Consider a system S that is coupled to a bath B. Let {$|s_i\rangle 's$} and {$|b_j\rangle 's$} be the eigen states of the system and bath hamiltonians respectively (i.e)
\begin{align} \hat{H}_{S}|s_i\rangle = E_{s_i} |s_i\rangle\\ \hat{H}_{B}|b_j\rangle = E_{b_j} |b_j\rangle\\ \end{align} and the total Hamiltonian of the system is given by: \begin{align} \hat{H}_T = \hat{H}_{S}+\hat{H}_{B}+\hat{H}_{int} \end{align} Then the direct product space $S\otimes B$ is spanned by {$|s_i b_j\rangle\langle s_i b_j|$} and it is not the set of eigen states due to the interaction term $\hat{H_{int}}$. But, it could be used as a basis to find the trace of $\rho(t) \hat{A}(q_s) $. Where $\hat{A}(q_s)$ is any operator in S and only depends on the system degrees of freedom. The expectation value of this system operator is given by: \begin{align} \langle A(q_{s_i}) \rangle = \textbf{Tr} \ \rho(t) A(q_s) \end{align}
In construction of the reduced density matrix $\sigma_{s_i,s_k}(t)$, we get the expression to be: \begin{align} \sigma_{s_i,s_k}(t) = \sum_{b} \langle s_i b_j| \rho(t)|s_k b_j\rangle = \textbf{Tr}_\textbf{B} \langle s_i| \rho(t)| s_j \rangle \end{align}
Questions
How do we arrive at that final expression considering that systems and bath states are interacting and are entangled to each other?
What is the physical significance of constructing the reduced density matrix? Could point to some calculation that could help me the reader appreciate the need for constructing the reduced density matrix.
What are the subtleties that are involved in constructing the reduced density matrix in the Many body physics or molecular physics?