Corporate Principles

CNT understands the challenges that are faced in operating on a global scale and having a complex international supply chain. That is why CNT remains committed to maintaining its principles and business practices as it expands its global operations. In the ever changing corporate, multinational environment it is clear that the cornerstone of the organisations successful long term growth is based on its commitment to maintaining corporate principles which are transparent and clear while encompassing the wider stakeholder audience. It is through this that CNT operates as an international organisation, putting transparency and good corporate citizenship as a fundamental principle in its operations.

CNT has a reputation for both professional and flexible customer service while providing the highest in quality. For CNT quality is not only limited to a product but it is about quality of service, quality of customer care, quality of legal responsibility, quality of financial practices and quality of sustainability. Through these dedications CNT makes continuous improvement in all its areas focusing on quality improvement. This is done through respect, investment, business opportunities and expansion for the Company’s sustainable future. As a family owned business, the DNA of the company is based on long term interests .

The principle of mutual benefit is the basis on which CNT builds its long term relationships with its stakeholders, whether is a business partner or a contract farmer. It is a core belief that all its stakeholders should have the opportunity to benefit from their relationship with CNT.

High standards of behaviour, professional conduct, ethics, integrity and respect for employees’ rights are fundamental to CNT. These are attributes that CNT is proud to posess and extends this to environmental responsibility, integrity and fair competition in CNT operations.

Corporate Social Responsibility (CSR)

Corporate Social Responsibility

SOCIAL RESPONSIBILITY

Throughout all Group activities a strict commitment to the compliance of applicable laws is expected from all personnel, working either for CNT, its affiliates or subsidiaries. It is what a company does beyond its legal requirements and commitments that separates them from others in the marketplace.

Social Responsibility is an ever evolving concept with the corporate environment and CNT takes its responsibility to the changes and developments throughout its supply chain. critical areas to focus on are the people and the environment within the supply chain. CNT does not employ child labour in its companies, affiliates or subsidiaries and enacts stringent adherence to this policy. CNT strives to continuously improve environmental and occupational health and safety throughout its operations in areas of both production and processing. CNT and its affiliates and subsidiaries provide a workplace free of harsh and inhumane treatment, including any sexual harassment, sexual abuse, corporal punishment, mental or physical coercion or verbal abuse of workers and with no threat of any such treatment. CNT has employees with clear responsibility regarding SRP (Social Responsibility Program) and STP (Sustainable Tobacco Production) at CNT affiliates or subsidiaries. SRP and STP coordinators conduct continuous reviews to check the status and determine actions to be taken.

AGRICULTURAL LABOUR PRACTICES

Part of the awareness and efforts that CNT puts towards the continuous improvement of the supply chain is Agricultural Labour Practices programme (ALP). This is a concentrated effort based on the training, awareness building and data gathering of the conditions regarding labour issues and practices within tobacco production.

The programme focuses critically on:

  • Child Labour
    • Minimum age
    • Hazardous work
  • Rights of Workers
    • Respectful treatment
    • Forced labour
    • Fair remuneration
    • Working hours
    • Freedom of association
  • Workplace Health & Safety
    • Farm Safety
    • Prevention of GTS
    • CPA management
    • Machinery & Hand tools
    • Accommodation & wellbeing
    • First Aid

ALP is implemented in all of CNT global operations with a commitment to the growth of the programme and the continuous improvement of labour practices within tobacco production.

CHILD LABOUR POLICY

CNT will not employ any children as defined by ILO (International Labour Organisation) 1973 Convention No. 138 / Recommendation No 146, ILO Convention No 182, / Recommendation No 190, 1999. This is a commitment the company applies throughout the supply chain CNT recognises that… ‘not all work done by children should be classified as child labour that is to be targeted for elimination. Children’s or adolescents’ participation in work that does not affect their health and personal development or interfere with their schooling, is generally regarded as being something positive. This includes activities such as helping their parents around the home, assisting in a family business or earning pocket money outside school hours and during school holidays. These kinds of activities contribute to children’s development and to the welfare of their families; they provide them with skills and experience, and help to prepare them to be productive members of society during their adult life.’ [International Labour Organisation].

Nevertheless, the welfare and health & safety of children are paramount at all times, the company aims to apply commitment and principles through education.

Over and above the efforts and engagement that CNT does realted to the elimination of child labour, as a Board Member of the Eliminating Child Labour in Tobacco Growing (ECLT ) Foundation CNT actively participates in industrywide efforts towards the elimination of child labour in tobacco growing. The ECLT Foundation strengthens communities, improves policies, and advances research so that tobacco-growing communities can benefit from agricultural farming while ensuring that their children are healthy, educated, safe from exploitation, and encouraged to reach their full potential. CNT is proud to be a signatory of the ECLT Pledge of Commitment and Minimum Requirements issued in 2014. The full text of our commitment can be found here.

Environmental Policy

As a producer of agricultural goods CNT hold custody of land and environment high up on the agenda. Through monitoring and engagement with growers and the communities CNT ensures that the natural environment is utilised with minimal impact. CNT is committed to conserve natural resources, to avoid the unnecessary use of hazardous materials where possible and to engage in activities that reuse and recycle. Through extension services and continuous engagement CNT  assists tobacco farmers in areas in which we operate with good/ best agronomic practices. CNT recommends having systems in place to ensure the safe handling, movement, storage, recycling, reuse or management of waste, air emissions and wastewater discharges. Any waste, wastewater or emissions with the potential to adversely impact human or environmental health shall be appropriately managed, controlled and treated prior to release into the environment.

Water conservation and prevention of pollution

With the stresses the world faces for the availability of water, conservation is necessary for the preservation of future generations. Water reduction targets are taken into consideration and the appropriate use of water is communicated through agronomy extension. Efficient utilisation of water is considered throughout the production cycle to minimise any over utilisation. CNT has started to report water utilisation through Carbon Disclosure Project (CDP) since 2016 to further demonstrate transparency within its supply chain as well as identify critical areas of improvement.

Biodiversity policy

The conservation of biodiversity is an integral part of CNT’s commitment to environmental protection. This is achieved by recognising the need to conserve biodiversity of eco systems flora and fauna and their habitats. As a business we focus on addressing our own biodiversity impacts and those of our contracted farmers. CNT actively pursue the expansion of organic crop production as a viable solution for the sustainability of tobacco production.

Climate change policy

Since 2011 CNT has actively disclosed its Carbon dioxide emissions (Scope 1&2) and energy use data by the internationally recognised Carbon Disclosure Project (CDP). As part of CNT’s supply chain transparency and the constant  strive to reduce the carbon dioxide and GHG emissions through lower energy consumption of our operations globally. Continuous improvement of corporate environmental performance through ongoing research and development is an ongoing practice. Best practices have a shared benefit for efficiency and improved resource utilisation and thus sharing the benefits throughout the operation.

"SUSTAINABLE TOBACCO PRODUCTION" (STP)

Social Responsibility

CNT is firmly committed to a policy of social responsibility in co-operation with its affiliated and subsidiary companies in all areas of operation. Since 2002 CNT has been participating in SRTP (Social Responsibility in Tobacco Production)* – programme for all tobacco operations which is regularly reviewed and audited both internally and by third parties.

CNT applies good practices and guidelines from the distribution of seed all the way the container dispatch to clients. These guidelines are a rigorous monitoring process throughout the supply chain.

* Since 2016 changed to Sustainable Tobacco Production (STP)

Tobacco Processing: Occupational Health & Safety policy

In all working environments CNT has strict Occupational Health and Safety policies and procedures in place. All applicable laws are adhered to, in the absence of local legislation international standards are applied and where possible standards are exceeded.

CNT complies with all applicable national and international laws and regulations regarding Occupational Health & Safety policy affecting business activities. Procedures have been established for assessing and reviewing the occupational health and safety impacts of present and future activities on a regular basis. Through continual improvement all pro-active measures are taken to safeguard the health and safety of our employees on company premises.

Client requirements and STP guidelines  ensure continuous development and improvement. This covers areas of the working environment, e.g. Working Environment, Impact on Community, Factory Safety, Fire Prevention and Evacuation, Medical, Security and Climate Change.

Agronomy

The concept of good agricultural practice is the fundamental core of the way operations ensure sustainable, economically viable production of tobacco. This is achieved through the provision of crop production and management extension services and adhering to industry recognised Sustainable Tobacco Production (STP) and CORESTA guidelines. This is implemented throughout all the leaf production operations and incorporates best agricultural practices in the production of a quality crop while protecting, sustaining or enhancing the environment with regard to soil, water, air, biodiversity. This is carried out through training, knowledge transfer and extension services for contracted farmers to ensure that they are able to fully implement these guidelines.

The main components of good agricultural practices:

  • Farmers training through our field extension officers / surveys / follow up / training adjustments
  • Variety management and integrity – ensure that tobacco is GMO free / GMO analysis
  • Risk assessments
  • Integrated Pest Management – crop rotation / biological controls / destruction of crop residues / scouting & threshold levels / toxicity
  • Survey and monitoring
  • Fertiliser application
  • Biodiversity
  • Water and soil conservation
  • Soil protection
  • Pollution control (water course and environment)
  • NTRM ( foreign matter)
  • Farm safety – CPA storage & disposal / PPE usage / GTS awareness and training
  • Product integrity
  • Farm productivity, farm worker safety and labour policies preventing child labour and forced labour
  • Wood usage – chain of custody
  • Sustainability – including the conservation of soil and bush land, reforestation/afforestation, biodiversity and the protection of water resources

Cycle of Engagement

CPA policy

“CPA” (Crop Protection Agents) are chemicals that are used in the production of tobacco (and other crops). A strict adherence to its storage, application and disposal is essential at all times. CNT has training programmes in place to ensure that the associated dangers with CPAs are avoided and limited as much as possible. Tobacco, like any crop, is prone to attack from pests and disease. To limit damage affecting yield or quality, any integrated pest management program (IPM) may require judicious use of CPAs. CPA management shall ensure that appropriate CPAs are only used when needed and in accord with their labelled instructions, by trained personnel using appropriate personal protective equipment. CPA management shall document correct CPA use and a plan for reduced usage.

CPA Residues shall be monitored regularly, not limited to CORESTA GRLs. Only approved CPAs for tobacco will be used. Farmers are trained to ensure only approved levels of CPAs are applied and used in a technically correct way. Alternative methods of crop protection shall be supported through the IPM concept and the preferred methods will be implemented.

CNT is an active member of the CORESTA Sub-Group “Pest and Sanitation Management in Stored Tobacco”. The Group is dealing with all aspects of combating the different infections of stored tobacco.

Part of the CNT strategy is the active promotion of organic and pesticide reduced tobacco production as a viable alternative of production for growers.

Green Tobacco Sickness

Green Tobacco Sickness (GTS) is well documented as intoxication caused by dermal absorption of Nicotine in certain conditions. It often occurs during harvesting, when workers and farmers come in contact with wet tobacco leaves containing Nicotine on their surface. Humidity allows Nicotine to enter the bloodstream and causes poisoning. CNT established operating procedures in the locally applied GAP instructions to avoid GTS.

Soil and water conservation

Soil and water conservation forms a key part of CNT principles of good agricultural practice and crop production management. CNT is committed to the preservation of soils and watercourses in all areas in which it operates. CNT believes that through its extension services and engagement with growers on good agricultural practices such as crop rotation, soil mulching and land management conservation can be optimised. An awareness of the dangers of soil erosion and threats to availability of water is essential for sustainability of crop production, land availability and fertility.

NTRM policy

NTRM (Non Tobacco Related Materials) is an area of serious importance for both the industry and for CNT. The industry categorises foreign contaminating matter as NTRM. The company has extensive measures in place starting at the farm level all the way through the complete processing and production cycle to identify, address and eliminate cuases and possibility of contamination. Through a robust tracebillity system CNT is able to track and trace to farmer level if there is any NTRM found in its processing facilities. This is supplemented with a commitment to  a zero-tolerance policy on high risk NTRM in the product. CNT provides continuous training and increased awareness on NTRM issues and the importance of NTRM elimination throughout the supply chain.

Post Harvest Management

Energy efficiency and reduced resource utilisation is paramount in the effective improvement on post-harvest management while maintaining quality and farmer return. CNT is committed to improving curing efficiency and reducing resource utilisation for curing. The importance of post-harvest management has three critical areas of importance firstly – the quality profile of the tobacco that is produced by the grower – secondly responsible and sustainable resource utilisation and thirdly availability of a quality product on the international market.

Forestry

Deforestation is an international, national and industry concern of critical importance. CNT has taken its commitment to reforestation progressively further year on year. Through stakeholder, partners and individual efforts CNT reforestation programs are designed to provide sustainable curing fuel for tobacco farmers, replenish indigenous forests and amenity value for the community. CNT is proud of its endeavours related to the preservation of woodland. The pressure on forests will not cease as the problems are far fetching and rooted in complex national dilemmas. CNT will not cease in its efforts to preserve woodland in all areas it operates.

Social Development

Equal opportunities

CNT intends to select the best available person for every vacancy, regardless of sex, race, colour, religion, marital status, ethnic origin, age, disability or sexual orientation. At the same time, CNT aims to provide all employees with the opportunity to develop long-term careers appropriate to their abilities and ambitions.

CNT wishes to give all its employees the maximum opportunity to develop their careers and achieve their work potential. In filling any vacancy, CNT will encourage applications from suitably qualified internal candidates wherever possible.

Recruitment strategy is based on retaining and attracting the most suitable people at all levels of the business and this is reflected in an objective approach to recruitment and selection.

Principles of Responsible Supply Chain Management – Nicotine

CNT believes that society and business are best served by responsible business behaviour and practices. Fundamental to this belief is the understanding that a business must, at a minimum, operate in full compliance with all applicable laws, rules and regulations. All applicable laws are adhered to, in the absence of local legislation international standards are applied and where possible standards are exceeded.

CNT complies with all applicable national and international laws and regulations regarding Occupational Health & Safety policy affecting business activities. Procedures have been established for assessing and reviewing the occupational health and safety impacts of present and future activities on a regular basis. Through continual improvement all pro-active measures are taken to safeguard the health and safety of our employees on company premises.

Client requirements and internal guidelines ensure continuous development and improvement. e.g. Working Environment, Impact on Community, Factory Safety, Fire Prevention and Evacuation, Medical, Security and Climate Change.

CNT is committed to uphold the rights of workers and to treat them with dignity and respect. Appropriate Personal protection equipment (PPE) shall be provided to all staff that require personal protection for work related activities as well as frequent training for the safe use.

EMERGENCY PREPAREDNESS AND RESPONSE

CNT is committed to the continued improvement of safety and risk reduction in all areas of operation, storage, manufacturing, handling, or on-site movement of hazardous chemicals by lowering the probability that an incident will occur or reducing the consequences of occurrence or a combination of both.

Process Safety

CNT is committed to the continued improvement of safety and risk reduction in all areas of operation, storage, manufacturing, handling, or on-site movement of hazardous chemicals by lowering the probability that an incident will occur or reducing the consequences of occurrence or a combination of both.

Freely Chosen Employment

CNT does not permit the use of forced, bonded, indentured labour or involuntary prison labour. All work will be voluntary and all workers are free to leave upon reasonable notice. Workers will not be required to hand over government-issued identification, passports or work permits as a condition of employment except to the extent that CNT needs brief access to such documents in order to comply with applicable laws.

Non-Discrimination

CNT prohibits discrimination against and harassment of any employee due to race, colour, national or ethnic origin, religion, disability, sex, sexual orientation, gender identity and expression or age. All personnel who are responsible for hiring, management and for the development of CNT employees are charged to support this effort and to respond promptly and appropriately to any concerns that are brought to their attention.

Fair Treatment

CNT is committed to promote a working environment based on mutual trust and respect for the dignity of every member of the organisation. Creating an environment free of opposing and constraining behaviour that detracts from the ability of each employee to perform at his/her highest level.

EQUAL OPPORTUNITY

CNT is committed to creating a diverse environment and is proud to be an equal opportunity employer. All qualified applicants will receive consideration for employment without regard to race, colour, religion, gender, gender identity or expression, sexual orientation, national origin, genetics, disability or age.

CNT wishes to give all its employees the maximum opportunity to develop their careers and achieve their work potential. In filling any vacancy, CNT will encourage applications from suitably qualified internal candidates wherever possible.

WAGES, BENEFITS AND WORKING HOURS

Workers shall be paid according to applicable wage laws, including minimum wages, overtime hours and mandated benefits. Working hours will be within international practices.

FREEDOM OF ASSOCIATION

Workers should be able to communicate openly with management regarding working conditions without threat of reprisal, intimidation or harassment.

Carbon Disclosure Key Figures

The determinations of CO2e emissions are done according to international accounting principles of ISO 14064-1 and the Greenhouse Gas Protocol (GHG). As standard unit CO2-equivalents (CO2e) are used.

A detailed report of our CO2 emissions is available on request.

COMPLIANCE STATEMENT

Compliance Statement

Legality and Corporate Responsibility are an integral part of CNT’s Corporate Governance Principles.

All affiliated companies adhere to the applicable laws and regulations in the countries where business activities are conducted as a minimum standard (Legality Principle). Over and above this, CNT affiliated companies focus on continuous improvement while complying to and were possible strive to exceed the customer compliance requirements.

Code of Conduct

The CNT Code of Conduct is applicable to all employees (including affiliates and subsidiaries), regardless of the position they hold and geographical location. Individual company policies for the business units must always conform to the principles stated in the Code of Conduct.

All employees (including affiliates and subsidiaries), have a personal responsibility to ensure that their actions comply with both the words and the spirit of the Code of Conduct. It is the responsibility of management to create a culture in which compliance with the Code of Conduct is expected and achievable, this includes ensuring that employees are aware of, understand, and comply with its content. Concerns about inappropriate conduct must be promptly addressed.

Violations of the Code of Conduct may lead to disciplinary actions. Such action may include reprimand, reimbursement of any loss or damage suffered by the Group, termination of employment, referral for civil action or criminal prosecution, or any other disciplinary deemed appropriate by the Group.

Statement Of Policy Regarding Counterfeit & Otherwise Illegal Tobacco Products

CNT is dedicated to having an effective anti-counterfeiting policy. All directors, employees and partners of CNT must consider how this policy may apply to all business transactions specific to the purchase of tobacco and nicotine.

As stipulated in this policy, all directors, employees and partners of CONTRAF-NICOTEX-TOBACCO GmbH (CNT) will not knowingly supply tobacco to any entity or individual engaged in the manufacture, distribution or sale of counterfeit or otherwise illegally manufactured tobacco products. Anyone who is found in violation of this policy, shall be subject to severe disciplinary action.

 

CODE OF GOVERNANCE

CNT acts in accordance with the “GOVERNANCE KODEX FÜR FAMILIENUNTERNEHMEN” published by Die Familienunternehmer –ASU e. V. and INTES Akademie für Familienunternehmen GmbH, Germany in 2015, which defines standards for good and responsible management and supervision (governance) for family owned companies. The codex is strongly reflected in CNT’s articles of association.