Reynolds American Inc. Progresses on ESG Journey by Transitioning to Hybrid and Electric Vehicle Fleet

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Jul 25, 2022, 10:00 ET

By 2025, Reynolds expects to reduce carbon emissions by over 1,000 tons a year from vehicles in fleet

WINSTON-SALEM, N.C., July 25, 2022 /PRNewswire/ -- Reynolds American Inc., the BAT Group's U.S. subsidiary, and its companies (Reynolds) is advancing its Environmental, Social & Governance (ESG) goals by transitioning its current 1,800+ vehicle trade and operations fleet to hybrid and electric models. The move will replace aging vehicles on a rolling basis over the next three years, resulting in a projected annual 1000+ ton reduction in carbon emissions.

"Our sales and trade marketing representatives average nearly 27,000 miles a year in their territories across the fifty states – that's a lot of time on the road," said Ed Mirana, Senior Vice President, National Sales and Strategic Accounts at Reynolds. "With this move to hybrid vehicles, our sales and operations teams are driving progress on our sustainability ambitions."

Reynolds is collaborating with Ford Pro to transition its current fleet to a mix of vehicle models, including the Escape SEL Hybrid, Explorer Limited Hybrid, Ford E-Transit, and Ford-150 Lightning. Included in the 1,800+ fleet are nearly 50 light-duty Operations vehicles used across Reynolds' North Carolina and Tennessee facilities, which will be transitioned to a combination of hybrid and electric models as part of this initiative.

"We continue to push for new ways to reduce our use of resources and environmental impact. We have a bold global ambition for carbon-neutral operations by 2030, and reducing carbon emissions in our fleet is an important step on this journey. In addition, by 2024, more than 95% of all industrial vehicles used in Operations will be electric," said Bernd Meyer, Executive Vice President of Operations at Reynolds. "With these significant changes and investments over the next few years, we are currently on track to meet a fleet carbon emission reduction of 50% by 2025."

In 2022, approximately 650 hybrid and electric vehicles will replace internal combustible engine vehicles organization-wide.

Reynolds joins the BAT Group's growing list of markets across the globe, including Australia, Colombia, Germany, Mexico, and the Netherlands, where trade and operations fleet transitions to hybrid and electric vehicles are well underway.

About Reynolds American Inc.

Reynolds American Inc. is a wholly-owned subsidiary of the BAT Group and the U.S. parent company of R.J. Reynolds Tobacco Company, Santa Fe Natural Tobacco Company, Inc., American Snuff Company, LLC, R.J. Reynolds Vapor Company, and Modoral Brands Inc. To learn more about Reynolds American Inc. and its operating companies, please visit www.reynoldsamerican.com.

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Forward Looking Statements
This release contains certain forward-looking statements, including "forward-looking" statements made within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as "believe," "anticipate," "could," "may," "would," "should," "intend," "plan," "potential," "predict," "will," "expect," "estimate," "project," "positioned," "strategy," "outlook", "target" and similar expressions. These include statements regarding our ESG targets.

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SOURCE Reynolds American Inc.