cultures, ethnic groups, backgrounds, skills, abilities and all the other differences that make each of us who we are. An inclusive culture in Scandinavian Tobacco Group is a work environment where every person has the opportunity to fully participate in creating business success and where each person is valued for their distinctive skills, experiences and perspectives. The Group embraces workforce diversity as a source of strength. This is not only about visible differences in the workforce, but as importantly it is about the strategic advantage that comes from incorporating a wide variety of capabilities, ideas and insights into our decision-making.