Imperial Brands Plc

OWNERSHIP

Publicly Traded

RANK

(out of 15)

FINAL SCORE

2.47

(out of 5)

Operating Environment

Imperial Brands Plc (Imperial) operates in all four Index Regions, and in 28 of the 36 Index Countries. Its top five countries by Volume Sales are the USA, Germany, the UK, Spain, and Russia.

Imperial operates across HMICs (21 Index Countries) and LMICs (seven Index Countries).

Imperial’s product portfolio consists of cigarettes, fine cut tobacco, cigars, cigarillos, pipe tobacco, e-liquids, closed system vaping products, non-tobacco nicotine pouches and heated tobacco.

Publicly Stated Position on Tobacco Harm Reduction

“We understand society’s concerns about the health risks of smoking and recognise our role in helping to reduce the harm caused by combustible tobacco products. We are committed to strengthening our Next Generation Products (NGP) performance and in doing so, to making a more meaningful contribution to harm reduction by offering adult smokers a range of potentially less harmful products. We are committed to tobacco harm reduction.”
(Imperial, Annual Report and Accounts 2021).

Change Since 2020 Index

Imperial’s Product Sales category score declined following the “strategic exit” of RRPs in Russia (MyBlu closed system vaping product) and Japan (Pulze heated tobacco, Myblu nicotine-free closed system vaping product) in 2021.

Imperial’s Product Offer category score also declined as the number of countries in which Imperial sold RRPs declined.

Category Scores

Strategy & Management

Imperial publicly acknowledges its role in, and has made a formal commitment to reducing, tobacco-related death and disease, as part of its “Forging a Path for a Healthier Future” vision.

Imperial has an objective related to tobacco harm reduction (including a “contribution to a healthier future for our consumers and society through potentially reduced risk products” ), but the objective is not time-bound or measurable.

Product Sales

Imperial has the fifth-highest Volume Sales of HRPs (2021: 268.5 billion stick equivalents).

With 1.3% of its total volumes coming from RRPs, Imperial has the eighth-highest score for Ratio of Volume Sales (RRPs versus HRPs).

Capital Allocation & Expenditure

At 73%, Imperial’s allocation of R&D Expenditure on RRPs (versus its total R&D expenditure) is the sixth-highest of the Index Companies.

At 38%, Imperial’s allocation of Capital Expenditure (RRPs versus HRPs) ranks it in fifth place.

Product Offer

Imperial offers HRPs (cigarettes, fine cut tobacco, cigars, cigarillos, pipe tobacco) in 27 Index Countries, and RRPs (e-liquids, closed system vaping products, non-tobacco nicotine pouches, heated tobacco) in 12 Index Countries.

In terms of product categories, Imperial has five HRPs, compared to four RRPs, in its portfolio.

Marketing Policy & Compliance

Imperial’s Youth Access Prevention Policy (“Prohibit Sales to Those Under the Age of 18 Worldwide” principle) is outlined in its Code of Conduct, which is published on Imperial’s corporate website.

Imperial discloses the numbers but not the details of reported violations of its Youth Access Prevention Policy.

Lobbying & Advocacy

Imperial discloses its policy positions related to tobacco harm reduction in the “Our Beliefs” section of its corporate website.

Imperial does not disclose specific lobbying activities and memberships in all jurisdictions in which it operates.

Net Value Sales

In 2021

High-Risk Products

96.0%

Reduced-Risk Products

4.0%

Products Offered

In 2021

High-Risk Products

Reduced-Risk Products

Capital Allocation & Expenditure

In 2021

High-Risk Products

55.0%

Reduced-Risk Products

45.0%

ppts = Difference in percentage between 2021 and 2019