BAT Recognized as a Leader in Sustainability in Manufacturing, Winner of the Croatian Sustainability Index Award

British American Tobacco (BAT) has been awarded the recognition for sustainable business – the Croatian Sustainability Index (HRIO), in the category ‘Environmental Management – Manufacturing’, according to a statement from the company.

HRIO evaluates the performance of companies in the application of sustainable practices, considering areas such as environmental protection, community relations, corporate governance, working environment, and human and children’s rights. As stated by BAT, the HRIO methodology is aligned with the latest European directives and standards, global ratings, and the Sustainable Development Goals. The recognition is awarded by the Croatian Business Council for Sustainable Development (HR PSOR) to domestic companies that promote sustainable practices in business by their example.

– BAT is in the process of a global transformation aimed at encouraging adult smokers to switch from cigarettes to less harmful alternatives. Croatia is at the center of this transformation thanks to investments in the production of new categories. In the last three years, BAT has launched an investment cycle worth 80 million euros, equipping the factory in Kanfanar with new production lines for smoke-free products – heated tobacco and heated non-tobacco variants. The modernization of production in Kanfanar has enabled a production volume increase of as much as 40 percent compared to 2021. Additionally, nearly 19 million euros have been invested in initiatives that strengthen sustainable business. This award is a confirmation of BAT’s strategic focus on sustainability, innovation, and responsible business, with the aim of creating ‘A Better Tomorrow’ (A Better Tomorrow™) for all stakeholders – from employees and consumers to the local community and the environment. We are proud that our efforts have been recognized and that Croatia acknowledges Kanfanar as an example of modern, responsible, and sustainable production, said Pavel Vereshak, Operations Director at BAT Adria.

This sole domestic manufacturer and exporter of cigarettes and smoke-free products in Croatia has invested over 700 million euros, including the acquisition of TDR.

Factory in Kanfanar – Sustainability in Practice

Investments in sustainability include a biomass thermal energy production facility worth 4.7 million euros. This has reduced the factory’s carbon emissions by 65 percent compared to 2017. Now, more than 85 percent of the total energy required for the factory’s operation is sourced from renewable sources.

Additionally, during 2024, more than 80 percent of the waste produced in Kanfanar will be recycled, and the factory operates on a principle of zero-waste to landfill, meaning that all factory waste is recycled or converted into energy, with no disposal in landfills.

The factory in Kanfanar holds an AWS certificate, recognizing its efforts in sustainable business and water management according to international certification standards of the Alliance for Water Stewardship (Alliance for Water Stewardship – AWS). During 2024, 43.6 percent of the total water used was recycled water, and by 2025, as much as 62 percent of the total water used by the factory will come from recycling.

Furthermore, BAT has introduced a Take Back Scheme program, which allows users to dispose of and recycle new category devices at over 200 sales points across Croatia, promoting responsible electronic waste disposal.

BAT in Croatia has a unique value chain that, in addition to the factory in Kanfanar, includes tobacco agricultural production in Slavonia and Podravina through Hrvatske duhane, a logistics hub in Pitomača that collects tobacco from as many as 26 countries and supplies factories in Poland, Germany, and Hungary, a logistics and distribution center in Rijeka, and the second largest national kiosk chain iNovine. BAT’s commercial office is located in Zagreb, from where it manages the Adria cluster covering eight markets. BAT employs over 1500 people in Croatia and supports over 6000 jobs across the country through its value chain.