Category: Sustainability

Brazilian Institute Hosts Debate on Child Labor

Photo: Sinditabaco
Brazil’s Growing Up Right Institute organized a seminar on child labor prevention at the Santa Cruz Country Club in Santa Cruz do Sul on July 7.
Under the theme, “Child labor: care, welcome and protection,” participants discussed the progress made in combatting child labor, along with the work that still needs to be done.
“The Institute was founded with the mission to fight child labor and generate opportunities for adolescents from the rural setting, especially in tobacco growing regions,” said Iro Schunke, president of the Growing Up Right Institute, in a statement. “It is a complex task, but with good partnerships we have achieved great results. We have already become known nationally and internationally for the innovative method of offering opportunities to adolescents from the countryside through the learning law.”
Since 2016, the rural professional learning program has benefited 596 young people in Rio Grande do Sul. As part of the program, tobacco companies associated with the Growing up Right Institute hire young apprentices and pay them a salary proportional to 20 hours a week.
Instead of working, however, the apprentices attend a rural management and entrepreneurship course in the shift opposite to their regular school hours. The classes typically take place in the apprentices’ normal schools or in venues provided by the municipal administrations, which also provide for food and transport logistics thus making it viable for the adolescents to attend the course.
According to a report by the International Labor Organization and by the United Nations Children’s Fund, 160 million children and adolescents, aged 5 to 17, were subjected to child labor in early 2020. The Covid-19 pandemic has exacerbated the problem of child labor around the world, with a sharp increase in poverty, closure of schools and consequent school evasion.
In Brazil, the National Household Sample Survey, demonstrated that 1.77 million children and adolescents works, 53.7 percent of whom are in the 16-17 year age group.
July 12, 2022
E-Cig Batteries Power Drones in Ukraine War

Photo: Rakursstudio
Ukrainian volunteers have started using e-cigarette batteries to help power drones deployed in the war against Russia, according to a report in The Independent.
The batteries are being used to power release systems attached to drones so that they can carry and drop anything from medical supplies to grenades. The release systems are built using 3D printers.
The initiative was developed in response to the rising price of lithium batteries. War-related airport closures have driven up the cost of many imports. To collect disposable e-cigarettes and retrieve lithium polymer batteries, the volunteers set up drop-off bins outside the Kyiv Polytechnic Institute
“Lithium batteries used to cost $1 each but went up five times in price adding significantly to our costs,” says engineer and PhD student Maksym Sheremet. “So we started powering dropping systems from the batteries in disposable e-cigarettes. It’s free, easy to repurpose and environmentally friendly because we are recycling.”
A team of around 60 volunteers are making the drone systems, with 30 working specifically on the e-cigarette plan.
In four months they have built 4,000 dropping systems – which cost under $30 – and are sent to the front. They are also building drones from scratch and repurposing existing commercial drones to go with their dropping systems.
Seriously outgunned by Russia, Ukraine relies heavily on drones, which allow its forces to spot artillery and so direct fire efficiently, saving ammunition.
July 4, 2022
Greenbutts Taps Luis Sanches as Chief Strategy Officer

Luis Sanches (Photo courtersy of Greenbutts)
Greenbutts, a company that specializes in biodegradable filter technology, has appointed tobacco veteran Luis Sanches as chief strategy officer.
Sanches is a senior corporate executive with more than 30 years of international, cross-functional and cross-cultural experience responsible for managing business teams, supporting growth and leading transformations across multiple geographies such as Australasia, North and South America and Europe.
He was previously the senior vice president of R&D for Reynolds American Inc., a subsidiary of British American Tobacco. His corporate tenure under BAT spanned 31 years in total, including the position of group head of product development in the United Kingdom and vice president of Kentucky BioProcessing KBP, a leader in developing and employing cGMP processes to manufacture recombinant proteins using novel plant-based technology. He successfully led the development of novelty scientific knowledge and multi-category consumer lead product innovations.
“Never before in history have industry and humanity at large shared such a commitment to understand and urgently address matters that negatively impact the sustainability of our planet and, ultimately, our lives,” said Sanches in a statement.
“Greenbutts is pioneering solutions that will allow business partners to focus on their growth strategy and deliver their product innovation pipeline while materially advancing their ESG agendas. I am proud to join the Greenbutts team and am committed with them ‘to give every fiber of our being’ to offering meaningful sustainable solutions to our partners.”
“We are delighted to have an executive of Mr. Sanches’ caliber and industry presence, knowledge and experience join our already accomplished team,” said Tadas Lisauskas, founder and CEO of Greenbutts.
“For the past 11 years, Greenbutts has been focused on developing a viable alternative to cellulose acetate filters for the global cigarette industry, through extensive R&D and cross-continental partners. While we have had much success in achieving this goal; patenting our technology, continuously adding intellectual property to our portfolio and validating business cases on a global stage, the addition of Luis Sanches to the team is an opportunity to reintroduce ourselves to the global cigarette industry and assist in their efforts to make the inevitable transition to a zero-plastic alternative as seamless as possible,” said Tadas.
Sanches will oversee the company’s global expansion strategy regarding material and filter production. In addition, Sanches will work on optimizing the company’s filter manufacturing process to meet the regulatory needs and customer specifications.
June 23, 2022
Feelm Joins Carbon Disclosure Project

Photo: Feelm
Feelm has joined the Carbon Disclosure Project (CDP), as part of the listing of its parent company, Smoore.
CDP is an independent not-for-profit organization that manages a global disclosure system and repository for environmental reporting by corporations, municipalities and organizations around the world.
In 2021, more than 680 financial institutions, representing $130 trillion in assets, supported CDP’s request for data sharing, while over 13,000 companies, accounting for 64 percent of the world’s market capital, disclosed through CDP’s database. Phillip Morris International, British American Tobacco, Japan Tobacco International, Altria Group and Imperial Tobacco also take part in the CDP.
In May 2022, Feelm announced its commitment to achieve carbon neutrality by 2050, with a strategic executive plan that includes introducing zero-carbon vape technology solutions, adopting eco-friendly materials and green packaging, supporting the global supply chain in de-carbonization and activating a recycling program of vape pod cartridges and devices with clients.
“Carbon neutrality is an important component of our integrated ESG strategic plan as it helps to accelerate our business transformation, said Sofia Luo, marketing director of Feelm’s business division, in a statement.
“That is why Feelm follows the measures and roadmap outlined in the ‘Corporate Net-zero Pathway’ published by the UN in 2021. Feelm will press ahead with its commitment to comply with UN standards, disclose information transparently, and welcome scrutiny from international organizations and the public; in order to reach our vision of developing an eco-friendly and low-carbon economy.”
June 22, 2022
Carbon Neutrality for American Snuff

Photo: Sergey Shimanovich
Two American Snuff locations have boosted their environmental credentials, according to Reynolds American Inc.
American Snuff Co. Memphis has achieved carbon neutrality for its operations, scope 1 and 2, in accordance with PAS 2060 for the period between Dec. 1, 2020, to Nov. 30, 2021.
American Snuff Co. Taylor Brothers has also achieved carbon neutrality for its operations, scope 1 and 2, in accordance with PAS 2060 for the period between Dec. 1, 2020, to Nov. 30, 2021.
June 20, 2022
Zimbabwe Seeks to Switch to Gas for Curing

Photo: Taco Tuinstra
Zimbabwe wants to replace wood with gas as fuel source for tobacco curing to curb deforestation, reports Xinhua News Agency, citing the Tobacco Industry and Marketing Board (TIMB).
The TIMB said it is seeking gas technology companies to partner with it in establishing a centralized gas curing facility for tobacco. Such a facility should allow for multiple farmers to cure their tobacco at the same time, the regulator noted.
According to the TIMB, of the 262,000 hectares lost to deforestation in Zimbabwe every year, 15 to 20 percent of this is attributable to tobacco growing, particularly curing.
“This is one of the sustainable curing initiatives which we are considering as a board,” TIMB spokesperson Chelesani Moyo was quoted as saying. “Sustainable tobacco production is the efficient production of quality tobacco, under conditions that limit the negative impact on the environment. This also entails the best agricultural practices that improve the socio-economic conditions of tobacco growers and communities in tobacco-producing areas.”
Zimbabwe’s policy of promoting small-scale production has accelerated deforestation as farmers indiscriminately cut down of trees to cure the golden leaf.
Tobacco is one of Zimbabwe’s major foreign currency earners.
Last year, the country sold 186.6 million kg of tobacco leaf valued at $515.9 million, up 16.8 percent in volume and 31 percent in value over sales in 2020.
June 17, 2022
KT&G Publishes Ethics Charter

Photo: KT&G
KT&G on June 8 published its business ethics charter, which contains common standards of conduct for its companies, the firm announced in a statement.
Approximately 20 people attended the proclamation ceremony for the “KT&G Group Ethics Charter” at the Courtyard Marriott Namdaemun Hotel in Seoul, including KT&G President Baek Bok-in, representatives of seven domestic subsidiaries and compliance officers.
The third revision of the charter since its inception in 2003 aims to reflect the altered business environment, and covers global business expansion and reinforced ESG management, among other provisions.
Based on the company’s management philosophy of “An upright company, a conscientious company, and a shared company,” the ethics charter contains eight themes and 31 items. The primary topics are business ethics, protection of assets and information, domestic and international transactions, and social responsibility. Responsible research and development and social media use were added as new subcategories.
This ethics charter is distributed in eight languages to 21 companies, including overseas corporations and domestic and foreign subsidiaries. Moving away from the legal text format, it provides a more specific and understandable code of conduct through the use of descriptive phrases and the addition of practically applicable examples.
June 10, 2022
PMI Publishes ESG Protocol

Photo: Deemerwha studio
Following the introduction of PMI’s Sustainability Index, Philip Morris International made its ESG KPI Protocol publicly available. This document describes how the Sustainability Index will measure PMI’s progress toward reaching the goals outlined in its 2025 Roadmap and provides details about the 19 metrics that comprise PMI’s Sustainability Index. This announcement follows the release of PMI’s Integrated Report 2021, which includes details of the company’s Sustainability Index and the 2022 Proxy Statement, which provides details on how long-term executive compensation is linked to the company’s 2025 Roadmap through the Sustainability Index.
The ESG KPI Protocol is a separate, dedicated explanation of the Sustainability Index’s mechanics. It includes the definition, methodology and scope of each of the Sustainability Index’s KPIs to provide measurable, verifiable, consistent and accurate reporting on progress.
Through publication of its ESG KPI Protocol, PMI aims to provide further transparency on the key metrics used to measure how the company is progressing toward achieving its purpose and creating value for shareholders and other stakeholders. Further, the ESG KPI Protocol establishes a framework, which is specific to the company, and clearly defines KPIs that can provide the organization with a method for making the connection between the company’s purpose, strategic direction, financial performance and environmental and social considerations.

We developed a clear process for establishing concrete definitions, documentation and controls for sustainability with the aim of standardizing how we measure ESG performance.
Jennifer Motles, chief sustainability officer, PMI
“As sustainability matures and gains importance inside and outside our company, the question of how to measure ESG performance is something many continue to grapple with. Accordingly, we developed a clear process for establishing concrete definitions, documentation and controls for sustainability with the aim of standardizing how we measure ESG performance,” said Jennifer Motles, chief sustainability officer, in a statement.
Additionally, PMI published its 2021 ESG Highlights—a data-driven document based on the company’s 2021 Integrated Report and tailored to complement investor relations materials. It aims to further strengthen investor engagement and understanding of the relevance and robustness of PMI’s sustainability strategy and transformation.
June 9, 2022
Fruitful Cooperation

Photos: Alliance One International
By partnering with Bayer Crop Science, Alliance One International improves farmer livelihoods.
By Stefanie Rossel
Ending poverty is the first of the United Nations’ 17 sustainable development goals, which are supposed to be achieved by 2030. According to the U.N. Food and Agriculture Organization (FAO), the battle to end hunger and poverty must be principally fought in rural areas, which is where almost 80 percent of the world’s hungry and poor live. Success requires investment in “agents of change,” according to the FAO—smallholders, family farmers and other vulnerable groups. To feed more people with less water, farmland and biodiversity, better management and improved techniques in agriculture will be needed.
Agriculture is central to all activities in smallholder communities. In economic terms, most activities in these communities revolve around being able to develop a system that provides food security and improves the health of its members. The work of smallholders is an economic driver, creating prosperity for the community.
Keen to enhance farmers’ incomes, Alliance One International recently embarked on a new project. In June 2021, the company announced that its Alliance One Brazil (AOB) subsidiary was partnering with Bayer Crop Science to provide quality maize seeds and agronomic support to smallholder tobacco farmers in Brazil. AOB’s goal is to help its contracted farmers diversify their income by strengthening the quality and yield of a crop that is cultivated complementary to tobacco in the country.
“For AOI, improving farmer livelihoods is a top priority, and we are committed to maximizing all farmers’ income potential by 2030 through appropriate training in good agricultural practices and the opportunity for crop diversification,” explains AOI President Alex Strohschoen. “Through this partnership, we are making strides to achieve this goal and have already seen positive impacts for growers and their communities.”
During the 2020 growing season, AOB implemented a pilot project in which 2,300 of its contracted Brazilian smallholder tobacco farmers received a high-quality agronomic package for maize. “While many of our contracted growers in Brazil already grow maize in addition to tobacco, they lacked access to high-quality crop inputs such as seed, fertilizer and agronomic support,” says Strohschoen. “This prevented them from scaling up their production and limited their financial return. This agronomic package provides our contracted growers with access to Bayer’s maize seed varieties as well as fertilizer and hands-on guidance from our agronomists and field technicians, helping improve crop quality and yield, in turn, increasing the farmer’s bottom line.”
Globally, AOI employs approximately 1,000 trained agronomists and field technicians that conduct more than 1 million farm visits annually. “These individuals regularly share their expertise to support our contracted growers and are key to this partnership,” says Strohschoen.

Alex Strohschoen
Research Required
Bayer Crop Science offers a range of maize varieties with enhanced features. For instance, a maize variety can be more water efficient, high yielding or resistant to typical maize pests than other varieties.
In the case of AOI’s contracted Brazilian growers, use of Bayer maize varieties, grown using high-quality fertilizer and agronomic support from AOI, made a difference. “Prior to this project’s implementation, our Brazilian tobacco farmers that also cultivate maize produced on average less than 5,500 kg/ha,” says Strohschoen. “The agronomic package that we provide gives growers access to some of the most advanced technology available on the market, potentially increasing yields to over 10,000 kg/ha.”
As part two of the initiative, AOB offered the opportunity to participate in the program across its grower base during the 2021 growing season. Following the season’s completion, Strohschoen said, participating farmers saw a 15 percent increase in maize yield compared to the 2020 growing season, increasing a farmer’s income by $270 per hectare on average. “This additional income supplements the livelihood of our contracted growers and is an important piece of addressing other concerns, such as child labor, deforestation, etc.”
Similar to Africa, where climate change appears to be a big challenge for farmers, extreme weather patterns are impacting crop production in Brazil. Less and less predictable weather patterns make it difficult for growers to determine the right time to plant whereas the worsening precipitation deficit as well as increased frequency and severity of droughts are becoming more prevalent and more concerning. “Food insecurity is a global issue driven by various factors, including increased demand, war and conflict, climate change, and economic slowdowns and downturns exacerbated by Covid-19,” says Strohschoen.

An AOB leaf instructor (left) and a contracted farmer
Expansion Envisaged
Over the next three years, AOB intends to expand the project to include other crops—and other countries. AOI works with nearly 300,000 farmers in 20 countries across five continents, and it is the company’s aim to provide all of its contracted growers with the opportunity to diversify their income and increase their bottom line, says Strohschoen. “To do this, we must evaluate a number of factors to ensure we are implementing projects in the appropriate regions with crops that offer our contracted growers the greatest potential return. For example, we began this project in Brazil because approximately 75 percent of our contracted Brazilian farmers produce maize in addition to tobacco. Since these farmers were already growing maize, many had the infrastructure necessary to produce the crop prior to implementing the project.”
Following the success of the project’s first two phases in Brazil, it makes sense to expand it to a country with a similar climate and where growers have a seminal relationship with maize. “As we enter the 2022 growing season, we plan to introduce the program to our contracted farmers in Argentina, where a significant portion of our grower base could benefit from improving the quality and yield of their maize crops,” says Strohschoen.
In addition to the maize project in Brazil, AOI is also working on other projects around the globe. “For example, in Malawi, we have commercialized new groundnut and soya seed varieties,” says Strohschoen. “We provide interested tobacco growers with inputs, including agronomic expertise, helping them diversify their crop portfolios and produce high-quality crops for domestic, regional and international markets.”
With tobacco accounting for 54 percent of merchandise exports in 2019 and about 15 percent of GDP, the landlocked Southeastern African country is one of the world’s most economically tobacco-dependent nations. Not only in Malawi does food security remain an issue; it’s also a global problem that is being exacerbated by various factors, including increased demand, war and conflict, and economic slowdowns and downturns aggravated by Covid-19. Currently, Russia’s war against Ukraine is severely jeopardizing food security around the world.
“AOI is committed to doing whatever we can to transform people’s lives so that together we can grow a better world,” Strohschoen says. “This starts within our immediate network. To do our part to address global crises, we must first look at what improvements can be made within our supply chain. This begins with providing our contracted farmers with the tools they need to diversify their income and create additional food sources in their communities.”
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

June 1, 2022
Coming Clean

Photo: Yakiv
Stakeholders debate the challenges presented by cigarette litter.
By Stefanie Rossel
Cigarette butts are the most littered item on earth. The World Health Organization estimates that two-thirds of all smoked cigarettes are discarded into the environment. For 2021 when consumers smoked 5.21 trillion cigarettes, according to Euromonitor International, this corresponds to approximately 3.47 trillion littered cigarette butts.
Made of cellulose acetate (CA), a polymer that is slow to degrade in the environment, cigarette filters take up to 18 years to disintegrate. In addition, used cigarette filters are full of toxins, such as nicotine, formaldehyde, arsenic and ammonia, which can leach into the ground and damage living organisms that come into contact with them.
With regulatory pressure on single-use plastic (SUP) consumer goods increasing globally, tobacco companies hence face a new challenge: In a world where CA is still considered the gold standard for filters as far as smoking chemistry is concerned, they will have to find a way to make their products more sustainable. During a webinar staged in late April by Schweitzer-Mauduit International (SWM) and Essentra Filters, participants explored this and other challenges relating to cigarette filters.
Shane McGuill
Shane MacGuill, head of nicotine and cannabis at Euromonitor, said environmental sustainability was a double-edged sword for the tobacco industry, presenting both threat and opportunity and driven by a potent combination of consumer, investor and regulatory demand. According to his company’s research, 66 percent of consumers try to have a positive impact on the climate through day-to-day actions whereas 46 percent expect to be more worried about climate change in the future.
MacGuill predicted that more investors will look at sustainability in tobacco; presently, around 40 percent of MSCI ESG (environmental, social and governance) indexes exclude tobacco. Between 2016 and 2018, he noted a 30 percent compound annual growth rate of ESG integration.
In the tobacco and nicotine industries, product waste is one of the key drivers of sustainability legislation. The EU’s SUP Directive, introduced in 2021, emerged from a desire by European regulators to significantly reduce waste from cigarette butts by 2030.
It places extended producer responsibility (EPR), a reinforced application of “the polluter pays” principle, on cigarette manufacturers to mitigate the impact of discarded cigarette butts. The regulation, MacGuill pointed out, was likely to be replicated in other regions.
Supply chain integrity is another factor driving sustainability regulation; leaf cultivation is linked to environmental impacts such as deforestation, lack of crop diversity, chemical use and water utilization. Highlighted in the WHO’s 2017 report, these issues will likely attract increased scrutiny, MacGuill forecast.
The most environmentally damaging stage of the cigarette production process is manufacturing and supply, for which legislation thus far has been limited. MacGuill noted that major tobacco companies have significantly stepped up self-regulation and focused on reducing their carbon and energy use, aiming, for instance, to achieve net-zero carbon emissions from their value chains by 2050. Product waste ambitions, however, currently remain largely limited to packaging.
Increasing Awareness
Alice Jassaud
As end users, smokers play an important role in promoting sustainable cigarette consumption. A survey in Canada, Brazil, Germany, South Korea and France commissioned by SWM and Essentra Filters found that smokers generally are interested in sustainability, but only half of them know that filters contain plastic. Plastic content was overestimated in Germany while South Koreans underestimated it. Half of the smokers had a correct perception of the time needed for a plastic filter to decompose whereas South Koreans tended to overestimate it. According to the survey, filters were mostly dispensed in the trash or ashtrays in the countries investigated. Most smokers said they were willing to accept changes in the visual appearance of filters with accelerated biodegradability features. “There is a great opportunity for the industry to change tobacco products’ perception and their impact on the environment,” said Alice Jaussaud, product manager for filtering media solutions at SWM.
Hugo Azinheira
Hugo Azinheira, global innovation and marketing director at Essentra Filters, compared the biodegradability of various existing filters. In recent years, the industry has focused its R&D efforts on developing filters made of sustainable alternative materials. The sustainable filters used in the comparison, Azinheira said, were biodegradable while at the same time offering similar levels of performance and filtration as traditional materials.
Carried out according to ISO 14855-1, a protocol to evaluate biodegradability of plastics under controlled composting conditions, the test compared biodegradation to reference cellulose after 105 days. While 100 percent of the reference cellulose had decomposed after this period, only 8.7 percent of CA had disintegrated. The latter item was the only one still visible at the end of the test. The four samples made of alternative material all reached a biodegradation above 90 percent after 105 days.
Stricter Rules to Come
Frédérique Martinache
Regulation trends in the EU and beyond indicate that there is a strong political will on sustainability issues, said Frederique Martinache, product compliance senior specialist at SWM. Since 2014, the U.N. Environmental Assembly (UNEA) has been calling on states to address the environmental impact of marine plastic litter and pollution of SUP products. Regulatory approaches include imposing SUP bans, implementing taxes and/or economic incentives for sustainable alternatives, introducing EPR schemes and setting product standards and labeling requirements.
In March 2022, UNEA member states agreed to propose by 2024 a legally binding treaty to end plastic pollution on land and in the water. Cigarette butts are the most common plastic litter on beaches. They represent a major hazard for marine life as animals can ingest the trash, exposing them to harmful chemicals. These can also make their way up through the food chain, threatening human health on a global scale.
To promote the development of regulatory strategies that specifically address the impact of cigarettes on human health and the environment, the U.N. Environment Program has launched the Clean Seas campaign in which it partners with the Secretariat of the WHO Framework Convention on Tobacco Control (FCTC). Article 18 of the FCTC addresses protection of the environment and the health of persons in relation to the environment. This year’s WHO World No Tobacco Day focused on the adverse impact of tobacco cultivation and cigarette production and use on the environment, encouraging regulators to step up legislation, including implementing and strengthening existing schemes to make producers responsible for the environmental and economic costs of dealing with tobacco waste products.
In the EU, tobacco filters have been required since July 2021 to bear labels informing consumers about the presence of plastic in the products, means of inappropriate waste disposal and the negative impact of littering. By Jan. 5, member states must have set up EPR schemes to fund litter cleanup initiatives, awareness campaigns and data gathering and reporting projects. Innovation and product development to provide viable alternatives to filters containing plastics are encouraged. By July 3, 2027, the European Commission shall propose binding measures to reduce the post-consumption waste of plastic filters.
For the time being, the greatest regulatory pressure on filters comes from the EU and Norway, which has also implemented the SUP directive. But other jurisdictions are mulling measures as well. The U.K. Department for Environment, Food and Rural Affairs, for example, is considering the adoption of an EPR scheme. In the U.S., the Break Free from Plastic Pollution Act of 2021 intends to phase out throwaway plastics made from fossil fuel, hold the plastic industry responsible for its waste and pause construction on any new plastic-making plants. Apart from this federal legislation, there are a number of state initiatives. While Canada is contemplating regulation, the Australian government in 2021 launched the National Plastics Plan, which calls for an industry-led cross-sectoral stewardship taskforce to reduce cigarette butt litter in Australia.
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

June 1, 2022