Your CDP Climate Change Questionnaire 2021 C0. Introduction
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Altria Group, Inc. CDP Climate Change Questionnaire 2021 Wednesday, July 28, 2021 Welcome to your CDP Climate Change Questionnaire 2021 C0. Introduction C0.1 (C0.1) Give a general description and introduction to your organization. Altria Group, Inc. (“Altria”) is headquartered in Richmond, Virginia. Our tobacco companies include some of the most enduring names in American business: Philip Morris USA (“PM USA”), the maker of Marlboro cigarettes, and U.S. Smokeless Tobacco Company (“USSTC”), the maker of Copenhagen and Skoal. We also own John Middleton (“JMC”), manufacturer of Black & Mild cigars. Altria's non-combustible portfolio includes ownership of Helix Innovations LLC (Helix), the maker of on! oral nicotine pouches, exclusive U.S. commercialization rights to the IQOS Tobacco Heating System® and Marlboro HeatSticks®, and an equity investment in JUUL Labs, Inc. (JUUL). We complement our total tobacco platform with our ownership of Ste. Michelle Wine Estates (“SMWE”), a collection of distinctive wine estates, and our significant equity investment in Anheuser-Busch InBev (“AB InBev”), the world's largest brewer. In July 2021, we announced the sale of SMWE and expect the transaction to close in the second half of 2021; this response reflects ownership of SMWE in 2020. Our significant stake in Cronos Group (“Cronos”), a leading global cannabinoid company, represents an exciting new global growth opportunity. Altria also owns Philip Morris Capital Corporation (“PMCC”) and service companies Altria Client Services (“ALCS”), which provides services to Altria and its companies, and Altria Group Distribution Company (“AGDC”) that provides sales, distribution and consumer engagement services to Altria's tobacco companies. Our Vision through 2030 is to responsibly lead the transition of adult smokers to a non-combustible future. This response is a summary of progress on Altria’s CDP Climate Change questionnaire and is not exhaustive of all information on this topic. Certain statements in this questionnaire are “forward-looking statements” within the meaning of Private Securities Litigation Reform Act of 1995. Such forward- looking statements are based on current plans, estimates and expectations and projections, and are not guarantees of future performance. They are based on management’s beliefs, projections or expectations that involve a number of risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Altria undertakes no obligation to publicly update or revise any 1 Altria Group, Inc. CDP Climate Change Questionnaire 2021 Wednesday, July 28, 2021 forward-looking statement in this questionnaire. The risks and uncertainties relating to the forward-looking statements in this questionnaire include those described in Altria’s publicly filed reports, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. C0.2 (C0.2) State the start and end date of the year for which you are reporting data. Start date End date Indicate if you are providing emissions data for past reporting years Reporting year January 1, 2020 December 31, 2020 No C0.3 (C0.3) Select the countries/areas for which you will be supplying data. United States of America C0.4 (C0.4) Select the currency used for all financial information disclosed throughout your response. USD C0.5 (C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory. Operational control C-AC0.6/C-FB0.6/C-PF0.6 (C-AC0.6/C-FB0.6/C-PF0.6) Are emissions from agricultural/forestry, processing/manufacturing, distribution activities or emissions from the consumption of your products – whether in your direct operations or in other parts of your value chain – relevant to your current CDP climate change disclosure? 2 Altria Group, Inc. CDP Climate Change Questionnaire 2021 Wednesday, July 28, 2021 Relevance Agriculture/Forestry Both own land and elsewhere in the value chain [Agriculture/Forestry only] Processing/Manufacturing Both direct operations and elsewhere in the value chain [Processing/manufacturing/Distribution only] Distribution Both direct operations and elsewhere in the value chain [Processing/manufacturing/Distribution only] Consumption Yes [Consumption only] C-AC0.7/C-FB0.7/C-PF0.7 (C-AC0.7/C-FB0.7/C-PF0.7) Which agricultural commodity(ies) that your organization produces and/or sources are the most significant to your business by revenue? Select up to five. Agricultural commodity Tobacco % of revenue dependent on this agricultural commodity More than 80% Produced or sourced Sourced Please explain Altria's tobacco operating companies, which represent over 97% of Altria’s revenues, source tobacco grown in the United States as well as from farmers across the globe. Agricultural commodity Other, please specify 3 Altria Group, Inc. CDP Climate Change Questionnaire 2021 Wednesday, July 28, 2021 Wine Grapes % of revenue dependent on this agricultural commodity Less than 10% Produced or sourced Both Please explain Ste. Michelle Wine Estates, which represents less than 3% of Altria’s revenues, owns and operates over 2,900 acres of prime vineyards, and additionally contracts for grapes from long-term grape growers on approximately another 26,000 acres. C1. Governance C1.1 (C1.1) Is there board-level oversight of climate-related issues within your organization? Yes C1.1a (C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues. Position of Please explain individual(s) Board-level Altria’s Board of Directors’ Nominating, Corporate Governance and Social Responsibility Committee provides oversight of our public committee affairs, corporate reputation and environmental and social responsibility strategies. The Committee is responsible for: reviewing key environmental trends, including climate-related issues, in order to determine whether we should consider additional actions; considering the impact of business operations and business practices on the communities where we do business; and reviewing environmental 4 Altria Group, Inc. CDP Climate Change Questionnaire 2021 Wednesday, July 28, 2021 initiatives and goals and progress towards achieving those goals, including those that are climate-related. In 2020, an example of a board-level decision related to climate is the Committee reviews and approves annually our charitable contributions budget, which in 2020 included funding for environmental non-profits implementing tree planting and sustainable agriculture projects. These projects directly support our long-term water neutrality target and our Scope 3 emissions science-based target. C1.1b (C1.1b) Provide further details on the board’s oversight of climate-related issues. Frequency with which Governance mechanisms into Please explain climate-related issues which climate-related issues are a scheduled agenda are integrated item Scheduled – some Reviewing and guiding risk The Nominating, Corporate Governance and Social Responsibility Committee is regularly meetings management policies briefed on our corporate responsibility strategies, including environmental and climate Reviewing and guiding business change-related issues, by the Senior Vice President of Corporate Citizenship. This includes plans Committee review of the implementation and performance against our long-term Monitoring implementation and environmental targets, including our Scope 1 and 2 greenhouse gas emissions reduction performance of objectives target, as well as briefing on any significant near or longer-term business plans, major plans of action and strategy at the corporate and operating company level as related to climate Monitoring and overseeing risks and opportunities, such as Altria’s commitment to the Science Based Targets initiative. progress against goals and If a climate-related risk is identified as an enterprise risk under Altria’s Enterprise Risk targets for addressing climate- Management process, the Board would be briefed and would review proposed business related issues plans to mitigate the risk. C1.2 (C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues. 5 Altria Group, Inc. CDP Climate Change Questionnaire 2021 Wednesday, July 28, 2021 Name of the position(s) and/or Responsibility Frequency of reporting to the board on climate- committee(s) related issues Other C-Suite Officer, please specify Both assessing and managing climate-related risks and Quarterly SVP, Corporate Citizenship opportunities C1.2a (C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate-related issues are monitored (do not include the names of individuals). Our Senior Vice President of Corporate Citizenship reports directly to the CEO and briefs the Board of Directors on climate-related issues and is considered the equivalent of a CSO position. This person has responsibility for climate-related issues because they lead our corporate environmental strategy at the highest-level and has the influence/resources to act on climate-related issues in alignment with our Vision. The SVP of Corporate Citizenship works with the Executive Leadership team and teams across Altria’s companies to establish annual plans, track progress