Approaches to Protecting the Global Environment

JT Group Environmental Management

JT Group Environmental Management

Approaches to Preventing Global
Warming

global, the JT Global Environment Charter was upgraded to

JT Group Environment Charter

Approaches to Creating a RecyclingBased Society
Approaches to Conserving Biodiversity
Other Approaches
Environmental Communication

the “JT Group Environment Charter” in March 2004, which

The JT Group gives the highest priority to conserving thewas revised again in May 2010, with biodiversity issues

global environment.

incorporated. The JT Group will seek to operate in harmony

JT established the “JT Global Environment Charter” inwith the environment in all countries and regions in which

May 1995 and has been striving to conserve the global

it operates.

environment. As JT’s business began to diversify and go

Appropriate Manufacturing Process
and Consumer Services

Environmental Impact of the JT Group’s
Business and Approaches to Reduce It

Approaches to Protecting the Global
Environment (Overseas)
Supply Chain Management

JT Group Environment Charter
We seek to operate in harmony with the environment
in an effort to pass a sound and rich environment on to
future generations.

Basic Principle
The mission of the JT Group is to create, develop and nurture its unique brands to win consumer trust, while
understanding and respecting the environment, and the diversity of societies and individuals.
We, will leave a healthy and productive environment to future generations, and have an active involvement
in environmental and biodiversity issues.
Based on the following policy, we continue to act as a good neighbor with local communities in all countries
environment.

Strengthening of
the Business Foundation

Focusing on Reducing Greenhouse Gas Emissions through the Value Chain

and regions where we operate, and strive to bring about harmony between our corporate activities and the

JT Group Environmental Policy
Giving the highest priority to conserving the global envi-

ing and Reporting Standard of the Greenhouse Gas Proto-ronment, the JT Group is striving to prevent global warm-col. While the JT Group has been keeping track of green-

ing and optimize the use of natural resources, while seek-

house gas emissions based on life-cycle assessments

We will continually improve our environmental management system to enhance our environmental
performance.

ing to operate in harmony with environment in all countries(LCA), the scope of monitoring was expanded in FY 2011 toand regions in which it operates.

cover the entire value chain based on Scope 3.

Expanding the scope of environmental management to

It is essential that the JT Group reviews its environmental

cover all consolidated subsidiaries worldwide, the JT

impact, thereby keeping pace with changes in society andGroup Environment Action Plan (2009–2012) is designed tothe business environment and examining its responsibili-

further reduce the environmental impact of the JT Group’s

ties from a long-term perspective. The JT Group, therefore,

We will continually strive to reduce environmental impact in the process of product development andbusiness, setting greenhouse gas emissions, water con-will continue to make a concerted effort to create a low-

services, while also taking into account the aspect of the biodiversity.

carbon, recycling-based society in an effort to operate inenvironmental indexes. Although some business places

harmony with the environment—a philosophy expressed inwere shut down owing to the Great East Japan Earthquake

the JT Group Environment Charter.

3. Products and Services

4. Process and Supply Chain
We will strive to reduce the environmental impact and optimize the use of natural resources at all stagesof our activities, while also taking into account the aspect of the biodiversity, from procurement of raw
understand our Charter.

with the shortage of electricity, such as changing the temperature setting of air conditioners, reducing lighting and

5. Environmental Education

introducing energy-efficient LED lighting—which contrib-

We will develop a culture of environmental awareness through education and training; and encouraging

uted to reducing both greenhouse gas emissions and elecOn the other hand, social requirements for companies are

6. Environmental Communication

growing and diversifying as the global environmental prob-

We will make an appropriate disclosure of our environmental performance and keep good relationships

lem becomes increasingly critical. In October 2011, theWorld Resources Institute (WRI) and the World Business

Hideki Miyazaki

Council for Sustainable Development (WBCSD) jointly

Executive Deputy President
Assistant to CEO in CSR

with our stakeholders through active communication.
Revised in May 2010

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

employees to take personal responsibility for their actions for creating a better environment.

tricity consumption.

CSR Report 2012

We will comply with every environmental law in all countries and regions where we operate.

materials and manufacturing, through to sales and distribution. We will also encourage suppliers totoward the goals, for example, adopted measures to deal

announced the Corporate Value Chain (Scope 3) Account-

2. ComplianceApproaches to Protecting
the Global Environment

sumption, waste generation, and waste recycling as major

on March 11, 2011, the JT Group is making steady progress31

1. Management System

32

Approaches to Protecting
the Global Environment

efforts underway to achieve goals for reducing its environmental impact.

Development of Human Resources forEnvironmental Management Systems

Based on the JT Group Environmental Action Plan (2009-

As part of a program to save electricity, for example, elec-

The JT Group is developing human resources to drive envi-

2012), the JT Group sets targets for major environmental

tricity consumption in each area was centrally monitored inronmental management, with in-house programs in place

Environmental Auditing by the Operational Review
and Business Assurance Divisionindexes concerning greenhouse gas emissions, water con-the summer of 2011, while other programs are in place toto educate newly appointed environmental managers on

While establishments certified by ISO 14001 and those operat-

sumption, waste generation, and waste recycling, with

reduce water consumption, segregate waste materials, andISO 14001, environmental laws and regulations as well as

ing ISO 14001-conforming environmental management sys-advance waste recycling.

tems conduct internal audits based on ISO 14001, the Opera-

internal auditors, all designed to provide them with hands-

tional Review and Business Assurance Division conducts ad-

Objectiveon knowledge of environmental management. For exam-

ditional environmental audits at selected establishments of JT

Reduced by 10.9% below FY 2007 levels

ple, about 100 employees from across Japan participated inGroup companies, taking into account changes in the busi-

Reduce emissions from tobacco product factories per million cigarettes by 11% below FY 2007 levels in FY 2012 Reduced by 7.2% below FY 2007 levels

a program to learn the specifics of the Waste Management

ness environment and the number of years since the last au-

Reduce by 50% below FY 1995 levels in FY 2012

Reduced by 54.6% below FY 1995 levels

and Public Cleansing Act, which was revised in FY 2011.

dits. They are designed to continuously improve the JT

Reduce emissions from tobacco product factories per million cigarettes by 12% below FY 1995 levels in FY 2012

Reduced by 12.9% below FY 1995 levels

Scope

Medium-Term Target (2009-2012)

Results (FY 2011)

Greenhousegasemissions

JT GroupJT

Water
consumption

JT Group

Reduce by 12% below FY 2007 levels in FY 2012

Reduced by 27.2% below FY 2007 levels

JT

Reduce by 70% below FY 1995 levels in FY 2012

Reduced by 74.5% below FY 1995 levels

Wastegeneration

JT Group

Reduce by 15% below FY 2007 levels in FY 2012

Reduced by 18.8% below FY 2007 levels

JT

Reduce by 35% below FY 1995 levels in FY 2012

Reduced by 24.6% below FY 1995 levels

Recycling

JT Group

Continue with zero emission* activities at factories

Zero emission was achieved at 23 factories* Recycling rate with over 99.5%

JT Group’s System to Promote
Environmental Management
The executive deputy president, assistant to CEO in CSR,Management Systems Based On
ISO 14001 Standards
The JT Group has an environmental management system

Group’s environmental management, with the division indeTrainings Offered in FY 2011
Description

Title

Numberof trainees

pendent from those engaged in environmental activities objectively reviewing and evaluating the group’s environmental

Training for newly
appointed environmental
managers

Training and education forenvironmental managers

104

Training forenvironmental auditors

Training and education forinternal auditors (theory)

28

Environmental Auditing of Environmental Management Systems

On-site training forenvironmental auditing

Training and education for internal
auditors (practice)11

The Operational Review and Business Assurance Division con-

Training for environmental
information systems

Learning of environmental
information management systems

32

Training for environmental
laws and regulations

Learning of waste material
management

99

conservation programs.

ducted audits in FY 2011 to determine if the JT Group’s environmental management system was implemented on the basis ofsupervises the JT Group’s environmental management asbased on the international environmental standard ISO

an environmental management representative, while the14001. While manufacturing establishments are encour-head of each division, as a divisional environmental man-aged to obtain ISO 14001 certification, non-manufacturing

waste management, some of which were considered unfea-

agement representative, controls environmental manage-

establishments (area sales headquarters, laboratories, andsible. Efforts are underway to solve all the problems identified.

ment of the division and group companies concerned,

distribution centers) have their own ISO 14001-conforming

specified policies and procedures. As a result, four non-compli-

which together comprise the JT Group’s environmental

environmental management systems, and small-scale
establishments, their simplified versions. These systems

Environmental Auditing to Examine Compliance withEnvironmental Laws and Regulations

The CSR Committee monitors developments in the “JTwith different levels are designed to manage environmen-

In FY 2011, the Operational Review and Business Assurance Di-

Group Environmental Action Plan” and environmental

tal impacts according to the nature and scale of operations.

vision teamed up with group companies’ auditing departments

management, while examining specific measures in an

to examine compliance with environmental laws and regulaTraining for environmental laws and regulations

effort to develop the group-wide environmental manage(As of the end of March 2012)

Environmental Management System

ISO 14001 Certification

Operational Review andBusiness Assurance Division

JT

Executive Committee

Environmental Management Representative(Executive Deputy President in Charge of CSR)
Divisional Environmental Management
Representatives (Division Heads)

CSR CommitteeGroup
Companies
CSR Division

Departments
Factories (JT)The JT Group set the “Green Purchasing Guidelines” toments in accordance with relevant laws and regulations and toencourage the purchase of goods that have less environ-

report on changes in septic tank supervisors in accordance withJapan Tobacco International (27 group companies), EasternJapan Plant Service, Central Japan Plant Service, WesternJapan Plant Service, Kyushu Plant Service, JT Engineering,
Japan Filter Technology (3 factories), Fuji Flavor, JT Logistics(2 distribution centers) Torii Pharmaceutical (1 plant), Japan
Beverage Group (12 companies), TableMark (1 factory),
Katokichi Suisan (2 factories), Hokkaido Katokichi (2factories), Uwonuma Rice, Iipingshang Foods Corporation,
Sunburg, Nihon Shokuzai Kako, KS Frozen Foods (1 factory),
Thai Foods International, Toranomon Energy Service

mental impact, with each group company purchasing

the Purification Tank Act. All the problems identified have been

goods from the online catalogue on the intranet. Thesesolved. In addition, group-wide efforts are underway to solve

Complying with ISO 14001

with suppliers. The domestic tobacco business, for38 establishments(the headquarters, area sales headquarters, laboratories)

example, procures raw materials according to the “Green

Internal Environmental Audit

JT
Environmental
Audit

TS Network, JT Logistics, JT BeverageGroup
Companies

Simplified Environmental Management System
JT A-StarCSR Report 2012

non-compliances in which the group’s other establishments are

office furniture, office automation equipment, vehicles,

involved by sharing information among all parties concerned.

etc.) in FY 2011, while JT’s green purchasing rate stood at
60.7% in value terms.
At the same time, the JT Group is driving an environment-

Procurement Standards,” which involves helping suppliers
establish their environmental management systems. As aresult, 84.5% of them started practicing environmental
management in FY 2011.

Establishments Audited in FY 2011
JT Tokai Factory, Fuji Flavor, TableMark Yamamoto Factory, Katokichi
Foodlec, Koyo Foods

Relevant Laws and Regulations
Act on the Improvement of Pollution Prevention Systems in Designated Factories, Factory Location Act, Act on the Rational Use of Energy, Waste Management and Public Cleansing Act, Air Pollution Control Act, Offensive Odor
Control Act, Noise Regulation Act, Vibration Regulation Act, Water Pollution
Control Act, Purification Tank Act, Sewerage Act, Act on Confirmation, etc.
of Release Amounts of Specific Chemical Substances in the Environment
and Promotion of Improvements to the Management Thereof, Fire Service
Act, High Pressure Gas Safety Act

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

Non-Manufacturing Establishments (JT Group)

guidelines applied to a total of 1,024 items (office supplies,

conscious procurement of raw materials in partnership

Headquarters (JT)Laboratories (JT)As a result, nine non-compliances were identified, including
failure to complete outsourced waste disposal service agree-

14 establishments (factories)

Area Sales HQ and Regional Leaf Tobacco HQ (JT)

Manufacturing Establishments (JT Group)

Measures in Procurement

tions at the five establishments listed below.
Approaches to Protecting
the Global Environment

Status of the JT Group’s Environmental Management

President and CEO

Strengthening of
the Business Foundation

ances were identified, including the JT Group’s regulations on

management.

ment.

Supply Chain Management

those on environmental system management and to train

Environmental Impact Reduction Targets (2009-2012)
Reduce by 10% below FY 2007 levels in FY 201233

Environmental Auditing
Appropriate Manufacturing Process
and Consumer Services

Developments in the JT Group
Environmental Action Plan (2009–2012)34

Approaches to Protecting
the Global Environment

Environmental Impact of the JT Group’s Business and Approaches to Reduce It (Domestic)□ Energy

Conversion factor, based on the Law Regarding
the Rationalization of Energy Use□ Greenhouse gases
Conversion factor, based on the Law Concerning
the Promotion of the Measures to Cope with
Global Warming

and consumption all have an impact on the environment. The JT Group, therefore,
has a system in place to monitor and reduce the environmental impact.

INPUT□ NOx (nitrogen oxides)

Based on the Environmental Activity Evaluation Program□ SOx (sulfur oxides)

Emissions are calculated, with their amount converted into SOx, based on the sulfur content
and density of the fuel used as well as on the efficiency of desulphurization equipment.

OUTPUT

Packaging materials

93,600 t

Recycled packaging materials

3,400 t

Waste

Paper
Corrugated cardboard
Plastic
Others42,900 t
35,200 t
10,900 t
4,600 tPaper
Corrugated cardboard
Plastic
Others20 t
1,560 t1,170 t
650 t

Amount generated
Volume of recycled
Amount of landfill

42,000 t
40,800 t
300 t

Recycling rate

Water

5,010,700 m3

Water effluent

Industrial water
Tap water
Ground water
Others621,400 m3
1,031,600 m3
3,356,300 m3
1,400 m3

Amount of effluent
BOD
COD

6,879.9 TJ

Copy / OA paper

Purchased electricity
Gas
Heavy oil and light oil
Vehicle fuelOthers4,379.6 TJ
872.3 TJ
976.0 TJ
633.2 TJ
18.8 TJ

Copy / OA paper

Recycled water 62,500 m3
556.4 tSales promotion tools

3,300 tPaper
Plastic

2,500 t
800 t

97.1%

3,159,500 m3
179.9 t13.2 tGreenhouse gases

334,600 t-CO2

Amount of packaging materials disposed of 56,100 t

CO2
Others

333,900 t-CO2
700 t-CO2

Paper
Plastic
Others

Impact on the air environment

379.1 tSOx
NOx

204.0 t175.1 t47,000 t
4,100 t5,000 tEstimate based on sales results

Strengthening of
the Business Foundation

EnergySupply Chain Management272,200 t

Raw materials (agricultural products, etc.) 185,400 t
Materials (paper, etc.)
86,800 t

Materials

Appropriate Manufacturing Process
and Consumer Services【Calculation of Environmental Load】

Operations such as raw material procurement, manufacturing, transportation, sales,

Scope: 36 domestic JT Group companies Period: April 2011 to March 2012

Simplification and Reductionof Packaging Materials

Optimization of Transportation

A project was launched in FY 2011 at JT’s factories to visu-

The JT Group is reducing the weight

The JT Group, which is advancing modal shift and increas-

Japan Beverage, a beverage vending machine operator,

alize energy consumption by working group and equip-of caps and PET bottles for beverages.

ing the loading rate of trucks to reduce greenhouse gas

recycles used beverage containers and disposes of themment, while the data obtained are used for monitoring and

A 280-ml PET bottle for the green tea

emissions, was certified by the Ministry of Land, Infrastruc-properly. Recycle Plaza JB, whichanalysis purposes to further reduce energy consumption.

“Tsujiri”, for example, has a special

ture and Transport as an “Eco Rail Mark Company” for its

started operations in 2003, is an

Specific measures include introduction of heat-pump hot-configuration, resulting in about 17%

aggressive approaches to switchingintermediate disposal facility equip-

water systems and high-efficiency turbo freezers. In addi-

reduction in the use of plastics. Like-to environmentally friendly rail fre-

ped with an advanced recycling sys-tion, programs are underway at offices to optimize thewise, “Mild Seven Style Plus series”,

ight transportation. The modal shifttem. Taking care of the entire con-Previous bottle

New bottle

which hit the market in January 2012, uses about 20% lessrate stood at 58.1% in FY 2011, andtainerpaper and about 28% less plastics compared to conven-

the loading rate of 10-ton trucks

expanding its recycling system. In

fans, and toilet water heat-tional packaging.

from factories to distribution cen-

addition, the JB Recycle Network,ters, at 99.7% (on a pallet basis).
* The percentage of railroad and marine transportation of tobacco materials
with a hauling distance of over 500 km

expected to further reduceenergy consumption.

itisand distribution companies nationwide, is in place to further drive recycling of resources.

“Visualization” through integrated monitoring

CSR Report 2012

process,

which consists of over 180 recycling
Eco Rail Markties are also underway, andrecycling

The top sides of packages

Segregation process of used beveragecontainers at a recycling facility

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

operations of air conditioners, air supply and exhausters. Improvements of facili-

35

Creation of Recycling Systems

Approaches to Protecting
the Global Environment

Energy-Saving Measures36

Approaches to Protecting
the Global Environment

Approaches to Preventing Global Warming (Domestic)

Introduction of Fuel-Efficient Vehicles

The JT Group is striving to reduce greenhouse gas emis-

The JT Group’s fleet of sales vehicles and delivery trucks is

Various approaches were adopted in FY 2011 to deal with aPart of manufacturing at factories in the areas served by thesions, which cause global warming.

switching to their low-emission, fuel-efficient counterparts

power shortage following the Great East Japan Earthquake.

Tokyo Electric Power and Tohoku Electric Power was tem-Approaches to Saving Electricity

in an effort to reduce greenhouse gas emissions from its

The JT Group, therefore, set up a team within the JT head-porarily relocated to Kyushu to reduce the maximum elec-

operations such as sales and distribution. They account forquarters to reduce the maximum electricity demand duringtricity demand in summer. Other power-saving measures

Likewise, the JT Group companies in Japan reduced its CO2

59.1% of the entire fleet of vehicles (or 4,785 units out ofsummer (between July and September) by 15% year on

include shutdown of some manufacturing equipment andemissions by 16,500 tons or 4.7% from FY 2010 levels in

8,095) as of the end of March 2012.

year. Not only establishments operating in the areas served

air conditioning systems, postponement of maintenance at

FY2011.

In addition, to raise awareness of eco-driving among em-

by Tokyo Electric Power and Tohoku Electric Power, but also

facilities, optimization of opera-

Factory equipment such as boilers, compressors, and air

ployees, efforts including training programs, putting stick-those operating across Japan, made a concerted effort totion hours, switch to operations

conditioners are being replaced with energy-efficient onesers on vehicles, and putting up signboards at parking lots

save electricity. At the same time, electricity consumption

on holidays, and use of inter-to continuously reduce greenhouse gas emissions. In FY

are underway.

was closely monitored, with power saving at each estab-nally generated electricity andlishment updated and posted on the intranet to raise em-

storage batteries, all designed

ployees’ awareness of saving electricity.

to make effective use of electric-

As a result, business establishments in the areas served by

ity and reduce electricity con-the Tokyo Electric Power with a contract demand of over

sumption during peak hours.

launched the “CO2 Reduction Project,” while stepping up
efforts to share information between them, examine proac-

Percentage of Fuel-Efficient Vehicles
Total number of units
The percentage of fuel-efficient vehicles (%)
100(Number of units)

tive measures, and evaluate their effectiveness. Similar
8,000

programs are underway at laboratories and offices.

8,182

7,858

6,000

51.1
Trends in Greenhouse Gas Emissions*JT
JT Group companies in Japan(1,000 t-CO2)
500
400

407.5

380.6

200

247.6

225.8

351.0

192.9

100
0

2008

2009

2010

59.1

60

40.7
40
20

2008

2009

2010

2011

(FY)

0

334.6

Use of Renewable Energy

2011

(FY)

Food
Business

Energy-Saving Measures at Offices

Electric Power, by 20–25%, both being well above a mini-

A variety of energy-saving measures were adopted, such as

mum of 15% required by the Electricity Business Act. Like-

switch to LED lighting, adjustment of the air temperature

wise, establishments in the areas served by Kansai Electric

control, optimization of elevator operations and ceilingPower reduced the maximum electricity demand by 12-

lighting, and introduction of a

17% year on year, surpassing its voluntary 10% goal.

task-ambient lighting system.

Other establishments with a contract demand of below 500

In addition, a COOL BIZ pro-kW, to which the Electricity Business Act does not apply,gram was implemented fromalso implemented electricity-saving measures; those in the

May to October to reduce en-areas served by Tokyo Electric Power, Tohoku Electric

ergy consumption of air condi-

Power, and Kansai Electric Power achieved a 20–24%, 14-tioners.

19%, and 12–24% reduction, respectively, all overachieving

greenhouse gas emissions.

their voluntary goals.

* Task-ambient lighting refers to designs in which a modest general lighting
system is supplemented with local task luminaries.

TobaccoBusiness
334,600 t-CO2

For example, solar panels with a total output of about

In addition to these power-saving
efforts, all the establishments partici-

The JT Group is striving to reduce power consumption of

the JT Tokai Factory and the Nagoya branch of TS Network,pated in the “Household Power Sav-

cigarette and beverage vending machines. Specific mea-a tobacco product distributor—which translates into a

ing Declaration,” a power-savingsures include introduction of LED lighting, optimization of

reduction of about 11 tons of CO 2 emissions per year, com-educational program launched bypared to purchasing electricity

the Ministry of Economy, Trade andfrom power companies. This

Industry.

Energy-Saving Measures for Vending Machines

Power-saving status is
updated and posted on
the intranet

off for another few hours, as were vending machine refrig-with an area of about four foot-(%)
Solar panels at the Tokai Factory

30

power lighting.

25

The Nagoya branch of TS Net-20

work is also working on rooftop

15

32
29

28

25
21

20
15% reduction year on year

10

Solar panels and rooftop gardening
at TS Network

0▶Heat Pump System
Efficient use of heat for the cold and hot
compartments to reduce power consumption▶Peak Cut System

5island effect.

▶Energy-Saving Campaign Sticker“Operating with EnergySaving Mode” sticker

35

generated is used primarily togardening to mitigate the heat
* Scope: 36 domestic JT Group companiesThose in the areas served by the Tokyo Electric Power
Those in the areas served by the Tohoku Electric Powererators in the summer of 2011.

Jul.

Aug.

Sep.

The peak-cut function, where the compressor
is shut down during peak load hours insummer, to save power

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

5.2%

lighting hours, and switch to beverage vending machines
equipped with heat pump and peak cut systems. With thecooperation of shop owners, moreover, lighting was turned

Year-on-year Comparison of Power Saving in the Summer of 2011
(Establishments with Contract Demand of over 500 kW)

absorbed annually by the forestball pitches, while the electricity

57.8%

Task-ambient lighting system

35,000 kWh per year are installed on the rooftops of bothamount is equivalent to that
36.0%

CSR Report 2012

32% year on year, and those in the areas served by Tohoku

Approaches to Protecting
the Global Environment

Others 1.0%

500 kW reduced the maximum electricity demand by 28-

The JT Group is utilizing renewable energy to reduce

173.7

Greenhouse Gas Emissions by Business (FY 2011)*

PharmaceuticalBusiness

57.2

80

2,000
0

300

8,095

Strengthening of
the Business Foundation

4,000

8,030

Self-power generator at thefrozen-food manufacturer Sunburg

Supply Chain Management

In fact, JT reduced its CO2 emissions by 19,200 tons fromFY 2010 levels (or by 54.6% from FY 1995 levels) in FY 2011.

2011, moreover, factory environmental managers jointly

37

Energy-Saving Measures at Manufacturing Establishments

Appropriate Manufacturing Process
and Consumer Services

Approaches to Reducing Greenhouse
Gas Emissions

38

Approaches to Protecting
the Global Environment

Approaches to Creating a Recycling-Based Society (Domestic)

Approaches to Conserving Biodiversity

Environmental Communication

The JT Group gives due consideration to biodiversity while

The JT Group is taking measures to save and reuse water,

The JT Group is practicing 3R (Reduce, Reuse, and Recycle)

biodiversity conservation laid down in the “JT Group Envi-

The JB Environment Network, which was established bywith efforts underway to optimize the use of water at facto-

at home and abroad.

ronment Charter.” For example, a year-long ecological field

the vending machine operator Japan Beverage and con-preserving its forests in accordance with the principle on

JT’s waste generation decreased by 1,550 tons year on

survey that started in July 2010 at JT Forest Shigetomi (JT’ssists of beverage manufacturers, won the “2011 Reduce,year (or 24.6% from FY 1995 levels) in FY 2011. The JT

forest in Aira City, Kagoshima Prefecture) was completed,

Reuse, and Recycle Contributor Award” from the Minister

the amount of water used and required, the results of whichGroup’s waste generation (domestic) was reduced by 670

the results of which were reported to Kagoshima Prefec-of Agriculture, Forestry and Fisheries for its contribution toare examined to optimize the amount of flow and reduce

tons (or 1.6%) year on year, while about 6,730 tons of wasteture, Aira City, local universities, and stakeholders such as

beverage container recycling and 3R educational pro-the use of water. Other proactive measures include review

materials were generated owing to the Great East Japanthe owners of neighboring land. On the basis of opinions

grams. This annual award, which is sponsored by the 3Rof water usage and improvement of equipment and facili-

Earthquake.

and suggestions provided by these stakeholders, the JT

Suishin Kyogikai (3R Promotion Council), recognizes indi-

Group will continue to work on forest conservation in coop-

viduals and groups for their continuing achievements in 3R

eration with local communities.

to boost the creation of a recycling-based society.

ties. Laboratories and offices are also working on water-

Tobacco factories continue to reuse packing materials,

saving programs, such as introduction of water-savingwith 230 tons of packing materials for raw material reused

automatic faucets, saving of toilet flushing water, and use

in FY 2011. As for recycling, each establishment stepped upof recycled water.

efforts to segregate waste materials and review services ofIn fact, JT’s water usage decreased by 195,900 m3 year on

waste disposal companies to increase the waste recycling

year (or 74.5% from FY 1995 levels), and the JT Group’s wa-

Related pages

p13-14

In addition to recycling used beverage containers, mean-

Feature 2: From Forest Conservation and Development
to Co-habitation with Forests

while, Recycle Plaza JB offers

rate. As a result, 23 factories have achieved zero emission

gives lectures at elementary

ter usage (domestic), by 965,700 m3 or 16.2% year on year,with a recycling rate of over 99.5%. The amount of waste

both in FY 2011.

materials, meanwhile, includes those sold or transferred as

Other Approaches

and junior high schools, pro-resources.

facility tours for visitors andSupply Chain Management

ries. Specifically, flow meters installed at each production
line visualize water usage and enable detailed analysis ofAppropriate Manufacturing Process
and Consumer Services

JB Environment Network Won the “Reduce,
Reuse, and Recycle Contributor Award”

Reduce Waste Generation and Promote Recycling

Approaches to Reducing Water Usageviding them with opportunities to learn about environmental conservation.

8,000

6,000

JT’s amount of waste
JT Group’s amount of waste (domestic)JT
JT Group companies in Japan(1,000 m3)(1,000 t )
50

6,579

6,148

40

5,976
5,011

4,000

97.8
97.6

1,486

0

2008

2009

2010

2011 (FY)

(%)
100
95

42.6

42.0

90

20

85
25.3

25.3

23.7

10

80

0

75

2008

2009

2010

2011 (FY)

Waste Generation by Business (FY 2011)*

Water Usage by Business (FY 2011)*

Others 0.7%

TobaccoBusiness

Food
Business

Food
Business

31.1%

42,000 t

5,011,000 m

the governor of Saitama Pre-accordance with the “Chemical Substance Management

fecture for its recycling tech-

Guidelines,” which are in accordance with 18 relevant laws

nologyand regulations, to prevent pollution around each estab-

performance and was desig-

2.5%
PharmaceuticalBusiness* Scope: 36 domestic JT Group companies

39

CSR Report 2012

1.8%
PharmaceuticalBusiness* Scope: 36 domestic JT Group companies

65.4%

and

environmental

lishment and ensure the safety of employees. Chemical

nated as a “Sainokuni Fac-

substances used at laboratories and factories are also man-

tory,” a partner for creating aaged properly, with the amount of purchase, emissions,prosperous Sainokuni.

At Reduce, Reuse, and Recycle
Contributor Award Ceremony

and transfer closely monitored.
The PRTR Law, meanwhile, applied to 25 establishments
as of the end of March 2012.

Communicating with Local Communities
The JT Group participates in a variety of environmental

Proper Management of PCB Wastes

events and symposiums to provide local communities withinformation on its environmental conservation activities
through exhibitions, etc.

ballasts, etc.) are properly stored and managed in accor-

In FY 2011, educational programs on forest conservation

dance with the relevant laws and regulations. A total of 86

were held across the country in connection with the UN

PCB containing units were detoxified in FY 2011.

International Year of Forests. At the exhibition “Corporate
and Eco-action 2011,” sponsored by the Minato Ward,

Soil Pollution Countermeasures

Tokyo, the JT Group introduced JT Forest initiative,

JT had completed checking records of the soil of its prop-

which started in 2005 on

erty in FY 2007. Soil surveys were conducted as needed,

the basis of the needs ofwhile any chemical substances, whose concentrations

local communities, and ex-exceed the levels established in the Soil Contamination

changed opinions with visi-

Countermeasures Law, were properly treated to purify thetors and lecturers.

soil in coordination with the authorities.

Introducing “JT Forest” at the exhibition“Corporate and Eco-action 2011”

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

66.1%

TobaccoBusiness

32.1%

3

Recycle Plaza JB

Plaza JB was recognized by

The JT Group manages the chemical substances it uses in

PCB wastes (transformers, capacitors, fluorescent lamp
Others 0.3%

In September 2011, Recycle

Approaches to Protecting
the Global Environment

1,682

41.4

97.9 97.1

30

25.9

1,977

95.8

96.8

41.6

2,000

2,139

98.0

97.4

Recycling rate
Recycling rate

Proper Management of Chemical Substances

Strengthening of
the Business Foundation

Trends in Waste Generation and Recycling Rate*

Trends in Water Usage Amount*40

Approaches to Protecting
the Global Environment

Approaches to Protecting the Global Environment (Overseas)

sumption is the installation of on-site combined heat andActivities in the Food Business (Overseas)

CO2 Emissions / million cigarettes

power (CHP) at several of our factories. Because of the way

Japan Tobacco International (JTI) controls the production,in which energy is accounted, energy consumption appears

marketing and sales of JT Group cigarette brands in more

to have increased. However, CO2 emissions have reduced(t/mill.cigs)
0.7

Thai Foods International Shares Natural Blessings
with Local Communities

than 120 countries around the world and has more than 25

largely due to CHP installation. The long-term aim of JTI is

0.6

The JT Group Company Thai Foods International Co., Ltd.,

manufacturing operations in 22 different countries. JTI is ato return to year-on-year energy reduction. In order to

0.5

which produces yeast extracts and other natural season-

truly international and multicultural business, employing

achieve this, a program of optimizing the efficiency of fac-

0.4

more than 24,000 people around the world.

tories is underway, supported by significant investments of

0.3
0.2

USD 27 million over the next three years.

ings, has a system in place to recycle natural blessings,
0.695

0.457

0.456

0.497

0.478

such as biomass-fueled boilers; rice chaff originating fromlocal rice mills are used as

JTI recognizes the importance of a structured approach toSince 2003, JTI has followed a plan to improve EHS perfor-

energy management, and launched as energy manage-

mance. JTI has implemented strong EHS management sys-

ment tool in 2011. This has been implemented in all facto-

tems, set challenging EHS targets annually and executedries.

programs that provide performance improvement year-

Carbon reduction is a key objective of the JT Group. JTI

on-year.

has embarked on a Carbon Management Program. The firstIn early 2010, JTI carried out a fundamental review of EHS

step is a systematic quantification of carbon emissions

expectations across the business, covering the Global Leaf

across the entire value chain, from leaf tobacco to end con-5

ing heavy oil, with the re-business, Sales and Marketing operations, manufacturing

sumer. This will enable long-term targets to be set and im-

4

sulting ash reused as a fertilizer for cultivation of rice andoperations and support functions such as Research and De-

provement opportunities to be recognized and acted upon.

3

velopment. The review confirmed that the approach taken

Waste continues to fall, mainly driven by the waste reduc-to drive EHS performance and programs, particularly intion program launched in 2008 to collect and re-use large

manufacturing operations, was successful and should con-tobacco cases within the factories. After significant chang-tinue and strengthen. Significantly, the review also high-es to JTI’s business in recent years with major acquisitions,lighted an expectation and need that EHS programs shoulda survey was completed in 2011 to identify additional op-

be implemented more widely across the business.

portunities for waste reduction, which will now be investi-

As a result of this review, an EHS Plan was developed ingated and implemented where beneficial and practical.

The EHS function was strengthened, and EHS programs
were launched in Sales and Marketing, Research and Development and Global Leaf operations.
proach to the management of EHS performance, as robust
management systems deliver sustainable performance. Allcigarette factories are certified to the international stan-

Installation of the CHP system

Engineers at the Trier Factory, Germany

2009

2010

2011 （FY）

to

producesteam,

which accounted for about
70% of energy consumed in
the factory in 2011. The use

Water Consumption / million cigarettesof rice chaff resulted in a
46,000-ton reduction in CO2(m /mill. cigs)
6
3

2

emissions, compared to us-

other crops.
5.38

2.70

2.65

2.70

2.72

In 2011, moreover, new facilities came on stream to concentrate yeast broth, a byproduct of yeast extract produc-10Thai Foods International Co., Ltd.

tion. While yeast broth, which is rich in essential organic
2003

2008

2009

2010

2011 （FY）

and inorganic substances, has been supplied to nearby
farmers as a fertilizer, its concentrate is more efficient in

Production Waste Generation / million cigarettes(t/mill.cigs)
0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0

dards ISO 14001 and OHSAS 18001. This certification willterms of transportation and usage, and is therefore being
distributed in a wider area for more farmers. This recyclingof yeast broth as an organic fertilizer contributes to reducing the use of chemical fertilizers and CO2 emissions originating from their production.
Thai Foods International will continue to recycle and makeuse of natural blessings, while expanding operations in

0.145

0.106

0.096

0.089

0.083

2003

2008

2009

2010

2011 （FY）

harmony with local communities

now be extended to other parts of the company.
Energy Consumption /million cigarettes

Environmental Performance
Using 2003 as a baseline year, JTI has made significant im-

10,000arettes as a base unit. Between 2003 and 2011, the five envi-

8,000

by 9%. However, looking specifically at 2011, our energy
and water intensity increased, recycling was stable, while
CO2 and waste improved.
One of the key reasons for the increase in energy con-

CSR Report 2012

（%）
80
60

6,000
4,000

Yeast broth concentration facilities

40

8,913

5,957

5,748

6,370

6,595

2003

2008

2009

2010

2011 （FY）

69

74

78

79

2003

2008

2009

2010

78

20

2,000
0

0

2011 （FY）
Recycle yeast broth asan organic fertilizer

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

and water intensity and recycling) improved. CO2 by 31%,
energy by 26%, waste by 43%, water by 49% and recycling

41(MJ/mill. cigs)

provements in environmental performance per million cigronmental key performance indicators (CO2, energy, waste

Production Waste Recycling Rate

Approaches to Protecting
the Global Environment

JTI recognizes the benefit of a strong and disciplined ap-

2008

Strengthening of
the Business Foundation

the second half of 2010 and implementation started in 2011.

fuel
2003

Supply Chain Management

0.1

JTI’s EHS Summary0

Appropriate Manufacturing Process
and Consumer Services

Activities in the International Tobacco Business

42

Environmental Accounting FY2011
Scope: All JT establishments
Period: FY2010 (April 1, 2010 to March 31, 2011), FY2011 (April 1, 2011 to March 31, 2012)

Environmental Conservation Cost

Unit: million yen
Results in FY2010

Results in FY2011

AmountInvested

Amount of
Expenditure

AmountInvested

Amountof
Expenditure

—

656

2,017

405.4

1,822

① Pollution prevention costs

Adoption of LEVs and fuel-efficient vehicles; facility depreciation costs;
maintenance, operation and management of pollution control facilities, etc.

120

555

257

475

Global environmental② preservation costs

Replacement of freezers; facility depreciation costs; maintenance, operation and management of energy-saving facilities, etc.

534

140

148

118

③ Resource circulation costs

PCB waste management; facility depreciation costs;
waste disposal and recycling, etc.

2

1,322

0.4

1,229

(2) Costs of reducing production/service-derived impact upstream or downstream duringresource circulation (upstream/downstream
costs)

Recycling of containers and packaging materials, etc.

—

102

—

79

(3) Environmental preservation costs in management activities (management activity costs)

Environmental audits; environmental education; operation of organizations responsible for environmental management; monitoring and measurement of environmental load; improvement of green space, etc.

—

532

—

511

(4) Environmental preservation costs involved
in R&D (R&D costs)

Survey of the environmental impact of products, etc.

—

20

—

1

(5) Environmental preservation costs involved
in social activities (social activity costs)

Environmental cleaning measures; reforestation and forest conservation activities; contribution to environmental bodies; preparation of the CSR Report, etc.

—

3,912

—

3,383

(6) Costs of dealing with environmental damage

Pollution impact levies; soil pollution survey and remedial measures, etc.

—

1,018

—

81

(7) Other environmental costs

Asbestos survey and remedial measures, etc.

—

49

—

44

656

7,650

405.4

5,921

Category

Key Measures(1) Environmental preservation costs to reduce
production / service-derived environmental
impact in JT’s business areas (business area
costs)Breakdown

Total

Environmental Conservation Benefit
Actual Effects

Item
Amount of electricity purchased

Effect on resources invested
in business activities

Fuel consumption(crude oil equivalent)
Vehicle fuel consumption(crude oil equivalent)

Results in FY2011

Year-On-Year Reduction

1,000kWh

312,972

286,236-26,736kℓ

26,32022,762-3,558

kℓ

3,932

3,989

57

1,000m3

1,682

1,486

-196

SOX emissions*

t

62

57

-5

NOX emissions*

t

99

91

-8

Amount of water used

Effect on environmental impact
and waste producedby business activities

Results in FY2010

Amount of CO2 emitted*

1,000t-CO2

193

174

-19

Amount of waste water*

1,000m3

1,072

951

-121

Amount of waste, etc.

1,000t25

24-1*Actual data at factories

Economic Benefit

Unit: million yen

Actual Effects

Results in FY2010

Results in FY2011

Income from recycling (sale of by-products)

36

86

Cost reduction by saving energy (year-on-year)

182

33

Guidelines for Environmental Accounting
Environmental Conservation Cost

Based on the “Environmental Accounting Guidelines 2005” of the Ministry of the EnvironmentsExpenditure and investment in environmental conservation programs are included.
sFor those partially made in environmental conservation programs (more than 50%), the total amount of investment and depreciation costs are included.
sExpenditures for depreciation of facilities have been recorded under expenditure for the depreciation in the financial statement.

Environmental Conservation Benefit sBenefit is measured as the year-on-year difference of the environmental impact.
Economic Benefit

sBenefits to company's profits as a result of carrying forward with environmental conservation activities.

CSR Report 2012