Human resources

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

TargetWe will be a certified employer of choice every year in at least 60 countries by focusing ontalent management, rewards, and empowerment.

Progress
We were certified as employer of choice in 67 countries (66 with Top Employer and 1 withother local employer certification). In addition, 14 countries hold more than one certification.
Read more about our latest progress on the JT Group's
tobacco business sustainability strategy.

Our approach

The JT Group human resources management
philosophy
We believe that highly skilled and talented
people form the foundation of a company’s
success and contribute to real sustainablegrowth. In light of this, the JT Group
proactively takes steps to secure long-term
engagement and employee satisfaction.

Our employees are assets to the Company, and their skills and spirit are the driving force behind
everything we achieve. We are pleased to be an employer of choice, and our positive workplaceculture and environment help us to attract, retain, and develop talented individuals. We are also
taking further steps to create a diverse and inclusive culture.
To offer all of our employees the best possible experience, we are currently focusing on four areas:

Talentdevelopment
and retention

Talent attraction

Diversity andinclusion

Being aresponsible
employer

Talent development and retention
Today’s business environment is evolving rapidly, and COVID-19 adds additional pressures. It
requires flexibility and the adoption of new skills, such as remote ways of working.
We have implemented various global and regional learning programs. Many of our courses areoffered online, enabling employees to develop new skills even when working from home. We
constantly invest in our employees, including at a managerial level, to ensure they flourish in theircareers.

Our commitment to talent development and retention is reflected in our internal hire rate for the
management positions, which has been above 90% for more than seven years. In 2021, 91.2% of
employees were internally promoted. We also hired many talented people from outside theorganization.
We believe that engaged employees lead to long-term employee retention, higher levels of
productivity, and improved quality of work. Across our Group, the employee turnover rate was 9.9%in 2021.

Agile ways of working
In our international tobacco business, wehave adopted the Agile method. This new
project, known as Agile@JTI, will transformthe way that we attract, develop and retain
our people. It will help us to allocate
resources and direct our efforts towards thepriorities that deliver the greatest value.
The key aims of Agile@JTI are to engage
and empower employees, encourage them tofocus on a fully customer- and consumercentric approach and maximize productivity,
speed and efficiency throughout theCompany. The Agile ways of working also
help employees to overcome recurring
challenges in their work.
After piloting Agile at our Geneva
headquarters in 2020, we began the global
roll-out in 2021. The ambition is thateveryone in JTI will be trained on andembrace Agile ways of working by 2022, andmaster its practice by 2023+.

Learning and Development for all employees at alllevelsAll of our employees can access comprehensive training programs. Fundamental business courses
in giving presentations, writing, or time management are available to those in junior positions. Moreadvanced programs such as task execution, negotiation skills, or leadership are aimed at middlemanagement and senior positions.
In our international tobacco business, all of our employees now have access to 16,000 courses
through the recognized video training provider LinkedIn Learning, as well as fully digital mentoring
and coaching programs. We also run various cross-regional programs to support and develop young
talent. This has enabled our people to continue to develop new skills, even when working remotely.
As a direct response to the COVID-19 pandemic, we offered online health and safety training to morethan 7,500 people. On top of this, 590 health and safety leaders received extra training about risk
assessment and control measures. This training was also available to employees with a higher riskof being exposed to the virus, including members of our salesforce, cleaning and hygiene staff, andsecurity guards.
In our Japanese operations, we refreshed our learning programs for employees in 2020. Employees
are now grouped into five stages of development. At each stage, they participate in training
programs on topics such as capability development, understanding roles and responsibilities, andinner reflection. On top of this, we try to boost career development by linking off-the-job training withon-the-job training.
As line managers play a key role in our employees’ careers, we hold regular performance and career
discussions throughout the year. Regular communication between managers and employees helps
to leverage our employees’ full potential and boost their development. In 2021, 75% of our JT Group
employees participated in the 2020 performance review.

Future business leaders
Our JT/JTI talent partnership program is a key part of our efforts to develop the global capabilitiesof our employees and train our future business leaders.
The main feature of this program is the JT/JTI Exchange Academy, which takes place every two
years. Selected employees from both JT and JTI – our Group’s two largest businesses – take part intraining sessions and group discussions, all conducted in English.
The Academy took place virtually in 2021, with 27 employees selected to take part. With a focus oncross-cultural collaboration, this six-month learning journey included applying agile methodologies
to leadership challenges and presenting to senior executives within our Group.
The program is a great opportunity for employees to network and improve their management skills,
by experiencing different working styles and cultures.

Case study

Virtual training for JT Group leaders
Our learning and development program continued to move forward in 2021, in spite of the COVID-19
pandemic. Some of our JT Group leaders took part in a fully customized virtual leadershipdevelopment program led by the INSEAD business school. With a focus on driving change
management initiatives, the six-month ‘Light Up’ course included self-study, group sessions,personal coaching, business simulations, and personal reflection.

Designed in partnershipwith INSEAD businessschool, the ‘Light Up’course takes leaders on
an intense journey ofself-discovery. It
prepares participants todrive change andovercome the toughest
leadership challenges,
while accelerating theirpersonal andprofessional growth.

Talent attraction
Another priority for us is ensuring that we are chosen by the best talent. Although our operation isworldwide, the Company is not yet well known in some countries and we wish to find ways toconnect with talented individuals in these locations.
Attracting and retaining Generation Z* is particularly important, as this age group represents agrowing proportion of our new hires, and their unique skills will help drive innovation in the JT Group.
From a sustainability perspective, it is critical for us to understand this generation’s professional
expectations, which are different to those of previous generations.
* Generation born after the late 1990s.

With this in mind, in 2019 our international tobacco business launched its first global internshipcompetition, ‘Make It Bright’, in which students from 17 countries pitched ideas for positive change
to our business. In 2020, we expanded this initiative across 30 countries.
The 2021 competition went even further, with 36 participating countries and more than 8,000
entrants. The winners from each country went head-to-head in the virtual finals to win a six-month
paid global internship with JTI in 2022. Winners from the first two years have since become
employees.

For me, participating inthe ‘Make It Bright’challenge was a careerand life-changing
experience! It allowed me
to spend 10 amazing
months as an intern in
JTI Italy, and I’ve
recently joined the Ploom
Consumer Experienceteam at the JTI
Headquarters. I learn
new things every day
and I’m excited tocontinue my career with
JTI.

Aleksandra Stepanova,
PLOOM Consumer Experience
Associate and Make It Bright Winner
2020

The tobacco industry is undergoing a majortransformation, and we want to make people
aware of the new opportunities that our
Company offers. In 2018, our international
tobacco business launched a new HR
Employer Brand (‘Join The Idea’) andredefined its Talent Value Proposition. Thisis our promise to create a working
environment that addresses four key talentneeds – respect, growth, drive, andconfidence – so that our employees are free
to express themselves, grow, create, andshine.
In 2020, we launched a talent attraction
campaign to let candidates know about newcareer opportunities at our three new Global
Business Service Centers (in Warsaw,
Poland; St. Petersburg, Russia; and Manila,
Philippines).
The campaign reached more than three
million professionals, and we received three
to four times more applications than during
the pre-campaign period. Based on thissuccess, in 2021 we extended the campaign
to all of our worldwide operations. We also
created comprehensive guidelines andtoolboxes to support our local HR teams.

Diversity and inclusion
For us, diversity means all the ways in whichcurrent and potential employees define
themselves, in terms of age, gender, selfidentification, sexual orientation, disability,
ethnicity, religion and nationality, as well as
by experience and expertise. Inclusion isabout treating all employees fairly andrespectfully and ensuring that everyone feelslike they are part of the same team.
Establishing a diverse and inclusive
workplace is a top priority for us because wewould like all of our employees to enjoy theirwork and to perform to the best of theirabilities. We believe this brings a rich mix ofviewpoints and perspectives, which caninspire new ideas, lead to solutions tocomplex issues, and drive our businessforward.

In some respects, we are already highly diverse. Our workforce includes over 100 nationalities, and it
is vital for us to create a workplace free from any discrimination, where people can be themselves.
However, in order to further strengthen our organization, we wish to increase diversity and inclusionin other respects and within senior management across our Group.
In 2019, our international tobacco business established a practical and ambitious new strategy
consisting of three pillars: Gender Equality, New Ways of Working, and LGBT+ Inclusion. We thenadded two new pillars, Wellbeing and MyGeneration in 2020, followed by Race & Ethinicity in 2021.

Gender equality
We have been focusing on building a gender-balanced workforce and our Board members areheavily involved in working towards this ambition. To further empower women, we hold workshops
for top management and line managers, as well as training and seminars for female employees. Our
new Group-wide target, specifically representation of women in leadership, is to reach 25% by 2030.
We find it desirable that this should be more than 40% over time.

In our Japanese operations, we run various training sessions and seminars to help women to growin their careers. We are also working to expand our support systems for balancing work and familylife.
In addition, we offer opportunities to take part in external training programs and discussions withsenior management in order to promote career advancement among female employees. In
recognition of our exceptional work in promoting women’s success in the workplace, in 2021 ourJapanese operations were named a ‘Semi-Nadeshiko Brand’.
In our international tobacco business, a Diversity and Inclusion Advisory Council at Board level
demonstrates senior management’s support for this inclusive and forward-looking approach. Seniorleadership have taken special training on identifying the obstacles preventing talented women fromadvancing their careers.
We have implemented a number of talent management and recruitment measures. These include
diverse and balanced interview panels, as well as a 50-50 equal slate of candidates within the final
round of our interview process. Additionally, all of our job descriptions go through an AI algorithm
that flags gender-biased language, helping us to attract a broader range of candidates.
To foster the professional development of female employees, we launched a one-year sponsorshipprogram targeting female employees, supported by senior leadership. we also established a global
Employee Resource Group called “TogetHer”. This internal network is fully inclusive and open to all
JTI employees. TogetHER includes both men and women as active members. The network iscurrently focusing on men activating progress, the role of gender in consumer centricity andinnovation, as well as raising awareness and communication in the organization.

In 2021, JTI became one of the firstmultinational companies to receive EY’s
brand-new Global Equality Standard. This is
one of the only global certificates thatassesses companies on equal opportunities
and equal pay.
In particular, we were commended for our
flexible working measures, best-in-classglobal family leave policy, employee
resource groups, wellbeing programs, digitallearning and development schemes, andmore.
The eight-month assessment process
involved consulting JTI employees in 19

different countries, reviewing more than 200
pieces of supporting evidence, and one-toone interviews with JTI’s leadership.

LGBT+ Inclusion
Supporting our LGBT+ employees is vital for us to create a more equal JT Group, in which everyone
is empowered to be themselves and do their best. That’s why we are committed to creating
workplaces which are inclusive of all sexual orientations, gender identities, and gender expressions.
All of our job vacancies in our international tobacco business are now published on myGwork, a
global networking hub for LGBT+ professionals and graduates.
Our global LGBT+ Employee Resource Group, with a dedicated internal communication platform(Workplace), facilitates networking and interaction among like-minded people and enhance
employees’ understanding of LGBT+.
In 2020, Geneva, the headquarters of our international business was one of the first companies in
French-speaking Switzerland to be awarded the SWISS LGBTi Label certification. Based on an

extensive audit, this certification recognizes the implementation of our LGBT+ Inclusion strategy.
We have made positive progress in our Japanese operations too, achieving the highest-ranking
Gold status in the PRIDE Index 2021

for the sixth consecutive year.

In 2021, JT and JTI co-signed the UN Standards of Conduct for Business Tackling Discrimination
against the LGBTI community. In signing this pledge, we join 300 other companies from around theworld committed to tackling LGBT+ discrimination, while becoming the first tobacco company tocommit to the Standards. This is another important milestone on our journey to achieving greater
equality and inclusion at work, and within the communities in which we operate.

New Ways of Working (N-WOW)
Recognizing that different people have different working styles and needs, we promote a workplaceenvironment that allows all employees to fulfill their potential. N-WOW is a movement to boost
flexibility and employee retention. We do this largely by removing many of the barriers andmanagement styles of the past and bringing them in line with a modern, multigenerational
workforce.
In July 2021, our international tobacco business launched its global N-WOW policy and adopted a
hybrid way of working that focuses on outcomes rather than time spent in the workplace.
Employees now have the flexibility to work up to 50% of their time per month away from the office,benefit from flexible core hours, and work up to 10 days abroad, among other measures which
redefine where and how work is done.
In our Japanese operations, we introduced full-time flexible working and no-limit remote working in
February 2020. These new ways of working will continue beyond the end of the pandemic.

A family-first approach

In 2020, we launched a new family leave
policyfor our international tobacco

business, which came into effect in January
2021. The policy grants 20 weeks of paid
family leave, regardless of gender, sexual
orientation, age, or location, when an
employee becomes a parent via natural birth,surrogacy, or adoption. The policy goes
above and beyond the standard national
requirements in more than 80% of thecountries where JTI is present.
We also provide childcare facilities andfinancial support with childcare costs. In
recognition of this, JT has been certified as achildcare-supporting company by theJapanese Ministry of Health, Labor, andWelfare.
In some countries with an aging population,

we offer support for employees who care forolder people. For instance, in the U.K., weallow employees to take time off to lookafter senior family members. Equally, in ourJapanese operations, employees can takedays off when needed, and the Company
offers financial support for professional
nursing care.

Wellbeing
In light of COVID-19, wellbeing has become more important and relevant than ever before. So, in
2020, we launched our Global Wellbeing employee volunteering program. The aim of this initiative isto support the physical, mental, emotional, and financial wellbeing of our people and thecommunities in which we operate.

MyGeneration
We value the diverse perspectives that each generation brings to the workplace and our vision is tosupport age-diverse teams, creating optimum conditions for collaboration, knowledge exchange,
and mutual respect. The launch of the MyGeneration pillar leverages the strengths of eachgeneration and builds an inclusive culture. In 2020, two groups were created at the headquarters of
our international business in Geneva. Each group will work on cross-functional projects including
multi-generational focus groups and ‘Sales Experience’ sessions, as well as social events.
In 2020, with a heightened focus on Race and Ethnicity, we created a global employee working groupdedicated to equal opportunities and equity for all our employees.

Race & Ethnicity
Our Race & Ethnicity pillar supports ourjourney to become a fully inclusive business.
Our vision is to break down barriers andcreate a safe environment that allows peopleof all races and ethnicities to thrive in theworkplace, diversifying all levels of thebusiness, including leadership.
As part of our commitment to achieving thismission, our Diversity & Inclusion team isworking with a group of volunteers whomake up embRACE, an employee resourcegroup focused on race and ethnicity. This
community of racially and ethnically diverse
employees, and allies aims to empower
employees through an open, positive andproactive dialogue.

Being a responsible employer

Engaging with employees
As a responsible employer, engaging employees is crucial. Our aim is to foster a positive andproductive working environment, and to maintain constructive relationships with unions.
To evaluate the level of engagement of our employees, and to identify areas for improvement, we
carry out an annual Employee Engagement Survey at a regional or department level and a Groupwide survey every three years.
The feedback we receive from employees helps us to understand our strengths, progress, and areas
for improvement. It also helps us to maintain our reputation as a top employer.

Highlights from our 2021 JTI employee engagement survey

In our international tobacco business, ourannual employee engagement survey helps
us to collect employees’ feedback regularly.
This in turn empowers our line managers
and teams to reveal challenges and needs
for improvement, and take action in a timely
manner.
We use the results of the survey to create
and implement action plans, which arecarefully tailored to the needs of the relevantbusiness unit. Some of our key findings arelisted below.

Strengths:■

89% response rate■

87% of employees responded
favorably to the question “How happy
are you working at JTI?”■

84% of employees are excited about
the Company’s future■

Employees are clear about the vision,and how they contribute to it, with
81% saying they are confident in ourleadership teamAreas for improvement:■

7% don’t feel well supported by theCompany in terms of well-being, while
14% gave a neutral answer to thisquestion■

Employees feel treated with respect,
but are less positive aboutcollaboration across the businessOverall, employees said they are satisfied
with working for the company, so they are
engaged and motivated.

Despite a challenging
year, JTI continued todemonstrate the power of
putting people first.

Successful policies
implemented over theyears meant that thecompany was able tocontinue fully engaging
and motivating
employees, showcasing
why they are sodeserving of theircertification. This wasdemonstrated by theircontinued presence in
top regional ratings, andtheir certification as a
Global Top Employer
since 2015. JTI has
shown it is committed tocontinuously improving
HR policies that affect its
40,000+ employees
worldwide.

David Plink,
CEO, Top Employers Institute

Freedom of association and trade unions
The JT Group supports freedom of association and the right to collective bargaining, even incountries where these freedoms are not a legal prerequisite. This means we are committed to open
and constructive relations with trade unions and works councils. If one of our sites ever has tocease activities due to the operating environment it faces, we work closely with unions to ensure
affected employees are treated fairly and beyond the minimum legal requirements.

We have a long history of positive industrial relations. Across the JT Group, industrial relations are
based on individual countries' labor laws, and we aim for open and constructive relations with tradeunions and works councils. Dialogue with trade unions generally takes place within the jurisdictionof our local operations, and typical engagements cover aspects of company management, strategy,
and planning, as well as operational issues.
In line with EU legislation or regulations, we also have a voluntary European Works Council
agreement in place. Our European Works Council operates as an employee information andconsultation body for transnational issues relating to our operations in Europe. The Council has
regular meetings each year and is made up of employee representatives and members ofmanagement.

Related links
Investing inpeopleHuman

JT Group healthresources

and safety

JT Group health and safety
Our employees have the right to be protectedfrom work-related injuries and illnesses. It is
our responsibility to provide them with a safe
working environment and to promote a
culture that prioritizes health and safety.
We strive for zero harm among our
employees and to carry out all our businessactivities in a safe manner.
Our global health and safety mission reflects
our vision of zero workplace injuries. We aim
to provide leadership in the development andimplementation of global standards andprograms to properly manage and mitigate
health and safety risks arising from ourbusiness activities. It’s also important to us
to build awareness and develop asustainable safety culture across thebusiness.

We focus on creating safe workplaces, building safety competence, and developing a Group-widesafety culture. Our standards on health and safety usually exceed legal requirements. In addition,
their scope extends beyond our employees to cover contractors and visitors to our operations.
We have processes in place to identify and minimize risks, prevent incidents, and continuously
improve safety. We work to prevent occupational health hazards such as exposure to noise, dust,
hazardous chemicals, and ergonomic risks. We make sure that health and safety standards arerespected when designing work processes and machinery. We ensure safe working environments bysetting up specific microclimates and monitoring them. This typically includes air quality,
temperature, humidity, and proper lighting, based on the tasks to be carried out.
We also promote health and safety awareness through dedicated training and communication
campaigns. We run different programs to help protect the health of our employees while at work. In
addition to protecting them from endemic diseases, we also have a number of initiatives in place tosupport their wellbeing.

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

TargetIn line with our vision of zero workplace injuries, we will reduce injury rates by 25% by 2023
and 50% by 2030. (Baseline year: 2015).

ProgressHealth and safety performance in our tobacco business
Recordable injury rate* declined 53.9% from 0.72 in 2015 to 0.33 in 2021.

2015 2016 2017 2018 2019 2020 2021

Recordable Injury Rate(per 200,000 working

Employees

0.72

0.64

0.67

0.50

0.49

0.29

0.33

hours)* Recordable injury rate = recordable injuries/200,000 hours worked. Some data from newly
acquired business has been excluded, as newly acquired business needs 18 months tointegrate the JT Group health and safety standards.

Read more about our latest progress on the JT Group's
tobacco business sustainability strategy.

Our health and safety performance as a Group

Recordable injury rate* declined 53.9% from 0.72 in 2015 to 0.33 in 2021.

Employees

2015

2016

1

2

Number of fatalities

2017 2018 2019 2020 2021

0

1

1

3

0

2

0

0

0

1

1
Contractors

1

(only
JTI)

Employees

0.34

0.39

0.38 0.24 0.24 0.20 0.22

0.16

0.30 0.23 0.15 0.07 0.11

00.08 0.02 0.01 0.37 2.06

Lost-time injury rate
(per 200,000 working
hours)

Supervised
workers

Occupational illness rate*1(per million working

Employees

0hours)

Other important KPIs

% of cigarette and tobacco-related
factories certified to
ISO 45001 (OHSAS 18001)*2

Number of vehicle accidents*3

78.9
%

112
2

77.8%

74.4 76.9 79.5 70.0 71.8
%

%

%

%

%

1151

66

85

71

64

65

3.87

0.23 0.21 0.16 0.19 0.20

Vehicle accident frequency rate*3(excludes property damage, accidents per

4.84

million kilometers)

We no longer report the number of lost-time incidents or the lost-time incident rate, as thisdata is now covered by the recordable injury rate and lost-time injury rate.
We regret that one contractor died as a result of work accident in 2021. We try to learn fromevery accident and remain committed to achieving zero fatalities.

*1 Data scope: 2015: only JT. 2016 and 2017: JT and Japanese domestic Group
companies. From 2018: the entire JT Group. 2020 and 2021: The increases from 0.01 in
2019 to 0.37 in 2020 and 2.06 in 2021 are due to COVID-19 work related cases. Read
more about our data scopes and external verification.
*2 Data scope: 2020 only JTI*3 The number of vehicle accidents and the vehicle accident frequency rate in 2015 and2016 include damage to property, because the data is not available in our international
tobacco business. The data in 2015 covers only our international tobacco business.
From 2016, it covers JT and JTI.
Read more the way we define, calculate, and consolidate data in the Basis of reporting.

Our Health & Safety Policy
Our Health & Safety Policy is driven by the following guiding principles:■

People come first
The health, safety and wellbeing of our employees, their families and the communities in which
we operate are at the heart of everything we do.

■

Nothing we do is worth an injury
We aim to create an injury-and illness-free workplace where everyone goes home safe andhealthy after each day’s work and where business results shall never conflict with safety
performance.

■

Safety is everyone’s responsibility
Everyone shares the responsibility for a safe and healthy workplace, and we each have a role toplay to make it happen.

■

We do the right thing
All our offices, sales operations and factories shall always comply with all national and local laws
and regulations. Where local legislation and regulatory framework does not provide adequate
controls, we will adopt our own standards to protect the health and safety of our employees,
contractors and visitors.

Efforts to reduce the risk of traffic accidents
The level of risk varies from location tolocation, but the highest risks across the JT

Group are driving vehicles, riding
motorcycles (driver safety), and working withmachinery, as well as slips, trips, and falls.
To mitigate these risks and prevent injuries,
we conduct risk assessments throughout
the whole supply chain. This helps us to
identify hazards, implement appropriate
measures, and ensure that our approachhelps us to protect our employees. We also
focus on raising awareness among
employees and thoroughly embedding oursafety culture in our day-to-day work.

In 2019, we rolled out a new driver safety policy and implementation guidelines across ourinternational tobacco business. Considering the growing number of female employees, the policy
also includes maternity protection for female drivers. Focusing on driver behavior, the new
guidelines require local offices to conduct a risk assessment to identify high-risk drivers. They mustalso send periodic progress reports and action plans. In 2020, we completed a Driver Safety
Compliance Assessment. The results showed that our markets comply with 80% of our global
guidelines on average. In 2021, this average has increased to 85%.
In 2020 and 2021, we trained 1,380 and 2,361 employees respectively. Due to the pandemic, some of
the training was carried out remotely (online driver risk assessment and coaching sessions), but wealso organized ‘on the road’ training for high-risk drivers where possible. Our plan is to train a further
4,000 drivers in 2022.
In 2020, despite the onset of COVID-19, we launched a global tool to facilitate risk assessment at
local offices. This tool had been piloted in Egypt, where trying to reduce vehicle accidents ischallenging due to poor infrastructure and traffic management, nationwide. Feedback from local
health and safety managers and employees had been very positive. The tool is now available inseveral countries, including Egypt, Lebanon, Jordan, Philippines, Indonesia, Nigeria, Turkey, andPoland, reaching more than 3,800 drivers.
In the sales division of our Japanese operations, we have set ‘prevention of vehicle accidents during
sales activities’ as a priority issue within our Occupational Health and Safety Plan.

Case study

Stand for Health: driving towards a safer future in
Iran
In 2018, a project was launched in Iran tomake day-to-day work safer for employees
who drive vehicles as part of their job.
The Iran team started by analyzing the root
cause of previous accidents, pinpointing
factors such as adverse weather, technicalfaults to dangerous driving. They then used
this information to prepare training materials
for area managers to use in driver safety
training sessions. Following this initialtraining, all vehicle users continue to takepart in weekly safety stand-up meetings toensure continuous improvement.
The ‘StandForHealth’ initiative has proved tobe very successful, with accidents among
our drivers in Iran down by 67% and no highseverity incidents reported since 2018. It has
also helped us to increase the life cycle oflocal vehicles, reduce repair costs and spend
less time on accident-related paperwork.

Ensuring the same standards around the worldAs part of our drive to expand the business geographically, we have made acquisitions in newmarkets. Most of these acquired businesses operate in developing countries, with a raft of societal
and economical challenges. We recognize this and feel responsible for improving the working
environment. We therefore introduce our policies firmly and immediately after each acquisition. We
also visit the sites and support local managers to ensure that our policies are endorsed andembedded across the Group.
Particularly in these countries, health and safety issues pose a serious risk to local communities, ouremployees, contractors, and our business continuity. For this reason, we take a systematic and riskbased approach to acquired businesses from the outset.
The Health and Safety team at our headquarters conducts a risk assessment for potential new
countries to check whether their standards meet ours. Following an acquisition, we support local
offices to identify key risks, develop and implement 18-month action plans, and align policies with
our standards.
To improve driver safety in Bangladesh, for example, where road conditions and driver behavior are
particularly challenging issues, we are moving all staff from motorbikes to cars.

Our response to COVID-19
People come first. The safety and wellbeing of our employees, contractors, their families, and thecommunities in which we operate are at the heart of every decision we make.

At the JT Group, we implemented a number of measures to reduce the impact of COVID-19. We havetaken a risk-based approach, identifying the highest risks to our Company and making it a priority totake relevant action.
We analyze the impact on business from various perspectives. Since the COVID-19 outbreak began
in January 2020, we recognized the virus as a threat to our employees and the business community.
Our corporate security and health and safety experts immediately started to create daily reports andrisk assessments related to the impact of the virus on employee travel, health and safety, and supply
chains. This gave management access to the latest information and speeded up decision-making.
We also provided best practices for business continuity during the pandemic. These included healthand safety guidelines for different environments, including offices, factories, and sales, in dozens ofcountries. We supported business units worldwide by procuring and shipping personal protective
equipment where needed.
In addition, we offered online health and safety training to more than 7,500 people. For health andsafety leaders, we provided extra training on specific risk assessment and control measures. This
training was also available to employees at a higher risk of exposure, including members of oursales force, our cleaning and hygiene staff, and security guards.
We have a long-standing corporate culture of encouraging flexible hours and remote working rightacross the Company. Fortunately, these practices enabled most of our office-based employees toseamlessly work from home soon after the COVID-19 outbreak began.
We also provided detailed travel security advice for employees when borders were rapidly closing,with severe and often unannounced restrictions on travelers.

We take a science-based
approach to identifying
the highest risks to ouremployees. Our COVID-19
policies and guidelines
are accessible to all
employees worldwide
through our health andsafety platform, ensuring

a constant flow of clear
and scientificallyaccurate information.
Using new online
technologies, we haveincreased collaboration
across risk functions tomake sure our people
have the information andtools they need to protect
themselves and their
loved ones.

Alicia Olo Martinez
Director, Global Health and Safety,
Corporate Security, JT International

Through all thechallenges of 2020 and
2021, our culture wasrevealed to be ourgreatest strength. In the
moment when we
needed it most, we came
together as one tosupport each other andadapt to the everchanging environment
we found ourselves in.
While 2022 will certainlyremain unpredictable, wewill continue to provide
timely advice to ensurethat our employees are
safe.

Yann StephanVice President, Corporate Security, JT
International

COVID-19 vaccination program
In 2021, at all 20 of our sites in Japan, weoffered COVID-19 vaccinations to all JT
Group employees and their families etc. In
total, this gave around 20,000 people theopportunity to receive the vaccine.
In our international operations, we alsooffered workplace vaccinations where
possible, in line with local government
guidelines and regulations. We actively
encouraged employees to get vaccinated if
legally appropriate, and produced an
employee information booklet about thevaccine.
By the end of 2021, although vaccine
availability varies by country, 80% of JTI
employees (over 36,000) had been
vaccinated: well above the average national
vaccination rate in most locations. This is asignificant achievement, which highlights the
success of our vaccination campaigns.

Employee wellbeing in focus
We care deeply about employee wellbeing because we want our employees to feel comfortable andmotivated every day. We run a variety of wellbeing programs across the Group, such as ergonomic
assessments and ensuring general occupational hygiene.
To design these programs, we gather wellbeing data from our local offices. In 2018, we expanded
our data scope by introducing new rules requiring all local offices to report their occupational healthcases to our headquarters. This will allow us to understand our global risks and develop a
consistent approach to them, while strengthening our existing protection measures.
Local managers are responsible for investigating reported issues and identifying the causes. If theissues are attributed to the work or workplace, we take appropriate measures immediately to protect
employees’ wellbeing and prevent recurrences.
We communicate the importance of health check-ups to our employees and put in place initiatives
to facilitate them. In Japan, through these check-ups, we identified several lifestyle-related risk
factors which can cause chronic conditions such as diabetes. We therefore launched a platform
where employees can view the results of their check-up and receive relevant wellbeing tips. This willraise employee awareness of lifestyle-related risk factors, and ultimately reduce absenteeism rates.
In our Japanese operations, in addition to occupational safety and health activities, we are building acomprehensive health support system under the leadership of our CEO. For example, we haveassigned health staff at 11 key locations in Japan, to help employees to take care of their physicaland mental health.
Since the onset of COVID-19, we have continued to offer employees one-to-one interviews withhealth staff via video call. We have also continued to run online programs focusing on sleep, diet,and exercise.

Supporting employees’ mental healthIn our Japanese operations, we recognize
the importance of mental health in theworkplace and is working to prevent mental
illness. We have set up an in-house
consultation desk, where employees canspeak to specialists and counselors. We also
provide telephone and interview counselingthrough external specialized institutions, aswell as mental health training for supervisors

and self-care seminars. As a result of these
efforts, the incidence of mental healthproblems remains at a low level.
These programs have had a positive impact
on employee productivity and theabsenteeism rate in Japan, which has
recently been below 1%.
We are pleased to announce that JT wasnamed as a “White 500” company for thesixth year running in 2022. This award ispresented by Japan’s Ministry of Economy,
Trade, and Industry. It recognizes large
enterprises that are making outstanding
progress towards better wellbeing among
their employees.

Case study

Boosting employee wellbeing while supporting agood cause
Our Japanese operations have been participating in the ‘Table for Two’ program, which donates theequivalent of one meal to a developing country for every meal purchased by employees at thecafeteria in Tokyo.
In light of COVID-19, working from home became the norm for employees in 2020 and 2021, and useof the cafeteria decreased. However, we found a new way to keep the program running, while
encouraging employees to keep fit at the same time. In both May and October 2021, the Company
donated one meal for every 8,000 steps taken per person per day. A total of 6,224 employees in ourJapanese operations stepped up to the challenge.
Read more about our community investment initiatives.

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

Read more

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