Our sustainability strategy

The 4S model, Materiality, Sustainability strategy, SDGs

Top management message

Stakeholder engagement

Read more

Top management message
Message from

Message from

CEO

CSO

Message from CEO

Masamichi Terabatake
Chief Executive Officer

CEO message can be found here

※FY2021 Integrated Report

Message from CSO

Hisato Imokawa

Senior Vice President
Chief Sustainability Officer

Where we stand
COVID-19 and geopolitical issues have triggered drastic changes to our daily life and to our social
environment. As we continue to face challenges from the pandemic, we should take initiative andact swiftly. Changes are also seen within ESG, as ESG investment is gaining increasing momentum.
With both of these factors, we are entering a period of transformation regarding how corporations
are managed. Some may take a pessimistic view of the turbulent times, while others would see thechanges as opportunities. Needless to say, the mindset of our Group belongs to the latter.

Sustainability of our GroupPursuing the JT Group’s 4S model is about pursuing the sustainability for a foundation as well as theuniverse where we can exist and be utilized. Based on the 4S model, we have a history of proactivelytransforming our Group and are equipped with the ability to transform. It is my belief that disruptive
environmental change is an arena where we can show our true strength. Here in lies the essence of
our Group’s sustainability.

My role as CSO, the challenges
The role of a CSO is to promote sustainability management as a whole group, while anticipatingwhere and how we want to be in the future. I consider myself as part of an ecosystem with a very
long-time axis. My role is to persistently strive for new initiatives, to collaborate with a diverse rangeof partners, and to proactively embed a universal perspective in which we believe. In other words,
the role of a CSO is to look ahead to the year 2050, 2100 or even beyond, and to expand or to create
the structures we need to enhance our Group’s capability and assets, offering both financial andnon-financial value.
2022 marks a year of significant transformation for our tobacco business, our core business. It isalso the starting point of the transformation of the entire Group. As the Group CSO, my wish is toembed sustainability into the root of our management. I hope that all our employees will takeactions that will lead us to the sustainable growth of our society and our business, and I lookforward to driving this change together.

FY2021 Sustainability highlights by our CSO
We have outlined three basic requirements that apply across the whole Group, while each businesshas set out its own focus areas. The following are some of our initiatives and progress in 2021.

Improving our environmental impact
In the updated JT Group Environment Plan 2030, our target is to achieve net zero greenhouse gas(GHG) emissions by 2050 throughout our value chain. We will continue to work on improving ourenvironmental impact. Our GHG emission target has been revised accordingly. Our initiatives arerecognized by external parties. We were recognized by CDP, securing a place on its prestigious ‘A
List’ for tackling climate change and acting to protect water security for the third consecutive year.

Improving our social impact
We have long-term partnerships with local and international organizations, with around 400
community investment programs in 60 countries. These programs help communities to become
more inclusive, sustainable, and resilient. In response to the COVID-19 pandemic, precautionary
measures were put in place, while we continued to provide opportunities for our employees toengage with their communities.

Respecting human rights
Our approach to human rights’ due diligence is collated and described in this report and is based on
our Group Human Rights Policy, our commitment to respecting human rights and our past andcurrent initiatives. In 2021, we issued our first JT Group Human Rights Report.

Investing in people
The effect of the COVID-19 pandemic persisted throughout 2021. We continued to find flexible ways
to work, primarily through remote working. We prioritized the safety and well-being of our employees
and their families, by organizing or providing information about COVID-19 vaccinations. As reported
in the previous report, we have set out a Groupwide target for representation of women in leadershipand we continue to work on diversity initiatives.

GovernanceJT Group and we work proactively to fulfill this requirement. To ensure sustainable profit growth, we
believe it is essential to further secure a strong commitment of the Group’s management. In thislight, we are introducing an ESG-related index for director remuneration, starting from FY2022.

Business progress
Each business has set out focus areas with sustainability targets. In our tobacco business, we arereporting on the target progress for Reduced-Risk Products reflect our resource allocation and focus
on HTS (heated tobacco sticks). In leaf supply chain management, Agricultural Labor Practices(ALP) remains our core program. Preparatory work is underway for the program to be extended toadditional sourcing countries.
We are also working to establish frameworks for pursuing sustainability initiatives.

Sustainability Advisory ForumIn order to discuss our sustainability issues and challenges, we have held regular Sustainability
Advisory Forums since 2020. CSO is the Chairman of the forum, and heads of the JT Groupbusinesses and functions attend.

Materiality
Since we first set out our material issues, external circumstances and the business environment inwhich we operate have changed. Bearing this in mind, we started to update the Group’s materiality in
2021. The new materiality will take into account the changes that our Group has gone through aswell as current ESG issues. We will of course engage our stakeholders throughout the process.

Related links
Our sustainability
strategy

Top management

The 4S model,

Stakeholder

message

Materiality,
Sustainability

engagement

strategy, SDGs

The 4S model, Materiality,
Sustainability strategy, SDGs
Our new Group purpose can be found here
Overview

The 4S model

The 4S model

Materiality

Sustainability
strategySDGs

We strive to fulfill our responsibilities to our

Consumers, shareholders, employees, andvalued consumers, shareholders, employees

society - these are the four stakeholder

and the wider society. Carefully consideringgroups (4S) at the heart of everything we dothe respective interests of these four key

at JT. Our commitment to serving thesestakeholder groups, and exceeding theirgroups is represented in the 4S model.

expectations wherever we can.
We always try to exceed the expectations of
our four stakeholder groups wherever we can,based on the principles of the 4S model. For
our consumers, this means offering superior
products that meet or go beyond their
evolving needs. For our shareholders, we aim
to enhance returns based on our profit growth
outlook and strike a balance between
providing shareholder returns and investing in
the business for future profit growth. For our
employees, we will work to ensure that we
maintain our reputation as a respected
member of the community and a company
that they can feel proud to be a part of. And
we will continue to contribute to society as awhole, recognizing that our growth benefits
from a sustainable society, and in doing soenhance our corporate value.
Our vision, based on the 4S model, is toachieve global growth by providing value
unique to our Group. Our mission - ourconcrete action plan to achieve our vision - isto create, develop, and nurture our brands tomeet consumers' needs while understanding
and respecting the environment and thediversity present in society.

Our material issues
To help the JT Group to grow, and to build a sustainable future as a member of the society in which
we operate, we have identified a list of high-priority material issues. Our materiality is based on the
JT Group’s management principle, the 4S model. In 2015, we performed a materiality assessment
covering the entire Group for the first time. We selected our material issues through interviews with
our internal and external stakeholders.

Since we first selected our original material issues, external circumstances and the businessenvironment in which we operate have changed. In 2021, we began updating the Group’s materiality
framework by revisiting and identifying our material issues. With this in mind, external and internal
stakeholders are being consulted to prioritize our new materiality topics.
In updating our materiality, there are several issues we are paying particular attention to: the rise andgrowth of RRP (Reduced-Risk products); the increasing global awareness to combat climate change;
impacts of the COVID-19 pandemic, the progress of information technology; greater diversity in theworkplace; regulatory trends such as the revision of Japan's Corporate Governance Code, to namebut a few. We also recognize the importance of creating new shared value, together with our
stakeholders.
Taking these factors into consideration, as well as the ESG issues facing our Group, we will set out
our new materiality.

Overview of the sustainability strategy
The JT Group’s sustainability strategy is based on the 4S model, our management principle, andencompasses our materiality analysis. The foundations of our sustainability strategy, which apply
across the Group, are outlined below. In 2021, we updated our JT Corporate Governance Policy and
the Group Environment Plan 2030, which includes a commitment for a net zero target.

Three absolute requirements for sustainability
Respect for human rights
We are committed to respecting human rights across our global
operations and value chains, as expressed in the JT Group Human
Rights Policy.
Read more

An improved social and environmental impact
We are committed to protecting the environment and making a
positive difference wherever we operate.
Read more about how we are improving our social andenvironmental impact

Good governance and business standards
We are committed to promoting transparent, fair and timely
decision-making that carefully considers the respective interests ofconsumers, shareholders, employees and the wider society.
Read more
With the update of the JT Group Environment Plan 2030 in February 2022, we will also update thetargets for greenhouse gas emissions in each business, which will be disclosed in the next
Integrated Report 2021 and other documents.

Tobacco businessWe have selected the following four focus areas for tobacco, our core business. In 2019, we set out
11 specific targets covering each focus area and have been reporting on progress. In 2020, we set a

new target relating to the appropriate use and responsible disposal of materials, including plastics,
used in our products and packaging. As a result, a total of 12 targets are in place.

Focus areas

Aspirational goals

We will be a total tobacco company offering consumers (The word, consumers,
used in the context of the tobacco business means adult consumers. Minimum
Products and services

legal age for smoking varies in accordance with the legislation in each country.)an even greater choice of products by focusing on quality, innovation, andreduced-risk potential.

PeopleSupply chain

Regulatory environment andillegal trade

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

We will reduce environmental and social risks, and enable transparent andresponsible practices across our supply chain.

We will ensure the Company is included in policymaking leading to fair andbalanced regulation, and enhance our cooperation with governments to combat
illegal trade.

Tobacco business sustainability strategy- Focus areas, aspirations, targets and progress

Pharmaceutical business
The mission of our pharmaceutical business is to create innovative, original drugs to support
patients in the shortest time possible. In view of this mission, in 2019, we selected the following
three focus areas. We subsequently set five specific targets for these focus areas.

Focus areas

Products and services

Aspirational goals

We will create innovative, original drugs to support patients in the shortest timepossible.

We will strive to nurture talent development which enables us to create first-in-

Peopleclass (FIC) drugs.

Product safety andWe will strictly comply with all relevant laws, regulations, and industry standards

responsibility

in order to deliver safe drugs to patients.

Pharmaceutical business sustainability strategy- Focus areas, aspirations and targets

Processed food businessOur mission in the processed food business is to deliver safe, high-quality products to consumers. In
2019, we selected the following three focus areas. We subsequently set eight specific targets forthese focus areas.

Focus areas

Products and services

PeopleSupply chain

Aspirational goals

We will continue to provide high-quality, technology-driven products in response
to our customer's needs, to satisfaction and trust.

We will ensure workplace safety for our employees, while continuously investingin people who can contribute to enhancing corporate value.

We will reduce social and environmental impacts and continue to deliver safe
products to consumers.

Processed food business sustainability strategy- Focus areas, aspirations and targets

Contributing to the SDGs
The JT Group supports the Sustainable Development Goals (SDGs) adopted by the United Nations.
Through our business activities, the JT Group will contribute to the SDGs related to our business andits environment. We have mapped related SDGs against our initiatives for sustainable business, andidentified the nine SDGs to which our business can best contribute.

Sustainability Advisory Forum
Since 2020, we have held regular Sustainability Advisory Forums to discuss the Group’s
sustainability issues. With our Chief Sustainability Officer acting as Chairman, the forum is attended
by heads of the JT Group’s businesses and corporate functions. In 2021, three forums were held. We
discussed and shared information on a number of sustainability issues such as updating theGroup’s materiality, progress of the sustainability strategy, action against climate change or diversity
and inclusion. Discussions at the forum are appropriately reported to the CEO and board of
directors.

Stakeholder engagement
It is paramount that we regularly engage with our stakeholders, striving to create value for the wider
society. Stakeholder engagement is essential for the Group’s sustainable growth. Our 4S model isthe foundation of our management principle. In accordance with this principle, we communicate
with a diverse group of stakeholders every day.
Read more

Related links
Our sustainability
strategy

Top management
message

The 4S model,
Materiality,
Sustainability
strategy, SDGs

Stakeholder
engagement

Stakeholder engagement
We regularly engage with consumers, shareholders, employees, and members of wider society tounderstand the issues that matter to them most, and to meet their needs and expectations. This
engagement is vital in helping us to make decisions that will drive long-term sustainability. Listed
below are our key stakeholder groups and how we engage with them.

Customers and consumers■

Our sales force interacts with our retailers and consumers on a day-to-day basis to better
understand their needs and preferences (e.g. visiting retailers, interactive sampling of new
products where legally permitted, etc.)■

We respond to product and business enquiries from consumers through our consumer hotline
service■

When it comes to developing our RRP (Reduced-Risk Products), we listen to what our consumers(The word, consumers, used in the context of the tobacco business means adult consumers.
Minimum legal age for smoking varies in accordance with the legislation in each country.) wantto make sure that we provide them with the widest range of quality products

Read more about how we engage with our consumers through the hot-line service, or about our

RRP.

Shareholders■

We hold an annual general meeting every year and present our financial results to ourshareholders■

We are in regular contact with institutional shareholders to discuss the issues of concern tothem

Read more about how we engage with our shareholders.

Employees■

We conduct regular employee engagement surveys to understand how we can continuously
improve employee satisfaction■

Our employees have regular opportunities to discuss their career aspirations throughperformance assessments■

Our Codes of Conduct are developed in collaboration with our employees, and concerns about
violations can be shared with management anonymously through our Reporting Concerns
Mechanism■

In our international tobacco business, our people celebrate their sustainability initiatives andshare new ideas through our annual Sustainability Awards

Read more about how we engage with our employees or about our reporting concern mechanism.

Suppliers■

All of our suppliers are required to comply with our JT Group Supplier Standards and we selectour suppliers not only based on quality, service, and cost, but also on their compliance with ESG
related standards such as ensuring the health and safety of their employees. This is reflected in
our JT Group Responsible Procurement Policy■

In our tobacco business, we support our growers through our Agricultural Labor Practices, whichallows us and our suppliers to identify potential labor challenges on tobacco farms and help
improve growers’ labor practices■

For our non-tobacco materials, we develop strong partnerships with our key suppliers in order toachieve mutual long-term success

Read more about how we engage with our suppliers.

Trade associations■

We engage with trade associations by participating in working groups and policy commissions inorder to achieve a better business environment not only for us but also for other member
companies

Communities■

We support the development of inclusive and sustainable societies by voluntarily engaging withcharitable organizations in the communities where we operate■

We provide post-disaster support to local communities

Read more about how we engage with the communities in which we operate.

Non-governmental, regional, and internationalorganizations■

We partner with non-governmental organizations and non-profit organizations to deliver ourcommunity investment programs■

We partner with organizations supporting the communities where we buy tobacco leaves

Read more about how we engage with the communities in which we operate, or with thetobacco leaf communities.

Governments and regulators■

We engage in open and transparent dialogues with governments and regulators regarding
regulations affecting our business and society■

While engaging with regulators, we strictly comply with our anti-bribery policy which is embedded
in our Codes of Conduct■

We will enhance our cooperation with governments to combat illegal trade

Read more about how we engage with the regulators or with law enforcement agencies tocombat illegal trade.

Related links
Our sustainability
strategy

CEO message

The 4S model,

Stakeholder

Materiality,
Sustainability

engagement

strategy, SDGs
Copyright© Japan Tobacco Inc. All rights reserved.

Sustainability strategy of tobacco business
Four strategic
focus areas
Products and services

Aspirational goals

Targets*1

Progress

We will be a total tobacco company
offering consumers* an even greater
choice of products by focusing on
quality, innovation, and reduced-risk
potential.

Reduced-Risk Products
Reduced-Risk Products (RRP) offer real benefits to consumers and society. Our responsibility as a manufacturer is to continuously develop and launch RRP thatmeet consumer expectations and to provide information on them. We will leadin providing a range of consumer choice in the RRP category.

In 2021, we offered products (RRP) with the potential of risk reduction, social consideration,
convenience, and affordability, such as Heated Tobacco Sticks (HTS), infused tobacco products, e-cigarettes and oral products.

Product Materials and Packaging
We will reduce the environmental impact of our products and packaging
through design solutions, facilitating responsible collection and disposal, andconsumer awareness and education. More specifically, we will reduce our packaging (including plastic) and ensure that the remaining is 85% reusable or recyclable by 2025, rising to 100% by 2030. In total, recycled content will account for
20% of our tobacco business packaging by 2025.

We have carried several initiatives looking at design solutions and responsible collection
and disposal, and consumer awareness and education. Read more here.

SDGs

In an effort to increase the presence of JT Group in reduced-risk products, we will be
accelerating the level of investment, mainly towards heated tobacco sticks. In the last
three years, we invested approximately JPY 200 billion towards R&D, marketing and capital
expenditures.

In 2021, our efforts led to:
84% reusable or recyclable packaging
n 

2021
2025

Reusable or recyclable packaging

n

2030

84%
85%

100%

16% recycled content of packaging
2021

2025

16%

20%

Recycled content of packaging

PeopleWe will be the employer of choice
by investing in people.

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

Recordable injury rate*2 declined 54% from 0.72 in 2015 to 0.33 in 2021.
2015

Injury rate

Community Investment
Between 2015 and 2030 we will invest US$600 million to help make communities inclusive and resilient, with our employees contributing 300,000 volunteering hours.

2023

2030

-25%

-50%

Since 2015, we invested US$399 million in our communities and employees volunteered
164,280 hours on company time.
2015

2021

2030

399

600

Investment amount (MM USD)

2015

2021

2030

164,280

300,000

Volunteering hours

Employer of Choice
We will be a certified employer of choice every year in at least 60 countries byfocusing on talent management, rewards, and empowerment.

2021

-54%

We were certified as employer of choice in 67 countries (66 with Top Employer and 1 withother local employer certifications). In addition, 14 countries hold more than one certification.
2021

67

Number of countries certified as employer of choice* T he word, consumers, used in the context for the tobacco business means adult consumers. Minimum legal age for smoking varies in accordance with the legislation in each country.

60

Sustainability strategy of tobacco business
Four strategic
focus areas
Supply chain

Aspirational goals

Targets*1

We will reduce environmental andsocial risks, and enable transparent
and responsible practices across our
supply chain.

Greenhouse Gas Emissions
We will reduce greenhouse gas emissions from our own operations by 35% andfrom our direct leaf supply chain by 40%, between 2015 and 2030.

Progress

SDGs

Since 2015, we have reduced greenhouse gas emissions from our own operations by 27%,
while greenhouse gas emissions from our direct leaf supply chain increased by 9%*3 in 2021.

2015

2021

-27%

2030

Greenhouse Gas emissions from our own operations

-35%

2021
+9%

2030

2015

Greenhouse Gas emissions from our direct leaf supply chain-40%

Following announcement of JTG Net-Zero target in February 2022 “JT Group Environment
Plan 2030” and Tobacco Business Sustainability Strategy was updated. Read about the updated GHG related targets on JTI.com.
Progress against new targets will be reported in 2023.
Water and Waste
We will reduce water withdrawal by 15% and waste by 20%, in relation to ourown operations, between 2015 and 2030.

Since 2015, we have reduced water withdrawal by 16% and waste by 15%, in relations to ourown operation.
2030

2015

Water withdrawal

2015

2021

2030

-15%

-20%

Waste generation

Forestry
We will replace all wood from natural forests used in the tobacco curing processof our directly contracted growers with renewable fuel sources by 2030.

2021

-16%
-15%

Based on our 2021 tree planting activities in Tanzania, Zambia and Brazil, we estimate that
we are on a path to achieve consolidated 81% renewable wood sourcing by 2028.

2015

Renewable fuel for tobacco curing

2028

81%

2030

100%

Sustainability strategy of tobacco business
Four strategic
focus areas
Supply chain

Aspirational goals

Targets*1

We will reduce environmental andsocial risks, and enable transparent
and responsible practices across our
supply chain.

Agricultural Labor Practices
We will implement our Agricultural Labor Practices (ALP) program in all sourcing
countries by 2025.

Progress

SDGs

In 2021, 97% of our supplying entities*4 reported against ALP.
2021 2025
97%

2018

100%

ALP coverage rate: Supplying entities base

84% of our directly contracted growers and 97% of our leaf merchants’ growers*5 werecovered by ALP.
2018

2021

2025

84%
Directly contracted growers

100%

2021 2025
97%
100%

2018

Leaf merchants’ growers

79% of our volumes were covered by ALP.

2018

2021

79%

2025

100%

ALP coverage rate: Volume base

Supplier Screening
We will screen all key suppliers against environmental, social, and governance criteria by 2023.

At the end of 2021, 100% of our key suppliers were screened against ESG criteria.
2021
2019

Supplier screening implementation rate

Regulatoryenvironment andillegal trade

We will ensure the Company isincluded in policymaking leading tofair and balanced regulation, andenhance our cooperation withgovernments to combat illegal
trade.

2023

100%
100%

Engagement
We will always protect our ability to participate in public policy debate with theaim to achieve balanced regulation that meets societal concern and supportsbusiness growth.

During 2020, we engaged openly and transparently in public policy debate and made ourviews known to regulators, NGOs and other relevant stakeholders in the countries where
we operate.

Illegal Trade
We will engage in dialogue with law enforcement agencies, with the goal to exchange intelligence regarding illegal tobacco products, in order to support the
reduction of illegal tobacco products.

In 2021, our Anti-Illicit Trade team provided 1,627 intelligence reports to law enforcement
agencies, and advised 2,238 law enforcement officers on counterfeit recognition.

*1 T he above are targets for our tobacco business, except for Community investment which is a Group-wide target.
*2 Recordable injury rate = Recordable injuries/200,000 hours worked. Some data from newly acquired business have been excluded, as newly acquired business needs 18 months to integrate the JT Group Health and Safety Standards.
*3 Increase in emissions is due to increased leaf volume sourced from Zambia and Tanzania, where currently wood used for curing is predominately non-renewable. Initiatives are in place to improve curing barn efficiency, reduce wood consumption, and increase the proportion of renewable wood used. We expect that impact of these initiatives will be seenfrom 2022 onwards.
*4 ALP coverage in grower base is calculated based on the data reported by 97% of our leaf merchants.
*5 Growers from India and China are excluded.

Sustainability strategy of pharmaceutical business
Four strategic
focus areas

Aspirational goals

Targets

Progress

SDGs

Products and services

We will create innovative, original
drugs to support patients in the
shortest time possible.

Engaging in R&D Activities
We will continue our efforts and investments into research and development
activities of innovative drugs in specific therapeutic areas.

In March 2021, we received approval for an additional indication of iron deficiency anemia
for Riona® Tablets 250mg as well as approval for additional pediatric dosage and administration for CORECTIM® Ointment 0.5%.
In June 2021, we launched CORECTIM® Ointment 0.25%.
Throughout the year, we spent 29.0 billion Yen on our research and development activities.

PeopleWe will strive to nurture talent development which enables us to create first-in-class (FIC) drugs.

Fostering Ethical AwarenessIn order to develop talent and foster employees’ ethical awareness and sense of
responsibility towards saving patients, we will continue to learn more about
patients’ needs by engaging in dialogue with medical experts through ourinternal educational activity “For the Patients Project.”

In 2021, 11 employees took part in our “For the Patients Project” as facilitators. They interviewed health professionals and organized an internal online ethical awareness event.

Community Investment*
Between 2015 and 2030 we will invest US$600 million to help make communities
inclusive and resilient, with our employees contributing 300,000 volunteering
hours.

Since 2015, we invested US$399 million in our communities and employees volunteered
164,280 hours on company time.

2015

2021

399

600

Invest amount (MM USD)

2015

2021

164,280

We will strictly comply with all relevant laws, regulations, and industry
standards in order to deliver safe
drugs to patients.

2030

300,000

Volunteering hours

Product safety andresponsibility

2030

Responsible Promotion of Drugs
We will conduct, among others, regular training programs for our medical representatives in order to provide medical professionals with latest, appropriate information on pharmaceutical products.

After their initial training, all of our Medical Representatives take a mandatory e-learning
course once a month to keep their skills and knowledge up-to-date.

Greenhouse Gas Emissions
We will reduce greenhouse gas emissions from our own operations by 31%, between 2015 and 2030.

Since 2015, we have reduced greenhouse gas emissions from our own operations by 11%.

2015

2021

-11%
Greenhouse Gas emissions from our own operations

2030

-31%

In accordance with the update of the “JT Group Environment Plan 2030” in February 2022,
the GHG-related targets were updated as follows, and the progress will be published starting in 2023.
We strive to contribute to GHG emissions reduction as stated in the “JT Group Environment
Plan 2030”.
(Scope 1&2: 47% reduction against a 2019 base year; Category 1 of Scope 3: 28% reduction
against a 2019 base year)* Target for Community investment is a Group-wide target.

Sustainability strategy of processed food business
Four strategic
focus areas

Aspirational goals

Targets

Progress

Products and services

We will continue to provide
high-quality, technology-driven
products in response to our customer’s needs, to satisfaction and trust.

Improving Consumers’ Quality of LifeWe will develop and provide high-value-added products with a focus on“health,” “convenience,” and “diversity,” in response to diverse consumer needs.

In 2021, we launched 3 products that do not require a plate when cooked or served and thus
are convenient for consumers. In addition, our frozen and ambient foods, seasonings andbakery businesses rolled out the total of 10 new products that meet consumers’ growing
health consciousness, including low-salt products and those containing lactic acid bacteria.

PeopleWe will ensure workplace safety forour employees, while continuously
investing in people who cancontribute to enhancing corporate
value.

Enhance Job Satisfaction
We will further improve job satisfaction by promoting talent development in asecure and motivating workplace.

We have promoted new working styles such as remote working without restrictions on thenumber of working days and flexible working schedules without core hours. Thanks to therelevant initiatives, approximately 70% of the employees who are entitled to remote working
have adopted work from home. In 2021, workshops and training sessions were also organized
to improve communication among employees.

Zero Injuries
In line with our vision of zero workplace injuries, we will reduce injury rates by
25% by 2025 and 50% by 2030. (Baseline year: 2018)

Recordable injury rate*1 increased 24% from 0.90 in 2018 to 1.12 in 2021. Taking this result seriously, we are enhancing existing initiatives to achieve our vision of zero workplace injuries bythoroughly implementing action plans to prevent recurrence and improving safety awareness among our employees.

Community Investment*2
Between 2015 and 2030 we will invest US$600 million to help make communities inclusive and resilient, with our employees contributing 300,000 volunteering hours.

Since 2015, we invested US$399 million in our communities and employees volunteered
164,280 hours on company time.
2015

SDGs

2021

2030

399

600

Invest amount (MM USD)

2015

2021

2030

164,280

300,000

Volunteering hours

Supply chain

We will reduce social and environmental impacts and continue to deliver safe products to consumers.

Establishing Corporate Brand as Safe and Trustable Food Company
We will promote food safety management in compliance with global food safety standards to develop food safety. We will also enhance the way we communicate with customers so that they retain trust in our food quality.

We have carried out regular inspection in outsourced and our own factories. Also, throughinternal training programs, we try to raise awareness to improve the quality of our products.
In order to communicate with consumers and reflect their voice to our products, welaunched a new online tool to share consumer feedback with all employees.

Promoting Use of Eco-friendly Packaging Materials
We will promote the use of renewable plant-based resources and reduce ouruse of non-renewable resources, to reduce the environmental impact of our
products.

In order to reduce plastic use and carbon emissions, we undertook various initiatives acrossthe frozen and ambient foods, seasonings and bakery businesses, including discontinuing
the use of inner film for 4 frozen food products, reducing packaging materials, and replacing
drinking straws used in eating space at bakery stores by those made from biomass, which will
cut carbon emissions by 23%.

Waste
We will reduce the amount of waste associated with our Japanese domestic offices by an average of 1% per year. (Intensity target*3).

In 2021, we reduced the amount of waste per unit of production volume associated with ourJapanese domestic sites by 0.71% from 2020.

Greenhouse Gas Emissions
We will reduce greenhouse gas emissions from our own operations by 28%, between 2015 and 2030.

Since 2015, we have reduced greenhouse gas emissions from our own operations by 22%.

2015

Greenhouse Gas emissions from our own operations

2021

-22%

2030

-28%

In accordance with the update of the “JT Group Environment Plan 2030” in February 2022, theGHG-related targets were updated as follows, and the progress will be published starting in
2023.
We strive to contribute to GHG emissions reduction as stated in the “JT Group Environment
Plan 2030”.
(Scope 1&2: 47% reduction against a 2019 base year; Category 1 of Scope 3: 28% reduction
against a 2019 base year)*1 Recordable injury rate = Recordable injuries/200,000 hours worked.
*2 Target for Community investment is a Group-wide target.
*3 Intensity target = Amount of Waste per unit of Production volume