Philip Morris International has been included for the first time in the Dow Jones Sustainability Index (DJSI) North America. Moreover, for the third year in a row, PMI leads the industry in DJSI’s innovation management category, which assesses companies’ research and development spending, product innovations and portfolio of tobacco alternatives and reduced-risk products. The DJSI North America Index includes the Dow Jones Indices’ top 20 percent of ESG performers across 61 industries—those that exhibit best-in-class performance against DJSI’s environmental, social and governance (ESG) metrics.
“Integrating ESG into our business is at the core of our smoke-free strategy,” said PMI Chief Sustainability Officer Jennifer Motles in a statement. “Indeed, for us to be a truly sustainable company we must continue to relentlessly address the health impacts of our products by focusing our efforts and resources on phasing out cigarettes as quickly as possible. As the only cigarette manufacturer committed to removing cigarettes from our business, we are proud to be part of the Dow Jones Sustainability North America Index, confirming the significant progress we’re making to transform our business.”
British American Tobacco (BAT) and Japan Tobacco (JT) have been recognized for their sustainability efforts.
BAT has been named in the Dow Jones Sustainability Indices (DJSI) for the 19th consecutive year. It is the only tobacco company to be included in the prestigious DJSI World Index.
In a statement, BAT said it is the highest scoring tobacco company in 2020, with industry leading scores in 13 of the 23 categories assessed, while achieving a top score of 100 percent in seven categories.
“At BAT, sustainability is at the heart of our transformation, and we are proud to have been included in the DJSI for a 19th consecutive year, said Kingsley Wheaton, chief marketing officer at BAT, in a statement.
“We believe our inclusion in the DJSI World Index, combined with the recognition we have received from other respected ESG ratings agencies including MSCI and Sustainalytics, is testament to our commitment to accelerate the transformation of our company.”
“We congratulate BAT plc for being included in the DJSI World and Europe,” said Manjit Jus, global head of ESG research and data, S&P Global.
“A DJSI distinction is a reflection of being a sustainability leader in your industry. With a record number of companies participating in the 2020 Corporate Sustainability Assessment and more stringent rules for inclusion this year, this sets your company apart and rewards your continued commitment to people and planet.”
JT has been selected as a member of the Dow Jones Sustainability Asia Pacific Index (DJSI Asia Pacific) for the seventh consecutive year.
From among approximately 600 major companies in the Asia-Pacific region, 158 companies (including 82 Japanese companies) are included in the DJSI Asia Pacific this year.
The JT Group’s sustainability strategy is formulated based on the company’s “4S” model, its management principles, and encompasses its materiality analyses. The foundations of JT’s sustainability strategy, are our respect for human rights, improved social and environmental impact and good governance and business standards.
“We are delighted to remain as a member of DJSI Asia Pacific for the seventh consecutive year,” said Kazuhito Yamashita, member of the board and senior vice president, chief sustainability officer, compliance and general affairs at JT, in a statement. “This clearly reflects our continued holistic approach to address social and environmental issues, particularly the development of sustainable growth of societies and climate change which both have a major impact on society and our business.”
Created by S&P Dow Jones Indices, the DJSI represents the gold standard for tracking corporate sustainability. In 2020, around 3,500 companies had their sustainability practices assessed against ESG (environmental, social, governance) criteria. Only the top 10 percent are recognized as leaders in corporate sustainability and achieve DJSI World Index inclusion.
Japan Tobacco (JT) has received the highest ranking in the PRIDE Index 2020 for the fifth consecutive year. Created by Work with Pride, the index evaluates companies’ initiatives related to LGBT and other sexual minorities in Japan.
“We are delighted to receive the Gold recognition for the fifth consecutive year,” said Koichi Mori, JT’s senior vice president of human resources, in a statement. “At JT, we position respecting diversity as one of key management challenges.”
JT believes that embracing diversity and finding value in differences will bring about sustainable growth. The company has taken a variety of initiatives to create, develop and enhance the work environment by fostering diversity, where everyone can freely express their own personalities and recognize one another’s differences.
KT&G has obtained a Grade A in the environment, social and governance (ESG) evaluation conducted by Morgan Stanley Capital International (MSCI).
Every year, MSCI evaluates about 8,500 listed companies worldwide by dividing them into different types of businesses and rating their business status related to the environment, social responsibilities, and corporate governance in the range of AAA to CCC. This year, KT&G was evaluated along with 11 global tobacco companies.
This year’s grade is one level up from last year’s BBB.
Last year, KT&G obtained an A+ for the second consecutive year and won the “Grand Prize” in the domain of governance in the ESG evaluation performed by the Korea Corporate Governance Service in recognition of its establishment of an excellent sustainable management system.
The company has also been publishing the KT&G Report since 2007 to deliver transparent and accurate ESG information to domestic and overseas stakeholders as well as share various social responsibility activities with them.
BAT’s women scientists share their experiences working for one of the world’s leading tobacco companies.
TR Staff Report
Diversity and inclusion are hot topics and rightfully so. The gaps in opportunity between different genders, ethnicities and ages, among other identifying factors, have become more readily noticeable as reporting has grown and many companies work hard to make progress around these issues.
British American Tobacco (BAT) has always championed diversity, and the company’s new ethos and diversity agenda reflects this ongoing commitment. With over 50,000 employees around the world, having diverse teams, cultures and skill sets are crucial to delivering success globally. The company is accelerating plans to create a more inclusive culture and has set some ambitions that include diversity of experience as well as having a range of nationalities across its leadership teams, and its gender ambitions remain a priority across the whole organization.
Launched earlier this year, the new ethos is about being bold, fast, empowered, responsible and diverse to create a future-fit culture. It was developed with significant input from employees and designed to drive the company’s vision to “build a better tomorrow” by reducing the health impact of its business through offering a greater choice of enjoyable products for its consumers.
To put this ethos into action, BAT introduced some new initiatives, such as Parents@BAT, which offers a range of benefits to support parents around the world, alongside its well-established programs such as Women in Leadership and B United, the firm’s self-governed global community of lesbian, gay, bisexual and transgender (LGBT+) employees and their allies.
“Diversity is a key part of our ethos,” said David O’Reilly, director of scientific research at BAT. “We have initiated a range of training and development programs to support our teams, including women in leadership, a 30 percent mentoring club, Parents@BAT, how to guard against unconscious bias as well as career break reintegration.”
Advertisement
Recently, BAT published a series of interviews with some of their female scientists as part of the U.K.’s national Women in STEM campaign as well as a video as part of their own Women in Science campaign.
“We launched our Women in STEM (science, technology, engineering and mathematics) initiative in July 2019,” according to BAT. “Using external partnerships and internal learning and development platforms, the initiative aims to attract, develop and retain more women across our research and development, operations and information and digital technology functions. In the U.K., we have joined WISE, an organization that enables people in business, industry and education to increase the participation, contribution and success of women in STEM roles by organizing knowledge-sharing and networking events, training and webinars.”
BAT’s “Celebrating Our Women in Science” video was published to celebrate International Day of Women and Girls in Science, focusing on the achievements of the company’s female scientists and their work. Tobacco Reporter asked some of these scientists about diversity and inclusion and what it’s like to work in their fields.
Linsey Haswell
Tobacco Reporter: What drew you to science, and why did you choose to work in the tobacco industry specifically?
Linsey Haswell, clinical research scientist: I’ve been interested in science since I was a child. I remember going to visit natural history museums with my mum when I was little and being fascinated by the exhibits, and my dad reminded [me] recently that once I started to study science in secondary school, I had a periodic table pinned up on my wall. So I had a real interest in science before I realized you could make a career out of it. Until I saw a job advertised by BAT, I hadn’t thought of the tobacco industry as a career path. Then I started to read about the work and the science that BAT did, and when I went to the job interview, I really liked the facilities at the R&D hub in Southampton and how passionate and enthusiastic the people were about their work. I enjoy the variety my job offers and the fact that two days are rarely the same. I have spent 15 years in the preclinical team in the lab growing cells, but I equally enjoy engaging with people and communicating the science and work we do in R&D.
Emma Cheung, biological platforms scientist: I have always enjoyed science, and following chatting to my A-level biology teacher, I decided to apply for pharmacology courses at university. As part of my undergraduate degree, I undertook a year in industry and came to work at BAT, Southampton. I really enjoyed my year, the science that BAT was doing and the focus on in vitro work. Following my graduation, I was offered a temporary contract in the team and then a permanent contract, and I’m still here 13 years later.
Summer Hanna, principal science manager in the new sciences department: I didn’t seriously consider a career in science until I was approached by a professor during my first year of university who suggested I consider majoring in chemistry. Once I had the opportunity to take part in undergraduate research, I developed a passion for better understanding the world around me through science. I chose to work in the tobacco industry partially by chance. While I was in graduate school at Wake Forest University, there was a person in my adjoining lab who was working on their Ph.D. part time while working full time at R.J. Reynolds, so I learned a little about the company as a Ph.D. student. We wound up sitting next to each other at graduation, and he mentioned that there were opportunities in their summer internship program as I was still looking for a job. I thought it would be a good way to gain career experience, applied and was offered an internship in analytical research. I was a little apprehensive, but shortly before I started, a professor said to me, “You’ll be pleased at the quality of research that goes on there,” and it turns out he was right. I’ve had the pleasure of working with really fantastic scientists throughout my career, and I’ve always appreciated the welcoming culture within the industry. Colleagues both inside and outside BAT invest in the development of early career scientists, and there are lots of [ways] to get involved externally through technical organizations like CORESTA. It’s a great environment in which to build your professional network.
Anais Hoffmann, analytical scientist: I was interested in science from a young age and was drawn to physics. I remember collecting anything to do with planets and space as a child—and then getting into chemistry. The decision to go into science was made by discovering forensic chemistry, which is a fascinating area. I was drawn to the tobacco industry for its vastness in terms of products and in terms of scientific capabilities. All my experiences were very complementary—I have a background in forensic science and biophysics—and think it was very helpful to me.
Cristelle Antunes Santos, toxicologist: Science was the only option on the table for me. It was a natural choice from a really young age.
Isn’t it an exciting world right now? Nowadays, we have so many innovations in the market that give consumers a greater choice than before. As toxicologists, we conduct risk assessments, generate toxicological limits and take decisions about consumer products.
BAT has exceeded my expectations in both the quality of the science produced and the career opportunities available.
Emma Cheung
Can you tell me more about your work?
Cheung: A main part of my role is to develop and deploy biological testing techniques to assess our products and provide supportive data to our Consumer Product Safety colleagues. We also publish our in vitro data in peer-reviewed journals.
Hoffmann: I’m an analytical scientist, which means I work with techniques aimed to detect and measure different entities (compounds and materials). For me, it’s the sudoku/puzzle area of chemistry. The other aspect of my work is project management. I therefore divide my time between laboratory work and desk-based work. This is also dependent on the projects I am working on.
Santos: We identify possible risks by thorough assessment of our products throughout the development lifecycle. We identify the appropriate scientific package that will allow us to evaluate any potential concerns. It has also been seen through the years how continuous innovation is leading to more options for our consumers to choose from.
How do regulations and the differences in regulations across the globe affect your work?
Hanna: I have spent most of my career focused exclusively on U.S. regulations, but with the opportunity to participate in a multi-year international assignment based in the U.K. R&D Centre, I’ve gotten to think about regulations with a global lens. It has been a great learning experience to better understand how an international organization balances the needs of 180 markets and supports the regulations across all of them. Moving from exclusively a U.S.-based regulatory construct to considering the requirements across so many markets has helped me think differently about how I approach my work and respond to challenges I encounter.
Santos: BAT readily contributes to the debate and offers experience and expertise to governments and regulators to help address key issues. The U.K. is an excellent example of what can happen when toxicologists and regulators discuss science and the impact on the population.
Summer Hanna
How frequently do you collaborate with other scientists in other specialties, either within your company or globally?
Cheung: R&D is very collaborative between people in different departments. We usually work between teams to complete projects. We also have collaborative links to our U.S.-based site and other competitor companies.
Hanna: I’ve had the opportunity to collaborate with other scientists, internally and externally, throughout my career and continue to do so on a near daily basis. BAT’s R&D facilities in the U.K., U.S., Brazil and Germany allow for continuous global collaboration internally. We regularly have projects which depend on an international effort with a cohesive team mindset supported through scientific dialogue. Externally, I’ve participated in Coresta working groups, which are comprised of global teams of scientists, presented at international conferences such as GTNF and been active in the development of international technical standards via ISO/TC 126, which is comprised of 71 different National Standard Bodies.
Hoffmann: In my current role, I have the opportunity to collaborate with different teams within the company, which is really interesting and enjoyable.
Santos: As a toxicologist, we need to bring together a wide variety of expertise, including chemistry, biology, microbiology and many others. As it is impossible to be an expert in every field, we constantly seek support from these specialized professionals and incorporate their expert opinions into our assessments and recommendations. This very close relationship is extremely important to the development of our products.
Anais Hoffmann
What obstacles have you faced in your career? Do you feel like any of these obstacles are the result of being a woman in a traditionally male-dominated field?
Haswell: Becoming a parent is tough, and it is hard to balance home and work life. But the recent Covid situation has shown us all new ways of working and managing our work/life in a flexible environment. I hope some of these solutions will help parents find a better balance.
Cheung: I don’t think any obstacles I have faced have been particular to this industry. I think the attributes that make me a good scientist (quiet, reflective and analytical) can sometimes be seen as career-limiting in a business environment as it can be difficult to push yourself forward. This is something I particularly struggled with in my early career—how to be true to myself but also ‘raise my profile’ in the business.
Santos: I haven’t faced many obstacles throughout my career. As a student in different European countries, I have always observed a very low number of male colleagues compared to females. In Southampton’s R&D, I feel that gender is very equal. In engineering departments, there are more men than women but, for example, in my toxicology department, the team are 60 percent women, and I think many of the senior positions in the department are occupied by women as well. I believe this is a trend that we see in biological and biomedical sciences, but this is definitely not the reality in the STEM space as a whole.
Cristelle Antunes Santos
Have you seen a shift in focus as the industry, and companies as a whole, have put more pressure on themselves to create a more diverse and inclusive workforce?
Haswell: As long as I have worked at R&D, it has sought to be a diverse community, and this makes R&D a really interesting place to work and grow. The better we become at being a more diverse and inclusive workforce, the broader the range of experience and expertise we will have. And it will be great to be able to collaborate and capitalize on that.
Cheung: BAT has launched many campaigns and initiatives to promote diversity and inclusivity. As a global company, there are many opportunities for people to work in different geographical locations, which promotes diversity of culture and thinking.
Hanna: BAT has made diversity and inclusion a key part of the new company ethos. I think that really demonstrates that there’s a commitment from the top down to recognize and value different perspectives and experiences as part of how we operate. Within BAT, there are numerous company-sponsored organizations, such as B United, which supports the LGBTQ+ community, the Women’s Employee Resource Group or our Strength from Diversity team, which all help to support a more inclusive and engaged workforce.
Hoffmann: I’ve seen an increase in focus, in general, to promote diversity and inclusivity in the workforce, either with communications, events or representation either internally or externally. Women in science, for one, is something that has a good coverage. Other communities also start to have more focus and representation, such as the LGBTQ+ community—at BAT we have the B United network, which is great.
Have you seen a change in women working in STEM, and what does that look like?
Haswell: R&D has some great female role models, and their support and encouragement has been invaluable to me during my career.
Cheung: I have seen an increase in communication around supporting return from maternity leave and being given the flexibility to be able to work from home when children are ill rather than taking holidays or unpaid leave, which shows progress in this area. Sharing of parental responsibilities has also gained traction with shared parental leave gaining in popularity to enable the father to take part of the traditional maternity leave.
Hoffmann: I have come from a university (Universite Pierre et Marie Curie in Paris) with a good balance between male and female students across all fields, which from my point of view shows that the interest for science has always been present, no matter the gender. As a result, I don’t think that the increase of women in STEM is a change in women’s career interests but more due to an increase of opportunities given to women in those fields as well as better communication, representation and focus in areas that were historically only represented by men.
Santos: Out of the four STEM fields, I believe science has a better gender balance than the other areas, and this is probably why I have not faced the same challenges that some women in engineering or technology have. Society still has work to do, and we need to make sure everyone has access to equal opportunities.
How is the industry helping to normalize and promote women in STEM?
Cheung: At my level, I don’t think there is a gender bias, however, it’s fair to say there are less women in senior positions than men when you look at big organizations. I think this is the case across many industries, and sometimes women feel the need to park their career progress at a certain point to balance family pressures. BAT supports having a work-life balance, and initiatives like Parents@BAT is a good example of this in action.
Hanna: When I started in the industry, Susan Cameron had just retired the first time as CEO, and starting your career as a young woman in a company with the first female CEO of a major tobacco company was inspiring. For her to return as CEO a second time, having an executive leadership team with significant female representation and then conduct the third woman-to-woman CEO handover in the history of the Fortune 500 fostered an environment in which women in the workplace could see real opportunity for themselves. That sort of legacy becomes part of your company culture, and so while the industry may have been historically male-centric, my experience has been that there’s a real commitment to implementing company practices which promote equity across the board for all women in the workplace, not just those in STEM professions.
Hoffmann: I think there is a spotlight on Women in STEM, with regular articles and coverage of women working in those fields. The rise of the movement combined with internet and social media allows for more networking as well. This allows people to have more access to information about different fields of science that would have not been available prior to the Women in STEM movement.
The representation and diversity within the Women in STEM movement is empowering.
A focus on women having (or having had) successful careers in STEM is also very inspiring as it allows women of all generations to have great role models. I personally had the chance to attend a university named after Marie Curie, located next to the institute where she conducted her research, and she was definitely an inspiration.
I didn’t find it difficult to establish a career in the tobacco industry, which is great. I spent some time on a military base as part of my forensic science background. This was my first scientific workplace experience, and it was quite a male-dominated field. As [a] result, being a civilian, a female and with no prior experience, this was impressive and daunting. I was, however, included quite easily in those fields, mainly due to my scientific knowledge and contribution to the projects I was working on, but [I] also think my personality was a huge factor, and I can appreciate that some obstacles can be encountered by other women.
Santos: BAT has launched and supported many diversity initiatives; Women in STEM is one of many. We are such a multicultural company, and diversity is a key element of our DNA. Specifically on gender, BAT has many initiatives in place in order to promote diversity within the group. I do not think that women in BAT nowadays feel that it is harder to establish a career than in other industries—at least I feel that I have always had the same opportunities as my male colleagues.
Where do you see the biggest gaps in regard to women in STEM? How do you think the industry or companies could help bridge these gaps?
Cheung: If you have responsibilities at home, you can’t always stay late in the office; however, many people catch up in the evenings at home. In the past, I think this hasn’t always been acknowledged because it’s not seen. However, in the post-Covid world, I think this is changing, and there’s traction to the idea that people can work effectively from home and in the office.
Santos: I think everyone and every company still has a lot of work to do. But my experience has been very positive, and from the very first day I joined BAT, I looked at the female leaders and immediately thought, “I can be like them one day.” This is a very important point that sometimes we underestimate—the power of a mentor or role model in our careers. One of the greatest things about working at BAT is the welcoming and friendly work environment. The flexibility, medical leave policies, equal maternity and paternity leave, zero tolerance for discrimination and harassment should all be considered as priority to every company in order to retain good employees.
What are you excited about in the changing industry—either diversity and inclusion related or project/product related?
Cheung: The pace and thinking of the company have really changed since we have branched out into our new category products and brought in different skill sets to match this change in our product portfolio.
Hanna: I am excited to be a part of the industry in a time of such rapid transformation—not just in what our workforce may look like but also how we think about our products and ourselves as an industry. Every day presents new challenges and opportunities.
Hoffmann: I like diversity and collaborative work. I particularly enjoy the different perspectives and points of view it can bring, whether project related, work related or people related.
Santos: I am certain that we will start seeing more innovations, more advanced products, lots of different options, new formats, colors and flavors.
Do you have a favorite project that you’ve worked on?
Haswell: It has been really great to see our science grow and progress over my time at BAT, so one of the achievements I am proud of is the longer-term exposures we have done recently. We believe it’s important to look at the effects of repeated exposure on human lung cells using in vitro methods. It was a complex project with lots of challenges along the way, and being able to take that project from initial concept through the work in the lab and finally seeing the results at the end was something I feel was a great achievement.
Cheung: We have had our first publication on modern oral products accepted in Food and Chemical Toxicology Journal. This is a new category for the company, and it was exciting to develop the method for assessing this product type.
Hoffmann: All projects I have worked on are quite dear to my heart, but generally, the ones I have enjoyed most were the ones where I had to collaborate with multiple teams and multiple stakeholders. They often offer the opportunity to combine laboratory work, fundamental science and project management, which are three different aspects of my work. They are quite different, and translating scientific language to business-relevant language is sometimes a bit challenging, but it is something I enjoy.
What advice would you give to someone considering your field of study?
Haswell: The advice I would give to anyone interested in a career in science is follow your passion and do what you love. For me, being a scientist is a privilege that I don’t take for granted as not everyone gets to do what they love as a career.
Cheung: If you have an interest in industrial science, go for it. There are lots of opportunities in the industry for both scientific and personal development.
Hanna: Science is an incredibly dynamic, exciting space to work in. Some days it can be challenging, and like anything else, there will be days when you want to walk away. However, if you stick with it, the days where things come together make it worth the work.
Hoffmann: My advice would be [to] follow your instinct and believe in yourself. I’m a firm believer that when there’s a will, there’s a way!
Santos: Toxicology is an exciting and very challenging field. If you want to work in an area where you can work on lots of different challenges, you should definitely consider toxicology. We use robust science and our expertise. Toxicology is an area where the demand will not stop growing in the coming years, and academia should take the lead in keeping toxicology programs available to young scientists.
Alliance One International and other reputable leaf merchants are working hard to ensure the children of their contracted farmers are at school rather than in the tobacco field. (Photo: Taco Tuinstra)
The elimination of forced labor in the tobacco supply chain is a top priority for Alliance One International.
By Kenneth Robeson
It’s a problem that can’t be ignored: a lot of the tobacco industry’s leaf is sourced in developing countries with loose labor laws and/or weak enforcement mechanisms. For example, last November U.S. Customs and Border Protection (CBP) issued a “withhold release order” on imports into the U.S. of tobacco from Malawi based on a suspicion that forced labor was used in Malawi to produce the country’s tobacco crop.
The U.S. Tariff Act defines “forced labor” as “All work or service which is exacted from any person under the menace of any penalty for its nonperformance and for which the worker does not offer himself voluntarily.” The term “forced labor or/and indentured labor” includes forced or indentured child labor.
Forced labor, says Nate Peeters, a spokesman for the Office of Public Affairs for the CBP, is “a global challenge that is not limited to a single industry, product or region. The International Labor Organization (ILO) estimates that forced labor affects nearly 25 million people and generates an estimated $150 billion in profits every year.”
Indeed, forced labor is a global challenge that hurts millions of workers each year. The State Department’s annual Trafficking in Persons Report and the Department of Labor’s International Child Labor and Forced Labor Reports offer specific information about countries and regions in which forced labor occurs. CBP issues withhold release orders based on allegations that forced labor was used to produce goods that are imported or that may be imported into the United States. Since September 2019, CBP investigated allegations of forced labor and issued withhold release orders on such products as hair accessories and garments manufactured in China, bone char produced in Brazil and disposable rubber gloves from Malaysia.
“Forced labor is a human rights violation that is antithetical to American values,” Peeters points out. “Companies that engage in forced labor subject their workers to threats of physical and sexual violence, withholding of wages, restriction of movement and other abuses. Moreover, imported goods made with forced labor undermine the ability of similar American-made products to be sold at a competitive price.”
Top priority
Michiel Reerink
To combat forced labor and other human rights violations in the tobacco business, leading leaf merchants, such as Alliance One International (AOI), are going to great lengths to ensure their supply chains comply with the highest standards.
The elimination of forced labor in global tobacco production “is a top priority for Alliance One International and all of our subsidiaries,” says Michiel Reerink, international corporate affairs director for AOI. “As part of our long-standing commitment, we purchase the vast majority of our tobacco through direct contracts with farmers, which helps ensure the crops we purchase are grown in compliance with our human rights policy, child labor policy and agricultural labor practices [ALP] program.”
Having found that poverty is a leading driver of forced labor globally, he continues, “we work closely with farmers to improve their crop quality and yield, thereby enhancing profitability. This can be one of the best long-term solutions [to creating long-term change]. Visibility into the supply chain is also important when addressing these issues.”
AOI’s team of field technicians works closely with contracted growers to identify the root causes of these issues and collaboratively develop an action plan that allows for true change to be implemented. In some cases, those root causes are systemic and involve cultural or regulatory issues that need to be overcome through long-term interventions and multi-stakeholder groups.
The company records farm-monitoring visits, including labor incidents, in its Sentri traceability platform. “This allows us to follow up with farmers to ensure action plans have been implemented and problems addressed,” Reerink explains. “In addition, it allows us to aggregate the results to focus our education and training and related CSR programs at the country/community level.”
Following this year’s withhold release orders on tobacco from Malawi, AOI has demonstrated to the satisfaction of CBP that there is no forced labor in its Malawi supply chain. In response, CBP lifted its restrictions on AOI imports of Malawi tobacco into the United States. As of June 3, 2020, tobacco imported from Malawi by AOI is again admissible at all U.S. ports of entry.
“From our perspective, labor challenges can be found throughout the global agricultural supply chain,” says Reerink. “Regardless of the country in which we are operating, we work with our contracted grower base to ensure their crops are produced in compliance with our various policies and programs which are aligned with the objective of eliminating forced labor.”
Reerink and his colleagues recognize that improving agricultural practices can take time, “particularly when we are attempting to change long-standing cultural practices, and we work with our contracted growers to implement new measures in ways that provide tangible benefits to them.”
In 2011, AOI introduced its ALP program worldwide. The standards in the program were designed to meet ILO standards. Through the program, the company monitors contracted farmers for compliance with numerous requirements to ensure the rights of farm workers are respected. Its policies and programs create a comprehensive framework that includes, among other restrictions, a prohibition against allowing anyone under the age of 18 to conduct any hazardous tasks, and utilizes a combination of grower education and training, farm monitoring, third-party audits and third-party stakeholder engagement to document and improve compliance.
For example, in Malawi, AOI personnel conduct farmer training and education in group settings as well as one-on-one during frequent farm-monitoring visits. In 2019, representatives visited each contracted farmer an average of 10 times per season. In 2019, they conducted over 139,000 individual farm visits there in a combination of announced, semi-announced and unannounced visits. Adds Reerink, “To help enhance awareness and comprehension of ALP, the local Alliance One Malawi team also created radio broadcasts and drama performances to expand understanding of the risks of child labor into the community.”
Multi-stakeholder involvement plays a key role in improving labor practices as they are often tied to long-standing cultural traditions. For example, once again in Malawi, in 2019 Alliance One Malawi established 179 ALP Village Committees involving farmers, village headmen, teachers and religious leaders trained by company staff. These committees were set up to promote public discussion about ALP, help farmers improve agronomic practices by gathering and sharing information, and encourage community buy-in, accelerating the implementation and acceptance of ALP among farmers and supporting ALP compliance within the community.
The protection of human rights is an agricultural sector issue, Reerink points out, not specific to the tobacco industry. “Some tobacco industry suppliers, including Alliance One, have taken actions with their respective contracted farmer bases that have led to significant improvements in the experiences of farmworkers. However, without the alignment and support of other tobacco suppliers and supply chains for other crops, implementing long-term solutions becomes much more of a challenge.” It will, he feels, take a continued multi-stakeholder effort to truly drive long-term change in labor practices and address some of the systemic challenges facing the agricultural supply chain.
Advertisement
Clear and direct message
The battle against forced labor is ongoing. CBP has a unique statutory authority to prevent goods made through forced labor from entering the United States. Its Office of Trade investigates allegations of forced labor and if substantiated, directs enforcement actions. CBP issues a withhold release order when it has information that reasonably indicates that goods produced using forced labor may be imported into the United States. These orders instruct CBP personnel at ports of entry to detain shipments that contain goods manufactured in whole or in part with forced labor. Withhold release orders “send a clear and direct message to the trade community that CBP will not tolerate forced labor in U.S. supply chains,” Peeters says.
Industry, Peeters suggests, has “the duty to exercise reasonable care and due diligence to ensure that goods produced with forced labor do not enter their supply chains. Companies are on the frontline and should use all available information about the conditions of forced labor in countries where goods are sourced from to ensure they do not import goods produced with forced labor.”
Maintaining transparency of company supply chains can help companies identify and remediate forced labor found in supply chains. CBP will continue to investigate allegations and pursue enforcement actions where evidence reasonably indicates that goods are manufactured with forced labor imported to the United States.
Getting consumers involved
Consumer awareness, CBP’s Nate Peeters insists, is essential for eliminating forced labor.
“Companies will not sell products that consumers do not buy,” he notes. “CBP urges consumers to ask for more details about where and how their products are made and to use their economic power to tell companies that forced labor is against American values.”
Generating and sustaining consumer awareness “is a challenge,” notes Peeters, “but one that is essential to addressing forced labor in U.S. supply chains.”
CBP has been working with its nongovernment and media partners to communicate forced labor enforcement actions to U.S. consumers through press releases, social media content and TV and radio appearances. It also continues to communicate frequently with the trade community about forced labor concerns and measures that companies can take to ensure that they have clean supply chains.
The agency urges consumers to ask for more details about where and how their products are made. “The great deals that can be found online and in stores may be inexpensive because the products were made through modern slavery,” Peeters points out. “Americans can use their economic power to tell businesses that we will not tolerate forced labor in U.S. supply chains.”
Philip Morris International (PMI) will participate in several global forums focused on equality in the workplace. Starting today, members of PMI’s senior management team—including Chief Diversity Officer Silke Muenster—will detail the steps PMI is taking to further diversify its workplace and explain how fostering a culture built on broader perspectives increases creativity and productivity, ultimately driving innovation and consumer-centricity.
For the fourth consecutive year, Reynolds American Inc. (RAI) has been certified as a “great place to work” and has again been named by Fortune as one of its 2020 Best Workplaces.
With more than 85 percent of employees stating that the company is a great place to work, these honors underscore Reynolds’ ongoing dedication to creating A Better Tomorrow by actively promoting and fostering an inclusive and positive work culture that supports the company’s success, according to the company.
Guy Meldrum
“We are extremely proud that our employees continue to have a positive and high-trust experience here at Reynolds, enabling us to once again be certified as a great place to work. We always strive to make our organization a place where all our employees thrive and always feel accepted, appreciated and valued,” said Guy Meldrum, president and CEO of RAI in a statement. “Our steadfast commitment to continuous learning and development, and also to living by our ethos and our diversity and inclusion principles, enables us to innovate, transform and drive better business results.”
RAI says attracting and retaining top talent is one of the key drivers of the transformation taking place at the firm. The company continues to implement progressive policies and programs, and offers first-in-class benefits, including:
A comprehensive parental leave policy with 16 weeks of paid leave for new parents
Employee resource groups comprising individuals with common interests or backgrounds and their allies
The Women of Transformation initiative, a corporate effort to highlight and celebrate innovative female leadership
On-site health clinics and cafeterias
Tuition reimbursement programs and company-wide bonus plans
Enhanced policies, programs and benefits aimed at optimizing employee safety and health, particularly during the Covid-19 pandemic
“Recruiting and developing a talented, high-performing workforce is our top priority,” said Anna Dolgikh, Reynolds’ senior vice president, human resources. “To drive our business forward, we have accelerated our efforts to develop a strong, diverse bench of transformational leaders across the organization and to enhance our support of employee volunteerism for civic and charitable causes.”
U.K. environment minister Rebecca Pow has threatened the tobacco industry with tough action unless it does a better job of controlling cigarette litter.
In letters sent to Philip Morris, Japan Tobacco International and the Tobacco Manufacturers Association (TMA), Pow described smoking-related litter as a particularly persistent and widespread problem
“I had hoped to see the TMA and the companies it represents work more proactively to deliver on the commitment it gave during the 2015 select committee inquiry on litter and fly-tipping.”
Pow said she was prepared to hold talks with the tobacco industry and Keep Britain Tidy (KBT) but kept open the option of additional steps if the roundtable yielded insufficient progress.
“We will have to reflect on what steps the government can take going forward to ensure that the tobacco industry takes increasing responsibility for the litter that its products create,” she said.
Pow warned this “could go beyond what KBT has proposed to the industry as a voluntary approach”.
The Environment Bill contains clauses that would allow the creation of an environmental permitting regulations scheme for tobacco filters.
Universal Corp. has welcomed a decision by U.S. Customs and Border Protection (CBP) to admit imports from its Limbe Leaf Tobacco Co. subsidiary in Malawi.
On Nov. 1, 2019, CBP issued a withhold release order (WRO) on imports into the U.S. of tobacco from Malawi based on a suspicion that forced labor was used in Malawi to produce the country’s tobacco crop.
Universal Corp. subsequently filed a comprehensive explanation of Limbe Leaf’s supply chain social compliance program, its efforts to identify and minimize the risks of forced labor on contracted farms from which it purchases tobacco in Malawi, and its ability to trace such tobacco once processed and shipped from the shipping vessel back to the individual farms on which it was produced.
CBP evaluated the company’s filing and concluded that Limbe Leaf’s program and on-farm efforts produced evidence that sufficiently supported the company’s claims that tobacco purchased from Limbe Leaf is not produced or harvested using forced labor.
The agency recently confirmed that tobacco imported from Limbe Leaf is again admissible at all U.S. ports of entry.
“Universal Corporation is committed to the sustainable production of tobacco,” said George C. Freeman III, chairman, president and CEO of Universal Corp. “Our commitment is evidenced by our Agricultural Labor Practices program and other sustainability policies, and by the implementation and maintenance of those programs and policies by our operations around the world. We are proud of Limbe Leaf’s dedication to the sustainable production of tobacco in Malawi, and we appreciate CBP’s recognition of those efforts.”
