Audits & Assessments
R.J. Reynolds itself, and on behalf of the other RAI tobacco operating companies with which it has service agreements, has a comprehensive program of audits and assessments throughout our tobacco procurement supply chain. Through these processes, we review environmental and social risks inherent in agricultural work for both domestic growers with which we contract directly and domestic and international suppliers from which we purchase leaf.
R.J. Reynolds itself, and on behalf of its affiliates that purchase tobacco, relies on third-party auditors to audit growers’ compliance with Good Agricultural Practices (GAP) standards, including environmental, agronomic and labor practices and standards. In addition to third-party audits, the company also conducts assessments in which an employee of R.J. Reynolds visits a farm and assesses compliance with GAP standards.
Farm audits include personal interviews with a minimum of 20 percent of the workforce present on the day of the assessment. Interviews occur outside the presence of the grower and are an important source of information about labor practices. R.J. Reynolds was the first company to include such interviews in its audits, and the first to make them public.
Our 2017 goal was to audit or assess 33 percent of contracted growers in the U.S. against GAP standards and our grower code of conduct. Arche Advisors audited 340 growers at 293 sites (multiple growers may be associated with a single site). During these audits, Arche conducted 443 farm worker interviews. R.J. Reynolds personnel assessed another 377 growers. As a result, 717 growers, or 36 percent of the grower base, were audited or assessed in 2017.
Since 2011, we have audited a significant number of our U.S. grower base.
|Year||Third-Party Audits||Assessments||Contracted Growers||% Audited or Assessed|
In addition to directly contracted growers, R.J. Reynolds and its affiliates who purchase tobacco also audit contracted leaf suppliers. R.J. Reynolds contracts AB Sustain, an international auditing organization, to conduct third-party audits of all tobacco leaf suppliers that sell tobacco to R.J. Reynolds, ASC and SFNTC. AB Sustain’s Sustainable Tobacco Production (STP) program has become the industry standard in tobacco production, providing guidance and support, validation, and a step-based approach to facilitate continuous improvement. This program provides a platform for periodic review of our leaf supply chain and covers key sustainability areas, such as:
Through the STP program, we monitor leaf suppliers’ performance against criteria pertaining to sustainability and create an environment of knowledge transfer, capacity building and continuous improvement within our leaf supplier base. Tobacco suppliers complete an online self-assessment annually, which allows them to assess their performance and identify improvement opportunities.
AB Sustain performs on-site verification reviews of all suppliers in the program at least every three years. These audits ensure suppliers are accurately responding to the STP questionnaire and verify a supplier’s responses against documented evidence. Suppliers are provided with feedback to help them advance their environmental and social footprints and perform any necessary corrective actions. The R.J. Reynolds leaf procurement leadership team meets quarterly to review STP submissions and supplier progress.
R.J. Reynolds, as a supplier of leaf to international purchasers, is held to the same standards to which we hold our international suppliers, and is audited by AB Sustain in the same manner.