Fifth edition
Revised June 2023

JT Group Supplier Standards
1. Introduction
1.1. The JT Group aims to achieve the highest standards of integrity across its business

operations and its supply chain. To meet this objective the cooperation of the JT
Group suppliers is indispensable.
1.2. These Standards define the requirements for suppliers providing products (goods,services, software, technology or data) to the JT Group 1. We require suppliers tocomply with these Standards and to also ensure that their suppliers involved inproviding products to the JT Group comply with these Standards.
1.3. The JT Group expects suppliers to implement policies, monitoring and due diligenceand control processes as well as communication and trainings to enforce theseStandards in their business operations and supply chains.
1.4. Key suppliers are required to complete the JT Group’s certification as a condition to

do business with the JT Group. Key suppliers shall notify the JT Group promptly in
writing of any changes related to their legal name, address, bank account, owners,officers, directors, shareholders with 25% or more shareholding, beneficial owners or
any other change in control.
1.5. All Suppliers need to provide the following informationi)ii)iii)
iv)
v)

Legally registered nameCompany bank account holder nameCompany address
Bank account number
Address of the supplier bank.

2. Compliance with laws and regulations
2.1. Suppliers shall comply with all applicable laws and regulations.

3. Anti-bribery and corruption
3.1. The JT Group will not tolerate any form of bribery or corruption, in any of its businessactivities. The JT Group expects suppliers to comply fully with this position as a conditionof doing business with the JT Group.
3.2. Suppliers shall not offer or accept any form of bribe (i.e. anything of value given to aperson in return for a business advantage or to reward/induce improper performance bythat person) or engage in any other activity which may constitute a breach of any antibribery and corruption laws applicable to suppliers or the JT Group.
3.3. Exchange of excessive gifts, hospitality or entertainment could be considered a form ofbribery if offered to gain or retain a business advantage. Suppliers shall not offer or
accept any gifts, hospitality or entertainment on behalf of the JT Group without the JT
Group’s prior written approval.
Tobacco leaf growers are excluded as they are subject to the JT Group Agricultural Labor Practices requirements. 2An adverse human rights impact is any situation which deprives an individual of the rights included in theInternational Bill of Human Rights and/or the ILO’s Fundamental Principles and the Rights at Work
1

4. Preventing financial crime
4.1. The JT Group will not tolerate any form of money laundering, facilitation of tax evasion, or

any other financial crime in its business activities. The JT Group expects suppliers tocomply fully with this position as a condition of doing business with the JT Group.

4.2. Suppliers, including any person associated with the supplier (e.g., directors, employees,representatives, subcontractors or any other person acting for or on behalf of the supplier)shall not engage in any activity, practice or conduct which may constitute a breach of any
applicable laws prohibiting money laundering, facilitation of tax evasion, or any other formof financial crime.

5. Conflicts of interest
5.1. Suppliers shall avoid dealing with the JT Group employees who have an actual or

potential conflict of interest, i.e. when the JT Group employees’ personal interests oractivities in relation to the supplier could interfere with their responsibilities as the JTGroup employees.
5.2. Suppliers shall promptly disclose to the JT Group any situation that creates or might

create a conflict of interest involving the JT Group employees.

6. Economic sanctions and export controls
6.1. Suppliers shall comply with all applicable economic sanctions and export controls.
6.2. Suppliers are responsible for obtaining export licenses and authorizations required byapplicable laws and regulations for their products supplied to the JT Group.
6.3. In order to comply with applicable sanctions and its internal policies, the JT Group will

screen the supplier, and, as needed, its directors, officers, owners, beneficial owners andshareholders against sanctions and other governmental lists.

7. Fighting illegal trade
7.1. The JT Group works to prevent all forms of illegal trade in our products and expects

suppliers to safeguard their business operations and supply chains against association
with any form of illegal trade.

8. Responsible marketing8.1. Suppliers retained to conduct our products market research, marketing or

promotional activities shall comply with the JT Group’s Global Marketing Principles.

9. Data Security & Data Privacy
9.1. The JT Group requires suppliers to protect personal information in compliance with allapplicable privacy and data protection laws. Personal information provided by or on behalfof the JT Group should only be used, accessed, and disclosed as permitted by and strictlyin accordance with the contractual terms and conditions agreed with the JT Group.
9.2. The JT Group requires suppliers to have technical and operational measures in place

to secure the confidentiality, integrity and availability of information.

10. Human rights
10.1. Suppliers shall not cause or contribute to adverse human rights impacts 2 in theiroperations, and shall address such impacts when and where they occur, with regulardisclosure on progress.
10.2. Suppliers shall promote these standards across their own supply chains. In order todo so, suppliers are encouraged to refer to the UN Guiding Principles on Businessand Human Rights to develop policies and processes appropriate to their size andoperating context such as:•••A policy to meet their responsibility to respect human rights
A due diligence process to identify, prevent, and mitigate risks related to human rights
A remediation process to address problems related to human rights

10.3. We expect our suppliers to commit and comply with the following Standards:
a)
b)

c)

d)

e)
f)

Forced Labor 3 in all forms is prohibited.
Child Labor is prohibited. The JT Group expects its suppliers to follow the definitionof Child Labor as defined in ILO Convention 138 (minimum age of employment) and182 (eliminating all forms of child labor), or follow the local legislation, whichever
age is higher.
Suppliers shall treat their workers with dignity and respect, and will not use physicalpunishment, threats of violence, sexual, psychological or verbal harassment.
Suppliers shall ensure that fair, equal opportunities, and no discrimination exists inthe workplace4.
Suppliers shall ensue that working hours and remuneration comply with local
legislations and international conventions. Where local industry standards orinternational conventions are higher than applicable legal requirements, weexpect suppliers to meet the standards most favorable to workers.
Suppliers shall respect their employees’ right to freedom of association andcollective bargaining, without penalty or interference.
Supplier shall respect Environment, Health and Safety requirements as set forth in
this document under section 11.

2

An adverse human rights impact is any situation which deprives an individual of the rights included in theInternational Bill of Human Rights and/or the ILO’s Fundamental Principles and the Rights at Work3
Including but not limited to slavery, servitude, forced or compulsory labor, passport retention, recruitment fees,
human trafficking and exploitation4
Suppliers shall not discriminate in hiring or employment, including wages, benefits, promotion disciplinary
measures, termination or retirement, on the basis of race, religion, age, nationality, social or ethnic origin, sexualorientation, gender, disability, political opinion, union membership, marital or familial status, or other protectedclass

11. Environment, health & safety
11.1. Suppliers shall ensure safe and healthy working conditions for their employees,suppliers and visitors.
11.2. Suppliers shall have in place policies and management systems that ensure

environmental, health and safety hazards and risks are identified and assessed, andeither eliminated or appropriately managed.
11.3. Suppliers shall seek to optimize the use of resources, materials and utilities and tominimize waste, wastewater and air emissions.

12. Compliance review
12.1. The JT Group reserves the right to periodically review suppliers’ compliance with theseStandards. This may be carried out by the JT Group employees or third parties appointed
by the JT Group.
12.2. Suppliers shall grant the JT Group or a third party appointed by the JT Group, upon

reasonable notice, access to their premises, employees and relevant documentation
to enable an effective review to take place.
12.3. Where shortfalls are identified, suppliers shall cooperate with the JT Group to agree on

and implement timely and appropriate corrective action. In case of a breach of thesestandards or contractual agreements, the JT Group may take action against the Supplier,including suspending or terminating the contractual agreements.

13. Whistleblowing
13.1. The JT Group expects its Suppliers to establish or maintain a whistleblowing program

and take corrective actions to address concerns raised.
13.2. The JT Group expects its suppliers to report to the JT Group any concern in relation tocompliance with these Standards or a situation, incident or finding which may affectsuppliers’ compliance with these Standards, so that any issues can be promptly
identified, assessed and addressed.
13.3. Concerns or other matters can be raised with suppliers’ account manager at the JTGroup, or addressed in confidence to JT Legal and Compliance Division via online
reporting form accessible at the following URL:
Reporting Concerns:
https://www.jt.com/inquiries/reporting_concerns/input.html

Appendix
The following policies, principles and conventions were used in preparing these SupplierStandards:
1. The International Bill of Human Rights includesa) The Universal Declaration of Human Rights (“UDHR”)b) The International Covenant on Civil and Political Rights (“ICCPR”),c) The International Covenant on Economic, Social, and Cultural Rights(“ICESCR”)
2. THE JT GROUP Code of Conduct
3. International Labour Organization (ILO): with specific reference to the eight fundamental
Conventions:a) Freedom of Association and Protection of the Right to Organize Convention, 1948(No. 87)b)Right to Organize and Collective Bargaining Convention, 1949 (No. 98)c)Forced Labour Convention, 1930 (No. 29)d)Abolition of Forced Labour Convention, 1957 (No. 105)e)
Minimum Age Convention, 1973 (No. 138)f)
Worst Forms of Child Labour Convention , 1999 (No. 182)g)
Equal Remuneration Convention, 1951 (No. 100)h)Discrimination (Employment and Occupation) Convention, 1958 (No. 111)
4. JT Group Human Rights Policy
5. UN Guiding Principles on Business and Human Rights