The JT Group Biodiversity Statement
The JT Group is committed to minimizing the social and environmental impact ofour value chain, products and services. We are focused on protecting theenvironment, minimizing the use of natural resources, and respecting people,communities, and biodiversity.
We make sure we take an environmentally minded look into all aspects of ourbusiness – on both a global and a local level, from the way we source raw materials,
through the way we manufacture, to the way we ship finished goods.
For our tobacco business, our approach to biodiversity conservation andenhancement is built on understanding how our tobacco leaf production and value
chain can affect, and be affected by, biodiversity and ecosystem services, such aspollination, soil quality, water quality and climate regulation.
Our focus is on conservation and enhancement of biodiversity in our direct leaf
supply chain, where our biggest impact is and where we can have most influencein driving positive change. One of our key principles in leaf tobacco production is toreduce environmental impact and ensure efficient use of natural resources, whilestriving to conserve biodiversity. We have objectives and targets in place for natural
resources as part of the JT Group Sustainability Targets. Biodiversity is also afocus area in our Global Supply Chain Leaf Sustainability Framework.
We see biodiversity as an integral part of sustainable tobacco production and we
promote good agricultural practices and initiatives for its conservation andenhancement. These include soil conservation and good management practices,
renewable wood production, water conservation, and natural forest protection andrehabilitation.
The JT Group has conducted an initial risk assessment of our impact anddependency on biodiversity for our tobacco business and have recognized that wehave both an impact and a dependency on biodiversity, through our business
operations and use of ecosystem services, such as forest products, soil quality andwater quality. We will further conduct both qualitative and quantitative risk

assessment covering the whole JT Group to further understand our impact anddependency of our whole value chain.
Looking ahead, we commit to minimizing our impact on biodiversity and the wider
environment, which means that we will avoid, reduce, or mitigate our impacts on
biodiversity and linked ecosystem services, or where this is not feasible or mostbeneficial, restore or offset those impacts at a regional or national level.
To meet this commitment:

As a minimum, we will ensure compliance with regulatory requirements inrelation to biodiversity applicable in countries and regions where we operate.

We commit to assessing our impacts on biodiversity. For instance, we will
identify and avoid starting to operate in areas of high diversity, and we will
mitigate impacts where we are already operating.

We will undertake these assessments, engaging with stakeholders such as
suppliers, conservation organizations, external experts, and local communities,
to understand local issues and take into account their needs and requirements.

Based on the outcomes of the assessments and stakeholder we will implement
actions plans to avoid, reduce, regenerate, restore or offset our impacts, as wellas address the drivers of nature loss. We will establish monitoring mechanisms
to ensure the effectiveness of actions taken and report on progress.

In addition to addressing biodiversity in relation to our own operations andsupply chain, we will work with our business partners to address biodiversity
impacts across other areas of our value chain, e.g. third party leaf sourcing,packaging and other materials.

We will periodically review the JT Group Sustainability Targets and update thetargets relevant to natural resources and biodiversity. Regarding biodiversity,
we will work on ambition and targets towards no net loss and net positive
impact on biodiversity and will disclose our targets, including the year ofachievement accordingly.

We will integrate biodiversity conservation principles into key business policies,
procedures, and standards.

This statement has been endorsed by Hisato, Imokawa, Chief Sustainability Officerof the JT Group. This statement will be reviewed periodically by JT sustainability
management division to ensure it remains fit for purpose.