Strong, sustainable partnerships with our supplier base and trade partners are critical to our future success and achievement of Altria’s Vision. Responsibly sourcing the raw materials and services for our companies’ products and communicating clear expectations with our suppliers is necessary to maintain our social license to operate.

Strategic & Integrated Approach to Procurement

The Altria Client Services Procurement department focuses on delivering high quality goods and services and maximizing savings, while managing risks and leading the supplier management and responsible sourcing of direct and indirect materials crucial to our operations. ALCS Procurement approaches supporting the business through three main responsibilities:

 

  • Category Management
  • Internal Relationship Management
  • Supplier Relationship Management


2025 Goals

  • Enhance infrastructure that supports our ability to responsibly source goods and services and optimize the value of those goods and services for our businesses.
  • Enhance analytic and surveillance infrastructure that supports the financial viability of our supplier base and trade partners.
  • Improve diversity, inclusion and equity in our supply chains.

Our supplier managers work with our suppliers to communicate clear expectations and execute contracts consistent with our Supplier Code of Conduct. To drive progress toward our responsibility goals, in 2021 the ALCS Procurement department will focus on:

 

  • improving spending and sourcing-related analytics to proactively identify and manage risks;
  • continuing to monitor contract compliance and supplier management infrastructure to proactively identify and manage risks;
  • expanding assessment of cyber-security risks associated with suppliers;
  • leveraging technology solutions to simplify, standardize and improve visibility and controls in purchasing process; and
  • continuing to update business continuity plans for critical goods and services

 

Third-Party Due Diligence Training

In 2020, we continued to train our employees on our risk-based, third-party due-diligence assessment process using online training tools. This process helps determine whether a supplier presents a specific legal, compliance or reputational risk that requires more in-depth due diligence.

The assessment considers a supplier’s country of origin, beneficial ownership, and the type of services the supplier will be providing. If the supplier is higher risk, we require additional contract provisions and monitoring procedures. Outcomes from this assessment are incorporated into the social compliance audit schedule.

Assessing & Improving Supplier Performance

Our monitoring programs assess our suppliers’ compliance with contractual requirements and our Supplier Code of Conduct. These programs encourage continuous improvement, help identify areas for greater focus and if needed, remediation. Altria’s tobacco companies conduct third-party assessments in addition to audits conducted by the ALCS Corporate Audit department of direct packaging and product materials suppliers, international leaf suppliers and contract manufacturers where there may be significant country risk, supplier criticality, brand risk and opportunities to improve supply chain compliance. Learn More

Our Supply Chains & the Environment

We work with our suppliers to find ways to reduce their environmental footprint. We understand that climate change, natural disasters and reduced water quality and availability may impact our companies and their supply chains over time. In 2020, the Science Based Targets Initiative approved Altria’s new, long-term environmental goals which include reducing our Scope 3 greenhouse gas emissions by 18 percent throughout our value chain by 2030.


To drive progress toward this target, we need to understand our suppliers’ own initiatives to reduce their environmental footprint. In 2020, Altria invited key members of our supply chains to disclose data through CDP’s Climate Change questionnaire on the environmental impacts, risks, opportunities and strategies related to their businesses. We received responses from 68 percent of invited suppliers, and this initiative provided a more detailed understanding of our Scope 3 greenhouse gas footprint, while opening the door to more collaboration on shared environmental goals and other ESG issues.

In 2021, we plan to expand this engagement through CDP by inviting more suppliers to participate and including additional data requests to create a more comprehensive view of our environmental impact in the value chain. Learn about our Environmental Goals.

In 2020, Altria was recognized for environmental leadership by the Science Based Targets initiative (SBTi). Read Release.

Emily Ornelas Story Teaser Photo

Recognizing our Business Partners

Our suppliers are our business partners and they directly help the success of our companies. We want to recognize suppliers for going above and beyond their normal call of duty.

Christine Smith

Supporting our Trade Partners through Responsible Programs

Keeping our tobacco products out of kids' hands is a responsibility that extends to all stakeholders, including retailers. 
Linwood Sykes

Driving Collaboration for Grower Sustainability

Altria's GAP Connections program works with our contracted growers to establish Good Agricultural Practices, meet societal expectations and embrace standards that will lead to their success.