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BAT Science & Innovation Report 2020-2021 Science & Innovation Report 2020–2021 BAT Science & Innovation Report 2020–2021 Our Journey Our Science COVID-19 New Capabilities People & Community Look to the Future 02 Contents Our Journey 02 Welcome by Dr David O’Reilly 03 Tobacco Harm Reduction 05 Research Priorities 07 Response to COVID-19 10 Our Science 12 Science Engagement 12 Vapour Products 13 Tobacco Heating Products 19 Modern Oral Products 25 Bridging Science 28 COVID-19 31 Vaccine Development 31 New Capabilities 33 New Sciences 33 Organigram Collaboration 36 Battery Lab 39 Sensory Science 41 People & Community 43 Diversity & Inclusion 43 Women in STEM 45 New Talent 48 International Opportunities 51 Community Relationships 54 Look to the Future 56 Summary by Dr David O’Reilly 56 References 59 BAT Science & Innovation Report 2020–2021 Our Journey Our Science COVID-19 New Capabilities People & Community Look to the Future 03 Welcome by Dr David O’Reilly Science is the driving force of today’s society and Through our dedication to science and diverse skills we scientists are forever pushing at the boundaries to undertake a broad range of activities, such as running Inspired discover solutions that will transform all of our lives. COVID-19 testing for some of the local NHS services The pandemic showed us that science has never near our R&D headquarters, to generating new evidence been more important to the way we live, work, and about our products. This is the evidence that helps us function. It protects us in ways that we sometimes to scientifically substantiate their role in tobacco harm by people reduction and, we hope, encourage and enable current overlook which is why, across the world, the work of scientists is being studied and celebrated with smokers to stop smoking combustible cigarettes and increased excitement. completely switch to a reduced-risk*† alternative. Powered As a business, we are also at that scientific forefront, demonstrating a relentless commitment to our core purpose – to build A Better Tomorrow™ for our by science consumers, society, employees, and shareholders. Despite the challenges we have all faced in these past months, our team has continued to focus on how science can move us towards that purpose and we invest over Delivered £350 million each year in R&D. by BAT I hope this thought-provoking report inspires you as much as it does me, and that you will join us on this journey of innovation. Dr David O’Reilly Director Scientific Research * Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. † Our products as sold in the US, including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance. BAT Science & Innovation Report 2020–2021 Our Journey Our Science COVID-19 New Capabilities People & Community Look to the Future 04 Welcome by Dr David O’Reilly Our biotech subsidiary is also continuing its pioneering We set ourselves a number of stretching targets that work on a candidate vaccine for COVID-19, which we we are confident we can deliver and which will accelerate hope can help play a role in fighting this global pandemic our purpose to deliver A Better Tomorrow™ for all our This is just the start, and its after-effects. It forms part of our small but stakeholders, including: emerging vaccines portfolio and sits alongside our as I know we want to deliver candidate Quadrivalent Influenza Vaccine (QIV), which more transformative benefits, is in Phase I. proving how relentless we are In 2020, we also announced our plans to go Beyond 2025 Nicotine, providing adult consumers with products to in our pursuit of excellence, Eliminating unnecessary stimulate their senses. This coincided with the launch single-use plastic and our commitment to of our first CBD vaping product. packaging and making all plastic packaging ground-breaking science. This report outlines some of the major achievements reusable, recyclable, BAT has delivered through science and innovation. or compostable by 2025 By reflecting on them, we can better understand our future and share how we are moving into a bold new era of consumer products, cutting-edge science and 2030 next-level digital capabilities. We are committed to making a step change in our New Increasing our consumers of non-combustible Category products performance and in our sustainability products to 50 million ambition. Reducing the health impact of our business is by 2030 our principal focus and we are also committed to helping address climate change and protecting the environment. 2030 Achieving carbon neutrality by 20301 1 Based on Scope 1 and 2 carbon dioxide equivalent (CO2e) emissions. BAT Science & Innovation Report 2020–2021 Our Journey Our Science COVID-19 New Capabilities People & Community Look to the Future 05 Tobacco Harm Reduction Our purpose is to build A Better Tomorrow™ by Firstly, we are committed to providing adult consumers reducing the health impact of our business. It’s why with a wide range of enjoyable and less risky*† products. we invest almost £350 million a year to find innovative Secondly, we make it clear that combustible cigarettes new ways to contribute to Tobacco Harm Reduction, pose serious health risks. And, thirdly, we encourage and aim to have 50 million consumers of our non- those smokers who would otherwise continue to smoke, combustible products by 2030. to switch completely to scientifically-substantiated, reduced-risk*† alternatives. Our unique strategy is designed to capitalise on our vast innovation expertise, emerging evidence, and range of To further consumer choice, we have three New A clear purpose products, so they can be accessed by adult consumers Categories – Vapour Products, Tobacco Heating and other interested stakeholders, such as scientists, Products and Modern Oral Products. All adhere to strict that drives our investors, and public health bodies. product quality standards, undergoing thousands of research and hours of testing before they reach the consumer. * Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. † Our products as sold in the US, including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products innovation without agency clearance. Our world-class and transparent science means consumers can understand and trust in the performance, quality and harm reduction potential of our products. Dr David O’Reilly Director, Scientific Research BAT Science & Innovation Report 2020–2021 Our Journey Our Science COVID-19 New Capabilities People & Community Look to the Future 06 Tobacco Harm Reduction The scientific evidence Vapour Products There is growing consensus among many members of the In the UK, for example, Public Health England has published public health community and academics about the role of a series of expert reviews of the latest evidence, drawing on vapour products as a reduced-risk*† alternative to smoking. peer-reviewed literature, surveys and other reports, concluding: This is supported by a wealth of other evidence reviews, “based on current knowledge, vaping is at least 95% less harmful studies and reports throughout the world1. than smoking”. Tobacco Heating Products (THPs) By heating tobacco rather than burning, THPs have the potential And, in 2018, Public Health England, while highlighting the need to be reduced risk* compared to smoking. Although most research for more research, found that “compared with cigarettes, heated has been conducted by the industry, an increasing number of tobacco products are likely to expose users and bystanders to independent reports are broadly aligned with our findings and lower levels of particulate matter, and harmful and potentially support the role of THPs as a less risky*† alternative. harmful compounds3.” For example, a study commissioned by the UK Department More long-term studies are needed which is why we launched our of Health in 2017 found that people using THPs were exposed year-long clinical study to evaluate the reduced-risk potential of to around 50–90% less of the “harmful and potentially harmful” glo, our flagship THP. The six-month data show that smokers who compounds compared with conventional cigarettes2. switched exclusively to glo significantly reduced their exposure to some of the most harmful cigarette smoke toxicants, some to a level found in participants who had stopped smoking entirely4. Modern Oral Products A wealth of epidemiological evidence from Sweden over many Our own research has shown that our Modern Oral Products decades shows that use of snus, a type of traditional oral tobacco, have even fewer and lower levels of toxicants than observed is substantially less risky than smoking. This has been confirmed in snus, and toxicological studies have shown that modern oral by the US FDA which, in 2019, formally recognised that switching products have even lower impact on human cells than snus6.** completely from cigarettes to a snus product can lower the risks We are confident that further research will support our belief of mouth cancer, heart disease, lung cancer, stroke, emphysema that consumers of modern oral products will be exposed to even and chronic bronchitis5. fewer toxicants than snus users and modern oral products can be expected to present lower risk than continued cigarette smoking. * Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive. † Our products as sold in the US, including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance. **Comparison based on an assessment of smoke from a scientific standard reference cigarette (approximately 9 mg tar) and components released during use of a commercial snus (tobacco) pouch and a Velo (nicotine) pouch, in terms of the average of the nine harmful components WHO recommends to reduce in cigarette smoke.
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