Environment
Environmental issues are of increasingsocietal concern and have brought many
challenges to our society. Today we arefacing the consequences of climate changesuch as melting ice caps, rising sea levels,and changing weather patterns. We all needto address these issues and, as a globalorganization, we recognize that we have a
key role to play in reducing ourenvironmental impact.
As with most industries, the environment
has a direct impact on our business. We also
know that our operations impact theenvironment, through resource usage,
emissions, and waste generation, but westrive to minimize this impact.
By implementing sustainable businesspractices, we are able to conserve resources,
protect biodiversity, reduce waste, manage
costs, and meet the growing consumer
demand for more sustainable products –bringing benefits to both the environmentand our business.
This approach is explained in the JT Group
Environment Policy.

Environmental

Environment and ourEnvironment and ourEnvironmental data /management

operations

products

External verification

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Our JT Group Environment Plan 2030 sets objectives and targets to address our key environmental
risks and opportunities across three focus areas: Energy and Emissions, Natural Resources, andWaste.
It considers not only our operations, but also our value chain. The plan contains longer-term
objectives for energy and emissions, along with quantified targets to achieve by 2030.
We have recently strengthened our targets for “Energy and Emissions” and aim to be Carbon Neutral
for own operations by 2030. Moreover, we commit to accelerate our efforts to reduce GHG
emissions across our entire value chain and achieve Net-Zero GHG emissions by 2050.
We will track performance and progress towards our objectives and targets, and we will revisit theplan periodically to ensure that it remains relevant to our business and stakeholders.

Energy and emissions

Energy

Emissions

JT Group will reduce its emissions andObjective

JT Group will transition all of its energy
use to zero carbon energy by 2050.

commits to be Carbon Neutral for its own
operations by 2030 and achieve Net-Zero
Greenhouse Gas emissions across its
entire value chain by 2050.

We commit to reduce absolute Scope 1 &2 GHG emissions by 47% in line with a 1.5
degree reduction pathway by 2030 from a
We will increase the proportion of
Targets

2019 base year.

renewable electricity that we use to 50%
by 2030 and 100% by 2050.

We commit to reduce absolute Scope 3
GHG emissions associated withpurchased goods and services by 28% by2030 from a 2019 base year.

Natural resources
Water

Objective

Forestry

Support global water stewardship by

Ensure a sustainable wood supply for our

reducing our water withdrawal and by

product supply chains and further

encouraging water risk management incontribute to forest conservation andour supply chain.

rehabilitation.

To further focus our efforts on sustainable
forest management, we have assessed
We will reduce water withdrawal

the drivers for deforestation and forest

associated with our tobacco business bydegradation in communities where we

15%.

source tobacco and are implementing theresulting action plans in relation to

Targets

To better understand water risk and use inimproved wood resource use, forest

our supply chain, by 2022, we willconservation, and forest rehabilitation.

implement a water risk management
process in our manufacturing supply

We will replace all wood from natural

chain.

forests used in the tobacco curing
process of our directly contracted growers
with renewable fuel sources.

WasteWaste

Objective

Further reduce the environmental impacts of waste associated with our processes andproducts.

We will reduce the environmental impact of our products and packaging through:Targets■

Design solutions■

Facilitating responsible collection and disposal■

Consumer awareness and education

More specifically, we will reduce our packaging (including plastic) and ensure that theremaining is 88% reusable or recyclable by 2025, rising to 100% by 2030. In total, recycledcontent will account for 20% of our tobacco business packaging by 2025.
We will reduce waste associated with our tobacco business by 20%.

Baseline year for targets is 2015 and target year is 2030 unless stated otherwise. The overall plan is
to be reviewed every five years.
Read more about our progress toward targets here.

Environmental management
In our more complex operations, we align our approach to environmental management with theinternationally recognized standards ISO 14001 and ISO 50001.* In our smaller and less complex
operations in Japan, we have implemented our own ‘JT Green System’, which promotes a simple
and consistent approach.
ISO 14001 encourages businesses to think more broadly about environmental issues – not only
those associated with their direct operations, but throughout their entire value chains. ISO 50001
provides a framework for our energy management system and helps us to continually improve ourenergy performance.
We are also working to streamline and better integrate our environmental and energy managementsystems with other business considerations, such as quality, occupational health and safety, andbusiness continuity.
To objectively review our approach to environmental management and our overall performance, we
use external disclosures and ratings agencies, such as CDP and the Dow Jones Sustainability
Indices (DJSI).

ISO 14001 certification
We use ISO 14001 as the framework for our environmental management systems to manage
significant environmental aspects, mitigate risks, and optimize opportunities. We track the
proportion of our cigarette and tobacco-related factories that are certified to ISO 14001. Data for thecurrent and past certification of our factories can be found here.
*ISO 14001 and ISO 50001 are the internationally recognized standards for environmental
management systems and energy management systems, respectively. These standards do notprescribe absolute performance requirements. Rather, they provide us with a framework to help
build effective management systems that deliver continual improvement in environmental andenergy performance.

CDP A List and Supplier Engagement Leader
In 2021, we achieved a place on CDP's prestigious ‘A List’ for tackling climate change as well as
acting to safeguarding water security for the third consecutive year. In addition, CDP recognized us
as a global leader in engaging our supply chain in addressing climate change. This marks our third
recognition for CDP Supplier Engagement Leader.

We are delighted to be
included in the CDP’s'Climate A List' and'Water A List' for thethird consecutive year.
This clearly reflects ourcontinued efforts to
reduce ourenvironmental footprintand expand ourtransparency indisclosing information.

Kazuhito Yamashita
Member of the board,
Chief Sustainability Officer,
Compliance and General Affairs(As of 31 December, 2021)

You can find submissions here: CDP Climate 2022

, CDP Water 2022.

A greener approach to procurement
Green procurement is critical to improving environmental performance. We have established a
Sustainable Procurement Department. The purpose of this department is to lead sustainability
related initiatives, mainly for packaging and other relevant categories, support sustainability
activities to achieve the JT Group Sustainability targets, and engage with suppliers on sustainability

topics through close collaboration.
In our Japanese operations, we have green procurement guidelines to ensure that the products andservices we purchase cause minimal environmental impact. These guidelines include lists of green
products and services, such as stationery, computers, and transportation services. We review andupdate the guidelines periodically, based on the availability of new products and services, andmonitor how many of the listed products and services we purchase.
Our green procurement approach is not only about purchasing goods and services. We also
encourage and work with our suppliers to improve their overall environmental management andperformance. Energy efficiency is one of the key criteria for the purchase of goods and services in
our Global Supply Chain division. In 2021, we launched the Green Mobility Program in our Tobacco
Business. The purpose of the program is to help decarbonize our fleet and reduce emissions
associated with work-related and private travel. The program is supported by our Green Mobility
Handbook and communications campaigns across the business.

Building environmental awareness and expertise
Across the Company, we strongly believe in the importance of raising awareness of environmental
issues among all employees. To do this, we run training and awareness campaigns every year, andwe regularly publish articles and updates on our Company intranet.
To improve the environmental performance of our operations, we have appointed personnel
responsible for environmental management at each of our business sites. These employees aretrained in environmental management systems and the relevant regulatory requirements. We alsooffer a more advanced course for staff who are responsible for internal auditing and reporting
environmental data.
In addition, our internal auditors go through a certification process to ensure that we apply aconsistent approach across the JT Group.
As a further step to raise awareness of environmental issues and our sustainability initiatives, wehold regular ‘Sustainability Days’. One of the focus areas is the environment: there are always many
activities and events at a global and local level, including information sessions on emissions,
resources, and waste.

Related links
Environment

Environmental

Environment andEnvironment andEnvironmental

management

our operations

our products

data / Externalverification

Environment and our operations
Energy,emissions, andclimate change

Naturalresources

Waste

Case studies

We strive to further reduce theenvironmental impact of our operations,focusing on the most significant
environmental risks and opportunities forour business and stakeholders. These
currently include climate change, thesustainable use of resources, andresponsible waste management.

Energy, emissions, and climate change
Climate change is the biggest environmental challenge facing society and our business. The effects
of climate change, such as global warming and changing weather patterns, could have serious
implications for our supply chain given our products are mainly agriculture-based and also for ourown operations.
We are committed to tackling this issue and we are reducing our greenhouse gas (GHG) emissions
to support global action on global climate change, with the longer-term aim of achieving net zerocarbon emissions from our operations.

Net-Zero Commitment
We committed to be Carbon Neutral for own operations by 2030, with the aim to achieve Net-Zero
Greenhouse Gas emissions for our entire value chain, no later than 2050. In support of this, we haveset more ambitious 2030 science-based reduction targets, for which we will seek SBTi validation.
We also aim to obtain validation for our longer-term Net-Zero target.
We will meet our social responsibility to help create a decarbonized society, through tangible andconcrete reduction measures, building on infrastructure and technological advancements globally.

Task Force on Climate-related Financial
Disclosures (TCFD)
The potential for financial impact associated with climate change is now well known, and concern is
growing about its mid to long-term impact on business operations and financial market stability. We
officially endorsed the recommendations of The Task Force on Climate-related Financial Disclosures(TCFD) in December 2020.
A key aspect of the TCFD recommendations relates to the identification, assessment andmanagement of climate-related risks and their integration into overall risk management. With this inmind, in 2019, we began conducting climate scenario analysis. Our first round of analysis was basedon two scenarios: a global temperature increase of two and four degrees Celsius. The two-scenario
approach is in-line with the expectations of the TCFD. However, as modelling of risks from a 1.5
degree Celsius scenario becomes more established, we will review potential climate-related risks toour business to consider this scenario also.

Governance
Climate-related issues are of strategic importance to our business. Through our business-wide
Enterprise Risk Management process, we have identified climate-related risk as one of ourEnterprise Level Risks for our Tobacco Business, which also needs to be considered in local risk
inventories and assessment processes. Board oversight is critical and climate-related issues andpotential impacts on business strategy are discussed in quarterly Board-level meetings.
Read more on Corporate governance.

StrategyThrough climate scenario analysis performed in 2019, we identified two main risks: ‘potential cost
increases due to governments raising carbon taxes to further reduce GHG emissions’ and ‘theimpact on leaf tobacco growing due to changes in environmental conditions’. Our plan is to mitigate
these risks by continuing to implement climate-related initiatives across our value chain andaddress areas for improvement.

Risk Management
We consider climate-related risks and identify risk mitigation and management approaches throughour Enterprise Risk Management (ERM) process. We also include these risks in local risk inventories,
assessment processes, and action plans, which are partly based on our ongoing country-levelclimate scenario analysis. We will compare business-wide risks from local assessments and identify
the most critical ones.

Metrics and Targets
Our Group Environment Plan 2030 includes a commitment to reduce GHG emissions from our own
operations by 47% (2030 versus 2019). We have also set a longer-term GHG emission reduction
target, as well as targets for renewable electricity, backed by our Group-wide climate scenario
analysis.
Read more on Environmental data / External verification.

Details of Climate Scenario Analysis
We reviewed various risk factors with the potential to have a substantive financial or strategic
impact on our business. This process identified two main risks:
1 Potential cost increases due to the raising of carbon taxes by governments to further reduce
GHG emissions
2 The impact on leaf tobacco growing due to changes in environmental conditions
Our conclusion was that we could mitigate both risks by continuing to implement climate-related
initiatives and programs across our value chain. This would mean that our business operations
would not be materially disrupted by financial impacts.

Transitional Risks

Category

PolicyRisk nameEmerging regulation
Carbon pricing

Parameter

Time horizon

Magnitude of impact

Carbon tax

Long-term

Medium-low

Explanation of impact / Impact (100 million yen) /Description of responses
Explanation of impact
Increased carbon tax may increase the procurement cost of tobacco leaf and other materials andservices. It may also lead to additional company expenditure due to tax increase for the Group’s
direct operations. If a carbon tax is imposed on raw or secondary materials, or services used in eachphase of the agricultural value chain (e.g. agricultural chemicals, agricultural machineries,
processing machineries, storage and distribution), then the JT Group will bear the additional cost
and/or transfer this to the raw material price.
Impact (100 million yen)
7~75
Description of responses■

Reducing our energy consumption through capital investment■

Energy saving and renewable energy programs■

Introducing green vehicles and engaging with suppliers to understand their climaterelated risks.

Physical Risks

CategorTime

Magnitude ofhorizonimpactRisk nameParameter

ChroniChange in growing environment of

Change in yield of tobacco leaves by

Long-

c

tobacco leaf

climate change

term

y

MediumExplanation of impact / Impact (100 million yen) /Description of responses
Explanation of impact
Changes in environmental conditions for leaf growing, including CO2 levels in the atmosphere, shifts
in the prevalence and presence of tobacco crop pests and diseases related to climate change,
generally higher than average temperatures and precipitation patterns, together with water scarcity
could impact the availability and quality of key natural resources for JT Group, including tobacco
leaf. This could occur in one or more of our tobacco sourcing countries. As a result, the cost ofsourcing tobacco leaf could increase.
Impact (100 million yen)323~367
Description of responses■

Shifting leaf growing regions based on identified climate-related impacts■

Implementing climate change adaptation measures■

Smart agriculture and breeding■

Improving yield in growing regions

Country-Based Climate Scenario Analysis
To further understand climate-related issues and potential risks at a more granular level, we have aprogram of country-level climate scenario analysis in our tobacco business.
In this initial phase, we have completed climate scenario analyses for eight countries. We haveprioritized countries where we have a combination of leaf sourcing, manufacturing and markets.
We assess potential exposure and vulnerability to climate-related issues. We assess potential
exposure using climate modelling based on scientific research and literature, and assessvulnerability through interviews with local functions.
The outputs from country-level scenario analysis help inform local risk inventories andassessments, as part of our Enterprise Risk Management process.
Climate change has been identified as an Enterprise Level Risk (ELR) for the tobacco business. Each
ELR has an owner at ExCom level, who has oversight and overall responsibility for assessment andmanagement of the risk. Ultimate accountability for the ELRs rests with the CEO.

Greenhouse gas emissions from our own
operations

In our Group Environment Plan 2030, we have committed to reduce greenhouse gas (GHG)
emissions. Recently we have strengthened our target to reduce emissions from our own operations
by 47% (2030 versus 2019) and achieve Net-Zero GHG emissions across our entire value chain by
2050. We expand sustainability ambition across entire value chain and accelerate its efforts to
reduce GHG emissions. To date, this is through a combination of energy and emissions reduction
initiatives, increasing the proportion of the energy we use that comes from renewable sources andproduction impacts. Going forward, the main programs to achieve the target relate to further
improvements in energy efficiency, renewable energy, and vehicle fuel type and efficiency.
As part of our efforts to meet our energy and emissions target, we will increase the proportion ofrenewable electricity that we use to 50% by 2030, in support of our goal of reaching 100% by 2050.
In our direct operations, the renewable electricity target will be achieved through on-site generationand the sourcing of third-party renewable energy.
We are continuously working to identify renewable energy opportunities. Where possible, and where
it makes business sense, we have invested in renewable energy generation opportunities and willcontinue to invest in opportunities that increase our use of renewable resources. Renewable energy
opportunities are included in our business planning and in our feasibility study for achieving Carbon
Neutral in own operations by 2030 and Net-Zero GHG emissions across entire value chain by 2050.
We also identify and apply the options to purchase zero or low-carbon energy tariffs, green energy
certificates and conclude a Power Purchase Agreement for renewable energy.

Progress toward quantitative target
By the end of 2021, 30% of electricity used in our tobacco business came from renewable sources(either purchased or generated on-site), and 23% of the electricity we used in JT group in 2021 camefrom renewable sources. Moving forward, we have plans in place which will further increase theproportion of renewable electricity we use.

Through our Environment Opportunities Scheme, our factories have identified over 250 no- or lowinvestment projects between 2015 and 2021. These avoid almost 8,000 tons of GHG emissions andrepresent a cost saving of over 1.8 million U.S. dollars, with an average payback of three months.
Vehicle emissions are another important consideration for us, and we encourage all of our locations
to select alternative, more environmentally friendly fleet vehicles and change the way how the travels
are planned, improve style of employees’ driving and commuting etc. Within our tobacco business,
we have launched our Green Mobility Program, designed to reduce emissions associated with our
fleet.

Greenhouse gas emissions in our supply chain
As part of the JT Group Environment Plan 2030, we are committed to reduce GHG emissions
associated with our supply chain. We recently updated our absolute Scope 3 GHG emissions target:
to reduce our GHG emissions associated with purchased goods and services by 28% between 2019and 2030 and to achieve Net-Zero for our entire value chain by 2050.
We continue focusing our efforts on improving curing efficiency, through barn furnace upgrades andnew heat exchange designs. These not only optimize tobacco leaf quality, but also reduce wood fuelconsumption. In addition, we are addressing the production of wood resources required for tobacco
curing through dedicated agroforestry programs and tree-growing initiatives in Tanzania andZambia, for instance.
In Japan, we have a long-standing relationship with tobacco growers, which brings benefits to our
suppliers, our business and our planet. By working closely with leaf growers and a machinery
supplier, we developed an innovative new drying machine to improve fuel efficiency in the tobacco
curing process. This has had a positive effect on our environmental impact, as it helps to reducegreenhouse gas emissions and non-renewable energy use. It also helps growers to save costs andimprove quality, directly impacting our business and improving the environmental impact associatedwith our tobacco value chain. By the end of 2021, our leaf growers were using a total of 825 drying
machines across Japan. In future, we will expand the program by implementing a new curing system
to make the process even more sustainable.
Another initiative to reduce leaf-related emissions is further optimizing the use and management of
resources in crop production and improving yield. This includes a set of best agronomic practices
which are tailored to produce a customized crop while optimizing the use of crop inputs such as
fertilizers. We will also be working with suppliers to reduce the amount of packaging associatedwith our non-tobacco materials.

Progress toward quantitative target
In 2021 GHG emissions related to Purchase Goods and Services decreased by 25%. This is mainly
driven by lower emissions associated with purchased indirect leaf as well as emissions associatedwith Non-Tobacco Materials. Although the business is making good progress against its 2030
targets, we anticipate that the reduction achieved may lessen in FY2022 due to volume and sourcing
drivers.

Science Based Targets (SBT)The 2030 GHG emissions reduction targets
that we set in 2019 were validated by the
Science Based Targets initiative (SBTi). We
will also be seeking validation of our new,strengthened science-based reduction
targets announced in 2022.
Read the press release(February 2019)

Natural resources

Water
Societal demand for water is increasing globally and water-related issues such as availability,
quality, flooding, drought, or regulatory changes can have a major impact on society and ourbusiness.
Our tobacco and food manufacturing activities all use water. However, for our main operation, thetobacco business, the water that is required for tobacco crops comes predominantly from rainfall,
while tobacco processing and manufacturing are not water-intensive.
As part of our approach to good water stewardship, we committed to carry out water risk
assessments at 100% of our factories. In 2020, we completed the first risk assessments at all of ourfactories and we are now working on our program of re-assessments. Our water risk assessments
consider water availability and quality, changing legislation, natural disasters such as flood anddrought, and future water stress. From the assessments, we develop action plans to reduce risk andimprove overall water management and security.
In the JT Group Environment Plan 2030, we commit to supporting global water stewardship byreducing our water use and encouraging water risk management in our supply chain. We have set atarget to reduce our tobacco business-associated water withdrawal by 15% by 2030 vs 2015.
We plan to achieve the target by using less freshwater for factory site irrigation, reducing water use
in our processes, improving leak control, using more recycled water, and improving cleaning
practices.

Progress toward quantitative target
Based on 2021 results, we successfully achieved our water withdrawal target ahead of our schedule.
Since 2015, we have reduced water withdrawal associated with our tobacco business by 16%. We
achieved this by implementing water efficiency improvement programs and changing production
volumes.

Water risk in our supply chain
Many of our raw materials require water in their production, and water is an important resource formany of our suppliers. To better understand water usage and water-related risk in our supply chain
across the Group, we plan to implement a water risk management process by 2022.
We are developing comprehensive approach to assess and manage ESG risks in our supply chain
including water related issues.

ForestryEnsuring a sustainable wood supply andcontributing to conserving and rehabilitating
forests are key objectives set out in the JT
Group Environment Plan 2030. Our focus is
to establish and monitor woodlots withhigher productivity and usability, securing asufficient, renewable supply of wood for
tobacco production while also reducing
wood consumption through improved curing
efficiency.
Our Agroforestry Programs address
sustainable forestry, wood use, andmanagement. In Malawi and Zambia, thelocal teams encourage growers to build ‘live
barns’ by planting trees that will form themain structure of a Burley curing barn withinfour years. This contributes to conserve vitalwood resources and reduces grower barn
maintenance effort and costs.
In Brazil, Tanzania, and Zambia, where thelocal market teams contract growers that
require wood as a fuel source for curing, theteams promote best forestry practices,
validated through dedicated forestry
Research and Development, striving toachieve 100% renewable wood supply by2030.
In these countries, we estimate the wood
production requirements at small-scale farmlevel and verify the progress of our forestry
targets in terms of renewable wood
production. This is done through a remotesensing, high-resolution satellite imagery
monitoring platform. Data is captured at fieldlevel by our Agronomy Technicians via the
AgroMobility mobile application and thenuploaded to the monitoring platform.
To further understand and quantify therelevance of wood resources for a moresustainable tobacco production, our teams
have assessed the drivers of deforestationand forest degradation in communities
where the local business sources andproduces tobacco in Tanzania and Zambia.
Quantitative and qualitative results fromthese surveys confirmed that our efforts toaddress the drivers of deforestation andforest degradation in our direct leaf supply
chain are in the right direction. We focus ourefforts on high-impact measures alignedwith our tobacco business sustainability
strategy such as improving tobacco
production, improving curing efficiency andproducing renewable wood resources.
In 2021, across Tanzania and Zambia, it was
the first time that all woodlots established ina crop year were captured by Agronomy
Technicians using the Agroforestry
Functionality (mobile application) in
AgroMobility (AGRM). Forestry data such astree species, transplanting date, number oftrees planted and woodlot boundaries
coordinates using GPS offers greatertransparency and reliability of forestry data
and better tracking of woodlot growth over
the years.
Also, in 2021, the team in Zambia
successfully implemented the firstcommercial woodlots in Zambia, withapproximately 160 hectares of woodlots
established.

Our approach
Live Barns
Our Agroforestry Programs address sustainable forestry, wood use, and management. In Malawi
and Zambia, the local teams encourage growers to build ‘live barns’ by planting trees that form themain structure of a Burley curing barn within four years. This contributes to conserve vital wood
resources and reduces grower barn maintenance effort and costs. In Malawi, there are 1,965 fully
operational live barns and well on track to reach 100% operational live barns by 2024.
Renewable wood resources as fuel for curing
In Brazil, Tanzania, and Zambia, JTI contract growers that require wood as a fuel source for curing.
Our target is to achieve 100% renewable wood supply by 2030. In Brazil, this target has already beenachieved as there is a consistent supply of renewable wood resources for tobacco production. In
Tanzania and in Zambia, there is positive progress to achieving our target by 2030, ensuring any
potential pitfalls are addressed in renewable wood production requirements through theestablishment of dedicated JTI sponsored woodlots or commercial woodlots. Also, our best forestry
practices are validated through dedicated forestry R&D. These are then incorporated into Minimum
Forestry Standards (MFS) for both wood production and for live barn establishment.

Progress toward quantitative target
Improvements in tree planting and wood production■

In Brazil, a 100% sustainable renewable wood supply (either growers’ own tree planting orpurchased from commercial woodlots) has been achieved.

■

Tanzania and Zambia, 72% and 68% of our tree planting targets to meet wood requirements forcuring by 2028 have been achieved.

■

We focused on improving tree seedling production and woodlot establishment by growers(increased survival rates and +kg/m3 wood).

■

In Zambia, commercial Eucalyptus woodlots were established to secure a supply of renewable
wood for curing by 2028.

Improvements in tree seedling production
An improved adoption of our Minimum Forestry Standards (MFS) has already shown results inenhanced tree seedling quality and uniformity. Quality tree seedlings are the basis for a successful
woodlot establishment and optimized tree growth potential.
Commercial woodlots in Zambia
In Zambia, commercial woodlots were successfully established with survival rates of over 90%. Thisis part of JTI’s effort to secure a renewable wood supply by 2030, and address any potential

shortcomings due to new contracted growers or varying tobacco volumes (wood production isplanned according to forecast tobacco volumes to be cured).

A new approach to forestry data capture
In Tanzania and Zambia, 2021 was the first time that Agronomy Technicians captured all woodlots
established during the crop year, using the Agroforestry Functionality (mobile app) in AgroMobility(AGRM). Forestry data such as tree species, transplanting date, number of trees planted andwoodlot boundaries coordinates with GPS enable us to increase transparency and the reliability offorestry data, and to track and monitor woodlot growth over the years. Data captured with themobile application is uploaded to a high-resolution satellite imagery monitoring platform.

Assessment of deforestation and degradation risks
To identify and quantify tobacco-related drivers of deforestation and forest degradation, the local
teams carried out a one-time baseline study in communities where our local operations source
tobacco in Tanzania and Zambia. Quantitative and qualitative results from these surveys confirmedthat the right drivers in our direct leaf supply chain are being addressed. Our efforts are focused onhigh-impact measures aligned with our tobacco business sustainability strategy, such as:■

Improving tobacco production (which significantly lowers the risk of land clearance for
agriculture)■

Improving curing efficiency (which reduces in order to reduce wood consumption)■

Producing renewable wood resources.

All of these actions assist to prevent or reduce the risk of deforestation, while contributing to better
management of natural resources and environmental protection.

Biodiversity
For JTG, responsible management of biodiversity is important. Our focus is on conservation of
biodiversity during tobacco growing, where our biggest impact is. One of the JT Group Principles inLeaf Tobacco Production is to reduce environmental impact and ensure efficient use of natural
resources while striving to conserve biodiversity. Biodiversity is also included as a focus area in theLeaf Sustainability Framework.
Read more on Supply Chain.
We deploy appropriate responses, such as good agricultural practices, initiatives on soil
management, sustainable wood and water conservation, and natural forest restoration.
In Brazil we implemented a project that promotes environmental conservation and biodiversity
production at small-scale farm level. It involves both agronomy technicians and farmers. With
technical support from the NGO SPVS (Society for Wildlife Research and Environmental Education),
JTI Bio has developed a dedicated biodiversity inventory and monitoring protocol that helps farmers
put nature first whilst observing sustainable practices.
The Araucaria Connection Project aims at the ecological restoration of 335 hectares in the state of
Paraná.
Restoration work started in 2018 in Floresta Nacional de Piraí do Sul with 35 hectares and in thefollowing year another area was included totalizing 47 restored hectares in this Conservation Unit.
In 2020, a partnership was signed with the municipality of Rio Azul (PR) for the restoration of 10
hectares in the Salto da Pedreira Environmental Park. Right now the seedlings that were planted inthis area are being monitored by SPVS (Wildlife Research and Environmental Education Society) andto ensure the success of the restoration.
At the moment, more them 190 ha of ecological restoration have been implanted in Permanent
Preservation Areas (APP) in 164 small farms, by using 91,100 seedlings of native species andinstalling 20,160 meters of fences to protect the seedlings settings on the properties. Only 6 haremain to complete the restoration goal on rural properties.
Also in 2022, ecological restoration is planned to happen on 75 ha in Meia Lua Natural Reserve, inthe city of Ponta Grossa (PR).
The Project is scheduled to be completed/finished by May 2023, but it is expected that by the end of2022 all fieldwork will be complete.
The Shishamba Forest Livelihoods Project in Zambia is an initiative for the sustainable managementof Miombo woodland. It includes, amongst other things, the promotion of woodland conservation
practices such as fire management and assisted natural regeneration. Also, empowerment of local
communities to use and manage resources from Shishamba Forest responsibly and sustainably.
JTG participates in the Keidanren Biodiversity Initiative, a compilation of ambitious action policies
for and specific activities on biodiversity taken by member companies and organizations.
We are currently reviewing our company approach to biodiversity.

Waste
From a societal and stakeholder perspective, waste, and particularly plastic waste, is of increasing
concern. From a business perspective, all waste has a direct cost (handling and disposal) and anindirect cost (e.g. resource and processing costs).
We consider waste impacts on each stage of our operations from receiving materials and services
to post-consumer waste of our product and packaging. That’s why waste management is a key
component of our Environment Plan 2030. Across the JT Group we apply a ‘Reduce, Reuse, Recycle’approach. We have also set targets for waste reduction as reducing waste helps to conserve
resources, which in turn helps to minimize our environmental impact and cut business costs.
By 2030, we will reduce waste associated with our tobacco business by 20% vs 2015. We will do thisby improving resource efficiency and rolling out innovative solutions across different sites.

Progress toward quantitative target
Based on the 2021 results, we are on track to achieve our waste reduction target, thanks to waste
improvement initiatives in manufacturing sites as well as materials reuse program. Since 2015, wehave reduced waste associated with our tobacco business by 15%. Going forward, we are working
on further reducing secondary packaging and tobacco waste, along with other waste-reduction
initiatives such as reusing materials (e.g. tobacco packaging) and yield improvements.

Product and packaging waste

One of our objectives in the JT Group Environment Plan 2030 is to reduce the environmental
impacts of waste associated with our operations, products and services. Waste associated with ouroperations is described above. Waste associated with our products and services includes
packaging. To improve the environmental credentials of our products and packaging, we follow a‘3R’ approach (reduce, reuse, recycle). We also have dedicated teams across the business working
on packaging and product-related initiatives.
Read more on Environment and our products.

Case studies
Sustainability is deeply embedded within our operations. We work hard to minimize ourenvironmental impact by focusing on energy efficiency, GHG emission reduction, water efficiency,
and waste reduction. Many programs and initiatives are already in place, both globally and locally.
These include everything from the way we source raw materials to the way we ship finishedproducts. Read more about our local and global activities:
In our Japanese business operations (Japanese website)
In our international tobacco businessCase study

Recognition for our greenhouse gas emissions
reduction
Our efforts to address climate change are recognized externally. In 2021 we were included in the ‘A
List’ by CDP Climate Change, in recognition of our leading position in managing climate related risks
and opportunities.
The JT Kansai factory (tobacco manufacturing) received two awards from Kyoto City and the Kyoto
prefecture government for its emission reduction initiatives. The factory is proactively tackling the
reduction of greenhouse gas (GHG) emissions by implementing projects such as high-efficiency
freezer installation and eco-friendly compressor use.
In December 2019, Nihon Syokuzai Kakou, a subsidiary of our processed food business, wasselected as a leading company and awarded by the government of Miyazaki prefecture for its effort
to reduce GHG emissions. The Japanese working philosophy known as Kaizen, which involves all
employees, is based on an ethos of continual improvement, and which we believe helps us toachieve strong ongoing results.
Our factory in Jordan was awarded the ‘Environmental Stewardship Award’ by the World Bank, as thefirst tobacco factory in the world to use direct solar steam generation. A rooftop-mounted collector,
steam storage, and a steam-driven absorption chiller provide the site with energy and building
heating and cooling. The system covers 20% of the plant’s annual steam consumption and helps
reduce its CO2 emissions by over 100 tons a year, the equivalent of over 100 round-trip flights from
Paris to New York. The factory’s ultimate ambition is to be 100% carbon neutral.
We continuously strive to further reduce our environmental impact by combining technology-driven
innovation with the Japanese philosophy of Kaizen, meaning ‘continuous improvement’.

Case study

Studying best practice wood production at ADETBRAZILIn Southern Brazil, Eucalyptus wood is the main energy source for curing tobacco. Sufficient data isavailable on woodlots established at a commercial scale. However, there is a significant lack of
research and information on Eucalyptus productivity in small-scale farms, where woodlots are
established in marginal areas usually unsuitable for agriculture. Our Eucalyptus woodlots in Brazil
ADET (Agronomy Development and Extension Training Center) are designed to produce a renewablesupply of wood fuel for curing tobacco trials, as well as to test and validate best forestry practices.
Since 2012, several new studies have been developed at ADET by planting Eucalyptus woodlots,
some in partnership with the Federal University of Santa Maria (UFSM) and University of Santa Cruzdo Sul (Unisc). We highlight experiments with different Eucalyptus species (including clones andhybrids), different plant spacing, soil preparation, and management of weeds and forestry pests.
Other studies relate to the usability of wood fuel and energy efficiency for tobacco curing.
The local team continues to establish woodlots in ADET to this day, in a continuous process offorestry R&D and, for older woodlots where trees have already been harvested, our focus is on postharvest and regrowth management.

Case study

Monitoring woodlots at small-scale tobacco
farms
In Brazil, it is usual practice to use Eucalyptus wood fuel for tobacco curing. However, there are few
long-term initiatives and research to quantify and qualify Eucalyptus productivity at the small-scale
farm level. In 2012, in partnership with the Federal University of Santa Maria, a program to monitor
the inventory Eucalyptus woodlots was established on tobacco farms of integrated contracted
growers.
The initiative involved a series of objectives, from monitoring woodlots annually to observing
forestry techniques, identifying gaps and opportunities in technical assistance, and taking an
inventory of pre-defined permanent plots within woodlots. The woodlots inventory allows for theestimation of wood production, and an understanding of which practices have an impact on woodlot
productivity ,and thus on the availability of wood fuel for tobacco curing. For this, permanent plots,with dimensions of 30x20m, were established and inventoried annually, until the cutting cycle
finished. This enabled the local team to monitor the entire productive period of the woodlot.
Throughout the monitoring process, the team on the ground sought to uniformly distribute thepermanent plots across the company's operating regions considering the geographic distribution of
the farmers.
The information obtained continues to be analyzed and serves as basis for developing strategies
and research that allow woodlot productivity at small-scale farms to be increased. It also enables
for the training of farmers regarding Minimum Forestry Standards and more effective technicalassistance.

Related links
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Environment and our products
We are constantly searching for ways to further reduce environmental impacts along our value chain(upstream and downstream). We do this through improved product design and development,
responsible procurement, efficient delivery of our products and services, and by adopting innovativetechnologies and ways of working.
We will reduce the environmental impact of our products and packaging through:■

Design solutions■

Facilitating responsible collection and disposal■

Consumer awareness and education

More specifically, we will reduce our packaging (including plastic) and ensure that the remaining is
88% reusable or recyclable by 2025, rising to 100% by 2030. In total, recycled content will accountfor 20% of our tobacco business packaging by 2025.
While reducing the environmental footprint of our products including downstream waste impacts is
the goal set forth in the JT Group Environment Plan 2030 and a necessity, it also helps us to meet
consumer expectations and ensure the long-term sustainability of our business.
For the goals set forth in the Tobacco Business Sustainability Strategy, Read about
Products and services (Environment).

Progress to dateAcross the Group, we have been focusing on embedding sustainability in product development for
many years. To strengthen our commitment, in 2020 we created a Sustainability Program Team(SPT) in our international tobacco business.
Within this team we have colleagues from innovation, sustainability, supply chain and marketing,
who are dedicated to revisiting the way we approach the development and marketing of our
products & services with the aim of minimizing their environmental impact.
There are various factors that the team is looking into, to ensure that sustainability is built into ourconsumers (The word, consumers, used in the context of the tobacco business means adultconsumers. Minimum legal age for smoking varies in accordance with the legislation in eachcountry.) offerings. These include product and packaging materials revision and standardization,aligning with existing waste management infrastructures, assessing partnerships with current andnew suppliers to drive materials innovations, assessing environmental regulation and certifications,and focusing on consumer insights to ensure that developed solutions and tools are consumer
relevant.
Over the course of 2021, the SPT created a sustainable proposition development framework and an
initiatives roadmap, to help fulfill identified targets across our whole portfolio. Focus has been given
to the roll out of four global initiatives across our product and packaging portfolio. The SPT has also
developed a consumer-facing strategy, so that sustainability is reflected into our brands’ positioning
and initiatives, to help educate consumers and further raise their awareness.

Case study

U.K. Enviromentum Project: “Doing loads morewith tonnes less”
In 2020, our U.K. team launched a project called UK Enviromentum 2030. The aim: to reach specifictargets relating to emissions, energy, waste, water and engagement by the end of the decade.
To support the plan, the team has put together a U.K. Task Force, who have already helped to makesome positive changes. Environmental, Social and Governance (ESG) criteria is now included as
standard within the tender process, and environmental benefits schemes are now part of ourbenefits package for U.K. employees. We have also started the roll-out of hybrid company cars, andwe source our electricity supply through renewable energy sources. We have switched to paperlessinvoicing for U.K. independent trade customers.
Looking ahead, our U.K. team is planning further initiatives to:■

Go zero landfill for on-site waste disposal and with UK suppliers■

Improve the sustainability and recyclability of online sales packaging■

Improve the recycled content and recyclability of point of sale materials■

Introduce company car driver training to reduce fuel use and emissions■

Roll-out paperless invoicing across all trade customers■

Develop Scope 3 emissions reduction program for UK-related impacts

Responsible recycling and disposal schemes for
Reduced-Risk Products
As alternatives to traditional combustible products, e-cigarettes (E-Vapor) and tobacco vapor
products (T-Vapor) are gaining popularity with consumers around the world. Although our industry ischanging, our commitment to consumer choice remains.
That’s why we offer Reduced-Risk Products [Reduced-Risk Products are Products with the potential
to reduce the risks associated with smoking] in many markets. In contrast to traditional combustible
products, Reduced-Risk Products present new and specific challenges from an environmental
perspective, such as electronic waste.
We take our responsibility to protect the environment very seriously, and we want our recycling anddisposal schemes to meet the specific needs of each market. In 2019, we published internal
guidelines for Waste Management and Recycling across the Company. This guidance helps markets
to determine and implement appropriate initiatives.*E
To encourage consumers to safely recycle or dispose of our products, we offer convenient returnschemes in some of our markets. These are adapted to local needs, as the following best practice
examples show.

Case study

Ploom - Return scheme in Japan
In 2019, we collected around 400 kg of used Ploom devices, capsules, and cartridges by introducing
convenient collection boxes at around 300 shops selling Ploom in Tokyo.
In 2020, this program was expanded to include the tobacco industry and we continue to be one ofthe participating companies, and it was successfully launched throughout Japan in 2021.

Key achievements
since 2020■

We introduced around 1200 collection
points in 47 prefectures in total.

Case study

Logic - Return scheme in Switzerland
In Switzerland, online customers can order a Logic box, made from FSC-certified paper, to collect
their used pods. They can then send these boxes to us free of charge for disposal.
We also set up ‘pod points’ in shops selling Logic products across Switzerland, giving consumers
the option to return their used products in person.
After collection, the items are disposed of properly according to Swiss Standards.

Key achievements:
March - December
2020■

1,992 individual boxes sent to consumers■

754 boxes returnedCase study

Launching Ploom in the U.K.

When we introduced Ploom in the U.K. in November 2020, we decided to make the launch assustainable as possible – from secondary packaging to merchandising and activation.
Our in-store product displays combined 100% recyclable metal with FSC certified wood, which has
been confirmed as coming from sustainably managed forestry. The low-energy LED backgroundlighting uses up to 90% less power than conventional lightbulbs.
All of the secondary packaging for Ploom procured within the UK is recyclable or made fromrecycled materials. This includes our online sales distribution boxes, presentation boxes, and bags.
Featuring water-based ink, our online sales boxes contain no toxic chemicals and are 100%
recyclable.
Our Ploom retail outlets are built as modular designs, which means they can be redeployed andreused in any setting, extending the lifecycle of our assets. The materials used are from recycled orsustainable sources where possible.
The launch was a great example of how we can exceed customers’ expectations by blending styleand quality with sustainability.

Reducing the environmental impact of Ready-MadeCigarettes
Litter from tobacco products is an issue that calls for collective action to educate adult* consumers
to act responsibly. To approach this, we have rolled out various initiatives, including the following.
* Minimum legal age for smoking vary in accordance with the legislation in each country. In Japan,
smoking is not permitted for those under 20 years of age.

Case study‘Pick up and you will love your city’ in Japan
In Japan, we run the ‘Pick up and you will love your city’ campaign in collaboration with over 4,000
organizations, including local governments, NGOs, and volunteer groups, as well as local citizens.
Since the launch of this initiative in 2004, we have organized more than 2,000 litter-picking events,
involving 1.9 million participants.
We want to change participants’ mindsets to ‘I will not throw anything away’, through theirexperience of picking up litter.

Key achievements
since 2004■

+ 2,000 events■+ 1.9 million participants■+ 4,000 organizations

Case study

Tackling littering in Switzerland
Our partnership with IGSU/local interest group for a clean environment.

Packaging
Read about reducing the environmental impact of packaging and our approach to the EU Single-Use
Plastics Directive.
To reduce our environmental impact of our packaging, our Sustainability Program team is working
closely with various other departments to implement four global initiatives:

1. Replacing aluminum inner liners
In 2021, we began to replace aluminum inner liners in cigarette packaging with moreenvironmentally friendly paper liners. This contributes to our recyclability target and helps to reduce
the greenhouse gas (GHG) emissions associated with the packaging materials we purchase. This
global project is predicted to increase the overall recyclability of our packaging materials by 3% by2025, and 8% by 2030.

2. Reducing board weight
Launched in 2021, another new project aims to reduce the volume of cardboard used in our
packaging. Based on 2020 volumes, this could save up to 3,700 tons of pulp fiber packaging per
year, and reduce our greenhouse gas emissions by approximately 1,800 tons of CO2 equivalent.

3. Cutting back on plastic
To help us to reach our packaging materials target, we have reduced the thickness of thepolypropylene overwraps we use. In 2021, this enabled us to reduce our use of fossil-based plastic
by around 230 tons, as well as reducing our greenhouse gas emissions by up to 563 tons of CO2
equivalent. We completed the global roll-out of this initiative in 2021. We continue looking into
alternative solutions for polypropylene film substitution.

4. Using more recycled content
We are also focusing on using more recycled content in shipping cases for combustible items andReduced-Risk Products. This initiative will be rolled out for all shipping cases used in JTI factories
and markets. For transportation within domestic markets, our objective is for shipping cases to bemade from 100% recycled content by 2025. For export markets, our target is 70% recycled content
by 2025. This is to ensure that shipping case rigidity and product quality are not compromised
during long-distance transportation.

Case study

Minimizing Winston packaging plastic waste inGermany
In Germany, our consumers can now purchase products that generate less plastic waste, thanks to a
few big changes we made during 2020.
Our main focus was reducing the amount of plastic used in our Winston packaging. As a first step,
we made the boxes thinner and slightly smaller. Secondly, we introduced refill packs. Finally, weremoved the plastic handles from our boxes. Thanks to these steps, we significantly reduced ourplastic use in 2020 compared to 2019. Following the successful launch of our thinner Winston
boxes in Germany in 2020, we have introduced the same approach in France, the Netherlands, Spainand Switzerland in 2021.

Key achievements
since 2020■

164 tons of plastic saved from Winston
boxes

■

18 tons of plastic saved by removing
Winston box handles

Translation: 16% LESS PLASTICK? A GOOD
START #FORREAL

Also in Germany, we launched our Winston Carton Mega Box pilot project in October 2021.
Engineered in-house, this innovative packaging solution is made of 92% paper and 8% plastic. It
uses 85% less plastic than the conventional Mega Box and is fully recyclable.

Case study

JTI UK – #IGiveAButt campaign
Research commissioned by JTI UK found that most smokers don’t want to litter, but often don’tknow what to do with their cigarette butts. The #IGiveAButt campaign was devised to remindsmokers to dispose of their litter responsibly in the nearest bin. Working alongside an award-winning
design agency we also created the #IGiveAButt Stub Tidy, which is compact, easy to clean, andsustainable – designed to get cigarette butts from A to B when there is no bin in sight.
The campaign was piloted in September 2020 with a series of outdoor advertisements acrossLondon, and nationally in conjunction with the Daily Mail and the Metro – where online readers wereable to request a free #IGiveAButt Stub Tidy.
A total of 14,616 #IGiveAButt Stub Tidies were given away as part of the pilot. We followed up with5,000 recipients of the #IGiveAButt Stub Tidy and found that, as a result of the campaign, 60.5% hadchanged their behavior and no longer drop their cigarette butts on the ground.

Key achievements
since 2020■

60.5% of smokers less likely to drop theircigarette butts on the ground■

14,616 #IGiveAButt Stub Tidies
distributed as part of the UK pilot

Case study

Nordic Spirit - Sustainably made nicotine pouches
and traditional snus
Nordic Spirit meets the growing consumer demand for nicotine pouches, along with the expectationfor ever-more sustainable products.
Nordic Spirit is produced in Vargarda, Sweden, using 100% renewable energy sourced from externalvendors. 4% of this energy is generated by a hydroelectric power plant on a local river. Nordic Spirit
production also supports the local community – its rapid expansion has provided local job
opportunities both at the manufacturing facilities and for sub-contractors.
Nordic Spirit’s customer base includes many eco-conscious adults. The nicotine pouches offer
these consumers a flexible and discreet nicotine experience that fits easily into their lifestyle.

Key achievements
since 2020■

In Sweden, our entire Nordic Spirit
portfolio is produced using 100%
renewable energy.

Analyzing environmental impacts through Life Cycle
Assessments
Life Cycle Assessments are an important part of our toolkit for embedding sustainability into our
product development processes. These assessments enable us to analyze the environmental

impact of our products at every single stage of their life cycle, from extracting or processing the raw
materials, to transportation, distribution, usage, and disposal (or recycling).
In 2021, we piloted a new Organizational Life Cycle Assessment for our Natural American Spirit
products in Switzerland and Germany. The assessment covered both ready-made cigarettes andother tobacco products. We will use our findings to improve our products and packaging, and todevelop a carbon-offsetting strategy for this brand.
Moving forward, we will continue to carry out regular Life Cycle Assessments, with the aim ofminimizing our environmental impact across our portfolio. We are also creating an in-houseassessment and further developing our expertise in interpreting the assessment results.
Notes: This section is intended only to explain the business operations of the JT Group, not to promotesales of tobacco or vaping products or encourage smoking or vaping among consumers.

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

Read more

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Environmental data / Externalverification
Energy

GHG

Water

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ISO 14001

Environment data verification statement
Independent Assurance Statement for the JT Group

Environmental data
Group-wide Scope 1 and 2 GHG data, some Scope 3 GHG data, energy, proportion of renewableelectricity, water withdrawal, water discharge and waste-related data have been externally assured.
The calculation methodology and scope are outlined in our Basis of Reporting.

Energy
Energy Consumption (Terajoules)

2015

2016

2017

2018

2019

2020

2021

6,217

6,466

6,283

6,104

6,133

5,665

5,928

3,424

3,019

2,927

3,042

2,822

2,581

2,455

134

104

78

78

70

68

45

735

942

1,106

1,174

1,374

1,560

1,690

128

271

420

462

508

714

833

607

671

687

713

866

847

857

Total energy sold

-105

-107

-112

-114

-133

-116

-106

Total

10,406

10,423

10,283

10,284

10,265

9,758

10,012

Fossil fuels purchased andconsumed

Electricity (non-renewable)purchased

Steam / heating / cooling andother energy (non-renewable)purchased

Total renewable energy
purchased or generated- Total renewable electricity
purchased or generated- Total renewable energy
purchased or generated
excluding electricity

Energy Consumption Breakdown(Terajoules)

Non-renewable fuelconsumed

Renewable fuel consumed

2015

2016

2017

2018

2019

2020

2021

6,189

6,410

6,205

6,029

6,124

5,665

5,928

606

669

685

711

865

846

856

3,713

3,449

3,499

3,631

3,388

3,346

3,303

2

2

5

26

21

17

32

-105

-107

-112

-114

-133

-116

-106

10,406

10,423

10,283

10,284

10,265

9,758

10,012

2015

2016

2017

2018

2019

2020

2021

402

492

490

494

519

411

410

2015

2016

2017

2018

2019

2020

2021

3%

7%

11%

12%

13%

19%

23%

Electricity, heating, coolingand steam purchased for
consumption

Self-generated electricity,
heating, cooling and steam

Electricity, heating, coolingand steam sold

Total

Electricity (nonrenewable)
generated

Proportion of renewable electricity
(%)

Total

GHG
GHG emissions

2015

2016

2017

2018

2019

2020

2021

CO2

361

366

356

350

354

323

337

HFCs

33

37

32

28

23

24

22

Total (Scope 1)

395

402

388

378

378

347

359

Scope 2

498

437

397

401

378

331

306

Total (Scope 1 + 2)

893

839

785

779

756

679

665

7,998

7,666

7,371

7,488

7,331

5,812

5,473

1,624

1,534

1,826

1,609

1,854

1,530

1,776

3,472

3,317

2,689

3,347

3,951

2,806

2,298

- Others

2,902

2,815

2,856

2,533

1,526

1,476

1,399

Capital goods

391

358

422

481

393

322

311

121

114

118

121

122

116

122

319

346

360

385

398

374

379

27

25

29

29

27

22

21

(1,000 tons CO2e)

Purchased goods andservices

Direct leaf supply

Third-party tobacco
materials

Fuel-and-energy-related
activities(not included in Scope 1 or 2)

Upstream transportation anddistribution

Waste generated inoperations

GHG emissions

2015

2016

2017

2018

2019

2020

2021

Business travel

265

264

242

232

223

65

51

Employee commuting

62

61

64

58

54

50

45

Upstream leased assets

0

0

1

1

1

0

0

309

262

293

321

288

301

293

Processing of sold products

2

2

2

1

1

1

1

Use of sold products

32

33

43

43

42

48

56

94

80

111

111

78

90

87

Downstream leased assets

1

1

1

1

1

1

0

Franchises

2

1

1

2

5

5

6

Total (Scope 3)

9,623

9,212

9,057

9,273

8,963

7,210

6,847

(1,000 tons CO2e)

Downstream transportationand distribution

End of life treatment of soldproducts

Water
Water withdrawal by source (1,000

2015

2016

2017

2018

2019

2020

2021

1,398

1,575

1,466

1,570

1,631

1,712

1,783

0

0

0

0

0

0

0

Rainwater

46

47

53

47

41

31

29

Groundwater

5,771

5,812

5,631

5,746

5,754

5,602

5,171

Produced/process water

0

0

0

0

0

0

0

Municipal supply

3,620

3,343

3,351

3,326

2,986

2,881

2,873

0

0

0

0

0

0

0

10,835

10,777

10,50010,69010,411

10,227

9,856

m³)

Fresh surface water

Brackish surface
water/seawater

Wastewater from anotherorganization

Total

Water discharge by destination

2015

2016

2017

2018

2019

2020

2021

2,433

2,417

2,656

2,805

2,982

2,925

2,730

0

0

3

19

19

6

6

1

2

1

0

8

12

12

3,490

3,246

3,174

3,177

2,828

2,829

2,833

0

0

0

0

0

0

0

5,924

5,665

5,834

6,002

5,838

5,772

5,581

2015

2016

2017

2018

2019

2020

2021

99

95

96

95

98

95

95

13

12

11

11

13

10

8

7

6

6

7

5

5

6

Landfilled

21

21

21

21

17

17

15

Total

140

134

133

134

133

127

124

(1,000 m³)

Fresh surface water

Brackish surface
water/seawater

Groundwater

Municipal/industrial
treatment plant

Wastewater from anotherorganization

Total

Waste
Waste generation(1,000 tons)

Recycled including waste
composted

Incinerated with heat recovery

Incinerated without heatrecovery

Packaging
Reusable & Recycable Packaging

2021

Weight breakdown (1,000 tons)

Reusable & Recycable

198

Packaging Weight

Non Reusable & Recycable

31

Packaging Weight

Total

228

[tobacco business]
Packaging Recycled Content

2015

2016

2017

2018

2019

2020

2021

breakdown (1,000 tons)

Recycled Materials Weight

Non Recycled Materials
Weight

31

166

Total

197

Packaging composition

2021

Reusable or Recyclable
Packaging (%)

Recycled Content (%)[tobacco business]

87%

16%

ISO 14001 certified (Scope: Cigarette and tobacco-related factories (includingGroup factories))
2015

2016

2017

2018

2019

2020

2021

Total factories

41

40

43

43

46

47

47

Certified factories

34

32

33

34

36

36

36

Certified (%)

83%

80%

77%

79%

78%

77%

77%

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Environmental
management

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