4 ISSUED: NOV. 2021 "For Altria, this focus is not only about helping to solve a global challenge, it’s also about ensuring our ability to mitigate, manage and prevent real business impacts." A Note From Jody As my colleagues have emphasized across our other focus area reports, the pace of changing stakeholder expectations is accelerating. And what is expected is both increasing and intensifying – especially as it relates to environmental and social issues with broad, global impact. Over the past year, we’ve seen investors and financial regulators increasingly interested in disclosures that demonstrate and quantify actions toward addressing climate change. More products and brands are responding to heightened consumer interest by touting commitments to environmental sustainability. The pressure for governments, NGOs and businesses to do more continues to mount – as societies are experiencing greater impacts of a rapidly-changing world and calling for action. In fact, as we wrote this report, the Intergovernmental Panel on Climate Change released new analyses that identified the next few decades as our only chance to keep global warming below 2 ° C, a level that scientists agree is vital for life and economic stability across the planet. As our changing planet drives shifts in our stakeholders’ expectations, we understand the elevated importance of the work we do at Altria to sustain our business into the future – a key part of which is Protecting the Environment . We recognize our responsibility to minimize our environmental footprint and work to prevent the most damaging effects of climate change. For Altria, this focus is not only about helping to solve a global challenge, it’s also about ensuring our ability to mitigate, manage and prevent real business impacts. Our communities and businesses have felt those impacts acutely as the result of climate change-related natural disasters. In 2020, wildfires across the western United States forced employees to flee their homes and threatened Ste. Michelle Wine Estates’ vineyards and grape suppliers. The Texas ice storm in February 2021 left many of our Texas-based employees without power or heat for days and disrupted regional supply chain networks, impacting many manufacturers, including U.S. Smokeless Tobacco Company. While Protecting the Environment has always been important to us, these events reaffirmed how critical it is to the success of our businesses and achieving our Vision to responsibly transition adult smokers to a smoke-free future. This past year, I joined Altria’s Chief Financial Officer, Sal Mancuso, as a co-executive sponsor for our environmental initiatives. Along with senior leaders in product development, operations, manufacturing, finance and government affairs, we’ve formed an environmental steering committee to provide oversight and guidance to our efforts. We regularly meet and discuss environmental strategy and operational integration. In 2020, we announced new 2030 targets, including a goal to significantly reduce our greenhouse gas emissions by 55% off a 2017 base. Our targets were approved by the Science Based Targets Initiative as a key contribution to help limit rising global temperatures to 1.5 ° C. We took steps to further understand the forest, water and climate impact of our value chain by participating in the CDP supplier survey and the international Sustainable Tobacco Program. This year, we also completed our first standalone Task Force on Climate-related Financial Disclosures (TCFD) report. While we have reported against many of the TCFD recommendations for several years through our CDP Climate Change response, this year we were able to go deeper after conducting preliminary climate-related scenario analysis workshops. We continue to align our work in Protecting the Environment with operational need and stakeholder expectations. And we will continue to communicate our progress. As you will read in this report, we are working toward solutions with an increasingly integrated approach. Environmental, social and governance responsibility is being infused into critical facets of our business and value chain. I’m proud of the unwavering commitment of Altria’s employees to make progress toward our 2025 Protect the Environment goals, and their work to continue identifying new opportunities that demand action. Jody Begley Executive Vice President, Chief Operating Officer, Altria Group, Inc. “Protect the Environment” Executive Co-Sponsor
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