Basis of Reporting
This page outlines the scope of reporting, and the way we define, calculate, and consolidate data,
notably for compliance, human resources, workplace health and safety, environment, andcommunity investment. We provide the information according to the following three categories:

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONSThe scope of the data (correct
for the business structure of
the JT Group as of December
31, 2021) and any exclusions*,
if applicable. We report data
for the entire JT Group,
We clarify the meaning we
attach to specific terms usedas part of our performancedata points.

including subsidiaries,

We provide information for thewherever possible.

calculations, formulas,consolidation method, and any*In the middle of 2015, the JT

assumptions or estimatesGroup withdrew from theused.

beverage business. As a result,
we excluded this businessfrom historic reported datafrom 2015, or stated otherwise
where that was not possible orappropriate.

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

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

An incident of discrimination is
described as an act of treating
an employee differently by
imposing unequal burdens or
denying benefits, rather thantreating each employee fairly,
based on individual merit.
Discrimination can also
include cases of harassment,

The number of grievances arewhich is defined as comments

The entire JT Group, including

counted based on exported

or actions that are unwelcome,subsidiaries*A.

data from our Reportingor should reasonably beknown to be unwelcome, tothe person toward whom they
are addressed, which has the
purpose or effect of violating
an individual’s dignity or
creating an intimidating,hostile, degrading, humiliating,or offensive environment.

Concerns Mechanism.

NUMBER OF REPORTED CASES OF GRIEVANCESABOUT HUMAN RIGHTS DEFINITIONSDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONSFor Japan Tobacco Inc. (JT)and Japanese domestic Group
companies, we include cases
related to harassment(Including sexual harassment
and bullying), and humanrelations. For Japan Tobacco

The number of reported cases
The entire JT Group including*Asubsidiaries .

International (JTI), we include

is counted based on exported
data from our Reporting
Concerns Mechanism.

cases related to child labor,harassment, discrimination,
physical threats and violence,and data privacy.

NUMBER OF REPORTED CASES OF FRAUD AND
MISUSE OF COMPANY ASSETSDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONSFor JT and Japanese domestic
Group companies, we include
cases related to inappropriate
use of company assets. For
JTI, we include cases relating
to fraud and theft of the JT
Group and third-party assets,
misuse of IT resources, andthe cases of intellectual
property infringements
recorded under the Reporting
Concerns Mechanism.

The number of reported cases
The entire JT Group including*Asubsidiaries .

is counted based on exported
data from our Reporting
Concerns Mechanism.

NUMBER OF REPORTED CASES OF GRIEVANCESABOUT IMPACTS ON SOCIETYDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

We have defined our main

The number of reported cases

areas of impacts on society as

The entire JT Group including

is counted based on exported

anti-bribery and corruption andsubsidiaries*A.

data from our Reporting

anti-competitive behavior.

Concerns Mechanism.

NUMBER OF REPORTED CASES OF GRIEVANCESABOUT LABOR PRACTICESDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONSFor JT and Japanese domestic
Group companies, we include
cases relating to improper
work instructions,management’s work attitude,
colleagues’ work attitude,
personnel assessment,

The number of grievances is

personnel transfers, overtime

counted based on exported

pay, retirement issues, labor
contracts, labor conditions,

The entire JT Group including

work environment, andsubsidiaries*A.

smoking environment. For JTI,
we include cases relating tobreach of HR policies andprocedures, conflict of interest,
retaliation, unlawful dismissal,
inappropriate behavior, nonrespect for employee safety,
and severe disrespectful
behavior.

data from our Reporting
Concerns Mechanism.
Excluded from the data for JTI
are HR cases that areclassified as confidential.

PERCENTAGE OF EMPLOYEES WHO RESPONDEDTO COMPLIANCE SURVEYDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

The data is calculated basedon an assumption that all
The percentage of employees

Our Japanese operations,employees with a valid

who responded to our annual

including subsidiaries ofcorporate email addresscompliance survey, conductedJapanese domestic

receive an invitation toonline, or by a paper

businesses*C, excluding Torii

complete the survey, and allquestionnaire.

Pharmaceutical.

employees who do not have an
email address receive a paperquestionnaire.

PERCENTAGE OF ELIGIBLE EMPLOYEES WHO
PARTICIPATED IN THE JT GROUP CODE OF
CONDUCT TRAININGDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

The training data is calculated
The number of employees who
underwent training, namely elearning regarding the JT
Group Code of Conduct.

Our Japanese operations,based on an assumption that

including subsidiaries ofall employees with a valid

Japanese domestic

corporate email address

businesses*C, excluding Torii

receive electronic

Pharmaceutical.

communications regarding the
JT Group Code of Conduct.

Human resources

WORKFORCE INFORMATIONGRI 102-8
Information on employees and other workers

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

The workforce consists ofpeople working for theCompany at the end of the

The entire JT Group includingyear as follows:

subsidiaries*A, excluding
entities where an SAP system
has not yet been introduced.
They are newly acquired■

Full-time employee: isdefined according tonational legislation andpractice regarding working
time (such as national
legislation that defines “fulltime” as a minimum of 9businesses and they accountfor around 30% of our total
workforce.
We provide the following datawith limited scope due to datacollection methodology:

months per year and aminimum of 30 hours perweek).
■

Part-time employee: is■

temporary part-timedefined as an employee

employees: solely JTI*E.

whose working hours per
week, month, or year, areless than ‘full-time’, asdefined above.
■

Supervised worker: isdefined as an individual
who performs regular work

The gender breakdown of■

The breakdown ofsupervised workers: ourJapanese operations,
including subsidiaries ofJapanese domestic
businesses*C.

on-site for, or on behalf of,
the organization.
■■

Permanent contract: isNo substantial portion of ourdefined as a contract for an

work is performed by workers

indeterminate period.

who are legally recognized as

Temporary contract: isdefined as a contract for alimited duration or
determinate period.

self-employed, or byindividuals other thanemployees or supervised
workers, including employees
and supervised workers ofcontractors.

The figures are calculated
based on exported data fromour HR systems.

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

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONSOur Japanese operations,
including subsidiaries ofJapanese domestic
businesses*C. A total of 23
An employee is covered by acollective bargaining
agreement if the employee
declares their intentions to bepart of a trade union and pays
periodical union dues.

Japanese domestic Group
companies have labor unions.
Those without a labor union

Data is calculated as of theare out of scope.

end of the year, using data
held in our HR systems.

Data from JTI is excluded,
because the law in some of
the countries where we
operate prohibits us frominvestigating whether an
employee is unionized.

MARKET PRESENCEGRI 202-1
Ratios of standard entry‐level wage by gender compared to local minimum
wage at significant locations of operation

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Significant locations for thisindicator are defined as JT's
Tokyo headquarters (HQ), JTI
Moscow, JTI UK and JTI Trier
factory in Germany. Our
Moscow office is theheadquarters of JTI Russia.
This market has the highest
number of employees in JTI,
which also has a significant
presence in the UK. The JTI
Trier factory is the biggest
manufacturing site in the JT
Group.
■

Standard entry-level wage is

JT Tokyo HQ: the basis forcalculation is hourly

defined as the theoreticalminimum wage andlowest wage in the location

monthly entry-level wage.

and is therefore equal to, or
lower than, the actual lowest

For JTI, the scope includes

wage paid in the entity.

permanent full-time and part-■

JTI Trier factory: the basis
for calculation is hourly

time employees, andminimum wage and hourly

Local minimum wage refers to

temporary full-timecompensation per hour or

employees. In JT, the scopeother unit of time forincludes only permanent full-

employment allowed undertime and part-time employees.

law.

Temporary full-timeminimum wage and yearly

employees are excluded.

entry-level wage.

entry-level wage.

■

calculation is yearly■■

JT Tokyo HQ: official
minimum wage of theTokyo metropolitan area.

■

JTI Trier factory: official
German minimum wage.

■

JTI Moscow: official
minimum wage of Moscow
City.

■

JTI UK: official U.K.
minimum wage.

JTI Moscow: the basis for

JTI UK: the basis forcalculation is hourly
minimum wage and yearly
entry level-wage.

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

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONSThe scope of this data isdetailed below, and excludes
employees in entities where an
SAP system has not yet been
introduced. These breakdowns
cover permanent full-time,
part-time employees, andtemporary full-time
employees. Employeestransferring from other JT
Group’s companies are

The turnover and new
employee numbers are based

excluded, and not classified as

on exported data from our HR

a new employee hire.

systems, at the end of theyear.

New employee hires aredefined as the number of new
employees joining the JT■

Number and rate of newGroup. Employee turnover is

employees by gender: thedefined as the number ofentire JT Group, including

employees who left the JT

subsidiaries*A.

■

number of turnover, divided
by the total number ofGroup for any reason,
voluntarily or not. Employee
age is classified in three

Turnover rate: the total

employees at the end of the■

Number and rate of newyear.

employees by age: ourgroups: under 30, between 30

tobacco business in Japanand 50, and above 50 years ofand pharmaceutical

total number of new

age.

business*D.

employee hires, divided by■

New employee hire rate: thethe total number of■

Number and rate of

employees at the end of theturnover by gender: theyear.

entire JT Group, including
subsidiaries*A.

■

Number and rate ofturnover by age: 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

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Significant locations for thisindicator include JT Tokyo HQ,
and JTI Geneva HQ.

The data scope is aligned withthe above definition.

Benefits for temporary parttime employees in Geneva
have been stated pro rata.

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

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

We disclose significant
operational changes that have

Notice periods are calculated

substantial consequences forand disclosed in two different

Minimum notice periods area large proportion ofways: the number of months

defined as those required, if

employees. The reported

between the announcement ofany, by law in the country

information corresponds tothe closure and the firstwhere the operational change

closures or withdrawal fromredundancies, and the number

occurs.

business publicly announcedof months between theduring 2021 or earlier, butannouncement of the closure

which had not been completed

and the closedown.

yet.

TRAINING AND EDUCATIONGRI 404-2
Programs for upgrading employee skills and transition assistanceprograms

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

We consider skills
management programs that

The examples of programs aretake account of employees’

We disclose global and local

disclosed in the public domain

needs and future careerdevelopment programs.

such as our Global website

opportunities, as well as

and Integrated Report.

requirements of the business.

GRI 404-3
Percentage of employees receiving regular performance and careerdevelopment reviews, by gender and by employee category

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Data is calculated as the total
number of employees who
The entire JT Group, including

received a performance andWe consider an employee tosubsidiaries*A, and it includes

career development review inbe receiving regularpermanent full-time and part-2021 divided by the total

performance and careertime employees, andnumber of employees at thedevelopment reviews if thetemporary full-time employees,

end of 2021, This excludes

employee has an opportunity

but excludes employees in

employees working in ourto have their development andentities where an SAP system

factories, where the reviews

business objectives, as well as

has not yet been introduced.

are carried out on paper andcompetences, evaluated by

However, the scope ofcannot be tracked by our HR

their superior at least once a

breakdown by positions is our

system. New hires joining inyear.

tobacco business in Japan,

Q4 2021 JTI is excluded frompharmaceutical and JTI*D.

the data, as they were noteligible for a 2021
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 groupmembership, and other indicators of diversity

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Employee age is classified in

The entire JT Group, including

The figures are calculated

three groups: under 30,

subsidiaries*A, excluding

based on exported data frombetween 30 and 50, and above

employees in entities where an

our HR systems.

50 years of age.

SAP system has not yet been
introduced. Akros Pharma Inc.

For JT and Japanese domestic

and Fuji Foods are included insubsidiaries, the following

the data by position anddefinitions are used forgender but excluded from theemployee categories:

data by age group. The dataconsists of permanent fulltime and part-time employees,
and temporary full-time
employees. We disclose only■

Executive Officers are

the gender and age

persons who are appointed

breakdowns.

by the Board of Directors,
are assigned certain
responsibilities, anddelegate relevant
authorities in accordancewith the rules defining theextent of responsibility andauthority.
■

Management is defined as
persons in positions ofsupervision or
management according tonational legislation andpractice, and excluding
Executive Officers.

■

Employees are persons
who are not inmanagement positions.

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

Employees that are
members of the Executive

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Committee are categorized
as Executive Officers.
■

The Vice President andDirector-level employees
are categorized as
Management.

■

Persons of Manager level
and Associate 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

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Significant locations for thisIn JT Tokyo HQ, the scope

The figures for JT Tokyo HQ,

indicator include JT Tokyo HQ,

includes permanent full-time

JTI Geneva HQ and JTI UK are

JTI Geneva HQ, and JTI UK.

and part-time employees, andcalculated based on ‘annual

temporary full-timebase salary.’

Unless specifically stated, theemployees. In JTI Geneva HQ

following definitions are used

and JTI UK, the scope includes

In JT Tokyo HQ, each of thefor employee categories forpermanent full-timecategories defined aboveJT:

employees, and excludes(Executive Officers,

those who are not paid in CHF,

Management, and Employees)

and members of the Executive

includes multiple grades. We

Committee. In JTI UK, Viceselect grades that include both■Presidents are excluded as no

female and male employees to

Executive Officers arefemale employee is at thiscalculate the ratio of annual

persons who are appointed

position.

base salary of women to men.

by the Board of Directors,

Then, those pay ratios areare assigned certain

consolidated into the above

responsibilities, andthree categories based on thedelegate relevant

weighted average ofauthorities in accordance

employees within each grade.

with the rules defining theextent of responsibility and

For JTI Geneva HQ and JTI UK,

authority.

we calculate the averageannual base salary by gender■

Management is defined asfor each employee category

persons in positions ofdefined above. This average issupervision orused to calculate the ratio ofmanagement according toannual base salary of women

national legislation andto men within each category.

practice, and excluding
Executive Officer.
■

Employees are persons
who are not inmanagement positions.

The following definitions areapplied for employee
categories for JTI:■

Vice President■

Director

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS■Manager■

Associate

PERCENTAGE OF MANAGEMENT POSITIONSHELD BY WOMEN AT THE END OF THE YEARDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

In our Japanese operations,
including subsidiaries of ourJapanese domestic
businesses, an employee is

Data is calculated as the total

categorized at a position of

number of women holding amanagement if the employee
is in a position of supervisionor management, according tonational legislation andpractice, but is not an
Executive Officer.
At JTI, an employee iscategorized at a position ofmanagement if the employee

The entire JT Group, including
subsidiaries*A, excluding
employees in entities where an
SAP system has not yet been
introduced. The data consistsof permanent full-time andpart-time employees, andtemporary full-time
employees.

management position at theend of the year, divided by the
total number of employees
who had a management
position at the end of the year.
In JT, the calculation excludes
employees who were inmanagement positions but
have been reassigned to preretirement positions, as theyis Director level or Viceare approaching thePresident level. However, themandatory retirement age.

ratio of JTI doesn’t include
Vice President, as our target
only includes directors.

PERCENTAGE OF MANAGEMENT POSITIONSHELD BY INTERNAL HIRESDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

In our Japanese operations,
including subsidiaries ofJapanese domestic
businesses, an employee iscategorized at a position ofmanagement if the employee
is in a position of supervisionor management, according tonational legislation andpractice, but is not an
Executive Officer.
At JTI, an employee iscategorized at a position ofmanagement if the employee
is Director level or Vice

The entire JT Group, including
subsidiaries*A, but it excludes

Data is calculated as the total

employees in entities where an

number of management

SAP system has not yet been

positions filled by internal

introduced. The data consists

hires at the end of the year,of permanent full-time anddivided by the total number ofpart-time employees, andmanagement positions filled at

temporary full-timethe end of year.

employees.

President level. We defineinternal hires as current
employees who would bereassigned to a new position
by promotion or internaltransfer.

TOTAL NUMBER OF TALENT PARTNERSHIPPROGRAM EXCHANGESDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Total number of our TalentPartnership Programexchanges is defined as thesum of employees who aretransferred as functional ordevelopment assignees fromJT to JTI, or vice versa, at theend of the year.

Data is calculated as the sum
Our tobacco business inJapan, pharmaceuticalbusiness and JTI*D.

of the number of functional
assignees and development
assignees seconded between
JT and JTI at the end of theyear.

Workplace health and safety

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

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD,
AND ASSUMPTIONSIn the JT Group, the words

We consider that a newly

In our Japanese operations,“work-related“ injuries or

acquired business needs 18

including subsidiaries of

illness and “workplace” injuries

months to become fully

Japanese domestic

or illnesses are used

integrated in the JT Group way

businesses, health and safety

interchangeably.

of working from a health anddata is reported tosafety perspective. This is theheadquarters by individual

The following cases aretime needed to implement allfunctions and the subsidiaries

considered to be work related.

our health and safety polices,on an annual basis, while

standards and practices andserious incidents are reported

attain a minimum safety

immediately. The number

culture level. In our report, wereported is based on the

include six full months of data

number of health and safety■

after the integration phase torelated events that wereAn employee or aensure consistency andsubmitted to, and aresupervised worker suffers

accuracy of data trends versus

recognized by, relevantfrom an injury or

the target.

Japanese authority as such.

occupation-related disease
as a result of carrying out

At JTI, health and safety data

their duties.

is collected globally andindividual sites and locations■■

A third-party contractor

Number of fatalities: thereport to the headquarters

suffers from an injury or

entire JT Group, including

through a system on an

occupation-related diseasesubsidiaries*A. It covers

ongoing basis.

as a result of carrying out

number of fatalities of

their duties. (including on-

employees (incl.

The data is calculated assite third-party operations).

supervised workers),

follows:■

contractors, and third

A person suffers an injury

parties resulting from anor develops an occupation-

incident involving an asset,

related disease associatedsuch as a facility, or awith the JT Group’s own

vehicle being driven for

operations and, or a JT

our defined scope.
■

Number of lost-time injury:
the entire JT Group,■

time injuries within our

covers employees (incl.
Below are our definitions ofsupervised workers), andrecordable injuries, lost-time

contractors.

defined scope.
■

injuries and occupational■

entire JT Group, including

aid is defined as recordable.

subsidiaries*A. It includes

divided by 200,000 hours
worked within our defined
scope.

employees (incl.
Recordable Injuries include:

supervised workers). Thisrate is not available forcontractors because theirLost-time injury rate*: thesum of all lost-time injuries

Lost time injury rate: theinjury requiring more than first

Number of lost-time
injuries: the sum of all lost-

including subsidiaries*A. It

diseases. Any work-related

Number of fatalities: thesum of all fatalities within

business purposes.

Group employee while he or
she is on duty.

■■

Absenteeism rate: total
actual days of absence
divided by theoretical■■

working hours are notworking days (regularFatalities

managed by the JT Group.

working days) within our

Lost time Injuries (LTI) of 1

Absenteeism rate: solely

defined scope.
■

our tobacco business in

day or more■

Restricted Work Cases■

Japan and pharmaceuticalrate*: the sum of all

business*B.

occupational diseases
divided by 200, 000 hours(RWC) preventing someone
from doing his/her regular

Occupational diseases■job (no length defined)

Occupational disease rate:

worked within our definedIn our Japanese operations,scope.

the scope was solely our■

Medical Treatment Cases

tobacco business in Japan(MTC) is an injury thatand pharmaceuticalinjuries: the sum of all

requires medication,businesses*B. From 2016,

recordable injuries withintreatment and medical care

this expanded to all of ournormally administered by aof our Japanese domestic

Lost-time injury is a workrelated injury that results in
an individual being unable
to work on a subsequentscheduled workday or shift.
It doesn’t include fatalities.

■

diagnoses.
■

experience stating that theillness is work related.

Number of recordable

proxy for 2015.

specific symptoms andappropriate training andmultiplied by regular working

we used the 2017 data as aand refer to conditions withprofessional withmanner: regular working days

subsidiaries*A.

is not available, therefore

often used interchangeably

from a licensed healthcare

Group, including

supervised workers in 2015

‘illness’, and ‘disorder’ aresupported by an opinion

calculated in the following

companies, the data of

The terms ‘disease’,

the worker and isoperations, therefore it isdata scope is the entire JT

Japanese domestic groupillnesses, and disorders.

been notified voluntarily bymeans that, from 2018, theare in scope. In ourand includes diseases,

to be work related if it hasavailable in our Japanese(incl. supervised workers)

indicates damage to healthmental illness is consideredworkers’ working hours is not

locations in 2018. Thisbusiness. Only employees‘Occupational diseases’

occupational diseases. A

started covering all theinternational tobacco

hazards at work.

Mental illness is included in* Data of actual supervised

injuries : Our Japanese andarising from exposure to■businesses*C. At JTI, wehours.

Occupational diseases arenegative impacts on healthour defined scope.

including the subsidiaries

is beyond first aid.

■

Number of recordable

Japanese operations,healthcare professional and■■Recordable injury rate: Our
Japanese and international
tobacco business. Only
employees (incl.
supervised workers) are in
the scope. In our Japanese
domestic groupcompanies, the data ofsupervised workers in 2015
is not available, therefore
we used the 2017 data as aproxy for 2015.

■

Fatality is a death resulting
from a work-related injury
or illness/occupational
disease.

■Absenteeism is, medical
leave, sick leave, andabsent from work without
notification for permanent
leave (excluding paid leave)
for full-time employees.
Part-time employees are
excluded as out of scope.

■

Employee: Individual who isin an employment
relationship with theorganization, according tonational law or its
application.

■

Supervised worker isdefined as an individual
who, though not an
employee, performs regular
work on-site for, or on
behalf of, the organization.

■

Contractor: Individual who
is not a JT Group employeethat provides services,
described in a contract, to
the JT Group, whose work
is not under the JT Group's
supervision. Those who
provide services
temporarily (E.G. gardener,
carpenter) are not definedas contractors. Supervised
workers are notcategorized as contractors
because their work ismonitored by the JT Group
employees. We report any
health and safety data ofsupervised workers under
employees.

■

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

VEHICLE ACCIDENTS AND VEHICLE ACCIDENTFREQUENCY RATEDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONSOur Japanese domestic
operations define a vehicle
accident as any incident that

Our tobacco business inJapan, pharmaceuticals
business and JTI*D.

results in the death or an injury
to an employee (incl.

■

accidents: sum of all

supervised workers), part-timeworkers and/or third party.

■

and motorcycles used bybusiness defines a vehicle

our employees (incl.

accident as any incident

supervised workers). In our

involving a fleet vehicle thatJapanese operations, part-

results in death or an injury totime employees are also inan employee (incl. supervised

the scope.

workers) and/or third party.

considered to be vehicle
accidents. In 2019, we started
excluding any cases where novehicle accidents within our

Number of vehicle

defined scope.

accidents: covers vehicles

Our international tobacco

If no injury occurs, they are not

Number of vehicle■

Vehicle accident frequency
rate: covers the number ofvehicle accidents per
million kilometers driven.

■

Vehicle accident frequency
rate: the number of vehicle
accidents divided by million
kilometers driven within our
defined scope. While JTI
uses actual data forkilometers driven, JT
calculates it based on thevolume of fuel used bytype.

injury occurs, from our vehicle
accidents.

PERCENTAGE OF CIGARETTE AND TOBACCORELATED FACTORIES CERTIFIED TO ISO 45001

(OHSAS 18001) SAFETY MANAGEMENTSTANDARDDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Certification information iscollected at individual

Cigarette and tobacco-related

factories. The percentage isfactories include all our leaf
processing, cigarettes, andtobacco productmanufacturing facilities.

JTI*E.

calculated as the number ofcertified factories andlocations, divided by the total
number of all factories within
scope.

Environment

OVERVIEWSCOPEWe use an operational control approach todetermine the scope and boundaries of ourenvironmental data reporting, which covers theentire JT Group including subsidiaries*A, as well
as some affiliates, and some contract
manufacturers that meet specific criteria. Thus,
coverage of environmental data is wider thanother*A level data shown in the other sections of
our reporting.
We restate our environmental data, in accordancewith our recalculation policy, to take account ofsignificant changes to our business, such as
acquisitions, divestments etc. We do this so as toallow a fair comparison of environmental
performance over time. We carried out such a
recalculation exercise in 2021, hence data foryears prior to 2021 have been restated.

ENERGYCDP submission can be found here: CDP Climate 2021

GRI 302-1
Energy consumption within the organization

GRI 305-1
Direct GHG emissions (Scope 1)

GRI 305-2
Energy indirect GHG emissions (Scope 2)

GRI 305-3
Other indirect GHG emissions (Scope 3)

GRI 305-5
Reduction of GHG emissions

DEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD, AND
ASSUMPTIONS

We measure energy consumption and GHG

We calculate energy consumption, and Scope 1

emissions using the World Resourcesand 2 GHG emissions, based on actual energy andInstitute/World Business Council for Sustainable

fuel consumption at our sites and locations from

Development Greenhouse Gas Protocol: A

invoices and meters. Where this information is not

Corporate Accounting and Reporting Standard

available, we use extrapolations based on actual(2004 revised edition) and Greenhouse Gas

data from a similar site or location to provide

Protocol: Corporate Value Chain (Scope 3)

estimated energy consumption, which is thenAccounting and Reporting Standard as guidance.

used to calculate associated GHG emissions.
Production, floor area, or full-time equivalent (FTE)

We report GHG emissions across three areas:

data are the main benchmarks used to calculate
intensity metrics that are used in the extrapolation
process. Refrigerant emissions are reported aspart of Scope 1 emissions by equating thenecessary refrigerant replenishment to what■

Scope 1: direct GHG emissions from corporate

would have been previously leaked into theactivities, such as burning of fossil fuels at

atmosphere. Liquid CO2 usage in production isfactories.

also captured. Emission factors are applied foreach refrigerant type and Liquid CO2 consumption■

Scope 2: indirect GHG emissions frommass.

consumption of purchased electricity, heat, or
steam.

For GHG reporting, we adopt a market-based
approach and in Japan we use GHG emission■

Scope 3: other indirect emissions, including

conversion factors for each electricity supplier,from the manufacture of products bought frompublished by the Japanese government for theother companies.

latest available year. In other countries, per the
GHG protocol market-based reporting guidance,
we first account for supplier-specific GHG
emission conversion factors, where electricity has

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

been contracted at specific emissions intensities.
If supplier-specific tariffs are not applicable, weapply residual grid-mix factors, such as thosepublished by ‘Green-e’ and the Association of
Issuing Bodies (AIB), where available. Finally, we
use GHG emission conversion factors provided by
the International Energy Agency (IEA) and the U.K.
Department for Environment, Food and Rural
Affairs as country grid averages to ensure allelectricity consumption is accounted for withinemissions totals.
To calculate Scope 3 GHG emissions, emissions
factors come from a variety of sources, including
emissions factors from third-party databases andour own life cycle assessments.
All emissions factors are reviewed and, where
relevant, restated annually to reflect the mostaccurate representation of emissions attributable
to the JT Group. Electricity factors are updated toDEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD, AND
ASSUMPTIONS
reflect actual grid performance for the relevantyear(s) as published by the IEA; ‘Green-e’, and the
Association of Issuing Bodies (AIB); or the mostrecent data if data for the current year is not yet
available.

WATER AND EFFLUENTS
CDP submission can be found here: CDP Water 2021

GRI 303-3
Water withdrawal

GRI 303-4
Water discharge

DEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD, AND
ASSUMPTIONS

Water withdrawal data and water discharge data
are collected at our sites and locations fromWe record and report water withdrawal and water

invoices and/or meters. If a site is unable todischarge at our sites and locations, and take into

report volume of water withdrawal, we use

consideration the framework on water reporting

extrapolations based on actual data from a similar

set out by CDP. We report total water withdrawalsite or location to provide estimated data.

and breakdown by source, and total water

Production, floor area, or FTE data are the maindischarge and breakdown by destination. The

benchmarks used to calculate intensity metrics

reporting unit for water withdrawal and waterthat are used in the extrapolation process. In the

discharge is thousands of cubic meters.

absence of water discharge data, it is assumed
that water discharge will be equivalent to water
withdrawal.

WASTE

GRI 306-2
Total weight of waste by type and disposal method

DEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD, AND
ASSUMPTIONS

Our sites manage their waste based on thefollowing waste management hierarchy: reduce,reuse, recycle, and recover. If these methods are
not feasible, a site will dispose of its waste(disposal being incineration without energy
recovery, or landfilling).
We report total waste generated and breakdownby handling method that includes both nonhazardous and hazardous waste. The reporting
unit for waste generation is thousands of metric

Waste data is collected at our sites and locations,and is reported by handling method, primarily
from invoices. If a site is unable to report volume
of waste generation, we use extrapolations basedon actual data from a similar site or location toprovide estimated data. Production, floor area, or
FTE data are the main benchmarks used to
calculate intensity metrics that are used in theextrapolation process.

tons.

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

Community investment

LOCAL COMMUNITIESGRI 413-1
Percentage of operations with implemented local community engagement,
impact assessments, and development programs

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Implemented local community
investment programs aredefined as investments inprojects that improve thequality of life of people where
we operate in an impactfulway.
All community investment
programs have a recorded

The figures are calculated

output defined following thebased on data from ourBusiness for Societal Impact

community investment(B4SI) criteria.
https://b4si.net/

The entire JT Group, including
subsidiaries*A.

In 2021, we assessed theimpact of our community
investment programs in 14
markets, and we arecontinuously improving our
impact assessment
methodology. An operation isdefined as a country in which
we have a business presence.
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

database, and data sourced
directly from markets, which iscross-referenced with ourfinance systems to confirm
that the program was
implemented.

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

The value of community
investment is the total sum of
inputs as defined by theBusiness for Societal Impact(B4SI) criteria.
https://b4si.net/
Investments include employee
time, cash, in kind, andmanagement cost
contributions for the programs
included in GRI 413-1 that areprovided to benefit acommunity, and JT
International S.A.’s annual

The figures are calculated

endowment to the JTI

based on data from ourFoundation.

community investment

The calculation of time andmanagement cost is based on
the B4SI

methodology.

Cost of time is based on anaverage hourly rate calculatedusing a weighted averagesalary (including bonuses)

database and market reports
The entire JT Group, including

and checked against financial

subsidiaries*A.

reports. All financial data isconverted from local currency
to Japanese yen, using
internally agreed exchange
rates.

across all work groups(excluding the Executive
Committee) based on data forthe year up to December 31,
2020.
Cash contributions arecalculated based on the grossmonetary value donated.
In-kind contributions arecalculated taking into accountdepreciation for the goods orservices provided.

TOBACCO BUSINESS SUSTAINABILITY TARGETS

REDUCED-RISK PRODUCTSDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Number of T-Vapor and EVapor products* introduced:

In the tobacco industry as a

To grow segment share forwhole over the mid-term, weheated tobacco sticks (HTS) in
key HTS markets to the midteens level by the end of 2027.
Number of countries where
our T-Vapor and/or E-Vapor
products are available:

ZERO INJURIES

estimate the HTS segment will
Japan, Russia, UK, Italy

represent 15-20% of total
revenues by the end of 2027
(On a basis of revenue,
excluding revenue in China)

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS■

Our tobacco business(incl. Japanese tobacco
business subsidiaries),
Only employees (incl.
supervised workers) are in
the scope.

■

In our Japanese domestic
Group companies, the data
regarding supervised

Injury rate

workers in 2015 is not

The sum of the number ofavailable, so we used thefatalities and lost time injuries

2017 data as a proxy forfor both JT and JTI, plus JTI's

2015.

(RTC +MTC) divided by (Actual
working hours of JT-JTI

We define "recordable injury
rate" as the percentage ofrecordable injuries per 200,000

JT Employees:

Employees + Actual working

Full-time, part-time,

hours of JTI supervised

supervised workers.

workers + Theoretical working

Excludes: commuting tohours of JT supervised

normal place of work.

workers (approx. 240 working

hours worked.

days × 8 hours (regular
JTI Employees:

working hours per day)) times

Permanent, temporary,(x) 200,000 working hours.

independent contractors towhom the organization is

Reduction rate

liable for the general safety

The difference of the base lineof the working environment(2015) injury rate and 2021

(direct supervision).

injury rate, divided by the 2021

Excludes:injury rate.

- Commuting to 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DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Total amount of investment

The entire JT Group, including

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

subsidiaries*A and the JTI(U.S. dollars): Included in total:

Foundation.

cash (including JTIFoundation), management
costs, time, in kind (JT target
amount: 250 million U.S.

■

We define "amount of

dollars, JTI target amount: 350

investment in U.S.

million U.S. dollars)

dollars/Yen" as the
combined value of cash

Volunteering:

contributions, time

Number of hours of active

contributions, in-kind

engagement in community

contribution of products,

activities during paid working

property or services andtime (JTI target: 200,000 hours

management costs/ JT target: 100,000 hours)(community investment
program staff salaries).
This definition is alignedwith the definition in the
B4SI framework.

Our community activities areclassified according to thecategories below:■

Charitable donation: ad hocor one-off contributions to
support others, e.g. postdisaster donations to acommunity in need.

■

Community investment:these initiatives addresssocial issues that we
identified as being relevant
to both our Company andour communities. This islinked to a strategy andoutcomes can bemeasured.

■Commercial initiatives in
the community: these

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

initiatives are businessrelated activities, usually
undertaken by departments
outside the community
function(e.g. marketing
R&D), to support thesuccess of the company
and promote its brand andother policies, that alsodeliver 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
our registered employees inboth markets and factories.

■

We define volunteering as
active engagement incommunity activities.

EMPLOYER OF CHOICEDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS■“Country” refers to a
country in which any JTI
legal entity was certified. It
can be a market office, afactory, or businesssupport center. If there areseveral certified JTI entities
located in the same
country, this does not
impact the target. We only
count each country once.

■

We define “a certified
Employer of Choice” as an
employer with a third-party
certification based on
external assessment, suchas Top Employer, Great
Place to Work, the Pride
Index, Investors in People,
local certifications such as
Bilan, etc.

■

All countries where we have abusiness presence. Top■

certified as ‘Top Employer’:

Employer is a global initiative

total number of countries

that is centrally coordinatedcertified as 'Top Employer'(identification of the countries

at JTI.

and governance) but locallyaddressed (audits are carriedout at a local level). Top
Employer contributes to 90%

Number of countries■

Number of countries
awarded with local
certifications: total numberof the target. Other local

of countries in our tobacco

certifications contribute tobusiness awarded with

10% of the target.

local certifications.

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

■

The
Top Employers Instituteis the global authority on
recognizing excellence inpeople practices.

AGRICULTURAL LABOR PRACTICES (ALP)DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONSAgricultural Labor Practices(ALP) is one of our key
programs under the umbrellaof Leaf Supply Chain Due
Diligence (SCDD). The SCDD isa five-step framework process
to Identify, Prioritize, Respond,
Measure, and Communicate(including formal reporting)and report on labor and humanrights in the leaf tobacco
supply chain.
ALP sets labor practiceguidelines with directly
contracted growers or withthird-party leaf suppliers. In JT,
we observe the growers
through site visits and/or
questionnaires. At JTI, we
observe growers through site
visits where we have directcontracts with growers, andour third party leaf suppliers
visit their contracted growers.
Observation data is collected
in individual markets (origins)
and reported internally. The
observations made against
labor practice guidelines areanalyzed and improvement
actions are defined, in line with
the SCDD process.
We have three KPI’s related to
ALP: % suppliers' entities
reporting to ALP, % volume
covered by ALP, and % growers
covered by ALP.
The reporting year does notalways match crop season.
Crop season vary according to
the location in which thetobacco is grown, usually (notalways) in Northern
Hemisphere crop season
matches calendar year, and inSouther Hemisphere usuallycrop season starts in Q3 of thecalendar year and ends in

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Q1/Q2 the following year. We
report the data/events relevant
for the calendar year to which
the report is concerned.

KPI 1: % supplier entities reporting to ALPDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONSAll leaf suppliers e.g. leaf
supplying entities (third-party
leaf suppliers and verticallyintegrated origins) who wepurchase from in a given crop
year and who report on ALP.
In the JT Group, we source leaf
from third-party leaf suppliersand directly contracted

The percentage of supplier

growers.

entities reporting on

Third-party leaf suppliers orAgricultural Labor Practices

leaf merchants are legal(ALP) is calculated as follows:

entities/companies, non-JT

the number of supplier entities

Group affiliates, from which JT
Group sources/purchases leaf

Our tobacco business.

globally.
‘Directly contracted growers’
are growers from which the JT
Group sources leaf and withwhom local affiliates (verticallyintegrated origins) of the JT
Group have a signed contract.
Vertically integrated origins
and third-party leaf suppliers
are referred to as leaf
suppliers.
Third-party leaf supplier data
are based on the scope ofplanned purchases for thatcrop year.

KPI 2: % volumes covered by ALP

reporting on ALP divided by
the total number of supplierentities that we purchase leaf
from (third-party and verticallyintegrated origins).
JT is treated as a leaf supplierentity in the calculation.

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Total volume of leaf coveredby ALP: includes third-party
and vertically integrated
origins.
Total leaf volume is defined asplanned leaf purchasing during
the crop year, sourced fromvertically integrated origins

Our tobacco business.

The percentage of volumes

and third-party leaf suppliers.

Excludes: any volume that iscovered by ALP is calculated

The volume planned but

currently planned but

as follows: total volume of leaf

unassigned to third-party leaf

unassigned to third-party

covered by ALP divided bysuppliers is also counted as

suppliers.

total leaf volume.

unassigned volume when we
calculate the progress against
the ALP target e.g. currently all
unassigned volumes aretreated as "not covered" as we
do not know from whom andwhere we will source.

KPI 3: % of growers covered by ALPDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

Our tobacco business.
Excludes: China and India (dueto lack of traceability); forthese countries we areworking with suppliers toestablish a tailor-madeapproach to SCDD/ALP.
We define the "total of numberof growers" as all growers

Introducing ALP in China andfrom which third-party leaf

India is challenging due to the

suppliers and verticallyway the market is structured in

integrated origins arethese countries. For instance,purchasing leaf from in a given

the third-party leaf merchants

crop year.

do not have direct contracts
with growers e.g. in India fluecured tobacco is sourced via
auction floors. We are working
with leaf merchants toestablish a tailor-madeapproach on how to run a leaf
supply chain due diligence.

SUPPLIER SCREENING% of key suppliers screened on ESG criteria

The percentage is calculated
as the number of growers
covered by ALP, divided by the
total number of growers.
JT is treated as a leaf supplierentity in the calculation.

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

The objective is to screen all

JT Group Tobacco Business

The percentage is calculated

key suppliers against

Until 2019, the percentage ofas the number of key suppliers

environmental, social, and

JTI was solely released. From

screened against ESG criteria,

governance criteria by 2023.

FY20, we disclose thedivided by total number of key

integrated percentage of our

suppliers. The numbers

tobacco business.

disclosed represent the

Key suppliers are defined as(a) suppliers with a planned orsnapshot of % of suppliers

actual annual spend of more

screened by the end of thethan 500,000 U.S. dollars

year, cumulative with previous(50,000,000 JPY) or

years.

equivalent, (b) companies
involved in our Know Your
Supplier (KYS) program, (c)third-party leaf merchants, (d)intermediaries and (e) contract
manufacturing and licensees.
We define ESG as
Environmental, Social andGovernance criteria as set
forth in our
JT Group Supplier Standards. JTI has specific suppliers'
selection criteria that areconsistent with those of the JT
Group.
Screening is defined as theassessment of potential andactual ESG risks in key
suppliers.
In our international tobacco
business, from 2017 to 2019,
the key suppliers werescreened using selfassessment questionnaires
implemented in
SLC/MySupplier tool. In 2020,
the key suppliers weremonitored by JTI, and we used
an independent third party,
PWC, to identify any ESG risks
from open sources. In 2021,
we have developed a new
supplier screening process
and kicked off a pilot to screenDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

all our key suppliers through aleading global risk analytics
company. In parallel we screen
our suppliers through PwC’s
Compliance Platform. With
this new approach, all our key
suppliers through a leading
global risk analytics company.
In parallel we screen our
suppliers through PwC’s
Compliance Platform. With
this new approach, all our key
suppliers are screened
automatically which increased
the coverage to 100%. In our
tobacco business in Japan, asimilar process is applied
increasing the coverage to100%.

ILLEGAL TRADEDATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD, AND
ASSUMPTIONS

All information (excl. data
related to counterfeit
awareness training) is sharedand feedback received isrecorded by the Anti-Illicit
Trade (AIT) team in iBase, a
Law enforcement agencies

database. Information related(LEA) are defined as state-

to counterfeit awarenessregistered entities providing

trainings is obtained fromlaw enforcement services.

weekly reports submitted by

We define "intelligence

the Anti-Illicit Trade teams, andreports" as reports that

this data is saved on a stand-provide intelligencealone spreadsheet. Note:

information on potential illicit

There may be a potential of

trade of counterfeit or
smuggled cigarettes. In some

JTI only.

reaching the same individuals
year on year but this is very

cases, the report can berare. On the rare occasion

shared/disseminated more

where additional awarenessthan once to multiple LEAs,

sessions are delivered to thoseand this is counted.

same individuals, this will

We define our "advisory

contribute to the continuous

capacity” as providing

professional development of

guidance that is in no way

those individuals, as elements

prescriptive.

of the awareness sessions willchange to reflect current /emerging threats etc.
For the BoR the cut-off date fordisseminations made to LEAs’
is 31 January.

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

Read moreRelated links
About ourreportingGlobal Reporting

Basis of

Initiative (GRI)
Index

Reporting

Copyright© Japan Tobacco Inc. All rights reserved.