Global Reporting Initiative (GRI)
Index
We have compiled our FY2020 on-line sustainability content with reference to the principles of the
Global Reporting Initiative (GRI) Index Sustainability Reporting Standards. We defined the content of
this document using a materiality assessment that covered the entire JT Group.
The Index below includes the location of and additional information pertaining to the Universal
Standard Disclosures and the Specific Standard Disclosures. Further information on the calculation
methodology and scoping is available in our Basis of Reporting, notably for data related toCompliance, Human Resources (HR), Workplace Health and Safety, Environment, as well as ourtobacco business sustainability strategy performance data. Some of our data has beenexternally verified.
In addition, our Integrated Report is compiled to align with the International Integrated Reporting
Framework by Integrated Reporting Framework Council (IIRC). Our reporting also takes in toaccount the principles and standards of Sustainability Accounting Standards Board (SASB). See theend of the page for our disclosure in relation to SASB.

Table of contents

Universal Standard Disclosures■

Organizational Profile■

Strategy■

Ethics and Integrity■

Governance■

Stakeholder Engagement■

Reporting Practice

Topic-specific Standard Disclosures■

Economic Performance■Market Presence■

Indirect Economic Impacts■

Procurement Practices■

Anti-Corruption■

Anti-Competitive Behavior

■

Tax

■

Energy■Water and Effluents■

Biodiversity■

Emissions

■

Waste

■

Environmental Compliance■

Supplier Environmental
Assessment■

Employment■

Labor/Management Relations■

Occupational Health and Safety■

Training and Education■

Diversity and Equal Opportunity■

Non-discrimination■

Freedom of Association and Collective■Child Labor

Bargaining■

Forced or Compulsory Labor■

Human Rights Assessment■

Local Communities■

Supplier Social Assessment■

Public Policy■

Customer Health and Safety■

Marketing and Labeling■Socioeconomic Compliance

SASB Standard - Tobacco■Public Health■

Universal Standard Disclosures

Organizational Profile

Marketing Practices

GRI indicator

Disclosure

102-1
Name ofJapan Tobacco Inc.

organization

Corporate profile
The regulatory approach to the Reduced-Risk Products* category varies greatly fromcountry to country. Depending on the jurisdiction and product characteristics, there may be
no restrictions, outright bans, or any number of regulatory variants.
There are countries in which:
102-2
Activities,>sales of E-Vapor and/or T-Vapor are banned completely;brands, products,>E-Vapor without nicotine is permitted, but E-Vapor with nicotine is effectively banned as aand services

pharmaceutical license is required (e.g. Japan); or>the cigarette regulations also apply to T-Vapor.

* Reduced-Risk Products (RRP) are those with the potential to reduce
the risks associated with smoking.

102-3
Location of

About our reporting

headquarters

102-4
Location of

Corporate profile

operation

102-5

Integrated Report FY2020:

Ownership and>History of the JT Group p.18-19

legal form

>Shareholder information p.184

1. Geographic locations where products and services are offered:Corporate profile
2. Sectors served:
102-6

Corporate profile

Markets served
3. Types of customers and beneficiaries:
Our tobacco business value chain
Our pharmaceutical business value chain
Our processed food business value chain

GRI indicator

Disclosure

1. Total number of employees:
Integrated Report FY2020:
Fact sheet(supplementary document)
2. Total number of operations:Integrated Report FY2020:>Consolidated financial statements p.114-179

102-7
Scale oforganization

3. Net sales (for private sector organizations) or net revenues (for public sector
organizations):
Integrated Report FY2020>Key performance indicator p.6-7
4. Total capitalization (for private sector organizations) broken down in terms of debt andequity:Integrated Report FY2020:
Fact sheet(financial data)
5. Quantity of products or services provided Integrated Report FY2020:>Business Review p.34~49

102-8

Corporate profile

Information on

Basis of Reporting

employees andother workers

EMPLOYEES BY TYPE OF CONTRACT AND
GENDER AS OF THE END OF 2020

GRI indicator

Disclosure

TYPE OF CONTRACT

Permanent (full- and

MALE

FEMAL
E

TOTAL

33,64911,93445,583

Temporary full-time

3,542

1,592

5,134

Temporary part-time *C

n/a

n/a

4,693

Temporary part-time *E

19

47

66

Supervised workers *C

n/a

n/a

1,884

part-time)

THE NUMBER OFEMPLOYEESCOUNTRY

Japan

TOTAL
MALE

FEMALE13,125

4,578

17,70324,066

8,948

33,014

Total of all othercountries (excluding
Japan)

The above data excludes temporary part-time and supervised workers.

GRI indicator

Disclosure

Description of the organization’s supply chain, including its main elements as they relate tothe organization’s activities, primary brands, products, and services.
102-9

Corporate profile – Our businesses

Supply chain

Our tobacco business value chain
Building sustainable supply chains
Our pharmaceutical business value chain
Our processed food business value chain

1. Changes in the location of, or changes in, operations, including facility openings, closings,
and expansions:
About our reporting
JT Inc., head office relocation
2. Changes in the share capital structure and other capital formation, maintenance, andalteration operations (for private sector organizations):
102-10Significant
changes to theorganization andits supply chain

About our reporting
Integrated Report FY2020:
Shareholder information p.184
3. Changes in the location of suppliers, the structure of the supply chain, or relationships
with suppliers, including selection and termination.
Corporate profile(for countries in which we directly source tobacco leaf)
Our tobacco business
Building sustainable supply chains
Exceeding expectations with products and services(Reduced-Risk Products supply chain)
Our pharmaceutical business value chain
Our processed food business value chain

102-11
Precautionary
principle orapproach

Whether and how the organization applies to the precautionary principle or approach.
Materiality
Risk management102-12A list of externally developed economic, environmental and social charters, principles, orExternal

other initiatives to which the organization subscribes, or endorses.

initiatives

Stakeholder engagement102-13A list of the main memberships of industry or other associations, and national orMembership ofinternational advocacy organizations.

associations

Stakeholder engagement

Strategy
Ethics and Integrity
GRI indicator

Disclosure102-16
Values,principles,

Our sustainability strategy

standards, andGroup compliancenorms ofbehavior

102-17
Mechanisms foradvice andOur Codes of Conduct

concerns about
ethicsGovernance

GRI indicator

Disclosure

A statement from the most senior decision-maker of the organization (such as CEO, chair, or
102-14
Statement fromsenior decisionmakerequivalent senior position) about the relevance of sustainability to the organization and its
strategy for addressing sustainability.
CEO message:
Integrated Report FY2020>p. xxCSO Message

Integrated Report FY2020:>Value creation story p.20-21>Investing in people p.68-71>Our material issues p.60-61>Our sustainability strategy p.62-63>Tobacco business sustainability strategy 4 focus areas p.72-79>Risk factors p.50-53
102-15>Non-financial key performance p.8-9

Key impacts,>Respect for Human Rights p.64

risks, and>Improving our social impact p.65

opportunities>Improving our environmental impact p.66-67>Awards and recognition p.182>Our sustainability strategy (materiality, sustainability strategy, sustainable development
goals
Tobacco business sustainability strategy targets
Pharmaceutical business sustainability strategy targets
Processed food business sustainability strategy targets)

1 Governance structure of the organization, including committees of the highest governancebody.
2 Committees responsible for decision-making on economic, environmental, and social
102-18

topics.

Governancestructure

Integrated Report FY2020:>Good governance and business standards p.86-103
Corporate GovernanceCompliance102-19Delegating
authority

Process for delegating authority for economic, environmental, and social topics from thehighest governance body to senior executives and other employees.
Integrated Report FY2020:>Good governance and business standards p.86-103

GRI indicator

Disclosure

1 Whether the organization has appointed an executive-level position or positions with
102-20Executive-level
responsibility foreconomic,
environmental,
and social topics

responsibility for economic, environmental, and social topics.
2 Whether post holders report directly to the highest governance body.
Integrated Report FY2020:>Good governance and business standards p.86-103
JTI Executive Committee:
https://www.jti.com/about-us/our-business/our-leadership

1 Processes for consultation between stakeholders and the highest governance body on
economic, environmental, and social topics.
2 If consultation is delegated, describe to whom it is delegated and how the resulting
feedback is provided to the highest governance body.
JT Group Materiality
Stakeholder engagement102-21

Our initiatives for stakeholder engagement are described in the Sustainability section of our

Consulting

global website. For example, our engagement with:stakeholders on› our suppliers such as directly contracted growers, third-party suppliers of tobacco leaf or

economic,other suppliers as well as government agencies, NGOs and industry organizations (seeenvironmental,

Building sustainable supply chains);

and social topics› our consumers or retailers (see Exceeding expectations with products and services);› law enforcement partners in tackling illegal trade (see Tackling the Illegal trade );› local communities (see Improving our social impact);› our employees (see Our people, or The JT Group health and safety);› our Human Rights External Advisory Board and other partners (seeRespecting human rights).
Integrated Report FY2020:>CFO message p.30-33

GRI indicator

Disclosure

Composition of the highest governance body and its committees by:
1 Executive or non-executive
2 Independence
3 Tenure on the governance body102-22Composition of
the highest
governance bodyand its
committees

4 Number of each individual’s other significant positions and commitments, and
5 The nature of the commitments
6 Gender
7 Membership of under-represented social groups
8 Competencies relating to economic, environmental, and social topics
9 Stakeholder representation
Integrated Report FY2020:>Good governance and business standards p.86-103

Stakeholder Engagement

GRI indicator

Disclosure

Stakeholder engagement
Integrated Report FY2020:
102-40>CFO message p.30-33

List ofstakeholder

Our initiatives for stakeholder engagement are described throughout the sustainability

groupscontent. See explanation for 102-21 for more details.
JT Corporate Governance Policy
https://www.jt.com/about/corporate_governance/governance_policy/index.html

Basis of Reporting
102-41

A total of 63 companies have a union in our Group, and 92.5% of eligible employees (only inCollective

JT and Japanese domestic group companies) are covered by collective bargaining

bargaining

agreements. Due to legal requirements in certain countries, we can’t know whether

agreements

employees are unionized, and thus cannot provide the information regarding employees in
our international tobacco business.

The basis for identifying and selecting stakeholders with whom to engage.
Stakeholder engagement102-42
Identifying andselectingstakeholders

Integrated Report FY2020:>CFO message p.30-33
Our initiatives for stakeholder engagement are described throughout the sustainability
content. See explanation for 102-21 for more details.
JT Corporate Governance Policy
https://www.jt.com/about/corporate_governance/governance_policy/index.html

The organization’s approach to stakeholder engagement, including frequency ofengagement by type and by stakeholder group, and an indication of whether any of the102-43

engagement was undertaken specifically as part of the report preparation process.

Approach to
stakeholder

Stakeholder engagement

engagement
JT Corporate Governance Policy
https://www.jt.com/about/corporate_governance/governance_policy/index.html

GRI indicator

Disclosure

The organization’s approach to stakeholder engagement, including frequency ofengagement by type and by stakeholder group, and an indication of whether any of theengagement was undertaken specifically as part of the report preparation process.
102-44
Key topics andStakeholder engagement

concerns raised
Integrated Report FY2020:>Value creation p.14-25>Sustainability: Strategy p.62-63, Absolute requirements for sustainability p.64-67

Reporting PracticeGRI indicator

Disclosure102-45
Entities includedin theJT Annual Securities Report FY2019:consolidated

https://www.jti.co.jp/investors/others/12g3_2/index.html

financialstatements

1 An explanation of the process for defining the report content and the topic boundaries.
102-462 An explanation of how the organization has implemented the Reporting Principles for

Defining report

defining report content.

content and topic
boundaries

JT Group Materiality
Our sustainability strategy
Scope of data and information presented

102-47
List of material
topics102-48
Restatement of
information

A list of the material topics identified in the process for defining report content.
JT Group Materiality

JT Group health and safety > Our health and safety performance as a Group
Lost time injury rate in 2019 has been restated from 0.24 to 0.23 due to recalculation.

Significant changes from previous reporting periods in the list of material topics and topic
102-49boundaries.

Changes inreporting

Not applicable
Materiality

102-50
Reporting period

102-51
Date of mostrecent report102-52
Reporting cycle

About our reportingGRI indicator

Disclosure102-53
Contact point forquestionsregarding thereport102-54Claims ofreporting inaccordance with
the GRI
Standards

102-55
GRI content

GRI Index

index

102-56External
assurance

About our reporting
External verification

Topic-specific Standards Disclosures

Economic Performance

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

Tax practiceIntegrated Report FY2020:

103-3
Management>Message from the CEO p.14
>Financial review p.106~113

approach:
Evaluation of the
management
approach201-1

Tax practiceDirect economic
value generated

Integrated Report FY2020:and distributed>Message from the CEO p.14
>Financial review p.106~113>Improving our social impact p.65

GRI indicator

Disclosure

DIRECT ECONOMIC VALUE GENERATEDAND DISTRIBUTED2020 (MILLION YEN)

Revenue*

2,092,561

Total employee benefits and wages

447,767

Current income taxes

111,142

Tobacco excise taxes

4,821,891

Dividends

273,200

Community investment

5,286* Excluding tobacco excise taxes and revenue from agent transactions.

Market PresenceGRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
This is our standard operating procedure.
103-3
Management
approach:
Evaluation of the
management
approach

202-1
Ratios ofstandard entrylevel wage by
gendercompared to
local minimum
wage atsignificant
locations ofoperation

Basis of ReportingGRI indicator

Disclosure

SIGNIFICANTRATIO OF STANDARD ENTRY-LEVEL WAGE TO

OPERATIONSLOCAL MINIMUM WAGE

Male

152.7%

Female152.7%

Male

228.7%

Female228.7%

Male

145.4%

Female145.4%

Male

122.1%

Female122.1%JT Tokyo HQ

JTI Moscow

JTI Trier

JTI UK

Indirect Economic Impacts

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
Building sustainable supply chains
103-3
Management
approach:
Evaluation of the
management
approach203-1
Development
and impact of
infrastructure
investments andservices

As part of our Global Leaf CAPEX projects, we invested 15.3 million U.S. dollars ininfrastructure-related projects in Brazil, Malawi, Tanzania, U.S., and Zambia. In addition, weinvested 1.3 million U.S. dollars in infrastructure-related projects in Brazil, Malawi, Tanzania
and Zambia, as part of our Grower Support Programs.

supported

203-2
Significant
indirect
economic

Building sustainable supply chains

impacts,

Tackling illegal trade

including theextent ofimpacts

Procurement Practices

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management

Tobaccoapproach and its
components

103-3
Management
approach:

Pharmaceuticals

Evaluation of theProcessed foodmanagement
approach204-1

We define local as the country of operation.

Proportion of

Significant location is defined as any location with more than 5% of global spend.

spending on
local suppliers

GRI indicator

Disclosure

SIGNIFICANT% OF LOCALSUPPLIER TYPE

SPEND IN

LOCATIONS

Japan

Geneva HQ

Germany

Philippines

RussiaTaiwan2020

Tobacco leaf and non-tobacco
material suppliers

Non-tobacco materials and otherproducts and services suppliers

Non-tobacco materials and otherproducts and services suppliers

Non-tobacco materials and otherproducts and services suppliers

Non-tobacco materials and otherproducts and services suppliers

Non-tobacco materials and otherproducts and services suppliers

65

51

60

59

33

40

The percentage of local suppliers of bulk drug substances to our pharmaceutical business
is 0%. The percentage of local spend for Tier 1 suppliers of TableMark on its raw material
sourcing is 100%.

Anti-corruption

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of
the material
topic and its

JT Group Materiality
Integrated Report FY2020:>Good governance and business standards p.86~103

boundary

103-2
Management
approach: The
management
approach and its

Integrated Report FY2020:

components>Good governance and business standards p.86~103
JT Group Anti-Bribery Policy

103-3Management

Anti-bribery and corruption

approach:
Evaluation of the
management
approach

205-2
Communicationand training on
anti-corruption

Anti-bribery and corruption

policies andprocedures

Anti-competitive Behavior

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of
the material
topic and its

JT Group Materiality
Integrated Report FY2020:>Good governance and business standards p.86~103

boundary

103-2
Management

JT Group Materiality

approach: The
management

Integrated Report FY2020:

approach and its>Good governance and business standards p.86~103

components

103-3
Management

Anti-competitive behavior

approach:
Evaluation of theIntegrated Report FY2020:

management>Good governance and business standards p.86~103

approach

206-1
Total number oflegal actions foranti-competitive
behavior, antitrust, andmonopolypractices andtheir outcomes

Tax

In 2020, there were no legal actions for anti-competitive behavior, anti-trust, and monopoly
practices that resulted in a significant fine for the JT Group, and no such legal actions that
resulted in a penalty, or warning, with material impact for sustainability, taking into accountthe size of the JT Group.

GRI indicator

207-1
Approach to tax

Disclosure

Tax practices

207-2
Tax governance,
control, and risk
management

207-3
Stakeholder
engagement andmanagement ofconcerns related
to taxEnergyJT Group Tax Policy

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management

Environment and our operations > Energy and emissions and climate change

approach:
Evaluation of theBasis of Reporting

management
approach

302-1
Energyconsumption
within theorganization

Water and Effluents

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management
approach:
Evaluation of the
management
approach

Environment and our operations > Natural Resources > Water
Basis of Reporting303-1
Interactions withwater as ashared resource

303-2
Management ofwater dischargerelated impacts

303-3
Water withdrawal
Environmental data / External verification
303-4
Water discharge

Biodiversity

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3

Environment and our operations
We approach biodiversity as a topic integrated into our responsible business operations.

Management
approach:
Evaluation of the
management
approach

Environment and our operations
Impacts on biodiversity can be observed directly or indirectly through activities such as:304-2
Significant
impacts ofactivities,
products, andservices on
biodiversity>Crop production/land management e.g. promotion and adoption of good agricultural
practices; land/soil use and conservation practices; the use and management of agricultural
inputs such as crop protection agents and fertilizers, and the use and management of water
resources>Wood use and forestry management e.g. tree planting, natural regeneration, avoided
deforestation and forest remediation; and the use of wood for tobacco curing, domestic
consumption, and construction materials for curing barns and other buildings>The building of new, or expansion of, buying stations, processing facilities, offices etc.

Emissions

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management
approach:
Evaluation of the
management
approach

305-1
Direct GHG

Environment and our operations > Energy and emissions and climate change

emissions(Scope 1)

305-2
Energy indirect
GHG emissions(Scope 2)

305-3
Other indirect
GHG emissions(Scope 3)

305-5
Reduction of
GHG emissions

Basis of ReportingWasteGRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management

Environment and our operations > Waste

approach:

Environment and our products

Evaluation of theBasis of Reporting

management
approach306-2
Total weight ofwaste by typeand disposal
methodEnvironmental ComplianceGRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
The JT Group Environment Policy
103-3Management
approach:
Evaluation of the
management
approach

307-1
Monetary valueof significant
fines and total
number of nonmonetary

During 2020, there were no significant monetary fines or non-monetary sanctions for non-sanctions forcompliance with environmental laws and regulations.

non-compliancewithenvironmental
laws andregulations

Supplier Environmental Assessment

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management
approach:
Evaluation of the
management
approach

308-1

Building sustainable supply chains

Percentage of
new suppliers
that werescreened using
environmental
criteria

308-2
Significant actualand potential
negativeenvironmental
impacts in the
supply chain andactions taken

Employment

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
Talent attraction
103-3
Management
approach:
Evaluation of the
management
approach

401-1

Basis of Reporting

Total number
and rates of new
employee hires
and employee
turnover by age

NEW EMPLOYEES’ HIRE AND TURNOVER

group, gender,and region
BY GENDER

MALE

FEMALE

TOTAL

Total number of new employees

2,856

1,409

4,265

New employee hire rate

7.7%

10.4%

8.4%

Total employee turnover

3,169

1,418

4,587

Employee turnover rate

8.5%

10.5%

9.0%

BY AGE

Total number of new
employees (only in JT and
JTI)

> 30

50

1,70

1,94

3

3

New employee hire rate

25.4

(only in JT and JTI)%

Total employee turnover*

946

Employee turnover rate*

30–

11.6
%

> 50

TOTA
L

135

3,781

7.4%

2.3%

9.8%

2,54

1,08

2

0

7.9%

12.4
%

4,568

9.3%

* Some Japanese Group companies (Akros Pharma Inc., Fuji Foods, andSaint-German America) are excluded.

401-2

Basis of Reporting

Benefits provided
to full-time

At the end of 2020, significant locations included our JT head office in Tokyo, Japan, andemployees that

our international tobacco business head office in Geneva, Switzerland.

are not provided

Our international tobacco business, for instance, positions compensation levels in the 75th

to temporary or

percentile against companies with which we compete for talent.

part-time
employees, bysignificant
locations ofoperation

JT HEAD OFFICE IN TOKYOTEMPORARY
FULL-TIMEEMPLOYEES

PE
RM
AN

TEMPO

EN
BENEFITS

CO

RARY

T

COM

NT

PART-

EM

MIS

RA

TIME

PL

SIO

CT

EMPLO

OY

NED

EM

YEES

EE

PER

PL

S

SON

OY

NEL

EE
S*

Bereaved family
compensation program

Regular health

Y

Y

Y

Medical leave systemYY

Parental leave

YY

Retirement provisionY

Stock ownershipYexamination

Y

Y

Y

Y

INTERNATIONAL TOBACCO BUSINESS HEAD
OFFICE IN GENEVAPERMANBENEFITSENTTEMPORARYTEMPORARY

FULL-TIME

PART-TIMEEMPLOYEESEMPLOYEESEMPLOY
EES

Life
insurance

HealthcareYY

Y (Prorated)

Y

Y

Y

Y

Y

Y (Prorated)YY

Y (Prorated)YY

Y (Prorated)

Disability
andinvalidity
coverage

Parental
leave

Retirement
provisionStockownershipY* Contract employees may be given benefits if they are exempt from
Company regulations.

We also provide more benefits related to generational diversity and work-life balance to ouremployees. Regarding initiatives in our Japanese operations and international tobacco
business, please see Investing in people.

Labor/Management Relations

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
We comply fully within the framework of local law in our places of operation.
103-3
Management
approach:
Evaluation of the
management
approachGRI indicator

Disclosure

About our reporting
Basis of Reporting

MINIMUM

402-1
Minimum notice
periods
regardingoperationalchanges,
including

MINIMUM
NOTICEPERIODS
regardingoperationalchanges

NUMBER OF

NOTICEMONTHSPERIOD FOR

between the

NUMBER OF

announceme

MONTHSnt and the

between thetime the firstnt and theleaves the

final closure

factory
because ofare specified in

the closure

ON AND
NEGOTIATIO
N:

announceme

employee

whether these

CONSULTATIIs thisminimum
notice period
specified incollective
agreements?

collective
agreements
NA

NA

NA

NA

In 2019, our international tobacco business refined the organizational structure and globally
3,720 employees will be affected by the organizational change over the next three years.
However, during the same period 1,300 new positions will be created. Each employee wasnotified of the change in accordance with local labor laws.

Occupational Health and Safety

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management

The JT Group health and safety

approach and its
components

103-3
Management
approach:
Evaluation of the

The JT Group health and safety

management
approach403-1
Occupational
health and safety
management
system403-2
Hazardidentification,risk assessment,
and incident
investigation

403-4
Workerparticipation,
consultation, andcommunication
on occupational
health and safety

The JT Group health and safety

GRI indicator

Disclosure

403-5
Worker training
on occupational

The JT Group health and safety

health and safety

403-6
Promotion of

The JT Group health and safety

worker health

Description of our approach to preventing and mitigating significant occupational healthand safety impacts that are directly linked to business.
Health and safety on the farm is essential to our business. Our Leaf Production Technicians
403-7

work closely with our directly contracted growers to improve health and safety. We do soPrevention andthrough our Agricultural Labor Practices (ALP) program. We apply the same standards when

mitigation ofworking with our leaf merchants.

occupational
health and safety

Exposure to hazardous substances and green tobacco sickness pose a particular risk to

impacts directly

tobacco farming, so we take steps to prevent this through our ALP program. We also follow

linked byindustry best practices set by CORESTA:

business

No.17 – Sustainability in Leaf Tobacco Production

relationships

No. 19 - Responsible Use of Crop Protection Agents (CPAs) in Tobacco Leaf Production,

andNo. 27 - Identification and Elimination of Highly Hazardous Pesticides (HHPs) in Leaf
Tobacco Production

403-8
Workers coveredby anoccupational
health and safety
management
system

Our occupational health and safety management system covers employees, supervised
workers, and third-party contractors.

GRI indicator

Disclosure

403-9
Injury rate (IR),occupational
disease rate
(ODR), lost day
rate (LDR),
absentee rate(AR), andfatalities byregion and by

The JT Group health and safety
We don’t disclose breakdown of health and safety data by gender as we do not have asignificant difference in results between men and women in the workforce.
In 2019, we revised our KPIs and we expanded the scope of our reporting to lost-time
injuries, occupational illness cases, and recordable injuries.
In JT, absenteeism in 2020 was reported as 0.68.

gender403-10Work-related ill

The JT Group health and safety

healthTraining and Education

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
Talent development
103-3
Management
approach:
Evaluation of the
management
approach

404-2
Programs forskillsmanagement
and lifelong

Talent development

learning that
support the

Average hours per employee of training and development: 228.8h hours (*C)

continued
employability of
employees andassist them inmanaging career
endings

Average amounts spent per FTE on training and development: 110,269 Yen (*C)

GRI indicator

Disclosure

PERCENTAGE OF EMPLOYEES RECEIVINGREGULAR PERFORMANCE AND CAREERDEVELOPMENT REVIEWS

404-3

BY GENDER

2019

Percentage of

BY EMPLOYEECATEGORY *D

2019

employees
receiving regularperformance and

Male

79.5%

careerExecutive
Officers

100%

development
reviews, byManagement

gender and by
employee

Female91.3%

category(excluding
Executive

96.9%

Officers)

Employees(excluding

78.5%

management)

We have reported on the 2019 performance appraisal data because the information for2020 is currently being analyzed. Employees who did the appraisal on paper are excluded in
the scope as we cannot track their data by our HR system.

Diversity and Equal Opportunity
Our workforce is diverse comprising of employees from over 100 countries, ranging from Japan,
Philippines, Russia, EU countries, UK or Brazil, to name but a few. Percentage of employees withdisabilities for FY2020 was 3.23% for JT.

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management

Diversity and inclusion

approach and its
components

103-3
Management
approach:
Evaluation of theDiversity and inclusion

management
approach405-1
Composition of
governancebodies andbreakdown of
employees per
employee

BREAKDOWN OF EMPLOYEES BY GENDER AND
AGE GROUP (Except Executive Officers)

category
according togender, age

AGE GROUP

group, minority

MALE

FEMALE

TOTAL

group
membership, andother indicators

Under 30

5,426

2,705

8,131

30–50

23,9508,152

32,102

Over 50

6,848

1,812

8,660

of diversity

Akros Pharma Inc., Fuji Foods, and Saint-Germain America are excluded from the data by
age group.

GRI indicator

Disclosure

EMPLOYEES BY POSITION AND GENDER AT THE
END OF 2020

POSITIONS

Executive Officer

Management (excluding
Executive Officers) *MALE

FEMALE

TOTAL

97.2%

2.8%

71

85.0%

15.0%

3,275

72.5%

27.5%

47,371

Employees (excluding
Executive Officers andManagement)* Management is defined as persons in positions of supervision or
management according to national legislation in Japan and in ourinternational tobacco business, the Vice President and Director-level
employees are categorized as Management.

EXECUTIVE OFFICERS BY POSITION AND GENDER
AT THE END OF 2020

AGE GROUP

MALE

FEMALETOTAL

Under 30

0

0

0

30–50

6

0

6

Over 50

65

267

GRI indicator

DisclosureThis data does not include 3 executives in our Japanese domestic Group companies, as we
do not ask employees their age.

Basis of Reporting

SIGNIFICANTEMPLOYEEOPERATIONSCATEGORYRATIO OF ANNUAL BASE
SALARY OF WOMEN TO
MEN

Vice President

89.5%

Director

97.1%

Manager

94.7%

Associate100.1%

Executive Officer

90.0%Management

91.7%

Employee

96.6%

Director

92.3%

Manager

94.2%

Associate

89.3%

JTI Geneva HQ
405-2
Ratio of basic
salary andremuneration of
women to men
by employee
category, by
significant
locations ofoperation

JT Tokyo HQ

JTI UK

Non-discrimination

GRI indicator

103-3
Management
approach:
Evaluation of the
management
approach

Disclosure

Integrated Report FY2020:>Good governance and business standards p.86~103
Our Codes of Conduct
Diversity and inclusion
Basis of Reporting

Our Codes of Conduct406-1
Total number ofDiversity and inclusion

incidents of
discrimination

Basis of Reportingand corrective
actions taken

In 2020, four alleged cases of workplace discrimination were reported. None of the four wasproven as a violation of our Codes of Conduct.

Freedom of Association and Collective Bargaining

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its

Agricultural Labor Practices booklet:
https://www.jti.com/sites/default/files/global-files/documents/relateddocuments/jti_ALP_booklet2017_view_doublepage.pdf

components

103-3
Management
approach:
Evaluation of the

Building sustainable supply chainsmanagement
approach407-1
Operations andsuppliers inwhich the right tofreedom of
association andcollective
bargaining may
be at riskChild Labor

Agricultural Labor Practices and Leaf Supply Chain Due Diligence
The right to exercise freedom of association and collective bargaining is at significant risk ina number of countries where we directly or indirectly source tobacco leaf. We assess andmitigate those risks through our Leaf Supply Chain Due Diligence, which includes ourAgricultural Labor Practices program.

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management
approach:
Evaluation of the
management
approach

Building sustainable supply chains
Agricultural Labor Practices and leaf supply chain due diligence
JTI website:
https://www.jti.com/our-views/arise-ending-child-labor-through-education-and-opportunity

ARISE website: http://ariseprogram.org/en
Agricultural Labor Practices booklet:
https://www.jti.com/sites/default/files/global-files/documents/relateddocuments/jti_ALP_booklet2017_view_doublepage.pdf

Building sustainable supply chains
Agricultural Labor Practices and leaf supply chain due diligence
JTI website:
408-1

https://www.jti.com/our-views/arise-ending-child-labor-through-education-and-opportunity

Operations andsuppliers at
significant risk
for incidents ofchild labor

ARISE website: http://ariseprogram.org/en
Operations and suppliers having significant risk for incidents of child labor have been
identified in a number of countries where we directly or indirectly source tobacco leaf. We
assess and mitigate those risks through our Leaf Supply Chain Due Diligence, which
includes the Agricultural Labor Practices program, the ARISE program − Achieving
Reduction of Child Labor in Support of Education, the Grower Support Programs and Good
Agricultural Practices, as well as communication and training, and the Eliminating Child
Labor in Tobacco-Growing (ECLT) Foundation.

Forced or Compulsory LaborGRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management
approach:
Evaluation of the

Building sustainable supply chains
JTI website:
https://www.jti.com/our-views/arise-ending-child-labor-through-education-and-opportunity

Agricultural Labor Practices booklet:
https://www.jti.com/sites/default/files/global-files/documents/relateddocuments/jti_ALP_booklet2017_view_doublepage.pdf

management
approach409-1
Suppliers
identified ashavingsignificant risk
for incidents offorced or

Supplier Screening

compulsory
labor, andRespecting human rights

measures tocontribute to theelimination of all
forms of forced
or compulsory
labor

Human Rights Assessment

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
Respecting human rights
103-3
Management
approach:
Evaluation of the
management
approach

412-1
Total number

We have been carrying out human rights due diligence in Japan since 2016, which covered

and percentage

our Japanese domestic tobacco, pharmaceutical and processed food businesses. Theseof operations

businesses in total represent 40% of our Group’s consolidated revenue.

that have been
subject to humanSince 2018, we have also conducted human rights assessments in ten high-risk markets inrights reviews or

our international tobacco business. A further 12 high risk markets were subject to a humanimpactrights self-assessment questionnaire.

assessments

412-2
Employeetraining on
human rights
policies orprocedures

Respecting human rights

GRI indicator

Disclosure

412-3
Total number
and percentage
of significant
investment
agreements andcontracts that
include human

In 2018, we implemented a formal process for 100% of all significant investment
agreements and new acquisitions covering human rights, by updating our Business
Development Risk Assessment Protocol to include pre-acquisition human rights screening.

rights clauses orthat underwent
human rights
screening

Local Communities

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
Improving our social impact
103-3
Management
approach:
Evaluation of the
management
approach

413-1

Basis of Reporting

Percentage of
operations with

Corporate community investment programs:

implemented

We have corporate community investment projects implemented in 88% of the countries

local community

where we operate. There are 66 countries in which we have corporate community

engagement,

investment projects.

impactassessments,

ARISE and Grower Support Programs (GSPs):

and development

In addition to our corporate community investment programs, we also have ARISE and GSPs

programs

in Brazil, Malawi, Tanzania, and Zambia.

Supplier Social Assessment

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management
approach:
Evaluation of the
management
approach

414-1

Building sustainable supply chains

Percentage of
new suppliers
that werescreened usingsocial criteria (orprovide astatement
describing futureplans)

414-2
Negative social
impacts in the
supply chain andactions taken)

Public Policy

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management

Optimizing the regulatory environment

approach and its
components

103-3
Management
approach:
Evaluation of the

Optimizing the regulatory environment

management
approach

415-1
Total value of

In compliance with Political Funds Control Laws in Japan, JT refrains from making politicalpolitical

contributions. None of JT’s subsidiaries made political contributions in any jurisdiction incontributions by

2020, except a non-tobacco subsidiary in Japan, which made a political contribution thatcountry andamounted to low-single-digit million Yen, at its own discretion, in compliance with allrecipient/benefici

relevant Japanese laws.

ary

Customer Health and Safety

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

Exceeding expectations with products and services
Pharmaceuticals

103-3

Processed foodManagement
approach:
Evaluation of the
management
approach

416-1
Percentage ofsignificant
product andservice
categories forwhich health andsafety impacts
are assessed for
improvement

Exceeding expectations with products and services
Pharmaceuticals
Processed food
Health and safety impacts in our tobacco business, pharmaceutical business, andprocessed food business are fully (100%) assessed for improvement, with the exception ofsome of our most recent tobacco business acquisitions, where assessments are ongoing.

GRI indicator

Disclosure

416-2
Total number ofincidents of noncompliance withregulations andvoluntary codes
concerning thehealth and safety
impacts ofproducts andDuring 2020, there were no incidents of non-compliance with regulations or voluntary codes
concerning the health and safety impacts of products and services during their life cyclethat resulted in a significant fine for the JT Group, and no such incidents that resulted in a
penalty, or warning, with material impact for sustainability, taking into account the size of
the JT Group.

services during
their life cycle, by
type ofoutcomes

Marketing and Labeling

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its

TobaccoPharmaceuticals
Processed foodcomponents

103-3
Management
approach:
Evaluation of the
management

TobaccoPharmaceuticals
Processed foodapproach

417-2
Total number ofincidents of noncompliance withregulations
and/or voluntary
codes
concerning
product andservice
information andlabeling

During 2020, there were no incidents of non-compliance with regulations or voluntary codes
concerning product and service information, or labeling that resulted in a significant fine for
the JT Group, and no such incidents that resulted in a penalty, or warning, with material
impact for sustainability, taking into account the size of the JT Group. No issues were foundagainst our voluntary code, our Global Marketing Principles.

GRI indicator

Disclosure

417-3
Total number ofincidents of noncompliance withregulations andvoluntary codes
concerningmarketingcommunications,
includingadvertising,

During 2020, there were no incidents of non-compliance with regulations or voluntary codes
concerning marketing communications, including advertising, promotion and sponsorshipthat resulted in a significant fine for the JT Group, and no such incidents that resulted in a
penalty or warning with material impact for sustainability, taking into account the size of the
JT Group. No issues were found against our voluntary code, our Global Marketing
Principles.

promotion, andsponsorship, by
type ofoutcomes

Socioeconomic ComplianceGRI indicator

Disclosure

103-1
Management
approach:
Explanation of
the material
topic and its

JT Group Materiality
Integrated Report FY2020:>Good governance and business standards p.86~103

boundary

103-2
Management
approach: The
management
approach and its
components

Our Codes of Conduct
Integrated Report FY2020:

103-3>Good governance and business standards p.86~103

Management
approach:
Evaluation of the
management
approach

419-1
Significant finesand nonmonetary
sanctions for

During 2020, there were no significant fines or non-monetary sanctions for non-compliancenon-compliancewith laws and/or regulations in the social and economic area.

with laws and/or
regulations in thesocial andeconomic area

SASB Standard - Tobacco

Public HealthCodeTopics & Accounting Metrics

Our reporting2020 Full Year Earnings Report：
For revenue of heated tobacco
products：■(RRP) performance”, Analysis of(1) Gross revenue and (2) revenue net of
FB-TB-260a.1“Core revenue and Adjusted

excise taxes from (a) non-tobacco

operating profit (p10)

nicotine products and (b) heated tobacco
products

Analysis of Reduced-Risk Products■

Tobacco Business Data, JapaneseDomestic Tobacco Business: 4.
Results of Reduced Risk Products
and 5. Breakdown of financial
results (p30)

JT Global Web ‘Reduced-Risk Products
FB-TB-260a.2

Discussion on the process to assess risks(RRP): Exceeding expectations withand opportunities associated withproduct and services“tobacco harm reduction” products
JT Science.com

Marketing Practices

Code

Topics & Accounting Metrics

Our reporting

GRI Standard, Topic Specific Standards,
Total amount of monetary losses as a
FB-TB-270a.1

417-3:

result of legal proceedings associatedwith marketing, labeling, and/or

Notes to the Consolidated Financial

advertising practices

Statement, Contingencies, Contingent
Liabilities (p169-171)

JT Global Web:■

Our tobacco principles■

Global Tobacco Marketing

Description of the company’s marketing
policy and relevant positions on Articles
FB-TB-270a.2

11 and 13 of the World HealthPrinciples

Organization Framework Convention on
Tobacco Control (WHO FCTC)■

Our view on regualtion

FY2020 Integrated Report: Regulation and
key laws (P54)

Code

Activity metric

Our reporting2020 Full Year Earnings Reportfor asummary of cigarette sales volumes ofinternational tobacco business (p5)
Combustible tobacco product sales
FB-TB-000.A

volume: (1) cigarette, (2) cigar, and (3)other smoked tobacco products32020 Full Year Earnings Reportfor asummary of cigarette sales volumes ofJapanese domestic tobacco
business(p10)
FY2020 Integrated Report: P38, 42

FB-TB-000.B

Non-combustible product sales volume:2020 Full Year Earnings Report(1) traditional smokeless tobacco, (2)summary of Reduced-Risk Products sales

non-tobacco nicotine products, (3) heatedvolume in our Japanese domestic

tobacco products, and (4) nicotine

tobacco business (p10)4replacement therapy products

FY2020 Integrated Report: P38, 42

for a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.