Human resources

Aspirational goal
We will be the employer of choice by investing in people.

TargetWe will be a certified employer of choice every year in at least 60 countries by focusing ontalent management, rewards, and empowerment.

Progress
We were certified as employer of choice in 67 countries (64 with Top Employer and 3 withother local employer certifications). In addition, 11 countries hold more than one
certification.
Read more about our latest progress on the JT Group's
tobacco business sustainability strategy.
Aspirational goal, target and progress for our tobacco business.

Our approach

The JT Group human resources management
philosophy
We believe that highly skilled and talented
people form the foundation of a company’s
success and contribute to real sustainablegrowth. In light of this, the JT Group
proactively takes steps to secure long-term
engagement and employee satisfaction.

Our employees are assets to the Company, and their skills and spirit are the driving force behind
everything we achieve. We are pleased to be an employer of choice, and our positive workplaceculture and environment help us to attract, retain, and develop talented individuals. We are also
taking further steps to create a diverse and inclusive culture.
To offer all of our employees the best possible experience, we are currently focusing on four areas:

Talentdevelopment

Talent attraction

Diversity andinclusion

Being aresponsible
employer

Talent development
Today’s business environment is evolving rapidly, and COVID-19 adds additional pressures. It
requires flexibility and the adoption of new skills, such as remote ways of working.
We have implemented various global and regional learning programs. In these unprecedented times
we supported employees as they navigated new digital learning platforms and courses. We
constantly invest in our employees, including at a managerial level, to ensure they flourish in theircareers.

Our commitment to talent development is seen in the fact that we recruit existing employees to fillopen positions. Our internal hire rate has now been above 90% for more than six years, and in 2020,
91.5% of employees were internally promoted.

For all employees at all levels
All of our employees can access comprehensive training programs. Fundamental business courses
in giving presentations, writing, or time management are available to those in junior positions. Moreadvanced programs such as task execution, negotiation skills, or leadership are aimed at middlemanagement and senior positions.
Various tools are available to make the training programs more accessible. For instance, in 2018,
we launched a global learning platform in our international tobacco business. It is available to
20,000 employees, who can choose programs according to their interests, such as leadership or
language learning.
In 2020, we refreshed our learning programs for employees in our Japanese operations. Employees
are now grouped into five stages of development. At each stage, they participate in training
programs on topics such as capability development, understanding roles and responsibilities, andinner reflection. In addition, we try to boost human resources development by linking off-the-job
training with on-the-job training.
As line managers play a key role in our employees’ careers, we hold regular performance and career
discussions throughout the year. Regular communication between managers and employees helps
to leverage our employees’ full potential and boost their development. In 2020, 85% of ouremployees participated in the 2019 performance review.

Online training
Following COVID-19, in our international tobacco business, all of our employees have access to
16,000 courses through the recognized video training provider LinkedIn Learning, as well as fully
digital mentoring and coaching programs. We also run various cross-regional programs to supportand develop young talent.

Future business leaders
One of our key initiatives is our talent partnership program, which aims to develop the global
capabilities of our employees and train our future business leaders. It is also a great opportunity for
employees to network and learn from colleagues with different backgrounds.
As part of this program, we organize an ‘Exchange Academy’ every two years* in our tobacco

business. In 2018, 25 employees were selected to take part. The participants spent one week inJapan and one week in Switzerland, working in teams to analyze and formulate the JT Groupstrategy for sustainable growth. Each team then gave a presentation and made a recommendation
to senior executives within our Group.
* In 2020, the academy was postponed due to COVID-19.

Case study

Virtual training for JT Group leaders
To ensure the sustainability of our learning and development initiatives even during COVID-19, JTI
directors carried out their Mindful Leadership course in a fully customized virtual format. The
program, led by the Ashridge Hult International Business School, is designed for experienced
leaders who are ready to enter the next phase of their leadership journey. The ten-week program
included self-study, group sessions, personal coaching, business simulations, and personalreflection.

This was an intensecourse spanningeverything frompersonal resilience tomanaging stress during
turbulent times. It also
included modules on
leading effectively underpressure and the art of‘inclusive conversation’when working withdiverse cultures, agegroups, and genders.

Talent attraction
Another priority for us is ensuring that we are chosen by the best talent. Although our operation isworldwide, the Company is not yet well known in some countries and we wish to find ways toconnect with talented individuals in these locations.
Attracting and retaining Generation Z* is particularly important, as this age group represents agrowing proportion of our new hires, and their unique skills will help drive innovation in the JT
Group. From a sustainability perspective, it is critical for us to understand this generation’s
professional expectations, which are different to those of previous generations.
*Generation born after the late 1990s.

With this in mind, in 2019 our international
tobacco business launched its first global
internship competition ‘Make It Bright’, inwhich students from 17 countries pitchedideas for positive change to our business. In
2020, we expanded this initiative across 30
countries, reaching 41 million students
around the globe. More than 8,000
registered for the competition. The local
winning teams competed in virtual global
finals to win a six-month paid global
internship in 2021.

The tobacco industry is undergoing a majortransformation, and we want to make people
aware of the new opportunities that our
Company offers. In recognition of our needfor a stronger employer brand, in 2018 ourinternational tobacco business redefined its
Talent Value Proposition. This is our promise
to create a working environment that
addresses four key talent needs: respect,
growth, drive, and confidence. In the same
year, we also launched a new HR campaign(‘Join The Idea’).
In 2019, we announced the opening of three
new Global Business Service centers, inWarsaw (Poland), St. Petersburg (Russia)
and Manila (Philippines). To let external
candidates know about this new career
opportunity and attract 1,600 bright new
talents, we launched a Talent Attraction
campaign in November 2019. The campaign
reached over three million professionals andcandidates visited our job postings morethan 300,000 times. As a result, we received
three to four times more applications thanduring the pre-campaign period.

Diversity and inclusion
For us, diversity means all the ways in whichcurrent and potential employees define
themselves, in terms of age, gender, selfidentification, sexual orientation, disability,
ethnicity, religion and nationality, as well as
by experience and expertise. Inclusion isabout treating all employees fairly andrespectfully and ensuring that everyone feels
like they are part of the same team.

Establishing a diverse and inclusive
workplace is a top priority for us because wewould like all of our employees to enjoy theirwork and to perform to the best of theirabilities. We believe this brings a rich mix ofviewpoints and perspectives, which caninspire new ideas, lead to solutions tocomplex issues, and drive our businessforward.

In some respects, we are already highly diverse. Our workforce includes over 100 nationalities inmore than 130 countries, and it is vital for us to create a workplace free from any discrimination,
where people can be themselves. However, in order to further strengthen our organization, we wish
to increase diversity and inclusion in other respects and within senior management across ourGroup.
We welcomed a new Vice President of Diversity and Inclusion in February 2019 in our international
tobacco business and established a practical and ambitious new strategy consisting of three pillars:
Gender Equality, New Ways of Working, and LGBT+ Inclusion. In 2020, we launched two additionalpillars: Wellbeing and MyGeneration.

Diversity, the state ofbeing different, isn’t thesame as inclusion. One isa description of what is,while the other describes
a style of interaction
essential to effective
teams and organizations.
Diversity and inclusion
have become absolutely
essential. They are notjust abstract notions forme. I want all of ouremployees to benefit

from this and to bethemselves all the time,
everywhere.

Christiane Bisanzio,
Vice President, Diversity andInclusion, JT International

Gender equality – women in leadership
We have been focusing on building a gender-balanced workforce and our Board members areheavily involved in working towards this ambition. To further empower women, we hold workshops
for top management and line managers, as well as training and seminars for female employees. Our
new Group-wide target, specifically representation of women in leadership, is to reach 25% by 2030.
We find it desirable that this should be more than 40% over time.

In our Japanese operations, we are taking many initiatives around gender, such as optimizing job
assignments throughout the company via regular consultations with various functions. We also

offer opportunities to take part in external training programs and discussions with senior
management in order to promote career advancement among female employees. In recognition of
our exceptional work in promoting women’s success in the workplace, in 2020 JT was named a‘Nadeshiko Brand’for the second consecutive year and third year overall.

In our international tobacco business, a Diversity and Inclusion Advisory Council at Board level
demonstrates senior management’s support for this inclusive and forward-looking approach. Seniorleadership have taken special training on identifying the obstacles preventing talented women fromadvancing their careers.
We have implemented a number of talent management and recruitment measures. These include
diverse and balanced interview panels, as well as a 50-50 equal slate of candidates within the final
round of our interview process. Additionally, all our job descriptions go through an AI algorithm thatflags gender-biased language, helping us to attract a broader range of candidates.
To foster the professional development of female employees, we launched a one-year sponsorshipprogram targeting female employees, supported by senior leadership. we also established a global
Employee Resource Group called “TogetHer”. This internal network is fully inclusive and open to all
JTI employees. TogetHER includes both men and women as active members. The network iscurrently focusing on men activating progress, the role of gender in consumer centricity andinnovation, as well as raising awareness and communication in the organization.
Following our Geneva headquarters’ recognition as an equal-salary employer by the EQUAL-SALARY
Foundation in 2018, which is valid for three years with annual progress checks, we are now aiming
to apply the same approach in other countries.

As a mother andgrandmother, with a son,daughter, grandson, andgranddaughter, I want
future generations togrow up in a world
where equal pay is areality. With every single
action taken bycompanies like JTI in
tackling the gender pay

gap, the whole equal pay
movement grows andgains more attention.

Véronique Goy Veenhuys,
Founder and CEO, EQUAL-SALARY
Foundation

LGBT+ Inclusion
Supporting our LGBT+ employees is vital for us to create a more equal JT Group, in which everyone
is empowered to be themselves and do their best.
We believe in workplace equity and giving everyone the same opportunities. All of our job vacancies
in our international tobacco business are now published on myGwork, a global networking hub for
LGBT+ professionals and graduates.
We created a global LGBT+ Employee Resource Group with a dedicated internal communication
platform (Workplace), to facilitate networking and interaction among like-minded people andenhance employees’ understanding of LGBT+.
We develop strategies, professional development opportunities and LGBT+ inclusive policies. This
helps us to create workplaces which are inclusive of all sexual orientations, gender identities, andgender expressions.
During PRIDE month in June 2020, we were not able to march together due to the effect of COVID19. Nonetheless, we engaged all our colleagues in a global virtual Pride in three time zones,
unleashing the power of inclusion from the warmth and safety of our homes.
In 2020, Geneva, the headquarters of our international business was one of the first companies in
French-speaking Switzerland to be awarded the SWISS LGBTi Label certification. Based on an

extensive audit, this certification recognizes the implementation of our LGBT+ Inclusion strategy.
We have made positive progress in our Japanese operations too, achieving the highest-ranking
Gold status in the PRIDE Index 2020

for the fifth consecutive year.

New Ways of Working (N-WOW)
Recognizing that different people have different working styles and needs, we promote a workplaceenvironment that allows all employees to fulfill their potential. N-WOW is a movement to boost
flexibility and employee retention. We do this largely by removing many of the barriers andmanagement styles of the past and bringing them in line with a modern, multigenerational
workforce.

Ensuring business continuity
People come first. The safety and wellbeing of our employees, contractors, their families, and thecommunities in which we operate are at the heart of every decision we make.
We have a long-standing corporate culture of encouraging flexible hours and remote working rightacross the Company. Fortunately, these practices enabled most of our office-based employees toseamlessly work from home soon after the COVID-19 outbreak began in January 2020.
In Japan, we introduced full-time flexible working and no-limit remote working in February 2020.
These new ways of working will continue beyond the end of the pandemic.
In our international tobacco business, our office-based employees in over 70 locations have beenworking from home.
Find out more about our response to COVID-19 in our FY2020 Integrated Report (P.10) andthe JT Group health and safety section.

Working parents
In 2020, we launched a new family leave policy for our international tobacco business, which cameinto effect in January 2021. The policy grants 20 weeks of paid family leave, regardless of gender,

sexual orientation, age, or location, when an employee becomes a parent via natural birth,surrogacy, or adoption. The policy goes above and beyond the standard national requirements inmore than 80% of the countries where JTI is present.
We also provide childcare facilities and financial support with childcare costs. In recognition of this,JT has been certified as a childcare-supporting company by the Japanese Ministry of Health, Labor,and Welfare.

A family-first approach

In some countries with an aging population,
we offer support for employees who care forolder people. For instance, in the U.K., weallow employees to take time off to lookafter senior family members. Equally, in ourJapanese operations, employees can takedays off when needed, and the Company
offers financial support for professional
nursing care.

Wellbeing and MyGeneration
In 2020, we added two new pillars to our Diversity and Inclusion strategy in our international
tobacco business: Wellbeing and MyGeneration.

Wellbeing
In light of COVID-19, wellbeing has become more important and relevant than ever before. Ensuringthat our employees are in the best physical and emotional health at this difficult time is paramount.
In 2020, we launched the Global Wellbeing program to support the physical, mental, emotional, andfinancial wellbeing of our people and the communities in which we operate. The program enables
our employees to ‘give back’ by taking part in physical and/or remote volunteering, bringing benefits
not only to local communities but also to their own wellbeing.

MyGeneration
We value the diverse perspectives that each generation brings to the workplace and our vision is tosupport age-diverse teams, creating optimum conditions for collaboration, knowledge exchange,
and mutual respect. The launch of the MyGeneration pillar leverages the strengths of eachgeneration and builds an inclusive culture. In 2020, two groups were created at the headquarters of
our international business in Geneva. Each group will work on cross-functional projects including
multi-generational focus groups and ‘Sales Experience’ sessions, as well as social events.
In 2020, with a heightened focus on Race and Ethnicity, we created a global employee working
group dedicated to equal opportunities and equity for all our employees.

Being a responsible employer

Engaging with employees
As a responsible employer, engaging employees is crucial, and we communicate with our staff
through multiple channels. Our aim is to foster a working environment that is free fromdiscrimination, and to maintain constructive relationships with unions.
To evaluate the effectiveness of our programs and the level of engagement of our employees, andto identify areas for improvement, we carry out an Employee Engagement Survey (EES) every three
years* across the Group.
Additional employee-related surveys are available, so that we can always be mindful of employees’
concerns and quickly implement relevant measures. For instance, each office in our international
tobacco business regularly conducts a survey called ‘PULSE’ to check their progress towards key
challenges identified via EES.
In 2019, our Japanese operations introduced a new scheme allowing departments to carry out
surveys at any time. A variety of options are available under the new scheme, including a threeminute survey for gathering rapid feedback, enabling departments to choose which option best
meets their needs.
In 2020, we invited the 11,582 employees in our Japanese tobacco business to take the EES. The
overall survey response rate was 92%. The survey includes a ‘Sustainable Engagement’ category,
which measures employees’ job satisfaction and long-term commitment to the business. The total
favorable score for this category was 80%, which is 7 points ahead of the average score forJapanese companies.
The input we receive from employees helps us to understand our strengths, the progress we have

made, and the areas where we need to keep improving. Importantly, our people also help us
understand what we need to do differently to maintain our reputation as a top employer.
*Before 2019, our Japanese operations used to conduct the survey every year.

Despite a challenging
year, JTI continued todemonstrate the powerof putting people first.
Successful policies
implemented over theyears meant that thecompany was able tocontinue fully engaging
and motivating
employees, showcasing
why they are sodeserving of theircertification. This wasdemonstrated by theircontinued presence in
top regional ratings, andtheir certification as a
Global Top Employer
since 2015. JTI has
shown it is committed tocontinuously improving
HR policies that affect its
45,000 employees
worldwide.

David Plink,
CEO, Top Employers Institute

Freedom of association and trade unions
The JT Group supports freedom of association and the right to collective bargaining, even incountries where these freedoms are not a legal prerequisite. This means we are committed to open
and constructive relations with trade unions and works councils. If one of our sites ever has tocease activities due to the operating environment it faces, we work closely with unions to ensure
affected employees are treated fairly and beyond the minimum legal requirements.
We have a long history of positive industrial relations. Across the JT Group, industrial relations are
based on individual countries' labor laws, and we aim for open and constructive relations with tradeunions and works councils. Dialogue with trade unions generally takes place within the jurisdictionof our local operations, and typical engagements cover aspects of company management, strategy,
and planning, as well as operational issues.
In line with the relevant European Directive, we also have a voluntary European Works Council
agreement in place. Our European Works Council operates as an employee information andconsultation body for transnational issues relating to our operations in Europe. The Council has
regular meetings each year and is made up of employee representatives and members ofmanagement.

Related links
Investing inpeopleHumanresources

JT Group healthand safety

Copyright© Japan Tobacco Inc. All rights reserved.

JT Group health and safety
Our employees have the right to beprotected from work-related injuries andillnesses, and it is our responsibility toprovide a safe working environment. Wealign our health and safety standards with
ISO 45001 (OHSAS 18001) and always meetor exceed legal requirements.
When our standards are stricter than local
laws, we require our local offices to comply
with our standards. The scope of ourstandards extends beyond our employees,
covering contractors as well as visitors toour operations.

Aspirational goal
We will be the employer of choice by investing in people.

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

ProgressHealth and safety performance in our tobacco business
Recordable injury rate* declined 58.9% from 0.72 in 2015 to 0.30 in 2020.

2015

2016

2017

2018

2019

2020

0.72

0.64

0.67

0.50

0.49

0.30

Recordable Injury Rate(per 200,000 working

Employees

hours)* Recordable injury rate = recordable injuries/200,000 hours worked. Some data from newly
acquired business has been excluded, as newly acquired business needs 18 months tointegrate the JT Group health and safety standards.

Read more about our latest progress on the JT Group's
tobacco business sustainability strategy.

Our health and safety performance as a Group

Recordable injury rate* declined 58.9% from 0.72 in 2015 to 0.30 in 2020.

2015

2016

1

2

Employees

Number of fatalities

2017 2018 2019 2020

0

1

1

3

2

0

0

0

0.39

0.38 0.24 0.24

0.20

0.16

0.30 0.23 0.15

0.07

0

0.08 0.02 0.01

0.37

74.4 76.9 79.5

70.0

%

%

%

%

1151

66

85

71

64

3.87

0.23 0.21 0.16

0.19

1Contractors

1

(only
JTI)

Lost-time injury rate

Employees

0.34(per 200,000 working
hours)

Supervised workers

Occupational illness
rate*1(per million working

Employees

0hours)

Other important KPIs

% of cigarette and tobacco-related
factories certified to78.9%

ISO 45001 (OHSAS 18001)*2

Number of vehicle accidents*3

112
2

77.8%

Vehicle accident frequency rate*3(excludes property damage, accidents per

4.84

million kilometers)

In 2019, we recalculated all of the historical data. Specifically, we removed some data fromnewly acquired business. This is because newly acquired business needs 18 months tointegrate the JT Group Health and Safety Standards.
We no longer report the number of lost-time incidents or the lost-time incident rate, as thisdata is now covered by the recordable injury rate and lost-time injury rate.
We regret that 3 employees died as a result of work accidents in 2020. We try to learn fromevery accident and remain committed to achieving zero fatalities.
*1 Data scope: 2015: only JT. 2016 and 2017: JT and Japanese domestic Group
companies. From 2018: the entire JT Group. 2020: the increase from 0.01 in 2019 to
0.37 in 2020 is due to COVID-19 work related cases. Read more about our data scopes
and external verification.
*2 Data scope: 2020 only JTI*3 The number of vehicle accidents and the vehicle accident frequency rate in 2015 and2016 include damage to property, because the data is not available in our international
tobacco business. The data in 2015 covers only our international tobacco business.
From 2016, it covers JT and JTI.
Read more the way we define, calculate, and consolidate data in the Basis of reporting.

Three pillars of safety
Our safety programs are based on threefundamental pillars:

1 Safe workplaces
2 Safety competence
3 A Group-wide culture where the safetyof our people always comes first

The level of risk varies from location to location, but the highest risks across the JT Group are
driving vehicles, riding motorcycles (driver safety), and working with machinery, as well as slips,
trips, and falls.
To mitigate these risks and prevent injuries, we conduct risk assessments throughout the wholesupply chain. This helps us to identify hazards, implement appropriate measures, and ensure that
our approach helps us to protect our employees. We also focus on raising awareness among
employees and thoroughly embedding our safety culture in our day-to-day work.
In 2019, we rolled out a new driver safety policy and implementation guidelines across ourinternational tobacco business. Focusing on driver behavior, the new guidelines require local offices
to conduct a risk assessment to identify high-risk drivers. They must also send periodic progress
reports and action plans. In 2020, we completed a Driver Safety Compliance Assessment. The
results showed that the average market now complies with 80% of our global guidelines.
Considering the growing number of female employees, the policy also includes maternity protection
for female drivers. Between 2019 and 2021, 30,000 employees will take a driver training course.

We had planned to launch a global tool in2020 to facilitate risk assessment at local
offices. This tool had been piloted in Egypt,where trying to reduce vehicle accidents ischallenging due to poor infrastructure andtraffic management, nationwide. Feedback
from local health and safety managers andemployees had been very positive. Despite
the onset of COVID-19 across the world, andbecause we believe that people come first,
we nevertheless managed to launch the newrisk assessment program in several
countries, including Egypt, Lebanon, Jordan,
Philippines, Indonesia, Nigeria, Turkey, andPoland, reaching more than 1,700 drivers.
In the sales division of our Japanese
operations, we have set ‘prevention ofvehicle accidents during sales activities’ asa priority issue within our 2020 Occupational
Health and Safety Plan.

Case study

Reducing incidents by 50% through our
motorcycle safety program
Driving is a critically important area of safety
for us, as it can lead to serious injuries andeven fatalities. Driving is most dangerous incountries where safety standards andawareness are lower, and ingrained driver
behavior is less risk-averse.
We have been addressing this issue since2016, when we launched a motorcycle risk
management program in countries where
employees drive motorcycles daily, such as
Zambia, Malawi, and Tanzania. We have since
updated the program and we are now
planning to implement it in our acquired
operations in countries such as Indonesia
and Ethiopia. In 2020, we launched aMotorcycle Rider Hazard Assessment and Elearning program in Bangladesh to protect
our employees.
The motorcycle program is designed to reduce risks by teaching the technique of ‘defensive driving’
to reduce accidents and focusing on the proper maintenance and inspection of vehicles. Itemphasizes the need to wear proper protective equipment, such as helmets, gloves, and highvisibility jackets.
Thanks to Train-the-Trainer sessions, we now have 130 specialized motorcycle instructors who canprovide training in their countries. The program has had a significant impact on safety performance.
In 2019, the number of motorcycle-related injuries in the countries where we implemented theprograms shrank by 50% compared to 2016 and 2017.
In 2020, we expanded and refined the program by developing and implementing a remote e-learning
Driver Safety Leadership Program in Zambia. The program is for employees of all levels, including
managers and supervisors, and specifically targets risks and behaviors within our Leaf Organizationin this country.

Ensuring the same standards around the world
As part of our drive to expand the business geographically, we have made acquisitions in newmarkets.
■

In 2017, we acquired an Indonesian tobacco company and assets of a tobacco company in thePhilippines, and we became the majority shareholder of The National Tobacco Enterprise(Ethiopia) Share Company.*1■

In 2018, we acquired additional tobacco companies in Russia and Bangladesh.

■

These acquisitions considerably increased the size of our workforce.*2

Most of these acquired businesses operate
in developing countries, with a raft ofsocietal and economical challenges. We
recognize this and feel responsible for
improving the working environment. We
therefore introduce our policies firmly and
immediately after each acquisition. We also
visit the sites and support local managers toensure that our policies are endorsed andembedded across the Group.
Particularly in these countries, health andsafety issues pose a serious risk to local
communities, our employees, contractors,
and our business continuity. For this reason,
we take a systematic and risk-based
approach to acquired businesses from theoutset.
The Health and Safety team at ourheadquarters conducts a risk assessment
for potential new countries to check whether
their standards meet ours. Following anacquisition, we support local offices to
identify key risks, develop and implement 18month action plans, and align policies with
our standards.
Following the implementation of our global
policy and standards in Ethiopia, employees
can work in a much safer workplace and wehave drastically reduced the number ofwork-related injuries at this location.
Previously, there had been incidents
involving moving equipment, falls, andvehicle accidents, among other safety risks.
Now employees are more safety-aware, andwe continue to make efforts to create aworkplace free from any safety issues.

*1 We became the majority shareholder of the Ethiopian company in December 2017.
*2 Please refer to our GRI Index for detailed information about our workforce composition.

Towards a better workplaceWe care deeply about employee well-being
because we want our employees to feel
comfortable and motivated every day. We
run a variety of well-being programs acrossthe Group, such as ergonomic assessments
and ensuring general occupational hygiene.
To design these programs, we gather wellbeing data from our local offices. In 2018,
we expanded our data scope by introducing
new rules requiring all local offices to reporttheir occupational health cases to ourheadquarters. This will allow us tounderstand our global risks and develop a
consistent approach to them, whilestrengthening our existing protection
measures.

Local managers are responsible for investigating reported issues and identifying the causes. If theissues are attributed to the work or workplace, we take appropriate measures immediately toprotect employees’ well-being and prevent recurrences.
We communicate the importance of health check-ups to our employees and put in place initiatives
to facilitate them. In Japan, through these check-ups, we identified several lifestyle-related risk
factors which can cause chronic conditions such as diabetes. We therefore launched a platform
where employees can view the results of their check-up and receive relevant well-being tips. This
will raise employee awareness of lifestyle-related risk factors, and ultimately reduce absenteeism
rates.
Another key focus area in our Japanese operations is employee mental health. As mental healthissues can be related to stress, we encourage employees to attend stress management sessions
and individual meetings with doctors. Following the onset of COVID-19, these meetings took place
via video call, and we also offered online exercise programs. Both measures were designed tosupport our employees’ optimum health.
In addition, we created video content and held sessions on sleeping well, as our annual medical
questionnaire showed that this was a key concern among employees.
These programs have had a positive impact on employee productivity and the absenteeism rate inJapan, which has recently been below 1%.

We are pleased to announce that JT was named as a “White 500” company for the fifth year runningin 2021. This award is presented by Japan’s Ministry of Economy, Trade, and Industry. It recognizes
large enterprises that are making outstanding progress towards better well-being among theiremployees.

Our response to COVID-19
People come first. The safety and well-being of our employees, contractors, their families, and thecommunities in which we operate are at the heart of every decision we make.
At the JT Group, we implemented a number of measures to reduce the impact of COVID-19. We
have taken a risk-based approach, identifying the highest risks to our Company and making it apriority to take relevant action.
We analyze the impact on business from various perspectives. Since the COVID-19 outbreak began
in January 2020, we recognized the virus as a threat to our employees and the business community.
Our corporate security and health and safety experts immediately started to create daily reports andrisk assessments related to the impact of the virus on employee travel, health and safety, andsupply chains. This gave management access to the latest information and speeded up decisionmaking.
We also provided best practices for business continuity during the pandemic. These included healthand safety guidelines for different environments, including offices, factories, and sales, in dozens ofcountries. We supported business units worldwide by procuring and shipping personal protective
equipment where needed.
In addition, we offered online health and safety training to more than 7,500 people. For health andsafety leaders, we provided extra training on specific risk assessment and control measures. This
training was also available to employees at a higher risk of exposure, including members of oursales force, our cleaning and hygiene staff, and security guards.
We have a long-standing corporate culture of encouraging flexible hours and remote working rightacross the Company. Fortunately, these practices enabled most of our office-based employees toseamlessly work from home soon after the COVID-19 outbreak began.
We also provided detailed travel security advice for employees when borders were rapidly closing,with severe and often unannounced restrictions on travelers.

We take a science-based
approach to identifying
the highest risks to ouremployees. Our COVID-19
policies and guidelines
are accessible to all
employees worldwide
through our health andsafety platform, ensuring
a constant flow of clear
and scientificallyaccurate information.
Using new online
technologies, we haveincreased collaboration
across risk functions tomake sure our people
have the information andtools they need to protect
themselves and their
loved ones.

Alicia Olo Martinez
Director, Global Health and Safety,
Corporate Sustainability, JT
International

2020 was certainly theyear of the unexpected.
The COVID-19 crisis andthe resulting economic
and social fallout were
unforeseeable. However,JT Group’s response to
the crisis has been
decisive. From fully
embracing a work-fromhome platform for office
employees to strict social
distancing and hygiene
measures in ourfactories, our leadership
recognized what many
did not – that we wereexperiencing a critical
moment with profoundand permanent changes
to the business
community. While 2021
will certainly remain
unpredictable, we willcontinue to provide ourleadership with timely
advice and risk
assessments to ensure
they have the latest
information to
successfully navigate
these uncertain times.

William L. Wallrapp
Director, Corporate Security,
Sustainability Management Division,
JT

Read more about the impact of COVID-19 in our FY2020 Integrated Report (P.10).

Case study

Japan steps up to eliminate global hunger
JT has been participating in the ‘Table for
Two’ program, which donates the equivalentof one meal to a developing country forevery meal purchased by employees at JT’s
cafeteria in Tokyo.
In light of COVID-19, working from homebecame the norm for employees in 2020,and use of the cafeteria decreased.
However, we found a new way to keep the
program running, while encouraging
employees to keep fit at the same time.
Throughout October, the Company donatedone meal for every 8,000 steps taken perperson per day. A total of 1,900 employees
stepped up to the challenge.
Find out more ourcommunity investment initiatives.

About our reporting
Our referenced guidelines(GRI), notes
on data (BoR), and scope of our data(*A-E).

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