BAT Malaysia's Johor Bahru Factory Achieves Carbon Neutrality

Factory’s new solar power system to generate savings of RM1 million over 20 years

BAT Malaysia's Johor Bahru Factory Achieves Carbon Neutrality
(from left) Mohan Baskaran, BAT Malaysia’s Johor factory manager; Remeena Prabhakaran, Supply Chain Director of BAT Malaysia; Yang Berusaha Tuan Sazali Bin Mohamad, Pengarah Kastam Negeri Johor and Bryce Matthew Green, Commercial Marketing Director of BAT Malaysia at the launch of BAT Malaysia’s solar power system at its Johor factory yesterday.

Bukit Damansara, 5th July  2022 – British American Tobacco (Malaysia) Berhad  has achieved carbon neutrality for its Johor Bahru factory, further reaffirming the group’s commitment to achieve net zero emissions by 2050.

The certification received by the Group, is in accordance with PAS 2060, the internationally recognised specification for carbon neutrality for the period 1 December 2020 to 30 November 2021.

This milestone was announced today, during the launch of the factory’s solar power system, which was inaugurated by Yang Berusaha Tuan Sazali Bin Mohamad, Pengarah Kastam Negeri Johor.

The solar power system, which was fully installed in May 2022 will generate some 103Mwh (megawatt-hour) energy annually, powering approximately 60% of the factory through the year. In total, the solar power system will generate savings close to RM1 million over 20 years.

Carbon Neutrality

According to Bryce Green, Commercial Marketing Director of BAT Malaysia, “Businesses have a profound opportunity to help build a more sustainable future. Climate action can be the foundation for a new era of innovative potential, job creation, and economic growth.”

“We are proud to officially launch our solar power system today, which is testament to our passion in building A Better TomorrowTM for all stakeholders, and key to our achievement of the carbon neutrality status.

"This global certification follows years of reductions made at every stage of our supply chain, and is part of a clear ambition that we have set for ourselves in reducing emissions across all our business units.”

The main contributors to BAT Malaysia’s GHG emissions are its factory, fleet and electricity usage. In 2021, the Group achieved a reduction in total carbon emissions by 10.5% compared to previous year.

This was mainly due to various initiatives, including the restructuring of its business model and energy-saving campaigns. By 2030, the Group is committed to use 100% renewable energy, reduce scope 1 and 2 emissions by 30% and scope 3 (all other indirect GHG emissions) by 50% with 2017 as the baseline.

BAT Malaysia’s Johor Bahru factory is a manufacturing unit that manufactures, stores finished-good cigarettes, and imports tobacco raw materials.

Optimization

Within 24 months from the commencement of its operation in Johor, the factory was able to make a remarkable reduction of its carbon footprint by 40% through various initiatives such as shift optimization, improved air conditioning usage, embedding sustainability awareness, and reduction of electricity consumption through motion sensors and usage of energy saving devices.

The overall carbon emission for the Johor Bahru factory for 2021 was computed at 91.0 tCO2e/year.

“We are proud of our environmental journey and the ambitious roadmap we have set for the future to achieve net zero emissions by 2050. We are focused on, committed to, and motivated by this objective, and we will achieve it, thanks to the passion and the continued efforts of our people to reduce carbon footprint. Structures and processes are in place to conduct robust reviews on initiatives pertaining to the environment key performance indicators,” comments Remeena Prabhakaran, Operations Director of BAT Malaysia.

Notes:

  • Carbon neutrality means not adding new GHG emissions to the atmosphere. Where emissions continue, they must be offset by absorbing an equivalent amount from the atmosphere, for example through carbon capture and reforestation.
  • Data recording and calculations for the carbon neutrality certification is based on the Greenhouse Gas Protocol Guide, CDP Guidance. The emission conversion factors are in accordance with local Malaysian Authority’s published carbon conversion rate from Sustainable Energy Development Authority CO2 emission factor, and GHG Protocol emissions factor. This is a PAS2060 recognised method.
  • tCO2e stands for tonnes (t) of carbon dioxide (CO2) equivalent (e). “Carbon dioxide equivalent” is a standard unit for counting GHG emissions regardless of whether they are from carbon dioxide or another gas, such as methane.