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

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

We clarify the meaning we attach to specific

The scope of the data (correct for the

We provide information for the calculations,terms used as part of our performance databusiness structure of the JT Group as offormulas, consolidation method, and any

points.

December 31, 2023) and any exclusions*, if

assumptions or estimates used.

applicable. We report data for the entire JT
Group, including subsidiaries, wherever
possible.

categories:

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 ASSUMPTIONSThis category includes reported cases related to

The entire JT Group, including

The number of grievances are counted

discrimination. Discrimination occurs when asubsidiaries*A.

based on exported data from our Reporting

person, or group of people, is treated lessfavorably than another person or group based on
gender, age, race, religion, disability, sexual
orientation, marital status, family status, ethnic
background, national origin, or any othercharacteristic protected by law.

Concerns Mechanism.

NUMBER OF REPORTED CASES OF GRIEVANCES ABOUT HUMAN RIGHTS DEFINITIONSDEFINITIONSSCOPEThe entire JT Group includingThis category includes reported cases related to*Asubsidiaries .

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSThe number of reported cases is counted
based on exported data from our Reportingharassment (including sexual harassment andConcerns Mechanism.

moral harassment), discrimination, child labor,
breach of human rights, and data privacy
violation.
NUMBER OF REPORTED CASES OF FRAUD AND MISUSE OF COMPANY ASSETS
DEFINITIONSSCOPEThe entire JT Group includingThis category includes reported cases related to*Asubsidiaries .

fraud and misuse of company assets.

NUMBER OF REPORTED CASES RELATED TO ANTI-COMPETITIVE BEHAVIORDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSThe number of reported cases is counted
based on exported data from our Reporting
Concerns Mechanism.

DEFINITIONSThis category includes reported cases related to

SCOPE

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSThe entire JT Group including

The number of reported cases is counted

subsidiaries*A.

based on exported data from our Reporting

breach of competition law.

Concerns Mechanism.

NUMBER OF REPORTED CASES RELATED TO CORRUPTION

DEFINITIONSThis category includes reported cases related tobribes and kickbacks.

SCOPE

The entire JT Group including*A

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

subsidiaries .

Mechanism..

NUMBER OF REPORTED CASES OF GRIEVANCES ABOUT LABOR PRACTICESDEFINITIONSThis category includes reported cases related toabuse of power, retaliation, exclusion, conflict of

SCOPE

The entire JT Group including*Asubsidiaries .

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSThe number of grievances is counted basedon exported data from our ReportingDEFINITIONSSCOPEinterest, unlawful and unfair dismissal,

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

Concerns Mechanism.

inappropriate and disrespectful behavior, andbreach of employee health & safety
requirements.

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

survey, conducted online,.

*Cbusinesses , excluding Torii

corporate email address receive an

Pharmaceutical.

invitation to complete the survey, and all
employees who do not have an email
address access to online questionnairewith their unique ID and password.

PERCENTAGE OF ELIGIBLE EMPLOYEES WHO PARTICIPATED IN THE JT GROUP CODE OF CONDUCT TRAININGDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSThe number of employees who underwent

Our Japanese operations, including

The training data is calculated based on an

training, namely e-learning regarding thesubsidiaries of Japanese domestic

assumption that all employees with a valid

JT Group Code of Conduct.

*Cbusinesses , 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 2023 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 2023

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 2023. 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 2023 are excluded fromthe data, as they were not eligible for a2023 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

DEFINITIONS<Definitions of the individuals>•

Employees: Individuals who are in an＜Number of Fatalities＞•

The entire JT Group, including

METHOD, AND ASSUMPTIONS<Consolidation method>•*A

employment relationship with thesubsidiaries of Japanese domestic

This includes employees andbusinesses, health and safety data areor its application.

supervised workers, contractors, andreported to headquarters by individual

Supervised workers: Individuals who,

members of the public.

functions and the subsidiaries on an•

though not employees, perform regular•

In our Japanese operations, including

subsidiaries .

organization according to national law•

DATA CALCULATION, CONSOLIDATION

SCOPE

annual basis, while serious incidents

work on-site for or on behalf of the<Lost Time Injury Frequency Rate(LTIFR)>

are reported immediately. The

organization.

<Occupational Illness Rate(OIR)>

numbers reported are based on theContractors: Individuals who are not<Work Accident Severity Rate>

number of health and safety related

JT Group employees and provide•

services permanently described in acontract to the JT Group whose work•

The entire JT Group, including

events that were submitted to, and are

subsidiaries*A.

recognized by, relevant JapaneseThis includes employees andauthority as such.

are not under the JT Group's

supervised workers.

supervision.

※ This rate is not available forcollected globally and individual sites※ Supervised workers are notcontractors and members of the public

and locations report to thecategorized as contractors because

because their working hours are notheadquarters through a system on an

their works are monitored by the JT

managed by the JT Group.

ongoing basis.

•

At JTI, health and safety data areGroup employees.
•

Members of the public: Third-parties<Data calculation>other than mentioned the above. The•

examples are as follows.


Visitors

Number of Fatalities: The total numberof all work-related fatalities within our
defined scope.

Contractors who provide services•

Lost Time Injury Frequency

temporarily. (e.g. gardener,

Rate(LTIFR): This is calculated by thecarpenter)following formula within our defined

Sub-contractors who are not JT

scope.

Group employees and are hired JT•

Total number of ʻLost TimeGroup contractors to perform

Injuries(LTIs)ʼ / Total working

specific tasks as part of the overall

hours * 1,000,000 working hours

project from which the JT Group•

Occupational Illness Rate(OIR): This

benefits. (e.g. Electricians who

is calculated by the following formula

work as part of a construction

within our defined scope.

project a JT Group workplace.)•

Total number of ʻOccupational
Illnessesʼ / Total working hours *<Definitions of the category>•••

Fatalities: The case which is died1,000,000 working hours•

Work Accident Severity Rate: This iscaused by work-related injuries or

calculated by the following formula

illnesses.

within our defined scope.

Lost Time Injuries(LTIs): The case•Total number of days absent fromwhich is absent from work 1 day orwork due to injuries or illnesses

more caused by work-related injuries.

caused by work accidents / Total

Occupational Illnesses: The case which

working hours * 1,000 working

is absent from work 1 day or more

hours

caused by work-related illnesses.

※ The ʻTotal working hoursʼ for the※ ʻOccupational Illnessesʼ is negative

supervised workers are calculated by

impacts on health arising fromusing ʻregular working daysʼ andexposure to hazards at work.

ʻregular working hoursʼ as the actualʻOccupational Illnessesʼ indicatesworking hours are not available in ourdamage to health and includes

Japanese operations.

diseases, illnesses, and disorders. The
terms ʻdiseaseʼ, ʻillnessʼ, and ʻdisorderʼ
are often used interchangeably andrefer to conditions with specificsymptoms and diagnoses.
※ Mental illness is included inʻOccupational Illnessesʼ. A mental
illness is considered to be work-related
if it has been notified

voluntarily by

the worker and is supported by anopinion from a licensed healthcare
professional with appropriate training
and experience stating that the illness
is work-related.
•

Work Accident Severity: This refers to
the severity level of accidents andrepresents the number of days absent
from work caused by work-related
injuries or illnesses.

<The cases of work-related accidents>
The following cases are considered to bework-related accidents.
In the JT Group, the words “workrelated“ injuries or illnesses and“workplace” injuries or illnesses are usedinterchangeably.

•

Employees・Supervised workers・Contractors: Individuals suffer frominjuries or occupational illnesses as aresult of carrying out their duties.

•

Members of the public: Individuals
such as visitors suffer from injuries or
occupational illnesses associated with
the JT Groupʼs own operations.
Or individuals such as temporarily
contractors and sub-contractors sufferfrom injuries or occupational illnesses
as a result of carrying out their duties
on the JT Group site.

Environment
OVERVIEWSCOPEWe 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 2023, hence data for years prior to 2023 have been restated.
ENERGYCDP submission can be found here: CDP Climate 2023
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
DEFINITIONS

We measure energy consumption and GHG emissions using the

DATA CALCULATION, CONSOLIDATION METHOD, AND ASSUMPTIONS

We calculate energy consumption, and Scope 1 and 2 GHG

DEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD, AND ASSUMPTIONSWorld 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),
where available. Finally, we use GHG emission conversion factors

DEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD, AND ASSUMPTIONS

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 2023
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 2023, we assessed the impact of ourcommunity investment programs in 10
countries, 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
DEFINITIONSRRP products include Heated tobacco,

SCOPE

All countries

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

Number of countries where RRP

E-vapor and Oral products

products are available: Number of

Product types:

countries where our Heated tobacco, E-•

Heated tobacco products:o

HTS (heated tobacco sticks):
HTS generate an aerosol
containing nicotine byheating a tobacco stick.

oInfused (infused tobacco
capsules): Infused is a hybrid
system which creates atobacco-enriched vapor using
indirect heating.

•

E-Vapor products: E-Vapor
products heat a nicotine-containing
liquid instead of tobacco leaves andcome in different formats: open
tanks, closed pods and disposables•

Oral products (nicotine pouches

vapor and Oral products were available byDecember of the reporting year.

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

and snus): They are usually in theform of small pouches to be inserted
in the mouth between the lip andthe gum. If they contain tobacco
they are referred as snus, if theydonʼt, as nicotine pouches
ZERO INJURIESDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

Our tobacco business

Injury rate

number of recordable injuries per 200,000(incl. Japanese tobacco business

The sum of the number of fatalities andhours 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 +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.

We define "recordable injury rate" as the••DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSJT Employees:

Reduction rate

Full-time, part-time, supervised

The difference of the base line (2015)

workers.

injury rate and 2023 injury rate, divided by

Excludes: commuting to normal

the 2023 injury rate.

place of work.
Recordable Injury rate
JTI Employees:

The sum of the number of fatalities andPermanent, temporary, independent

lost time injuries, plus restricted work

contractors to whom thecases and medical treatment cases divided

organization is liable for the generalby the total number of hours worked,

safety of the working environment

multiplied by 200,000 working hours.

(direct supervision).
Excludes:- Commuting to and from normal
place of work
- Some data from newly acquired
business has been excluded, as
newly acquired business needs 18
months to integrate the JT Group
Health and Safety Standards.
COMMUNITY INVESTMENTDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

Total amount of investment (U.S.

The entire JT Group, including

Total amount of investment (U.S.

dollars):subsidiaries*A and the JTI Foundation.

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 oneoff 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 betarget: 100,000 hours)

DEFINITIONS

measured.
•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
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 CHOICESCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSDEFINITIONS••

AND ASSUMPTIONSAll 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 ofparty 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.

•

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

Choice” as an employer with a third-

•

SCOPE

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

AGRICULTURAL LABOR PRACTICES (ALP)••

Number of countries certified as ʻTop

Number of countries awarded with

DEFINITIONSAgricultural Labor Practices (ALP) is a key
programs under the umbrella of Leaf
Supply Chain Due Diligence (SCDD). The
SCDD is a five-step framework process to
Identify, Prioritize, Respond, Measure, andCommunicate (including formal reporting)and report on labor and human rights inthe leaf tobacco supply chain.
ALP sets labor practice guidelines withdirectly contracted growers or with thirdparty leaf suppliers (to be implemented
with their contracted growers). At JTI, we
observe growers through announced andunannounced site visits. In ourinternational tobacco business, JTI local
teams conduct site visits where we havedirect contracts with growers, and ourthird-party leaf suppliers visit theircontracted growers. Observational data iscollected in individual markets (referred toas origins) and reported internally. The
observations made against labor practiceguidelines are analyzed and improvement

SCOPE

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSDEFINITIONS

actions are defined, in line with 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
the location in which the tobacco is grown,
usually (not always) in Northern
Hemisphere crop season matches calendar
year, and in Southern Hemisphere usuallycrop season starts in Q3 of the calendar
year and ends in Q1/Q2 the following year.
We report the data and events relevant forthe crop season, based on the year when
the crop season ends.
KPI 1: % supplier entities reporting to ALPSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSDEFINITIONSAll leaf suppliers - third-party leaf suppliers

SCOPE

Our tobacco business.

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

The percentage of supplier entities

and vertically integrated origins - who wereporting on Agricultural Labor Practices

purchase from in a given crop year and(ALP) is calculated as follows: the number

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. Leaf merchants are non- JT Group

JT is treated as a leaf supplier entity in theaffiliated legal entities/companies from

calculation.

which the JT Group sources/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. Both vertically integrated
origins and third-party leaf suppliers arereferred to as leaf suppliers. Third-party
leaf supplier data is based on the scope ofplanned purchases for that 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 vertically

All volumes both from third-party andis calculated as follows: total volume of leaf

integrated origins.

vertically integrated origins.

covered by ALP divided by total leaf

Total leaf volume is defined as planned leaf

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 ALPDATA 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.

AND ASSUMPTIONSDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

are purchasing leaf from in a given crop

establish a tailor-made approach to

The percentage of vertically integrated

year.

SCDD/ALP.

origins covered by ALP: calculated as the

We define the "total number of vertically

number of vertically integrated origins

integrated origins" as all growers from which

Introducing ALP in China and India iscovered by ALP, divided by the total

vertically integrated origins are purchasing

challenging due to the way the market isnumber of vertically integrated origins.

leaf from in a given crop year.

structured in these countries. For instance,

JT is treated as a leaf supplier entity in thethe third-party leaf merchants do not havecalculation.

direct 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
DATA CALCULATION, CONSOLIDATION METHOD,

DEFINITIONSSCOPEThe objective is to screen all key suppliers

Key suppliers of JT Group Tobacco Business

The number of key suppliers screened

against environmental, social, andUntil 2019, the percentage of JTI wasagainst ESG criteria represents thegovernance criteria by 2023.

solely released. From FY20, we disclose thesnapshot of the total number of key

integrated percentage of our tobacco

suppliers screened by the end of the

AND ASSUMPTIONSDEFINITIONS

Key suppliers are defined as (a) suppliers

SCOPEbusiness.

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONS

reporting year, including the supplierswith a planned or actual annual spend ofscreened during previous years.

more than 500,000 U.S. dollars

The percentage of key suppliers screened(50,000,000 JPY) or equivalent, (b)against ESG criteria is calculated as follows:

companies involved in our Know Your

the number of key suppliers screened

Supplier (KYS) program, (c) third-party leaf

against ESG criteria divided by the total

merchants, (d) intermediaries and (e)number of key suppliers.

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 process is defined as theassessment of potential and actual ESG
risks in key suppliers.
Until 2021, we were screening key
suppliers using self-assessment
questionnaires. Additionally, an
independent third party was tasked with

DEFINITIONS

identifying any ESG risks from open
sources. In 2021, we developed a new
supplier screening process to structure andfurther improve our screening
methodology. We deployed this process
globally in 2023.
The screening process consists of an initialcheck through MapleCroft using country
and industry risk indexes, and dataenrichment through Dun & Bradstreet.
Where risks are identified, further checks
are performed by an independent third
party (PWC).
In our Japan region, we screen key
suppliers using our supplier database,which lists companies according to their DU-N-S® Numbers. In 2021, we built on
this process by reassessing the key
suppliers identified as high-risk in our 2020
assessment. We also helped these suppliers
to make improvements.

SCOPE

DATA CALCULATION, CONSOLIDATION METHOD,
AND ASSUMPTIONSILLEGAL TRADE
DEFINITIONS"Law enforcement agencies (LEA) " are

SCOPE

JTI, excluding Japan region.

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 theAnti-Illicit Trade (AIT) team in iBase, a

We define “intelligence reports” as reports

database. Information related tothat provide intelligence information on

counterfeit awareness trainings is obtained

potential illicit trade of counterfeit orfrom weekly reports submitted by the Anti-

smuggled cigarettes. In some cases, theIllicit Trade teams, and this data is saved

report can be shared/disseminated more

on a stand-alone spreadsheet. Note: There

than once to multiple LEAs, and this ismay be a potential of reaching the same

counted.

individuals year on year but this is very
rare. On the rare occasion where additional

We define our "advisory capacity” asawareness sessions are delivered to those

providing guidance that is in no way

same individuals, this will contribute to theprescriptive.

continuous 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.