Sustainability strategy of tobacco business
Four strategic
focus areas
Products and services

Aspirational goals

Targets

ProgressSDGs

We will be a total tobacco company
offering consumers* an even greater
choice of products by focusing on
quality, innovation, and reduced-risk
potential.

Reduced-Risk Products
Reduced-Risk Products (RRP) offer real benefits to consumers and society. Our responsibility as a manufacturer is to continuously develop and launch RRP thatmeet consumer expectations and to provide information on them. We will leadin providing a range of consumer choice in the RRP category.

In 2022, we offered products (RRP) with the potential of risk reduction, social consideration,
convenience, and affordability, such as Heated Tobacco Sticks (HTS), infused tobacco products, e-cigarettes and oral products.

Product Materials and Packaging
We will reduce the environmental impact of our products and packaging
through design solutions, facilitating responsible collection and disposal, andconsumer awareness and education. More specifically, we will reduce our packaging (including plastic) and ensure that the remaining is 85% reusable or recyclable by 2025, rising to 100% by 2030. In total, recycled content will account for
20% of our tobacco business packaging by 2025.

We have carried out several initiatives looking at design solutions, responsible collection
and disposal, and consumer awareness and education.

In an effort to increase the presence of JT Group in reduced-risk products, we will be accelerating the level of investment, mainly towards heated tobacco sticks.

In 2022, our efforts led to 82% reusable or recyclable packaging and 18% recycled content
in packaging.
2022
2025

2030

82%

85%

Reusable or recyclable packaging100%

2022

2025

18%

20%

Recycled content of packaging

PeopleWe will be the employer of choice
by investing in people.

Zero Injuries
In line with our vision of zero workplace injuries, we will reduce injury rates by
25% by 2023 and 50% by 2030. (Baseline year: 2015).

Recordable injury rate*1 declined 47% from 0.72 in 2015 to 0.38 in 2022.

2015

Injury rate

Community Investment* 2
Between 2015 and 2030 we will invest US$600 million to help make communities inclusive and resilient, with our employees contributing 300,000 volunteering hours.

2023

2022 2030-47%

-25%

-50%

Since 2015, we invested US$450 million in our communities and employees volunteered
193,521 hours on company time.
2015

2022

450

2030

600

Investment amount (MM USD)

2015

Volunteering hours

Employer of Choice
We will be a certified employer of choice every year in at least 60 countries byfocusing on talent management, rewards, and empowerment.

2022

193,5212030

300,000

We were certified as employer of choice in 61 countries with Top Employers certification.
19 out of these countries also hold other accreditations.
2022

61
Number of countries certified as employer of choice* T he word, consumers, used in the context for the tobacco business means adult consumers. Minimum legal age for smoking varies in accordance with the legislation in each country.

60

Sustainability strategy of tobacco business
Four strategic
focus areas
Supply chain

Aspirational goals

Targets

We will reduce environmental andsocial risks, and enable transparent
and responsible practices across our
supply chain.

Greenhouse Gas Emissions
We commit to be Carbon Neutral for our own operations by 2030 and achieve
Net-Zero Greenhouse Gas emissions across our entire value chain by 2050. In
support of this, by 2030, we will reduce emissions from our own operations(Scope1 & 2) by 47% and emissions associated with leaf and non-tobacco materials*3 (Scope3 Category1) by 28%, against a 2019 base year.

ProgressSDGs

Since 2019, we have reduced greenhouse gas emissions from our own operations (Scope1 &2) by 16%, while emissions from our leaf and non-tobacco materials (Scope3 Category1)
have reduced by 13%.

20192022

2030

-16%
Scope1 & 2 GHG emissions2019-47%

2022
-13%

2030

-28%

Scope3 GHG emissions associated with purchased goods and services

Water and Waste
We will reduce water withdrawal by 15% and waste by 20%, in relation to ourown operations, between 2015 and 2030.

Since 2015, we have reduced water withdrawal by 23% and waste by 22% in relations to ourown operations.
2015

2030

2022

-23%
Water withdrawal

2015-15%

2030

2022

-22%
Waste generation

Forestry
We will replace all wood from natural forests used in the tobacco curing processof our directly contracted growers with renewable fuel sources by 2030.

-20%

Based on our 2022 tree planting activities in Tanzania, Zambia and Brazil, we estimate 98%
renewable wood supply in crop year (CY) 2029, based on actual tree planting captured
with the Agroforestry App in CY2022 (Nov 2021 - Feb 2022).

2015

Renewable fuel for tobacco curing2029 2030
98%
100%

Sustainability strategy of tobacco business
Four strategic
focus areas
Supply chain

Aspirational goals

Targets

We will reduce environmental andsocial risks, and enable transparent
and responsible practices across oursupply chain.

Agricultural Labor Practices
We will implement our Agricultural Labor Practices (ALP) program in all sourcing
countries by 2025.

ProgressSDGs

In 2022, 94% of our supplying entities reported against ALP.

2022 2025

2018

94%

100%

ALP coverage rate: Supplying entities base

100% of our directly contracted growers and 98% of our leaf merchants’ growers*4 werecovered by ALP.
2022
2018

2025
100%
100%

Directly contracted growers

2022
2018

2025

98%
100%

Leaf merchants’ growers

83% of our volumes were covered by ALP.

2018

2022
83%

ALP coverage rate: Volume base

Supplier ScreeningWe will screen all key suppliers against environmental, social, and governance criteria by 2023.

2022

Supplier screening implementation rate

We will ensure the Company isincluded in policymaking leading tofair and balanced regulation, andenhance our cooperation withgovernments to combat illegal
trade.

100%

In 2022, 100% of our key suppliers were screened against ESG criteria.

2019

Regulatoryenvironment andillegal trade

2025

2023

100%
100%Engagement
We will always protect our ability to participate in public policy debate with theaim to achieve balanced regulation that meets societal concern and supportsbusiness growth.

During 2022 we engaged openly and transparently in public policy debate and made ourviews known to regulators, NGOs and other relevant stakeholders in the countries where
we operate.

Illegal Trade
We will engage in dialogue with law enforcement agencies, with the goal to exchange intelligence regarding illegal tobacco products, in order to support thereduction of illegal tobacco products.

In 2022, our Anti-Illicit Trade team provided 2,000 intelligence reports to law enforcement
agencies and advised 1,956 law enforcement officers on counterfeit recognition.

*1 R ecordable injury rate = Recordable injuries/200,000 hours worked. Due to the consolidation of global operations of the tobacco business since January 1, 2022, data of certain business sites are not included as it will take up to 18 months to integrate occupational health and safety standards.
*2 Target for Community Investment is a Group-wide targets.
*3 N on-Tobacco-Materials refers to materials other than leaf tobacco, such as acetate tow, cigarette paper, packaging materials etc.
*4 Growers from India and China are excluded.