Imperial Brands (IMB) ESG Update summary

Governance and Oversight

• ESG priorities are aligned with UN SDGs and embedded in operations, with oversight from dedicated committees, including an expanded People, Governance & Sustainability Committee meeting quarterly.

• Board diversity increased to 45% female and broader ethnic representation, with board size growing from 9 to 11 since 2020 and enhanced skills in innovation, ESG, and technology.

• Rigorous internal and external assurance for ESG data, including a dedicated head of non-financial reporting, external audits, and CSRD compliance preparations.

• Refreshed policies on conduct, supplier standards, human rights, and health and safety, with a new group code of conduct emphasizing a speak-up culture.

• ESG metrics are integrated into executive remuneration, with clear accountability and regular progress reviews.

Performance Culture and Diversity

• Performance-based culture underpins ESG delivery, focusing on zero carbon, zero waste, and zero injuries, with cross-functional teams and clear KPIs.

• Board and executive diversity initiatives increased female representation to 45% and ethnic diversity to 18% at senior levels.

• ESG community of 50 leaders and experts drives collaboration and best practice sharing.

• Employee resource groups and targeted recruitment support a comprehensive D&I strategy.

Consumer Health and Harm Reduction

• 41% growth in NGP net revenue from FY21 to FY23, supporting tobacco harm reduction through consumer-centric innovation and scientific validation.

• Multi-category approach to harm reduction, with strict marketing codes and age verification to prevent youth access.

• Scientific assessment framework and studies show up to 99% reduction in harmful chemicals and substantial reductions in toxicity and biomarkers for NGPs compared to cigarettes.

• In-market studies show up to 50% of consumers fully switch or reduce smoking using NGPs.

• No evidence that vaping acts as a gateway to smoking; public health data supports harm reduction potential.