Improving our social impact
For our Group to grow sustainably, it is vital for us to contribute to the sustainable development ofour society. Our community investment policy

determines a common goal across the JT Group:“To contribute to the development of inclusive and sustainable communities”. We believe thateveryone should have the opportunity to participate in society, and that inclusive societies are betterfor business. In line with our community investment policy, and as a responsible local community
member, we recognize the value of nature, society, and human diversity, and work with a wide rangeof stakeholders to resolve social issues.

Our focus areas
Through long-term partnerships with various stakeholders, we are currently implementing 512
community programs that contribute to the development of inclusive and sustainable societies
across 66 countries. Our offices around the world carry out programs aligned with our JT Group
community investment policy and the following United Nation’s Sustainable Development Goals(SDGs): Reduced Inequalities (goal 10), Sustainable Cities and Communities (goal 11), Life on Land
(goal 15), and Partnerships for the Goals (goal 17).
Through our programs, we are focusing on three specific issues:
1. Reducing inequalities, e.g., helping underprivileged people gain access to food and education.
2. Improving community resilience in disaster-prone areas, e.g., providing access to clean water.
3. Protecting the environment, e.g., replanting trees with the help of our employees.
We also offer volunteering opportunities, enabling employees to engage with our communities,
develop new skills, and gain a sense of pride and satisfaction.
Global community investment functions help to implement the programs and ensure that they
comply with our strategy and guidelines.

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

Target*Between 2015 and 2030 we will invest 600 million U.S. dollars to help make communities
inclusive and resilient, with our employees contributing 300,000 volunteering hours.
*

This is a Group-wide target.

Progress
Since 2015, we have invested 349 million U.S. dollars in our communities, and employees
have volunteered 137,882 hours on company time.

Value of JT Group investments in the community (U.S. dollars)2015 2016 2017 2018 2019 2020

Value of our investments in the community

74
M

2030
target68M 54M 53M 50M 50M

Accumulated value of investments in the74

142

197

250

300

349

600

community

MM

MM

MM

M

M = 1,000,000 U.S. dollars

Hours volunteered by JT Group employees
2015 2016 2017 2018 2019 2020

Number of hours volunteered by ouremployees

Accumulated number of hours volunteeredby our employees

2030
target13,9 24,2 21,9 25,4 33,05 19,19
97*

92

1128

5913,9 38,2 60,2 85,6 118,6 137,8 300,097

8900

2883

8200

*

Data only available for international tobacco business.

Measurement and evaluation
Our work in the community is highly rated by external agencies, including the Dow Jones
Sustainability Indices (DJSI), which recognize us as the industry leader in corporate citizenship andphilanthropy, with a perfect score of 100.
To measure the social impact of our efforts, we use the Business for Societal Impact (B4SI)*
Framework provided by Corporate Citizenship. In 2020, we invested 50 million U.S. dollars (17%charitable donations and 83% community investment) in corporate community investment incountries where we operate. We encourage more accurate reporting and measurement to ensure allof our programs deliver social impact according to our policy.
*

Global standard in measuring and managing a company’s social impact.

Contributing to our communities

Our initiatives

Reducing inequalities
Our mission is to support diversity in everything we do. We partner with organizations that drivesocial inclusion, and promote social welfare and access to arts and culture for all.

In 2020, we supported 290 programs related to reducing inequalities and 127 arts and culture
programs, covering 76% of the countries where we operate. 11 countries reported impact dataaccording to the Business for Societal Impact (B4SI)*'reducing inequalities'

Framework for programs related toCase study

OrchLab: making a difference by making music

Our UK team has joined forces with the world-renowned London Philharmonic Orchestra

tobring the joy of creating music to adults with disabilities. This unique project, called OrchLab, is
supported by pioneering assistive technology harnessed by Drake Music, experts in music,
technology, and disability.
OrchLab offers innovative digital instruments, bespoke workshops, training and events, andan interactive website

where participants can watch performances, enjoy musical activities,

and communicate with other members. The aim of the project is to enhance participants’ wellbeing
through music-making that is truly accessible to all.
The project began in 2016 and kept running throughout the COVID-19 pandemic. Workshops
continued via Zoom, helping participants, carers, and OrchLab Partner organizations to stayconnected during this challenging time. We look forward to expanding this important initiative in thefuture.

OrchLab Phase 1

Improving community resilience
Our Company has built expertise in disaster management over the years, due to the environmentallyvulnerable geolocation of Japan. In 2020, we supported 53 programs in total in 26 countries where
we have business presence, benefitting 153,613 people worldwide.
In Japan, we support charities that respond to disasters and help rebuild communities to be more
resilient in future. In 2020, the JT Group supported 17 programs. We have also disaster risk
resilience guidelines for our employees in place.

Case study

Winds of Change

Peace Winds Japan (PWJ) is a non-governmental organization dedicated to supporting people indistress and those threatened by conflict, poverty, or other turmoil. Although headquartered inJapan, PWJ operates around the world.
JT has partnered with PWJ since 2016 as part of our disaster management policy. In 2019, ourcollaboration was extended for three more years to foster the development of search and rescue
teams and to support PWJ’s response to disaster-stricken areas all around the world in the event ofa disaster.
Over the next three years we will help support the following initiatives:■

Training rescue dogs and rescue staff■

Building relations with overseas Search and Rescue (SAR) groups, conducting joint training withthese partners in readiness for future collaboration in the event of disaster■

Strengthening relationships with domestic stakeholders (local governments and hospitals) sothat PWJ can seamlessly collaborate them in the event of a disaster■

Improving search and rescue helicopter operation systems and maintaining equipment andmaterials necessary for SAR■

Emergency goods transportation and support to disaster-stricken areas

We hope that this initiative will help strengthen resilience-building all around the world. We willcontinue to work with a wide range of stakeholders to resolve issues in the disaster prevention
arena as a priority within our community investment pillar.

Protecting the environment
We try to reduce the environmental impact of our operations wherever we can, throughenvironmental programs that benefit both communities and our employees. In 2020, we supported
34 environmental programs in 22 countries where we have a business presence.
Measuring the impact of our actions is important for us to continuously improve our programs. In2020, one country reported impact data according to the Business for Societal Impact (B4SI)*
methodology for programs related to 'environmental protection'.
In Japan, we are actively supporting the sustainable maintenance of nine forests. Employees havethe opportunity to volunteer in the forests. Read more about our JT Forest program andvolunteering opportunities.

Other initiatives

The JTI global water, sanitation, and hygiene(WASH) initiative
TargetWe are investing up to 15 million U.S. dollars to enable adequate and affordable access tosafe and clean water and sanitation for one million people by 2025.

In a spirit of solidarity between mature andemerging markets, the top 10 markets in theJT Group set up a fund to help new anddeveloping markets make communities
more inclusive and resilient. Not only does
this create a better balance of community
investment presence across our Group, it
also gives a significant boost tocommunities in need of help.
The JTI Global WASH initiative focuses on
improving access to safe water andsanitation in communities that struggle withthis issue. In 2019, we launched threeprojects under this initiative: one in Mexicoand two in Bangladesh. We are now working
with international charities specializing in
improving access to safe water andsanitation in these countries, and welaunched a new program in Ethiopia in early
2020.

The SDGs contribution projectAs part of our ambition to build more sustainable and inclusive societies, JT launched a new
initiative in Japan in January 2020: the SDGs Contribution Project.
To enhance our engagement with Japanese communities, the project supports organizations
working on three specific issues: reducing inequalities, improving community resilience in disasterprone areas, and protecting the environment.
The SDGs Contribution Project replaces our JT NPO support program, which contributed a total of
1.5 billion Yen to 1,202 nonprofit organizations (NPOs) over two decades. The new project targets
an even broader range of organizations including local municipalities, offers increased funding, andaccepts applications two times a year, once in June and once in December.
In 2020, we donated over 44 million yen to 26 organizations including the Fukushima Central
Television Co., Ltd. and the Sapporo Rainbow Pride.

Volunteering opportunities

Volunteering brings mutual benefits for employees, our business, and the community. It alsoenables our teams to make a positive impact in the communities where they live and work by
sharing their skills and knowledge.
We actively encourage our employees to take part in volunteering activities. We do this byorganizing programs and events, or by providing the necessary resources (funds through corporate
matching, employee time, in kind, or employee donations).
In spite of Coronavirus restrictions, our volunteering activities continued throughout 2020, with
11,477 employees worldwide spending 24,088 hours of their time supporting community programs.
Where necessary, we adapted our approach to keep employees and local communities safe.
Our many volunteering opportunities also support our HR initiative to build employees’ engagement
and skills. In 2020, we conducted surveys for employees who participated in Company volunteering
activities related to “reducing inequalities” (one of the three focus areas of our community
investment program). A total of 473 employees reported that these activities had helped them togain skills that were useful in their day jobs, as well as increased job satisfaction and a stronger
interest in volunteering.

Volunteering to protect the environment
In Japan, we also offer volunteering opportunities related to protecting the environment. We areactively supporting the sustainable maintenance of nine forests in Japan. By offering JT employees
volunteering opportunities in the forests, we are helping to preserve this precious natural habitatand spread awareness about conservation at the same time. In 2020, 201* employees volunteered
their time. Many of these employees reported that volunteering had a significant impact on their
behavior towards the environment and their job satisfaction.
*

Due to COVID-19 we reduced the capacity of our events to one fifth compared to previous years.

Feedback from employees:■

100% reported an increase in job
satisfaction through volunteering■

96% would like to change their
behavior and move towards a moresustainable use of natural resources■

90% reported that volunteering helped
them to gain skills that are useful intheir daily work

Case study

Protecting nature in Yunomae’s forests
How do you help rebuild a town during apandemic? This was the challenge facing
our team in Japan, following record rainfall
and a devastating landslide in the city of
Yunomae in Kumamoto prefecture in July
2020.
Yunomae is one of the focus areas of our JT
Forest replantation program, and we havebeen maintaining and conserving its forests
since 2009. Our work helps to preserve thisimportant natural habitat and protect thelocal forestry industry.
When disaster strikes, we usually provide
both physical assistance and financial
support – but volunteering was not possible
in 2020 due to COVID-19 restrictions.
Instead, we set up an employee matchfunding program to support the local
community in a safe way. Every time anemployee made a donation, JT donated thesame amount.
We raised a total of 2,040,000 Yen (including
employee donations and matching
donations from the Company), which will go
towards reconstructing the roads in andaround Yunomae’s precious forests.

Our response to COVID-19
The Coronavirus pandemic has required a new approach to community investment. Ourcommunities needed specific support, so we had to think beyond our set practices and find newways to respond to their needs. The JT Group is working to prevent the spread of infections acrossJapan and other countries where we operate and is providing daily supplies and financial support inresponse to requests from endangered local communities.
In addition to these "emergency support" activities, we are also working on solving problems causedby the prolonged impact of the spread of the new coronavirus infection and supporting activities for"Build Back Better” from COVID-19.
In our international tobacco business, we focused on providing financial assistance to Coronavirusrelated initiatives in a number of countries. We have been involved in a wide range of projects, suchas increasing COVID-19 testing capacity, delivering food and drinking water to vulnerable people,and providing assistance to the elderly and people with disabilities. We will continue to offer
support for as long as necessary.
In our Japanese operations, we worked on emergency support such as prevention of infection
spread, support for daily necessities and financial support in response to requests from local
communities. We are also engaged in support activities for vulnerable people, essential workers,
local industries, and cultural and artistic activities toward "Build Back Better”. As part of these
efforts, we have been providing financial support to an emergency relief initiative to protect frontline
healthcare workers. Organized by our partner ARROWS, the initiative is known as ‘Infection
prevention measures for the future.
Throughout 2020, ARROWS distributed masks to medical institutions that were lacking medical
supplies and provided support for hospitals where clusters occurred. In future, ARROWS willcontinue to focus on infection prevention measures for medical institutions, shelters, and rescue
workers, as well as infectious disease control training.

Case study

Counting steps and donating meals during thepandemic
JT has been participating in the ‘Table for Two’ program, which donates the equivalent of one meal
to a developing country for every meal purchased by employees at JT’s cafeteria in Tokyo.
In light of COVID-19, working from home became the norm for employees in 2020, and use of thecafeteria 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 donated one meal forevery 8,000 steps taken per person per day. A total of 1,995 employees stepped up to the challenge.
Between them, these employees reached the 8000-step target more than 25,580 times in October.
Thanks to this great achievement, we were able to donate 511,600 Yen to TFT.

Feedback from employees on the ‘Table for Two program’:■

44% reported that volunteering improved their job-related competencies such ascommunications, teamwork or leadership skills.

■

41% reported that volunteering changed their personal impact such as self-confidence, job
satisfaction and pride in the company.

■51% reported that volunteering changed in their behavior such as increased volunteering or
being more vocal advocate of the company.

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