Introduction by the Chief Executive

Managing our business responsibly is fundamental to our long-term success as we increase in size, expand into new geographies, face new regulatory challenges, and experience pressures as a result of the global economic crisis and issues such as climate change.

Our products are enjoyed by adult consumers in over 160 countries throughout the world. As a global manufacturer of tobacco products, we recognise the importance of manufacturing and selling our products responsibly to meet consumer demand. We recognise our responsibilities to our investors, to the people we employ, to our customers, consumers and suppliers, and to the communities in which we operate.

Many of the corporate responsibility (CR) related issues are not new to our business, but as they are affected by changes in our operating environment we must continue to appraise our approach and performance. To help us attain balance in our decisions and continue to deliver strong financial returns, it is important that we engage with our key stakeholders and listen to their views.

Our approach

See how we meet customer and consumer expectations

The way we approach CR and how it supports our commercial strategy has developed over the years. We have taken an increasingly strategic approach to promoting responsible behaviour, through defined governance structures, Group Principles and policies. We have established robust risk management procedures, further developed our non-financial performance reporting processes, and have made progress with our Five-for-Five CR Focus, which was launched last year.

Integration

The integration of Imperial Tobacco and Altadis has been a key focal point this year and as part of the integration process we have announced a number of restructuring projects which will ensure that we create a strong and sustainable future for the enlarged business. Regrettably, the projects will mean adjustments to our employee numbers and we remain focused on providing those affected with a comprehensive range of support measures.

Commitment

Clearly, integration applies to CR as it does to all the other aspects of the business and a number of specific CR initiatives have been defined. Our experienced CR team will have responsibility for managing these, whilst continuing to deliver the Five-for-Five.

We remain committed to running our company responsibly and I am delighted to introduce the 2008 CR Review. Here you will find details of our strategy and performance, as well as several case studies that demonstrate the tangible progress we continue to make. I thank all our employees who have contributed to our CR performance and to our recognition as a well-managed business.

Gareth Davis
Chief Executive