Results by targets
Target items

Targets

Progress
Since 2019, the JT Group has reduced Scope 1 and 2 Greenhouse Gas (GHG) emissions by 21%, while GHG emissions associatedwith purchased goods and services (Scope 3 Catgegory1) has increased by 3% ※.
Since 2019, Scope 1 and 2 GHG emissions of our tobacco business has decreased by 19% while GHG emissions associated with ourleaf and non-tobacco materials (Scope 3 Catgegory1) has increased by 3% ※.

20192023

2030-21%Emissions reduction

The JT Group will reduce its emissions and commits to be Carbon Neutral for its own operations by 2030 and achieve Net-ZeroGreenhouse Gas emissions across its entire value chain by 2050. (★):
- By 2030, we commit to reduce absolute Scope 1 and 2 GHG emissions by 47% in line with a 1.5°C reduction pathway against a
2019 base year
- By 2030, we commit to reduce absolute Scope 3 GHG emissions associated with purchased goods and services by 28% against a
2019 base year
- Our tobacco business will be Carbon Neutral for its own operations by 2030 and will achieve Net Zero greenhouse gas emissionsacross its entire value chain by 2050. In support of this, the tobacco business will reduce emissions from its own operations by
47% and emissions associated with leaf and non-tobacco materials by 28%, against a 2019 base year

Scope 1 and 2 GHG emissions

-47%

2019

2030

Scope 3 GHG emissions associated with purchased goods and services

-28%

2019

2030

JT Group
2023

3%

2023

-19%

Tobaccobusiness
2023

Scope 1 and 2 GHG emissions

-47%

2019

2030

Scope 3 GHG emissions related to procurement of leaf tobaccoand non-tobacco materials (NTMs)

-28%

3%

※T he increase in the tobacco business, the Group’s leading GHG emitter, was mainly due to temporary procurement increases from Tanzania and other countries that will
require more time to shift to renewable energy sources in the leaf-drying process, as a result of business scale expansion and climatic influences.
To shift to renewable energy sources, we have been putting effort into planting in these countries, with projected positive effects in the future. By following through on
initiatives like this, we project achieving carbon-neutral operations by 2030 and net-zero emissions by 2050.

The portion of renewable electricity used makes up 26% for the Group and 33% for our tobacco business.

Renewable energy

By 2050, the JT Group will transition all of our energy use to zero carbon energy by 2050.
- We will increase the proportion of renewable electricity that we use to 50% by 2030 and 100% by 2050. In our tobacco business,
50% by 2025 and 100% by 2040

JT Group

Tobaccobusiness

2023

2030

2050

26%
Renewable electricity used

50%

100%

2025

2040

50%

100%

2023

33%
Renewable electricity used

For details about the monitoring of the Group’s use of water, please visit JT website.
Since 2019, out tobacco business have reduced water withdrawal by 20%.

Protecting water

The JT Group will engage in responsible water management and will pursue the following. (★):- We will monitor the Group’s use of water in areas with water scarcity. Our tobacco business will reduce water withdrawal in its
own operations by 33% by 2030 against a 2019 base year

2019

Water withdrawal - tobacco business★ Targets taken from the JT Group Environment Plan 2030 and business-specific medium-term initiative targets.

20232030-20%-33%

Results by targets
Target items

Targets

With a view to enhancing biodiversity, the JT Group will contribute further to preserving forestry by pursuing the following in ourEnhancing biodiversity
tobacco business supply chain. (★):
– No deforestation, no- Replace all wood from natural forests used in the tobacco curing process of its directly contracted leaf growers with renewable
conversion
fuel sources by 2030

Progress
We planted trees in Tanzania, Zambia and Brazil, and project shifting fully to renewable energy sources by the 2030 crop yearplanting season.
2015

2030

Renewable fuel sources

100%

Since 2015, our tobacco business has reduced the volume of waste generated by 20%. Our processed food business has reduced
the volume of waste generated per unit of production volume associated with its Japanese domestic sites by 4.8% since 2022.
2023

Tobaccobusiness

Waste reduction

The JT Group will further reduce the environmental impacts of waste associated with its processes and products. (★)

Processed
food business

2015

2030

Waste generated

-20%
-20%

2022

2023

2030

-4.8%
Waste generated-20%

In 2023, our effort led to 89% reusable or recyclable packaging for the Group.
In 2023, effort by our tobacco business led to 88% reusable or recyclable packaging and 19% recycled content in packaging, up
1% year-on-year.
Our processed food business adjusted specs for packaging, made trays thinner or completely removed them to reduce thevolume to packaging materials and waste generated. The processed food business also implemented an initiative to reduce thevolume of plastics we use by making plant-use plastic bags thinner or replacing them with bags made of recycled materials.

2023

Designing forcircularity– Packaging, productand device

The JT Group will reduce our packaging (including plastic) and ensure that the remaining is 88% reusable or recyclable by 2025,
rising to 100% by 2030. (★):- Our tobacco business will reduce packaging and achieve 85% recyclability by 2025, rising to 100% by 2030
- In total, recycled content will account for 20% of our tobacco business packaging by 2025. The tobacco business will seek tofurther increase the use of recycled materials in its packaging- Our processed food business will reduce packaging weight and utilize renewable plant-based resources to reduce environmental impact of its products

JT Group

2025
89%

2030

88% 100%

Reusable or recyclable packaging

2023
2025

Tobaccobusiness

Reusable or recyclable packaging

2030

88%
85%

100%

2023
2025

19%
Recycled content of packaging★ Targets taken from the JT Group Environment Plan 2030 and business-specific medium-term initiative targets.

20%

Results by targets
Target items

Targets

Reduced-Risk Products Our tobacco business will make its RRP* available in an increasing number of countries worldwide.
1Creating first-in-classdrugs

In our pharmaceutical business, we will continue our efforts and investments in research and development activities for innovative drugs in specific therapeutic areas.

Progress
In 2023, we offered RRP (Reduced-Risk Products), with the potential of risk reduction, social consideration, convenience, andaffordability, such as Heated Tobacco Sticks (HTS), infused tobacco products, E-Vapor and oral products in 18 countries.
(8 countries in 2022)
In June 2023, Shenzhen Salubris Pharmaceuticals Co., Ltd., our license partner, received regulatory approval of enarodustat in
China and in July 2023, LEO Pharma A/S, our license partner, has submitted a marketing authorization application for delgocitinib
in Europe. In September 2023, we have filed a manufacturing and marketing approval application in Japan for in-licensed JTE-061(tapinarof).

In 2023, we spent 32.2 billion Yen on our research and development activities.

Food inclusion

In our processed food business, we will be aware of the diversifying values and interests of our consumers. Most of all so that ourconsumers can enjoy delicious food, we will not only exclude certain raw materials, but also develop and provide high-value-addedproducts, such as allergy-friendly products, products that do not use ingredients derived from animals, or products that are
health-conscious and satisfy other preferences.

We stay close to ever-diversifying customer values and interests and develop and offer high-value-added products. One of theinitiatives is the Beyond Free line of products introduced in 2023. This line offers authentic flavors without using specific ingredients or components. We offered staple menus such as rice or noodles as well as side dishes and desserts to color the dining table.

Talent attraction

Our tobacco business will aim at achieving yearly Global Top Employer certification. (★)

Over 10 consecutive years up to 2023, we were certified as a Global Top Employer.
In the tobacco business, recordable injury rate*2 declined 47% from 0.72 in 2015 to 0.34 in 2023.

Tobaccobusiness

Health and safety

We will prioritize the health and safety of our employees by proactively monitoring physical and mental health with the goal ofachieving zero workplace injuries.
- Our tobacco business will decrease the injury rate to 0.1 by 2030 in line with its vision of Zero workplace injuries- Our processed food business will aim for injury rates to or below 0.63 by 2030, with a view to achieving Zero workplace injuries

Development support

2023

2030

0.34

0.1

Recordable injury rate

In the processed food business, recordable injury rate decreased 4.75% from 0.90 in 2018 to 0.86 in 2023. We will continue toimprove the safety awareness of our employees, while we aim to reduce the number of occupational accidents. We will do so by
providing detailed responses that take into account the circumstances on-site.

Processed
food businessWe will create an ecosystem in which each JT Group employee can consider their own careers and make career choices. We
will also provide learning opportunities tailored for each employee to proactively support their growth and the growth of ourorganization.

20152018

2023

2030

0.86
Recordable injury rate

0.63

Our processed food business provided tier-based trainings tailored to the employee’s growth issues. For example, growth support
specific to each employee’s growth stage, or human resource development for next-generation leaders involving multifaceted
perspective.

Please refer to our website for Group-wide initiatives.
Since 2015, the JT Group employees volunteered 218,070 hours on company time. The progress rate against the target is 73%.

Internal and external
collaboration

To promote collaborations within the Group across regions and functions, we will provide opportunities for collaborations while
also proactively engage in collaborating with external parties to contribute to the development of inclusive and sustainablecommunities. Between 2015 and 2030, our employees will contribute 300,000 volunteering hours.

2015

Hours spent volunteering★ Targets extracted from the JT Group Environment Plan 2030 and targets extracted from sustainability strategy of each business.
*1 RRP (Reduced-Risk Products): Products with the potential to reduce the risks associated with smoking.
*2 Recordable injury rate = Recordable injuries/200,000 hours worked.

2023

218,0702030

300,000

Results by targets
Target items

Targets

Progress
100% of our key suppliers were screened against ESG criteria.
2023
20192023

100%
100%Supplier screening implementation rateIn 2023, 98.57% of our supplying entities reported against ALP.
(94% in 2022)
2023
2018

2025

98.57%
100%

ALP coverage rate: Supplying entities base

Supplier screening andOur tobacco business will screen 100% of its key suppliers against environmental, social and governance criteria by 2023. The
supply chain due
tobacco business will also implement Agricultural Labor Practices (ALP) program in all leaf-sourcing countries by 2025. (★)
diligence

100% of our directly contracted growers and 99.99%*3 of our leaf merchants’ growers were covered by ALP. 89.1% of our volumes
were covered by ALP, compared to 83% in 2022.

2023
2018

2025

Directly contracted growers

100%100%

2023
2018

2025

99.99%
100%

Leaf merchants’ growers

2018

2023

2025

89.1%
100%

ALP coverage rate: Volume baseSince 2015, we invested USD 500 million in our communities and employees volunteered 218,070 hours on company time.

Community
investment

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

2015Hours spent volunteering★ Targets taken from the JT Group Environment Plan 2030 and business-specific medium-term initiative targets.
*3 Growers from India and China are excluded.

2023

218,0702030

300,000

Results by targets
Target items

Targets

Progress
In 2023, our tobacco business engaged openly and transparently in public policy debate and made our views known to regulators, NGOs and other relevant stakeholders in the countries where we operate.

Internal control

Our tobacco business will always protect its ability to participate in public policy debate with the aim to achieve balanced
regulation that meets societal concern and support business growth. The tobacco business will also engage in dialogue withlaw enforcement agencies, with the goal to exchange intelligence regarding illegal tobacco products, in order to support thereduction of these products.
In our pharmaceutical business, to develop talent and foster employees’ ethical awareness and sense of responsibility towards
saving patients, we will continue to learn more about patients’ needs by engaging in dialogue with medical experts throughour internal educational activity “For the Patients Project.” We will also conduct, among others, regular training programs for ourmedical representatives to provide medical professionals with latest, appropriate information on pharmaceutical products.
Our processed food business will promote food safety management in compliance with global food safety standards to develop
the highest level of food safety. While working on enforcing food safety and quality assurance, the processed food business will
also enhance the way it communicates with consumers to provide them with safe, secure and high-quality products.

In 2023, our Anti-Illicit Trade team provided 2,143 intelligence reports to law enforcement agencies and advised 2,088 law
enforcement officers on counterfeit recognition.
In the pharmaceutical business, we provide opportunities for our employees to consider drugs needed on the healthcare
front lines from the patient standpoint. Recently, we carried out interviews with health professionals and representatives ofhealthcare corporations and children’s hospices, and also organized dementia experiential sessions using VR internally, led
by the 11 employees who took part in our “For the Patients Project” as facilitators. After their initial training, all of our medical
representatives take an e-learning course once a month to keep their skills and knowledge up-to-date.
Our processed food business continued to reinforce its quality assurance system through concerted effort among the Groupfirms, including mutual inspections and training as well as regular inspections of both its own factories and those of ouroutsourcers. Through internal training, our processed food business builds employee awareness and nurture corporate culture
in support of food safety. It continuously reviews the FAQ page of the website so that customers can find answer to theirquestions efficiently.

Supplementary information: Scope of the results by targets• This reference material is based on the JT Group Sustainability Targets published in February 2024, and incorporates 2023 results. For results compiled based on the JT Group Environment Plan 2030, which was the primary guideline up to February 2024, and former sustainability targets by each business, please download the files from the JT website.
• The JT Group Sustainability Targets include newly set targets. This reference material compiles information on former KPIs (16 target items out of the current 25).

Relevant materiality

Living with the planet

Value creation that exceeds consumer expectations

Investing in our people and supporting their growth

Responsible supply chain management

Good governanceTarget items covered in the report
Emissions reduction

Reduced-Risk ProductsInternal and external collaboration

Renewable energy

Creating first-in-class drugs

Supplier screening and supply chain due
diligenceProtecting water

Food inclusion

Community investment

Enhancing biodiversity– No deforestation, no conversion

Talent attraction

Internal control

Waste reduction

Health and safety

Designing for circularity– packaging, product and device

Development support※ For the JT Group Sustainability Targets (all 25 target items), please refer to the JT website.