Supporting Our People & Communities 2020–2021
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Supporting Our People & Communities 2020–2021 Corporate Responsibility Progress INTRODUCTION BOOKMARK Altria’s tobacco companies are the undisputed market leaders in the U.S. tobacco industry, with profitable premium products, iconic brands and a strong American heritage stretching back more than 180 years. As the leader in an evolving industry, we have the duty and the opportunity to shape a better future for adult tobacco consumers, our employees and shareholders. Over the next 10 years, our Vision is to responsibly lead the transition of adult smokers to a non-combustible future. To achieve our Vision, we will pursue initiatives designed to promote the long-term welfare of our company, our stakeholders, society at large and the environment. We believe the actions we are taking will create a different Altria — and a different tobacco landscape that will benefit today’s adult tobacco consumers, our businesses and the thousands we employ. Our responsibility focus areas address the issues we believe are most important to drive this progress. Altria’s Responsibility Focus Areas ENVIRONMENTAL SOCIAL GOVERNANCE Drive Support Our Protect Reduce Harm Prevent Engage Responsibility the of Tobacco Underage People & & Lead Through Our Environment Products Use Responsibly Value Chain Communities Scope Why it Matters 2025 Goals Inclusion and diversity We expect to achieve our • Increase the diversity of our organization and leadership team while Vision by remaining an building an inclusive and equitable culture. Racial and economic equity employer of choice in a rapidly • Address systemic racism and advance social and economic equity in the evolving talent market — Positive impact through communities where we live and work. engagement and providing experiences that partnership help our workforce achieve • Drive business and social impact through engagement and partnership their full potential and with a diverse portfolio of stakeholders. Well-being of employees doing what’s right in our • Contribute to the well-being of our workforce and community stakeholders. and communities communities — investing, • Build the capability of our workforce and communities to successfully volunteering and collaborating Workforce and community navigate an uncertain and rapidly changing environment. capability building to drive positive change. ISSUED: APRIL 2021 2 Table of Contents What’s in this report? Introduction. 2 Through our 2020 materiality assessment, we identified Supporting Our People & Communities as a key Letter from Charlie Whitaker . 4 responsibility focus area to make progress toward our 10-Year Vision. Supporting our people and communities 2020 Performance Snapshot . 5 has always been an area of importance for our business. In 2020, we continued progress toward these goals while Our Approach . 7 accelerating our efforts with increased focus and intention. Over the next five years, it is important for us to lead the Inclusion and diversity . .9 way through our own actions and collaborate with our trusted partners to drive responsibility progress within and beyond our walls — among our employees and with Racial and economic equity . 14 our communities. Positive impact through engagement and partnership . 19 What’s not in this report? This report is not designed to provide a comprehensive Well-being of employees and communities . 25 review of the progress against all our responsibility focus areas. We will provide updates on our remaining focus areas throughout the year through a series of individual Workforce and community capability building . 30 “focus reports.” Our website, Altria.com, provides additional responsibility content including our most recent Engage and Lead report. Reporting Disclosure. This disclosure is guided by the Global Reporting Initiative (GRI), the leading sustainability reporting framework, and the disclosure standards set forth by the Sustainability Accounting Standards Board (SASB). You can find our 2020 GRI and 1 Responsibly Leading the Way SASB disclosure indices and tables on Altria.com. 2019 Corporate Responsibility Progress Report 1Updated July 2021. Notes: Some images in this report feature unmasked employees who are not maintaining 6 feet of physical distance. These photos were taken prior to the beginning of COVID-19 impacts in Richmond, VA, which began in mid- March, 2020. Throughout, metrics reported for inclusion and diversity and from Our Voice employee survey do not include ISSUED: APRIL 2021 Ste. Michelle Wine Estates. All Our Voice employee survey metrics represent only salaried employees — hourly workforce data was still being analyzed at the time of publication due to a separate data collection method. 3 A Note from Charlie Whitaker “This work is driven by As I reflect on the challenges of the past year — challenges to Altria’s businesses and in the work and personal lives of our employees — I am in awe of our employees’ agility, stamina and resilience. Mostly, the dimensionality of our I’m impressed with how they supported each other and met those challenges together. We are a high- people — as employees, performing organization, committed to strong results and to achieving them while pursuing Our Cultural community members Aspiration — no matter how difficult the circumstances. I am proud to work with thousands of colleagues, whether in manufacturing centers, office buildings or in the field sales force, who strive toshape our and passionate citizens of future, do what’s right, care for each other, deliver for our consumers and customers, and rise to the world. Together, our — the five components of Our Cultural Aspiration. the challenge, together commitment ... will create Amidst the year’s challenges, we re-examined our focus on responsibility in the context of how we will achieve our 10-year Vision and the expectations of our employees, community partners and other the organization and culture stakeholders. Our compensation, benefits, culture and commitment to community investment and necessary to achieve our volunteerism have long helped us attract, retain and engage the best employees. And we know to achieve long-term success.” our 10-year Vision, we must continue to invest in our employees to help them perform their best. However, employees increasingly expect their companies to help solve societal issues, both those closely linked to their business and those that affect their lives in ways that can prevent them from bringing their complete Charlie Whitaker selves to work. So we reaffirmed our focus on developing talent and culture and connected that focus Senior Vice President to the work we do in our communities. That work is driven by the dimensionality of our people — as Chief Human Resources Officer employees, community members and passionate citizens of the world. Together, our commitment to improve our communities, our Inclusion and Diversity (I&D) Aiming Points and Our Cultural Aspiration will Chief Compliance Officer create the organization and culture necessary to achieve our long-term success. Altria Group, Inc. Another evolution in 2020 was our decision to broaden our focus on inclusion and diversity to include equity. More than ever, investors, consumers and employees are holding companies accountable in their response to certain societal issues and expect businesses to take action. This is certainly the case with issues of race and equity, which have come to the forefront in our country. Altria has committed to address systemic racism and advance social and economic equity, both internally and externally. We’ll pursue a multi-year community investment strategy, improve our employee experience by making progress toward our I&D Aiming Points and continue to identify additional actions where Altria can contribute to lasting, positive impact on these important issues. Our responsibility focus area to Support Our People & Communities recognizes that our community includes our talented workforce, our business partners, our suppliers and customers, and citizens in the communities where we operate. I am proud of the progress we’ve made. And our sustained efforts, championed by our incredible employees, will help us continue making advances in Supporting Our People & Communities for years to come. ISSUED: APRIL 2021 4 2020 Performance Snapshot Inclusion and diversity Racial and economic equity Employee Demographics1 § Contributed $1 million to the National Urban League to invest in its 63.1% White Equitable Justice and Democracy initiative, supporting individual civic action 25.3% Black and participation, including voting-related efforts such as 35% voter education and registration initiatives 4.1% Hispanic Female 4.4% Asian or Pacific Islander § Made contributions totaling $800,000 to several Richmond-based Two or more 65% 2.2% Male organizations supporting Black business recovery funds, entrepreneurism, <1% American Indian/Alaskan access to capital and business technical assistance <1% Did not disclose § Altria Client Services (ALCS) Procurement department partnerships on new Pay Equity2 In 2020, salaries of Altria’s In 2020, salaries of non-white investments in regional and national supplier diversity organizations female employees were Altria employees are To help address inequities in basic household stability § 99.4% 99.6% and resiliency through affordable housing,gave $1.75 to those of their of white employees' salaries equal million to Richmond Better Housing Coalition male colleagues performing the same or similar duties. § Contributed $500,000 to help seed the Richmond