CTC Leadership on Reaching Above and Beyond for ESG and Inclusive Growth

The leadership team at Ceylon Tobacco Company (CTC) share insights into driving the company forward in a challenging market through innovation, adaptability, and responsible business practices built on ESG principles to foster inclusive growth within CTC and beyond. Led by Chief Executive Fariyha Subhani, CTC has adopted a leadership development strategy that fosters agility and cross-functional expertise, which are essential in navigating the complex challenges posed by regulatory changes and technological advancements in the industry.

With a strong focus on employee well-being, organizational culture, and the integration of new technologies, CTC’s leadership reflects a company poised for sustainable success. Their strategy hinges on balancing short-term business objectives with long-term investments in climate resilience and technological advancement while maintaining an unwavering commitment to regulatory compliance, ethics, and growth.

 

Fariyha Subhani

– CEO and MD

As the CEO and Country Manager for CTC, how do you approach leadership development within the organization, given the evolving regulatory, societal, and technological challenges in the industry?

The global tobacco industry is undergoing significant transformations driven by evolving regulatory landscapes and technological advancements. To effectively navigate these challenges, CTC focuses on fostering agile, informed, and proactive leadership. Our leadership team is committed to embracing and driving change across the organization, ensuring that leaders have a holistic understanding of the business. We prioritize the development of cross-functional leaders who can think strategically across areas like operations, finance, legal, regulatory, technology, and compliance, helping the company stay nimble and responsive to regulatory shifts, and innovation opportunities.

One of the core beliefs is creating a culture that encourages continuous learning. Employees across the organization at all levels are strongly supported in the pursuit of knowledge. We invest in digital platforms such as the GRID to equip employees with access to a vast library of global insights to learn on the job and elevate themselves to the next level. Additionally, our leaders actively participate in global forums and conferences, providing opportunities to learn from industry experts, share insights, and shape the future of the company through collective knowledge.

We also emphasize innovation and adaptability, exploring new ways to diversify product offerings and incorporate sustainability into our operations. Whether it’s through optimizing production with cutting-edge technology, or enhancing consumer engagement, CTC is committed to balancing a strong regulatory compliance culture while addressing consumer needs. Technology is central to our strategy, and we ensure our leadership is skilled in emerging technologies to enhance operational efficiency, customer experience, and compliance.

Ethical leadership is crucial to our approach. Our leaders live by the BAT values and are committed to inculcating these across the organization.  We are very proud of our award-winning strong compliance culture. CTC was rated No. 01 Transparency in Corporate Reporting. Leadership at CTC is also designed to be adaptable to different markets. Our development programs include global exposure to ensure that leaders can manage international teams and navigate regional regulatory and societal trends.

Ultimately, CTC’s leadership approach enables us to remain a responsible leader in the industry, shaping our future with sustainability, innovation, ethical leadership, and compliance at the core of our business strategy.

Can you elaborate on CTC’s approach to diversity, equity, and inclusion within the organization?

At CTC, diversity, equity, and inclusion (DEI) are integral to our organizational culture and long-term success. Our recruitment practices focus on attracting diverse talent, ensuring our teams reflect the communities we serve. We are committed to equity by providing all employees access to opportunities, resources, and support for growth, while fostering inclusion where every individual feels respected, valued, and empowered. We cultivate an environment where diverse perspectives are heard, and leaders are accountable for creating inclusive teams, supported by training on inclusive leadership.

To ensure transparency and accountability, we regularly evaluate DEI metrics, such as representation and employee engagement, and set clear goals to track progress. We publish annual reports to provide stakeholders with insights into our efforts and impact. Continuous learning is essential to embedding DEI principles across the organization. We offer training on unconscious bias, inclusive leadership, and cultural competency to equip all employees, especially leaders, with the skills needed to foster an inclusive workplace.

CTC’s global perspective ensures that DEI initiatives are tailored to regional and cultural needs, making them more effective. Embracing DEI strengthens our company, enhancing innovation, employee morale, and decision-making, while positioning us for sustainable growth and success.

How does CTC drive its ESG agenda while prioritizing organizational growth profitability?

Our ESG agenda is based on balancing organizational growth, profitability, and corporate social responsibility (CSR) which we recognize as key to long-term sustainability. As the largest tax contributor in the country, we have identified our role in driving economic development and creating shared value. Our CSR strategy is integrated with our business goals, ensuring that growth, profitability, and social responsibility are complementary elements. This alignment guides decisions across product development, marketing, and operations, considering both social and environmental impacts.

Our CSR initiatives focus on empowering our contracted farmers, our trade network, distributors, and other communities in Sri Lanka. Key among them is the support we provide to our contracted farmers and other farmers with crop-diversification for organic home gardening to empower underprivileged rural families.  With the goal of combatting the rise of chronic kidney disease in remote farming communities we have taken action to construct over 30 reverse osmosis (RO) water purification systems which provides clean and safe drinking water in water scarce areas. Focused on youth development we have carried out initiatives that offer skill-based vocational training programmes to community youth. Our aim is to equip them with the qualifications they need to thrive in in-demand vocations. One of our significant contributions is a project focused on supporting the national goal of increasing forest cover from 29% to 32% and revitalizing the ecosystem. We have endeavored this through reforestation, sapling distribution and the involvement of our employees, farmers and suppliers.

By embedding social and environmental values into our core business objectives, CTC demonstrates that profitability can coexist with social responsibility, reinforcing our commitment to purpose-driven growth. This approach helps us achieve sustainable success while contributing positively to society, ensuring that our business practices benefit both our bottom line and the communities in which we operate. By embedding social and environmental values into our core business, we demonstrate that profitability and social responsibility can coexist, ensuring sustainable success and positive contributions to society.

 

Kavinda Nanayakkara 

– Deputy CEO

In a highly regulated and evolving industry where attracting and retaining top talent can be challenging, what is CTCs approach to attracting the crème de la crème?

Attracting and retaining top talent is a priority in our Company which is achieved through competitive compensation, a strong company culture, and opportunities for growth. We foster a culture of openness, integrity, and accountability, ensuring that potential employees align with our commitment to responsible governance, regulation compliance, and sustainability.

Our Employee Value Proposition (EVP) is built on three pillars: Care, Growth, and Transformation. We offer robust professional development programs, including world class leadership training, industry conferences, mentorship, and continuous learning opportunities. Tailored leadership programs, international assignments, and cross-functional experiences provide employees with unmatched global opportunities and career advancement.

Clear career pathways, mentoring, and customized development plans for high-potential employees ensure their growth within the organization. We celebrate achievements through company-wide recognition, reinforcing a positive culture and motivating top talent to stay. By prioritizing career progression and fostering a growth-oriented environment, CTC remains an attractive workplace for high performers, committed to their long-term success and development.

At CTC, how do you ensure the well-being of your employees, and what well-being programs do you have in place to support your team?

Ensuring the well-being of employees is a top priority in our organization. We prioritize the well-being of our employees through a comprehensive approach that covers physical, mental, social, and financial wellbeing.

In 2024, we launched 14 impactful initiatives across these four well-being pillars. For physical well-being, we organized events such as Sports Day, Cross Fitness, Step Challenges, and health awareness sessions to encourage active living and better health management. To support mental well-being of our employees, we introduced a specialized initiative, providing a confidential platform for employees to discuss their mental health challenges. This initiative reduces stigma and offers a supportive environment for mental health conversations. Social well-being is promoted at our company through community-building activities like cultural celebrations, social gatherings for employees and their families, and friendly tournaments which foster inclusivity and camaraderie among employees. For financial well-being, we provide Personal Finance Management sessions, offering employees guidance on budgeting and financial planning to reduce financial stress and ensure long-term stability.

These initiatives ensure that employees are supported in every aspect of their lives, enhancing job satisfaction, engagement, and overall productivity. At CTC, we are committed to fostering an environment where employees can thrive both personally and professionally.

 

Zahrah Cader 

– Legal, Corporate and Regulatory Affairs Director and Company Secretary

How do you balance the need for innovation and environmental sustainability in your company’s product development or service offerings?

We view innovation and environmental sustainability as intertwined and essential for long-term success. We integrate sustainability across our operations both in Colombo and Kandy. We are extremely proud to be carbon neutral in scopes 1 and 2 across all our sites and have been so for 3 consecutive years. Our initiatives focus on renewable energy generation such as via solar panels, reducing waste, lowering energy consumption and water recycling to name a few. By utilizing advanced technologies like AI, we optimize manufacturing processes to cure our raw materials in loose lead barns which have proven to be cost effective and sustainable. We utilize drone technology for precise distribution of agro chemicals in farming. Our teams have invented an organic pest repellant in-house which has proven to be environmentally friendly and cost effective.

Shareholders are increasingly concerned about sustainability in the companies that they invest in. Having ESG at the core of an operation is no longer a nice to have, it is a must have. Our approach to innovation maintains this at the core and we drive sustainability and efficient use of resources across all innovation be it product, manufacturing or even general administration. A key element of our strategy is adopting circular economy principles, ensuring that products and materials are part of a sustainable lifecycle. We explore ways to recycle or repurpose materials and reduce waste, aligning our product development with these sustainable practices. Collaboration with external partners, such as farmers and distribution and trade partners play a critical role in driving innovation. These partnerships help us implement new technologies and learn from industry best practices, enhancing our sustainability efforts.

How do you integrate new technology within the organization and encourage employees to embrace the transition?

We focus on incorporating advanced technologies that enhance efficiency, reduce environmental impact, and ensuring we support all our stakeholders across the value chain to adopt to the changes with ease. Our employees are all provided with training and development led by global experts to ensure that the transition and automations are easy to adopt. For example, all employees are provided annual training and periodic refreshers on the effective use of CoPilot to support them to optimize use of their time and ensure we embed work-life balance through leveraging technology. Additionally, we emphasize collaboration, enabling employees to share ideas and insights that build enthusiasm for the adoption of new tools.

We prioritize the adoption of tools such as drone technology and AI to optimize operations, improve resource management, and promote sustainable practices across our supply chain. From an external stakeholder point of view, our farmers are provided with on ground training on optimizing resources and increasing efficiency and our distribution network is transitioning into paperless billing. Change is never easy, and we ensure that the right level of support is provided to facilitate smooth transitions.

Our leadership team actively champions these technological initiatives, ensuring strong support and alignment with the company’s sustainability objectives. Involving employees in decision-making processes and gathering their feedback helps generate a sense of ownership and excitement.

Transparency is key in maintaining momentum, and we regularly communicate updates on how these technologies are contributing to our business. By integrating technology into our operations and engaging employees in the process, we are able to increase efficiency, enhance operations and provide support to all our stakeholders.

 

Nishan Fernando

– Commercial Director

What is your personal leadership style?

My leadership style is grounded in inclusivity, teamwork, and collaboration. I believe that a diverse team, with varied perspectives and experiences, drives innovation and success. Fostering an environment where everyone feels valued, respected, and empowered to contribute their ideas is a core part of my leadership style. This inclusivity builds trust and encourages open communication, which enhances decision-making and problem-solving.

I firmly believe in leading by example, which promotes transparency, integrity, and actively listening to my team’s feedback and concerns, making sure that everyone’s voice is heard. There’s immense power in teamwork and I aim to nurture that every step of the way by fostering a collaborative culture, where members share knowledge, solve challenges together, and support one another. I believe that collective intelligence leads to better outcomes, and collaboration is key to achieving shared goals.

Additionally, I set clear expectations and align the team with the company’s vision, while empowering individuals to take ownership of their work. My goal is to create an environment where team members feel both challenged and supported, and where personal and professional growth are prioritized.

Ultimately, my leadership style is focused on creating a positive, inclusive culture that drives both individual and team success, ensuring long-term growth for everyone involved.

How do you balance the need for high performance while ensuring that employee morale is maintained?

We believe that balancing high performance with employee morale is essential for long-term success. We set clear, achievable goals using the SMART framework to ensure employees understand expectations and feel motivated by measurable progress. A supportive, collaborative work culture is key, fostering teamwork and open communication to reduce stress and boost morale. We recognize and celebrate achievements, reinforcing the connection between hard work and rewards, which keeps employees engaged.

We prioritize work-life balance by offering flexible working arrangements, wellness programs, and time-off policies, ensuring employees remain refreshed and motivated. Continuous learning and career development opportunities further enhance engagement, helping employees grow professionally while meeting performance expectations. Regular communication between employees and management helps address concerns, preventing overwhelm and fostering a supportive environment.

Performance-based incentives and rewards drive motivation while showing appreciation for hard work. Leadership plays a crucial role in balancing performance with morale by modeling empathy, fairness, and stress management. Clear communication of the company’s mission and values strengthens employees’ connection to their work, enhancing morale. In times of heightened challenges, we provide additional support to help employees succeed. Ultimately, we strive to create an environment where high performance is sustainable, benefiting both employees and the organization.

 

Towhid Akbar

– Finance Director

How do you balance short-term financial goals with long-term investments in climate resilience?

We view climate resilience as a strategic priority essential for long-term business success. We balance short-term financial goals with long-term investments in sustainability through a comprehensive approach that integrates climate resilience into our business strategy. By focusing on both mitigation and adaptation, we reduce carbon footprints and enhance our ability to withstand climate-related disruptions. Proactive risk management, including climate scenario analysis, helps us assess and address potential climate-related risks, ensuring that our investments are financially sustainable in the short term.

We prioritize innovation and operational efficiency, seeking opportunities where sustainability investments also drive cost savings, such as transitioning to renewable energy and adopting circular economy principles. These efforts reduce waste, lower material costs, and increase resilience in the supply chain. Additionally, we collaborate with stakeholders—governments, industry peers, and technology providers—to leverage financial incentives and scale green technologies, further balancing short-term and long-term goals.

Through transparent communication of our sustainability progress, we align stakeholders around our long-term vision, demonstrating the financial and environmental benefits of our climate resilience initiatives. This approach ensures both immediate financial stability and long-term sustainability, creating lasting value for our business, stakeholders, and the environment.

What role do emerging technologies, such as Artificial Intelligence (AI) play in your company’s sustainability efforts?

We utilize emerging technologies like Artificial Intelligence (AI) to enhance sustainability across our operations. AI helps optimize resources, reduce environmental impact, and improve transparency. By processing large datasets, AI identifies patterns that drive more sustainable practices. For instance, predictive analytics powered by AI optimize energy use in manufacturing, lowering waste and consumption. It also aids supply chain management by accurately forecasting demand and adjusting production schedules to align with environmental objectives, reducing overproduction and material waste.

AI improves transparency by providing real-time data to track sustainability progress, helping us meet key goals and adhere to regulations. Furthermore, AI enhances operational efficiency, lowering costs while minimizing our environmental footprint, creating value for the business.

Through continuous investment in AI and similar technologies, CTC remains at the forefront of industry trends and regulatory changes, strengthening our commitment to responsible business practices. These technologies not only help us achieve environmental goals but also deliver value to our stakeholders, ensuring long-term sustainability and profitability. In this way, AI plays a critical role in meeting both our environmental and business targets.

 

Jessica Bai 

– Operations Director

What is your advice to young women looking forward to building a career in STEM?

For young women looking to build a career in STEM, my advice is to embrace challenges and seize opportunities with confidence and passion. STEM fields, particularly in supply chain and operations, are full of potential to drive meaningful change. These careers require a mindset of continuous learning, adaptability, and problem-solving.

First, pursue your interests and understand how they align with various STEM disciplines. Fields like supply chain and operations demand strong analytical skills, data-driven decision-making, and organizational abilities. Next, surround yourself with mentors and build a supportive network. Mentors can offer invaluable guidance and help you navigate challenges, while mentoring others can foster mutual growth.

Additionally, continue developing both technical and soft skills. In supply chain and operations, communication, collaboration, and leadership are key to success. Understanding how your role fits into the larger business context will set you apart.

Lastly, embrace your unique perspective. Women bring valuable insights to problem-solving, and it’s important to advocate for yourself and share your ideas. Don’t let self-doubt hold you back — trust in your abilities and push forward. By combining passion, curiosity, mentorship, and continuous growth, you can thrive and inspire future generations of women in STEM.

How do you transform an industry that has existed for over a century to meet current global standards?

Transforming an industry that has existed for over a century to meet current global standards requires a strategic, multi-step approach. First, we must assess the current state of the industry, identifying outdated practices, technologies, and infrastructure that need modernization. Understanding the global shifts in customer expectations, technology, and regulation helps pinpoint areas requiring change.

A key step is fostering a culture of innovation and adaptability. Leadership must promote progress and the willingness to embrace new technologies such as automation, AI, and digital tools. For example, utilizing data analytics for better decision-making, improving sustainability, and enhancing supply chain transparency can increase efficiency and reduce costs.

Engaging stakeholders—employees, customers, suppliers, and regulators—is crucial. Clear communication, education, and demonstrating the long-term benefits of transformation can build consensus and reduce resistance to change.

Change should be gradual, starting with pilot programs or test runs to minimize risk. A phased approach allows for adjustments based on feedback before full-scale implementation.

Finally, continuous monitoring and adaptation ensure that transformation is sustainable. By tracking performance, gathering feedback, and optimizing processes, industries can stay competitive, evolve with global trends, and meet future challenges effectively.

 

Kushani Dassanayake

– People, Culture and Inclusion Director

How does your company’s culture influence employee engagement and overall performance?

We believe that a strong organizational culture is key to employee engagement and overall performance. Our culture is built on core values such as being truly inclusive and empowered, passionate and driven, and being stronger together creating an environment where employees feel valued and motivated to contribute to the company’s success. By aligning our culture with business objectives, we inspire employees to perform at their best, directly impacting company performance.

Collaboration is at the heart of our culture, promoting open communication, teamwork, and cross-functional cooperation. Employees are encouraged to share ideas and work together towards common goals, fostering innovation and a strong sense of community. Timely recognition and reward is central to maintaining engagement, with employees’ contributions acknowledged through formal programs, feedback, and celebrations, boosting morale and motivation.

We also prioritize work-life balance, offering flexible work practices, wellbeing programs, and support for personal commitments. A healthy, well-rested workforce is more productive, creative, and focused on delivering results.

Leadership plays a crucial role in shaping and maintaining this culture. Our leaders are accessible, transparent, and open to feedback, building trust and loyalty, which directly influences employee engagement and performance. This commitment to a positive culture ensures both individual and organizational success.

What do you think is the most important quality in an organization?

In today’s fast-paced business environment, agility is key to our success. Our company culture is embedded with agility which in turn empower teams to respond quickly to changes, innovate, and adapt to market dynamics. Our customer-centric approach ensures that all functions are aligned, enabling us to pivot swiftly in response to shifts in consumer preferences, market trends, or regulatory changes.

To promote agility, we decentralize decision-making, giving teams more autonomy to act quickly without bottlenecks from multiple management layers. This autonomy allows employees to take ownership, resolve issues, and seize opportunities swiftly. We also implement agile project management methodologies, breaking large projects into smaller tasks that can be executed in short cycles, enabling teams to evaluate progress, adjust priorities, and collaborate effectively.

Continuous learning and skill development are central to our agile culture. We provide training in innovation, problem-solving, and adaptive thinking, encouraging employees to challenge the status quo and drive change. Leadership plays a vital role by modeling agile behaviors and promoting openness, flexibility, and responsiveness to change. By embedding agility into our culture, CTC ensures that we remain competitive, responsive, and capable of achieving long-term success.