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

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

Our focus areas
Through long-term partnerships with various stakeholders, we are currently implementing 387
community programs that contribute to the development of inclusive and sustainable societies
across 60 countries. Our offices around the world carry out programs aligned with our JT Group
community investment policy and the following United Nations Sustainable Development Goals(SDGs): Reduced Inequalities (goal 10), Sustainable Cities and Communities (goal 11), Life on Land
(goal 15), and Partnerships for the Goals (goal 17).
Through our programs, we are focusing on three specific issues:
1. Reducing inequalities, e.g., helping underprivileged people gain access to food and education.
2. Improving community resilience in disaster-prone areas, e.g., providing access to clean water.
3. Protecting the environment, e.g., replanting trees with the help of our employees.
We also offer volunteering opportunities, enabling employees to engage with our communities,
develop new skills, and gain a sense of pride and satisfaction.
Global community investment functions help to implement the programs and ensure that they
comply with our strategy and guidelines.

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

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

This is a Group-wide target.

Progress
Since 2015, we have invested 399 million U.S. dollars in our communities, and employees
have volunteered 164,280 hours on company time.

Value of JT Group investments in the community (U.S. dollars)2015 2016 2017 2018 2019 2020 2021

Value of our investments in the74

community

M

Accumulated value of investmentsin the community

2030
target

68M

54M

53M

50M

50M

50M

74

142

197

250

300

349

399

600

M

M

M

M

M

M

M

M

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

Hours volunteered by JT Group employees
2015 2016 2017 2018 2019 2020 2021

*targetNumber of hours volunteered by

13,924,2 21,9 25,4 33,05 19,19 26,39

our employees

97*

92

Accumulated number of hours

13,938,2 60,2 85,6 118,6 137,8 164,2 300,0

volunteered by our employees

9789

1100

28

28

583

Data only available for international tobacco business.

Measurement and management
To measure the social impact of our efforts,
we use the Business for Societal Impact(B4SI)

2030*Framework provided by Corporate

Citizenship. In 2021, we invested 50 million
U.S. dollars (15% charitable donations, 82%community investment, and 3% Commercial
Initiatives) in corporate community
investment in countries where we operate.
We encourage more accurate reporting andmeasurement to ensure all of our programs
deliver social impact according to our policy.

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

98288000

Contributing to our communities

Our initiatives

Reducing inequalities
Our mission is to support diversity ineverything we do. We partner withorganizations that drive social inclusion, andpromote social welfare and access to artsand culture for all.
In 2021, we supported 328 programs related
to reducing inequalities, covering 72% of thecountries where we operate. 14 countries
reported impact data according to theBusiness for Societal Impact (B4SI)
Framework for programs related to 'reducinginequalities'.

Case study

OrchLab: making a difference by making music
Our UK team has joined forces with theworld-renowned London PhilharmonicOrchestra

to bring the joy of creatingmusic to adults with disabilities. This uniqueproject, called OrchLab, is supported bypioneering assistive technology harnessedby Drake Music, experts in music,technology, and disability.
OrchLab offers innovative digital
instruments, bespoke workshops, training
and events, and an interactive website
where participants can watch performances,
enjoy musical activities, and communicate
with other members. The aim of the projectis to enhance participants’ wellbeing throughmusic-making that is truly accessible to all.
OrchLab has worked intensively with 128
disabled adults since it began in 2017,
positively impacting their wellbeing andconfidence. In 2021 we celebrated our first
OrchLab Festival Day, bringing 57
participants together to try out new OrchLab
instruments and share the experience ofmaking music with others.

OrchLab 2021 – Swan Lake

Improving community resilience
Our Company has built expertise in disaster management over the years, due to the environmentallyvulnerable geolocation of Japan. In 2021 we supported a total of 22 programs in 11 countries where
we have business presence, benefitting 163,173 people worldwide.
In our Japanese operations, we support charities that respond to disasters and help rebuild
communities to be more resilient in future. In 2021, we supported 18 organizations and 25,173
beneficiaries in Japan.

Case study

Winds of Change

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

Training rescue dogs and rescue staff■

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

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

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

Emergency goods transportation and support to disaster-stricken areas

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

Protecting the environment
We try to reduce the environmental impact of our operations wherever we can, throughenvironmental programs that benefit both communities and our employees. In 2021, we supported
32 environmental programs in 21 countries where we have a business presence.
Measuring the impact of our actions is important for us to continuously improve our programs. In
2021, six countries reported impact data according to the Business for Societal Impact (B4SI)
methodology for programs related to 'environmental protection'.
In our Japanese operations, we are actively supporting the sustainable maintenance of nine forests.
Employees have the opportunity to volunteer in these forests and help to preserve these precious
natural habitats. In 2021, 365 employees volunteered their time. Many of these employees reported
that volunteering had a significant impact on their behavior towards the environment and their job
satisfaction.

Feedback from employees volunteering
at JT forest:■

90% reported an increase in job
satisfaction through volunteering■

89% reported that volunteering helped
them to gain skills that are useful intheir daily work■

80% would like to change their
behavior and move towards a moresustainable use of natural resources

Other initiatives

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

In a spirit of solidarity between mature and emerging markets, the top 10 markets in the JT Groupset up a fund to help new and developing markets make communities more inclusive and resilient.
Not only does this create a better balance of community investment presence across our Group, it
also gives a significant boost to communities in need of help.
The JTI Global WASH initiative focuses on improving access to safe water and sanitation incommunities that struggle with this issue. Since 2019, local teams have launched four projects aspart of this initiative: one in Mexico, one in Ethiopia, and two in Bangladesh. We are working withinternational organizations that specialize in water- and sanitation-related projects, and we promote
innovative concepts such as water ATMs (automated, solar-powered water-dispensing units thatprovide communities with 24/7 access to safe water).

Case study

Promoting water entrepreneurs and digitalfinancing in Bangladesh

JTI Bangladesh supports the Shujola project. This ground-breaking project is part of our larger JTI
initiative called ‘WASH’ (WAter, Sanitation, and Hygiene), which will provide one million people withaccess to safe drinking water, sanitation, and hygiene in developing countries by 2025.
Based on the idea of ‘ATM’-style machines that dispense fresh and safe drinking water, Shujolaoffers financial and technical assistance to well-established local entrepreneurs who set up safe
drinking water booths. The water points are specifically targeted to India’s ready-made garment(RMG) worker communities. The project aims to educate the communities on safe water and waterborne diseases as well as providing safe water points. Communities were given pre-loaded ATM
cards that would release fresh drinking water. The pre-loaded cards were also a way of introducing
digital financing into low income communities.
We are very pleased with the project achievements. Four operational booths have already reached5,034 people by registering 1,240 RMG workers in residential community households. This has far
exceeded the project target, which was to benefit approximately 500 low-income RMG workers andtheir households. In addition, setting up the booths has generated employment for 40 RMG

residential community members, who are now directly or indirectly employed by the water
entrepreneurs.

Volunteering opportunities
Volunteering brings mutual benefits for employees, our business, and the community. It also enables
our teams to make a positive impact in the communities where they live and work by sharing theirskills and knowledge.
We actively encourage our employees to take part in volunteering activities. We do this by organizing
programs and events, or by providing the necessary resources (funds through corporate matching,employee time, in kind, or employee donations).
In spite of Coronavirus restrictions, our volunteering activities continued throughout 2021, with
9,758 employees worldwide spending 26,398 hours of company time supporting community
programs. Where necessary, we adapted our approach to keep employees and local communities
safe.
Our many volunteering opportunities also support our HR initiative to build employees’ engagement
and skills. In 2021, we conducted surveys for employees who participated in Company volunteering
activities related to “reducing inequalities” (one of the three focus areas of our community
investment program). A total of 1,635 employees reported that these activities had helped them togain skills that were useful in their day jobs, as well as increased job satisfaction and a strongerinterest in volunteering.

Case study

Stepping up for an important cause, together‘Table for Two’ (TFT) is a global initiative to fight food imbalance through a unique meal-sharing
program. First established in Japan in 2007, it partners with corporations, restaurants, schools andother establishments to serve healthy meals. JT has been participating in the TFT program since2010. JT donates the equivalent of one meal to a developing country for every “TFT menu” mealpurchased by employees at JT’s cafeteria in Tokyo.
In light of COVID-19, working from home became the norm for employees in 2020 and 2021, so useof the cafeteria decreased. However, we found a new way to keep the program running, whileencouraging employees to interact with each other and keep fit at the same time.
In both May and October 2021, the Company donated one meal for every 8,000 steps taken perperson per day. In total, 6,224 employees stepped up to the challenge and we were able to donate
1,857,760 Yen to TFT.
As an added benefit, this fun activity also helped to boost team spirit and increase interaction
between colleagues.
Feedback from employees on the ‘Walking challenge program’:■

82%reported that volunteering changed in their behavior such as increased volunteering or being
more vocal advocate of the company.

■

69% reported that volunteering improved their job-related competencies such ascommunications, teamwork or leadership skills.

■

65% reported that volunteering changed their personal impact such as self-confidence, job
satisfaction and pride in the company.

■

We also noticed a significant improvement in employees’ awareness of and attitude towards
volunteering vs. 2020.

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