Basis of Reporting
This page outlines the scope of reporting, and the way we define, calculate, and consolidate data, notably for topics such as compliance, humanresources, workplace health and safety, environment, and community investment. We provide the information according to the following three

DEFINITIONS

We clarify the meaning we attach to specific

The scope of the data (correct for theterms used as part of our performance databusiness structure of the JT Group as ofpoints.

DATA CALCULATION, CONSOLIDATION METHOD,

SCOPE

AND ASSUMPTIONS

We provide information for the calculations,formulas, consolidation method, and any*

December 31, 2022) and any exclusions , ifapplicable. We report data for the entire JT
Group, including subsidiaries, wherever
possible.

categories:

assumptions or estimates used.

Table of contents•

Compliance•

Human resources•

Workplace health and safety•

Environment•

Community investment•

Tobacco business sustainability targets

Compliance
NON-DISCRIMINATIONGRI 406-1
Total number of incidents of discrimination and corrective actions taken
DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

An incident of discrimination is described as

The entire JT Group, including

The number of grievances are counted

an act of treating an employee differently

subsidiaries*A.

based on exported data from our Reportingby imposing unequal burdens or denying
benefits, rather than treating each
employee fairly, based on individual merit.
Discrimination can also include cases ofharassment, which is defined as comments
or actions that are unwelcome, or should
reasonably be known to be unwelcome, tothe person toward whom they are
addressed, which has the purpose or effectof violating an individualʼs dignity or
creating an intimidating, hostile, degrading,humiliating, or offensive environment.

Concerns Mechanism.

NUMBER OF REPORTED CASES OF GRIEVANCES ABOUT HUMAN RIGHTS DEFINITIONSDEFINITIONSFor Japan Tobacco Inc. (JT) and Japanese
domestic Group companies, we include

SCOPE

The entire JT Group including*Asubsidiaries .

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSThe number of reported cases is counted
based on exported data from our Reportingcases related to harassment, and humanConcerns Mechanism.

relations. For Japan Tobacco International(JTI), we include cases related to childlabor, harassment, discrimination, physicalthreats and violence, and data privacy.
NUMBER OF REPORTED CASES OF FRAUD AND MISUSE OF COMPANY ASSETS
DEFINITIONSFor JT and Japanese domestic Group
companies, we include cases related toinappropriate use of company assets. For
JTI, we include cases relating to fraud andtheft of the JT Group and third-party
assets, misuse of IT resources, and thecases of intellectual property infringements
recorded under the Reporting Concerns
Mechanism.

SCOPE

The entire JT Group including*Asubsidiaries .

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSThe number of reported cases is counted
based on exported data from our Reporting
Concerns Mechanism.

NUMBER OF REPORTED CASES OF GRIEVANCES ABOUT IMPACTS ON SOCIETY
DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

We have defined our main areas of impacts

The entire JT Group including

The number of reported cases is counted

on society as anti-bribery and corruption

subsidiaries*A.

based on exported data from our Reporting

and anti-competitive behavior.

Concerns Mechanism.

NUMBER OF REPORTED CASES OF GRIEVANCES ABOUT LABOR PRACTICESDEFINITIONSFor JT and Japanese domestic Group
companies, we include cases relating to

SCOPE

The entire JT Group including*Asubsidiaries .

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSThe number of grievances is counted basedon exported data from our Reporting

improper work instructions, managementʼs

Concerns Mechanism. Excluded from thework attitude, colleaguesʼ work attitude,

data for JTI are HR cases that are classified

personnel assessment, personnel transfers,

as confidential.

overtime pay, retirement issues, labor
contracts, labor conditions, work
environment, and smoking environment.
For JTI, we include cases relating to breachof HR policies and procedures, conflict ofinterest, retaliation, unlawful dismissal,
inappropriate behavior, non-respect forDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

employee safety, and severe disrespectful
behavior.

PERCENTAGE OF EMPLOYEES WHO RESPONDED TO COMPLIANCE SURVEY
DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

The percentage of employees who

Our Japanese operations, including

The data is calculated based on an

responded to our annual compliancesubsidiaries of Japanese domestic

assumption that all employees with a valid*Csurvey, conducted online, or by a paper

businesses , excluding Torii

corporate email address receive anquestionnaire.

Pharmaceutical.

invitation to complete the survey, and all
employees who do not have an email
address receive a paper questionnaire.

PERCENTAGE OF ELIGIBLE EMPLOYEES WHO PARTICIPATED IN THE JT GROUP CODE OF CONDUCT TRAINING
DEFINITIONSThe number of employees who underwent

SCOPE

Our Japanese operations, including

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

The training data is calculated based on an

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

training, namely e-learning regarding thesubsidiaries of Japanese domestic

assumption that all employees with a valid

JT Group Code of Conduct.

businesses*C, excluding Torii

corporate email address receive electronic

Pharmaceutical.

communications regarding the JT Group
Code of Conduct.

Human resources
WORKFORCE INFORMATIONGRI 102-8
Information on employees and other workers
DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

The workforce consists of people working

The entire JT Group including

The figures are calculated based on

for the Company at the end of the year as

subsidiaries*A,

exported data from our HR systems.

follows:

We provide the following data with limited•

Full-time employee: is definedaccording to national legislation andscope due to data collection methodology:•

part-time employees: solely JTI*E.

practice regarding working time(such as national legislation that

•

•

•

The breakdown of temporary part-defines “full-time” as a minimum oftime employees and supervised

9 months per year and a minimum

workers: our Japanese operations,of 30 hours per week).

including subsidiaries of JapanesePart-time employee: is defined as andomestic businesses*C.

employee whose working hours per

No substantial portion of our work is

week, month, or year, are less thanperformed by workers who are legallyʻfull-timeʼ, as defined above.

recognized as self-employed, or bySupervised worker: is defined as anindividuals other than employees orindividual who performs regularsupervised workers, including employees

work on-site for, or on behalf of, theand supervised workers of contractors.

organization.
•

The gender breakdown of temporary

Permanent contract: is defined as a

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

contract for an indeterminate
period.
•Temporary contract: is defined as acontract for a limited duration or
determinate period.

PERCENTAGE OF TOTAL ELIGIBLE EMPLOYEES COVERED BY COLLECTIVE BARGAINING AGREEMENTS
GRI 102-41
Collective bargaining agreements

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

An employee is covered by a collective

Our Japanese operations, including

Data is calculated as of the end of the year,

bargaining agreement if the employee

subsidiaries of Japanese domestic

using data held in our HR systems.

*Cdeclares their intentions to be part of abusinesses . A total of 22 Japanesetrade union and pays periodical union dues.

domestic Group companies have labor
unions. Those without a labor union are outof scope.
Data from JTI is excluded, because the law
in some of the countries where we operate

DEFINITIONS

SCOPE

prohibits us from investigating whether an
employee is unionized.

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSMARKET PRESENCEGRI 202-1
Ratios of standard entry-level wage by gender compared to local minimum wage at significant locations of operation
DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

Significant locations for this indicator are

For JTI, the scope includes permanent full-defined as JT's Tokyo headquarters (HQ),

time and part-time employees, andcalculation is hourly minimum wage

JTI UK and JTI Trier factory in Germany.

temporary full-time employees. In JT, theand monthly entry-level wage.

Standard entry-level wage is defined as thescope includes only permanent full-timetheoretical lowest wage in the location andand part-time employees. Temporary full-calculation is hourly minimum wage

is therefore equal to, or lower than, thetime employees are excluded.

and hourly entry-level wage.

actual lowest wage paid in the entity.

•

•

•

JT Tokyo HQ: the basis for

JTI Trier factory: the basis for

JTI UK: the basis for calculation ishourly minimum wage and yearly

Local minimum wage refers tocompensation per hour or other unit oftime for employment allowed under law.
•

JT Tokyo HQ: official minimum wageof the Tokyo metropolitan area.

•

JTI Trier factory: official German
minimum wage.

•

JTI UK: official U.K. minimum wage.

entry level-wage.

EMPLOYMENTGRI 401-1
Total number and rates of new employee hires and employee turnover by age group, gender, and region
DEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD,

SCOPE

AND ASSUMPTIONSNew employee hires are defined as the

The scope of this data is detailed below,

The turnover and new employee numbers

number of new employees joining the JT

and excludes employees in entities whereare based on exported data from our HRGroup. Employee turnover is defined as thean SAP system has not yet beensystems, at the end of the year.

number of employees who left the JT

introduced. These breakdowns coverGroup for any reason, voluntarily or not.

permanent full-time, part-time employees,

Employee age is classified in three groups:

and temporary full-time employees.

turnover, divided by the total

under 30, between 30 and 50, and above

Employees transferring from other JT

number of employees at the end of

50 years of age.

Groupʼs companies are excluded, and not

the year.

classified as a new employee hire.

••

Turnover rate: the total number ofNew employee hire rate: the total
number of new employee hires,•

Number and rate of new employees

divided by the total number ofby gender: the entire JT Group,

employees at the end of the year.

*A

including subsidiaries .
•Number and rate of new employees
by age: our tobacco business inJapan and pharmaceuticalbusiness*D.

•

Number and rate of turnover bygender: the entire JT Group,DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

including subsidiaries*A.
•

Number and rate of turnover byage: the entire JT Group, including
subsidiaries*A, excluding Akros
Pharma Inc. and Fuji Foods.

GRI 401-2
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation
DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

Significant locations for this indicator

The data scope is aligned with the above

Benefits for temporary part-time

include JT Tokyo HQ, and JTI Geneva HQ.

definition.

employees in Geneva have been stated pro
rata.

LABOR/MANAGEMENT RELATIONSGRI 402-1
Minimum notice periods regarding operational changes

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSMinimum notice periods are defined as

We disclose significant operational changes

Notice periods are calculated and disclosed

those required, if any, by law in the country

that have substantial consequences for ain two different ways: the number ofwhere the operational change occurs.

large proportion of employees. The

months between the announcement of thereported information corresponds toclosure and the first redundancies, and theclosures or withdrawal from business

number of months between the

publicly announced during 2022 or earlier,announcement of the closure and the

but which had not been completed yet.

closedown.

TRAINING AND EDUCATIONGRI 404-2
Programs for upgrading employee skills and transition assistance programs
DATA CALCULATION, CONSOLIDATION METHOD,

DEFINITIONS

SCOPE

We consider skills management programs

We disclose global and local development

The examples of programs are disclosed inthat take account of employeesʼ needs andprograms.

the public domain such as our Global

future career opportunities, as well as

AND ASSUMPTIONS

website and Integrated Report.

requirements of the business.
GRI 404-3
Percentage of employees receiving regular performance and career development reviews, by gender and by employee categoryDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

We consider an employee to be receiving

The entire JT Group, including

Data is calculated as the total number ofregular performance and career

subsidiaries*A, and it includes permanent

employees who received a performancedevelopment reviews if the employee has

full-time and part-time employees, andand career development review in 2022

an opportunity to have their development

temporary full-time employees, but

divided by the total number of employees

and business objectives, as well as

excludes employees in entities where anat the end of 2022. This excludes

competences, evaluated by their superior

SAP system has not yet been introduced.

employees working in our factories, whereat least twice a year.

However, the scope of breakdown by

the reviews are carried out on paper andpositions is our tobacco business in Japan,

cannot be tracked by our HR system. New*Dpharmaceutical and JTI .

hires joining in Q4 2022 are excluded
from the data, as they were not eligible fora 2022 performance review.

DIVERSITY AND EQUAL OPPORTUNITYGRI 405-1
Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership,
and other indicators of diversity
DEFINITIONS

Employee age is classified in three groups:
under 30, between 30 and 50, and above

SCOPE

The entire JT Group, including*Asubsidiaries , excluding employees in

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

The figures are calculated based onexported data from our HR systems.

DEFINITIONS

50 years of age.

SCOPE

entities where an SAP system has not yet
been introduced. Akros Pharma Inc. and

For JT and Japanese domestic subsidiaries,

Fuji Foods are included in the data by

the following definitions are used for

position and gender but excluded from theemployee categories:

data by age group. The data consists of•

Executive Officers are persons whopermanent full-time and part-time

are appointed by the Board of

employees, and temporary full-time

Directors, are assigned certain

employees. We disclose only the gender

responsibilities, and delegate

and age breakdowns.

relevant authorities in accordancewith the rules defining the extent ofresponsibility and authority.
•

Management is defined as persons
in positions of supervision or
management according to national
legislation and practice, andexcluding Executive Officers.

•

Employees are persons who are notin management positions.

For JTI, the following definitions are used
for employee categories:•

Employees that are members of the
Executive Committee are

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

categorized as Executive Officers.
•

The Vice President and Directorlevel employees are categorized as
Management.

•

Persons of Manager level andAssociate level are categorized as
Employees.

EQUAL REMUNERATION FOR WOMEN AND MEN
GRI 405-2
Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation
DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

Significant locations for this indicator

In JT , the scope includes permanent full-

The figures for JT , JTI Geneva HQ and JTI

include JT Tokyo HQ, JTI Geneva HQ, andtime and part-time employees, andUK are calculated based on ʻannual base

JTI UK.

temporary full-time employees. In JTI

salary.ʼGeneva HQ , the scope includes permanent
Unless specifically stated, the following

full-time employees, and excludes thosedefinitions are used for employee

who are not paid in CHF, and members of

categories for JT:

the Executive Committee. In JTI UK, the, We calculate the average annual base

DEFINITIONS

•

SCOPE

scope includes permanent full-timesalary by gender for each employee

are appointed by the Board of

employees and Vice Presidents are

category defined at left. This average is

Directors, are assigned certain

excluded as no female employee is at thisused to calculate the ratio of annual baseresponsibilities, and delegate

position.

salary of women to men within eachwith the rules defining the extent ofresponsibility and authority.
Management is defined as persons
in positions of supervision or
management according to national
legislation and practice, andexcluding Executive Officer.
•

AND ASSUMPTIONS

Executive Officers are persons who

relevant authorities in accordance•

DATA CALCULATION, CONSOLIDATION METHOD,

Employees are persons who are notin management positions.

The following definitions are applied for
employee categories for JTI:•

Vice President•

Director•

Manager•

Associate

PERCENTAGE OF MANAGEMENT POSITIONS HELD BY WOMEN AT THE END OF THE YEAR

category.

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

In our Japanese operations, including

The entire JT Group, including

Data is calculated as the total number ofsubsidiaries of our Japanese domestic

subsidiaries*A, excluding employees inwomen holding a management position atbusinesses, an employee is categorized at aentities where an SAP system has not yet

the end of the year, divided by the total

position of management if the employee isbeen introduced. The data consists ofnumber of employees who had a

in a position of supervision or

permanent full-time and part-time

management position at the end of the

management, according to national

employees, and temporary full-time

year. In JT, the calculation excludes

legislation and practice, but is not an

employees.

employees who were in management

Executive Officer.

positions but have been reassigned to preretirement positions, as they are

At JTI, an employee is categorized at aapproaching the mandatory retirement

position of management if the employee isage.

Director level or Vice President level.
However, the ratio of JTI doesnʼt include
Vice President, as our target only includes
directors.

Workplace health and safety
OCCUPATIONAL HEALTH AND SAFETY
GRI 403-2
Hazard identification, risk assessment, and incident investigation

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONSIn the JT Group, the words “work-

We consider that a newly acquired businessIn our Japanese operations, including

related“ injuries or illness and “workplace”

needs 18 months to become fully

subsidiaries of Japanese domestic

injuries or illnesses are used

integrated in the JT Group way of working

businesses, health and safety data isinterchangeably.

from a health and safety perspective. This

reported to headquarters by individualis the time needed to implement all ourfunctions and the subsidiaries on an annual

The following cases are considered to behealth and safety polices, standards andbasis, while serious incidents are reported

work related.

practices and attain a minimum safety

immediately. The number reported is based

culture level. In our report, we include six

on the number of health and safety related

An employee or a supervised worker

full months of data after the integration

events that were submitted to, and are

suffers from an injury or occupation-phase to ensure consistency and accuracy

recognized by, relevant Japanese authority

related disease as a result ofof data trends versus the target.

as such.

•carrying out their duties.
•••

Number of fatalities: the entire JT

A third-party contractor suffers fromGroup, including subsidiaries*A. It

At JTI, health and safety data is collected

an injury or occupation-related

covers number of fatalities ofglobally and individual sites and locations

disease as a result of carrying out

employees (incl. supervised

report to the headquarters through atheir duties. (including on-site third-

workers), contractors, and third

system on an ongoing basis.

party operations).

parties resulting from an incident

A person suffers an injury or

involving an asset, such as a facility,

develops an occupation-related

or a vehicle being driven for

disease associated with the JT

business purposes.

Groupʼs own operations and, or a JT
Group employee while he or she ison duty.

•

Number of lost-time injury: theentire JT Group, including*Asubsidiaries . It covers employees

The data is calculated as follows:•

Number of fatalities: the sum of all
fatalities within our defined scope.

•

Number of lost-time injuries: thesum of all lost-time injuries within
our defined scope.

Below are our definitions of recordable(incl. supervised workers), andinjuries, lost-time injuries and occupational

contractors.

diseases. Any work-related injury requiring••

all lost-time injuries divided by

Lost time injury rate: the entire JT

200,000 hours worked within our*Amore than first aid is defined as recordable.

Group, including subsidiaries . It
includes employees (incl. supervised

Recordable Injuries include:

Lost-time injury rate*: the sum of

defined scope.
•

Absenteeism rate: total actual days

workers). This rate is not availableof absence divided by theoretical•

Fatalities

for contractors because theirworking days (regular working days)•

Lost time Injuries (LTI) of 1 day orworking hours are not managed bywithin our defined scope.

more

the JT Group.

•

Restricted Work Cases (RWC)•

preventing someone from doing

•

•

•

sum of all occupational diseases

tobacco business in Japan anddivided by 200, 000 hours worked

pharmaceutical business .
•Occupational diseases rate*: theAbsenteeism rate: solely our*Bhis/her regular job (no length
defined)•within our defined scope.

Occupational disease rate: In our•

Number of recordable injuries: theMedical Treatment Cases (MTC) is

Japanese operations, the scope wassum of all recordable injuries within

an injury that requires medication,

solely our tobacco business in Japan

our defined scope.

*B

treatment and medical careand pharmaceutical businesses .

* Data of actual supervised workersʼ

normally administered by a

From 2016, this expanded to all ofworking hours is not available in ourhealthcare professional and is

our Japanese operations, including

Japanese operations, therefore it isbeyond first aid.

the subsidiaries of our Japanese

calculated in the following manner: regular*C

Lost-time injury is a work-related

domestic businesses . At JTI, we

working days multiplied by regular working

injury that results in an individual

started covering all the locations inhours.

being unable to work on a

2018. This means that, from 2018,

subsequent scheduled workday or

the data scope is the entire JT

shift. It doesnʼt include fatalities.

Group, including subsidiaries*A.

Occupational diseases are negative•

Number of recordable injuries : Our

impacts on health arising fromJapanese and international tobacco

exposure to hazards at work.

business. Only employees (incl.

ʻOccupational diseasesʼ indicatessupervised workers) are in scope. In

damage to health and includes

our Japanese domestic groupdiseases, illnesses, and disorders.

companies, the data of supervised

The terms ʻdiseaseʼ, ʻillnessʼ, andworkers in 2015 is not available,ʻdisorderʼ are often used

therefore we used the 2017 data asinterchangeably and refer toa proxy for 2015.

conditions with specific symptoms•

Japanese and international tobacco

Mental illness is included inbusiness. Only employees (incl.

occupational diseases. A mental

supervised workers) are in theillness is considered to be work

scope. In our Japanese domestic

related if it has been notified

group companies, the data ofvoluntarily by the worker and issupervised workers in 2015 is notsupported by an opinion from aavailable, therefore we used thelicensed healthcare professional with2017 data as a proxy for 2015.

stating that the illness is work
related.
Fatality is a death resulting from awork-related injury orillness/occupational disease.
•

Recordable injury rate: Ourand diagnoses.

appropriate training and experience••

Absenteeism is, medical leave, sickleave, and absent from workwithout notification for permanent
leave (excluding paid leave) for fulltime employees. Part-time
employees are excluded as out ofscope.
•Employee: Individual who is in an
employment relationship with theorganization, according to nationallaw or its application.

•

Supervised worker is defined as anindividual who, though not an
employee, performs regular work
on-site for, or on behalf of, theorganization.

•

Contractor: Individual who is not a
JT Group employee that provides
services, described in a contract, to
the JT Group, whose work is notunder the JT Group's supervision.
Those who provide services
temporarily (E.G. gardener,
carpenter) are not defined ascontractors. Supervised workers are
not categorized as contractors
because their work is monitored by
the JT Group employees. We reportany health and safety data ofsupervised workers under
employees.

•

Sub-contractor: Individual who is
not by a JT Group employee and ishired a JT Group contractor toperform a specific task as part of theoverall project from which the JT
Group benefits. (E.G. Electricians
who work as part of a construction
project a JT Group workplace.) They
are categorized as third parties.

VEHICLE ACCIDENTS AND VEHICLE ACCIDENT FREQUENCY RATEDEFINITIONSOur Japanese domestic operations define avehicle accident as any incident that resultsin the death or an injury to an employee

DATA CALCULATION, CONSOLIDATION METHOD,

SCOPE

AND ASSUMPTIONS

Our tobacco business in Japan,•*Dpharmaceuticals business and JTI .
•Number of vehicle accidents: sum of
all vehicle accidents within our

Number of vehicle accidents: covers

defined scope.

(incl. supervised workers), part-time

vehicles and motorcycles used byworkers and/or third party.

our employees (incl. supervised

number of vehicle accidents divided

workers). In our Japaneseby million kilometers driven within

Our international tobacco business defines

operations, part-time employees are

our defined scope. While JTI uses

a vehicle accident as any incident involving

also in the scope.

actual data for kilometers driven, JT

Vehicle accident frequency rate:

calculates it based on the volume of

injury to an employee (incl. supervised

covers the number of vehicle

fuel used by type.

workers) and/or third party.

accidents per million kilometers

a fleet vehicle that results in death or an•

driven.

•

Vehicle accident frequency rate: theDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

If no injury occurs, they are not considered
to be vehicle accidents. In 2019, westarted excluding any cases where no
injury occurs, from our vehicle accidents.

PERCENTAGE OF CIGARETTE AND TOBACCO-RELATED FACTORIES CERTIFIED TO ISO 45001 (OHSAS 18001) SAFETY MANAGEMENT STANDARD
DEFINITIONS

Cigarette and tobacco-related factories

SCOPE

JTI*E.

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

Certification information is collected atinclude all our leaf processing, cigarettes,

individual factories. The percentage isand tobacco product manufacturing

calculated as the number of certified

facilities.

factories and locations, divided by the total
number of all factories within scope.

Environment
OVERVIEW
SCOPE

We use an operational control approach to determine the scope and boundaries of our environmental data reporting, which covers the entire
JT Group including subsidiaries*A, as well as some affiliates, and some contract manufacturers that meet specific criteria. Thus, coverage ofenvironmental data is wider than other*A level data shown in the other sections of our reporting.
We restate our environmental data, in accordance with our recalculation policy, to take account of significant changes to our business, such as
acquisitions, divestments etc. We do this so as to allow a fair comparison of environmental performance over time. We carried out such a
recalculation exercise in 2022, hence data for years prior to 2022 have been restated.
ENERGYCDP submission can be found here: CDP Climate 2022
GRI 302-1
Energy consumption within the organization
GRI 305-1
Direct (Scope 1) GHG emissions
GRI 305-2
Energy indirect (Scope 2) GHG emissions
GRI 305-3
Other indirect (Scope 3) GHG emissions
GRI 305-5
Reduction of GHG emissions

DEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD, AND ASSUMPTIONS

We measure energy consumption and GHG emissions using theWe calculate energy consumption, and Scope 1 and 2 GHG

World Resources Institute/World Business Council for Sustainableemissions, based on actual energy and fuel consumption at our sites

Development Greenhouse Gas Protocol: A Corporate Accounting andand locations from invoices and meters. Where this information is

Reporting Standard (2004 revised edition) and Greenhouse Gas

not available, we use extrapolations based on actual data from a

Protocol: Corporate Value Chain (Scope 3) Accounting andsimilar site or location to provide estimated energy consumption,

Reporting Standard as guidance.

which is then used to calculate associated GHG emissions.
Production, floor area, or full-time equivalent (FTE) data are the

We report GHG emissions across three areas:•••

main benchmarks used to calculate intensity metrics that are used

Scope 1: direct GHG emissions from corporate activities,

in the extrapolation process. Refrigerant emissions are reported assuch as burning of fossil fuels at factories.

part of Scope 1 emissions by equating the necessary refrigerant

Scope 2: indirect GHG emissions from consumption ofreplenishment to what would have been previously leaked into thepurchased electricity, heat, or steam.

atmosphere. Liquid CO2 usage in production is also captured.

Scope 3: other indirect emissions, including from theEmission factors are applied for each refrigerant type and Liquid

manufacture of products bought from other companies.

CO2 consumption mass.

The reporting unit for energy consumption is terajoules, and for
GHG emissions is thousands of metric tons CO2 equivalent.

For GHG reporting, we adopt a market-based approach and in Japan
we use GHG emission conversion factors for each electricity supplier,as published by the Japanese government for the latest available
year. In other countries, following the GHG protocol market-based
reporting guidance, we first account for supplier-specific GHG
emission conversion factors, where electricity has been contracted
at specific emissions intensities. If supplier-specific tariffs are notapplicable, we apply residual grid-mix factors, such as thosepublished by ʻGreen-eʼ and the Association of Issuing Bodies (AIB),DEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD, AND ASSUMPTIONS

where available. Finally, we use GHG emission conversion factors
provided by the International Energy Agency (IEA) and the U.K.
Department for Environment, Food and Rural Affairs as country grid
averages to ensure that all our electricity consumption is accounted
for within the emissions totals.
To calculate Scope 3 GHG emissions, emissions factors come from avariety of sources, including emissions factors from third-party
databases and our own life cycle assessments.
All emissions factors are reviewed and, where relevant, restatedannually to reflect the most accurate representation of emissions
attributable to the JT Group. Electricity factors are updated to reflect
actual grid performance for the relevant year(s) as published by the
IEA; ʻGreen-eʼ, and the Association of Issuing Bodies (AIB); or themost recent data if data for the current year is not yet available.
WATER AND EFFLUENTS
CDP submission can be found here: CDP Water 2022
GRI 303-3
Water withdrawal
GRI 303-4
Water discharge

DEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD, AND ASSUMPTIONS

We record and report water withdrawal and water discharge at ourWater withdrawal data and water discharge data are collected at oursites and locations, and take into consideration the framework onsites and locations from invoices and/or meters. If a site is unable

water reporting set out by CDP. We report total water withdrawal

to report volume of water withdrawal, we use extrapolations based

and breakdown by source, and total water discharge andon actual data from a similar site or location to provide estimatedbreakdown by destination. The reporting unit for water withdrawal

data. Production or FTE data are the main benchmarks used to

and water discharge is thousands of cubic meters.

calculate intensity metrics used in the extrapolation process. In theabsence of water discharge data, it is assumed that water discharge
will be equivalent to water withdrawal.

WASTE
GRI 306-2
Management of significant waste-related impacts
DEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD, AND ASSUMPTIONS

Our sites base their waste based on the following waste

Waste data is collected at our sites and locations, and is reported bymanagement hierarchy: reduce, reuse, recycle, and recover. If thesehandling method, primarily from invoices. If a site is unable tomethods are not feasible, a site will dispose of its waste (disposal

report volume of waste generation, we use extrapolations based on

being incineration without energy recovery, or landfilling).

actual data from a similar site or location to provide estimated data.
Production, floor area, or FTE data are the main benchmarks used

We report the total waste generated and the breakdown by handlingto calculate intensity metrics that are used in the extrapolation

method, including both non-hazardous and hazardous waste. The

process.

reporting unit for waste generation is thousands of metric tons.

PERCENTAGE OF ISO 14001 CERTIFIED CIGARETTE AND TOBACCO-RELATED FACTORIESSCOPEThe scope of ISO 14001 data is cigarette and tobacco-related factories, including subsidiaries, such as non-tobacco materials manufacturing
factories, within our tobacco business only.

Community investment
LOCAL COMMUNITIESGRI 413-1
Percentage of operations with implemented local community engagement, impact assessments, and development programs
DEFINITIONS

Implemented local community investment
programs are defined as investments in

SCOPE

The entire JT Group, including*Asubsidiaries .

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

The figures are calculated based on datafrom our community investment database,projects that improve the quality of life ofand data sourced directly from markets,

people where we operate in an impactfulwhich is cross-referenced with our financeway.

systems to confirm that the program was
implemented.

All community investment programs have arecorded input/output/impact defined
following the Business for Societal Impact(B4SI) criteria.
https://b4si.net/

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSIn 2022, we assessed the impact of ourcommunity investment programs in
9countries, and we are continuously
improving our impact assessment
methodology. Investments in communities
that relate to tobacco leaf production are
specifically excluded from this indicator.
ECONOMIC PERFORMANCEGRI 201-1
Direct economic value generated and distributed
DEFINITIONS

The value of community investment is thetotal sum of inputs as defined by the

SCOPE

The entire JT Group, including*Asubsidiaries .

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

The figures are calculated based on datafrom our community investment database

Business for Societal Impact (B4SI) criteria.

and market reports and checked against

https://b4si.net/

financial reports. All financial data isconverted from local currency to Japanese

Investments include employee time, cash,yen, using internally agreed exchange

DEFINITIONS

in kind, and management cost
contributions for the programs included
in GRI 413-1 that are provided to benefit acommunity, and JT International S.A.ʼsannual endowment to the JTI Foundation.
The calculation of time and management
cost is based on the B4SI methodology.
Cost of time is based on an average hourly
rate calculated using a weighted averagesalary (including bonuses) across all workgroups (excluding the Executive
Committee) based on data for the year up
to December 31, 2020.
Cash contributions are calculated based on
the gross monetary value donated.
In-kind contributions are calculated taking
into account depreciation for the goods orservices provided.

SCOPE

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

rates.

TOBACCO BUSINESS SUSTAINABILITY TARGETS
REDUCED-RISK PRODUCTS
DEFINITIONS

Number of T-Vapor and E-Vapor

SCOPE

Japan, Russia, UK, Italy

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSIn the tobacco industry as a whole over the

products* introduced:

mid-term, we estimate the HTS segment

To grow segment share for heated tobacco

will represent 15-20% of total revenues bysticks (HTS) in key HTS markets to thethe end of 2027 (On a basis of revenue,

mid-teens level by the end of 2027.

excluding revenue in China)

Number of countries where our T-Vapor
and/or E-Vapor products are available:
ZERO INJURIESDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

Our tobacco business

Injury rate

percentage of recordable injuries per(incl. Japanese tobacco business

The sum of the number of fatalities and

200,000 hours worked.

subsidiaries), Only employees (incl.

lost time injuries for both JT and JTI, plus

supervised workers) are in the

JTI's (RTC +MTC) divided by (Actual

scope.

working hours of JT-JTI Employees +We define "recordable injury rate" as the•DEFINITIONS

SCOPE

•

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

In our Japanese domestic Group

Actual working hours of JTI supervised

companies, the data regarding

workers + Theoretical working hours of JT

supervised workers in 2015 is notsupervised workers (approx. 240 working

available, so we used the 2017 datadays × 8 hours (regular working hours per

as a proxy for 2015.

day)) times (x) 200,000 working hours.

JT Employees:

Reduction rate

Full-time, part-time, supervised

The difference of the base line (2015)

workers.

injury rate and 2022 injury rate, divided by

Excludes: commuting to normal

the 2022 injury rate.

place of work.
JTI Employees:
Permanent, temporary, independent
contractors to whom theorganization is liable for the generalsafety of the working environment(direct supervision).
Excludes:- Commuting to normal place ofwork- Some data from newly acquired
business has been excluded, asDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

newly acquired business needs 18
months to integrate the JT Group
Health and Safety Standards.
COMMUNITY INVESTMENT
DEFINITIONS

Total amount of investment (U.S.
dollars):•

SCOPE

The entire JT Group, including
subsidiaries*Aand the JTI Foundation.

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

Total amount of investment (U.S.
dollars): Included in total: cash (including

We define "amount of investment in

JTI Foundation), management costs, time,

U.S. dollars/Yen" as the combinedin kind (JT target amount: 250 million U.S.

value of cash contributions, time

dollars, JTI target amount: 350 million U.S.

contributions, in-kind contribution ofdollars)

products, property or services andmanagement costs (community

Volunteering:

investment program staff salaries).

Number of hours of active engagement inThis definition is aligned with thecommunity activities during paid working

definition in the B4SI framework.

time (JTI target: 200,000 hours / JT

Our community activities are classified
according to the categories below:•

Charitable donation: ad hoc or one-target: 100,000 hours)

DEFINITIONS

off contributions to support others,e.g. post-disaster donations to acommunity in need.
•

Community investment: these
initiatives address social issues that
we identified as being relevant toboth our Company and ourcommunities. This is linked to a
strategy and outcomes can bemeasured.

•Commercial initiatives in thecommunity: these initiatives arebusiness-related activities, usually
undertaken by departments outside
the community function(e.g.
marketing R&D), to support thesuccess of the company andpromote its brand and otherpolicies, that also deliver community
benefit.

Volunteering:•

We define "Company time" as"during paid working hours". We

SCOPE

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

only account for employee
volunteering during working hours.
•

Employees include all of ourregistered employees in bothmarkets and factories.

•

We define volunteering as active
engagement in community
activities.

EMPLOYER OF CHOICE
DEFINITIONS

•

•

SCOPE

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS“Country” refers to a country in

All countries where we have a business

which any JTI legal entity waspresence. Top Employer is a global initiative

Employerʼ: total number of countries

certified. It can be a market office, athat is centrally coordinated (identification

certified as 'Top Employer' at JTI.

factory, or business support center.

of the countries and governance) but

If there are several certified JTI

locally addressed (audits are carried out at

local certifications: total number ofentities located in the same country,

a local level). Top Employer contributes tocountries in our tobacco businessthis does not impact the target. We

90% of the target. Other local certifications

awarded with local certifications.

only count each country once.

contribute to 10% of the target.

We define “a certified Employer of••

Number of countries certified as ʻTop

Number of countries awarded with

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

Choice” as an employer with a thirdparty certification based on external
assessment, such as Top Employer,
Great Place to Work, the Pride
Index, Investors in People, local
certifications such as Bilan, etc.
•

We define local certification as any
local third-party certification basedon external assessment.

•

The Top Employers Institute is theglobal authority on recognizing
excellence in people practices.

AGRICULTURAL LABOR PRACTICES (ALP)
DEFINITIONSAgricultural Labor Practices (ALP) is one of
our key programs under the umbrella ofLeaf Supply Chain Due Diligence (SCDD).
The SCDD is a five-step framework process
to Identify, Prioritize, Respond, Measure,

SCOPE

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSDEFINITIONS

and Communicate (including formal
reporting) and report on labor and humanrights in the leaf tobacco supply chain.
ALP sets labor practice guidelines withdirectly contracted growers or with thirdparty leaf suppliers. In JT, we observe thegrowers through site visits and/or
questionnaires. At JTI, we observe growers
through site visits where we have directcontracts with growers, and our third party
leaf suppliers visit their contracted growers.
Observation data is collected in individual
markets (origins) and reported internally.
The observations made against labor
practice guidelines are analyzed andimprovement actions are defined, in linewith the SCDD process.
We have three KPIʼs related to ALP: %suppliers' entities reporting to ALP, %volume covered by ALP, and % growers
covered by ALP.
The reporting year does not always match
crop season. Crop season vary according to

SCOPE

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

the location in which the tobacco is grown,
usually (not always) in Northern
Hemisphere crop season matches calendar
year, and in Souther Hemisphere usuallycrop season starts in Q3 of the calendar
year and ends in Q1/Q2 the following year.
We report the data/events relevant for thecalendar year to which the report isconcerned.
KPI 1: % supplier entities reporting to ALP
DEFINITIONSAll leaf suppliers e.g. leaf supplying entities

SCOPE

Our tobacco business.

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

The percentage of supplier entities(third-party leaf suppliers and verticallyreporting on Agricultural Labor Practices

integrated origins) who we purchase from

(ALP) is calculated as follows: the number

in a given crop year and who report on ALP.

of supplier entities reporting on ALP divided
by the total number of supplier entities thatIn the JT Group, we source leaf from third-

we purchase leaf from (third-party andparty leaf suppliers and directly contracted

vertically integrated origins).

growers.

JT is treated as a leaf supplier entity in theDEFINITIONSSCOPEThird-party leaf suppliers or leaf merchants

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

calculation.

are legal entities/companies, non-JT Groupaffiliates, from which JT Groupsources/purchases leaf globally.
ʻDirectly contracted growersʼ are growers
from which the JT Group sources leaf andwith whom local affiliates (verticallyintegrated origins) of the JT Group have asigned contract.
Vertically integrated origins and third-party
leaf suppliers are referred to as leaf
suppliers.
Third-party leaf supplier data are based on
the scope of planned purchases for thatcrop year.
KPI 2: % volumes covered by ALP
DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

Total volume of leaf covered by ALP:

Our tobacco business.

The percentage of volumes covered by ALP

includes third-party and verticallyExcludes: any volume that is currently

is calculated as follows: total volume of leaf

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

integrated origins.

planned but unassigned to third-party

covered by ALP divided by total leaf

Total leaf volume is defined as planned leaf

suppliers.

volume.

purchasing during the crop year, sourced
from vertically integrated origins and thirdparty leaf suppliers. The volume planned
but unassigned to third-party leaf suppliers
is also counted as unassigned volume when
we calculate the progress against the ALP
target e.g. currently all unassigned
volumes are treated as "not covered" as we
do not know from whom and where we willsource.
KPI 3: % of growers covered by ALP .
DATA CALCULATION, CONSOLIDATION METHOD,

DEFINITIONSSCOPE

We define the "total of number of growers"

Our tobacco business. Excludes: China and

The percentage is calculated as the number

as all growers from which third-party leaf

India (due to lack of traceability); for theseof growers covered by ALP, divided by the

suppliers and vertically integrated origins

countries we are working with suppliers tototal number of growers.

are purchasing leaf from in a given crop

establish a tailor-made approach to

JT is treated as a leaf supplier entity in the

AND ASSUMPTIONSDEFINITIONS

year.

SCOPE

SCDD/ALP.

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

calculation.

Introducing ALP in China and India ischallenging due to the way the market isstructured in these countries. For instance,
the third-party leaf merchants do not havedirect contracts with growers e.g. in India
flue-cured tobacco is sourced via auction
floors. We are working with leaf merchants
to establish a tailor-made approach on how
to run a leaf supply chain due diligence.
SUPPLIER SCREENING% of key suppliers screened on ESG criteria
DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

The objective is to screen all key suppliers

JT Group Tobacco Business

The percentage is calculated as the number

against environmental, social, andUntil 2019, the percentage of JTI wasof key suppliers screened against ESG

governance criteria by 2023.

solely released. From FY20, we disclose thecriteria, divided by total number of key

integrated percentage of our tobacco

suppliers. The numbers disclosed represent

business.

the snapshot of % of suppliers screened by

Key suppliers are defined as (a) suppliers

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

with a planned or actual annual spend of

the end of the year, cumulative withmore than 500,000 U.S. dollars

previous years.

(50,000,000 JPY) or equivalent, (b)companies involved in our Know Your
Supplier (KYS) program, (c) third-party leaf
merchants, (d) intermediaries and (e)contract manufacturing and licensees.
We define ESG as Environmental, Socialand Governance criteria as set forth in
our JT Group Supplier Standards. JTI has
specific suppliers' selection criteria that areconsistent with those of the JT Group.
Screening is defined as the assessment ofpotential and actual ESG risks in key
suppliers.
In our international tobacco business, from2017 to 2019, the key suppliers werescreened using self- assessment
questionnaires implemented in
SLC/MySupplier tool. In 2020, the key

DEFINITIONS

suppliers were monitored by JTI, and weused an independent third party, PWC, toidentify any ESG risks from open sources.
In 2021, we have developed a new supplier
screening process and kicked off a pilot toscreen all our key suppliers through aleading global risk analytics company. In
parallel we screen our suppliers throughPwCʼs Compliance Platform. With this new
approach, all our key suppliers through aleading global risk analytics company. In
parallel we screen our suppliers throughPwCʼs Compliance Platform. With this new
approach, all our key suppliers arescreened automatically which increased thecoverage to 100%. In our tobacco businessin Japan, a similar process is applied
increasing the coverage to 100%.
ILLEGAL TRADESCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSDEFINITIONS

Law enforcement agencies (LEA) are

SCOPE

JTI only.

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

All information (excl. data related todefined as state-registered entities

counterfeit awareness training) is sharedproviding law enforcement services.

and feedback received is recorded by the

We define "intelligence reports" as reports

Anti-Illicit Trade (AIT) team in iBase, athat provide intelligence information on

database. Information related topotential illicit trade of counterfeit orcounterfeit awareness trainings is obtained

smuggled cigarettes. In some cases, thefrom weekly reports submitted by the Anti-report can be shared/disseminated more

Illicit Trade teams, and this data is saved

than once to multiple LEAs, and this ison a stand-alone spreadsheet. Note: There

counted.

may be a potential of reaching the same

We define our "advisory capacity” as

individuals year on year but this is very

providing guidance that is in no way

rare. On the rare occasion where additionalprescriptive.

awareness sessions are delivered to thosesame individuals, this will contribute to thecontinuous professional development of
those individuals, as elements of theawareness sessions will change to reflectcurrent / emerging threats etc.
For the BoR the cut-off date fordisseminations made to LEAsʼ is 31
January.