Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Welcome to your CDP Climate Change
Questionnaire 2023

C0. Introduction
C0.1(C0.1) Give a general description and introduction to your organization.
JT Group is a leading global tobacco company and our products are sold in over 130 markets.
We are also active in pharmaceutical and processed food businesses, and we expect them toestablish a foundation for future profit contribution, as we strive for sustainable growth.
Headquartered in Tokyo, JT is listed on the Tokyo Stock Exchange and our company
comprises three main business units: Tobacco business: headquartered in Geneva,
Switzerland since 2022, manufactures and offers tobacco products all over the world. Ourleading brands are Winston, Camel, MEVIUS and LD in combustibles, as well as Ploom and
Logic in RRP (Reduced-Risk Products). Pharmaceutical business: Our pharmaceuticalbusiness focuses on the R&D, manufacturing, and sale of prescription drugs, concentrating on
three specific therapeutic areas: Cardiovascular, Renal and Metabolism (CVRM); immunology;
and neuroscience. Processed food business: Our processed food business handles the frozen
and ambient food business, mainly for frozen noodles, frozen okonomiyaki (Japanese savory
pancakes), and packaged cooked rice, and the seasonings business, focusing on seasonings
including yeast extracts.

C0.2(C0.2) State the start and end date of the year for which you are reporting data andindicate whether you will be providing emissions data for past reporting years.
Reporting year
Start date
January 1, 2022

End date
December 31, 2022

Indicate if you are providing emissions data for past reporting years
No1Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

C0.3(C0.3) Select the countries/areas in which you operate.
Algeria
AndorraArmenia
Austria
Azerbaijan
Bangladesh
BelarusBelgium
Bolivia (Plurinational State of)BrazilBulgaria
Cambodia
CanadaChina
Colombia
Czechia
Denmark
Egypt
Ethiopia
FinlandFranceGeorgia
Germany
GreeceHong Kong SAR, China
Hungary
Indonesia
Iran (Islamic Republic of)
Ireland
Italy
Japan
JordanKazakhstan
Kyrgyzstan
LebanonLithuania
MalawiMalaysia
MexicoMongolia
MoroccoMyanmar
Netherlands
2Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Nigeria
NorwayPhilippines
PolandPortugal
Republic of Korea
Republic of Moldova
Romania
Russian Federation
SerbiaSingapore
Slovakia
South Africa
South Sudan
Spain
Sudan
SwedenSwitzerland
Taiwan, China
Tajikistan
ThailandTunisia
TurkeyUkraineUnited Arab Emirates
United Kingdom of Great Britain and Northern Ireland
United Republic of Tanzania
United States of America
Viet Nam
ZambiaC0.4(C0.4) Select the currency used for all financial information disclosed throughout yourresponse.
JPY

C0.5(C0.5) Select the option that describes the reporting boundary for which climaterelated impacts on your business are being reported. Note that this option shouldalign with your chosen approach for consolidating your GHG inventory.
Operational control3Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

C-AC0.6/C-FB0.6/C-PF0.6(C-AC0.6/C-FB0.6/C-PF0.6) Are emissions from agricultural/forestry,
processing/manufacturing, distribution activities or emissions from the consumptionof your products – whether in your direct operations or in other parts of your value
chain – relevant to your current CDP climate change disclosure?
Relevance
Agriculture/Forestry

Elsewhere in the value chain only
[Agriculture/Forestry/processing/manufacturing/Distribution only]

Processing/Manufacturing Both direct operations and elsewhere in the value chain[Processing/manufacturing/Distribution only]
Distribution

Both direct operations and elsewhere in the value chain[Processing/manufacturing/Distribution only]

Consumption

Yes [Consumption only]

C-AC0.6b/C-FB0.6b/C-PF0.6b(C-AC0.6b/C-FB0.6b/C-PF0.6b) Why are emissions from agricultural/forestry activities
undertaken on your own land not relevant to your current CDP climate change
disclosure?
Row 1
Primary reason
Evaluated but judged to be unimportant

Please explain
JT Group partially owns a small amount of land, but emissions related to these activities
are not material to our overall emissions

C-AC0.7/C-FB0.7/C-PF0.7(C-AC0.7/C-FB0.7/C-PF0.7) Which agricultural commodity(ies) that your organization
produces and/or sources are the most significant to your business by revenue?
Select up to five.

Agricultural commodity
Tobacco% of revenue dependent on this agricultural commodity
More than 80%

Produced or sourced
Sourced4

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Please explain
91.0% of JT Group’s revenue is dependent on tobacco. The remainder of the revenue
comes from pharmaceuticals (3.1%), processed foods (5.9%) and others (0.1%).
Tobacco accounts for a significant proportion of revenue and accounts for the majorityof emissions and so will be the only commodity presented in this response.

C0.8(C0.8) Does your organization have an ISIN code or another unique identifier (e.g.,
Ticker, CUSIP, etc.)?
Indicate whether you are able to provide a unique identifier foryour organization

Provide your unique
identifier

Yes, an ISIN code

JP3726800000

C1. GovernanceC1.1(C1.1) Is there board-level oversight of climate-related issues within yourorganization?
Yes

C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on theboard with responsibility for climate-related issues.
Position ofindividual orcommittee

Responsibilities for climate-related issues

Chief
Sustainability
Officer (CSO)

JT Group considers climate-related issues to be strategically important for ourbusiness. As such, high level board oversight is critical. The person directly
responsible for climate-related issues is the Chief Sustainability Officer (CSO) of
JT. This position reports directly to Representative Director and Executive Vice
President of JT on corporate, sustainability management, pharmaceutical andprocessed food business. The Representative Director and Executive Vice
President is Member of the Board also serving as Executive Officer. They are
directly responsible for developing and implementing strategies and plans for
Sustainability Management, including climate-related issues.
Based on societal expectations, the board members determined that it isnecessary to establish a long-term plan to tackle the environmental challenges
we face as a company and the society. Also, to better understand long-term risks
and opportunities from climate change, the board members decided that thebusiness would carry out Climate Scenario Analysis and endorsed therecommendations of the Task Force on Climate-related Financial Disclosures
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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023(TCFD). In 2021, the board members decided to set our new net zero target,
aiming to be net zero across our entire value chain by 2050, which was officiallyannounced in 2022.

C1.1b(C1.1b) Provide further details on the board’s oversight of climate-related issues.
Frequency withwhich climaterelated issues are ascheduled agenda
item

Governance
Please explain
mechanisms into whichclimate-related issues
are integrated

Scheduled – somemeetings

Reviewing and guiding
annual budgets

Climate-related issues are discussed in Board
level meetings 4 times a year as part ofOverseeing major capital environmental planning. This includes thefollowing:
expenditures
Overseeing and guiding
employee incentives
Reviewing and guiding
strategyOverseeing and guiding
the development of atransition plan

1) Review of Annual and Strategic Planning(ASP)
2) Approving the annual operation plan, which
includes the yearly environmental plan.
3) Review of previous year performance as partof the Board meeting in May
4) Review of Sustainability Strategy

Monitoring theimplementation of atransition plan

The governance mechanisms are implemented
within the four processes above, which contribute
Overseeing and guiding to the oversight of climate-related issues.
scenario analysis
Selected climate-related issues are integrated
Overseeing the setting of into these processes to manage governance.
corporate targets
Monitoring progress
towards corporate targets
Reviewing and guiding
the risk management
process

C1.1d(C1.1d) Does your organization have at least one board member with competence on
climate-related issues?
Board member(s)have competence on

Criteria used to assess competence of board member(s) on
climate-related issues

6Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

climate-related
issuesRow Yes1

Our board has members with expertise in the area of sustainability,
environment and society including climate-related issues, and wehave disclosed board member’s skills matrix. This matrix is based on
board members' past experience and the knowledge they havedeveloped through this experience.

C1.2(C1.2) Provide the highest management-level position(s) or committee(s) withresponsibility for climate-related issues.

Position or committee
Chief Sustainability Officer (CSO)

Climate-related responsibilities of this position
Managing annual budgets for climate mitigation activities
Developing a climate transition plan
Implementing a climate transition plan
Integrating climate-related issues into the strategy
Conducting climate-related scenario analysis
Setting climate-related corporate targets
Monitoring progress against climate-related corporate targets
Assessing climate-related risks and opportunities
Managing climate-related risks and opportunities

Coverage of responsibilities

Reporting line
Corporate Sustainability/CSR reporting line

Frequency of reporting to the board on climate-related issues via thisreporting line
Quarterly

Please explain
1) The Chief Sustainability Officer (CSO) is in charge of JTG Sustainability
Management. This position reports directly to the Representative Director and Executive
Vice President of JT who is directly responsible for developing and implementing
strategies and plans, including Climate-related issues.
2) We recognize climate-related issues are an important management issue to us aswell as our stakeholders and this is why responsibility for these issues lies at such asenior level.
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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

3) CSO is responsible for climate-related issue management and more broadly,
sustainability management. In 2019, among other responsibilities, CSO had oversight ofthe establishment of the renewed JTG Environment Plan, including the setting of ascience-based GHG emission reduction target subsequently validated by SBTi.
In December 2020, the company also has endorsed the recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD).The Sustainability function
monitors and assesses climate-related issues, coordinates activities, gathers data andprovides information to the JTG’s Board of Directors.
In 2021, new Net-Zero target was set, aiming to be net zero across our entire value
chain by 2050.
The near-term targets for 2030 was also set, which supports achieving the net zero by
2050, was validated by SBTi as being in line with 1.5℃ scenario in 2022.
Climate-related management activities and performance are reported to the Board 4
times a year, so that the Board can provide supervisions with; Annual and Strategic
Planning review, Annual operation plan approval, review of Sustainability Strategy andBoard meeting in May to review previous year performance.

C1.3(C1.3) Do you provide incentives for the management of climate-related issues,
including the attainment of targets?
Provide incentives
for the managementof climate-related
issuesRow Yes1

Comment

The remuneration for the directors who also serve as executive
officers is composed of base salary, executive bonus, restricted stock
remuneration plan and performance share unit plan (PSU). PSU is a
performance-linked stock compensation system that aims tostrengthen shared value with shareholders, to enhance company
value over the mid to long term and to commit to achieving businessresults over the mid-term. For the performance evaluation period
starting in 2022, we have decided to introduce an ESG-related index
on top of profit as KPIs for PSU. This index is introduced in order for
us (evaluatee) and shareholders (evaluator) to seek agreement on
what is conducive to corporate value. In 2022, we adopted ourprogress on initiatives to realize net zero as ESG-related index,
specifically target attainment rates to reduce GHG emissions.

C1.3a(C1.3a) Provide further details on the incentives provided for the management ofclimate-related issues (do not include the names of individuals).
8Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Entitled to incentive
Chief Executive Officer (CEO)Type of incentive
Monetary reward

Incentive(s)SharesPerformance indicator(s)Board approval of climate transition plan
Achievement of climate transition plan KPIProgress towards a climate-related target
Achievement of a climate-related target

Incentive plan(s) this incentive is linked toLong-Term Incentive Plan

Further details of incentive(s)Performance Share Unit Plan provides monetary remuneration claims to allot theCompany’s ordinary shares and cash as a performance-linked stock compensation. The
monetary remuneration claims and cash are calculated after the performance evaluation
period that is aligned with the duration of the Company’s three-year Business Plan thatstarts from the fiscal year. It is subject to provision in accordance with the rate ofachievement of performance and other targets during the Performance Evaluation
Period, which are determined through deliberations of the Advisory Panel on Nomination
and Compensation of the Company. Thus, the monetary remuneration claims to allot
ordinary shares of the Company and cash are provided to Eligible Persons for
Performance Share Units after the Performance Evaluation Period expires, in principle.

Explain how this incentive contributes to the implementation of yourorganization’s climate commitments and/or climate transition plan
The remuneration for the directors who also serve as executive officers, including theCEO, is composed of base salary, executive bonus, restricted stock remuneration planand performance share unit plan (PSU). PSU is a performance-linked stockcompensation system that aims to strengthen shared value with shareholders, toenhance company value over the mid to long term and to commit to achieving businessresults over the mid-term. For the performance evaluation period starting in 2022, wehave decided to introduce an ESG-related index on top of profit as KPIs for PSU. This
index is introduced in order for us (evaluatee) and shareholders (evaluator) to seek
agreement on what is conducive to corporate value. In 2022, we adopted our progress
on initiatives to realize net zero as ESG-related index, specifically target attainment
rates to reduce GHG emissions.

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C2. Risks and opportunities
C2.1(C2.1) Does your organization have a process for identifying, assessing, andresponding to climate-related risks and opportunities?
Yes

C2.1a
(C2.1a) How does your organization define short-, medium- and long-term time
horizons?
From(years)To(years)Comment

Short-term 03Consistent with the business’ 3-year annual planning cycle

Mediumterm

315

Consistent with the JT Group Environment Plan; the plan currently
in place is from 2015 to 2030.

Long-term 15

30

We have longer term commitments which are aligned with climatechange scenarios up to 2050 and with the Paris Agreement

C2.1b(C2.1b) How does your organization define substantive financial or strategic impact
on your business?
The JTG definition for substantive impact focuses on 3 key areas (which can be considered inisolation or combination):i) Financially: a materiality threshold of anything with an impact or estimated impact of 1 billion
Yen. Financial risk is judged by combining the following two factors: "magnitude of possible
impact" on our business and "likelihood of its occurrence."ii) Attention in the mainstream media (national or international outlets, such as press, television,etc.).
iii) Attention from shareholders who have a 1% or larger share in the business.

C2.2(C2.2) Describe your process(es) for identifying, assessing and responding to climaterelated risks and opportunities.

Value chain stage(s) covered
Direct operations
Upstream
Downstream

10Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Risk management process
Integrated into multi-disciplinary company-wide risk management process

Frequency of assessment
More than once a year

Time horizon(s) covered
Short-term
Medium-termLong-term

Description of processi) The JTG process for identifying risks and opportunities in our direct operations that
may have a material financial impact or strategic impact is embodied in the Group’s
Enterprise Risk Management (ERM) process. Business critical risks are identified aspart of JT Group’s ERM processes, in which various business functions are involved,
e.g. Corporate Strategy, Sustainability Management, JTI Finance-Corporate Controlling,
Processed Food Business Planning, Pharma Business Planning, etc. We identify risks
that could have impacts on the business, based on internal knowledge, regulations andresults of scenario analysis. Each function reviews the list of potential risks andassesses whether they exceed the threshold for the definition of “substantive impact on
the business”. In relation to climate related risks, the risk response and management
process incorporates plans to mitigate, transfer, accept or control climate related-risks
and to capitalize on opportunities. Where we can materially impact a risk, we decide toeither mitigate that risk or transfer the risk via insurance policy. In relation toopportunities, these are typically developed into business cases which if approved areincorporated into our Annual and Strategic Planning process.
ii) A case study of how the process has been applied to Physical risks and opportunities:
Climate-related risks, such as water availability, water stress, extreme weather events
etc., are further considered in our water risk assessment process of our manufacturing
sites. We have completed a water risk assessment of our manufacturing sites and haveidentified concerns that the sites further analyzed and addressed. We consider floodrisk through water risk assessments and insurance. We decide if we can control or
mitigate the flood risk through technical or procedural measures, e.g. in our factory inTurkey in 2021 we increased the siphonic drainage system capacity and installed a roof
membrane to prevent leakage into the tobacco leaf storage warehouse, and capacity ofthe drainage channels by making them wider and deeper to ensure the collection points
are not under the water level and cause backlog, to mitigate risk of flooding. However, incases where this is not possible, we adapt to the risk using flood insurance, for example
for the tobacco business in 2022 the annual cost was about 365 million Yen.
iii) A case study of how the process has been applied to transitional risks andopportunities: To address Article 8 of the EU Energy Efficiency Directive and thecompliance risk, we established a regional approach to energy audits. In many
countries, carbon tax schemes and/or further regulations on refrigerants are being
discussed. In order to avoid a significant increase in the business cost, we implement11Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

energy reduction activities across all sites in the group, look to use more renewableenergy and install more energy efficient facilities and/or move to the use of nonfluorocarbon systems. One of the examples is our Sweden factory that minimizes
emissions and energy consumption by combining green energy alternatives and costeffective energy-saving projects. It sources bio-steam from a nearby facility and uses a
steam-to-hot-water conversion system to heat the office, which contributed to a total
reduction of 37% of GHG emissions for this factory since 2015.
iv) Time horizon applied to the risk management process and frequency of assessment:
To ensure sustainable business growth, we conducted climate scenario analysis with along-term horizon (15-30 years), which identified the implications of the risks that weneed to consider in the medium term. This allows us to establish objectives and targets
that we need to achieve in the medium term to mitigate and adapt to identified risks. A
recent example is our Group Environment Plan. For achieving those objectives andtargets, we consider initiatives that need to be implemented in the short term.
All the above processes, as well as 1) Annual and Strategic Plan (short-term), 2)
Performance progress/results and 3) Initiatives, are reviewed by the Board at least 4
times a year. We have board oversight of other climate related issues, e.g. when an
extreme weather event occurs. Our ERM process, reviewed by the Board, identifies
climate-related risks in the short to medium-term, so that we can proactively address
those risks.
v) Other value chain stages
We identify, assess and respond to risks in the upstream stage of the value chain byasking our key suppliers of leaf, logistics and non-tobacco materials, equipment
manufacturers to respond to CDP Supply Chain. The risks identified are analyzed andmitigation measures developed accordingly.
Risks relating to our clients and customers: There is continued growth in consumer
interest and demand for products produced ethically and in an environmental andsustainable way. Company specific example: Recent JTG consumer research showsincreasing interest in the environmental impact of our products. Should the JTG's
stakeholders have the perception that we are not addressing issues such as climatechange and sustainability, this could potentially have a negative impact on our businessperformance. We regularly conduct studies to understand our consumer and their
expectations on Sustainability. We consider consumer as one of the key stakeholders
when setting our Sustainability strategy and developing new products. In 2022 we
introduced new Product Stewardship, Circularity and Waste pillar as a part of Corporate
sustainability. One of the focus area of this pillar is to identify risks relating to our clientsand customers, to set up clear strategy and execution plan. Furthermore, there havebeen the identified set of targets to reduce the environmental impact of our products andpackaging through design solutions, facilitating responsible collection and disposal, andconsumer awareness and education. Currently we are reviewing targets.

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

C2.2a(C2.2a) Which risk types are considered in your organization's climate-related risk
assessments?
Relevance & Please explain
inclusion
Current
regulation

Relevant,
alwaysincluded

JT Group operates across many countries globally and reviews current
regulation in those countries.
Company specific example: The EU and national governments havemandated targets for GHG emissions reduction and have cap andtrade schemes designed to achieve compliance with these targets inmany of our operating areas. We participate in the schemes currently
in locations affected by this legislation. The risk is that if schemes are
modified rapidly or changed significantly, organizations such as ours
risk being non-compliant if they do not adapt quickly enough.
Corporate and functional sustainability teams and relevant legal teams
are responsible for feeding regulatory information into company-widerisk assessment.
Company specific example: in Europe, our tobacco business is
obligated by the European Union Energy Efficiency Directive (EED).
The EED from 2012 established a set of measures to enable the EU tomeet its 20% energy efficiency target by 2020 and it was updated in2018 with a more stringent target and additional measures. We aretracking the implementation of the new Directive in the EU countries
where we operate and the requirements of energy audits in buildings
in countries where the legislation is yet to be updated. The risk is we
could incur additional time and cost associated with complying with theupdated legislation.

Emerging
regulation

Relevant,
sometimes
included

JT Group operates across many countries globally and reviews
emerging regulation in those countries. Corporate and functionalsustainability teams and relevant legal teams are responsible forfeeding regulatory information into company-wide risk assessment.
Company specific example: it is anticipated that there will be
increasing carbon taxation and/or the introduction of carbon trading
schemes in some countries where we operate, e.g. Brazil, Ukraine,
Indonesia, Turkey, amongst others. This will likely have financial
impact and bring additional compliance obligations for our businessand are therefore considered in our risk assessments.

Technology

Relevant,
alwaysincluded

We are actively investigating and monitoring renewable energy
technology which reduces our carbon footprint and our energy spend.
It has become even more important given JTG commitment to use
only renewable sourced energy by 2050.

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Legal

Relevant,
alwaysincluded

Legal risks are included in our climate scenario analysis, in our waterrisk assessments and in our Enterprise Risk Management approach,be it with respect to the potential impact of business on climate change
and water safety (e.g. compliance with regulatory requirements orconventional objectives), or to the potential impact that climate-relatedrisks may have on the business (e.g. heat stress or extreme weather
events impacting JTI employees or contractors). If climate-related risks
are not properly managed and appropriate mitigation measures put inplace, this could potentially represent a legal risk.

MarketRelevant,
alwaysincluded

As a business JT Group is reliant on the availability and quality of anumber of agricultural commodities that are affected by climate, suchas tobacco and paper.
Company specific example: Climate Change may cause the prices ofraw materials and fuels to increase, which could increase the price ofour products resulting in decreasing sales. On an annual basis, overall
trends in climate/weather are taken into consideration when discussing
and aligning best agronomic practices and best timings for leaf
production stages.
Business functions are responsible for providing information relevant
for company-wide risk assessment.

Reputation

Relevant,
alwaysincluded

There is increasing stakeholder interest in climate-related issues which
we factor into our planning and reporting process.
Company specific example: The JT Group’s 4S model outlines the 4
key groups of stakeholders with interest in our business: Consumers,
shareholders, employees, and wider society. There is increasing
interest around climate related issues from all of our stakeholders andthere is reputational risk if we do not appropriately manage theseissues. We use CDP Climate Change as a vehicle to communicate JT
Group climate governance to stakeholders.
Business functions are responsible for providing information relevant
for company-wide risk assessment.

AcutephysicalRelevant,
alwaysincluded

From time to time, we experience acute physical events that impact
our business. For example, extreme weather events, typhoons, floodsetc.
Company specific example: in 2021, one of our factories in the Middle
East experienced flooding. This resulted in operational impacts andadditional cost.
During 2020-2022 we have conducted country-specific climate
scenario analysis in relation to our operations in Brazil, Tanzania,
Bangladesh, Philippines, Zambia, USA, Turkey, Indonesia, Serbia,
Malawi and Poland. This has included modelling future acute physicalrisks such as extreme weather and flooding that could impact ouroperations.

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Business functions are responsible for providing information relevant
for company-wide risk assessment.
Chronic
physicalRelevant,
alwaysincluded

There are a number of chronic physical issues that could impact ourbusiness. For example: UN reports have established that one effect ofclimate change will be to increase the water stress of particulargeographical areas; there will be an increased risk of drought
depending on the area.
Water related issues could impact the JT Group as well as our
suppliers and consumers, leading to disruption of our business andnegatively impacting financial results.
Company specific example: One of our operations in the Middle Eastis located in a water stressed area. Identification of this issue has
allowed us to put in place mitigation measures to address the risk.
Climate change could result in making the Middle East more water
stressed, which impacts our operations with less water availability.
During 2020-2022 we have conducted country-specific climate
scenario analysis in relation to our operations in Brazil, Tanzania,
Bangladesh the Philippines, Zambia, USA, Turkey, Indonesia, Serbia,
Malawi and Poland. This has included modelling future chronic
physical risks such as future heatwaves and coastal flooding that could
impact our operations.
Business functions are responsible for providing information relevant
for company-wide risk assessment.

C2.3(C2.3) Have you identified any inherent climate-related risks with the potential to havea substantive financial or strategic impact on your business?
Yes

C2.3a
(C2.3a) Provide details of risks identified with the potential to have a substantive
financial or strategic impact on your business.

Identifier
Risk 1

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk driver
Emerging regulation
Carbon pricing mechanisms

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Primary potential financial impact
Other, please specify
Increased cost of products due to increased cost of raw materials and company tax
increased

Company-specific description
Increased carbon tax may increase procurement cost of tobacco leaf and othermaterials and services as well as additional company expenditures due to tax increase
for the Group’s direct operations. If a carbon tax is imposed on raw or secondary
materials or services used in each phase of the agricultural value chain (e.g. agriculturalchemicals, agricultural machineries, processing machineries, storage and distribution),then JT Group will bear additional cost and/or it will be transferred onto raw material
price.
We monitor emerging carbon pricing related regulation such as carbon tax. It is likelythat we will see increased carbon taxation levels in some countries where we operate,affecting our operating costs. For example, in Japan, where our group headquarters arelocated, the level is currently at 2.6USD / tCO2e. According to IEA World Economy
Outlook 2018, the level of carbon tax in developed countries in 2040 is anticipated to be
140 USD/tCO2 under a 2C global warming scenario and when it is the case also inJapan, it will pose a significant cost increase to our business. This risk was identified
through conducting a climate scenario analysis to identify long-term risks to 2050.

Time horizon
Long-term

Likelihood
Very likely

Magnitude of impact
Medium-low

Are you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)

Potential financial impact figure – minimum (currency)
650,000,000

Potential financial impact figure – maximum (currency)
7,500,000,000

Explanation of financial impact figure
In our climate scenario analysis, we assumed that under a 4C global warming scenario
carbon tax will increase to 36-43 USD/ton of GHG emissions, and based on 2C
scenario, to 125-140 USD per tons of GHG emissions in 2050, based on IEA World
Economy Outlook 2018.
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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

We calculate financial impact by multiplying forecast GHG emissions in 2050 in regions
where carbon tax may exist, by the carbon tax level in those locations. GHG emissions
in 2050 are predicted taking into account expected emission reduction and thecompany's sales growth. In the 4C scenario, the calculation was made assuming the EU
and Canada as the affected areas (105,502 tCO2e x 6,026 yen / tCO2e + 3,468 tCO2e
x 4,565 yen / tCO2e = 650 million yen). In the 2C scenario, the calculation was madeassuming developed and developing countries (245,004 tCO2e x 20,962 yen / tCO2e +119,810 tCO2e x 19,684 yen / tCO2e = 7.5 billion yen).

Cost of response to risk
1,493,700,000

Description of response and explanation of cost calculation
We manage this risk by reducing our energy consumption through capital investment
and energy saving programs as well as renewable energy programs (onsite generationof renewable energy, green energy purchase). The cost of responding to the risk was
calculated as 52,608 Yen / tCO2e saved (marginal abatement cost from 2022 capital
investment projects to reduce carbon) * carbon reductions needed to 2030 to meet ourenvironmental Plan 2030 GHG target (227,143 tCO2e) / 8 years (for annual costestimations) = 1,493.7 million yen.
Case study:
Emerging regulation and carbon pricing mechanisms are a potential risk for JTI,
therefore, we continue to implement multiple initiatives to reduce our emissions andenergy usage to mitigate the risk. For example, in Tanzania in 2022 we installed
photovoltaic solar energy generation. This helps use to reduce emissions by 441 tCO2e
annually and has a payback period of 10 years.

Comment
Nothing further to disclose.

Identifier
Risk 2

Where in the value chain does the risk driver occur?
Upstream

Risk type & Primary climate-related risk driver
Chronic physical
Other, please specify
Change in yield of tobacco leaf due to climate change

Primary potential financial impact
Increased direct costs

Company-specific description

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Changes in environmental conditions such as higher temperatures, erratic precipitation
patterns, more frequent and intense extreme events (drought, floods), El Nino and La
Nina intensity can impact availability and quality of key natural resources for sustainabletobacco leaf production and supply to JT Group, in addition to influencing crop
management practices to cope with these environmental changes (e.g. management ofpests and diseases occurrence). This could occur in one or more of our tobacco
sourcing countries, for example Bangladesh and Brazil from where we procure 39% of
our total tobacco leaf volume. As a result, the cost of sourcing tobacco leaf canincrease. This risk was identified through conducting a climate scenario analysis to
identify long-term risks to 2050 and using a 4C and a 2C scenarios.

Time horizon
Long-term

Likelihood
Very likely

Magnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)

Potential financial impact figure – minimum (currency)
32,300,000,000

Potential financial impact figure – maximum (currency)
36,700,000,000

Explanation of financial impact figure
We assume, that based on 4C global warming scenario tobacco leaf yield will change by-15.3% to +1.8% by 2050, and based on a 2C scenario by -13.7% to +6% by 2050. We
calculate financial impact by multiplying the procurement cost by country in 2018 by
production growth rate and by the cost change rate assuming fluctuation of yield bycountry where we source leaf. The main target countries are Brazil, the United States,
India, Tanzania, Malawi, Japan and Indonesia. The financial impact in the 4C scenario
was 36.7 billion yen, and in the 2C scenario it was 32.3 billion yen. The main countries
due to the cost increase were Brazil (4C: 15.9 billion, 2C: 14.2 billion) and India (4C: 7.1
billion, 2C: 4.4 billion).

Cost of response to risk
162,700,000

Description of response and explanation of cost calculation
We manage this risk by developing action plans to reduce financial impact to ourbusiness which could include shifting leaf growing regions based on identified climate-18

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

related impacts, implementing climate change adaptation measures, e.g. smart
agriculture and breeding, as well as measures to improve yield in growing regions, so as
to mitigate potential decrease in procurement volumes and increased costs.
Primarily, to date we have managed this risk via building strong relationships with our
suppliers and having a geographically diversified supply chain (for example, the JT
Group source tobacco leaf from over 30 different countries). Most importantly, the JT
Group regards growers and key suppliers as some of its most important partners.
Case study:
Within the tobacco business, we support growers to manage climate risk and otherforms of risk through selecting tobacco varieties with disease resistance relevant to local
conditions, financial assistance during incidents of natural disaster and via reforestation/ sustainable tree planting programs since 2012. In addition, we promote efficient use ofmaterials by continually reviewing the manufacturing process and product specifications
where possible. Moreover, in Japan, since 1978 we have operated a financial support
system to compensate tobacco farmers’ incomes whose tobacco plants/crops havesuffered from natural disasters, based on the degree of the damages. The system offers
financial support to tobacco growers so that they are not forced to cease production andtherefore improves the stability of our supply chain.
The primary financial costs for managing these risks come from Grower Support
Programs. In 2022, the JT Group spent about 162.7 million Yen globally on Grower
Support Programs.

Comment
Nothing further to disclose.

Identifier
Risk 3

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk driver
Acute physicalFlood (coastal, fluvial, pluvial, groundwater)

Primary potential financial impact
Decreased revenues due to reduced production capacity

Company-specific description
Some of our facilities are located in areas, for example, MENA countries, which could be
exposed to change in precipitation patterns that may cause increased
frequency/severity of flooding. This could lead to loss of production capacity which inturn could lead to losses in sales and therefore revenue. Company specific example: In
2021 our factory in Turkey had a significant risk of flooding due to heavy rainfall and19

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

poor water discharging systems from the roof of the leaf storage warehouse. The
increased intensity of rainfall has been attributed to changing climate in the region.

Time horizon
Long-term

Likelihood
More likely than not

Magnitude of impact
Medium-high

Are you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)

Potential financial impact figure – minimum (currency)
1,168,450,000

Potential financial impact figure – maximum (currency)
19,863,650,000

Explanation of financial impact figure
Financial impact was calculated based on potential loss of production capacity of atypical factory due to flooding resulting in loss of sales. Assuming 38 finished goods
factories in our tobacco business which had a revenue of 2,315,200 million yen in 2022.
17 out of 38 (45%) factories have a medium-high flood risk. As such for the purposes ofrisk calculation, assuming a typical medium-high risk factory is shut down for 7 days per
year due to flooding, the potential estimated range of financial impact is 1.169 billion yen(1 factory flooded: (2315200*0.45)/17/365*7) to 19.864 billion yen (the 17 medium-highrisk factories flooded (2315200*0.45)/365*7.

Cost of response to risk
404,748,000

Description of response and explanation of cost calculation
As part of our water risk assessments of factories we consider changing flood risks
which could be as a result of climate change. The outputs of these assessments areused to determine our mitigation measures.
Case study:
Flooding has been identified as a risk at some JTI factories. To mitigate against theflood risk measures have been implemented such as; business continuity plans,
physical flood mitigation infrastructure and insurance coverage. One of example, in
2021 in our factory in Turkey we installed a new drainage system and reinforced existingdrainage channels. Going forward, these improvements will reduce the risk of flooding
and therefore reduce potential impacts on production capacity. Cost of management
includes cost associated with water risk assessment (6.748 million yen), physical flood

20Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

mitigation infrastructure (33 million yen) and flood insurance premiums (365 million
Yen). Total cost to mitigate the risk is 6,748,000+ 33,000,000 + 365,000,000 =
404,748,000.

Comment
Nothing further to disclose.

Identifier
Risk 4

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk driver
Reputation
Shifts in consumer preferences

Primary potential financial impact
Decreased revenues due to reduced demand for products and services

Company-specific description
The JT Group produces tobacco, processed food and pharmaceutical products. There isan ongoing growth in consumer interest and demand for products produced ethicallyand in an environmental and sustainable way.
Company specific example: Perception by JTG consumers and external stakeholders
that we are not addressing issues such as climate change and sustainability could leadto reduced demand for our products leading to loss of revenue. Recent JTG consumer
research across ten key markets shows the increasing importance of sustainable
solutions in their product choices. For instance, based on that research online consumer
conversation around sustainability has increased by 194% from 2017-2020. Euromonitor
Lifestyles Surveys indicate increase in number of consumers globally that felt they could
make a difference to the world through their choices and actions up from 45% in 2015 to
54% in 2020.

Time horizon
Long-term

Likelihood
About as likely as not

Magnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)

21

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Potential financial impact figure – minimum (currency)
1,000,000,000

Potential financial impact figure – maximum (currency)
4,000,000,000

Explanation of financial impact figure
It is difficult to estimate financial implications of changing consumer behaviour acrossour diverse product range and markets. However, if a 0.05-0.15% reduction in consumer
demand and sales of our products occurred, it would result in a reduction in revenues ofapproximately 1-4 billion yen.

Cost of response to risk
705,100,000

Description of response and explanation of cost calculation
We provide information on JT Group’s commitment to the environment and managing
climate change related issues via our website and in external publications at least on
annual basis. By being transparent in these external communication channels, ourcustomers and shareholders are able to view information on our environmental progress
to date and future environmental priorities.
Case study:
Consumer demand for sustainable projects is a potential risk for JT. To mitigate against
this we continue to implement a range of environment-related community investment
programs and projects, key details of which are communicated publicly on our website.
For example, in 2019, we set up the global JTI Water, Sanitation and Hygiene (WASH)
initiative to support communities in developing markets with reliable access the world’s
most precious resource. Current WASH programs are executed in partnership withspecialized local and international organizations in countries diverse as Bangladesh,Indonesia, Ethiopia, Mexico and Bolivia. We also support and promote sustainableagricultural practices within our value chain – especially with local growers. These
initiatives improve both the social and environmental sustainability of our products.
Separately, we have undertaken Life Cycle Assessment (LCAs) on some of our
products to identify (and communicate publicly where necessary) reductions in theenvironmental footprint of our products in 2020-2022.
The costs associated with our annual Integrated Report 79.3 million yen and ourenvironment-related community investment programs were approximately 374.2 million
yen in 2022. Costs of our Grower Support Programs are 162.7million yen and to datecosts for undertaking our LCA projects are approximately 88.9 million yen (79.3 + 374.2+ 162.7+ 88.9= 705.1 million).

Comment
Nothing further to disclose.

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

C2.4(C2.4) Have you identified any climate-related opportunities with the potential to havea substantive financial or strategic impact on your business?
Yes

C2.4a
(C2.4a) Provide details of opportunities identified with the potential to have asubstantive financial or strategic impact on your business.

Identifier
Opp1

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Resource efficiency

Primary climate-related opportunity driver
Use of more efficient production and distribution processes

Primary potential financial impact
Reduced indirect (operating) costs

Company-specific description
There are a number of different drivers creating opportunities for further improvements
in resource efficiency and therefore cost efficiency. For example, greater societal
awareness of climate change risks has created demand for innovation, which is driving
down cost of technology enabling resource use reduction. We also consider that theregulatory drivers can become opportunity drivers for the JT Group. Rising of fuel/energy prices as a result of taxes may become a risk in an initial phase, but if we
respond to the risks, we can gain bigger benefits than the initial phases. The JT Groupis engaging in energy-saving initiatives with a group-wide cooperation, which include
implementation of capital investment projects at our facilities and promotion ofsustainability and carbon reduction across our value chain. By these efforts, we canreduce our future operational costs. Our tobacco business has initiated the developmentof formalized energy management systems with subsequent certification to ISO50001
across all manufacturing facilities. The overall objective was to deliver a further 5%
reduction in absolute carbon emissions (on top of that achieved through capital
investment projects) by 2020. Overall, we reduced emissions by 30% (2015-2022). In
Europe, our tobacco business is obligated by the introduction of The European Union
Energy Efficiency Directive (EED). The EED (updated in 2018) establishes a set ofmeasures to enable the EU to meet its 32.5% energy efficiency target by 2030. Article 8of the EED requires large enterprises in member countries to undertake energy audits23

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

every 4 years to identify potential energy reduction opportunities. Through the
combination of expanding geographical footprint (for example, our recent acquisitions in
Bangladesh, Ethiopia, Indonesia and Russia) and developments in technology, we
anticipate greater opportunities in resource efficiency.

Time horizon
Medium-term

Likelihood
Virtually certain

Magnitude of impact
Medium-low

Are you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)

Potential financial impact figure – minimum (currency)
60,000,000

Potential financial impact figure – maximum (currency)
70,000,000

Explanation of financial impact figure
Introduction of fuel/energy taxes is generally predicted to lead to increase in energy
costs. However, we expect that, by implementing energy-saving project/activities, ourfuture financial implications by this opportunity in terms of energy and cost savings will
result in the opposite results. We anticipate that the outcome of the energy audits in EU
Markets and development of formalized energy management systems with subsequentcertification to ISO 50001 are anticipated to deliver savings of approximately 60-70
million Yen annually across 38 of the tobacco production factories and EU markets. Thisestimation is based on a circa 1% energy cost saving on our total energy cost.

Cost to realize opportunity
11,000,000

Strategy to realize opportunity and explanation of cost calculation
Realizing these opportunities will primarily come through the identification andimplementation of energy reduction measures with associated cost savings. We reduceenergy consumption at all our sites by capital investment, behavioural / process change
and energy saving, through promotion of the EAP (Environment Annual Plan) andoperating the EMS (Environmental Management System) of the JT Group.
We are continuously investing in fuel and energy reduction activities. The costs
associated with developing formalized energy management systems with subsequentcertification to ISO 50001 are minimal and mainly relate to management time, training,24

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

certification and additional metering and measurements. Costs to date in relation to the
EED mainly relate to internal time and external expenditure to establish our compliancestrategy. In 2022 we conducted assessment against ISO 50001 at 3 locations, whichcost us about 11 million Yen. For next 4 years we plan to spend about 91.5 million Yen
for such assessments.
Case Study:
Process optimization has been identified as an opportunity for JT Group. To capitaliseon this, multiple initiatives were implemented in 2022. An example of this is the
update/replacement of machinery in the manufacturing sites in Jordan, Russia andMalawi. This results in improved efficiency and saved 230 tCO2e annually with apayback period between 4-10 years.

Comment
Costs presented exclude CAPEX costs such as those associated with the specificexamples. Cost represented for certification includes certification of Environment, Healthand Safety and Energy management system.

Identifier
Opp2

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Energy source

Primary climate-related opportunity driver
Use of lower-emission sources of energy

Primary potential financial impact
Reduced indirect (operating) costs

Company-specific description
There are a number of different drivers creating opportunities for the use of renewableenergy. For example, greater societal awareness of climate change risks has created ademand for innovation, and the cost of renewable energy generation is falling. We
believe that regulatory drivers can become opportunity drivers for JT Group. Increase incarbon taxation may become a risk initially, but the way we respond to the risk may give
us an opportunity; by increasing the proportion of renewable energy we buy or generate
ourselves. Already, the JT Group purchase renewable energy and low carbon energy inAustria, Belgium, Brazil, Greece, UK, Turkey, Switzerland, Canada, Germany, Serbia,
Philippines, Japan, the Netherlands, Poland, Romania, Sweden and generate
renewable energy in Brazil, the Philippines, Turkey, Tanzania, Jordan, Thailand,
Sweden, Japan, Malawi. We are also looking for new opportunities to use renewableenergy; currently, we have a commitment to use 50% of renewable electricity in ouroperation by 2030 and 100% by 2050 (as at the end of 2022 we were at 24%).
25

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Time horizon
Long-term

Likelihood
Very likely

Magnitude of impact
Medium-low

Are you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)

Potential financial impact figure – minimum (currency)
1,311,000,000

Potential financial impact figure – maximum (currency)
5,098,000,000

Explanation of financial impact figure
Introduction of carbon taxes is generally predicted to lead to an increase in operationalcost. We assumed that under a 4C global warming scenario, carbon tax will increase to
36-43 USD/ton of GHG emissions, and based on 2C scenario, to 125-140 USD per tonsof GHG emissions in 2050, based on IEA World Economy Outlook 2018. JTG has acommitment to use 100% of renewable electricity by 2050. We calculate financial impact
by multiplying current GHG emissions from electricity (276,638 tCO2e) by predicted tax
in 2050 (Minimum impact = 36*276,638 *131.62= 1,310,800 000, maximum impact =140*276,638*131.62= 5,097,553,490) (131.62 exchange rate USD/Yen).

Cost to realize opportunity
304,000,000

Strategy to realize opportunity and explanation of cost calculation
Realizing these opportunities will primarily come through the purchase and generation ofrenewable energy.
Case study:
To realise the opportunity of using lower emission energy sources in 2022 we
implemented two new renewable generation projects, one cogeneration of heat andpower and one installation of a photovoltaic system in Tanzania. Combined, theseprojects avoid 1,551 tCO2e per year. Renewable electricity cost in 2022 represented
108,378 USD (14,264,734 yen). We are continuously investing in renewable energy
generation projects. The CAPEX cost associated with these initiatives in 2022 was
2,201,000 USD (about 289,700,000 yen). In total about 304 million yen(14,264,734+289,700,000).

Comment
26

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Nothing further to disclose.

Identifier
Opp3

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Products and services

Primary climate-related opportunity driver
Shift in consumer preferences

Primary potential financial impact
Increased revenues resulting from increased demand for products and services

Company-specific description
The JT Group produces tobacco, processed food and pharmaceutical products.
Through our research into consumer understanding of sustainability we have confirmedthat there is increasing consumer interest and demand for products produced ethicallyand sustainably including lower carbon. 33% of consumers confirmed that products andprocesses that use / create minimal or no carbon is a consideration in their decisionmaking. Therefore, by differentiating our products from competitors by promoting oursustainable agriculture activities and by continuing to reduce the environmental impact
in our own operations, we could increase revenue and market share of our existingproducts. Regarding sustainable agricultural practices, an example is Market Match,promoted to our growers in Zambia and Malawi, which encourages seasonal crop
rotations by matching our growers to viable global market off-takers of non-tobacco
commodity crops e.g. groundnuts, maize, or soya. The benefits of this are additional
income, improved food security, and soil conservation.

Time horizon
Long-term

Likelihood
About as likely as not

Magnitude of impact
Medium-high

Are you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)

Potential financial impact figure – minimum (currency)
27

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

1,000,000,000

Potential financial impact figure – maximum (currency)
4,000,000,000

Explanation of financial impact figure
It is difficult to estimate financial implications of changing consumer behaviour acrossour diverse product range and markets. However, if a 0.05-0.15% increase in consumer
demand for our products and sales occurred, it would result in an increase in revenuesof approximately 1-4 billion yen. For context, our total revenue in 2022 was 2,657,800
MM Yen.

Cost to realize opportunity
705,100,000

Strategy to realize opportunity and explanation of cost calculation
We provide information on our commitment to the environment and managing climatechange related issues via our website and in external publications on annual basis. In
addition, we continue to implement a range of environment-related community
investment programs and projects. We also manage this opportunity by supporting andpromoting sustainable agricultural practices within our value chain – especially with local
growers. We have undertaken Life Cycle Assessment (LCAs) in 2020-2022 on some ofour products to identify (and communicate where necessary) reductions in theenvironmental footprint of our products.
The costs associated with our annual Integrated Report 79.3 million yen and ourenvironment-related community investment programs were approximately 374.2 million
yen in 2022. Cost of our international Grower Support Programs is 162.7 million yen andto date costs for undertaking our LCA projects are approximately 88.9 million yen todate. An example of our response to changing consumer preference for moresustainable products is our 2016 acquisition of Natural American Spirit. (79.3 + 374.2 +162.7 + 88.9 = 705.1 million yen).

Comment
Cost presented exclude those associated with the acquisition of Natural American Spirit(560 billion yen).

C3. Business Strategy
C3.1(C3.1) Does your organization’s strategy include a climate transition plan that aligns
with a 1.5°C world?
Row 1
Climate transition planYes, we have a climate transition plan which aligns with a 1.5°C world28

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Publicly available climate transition plan
Yes

Mechanism by which feedback is collected from shareholders on your climatetransition plan
We have a different feedback mechanism in place

Description of feedback mechanism
We have the opportunity to meet with each of our various shareholders throughout theyear to collect feedback on our environmental goals and initiatives, including ourtransition plan.

Frequency of feedback collectionMore frequently than annually

Attach any relevant documents which detail your climate transition plan
(optional)
JTGNetZero.pdf
JTGNetZero.pdf

C3.2(C3.2) Does your organization use climate-related scenario analysis to inform its
strategy?
Use of climate-related scenario analysis to inform strategy
Row 1

Yes, qualitative and quantitative

C3.2a(C3.2a) Provide details of your organization’s use of climate-related scenario analysis.
Climaterelated
scenario

Scenario
analysiscoverage

Physicalclimatescenarios
RCP 8.5

Other, please
specify

Transition
scenarios
IEA SDS

Company-wide

Business
wide,
Country/area

Temperaturealignment of
scenarioParameters, assumptions, analytical choices

We have conducted country specific physicalclimate modelling on 11 countries during 20202022. For modelling we focused on operations
within each country and conducted RCP2.6 and
RCP8.5 scenario modelling with a timeframe up to
2040. Analysis was qualitative & quantitative
looking at the changes in: extreme rainfall, coastal
flooding, heatwaves & water stress, and theoccurrence of extreme weather.
We conducted a scenario analysis in the tobaccoand processed food businesses, which account for
more than 95% of our sales. We selected the rising29

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

price of carbon taxes as one of the transition risks
affecting the business. Based on the IEA SDS
scenario, we quantitatively analyzed the impact on
our business by assuming a carbon price in 2050.
Physicalclimatescenarios
RCP 6.0

Company-wide

We conducted a scenario analysis in the tobaccoand processed food businesses, which account for
more than 95% of our sales. We selected changes
in leaf tobacco yield as one of the physical risks
affecting the business. Based on the RCP 6.0
scenario, we quantitatively analyzed the impact on
our business by assuming the tobacco leaf yield in
2050.

Transition
scenarios
IEA NZE
2050

Company-wide

We conducted a scenario analysis in our entire
business. We selected the rising price of carbon
taxes as one of the transition risks affecting thebusiness. Based on the IEA NZE 2050 scenario, wequantitatively analyzed the impact on our businessby assuming a carbon price in 2050.

C3.2b(C3.2b) Provide details of the focal questions your organization seeks to address byusing climate-related scenario analysis, and summarize the results with respect tothese questions.
Row 1
Focal questions
JTI country specific modelling
The country specific modelling has been focused on assessing if and how ouroperations could be impacted by climate change in the future for both a 2C world as well
as a +4C scenario. We have prioritized countries that are our largest sources for directly
contracted growers and third party sourced leaf.
The second question was understanding which stage of our operations (leaf growing,
our factories, or our markets) had the highest exposure to physical climate change ineach country.
Our third primary focal question is how resilient our operations currently are and theadaptation options available to us where the modelling has identified physical climatechange could impact us materially.

Results of the climate-related scenario analysis with respect to the focal
questions30

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

JTI country specific modelling:
Since 2020 we have completed scenario modelling in 11 countries across 5 continents(Europe, North America, South America, Africa and Asia). Through these scenarios wehave identified which physical climate risks have the potential to impact our operations
by 2040. For example, we identified that sea-level rise will, for the most part, not impact
our operations in either a 2C or +4C scenario. The modelling has helped us tounderstand this risk has the potential to affect one south-east Asian country and within
this country sea level rise is projected to affect less than a third of our operational sites.
IPCC’s RCP2.6 and RCP8.5 scenarios were selected for modelling so the risk impacts
could be assessed across both a <2°C and a 4°C scenario, aligning to therecommendation of the TCFD.
Climate Scenario Analysis has provided JTI a picture of the physical risks faced by thebusiness which has informed the inclusion of climate related risk as an enterprise levelrisk through our business. In turn climate related risks are incorporated into ourenterprise risk management program.
The modelling has also helped us understand which risks affect which stage of ouroperations most per risk and in each country. Functions and locations are required toassess climate related risks for inclusion in their risk inventories and risk assessments.
For example, we understand that hurricanes pose the greatest threat to tobacco
growers in North America while heat stress is more likely to impact our factories andmarkets in Africa and Asia.
Finally, we used the results to consult with local teams and understand what mitigation
options are being looked at or currently implemented to understand resilience.
Adaptation and mitigation actions identified through the risk assessment process areincorporated into the three-year annual and strategic planning processes. An example ofresilience in our operations through risk mitigation can be found at one of our factories inNorth America. The factory roof was identified as needing upgrading in the short term towithstand higher winds and rainfall caused by extreme storms. This work is currently
being done and is expected to be completed in 2023. Equally, we’ve found that in
multiple countries the warehouses & offices our market functions use are flexible
geographically and could be relocated to new premises less likely to be impacted byclimate impacts such as river flooding or typhoons.

C3.3(C3.3) Describe where and how climate-related risks and opportunities haveinfluenced your strategy.
Have climate-relatedrisks andopportunities

Description of influence31

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

influenced yourstrategy in this area?
Products and Yes
services

How have climate-related risks influenced the strategy: The
JT Group has ongoing projects within the business to
reduce carbon impact of our product and packaging.
Case study and time horizon: In 2021 we introduced new
targets in our Environment Plan 2030 in relation to productand packaging waste: We will reduce the environmental
impact of our products and packaging through: Redesigning
our products and packaging, facilitating responsible
collection and disposal of used products and packaging,encouraging consumers to dispose of our products andpackaging responsibly. More specifically, we will reduce our
packaging (including plastic) and ensure that the remaining
is 88% reusable or recyclable by 2025, rising to 100% by2030, and, in total, recycled content accounts for 20% of
our tobacco business packaging by 2025.
JTG established new Product Stewardship, Circularity andWaste pillar as a part of Corporate Sustainability in tobacco
business, who set company strategy and provide direction
to development and marketing of products & services with
aim to minimizing their environmental impact. Crossfunctional teams work on initiatives roadmaps to help fulfill
targets.
Since 2021 we work on global initiatives roll out. Firstly, we
replaced aluminum inner liners in cigarette packaging withpaper ones. It improves recyclability and reduces emissions
associated with packaging materials purchased. Secondly,
we reduced the volume of cardboard used in packaging byusing lighter weight board. It reduces emissions byapproximately 2,186 tons each year. Thirdly, we have
reduced the thickness of polypropylene overwraps, itenables us to reduce our use of fossil-based plastic as well
as reducing emissions by up to 769 tons. With fourth
initiative we are focusing on using 100% recycled content inshipping cases for transportation within domestic markets
and 70% for export markets for our products across ourfactories and markets by 2025. It contributes to reduction ofcarbon impact of each shipping case we use.
Another example, in several markets we launched newcontainers for our Winston Make Your Own product, whichenable us to save 369 tons of plastics per year and reduces
the carbon impact of each box. In addition, we continue
conducting series of LCAs to identify hot spots and further

32

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

opportunities for carbon impact reduction across our
product and packaging mix.
Supply chain Yes
and/or value
chain

How have climate-related risks influenced the strategy: JT
Group decided to include Scope 3 (supply chain) emissions
reduction targets in our JTG Environment Plan 2030 andthe tobacco business Sustainability Strategy with time
horizon to 2030.
Case study: In the JTG Tobacco Sustainability Strategy we
now have a target related to emissions reduction associatedwith purchased goods and services. We will reduce
emissions associated with our purchased goods andservices by 28% in 2030 comparing to 2019. This will beachieved through reduction from our leaf supply chain andreductions in our non-tobacco materials, such as
packaging. Each of our direct leaf sourcing origins hasdeveloped an action plan to help achieve the 2030 target.
Currently we already achieved 13% reduction in scope 3
category 1 emissions against a 2019 baseline.

Investment in Yes
R&D

How have climate-related risks influenced the strategy: JTG
now gives increased consideration to the carbon impacts in
product and packaging design and materials, in line with ourcommitment in our JTG Environment Plan 2030 to further
reduce the environmental impacts of waste associated with
our processes and products. Time horizon is 2030, in linewith our JTG Environmental Plan.
Case study: in 2019-2022 our tobacco business R&D
function invested in building an LCA model to better
understand the carbon impacts of our conventional andreduced risk product packaging and to identify the focus
areas to reduce emissions associated with tobacco productpackaging. Going forward, R&D is implementing measuresrelated to hotspots identified and is expanding the use of
LCAs to other packaging types. The next phases of thiswork are currently underway and are planned to becompleted by 2023.

Operations

How have climate-related risks influenced the strategy: JT
Group revisited targets for emission reductions andrenewables in the JTG Environment Plan 2030: We will
reduce greenhouse gas emissions from our own operations
by 47% by 2030 compared to 2019 and we will increase
proportion of renewable electricity that we use to 50% by
2030 and 100% by 2050. We plan to achieve these targets
by time horizon of 2030 through energy reduction initiatives,
renewable energy generation and purchase as well GHG
emission reduction from our fleet vehicles e.g. procurement

Yes

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

of green fleet vehicles. Currently we already achieved 16%.
Case Study: Through our Environment Opportunities
Scheme, our factories have identified and invested in morethan 269 projects with total investment of 65 million Yen.
Total savings amounted about 263 million Yen. This had an
overall simple payback of approximately 3 months. The total
carbon saved is about 7,000 tCO2e per annum.

C3.4(C3.4) Describe where and how climate-related risks and opportunities haveinfluenced your financial planning.
Financial planning Description of influence
elements that havebeen influenced
Row Revenues
1
Direct costs

The description of influence for each financial planning elements(including case study and time horizon) are as below:

Capital expenditures
Acquisitions anddivestments
Assets1) Revenues
Flood insurance within JT Group includes lost revenue. Insurance
premiums are factored into annual operating costs. One of our thirdparty manufacturers previously experienced a flood at the factory which
affected production in 2018. JT Group revenues were impacted for 7
months with estimated impact of 300 million yen. This was an insured
loss. We view the potential magnitude of this impact to be medium. Thisis considered over a short & medium time horizon.
2) Direct costs
Costs associated with EU-ETS and cap and trade schemes, as withother operating costs, are included in the Annual and Strategic Plans(ASP) of relevant factories. For example, 314 million yen was included in
the ASP plans for our German facility. If operating costs arise from theidentification of risks, budget can be requested and approved throughthe BAP (Business Approval Process) system. We view the potential
magnitude of this impact to be low. This is considered over a short time
horizon.
3) Capital expenditures
If capital expenditures arise from the identification of risks, budget canbe requested and approved through the BAP (Business Approval
Process) system. We also seek to identify opportunities that reducecarbon emissions and cost at the same time. One of the examples is ourfactory in Jordan. Thanks to solar steam generation, the factory cancover the majority of its thermal energy demands for tobacco processing
and convert part of the solar energy into energy for building heating andfor cooling. This reduces the factory’s annual carbon footprint over 100
tons and energy cost. Although the direct financial impact for the34

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Company is low, the environmental impact is viewed as medium andhence through improved reputation there is a potential for indirect
financial impact to be medium. This is considered over a short &medium & long-time horizon
4) Acquisitions and divestments
Factored into the JT Group business integration planning processes, thecosts for which are captured and approved through the BAP (BusinessApproval Process) system. In particular, we are expanding our
geographical footprint and this could increase our carbon footprint. As
the company is committed to tackling climate-related issues, we also
consider how to reduce emissions at those acquired operations throughour financial planning process. In addition, we specifically consider
sustainability issues within our due diligence processes. In one of ourrecent acquisitions, we specifically considered and assessed climaterelated risks (including natural disasters). For this particular acquisition it
was viewed as a high impact. For the business overall it is viewed as
medium impact.
5) Assets
Some of JT Group’s assets are at risk from climate-related flooding. We
insure against this risk. The annual cost of insuring our direct operations
against flooding is factored into our financial planning. In 2022, the costof flood-specific insurance was about 365 million yen. We view thepotential magnitude of this impact to be medium. This is considered overa short & medium time horizon.

C3.5(C3.5) In your organization’s financial accounting, do you identify spending/revenue
that is aligned with your organization’s climate transition?
Identification of spending/revenue that is aligned with your organization’s climatetransitionRow
1No, but we plan to in the next two years

C4. Targets and performance
C4.1(C4.1) Did you have an emissions target that was active in the reporting year?
Absolute target

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

C4.1a(C4.1a) Provide details of your absolute emissions target(s) and progress madeagainst those targets.

Target reference number
Abs 1

Is this a science-based target?
Yes, and this target has been approved by the Science Based Targets initiative

Target ambition
1.5°C aligned

Year target was set
2021

Target coverage
Company-wide

Scope(s)Scope 1
Scope 2

Scope 2 accounting method
Market-based

Scope 3 category(ies)Base year
2019

Base year Scope 1 emissions covered by target (metric tons CO2e)368,175.88

Base year Scope 2 emissions covered by target (metric tons CO2e)
367,026.046

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target (metric tons CO2e)

Base year Scope 3, Category 2: Capital goods emissions covered by target(metric tons CO2e)36

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 4: Upstream transportation and distribution
emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target (metric tons CO2e)

Base year Scope 3, Category 6: Business travel emissions covered by target(metric tons CO2e)

Base year Scope 3, Category 7: Employee commuting emissions covered bytarget (metric tons CO2e)

Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget (metric tons CO2e)

Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 10: Processing of sold products emissions
covered by target (metric tons CO2e)

Base year Scope 3, Category 11: Use of sold products emissions covered bytarget (metric tons CO2e)

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target (metric tons CO2e)

Base year Scope 3, Category 14: Franchises emissions covered by target(metric tons CO2e)

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Base year Scope 3, Category 15: Investments emissions covered by target(metric tons CO2e)

Base year Scope 3, Other (upstream) emissions covered by target (metric tons
CO2e)Base year Scope 3, Other (downstream) emissions covered by target (metrictons CO2e)

Base year total Scope 3 emissions covered by target (metric tons CO2e)

Total base year emissions covered by target in all selected Scopes (metrictons CO2e)735,201.926

Base year Scope 1 emissions covered by target as % of total base year
emissions in Scope 1
100

Base year Scope 2 emissions covered by target as % of total base year
emissions in Scope 2
100

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target as % of total base year emissions in Scope 3, Category 1:
Purchased goods and services (metric tons CO2e)

Base year Scope 3, Category 2: Capital goods emissions covered by target
as % of total base year emissions in Scope 3, Category 2: Capital goods(metric tons CO2e)

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target as % of total base year
emissions in Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) (metric tons CO2e)

Base year Scope 3, Category 4: Upstream transportation and distribution
covered by target as % of total base year emissions in Scope 3, Category 4:
Upstream transportation and distribution (metric tons CO2e)

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target as % of total base year emissions in Scope 3, Category 5:
Waste generated in operations (metric tons CO2e)

Base year Scope 3, Category 6: Business travel emissions covered by target
as % of total base year emissions in Scope 3, Category 6: Business travel(metric tons CO2e)

Base year Scope 3, Category 7: Employee commuting covered by target as %of total base year emissions in Scope 3, Category 7: Employee commuting(metric tons CO2e)

Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget as % of total base year emissions in Scope 3, Category 8: Upstream
leased assets (metric tons CO2e)

Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target as % of total base year emissions in Scope 3,
Category 9: Downstream transportation and distribution (metric tons CO2e)

Base year Scope 3, Category 10: Processing of sold products emissions
covered by target as % of total base year emissions in Scope 3, Category 10:
Processing of sold products (metric tons CO2e)

Base year Scope 3, Category 11: Use of sold products emissions covered bytarget as % of total base year emissions in Scope 3, Category 11: Use of soldproducts (metric tons CO2e)

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target as % of total base year emissions in Scope 3,
Category 12: End-of-life treatment of sold products (metric tons CO2e)

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target as % of total base year emissions in Scope 3, Category 13:
Downstream leased assets (metric tons CO2e)

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Base year Scope 3, Category 14: Franchises emissions covered by target as %of total base year emissions in Scope 3, Category 14: Franchises (metric tons
CO2e)Base year Scope 3, Category 15: Investments emissions covered by target
as % of total base year emissions in Scope 3, Category 15: Investments(metric tons CO2e)

Base year Scope 3, Other (upstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (upstream) (metric tons CO2e)

Base year Scope 3, Other (downstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (downstream) (metric tons CO2e)

Base year total Scope 3 emissions covered by target as % of total base year
emissions in Scope 3 (in all Scope 3 categories)

Base year emissions covered by target in all selected Scopes as % of total
base year emissions in all selected Scopes
100

Target year
2030

Targeted reduction from base year (%)
47

Total emissions in target year covered by target in all selected Scopes (metrictons CO2e) [auto-calculated]
389,657.02078

Scope 1 emissions in reporting year covered by target (metric tons CO2e)
340,162.17

Scope 2 emissions in reporting year covered by target (metric tons CO2e)276,638.021

Scope 3, Category 1: Purchased goods and services emissions in reporting
year covered by target (metric tons CO2e)

Scope 3, Category 2: Capital goods emissions in reporting year covered bytarget (metric tons CO2e)40

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Scope 3, Category 3: Fuel-and-energy-related activities (not included in
Scopes 1 or 2) emissions in reporting year covered by target (metric tons
CO2e)

Scope 3, Category 4: Upstream transportation and distribution emissions inreporting year covered by target (metric tons CO2e)

Scope 3, Category 5: Waste generated in operations emissions in reporting
year covered by target (metric tons CO2e)

Scope 3, Category 6: Business travel emissions in reporting year covered bytarget (metric tons CO2e)

Scope 3, Category 7: Employee commuting emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 8: Upstream leased assets emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 9: Downstream transportation and distribution emissions
in reporting year covered by target (metric tons CO2e)

Scope 3, Category 10: Processing of sold products emissions in reporting
year covered by target (metric tons CO2e)

Scope 3, Category 11: Use of sold products emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 12: End-of-life treatment of sold products emissions inreporting year covered by target (metric tons CO2e)

Scope 3, Category 13: Downstream leased assets emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 14: Franchises emissions in reporting year covered bytarget (metric tons CO2e)

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Scope 3, Category 15: Investments emissions in reporting year covered bytarget (metric tons CO2e)

Scope 3, Other (upstream) emissions in reporting year covered by target(metric tons CO2e)

Scope 3, Other (downstream) emissions in reporting year covered by target(metric tons CO2e)

Total Scope 3 emissions in reporting year covered by target (metric tons
CO2e)Total emissions in reporting year covered by target in all selected scopes(metric tons CO2e)616,800.191

Does this target cover any land-related emissions?
No, it does not cover any land-related emissions (e.g. non-FLAG SBT)

% of target achieved relative to base year [auto-calculated]
34.2652237702

Target status in reporting year
Underway

Please explain target coverage and identify any exclusions
Based on the SBTi criteria, a more ambitious GHG emissions target has been set in
2021. This target has been validated by the SBT initiative in 2022.

Plan for achieving target, and progress made to the end of the reporting year
Targets to increase the proportion of renewable electricity that we use to 50% by 2030
and 100% by 2050. In 2021 23% renewable electricity was used. There has been a 12%
decrease in S1&2 emissions since 2019.

List the emissions reduction initiatives which contributed most to achieving
this target

Target reference number
Abs 2

Is this a science-based target?
Yes, and this target has been approved by the Science Based Targets initiative42

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Target ambition
1.5°C aligned

Year target was set
2021

Target coverage
Company-wide

Scope(s)Scope 3

Scope 2 accounting method

Scope 3 category(ies)Category 1: Purchased goods and services

Base year
2019

Base year Scope 1 emissions covered by target (metric tons CO2e)

Base year Scope 2 emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target (metric tons CO2e)
7,793,345.697

Base year Scope 3, Category 2: Capital goods emissions covered by target(metric tons CO2e)

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 4: Upstream transportation and distribution
emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target (metric tons CO2e)

Base year Scope 3, Category 6: Business travel emissions covered by target(metric tons CO2e)

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Base year Scope 3, Category 7: Employee commuting emissions covered bytarget (metric tons CO2e)

Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget (metric tons CO2e)

Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 10: Processing of sold products emissions
covered by target (metric tons CO2e)

Base year Scope 3, Category 11: Use of sold products emissions covered bytarget (metric tons CO2e)

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target (metric tons CO2e)

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target (metric tons CO2e)

Base year Scope 3, Category 14: Franchises emissions covered by target(metric tons CO2e)

Base year Scope 3, Category 15: Investments emissions covered by target(metric tons CO2e)

Base year Scope 3, Other (upstream) emissions covered by target (metric tons
CO2e)Base year Scope 3, Other (downstream) emissions covered by target (metrictons CO2e)

Base year total Scope 3 emissions covered by target (metric tons CO2e)
7,793,345.697

Total base year emissions covered by target in all selected Scopes (metrictons CO2e)
44

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

7,793,345.697

Base year Scope 1 emissions covered by target as % of total base year
emissions in Scope 1

Base year Scope 2 emissions covered by target as % of total base year
emissions in Scope 2

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target as % of total base year emissions in Scope 3, Category 1:
Purchased goods and services (metric tons CO2e)
83

Base year Scope 3, Category 2: Capital goods emissions covered by target
as % of total base year emissions in Scope 3, Category 2: Capital goods(metric tons CO2e)

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target as % of total base year
emissions in Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) (metric tons CO2e)

Base year Scope 3, Category 4: Upstream transportation and distribution
covered by target as % of total base year emissions in Scope 3, Category 4:
Upstream transportation and distribution (metric tons CO2e)

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target as % of total base year emissions in Scope 3, Category 5:
Waste generated in operations (metric tons CO2e)

Base year Scope 3, Category 6: Business travel emissions covered by target
as % of total base year emissions in Scope 3, Category 6: Business travel(metric tons CO2e)

Base year Scope 3, Category 7: Employee commuting covered by target as %of total base year emissions in Scope 3, Category 7: Employee commuting(metric tons CO2e)45

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget as % of total base year emissions in Scope 3, Category 8: Upstream
leased assets (metric tons CO2e)

Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target as % of total base year emissions in Scope 3,
Category 9: Downstream transportation and distribution (metric tons CO2e)

Base year Scope 3, Category 10: Processing of sold products emissions
covered by target as % of total base year emissions in Scope 3, Category 10:
Processing of sold products (metric tons CO2e)

Base year Scope 3, Category 11: Use of sold products emissions covered bytarget as % of total base year emissions in Scope 3, Category 11: Use of soldproducts (metric tons CO2e)

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target as % of total base year emissions in Scope 3,
Category 12: End-of-life treatment of sold products (metric tons CO2e)

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target as % of total base year emissions in Scope 3, Category 13:
Downstream leased assets (metric tons CO2e)

Base year Scope 3, Category 14: Franchises emissions covered by target as %of total base year emissions in Scope 3, Category 14: Franchises (metric tons
CO2e)Base year Scope 3, Category 15: Investments emissions covered by target
as % of total base year emissions in Scope 3, Category 15: Investments(metric tons CO2e)

Base year Scope 3, Other (upstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (upstream) (metric tons CO2e)

Base year Scope 3, Other (downstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (downstream) (metric tons CO2e)46

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Base year total Scope 3 emissions covered by target as % of total base year
emissions in Scope 3 (in all Scope 3 categories)
83

Base year emissions covered by target in all selected Scopes as % of total
base year emissions in all selected Scopes
83

Target year
2030

Targeted reduction from base year (%)
28

Total emissions in target year covered by target in all selected Scopes (metrictons CO2e) [auto-calculated]
5,611,208.90184

Scope 1 emissions in reporting year covered by target (metric tons CO2e)

Scope 2 emissions in reporting year covered by target (metric tons CO2e)

Scope 3, Category 1: Purchased goods and services emissions in reporting
year covered by target (metric tons CO2e)6,960,397.207

Scope 3, Category 2: Capital goods emissions in reporting year covered bytarget (metric tons CO2e)

Scope 3, Category 3: Fuel-and-energy-related activities (not included in
Scopes 1 or 2) emissions in reporting year covered by target (metric tons
CO2e)

Scope 3, Category 4: Upstream transportation and distribution emissions inreporting year covered by target (metric tons CO2e)

Scope 3, Category 5: Waste generated in operations emissions in reporting
year covered by target (metric tons CO2e)

Scope 3, Category 6: Business travel emissions in reporting year covered bytarget (metric tons CO2e)

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Scope 3, Category 7: Employee commuting emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 8: Upstream leased assets emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 9: Downstream transportation and distribution emissions
in reporting year covered by target (metric tons CO2e)

Scope 3, Category 10: Processing of sold products emissions in reporting
year covered by target (metric tons CO2e)

Scope 3, Category 11: Use of sold products emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 12: End-of-life treatment of sold products emissions inreporting year covered by target (metric tons CO2e)

Scope 3, Category 13: Downstream leased assets emissions in reporting year
covered by target (metric tons CO2e)

Scope 3, Category 14: Franchises emissions in reporting year covered bytarget (metric tons CO2e)

Scope 3, Category 15: Investments emissions in reporting year covered bytarget (metric tons CO2e)

Scope 3, Other (upstream) emissions in reporting year covered by target(metric tons CO2e)

Scope 3, Other (downstream) emissions in reporting year covered by target(metric tons CO2e)

Total Scope 3 emissions in reporting year covered by target (metric tons
CO2e)6,960,397.207

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Total emissions in reporting year covered by target in all selected scopes(metric tons CO2e)6,960,397.207

Does this target cover any land-related emissions?
No, it does not cover any land-related emissions (e.g. non-FLAG SBT)

% of target achieved relative to base year [auto-calculated]
38.1712316042

Target status in reporting year
Underway

Please explain target coverage and identify any exclusions
Based on the SBTi criteria, a more ambitious GHG emissions target has been set in
2021. This target has been validated by the SBT initiative in 2022.

Plan for achieving target, and progress made to the end of the reporting year
To achieve there is a focus on leaf supplier engagement to reduce emissions forpurchased leaf. Emissions have decreased 25% since 2019.

List the emissions reduction initiatives which contributed most to achieving
this target

C4.2(C4.2) Did you have any other climate-related targets that were active in the reportingyear?
Target(s) to increase low-carbon energy consumption or production
Net-zero target(s)C4.2a(C4.2a) Provide details of your target(s) to increase low-carbon energy consumption
or production.

Target reference number
Low 1

Year target was set
2021

Target coverage
Company-wide

Target type: energy carrier

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Electricity

Target type: activity
Consumption

Target type: energy source
Renewable energy source(s) only

Base year
2019

Consumption or production of selected energy carrier in base year (MWh)143,863.302543281% share of low-carbon or renewable energy in base year
13.67

Target year2030

% share of low-carbon or renewable energy in target year
50

% share of low-carbon or renewable energy in reporting year
23.99

% of target achieved relative to base year [auto-calculated]
28.4062758051

Target status in reporting year
Underway

Is this target part of an emissions target?
Yes

Is this target part of an overarching initiative?
No, it’s not part of an overarching initiative

Please explain target coverage and identify any exclusions
Company-wide, no exclusions

Plan for achieving target, and progress made to the end of the reporting year
Purchase and generate more renewable electricity. Renewable energy % currently
23.99%

List the actions which contributed most to achieving this target

Target reference number
Low 2
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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Year target was set
2021

Target coverage
Company-wide

Target type: energy carrier
Electricity

Target type: activity
Consumption

Target type: energy source
Renewable energy source(s) only

Base year
2019

Consumption or production of selected energy carrier in base year (MWh)143,861.819543281% share of low-carbon or renewable energy in base year
13.67

Target year2050

% share of low-carbon or renewable energy in target year100

% share of low-carbon or renewable energy in reporting year
23.99

% of target achieved relative to base year [auto-calculated]
11.9541295031

Target status in reporting year
Underway

Is this target part of an emissions target?
Yes

Is this target part of an overarching initiative?
No, it’s not part of an overarching initiative

Please explain target coverage and identify any exclusions
Company-wide, no exclusions

Plan for achieving target, and progress made to the end of the reporting year
Purchase and generate more renewable electricity. Renewable energy % currently
23.99%

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

List the actions which contributed most to achieving this target

C4.2c(C4.2c) Provide details of your net-zero target(s).

Target reference number
NZ1

Target coverage
Company-wide

Absolute/intensity emission target(s) linked to this net-zero target
Abs1
Abs2

Target year for achieving net zero
2050

Is this a science-based target?
Yes, we consider this a science-based target, and we have committed to seek validationof this target by the Science Based Targets initiative in the next two years

Please explain target coverage and identify any exclusions
JT Group will reduce its emissions and commits to be Carbon Neutral for its own
operations by 2030 and achieve Net-Zero Greenhouse Gas emissions across its entire
value chain by 2050

Do you intend to neutralize any unabated emissions with permanent carbon
removals at the target year?
Yes

Planned milestones and/or near-term investments for neutralization at target
year
47% reduction in Scope 1&2 emission and 28% reduction in Scope 3 Category 1
emissions by 2030 comparing to 2019.

Planned actions to mitigate emissions beyond your value chain (optional)

C4.3(C4.3) Did you have emissions reduction initiatives that were active within thereporting year? Note that this can include those in the planning and/or
implementation phases.
Yes
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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

C4.3a(C4.3a) Identify the total number of initiatives at each stage of development, and for
those in the implementation stages, the estimated CO2e savings.
Number of
initiatives

Total estimated annual CO2e savings in metrictonnes CO2e (only for rows marked *)Under investigation

18

81,250To be implemented*

16

15,834

Implementationcommenced*

31

14,626

Implemented*

14

8,493

Not to be implemented 0

0

C4.3b
(C4.3b) Provide details on the initiatives implemented in the reporting year in the tablebelow.

Initiative category & Initiative type
Energy efficiency in production processes
Combined heat and power (cogeneration)

Estimated annual CO2e savings (metric tonnes CO2e)
1,110

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (location-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
4,983,461

Investment required (unit currency – as specified in C0.4)
99,669,219

Payback period
16-20 years

Estimated lifetime of the initiative
16-20 years

Comment53

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Initiative category & Initiative type
Energy efficiency in production processes
Machine/equipment replacement

Estimated annual CO2e savings (metric tonnes CO2e)
230

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
8,719,825

Investment required (unit currency – as specified in C0.4)
69,758,600

Payback period
4-10 years

Estimated lifetime of the initiative
16-20 years

Comment

Initiative category & Initiative typeLow-carbon energy generation
Solar PV

Estimated annual CO2e savings (metric tonnes CO2e)
441

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (market-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
34,236,752

Investment required (unit currency – as specified in C0.4)
190,049,294

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Payback period
4-10 years

Estimated lifetime of the initiative
16-20 years

Comment

Initiative category & Initiative type
Energy efficiency in production processes
Process optimization

Estimated annual CO2e savings (metric tonnes CO2e)173

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
3,498,156

Investment required (unit currency – as specified in C0.4)
32,495,400

Payback period
4-10 years

Estimated lifetime of the initiative
16-20 years

Comment

Initiative category & Initiative type
Energy efficiency in production processes
Compressed air

Estimated annual CO2e savings (metric tonnes CO2e)80

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 155

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
3,158,880

Investment required (unit currency – as specified in C0.4)
41,065,440

Payback period
11-15 years

Estimated lifetime of the initiative
16-20 years

Comment

Initiative category & Initiative typeLow-carbon energy generation
Other, please specify
Low-carbon electricity mix

Estimated annual CO2e savings (metric tonnes CO2e)
6,095

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (market-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
0Investment required (unit currency – as specified in C0.4)
0Payback period
No payback

Estimated lifetime of the initiative
Ongoing

Comment

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Initiative category & Initiative type
Energy efficiency in production processes
Machine/equipment replacement

Estimated annual CO2e savings (metric tonnes CO2e)100

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
26,734,667

Investment required (unit currency – as specified in C0.4)
401,020,000

Payback period
11-15 years

Estimated lifetime of the initiative
11-15 years

Comment

Initiative category & Initiative type
Energy efficiency in production processes
Fuel switch

Estimated annual CO2e savings (metric tonnes CO2e)90

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
6,196,000

Investment required (unit currency – as specified in C0.4)
61,960,000

Payback period
4-10 years

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Estimated lifetime of the initiative
6-10 years

Comment

Initiative category & Initiative type
Energy efficiency in buildings
Lighting

Estimated annual CO2e savings (metric tonnes CO2e)174

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (market-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
18,422,600

Investment required (unit currency – as specified in C0.4)
276,339,000

Payback period
11-15 years

Estimated lifetime of the initiative
11-15 years

Comment

C4.3c(C4.3c) What methods do you use to drive investment in emissions reduction
activities?
MethodComment

Compliance with regulatory
requirements/standards

In Europe, our tobacco business is obligated by The European Union
Energy Efficiency Directive (EED). The EED (updated in 2018)
establishes a set of measures to enable the EU to meet its 32.5%
energy efficiency target by 2030. Article 8 of the EED requires large
enterprises in member countries to undertake energy audits every 4
years to identify potential energy reduction opportunities.

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Financial optimization
calculations

The JT Group Business Approval Process (BAP) for CAPEX andOPEX requires detailed calculation of capital investment, associatedproject costs, savings and payback as well as for example impacts on
utilities, energy and emissions.

Marginal abatement costcurve

To help compare various GHG reduction projects, in terms ofanticipated emissions reduction, the cost of that reduction, and also
project payback, we have adopted a tailored MACC tool. This helps us
better plan and prioritize projects and focus our GHG reduction efforts.

Other

Through our Environment Opportunities Scheme, our factories haveidentified and invested in about 270 projects with total investment of 52
million Yen. Total savings amounted about 260 million Yen. This paidback over a period of 3 months. The total carbon saved is over 7000
tCO2e per annum.

Energy Opportunity
SchemeInternal price on carbon

An internal carbon price has been set in 2022 and for our
manufacturing sites has been integrated into project investment
assessment. The inclusion of the ICP has allowed multiple projects tobe approved which would previously have not met our criteria. These
projects contribute to our emissions reduction in-line with our nearterm reduction targets and longer-term Net-Zero commitment.

C4.5(C4.5) Do you classify any of your existing goods and/or services as low-carbon
products?
No

C5. Emissions methodology
C5.1(C5.1) Is this your first year of reporting emissions data to CDP?
No

C5.1a
(C5.1a) Has your organization undergone any structural changes in the reporting year,
or are any previous structural changes being accounted for in this disclosure ofemissions data?
Row 1
Has there been a structural change?
No59

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

C5.1b
(C5.1b) Has your emissions accounting methodology, boundary, and/or reporting year
definition changed in the reporting year?
Change(s) in methodology, boundary, and/or reporting year definition?
Row 1

No

C5.2
(C5.2) Provide your base year and base year emissions.
Scope 1
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)368,175.88

Comment
No further comment

Scope 2 (location-based)
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)
303,151.618

Comment
No further comment

Scope 2 (market-based)
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)
367,026.046

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Comment
No further comment

Scope 3 category 1: Purchased goods and services
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)
7,793,345.697

Comment
No further comment

Scope 3 category 2: Capital goods
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)392,995.666

Comment
No further comment

Scope 3 category 3: Fuel-and-energy-related activities (not included in Scope 1 or
2)
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)
152,851.229

Comment
No further comment

Scope 3 category 4: Upstream transportation and distribution
Base year start
January 1, 201961

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)398,439.871

Comment
No further comment

Scope 3 category 5: Waste generated in operations
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)18,216.348

Comment
No further comment

Scope 3 category 6: Business travel
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)222,821.731

Comment
No further comment

Scope 3 category 7: Employee commuting
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)54,102.271

Comment
No further comment

Scope 3 category 8: Upstream leased assets
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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)636.518

Comment
No further comment

Scope 3 category 9: Downstream transportation and distribution
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)288,599.832

Comment
No further comment

Scope 3 category 10: Processing of sold products
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)
1,039.742

Comment
No further comment

Scope 3 category 11: Use of sold products
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)
12,770.146

Comment
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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

No further comment

Scope 3 category 12: End of life treatment of sold products
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)77,727.813

Comment
No further comment

Scope 3 category 13: Downstream leased assets
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)
1,223.462

Comment
No further comment

Scope 3 category 14: Franchises
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)5,386.491

Comment
No further comment

Scope 3 category 15: Investments
Base year start
January 1, 2019

Base year end
December 31, 201964

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Base year emissions (metric tons CO2e)0

Comment
No further comment

Scope 3: Other (upstream)
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)0

Comment
No further comment

Scope 3: Other (downstream)
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)0

Comment
No further comment

C5.3(C5.3) Select the name of the standard, protocol, or methodology you have used tocollect activity data and calculate emissions.
Japan Ministry of the Environment, Law Concerning the Promotion of the Measures to Cope with
Global Warming, Superseded by Revision of the Act on Promotion of Global WarmingCountermeasures (2005 Amendment)
The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised
Edition)65

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

C6. Emissions data
C6.1
(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons
CO2e?
Reporting year
Gross global Scope 1 emissions (metric tons CO2e)
340,162.17

Comment

C6.2(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.
Row 1
Scope 2, location-based
We are reporting a Scope 2, location-based figure

Scope 2, market-based
We are reporting a Scope 2, market-based figure

Comment
No further comment

C6.3(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons
CO2e?
Reporting year
Scope 2, location-based
414,257.806

Scope 2, market-based (if applicable)
276,638.021

Comment

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

C6.4(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies,etc.) of Scope 1, Scope 2 or Scope 3 emissions that are within your selected reporting
boundary which are not included in your disclosure?
No

C6.5(C6.5) Account for your organization’s gross global Scope 3 emissions, disclosing
and explaining any exclusions.
Purchased goods and services
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)6,960,397.207

Emissions calculation methodology
Average product method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
72.13

Please explain
For emissions associated with tobacco leaf, we used the emission factor derived from
Life Cycle Assessments (LCAs) that used tobacco farmers' primary activity data.

Capital goods
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
265,074.162

Emissions calculation methodology
Spend-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
Based on published data. We do not collect data from suppliers or value chain partners
related to this category.

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Fuel-and-energy-related activities (not included in Scope 1 or 2)
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)145,281.747

Emissions calculation methodology
Fuel-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
78.84

Please explain
Fuel and energy related emissions are calculated using Scope 1 and 2 primary data.

Upstream transportation and distribution
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)385,268.277

Emissions calculation methodology
Distance-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
64.72

Please explain
For the emissions associated with transportation by distributors outside of the JT Group,
we applied primary logistics data provided by distributors.

Waste generated in operations
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)11,461.898

Emissions calculation methodology
Waste-type-specific method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
068Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Please explain
Based on published data. We do not collect data from suppliers or value chain partners
related to this category.

Business travel
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)62,938.505

Emissions calculation methodology
Distance-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
Based on published data. We do not collect data from suppliers or value chain partners
related to this category.

Employee commuting
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
56,637.305

Emissions calculation methodology
Spend-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
Based on published data. We do not collect data from suppliers or value chain partners
related to this category.

Upstream leased assets
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)635.822

Emissions calculation methodology
69

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Asset-specific method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain
Based on published data. We do not collect data from suppliers or value chain partners
related to this category.

Downstream transportation and distribution
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)252,388.084

Emissions calculation methodology
Distance-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
For the emissions associated with transportation by distributors outside of the JT Group,
we use the ton.km figure provided by distributors as primary logistics data.

Processing of sold products
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
1,390.147

Emissions calculation methodology
Asset-specific method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
Based on published data. We do not collect data from suppliers or value chain partners
related to this category.

Use of sold products
Evaluation status70

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Relevant, calculated

Emissions in reporting year (metric tons CO2e)25,439.904

Emissions calculation methodology
Average product method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
Based on published data. We do not collect data from suppliers or value chain partners
related to this category.

End of life treatment of sold products
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)95,179.762

Emissions calculation methodology
Waste-type-specific method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
Based on published data. We do not collect data from suppliers or value chain partners
related to this category.

Downstream leased assets
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)91.549Emissions calculation methodology
Asset-specific method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
100

Please explain71

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

We gather energy consumption data from those leased buildings.

Franchises
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
6,674.072

Emissions calculation methodology
Franchise-specific method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
We do not collect data from suppliers or value chain partners related to this category,
we use our internal company data.

Investments
Evaluation status
Not relevant, explanation provided

Please explain
We exclude this category from the calculation. To judge exclusion or inclusion of thiscategory, we have checked whether our investment destinations, that are applicable toour Scope 3, have relation to JT’s business or not, by referring to Box 31:,“Relevancecriteria for Scope 3 emissions sources” in “Guidance for companies reporting on climatechange on behalf of investors & supply chain members 2014”. (a) “Size”: Of ourinvestment destinations, companies which have significant emissions in the Investment
category (e.g. Japan Filter Technology, Ltd., Fuji Flavor Co., Ltd., etc.) were alreadyincluded in our Scope 1 and 2 emissions. Thereby, we confirmed that those emissions
do not contribute significantly to our total Scope 3 emissions. (b) “Influence”: For ourinvestment destinations, many companies have little relation to JT’s businesses (e.g.
finance company and railroad company). For that reason, we confirmed that we havelittle potential to reduce such companies’ emissions. (c) Rest of the Criteria: We
confirmed that our investment destinations do not fall under any of the rest of theCriteria.

Other (upstream)
Evaluation status

Please explain72

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Other (downstream)
Evaluation status

Please explain

C-AC6.8/C-FB6.8/C-PF6.8(C-AC6.8/C-FB6.8/C-PF6.8) Is biogenic carbon pertaining to your direct operations
relevant to your current CDP climate change disclosure?
Yes

C-AC6.8a/C-FB6.8a/C-PF6.8a(C-AC6.8a/C-FB6.8a/C-PF6.8a) Account for biogenic carbon data pertaining to yourdirect operations and identify any exclusions.
CO2 emissions from biofuel combustion (processing/manufacturing machinery)Emissions (metric tons CO2)
107,424.775

Methodology
Field measurements

Please explain
One of our food business sites generates energy using rice husk and the figure stated isassociated with the combustion.

CO2 emissions from biofuel combustion (other)
Emissions (metric tons CO2)
3,247.635

Methodology
Default emissions factors

Please explain
Bioethanol fuel consumption in our vehicles is multiplied by an emissions factor of
0.0054 kgCO2e per litre of fuel, as published by DEFRA/BEIS.

C-AC6.9/C-FB6.9/C-PF6.9(C-AC6.9/C-FB6.9/C-PF6.9) Do you collect or calculate greenhouse gas emissions foreach commodity reported as significant to your business in C-AC0.7/FB0.7/PF0.7?

73

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Agricultural commodities
TobaccoDo you collect or calculate GHG emissions for this commodity?
Yes

Reporting emissions by
Total

Emissions (metric tons CO2e)
5,020,760.09363803

Denominator: unit of production

Change from last reporting year
Much Higher

Please explain
We calculate GHG emissions associated with different tobacco leaf types from ourdirectly contracted growers using emission factors calculated by Life-Cycle
Assessments. Regional averages from the LCAs are also applied to tobacco leaf
sourced from third party suppliers. Emissions increased in 2022 comparing to 2021 due
to sourcing from regions with higher emission factors.

Explain why you do not calculate GHG emission for this commodity and yourplans to do so in the future

C6.10(C6.10) Describe your gross global combined Scope 1 and 2 emissions for thereporting year in metric tons CO2e per unit currency total revenue and provide any
additional intensity metrics that are appropriate to your business operations.

Intensity figure
0.232068916

Metric numerator (Gross global combined Scope 1 and 2 emissions, metrictons CO2e)616,800.19

Metric denominator
unit total revenue

Metric denominator: Unit total
2,657,832

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Scope 2 figure used
Market-based% change from previous year
16.62

Direction of change
Decreased

Reason(s) for change
Change in renewable energy consumption

Please explain
Revenue increased by 14%, emissions reduced by 5% which in total brough 17%
reduction of intensity. Main activities to reduce emissions are installation of energy
efficient equipment, improvements in the management of compressed air, andincreasing the proportion of renewable energy used on-site, e.g. increased proportion ofgreen electricity purchased.

C7. Emissions breakdowns
C7.1(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas
type?
Yes

C7.1a
(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas
type and provide the source of each used greenhouse warming potential (GWP).
Greenhousegas

Scope 1 emissions (metric tons of
CO2e)

GWP Reference

CO2

316,923.543

IPCC Fourth Assessment Report (AR4 100 year)

CH423,238.627

IPCC Fourth Assessment Report (AR4 100 year)

C7.2(C7.2) Break down your total gross global Scope 1 emissions by country/area/region.
Country/area/region

Scope 1 emissions (metric tons CO2e)

Americas12,542.037

Asia Pacific (or JAPA)

151,600.07675Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Eastern Europe

68,312.267

Western Europe

44,494.309

Middle East and North Africa (MENA)

63,213.479

C7.3(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able toprovide.
By business division
By facility
By activity

C7.3a(C7.3a) Break down your total gross global Scope 1 emissions by business division.
Business division

Scope 1 emissions (metric ton CO2e)

Tobacco252,024.944

Food

81,608.701

Pharma6,337.367

Other

191.158

C7.3b
(C7.3b) Break down your total gross global Scope 1 emissions by business facility.
Facility

Scope 1 emissions (metric tons CO2e)

LatitudeLongitudeTokyo

88,137.226

35.665421

139.745131

Geneva252,024.944

46.22222

6.146135

C7.3c(C7.3c) Break down your total gross global Scope 1 emissions by business activity.
Activity

Scope 1 emissions (metric tons CO2e)

Manufacturing

252,397.72

R&D

8,976.707

Use of company owned vehicles

73,170.687

Sales/office work

5,617.055

C-AC7.4/C-FB7.4/C-PF7.4(C-AC7.4/C-FB7.4/C-PF7.4) Do you include emissions pertaining to your businessactivity(ies) in your direct operations as part of your global gross Scope 1 figure?

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Yes

C-AC7.4b/C-FB7.4b/C-PF7.4b(C-AC7.4b/C-FB7.4b/C-PF7.4b) Report the Scope 1 emissions pertaining to yourbusiness activity(ies) and explain any exclusions. If applicable, disaggregate youragricultural/forestry by GHG emissions category.

Activity
Processing/Manufacturing

Emissions (metric tons CO2e)252,397.72

Methodology
Default emissions factor

Please explain
We capture energy, fuel and refrigerant data and calculate our Scope 1 emissions
associated with these, in line with the GHG Protocol. The emissions are associated with
our activities on manufacturing and processing operations, excluding vehicle related
emissions. Relevant source data provided by our global manufacturing facilities ismultiplied by the relevant emissions factor for the fuel type in question.

Activity
Distribution

Emissions (metric tons CO2e)6,300.722

Methodology
Default emissions factor

Please explain
We capture fuel data and calculate our Scope 1 emissions associated with these, in linewith the GHG Protocol. The emissions are associated with activities on our internal
logistics companies, excluding external third party distribution and logistics.

C7.5(C7.5) Break down your total gross global Scope 2 emissions by country/area/region.
Country/area/region

Scope 2, location-based(metric tons CO2e)

Scope 2, market-based (metrictons CO2e)

Americas7,283.818

3,256.46

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Asia Pacific (or JAPA)

264,154.15

220,187.943

Eastern Europe

96,786.664

32,671.615

Western Europe

23,850.547

2,754.727

Middle East and North Africa(MENA)

22,182.627

17,767.275

C7.6(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able toprovide.
By business division
By facility
By activity

C7.6a(C7.6a) Break down your total gross global Scope 2 emissions by business division.
Business
division

Scope 2, location-based (metric tons
CO2e)

Scope 2, market-based (metric tons
CO2e)

Tobacco292,107.815

157,502.346

Food

11,985.441

108,092.221

Pharma108,282.527

9,665.077

Other

1,882.023

1,378.378

C7.6b(C7.6b) Break down your total gross global Scope 2 emissions by business facility.
Facility Scope 2, location-based (metric tons
CO2e)

Scope 2, market-based (metric tons
CO2e)

Tokyo

122,149.991

119,135.675

Geneva 292,107.815

157,502.346

C7.6c(C7.6c) Break down your total gross global Scope 2 emissions by business activity.
Activity

Scope 2, location-based (metrictons CO2e)

Scope 2, market-based (metrictons CO2e)

Manufacturing363,751.059

233,699.281

R&D

24,133.849

18,052.53

Warehousing/Logistics 253.515

210.222

Sales/Office work

24,675.987

26,119.383

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C7.7(C7.7) Is your organization able to break down your emissions data for any of thesubsidiaries included in your CDP response?
Yes

C7.7a
(C7.7a) Break down your gross Scope 1 and Scope 2 emissions by subsidiary.

Subsidiary name
JPPM Fuji Flavor

Primary activity
Chemicals wholesale & distribution

Select the unique identifier(s) you are able to provide for this subsidiary
Another unique identifier, please specify
The Corporate Numbers are 13-digit identifiers assigned by the National Tax
Agency to companies and other organizations registered in Japan.

ISIN code – bond

ISIN code – equity

CUSIP number

Ticker symbol

SEDOL code

LEI number

Other unique identifier
5013101000755

Scope 1 emissions (metric tons CO2e)1,246.536

Scope 2, location-based emissions (metric tons CO2e)
1,237.621

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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Scope 2, market-based emissions (metric tons CO2e)
1,068.523

Comment
https://www.houjin-bangou.nta.go.jp/en/index.html

Subsidiary name
JPPL Japan Filter Technology

Primary activity
Paper products

Select the unique identifier(s) you are able to provide for this subsidiary
Another unique identifier, please specify
The Corporate Numbers are 13-digit identifiers assigned by the National Tax
Agency to companies and other organizations registered in Japan.

ISIN code – bond

ISIN code – equity

CUSIP number

Ticker symbol

SEDOL code

LEI number

Other unique identifier
6011001045259

Scope 1 emissions (metric tons CO2e)
836.062

Scope 2, location-based emissions (metric tons CO2e)7,383.492

Scope 2, market-based emissions (metric tons CO2e)
7,292.607

Comment
https://www.houjin-bangou.nta.go.jp/en/index.html

80Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Subsidiary name
JT Logistics

Primary activity
Intermodal transport

Select the unique identifier(s) you are able to provide for this subsidiary
Another unique identifier, please specify
The Corporate Numbers are 13-digit identifiers assigned by the National Tax
Agency to companies and other organizations registered in Japan.

ISIN code – bond

ISIN code – equity

CUSIP number

Ticker symbol

SEDOL code

LEI number

Other unique identifier
9011001044828

Scope 1 emissions (metric tons CO2e)371.976

Scope 2, location-based emissions (metric tons CO2e)226.112

Scope 2, market-based emissions (metric tons CO2e)217.05

Comment
https://www.houjin-bangou.nta.go.jp/en/index.html

Subsidiary name
JT Engineering81

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Primary activity
Other professional services

Select the unique identifier(s) you are able to provide for this subsidiary
Another unique identifier, please specify
The Corporate Numbers are 13-digit identifiers assigned by the National Tax
Agency to companies and other organizations registered in Japan.

ISIN code – bond

ISIN code – equity

CUSIP number

Ticker symbol

SEDOL code

LEI number

Other unique identifier
1010601031169

Scope 1 emissions (metric tons CO2e)9.181

Scope 2, location-based emissions (metric tons CO2e)97.615

Scope 2, market-based emissions (metric tons CO2e)93.399Comment
https://www.houjin-bangou.nta.go.jp/en/index.html

Subsidiary name
TableMark Co., Ltd.

Primary activity
Food & beverage wholesale

Select the unique identifier(s) you are able to provide for this subsidiary
Another unique identifier, please specify

82

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

The Corporate Numbers are 13-digit identifiers assigned by the National Tax
Agency to companies and other organizations registered in Japan.

ISIN code – bond

ISIN code – equity

CUSIP number

Ticker symbol

SEDOL code

LEI number

Other unique identifier
8470001010919

Scope 1 emissions (metric tons CO2e)44,805.189

Scope 2, location-based emissions (metric tons CO2e)38,360.102

Scope 2, market-based emissions (metric tons CO2e)39,980.44

Comment
https://www.houjin-bangou.nta.go.jp/en/index.html

Subsidiary name
Fuji Foods Corporation

Primary activity
Food & beverage wholesale

Select the unique identifier(s) you are able to provide for this subsidiary
Another unique identifier, please specify
The Corporate Numbers are 13-digit identifiers assigned by the National Tax
Agency to companies and other organizations registered in Japan.

ISIN code – bond83

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

ISIN code – equity

CUSIP number

Ticker symbol

SEDOL code

LEI number

Other unique identifier
2020001030496

Scope 1 emissions (metric tons CO2e)3,556.425

Scope 2, location-based emissions (metric tons CO2e)3,599.866

Scope 2, market-based emissions (metric tons CO2e)
2,910.723

Comment
https://www.houjin-bangou.nta.go.jp/en/index.html

C7.9(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for thereporting year compare to those of the previous reporting year?
Decreased

C7.9a(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1
and 2 combined), and for each of them specify how your emissions compare to theprevious year.
Change in
Direction of Emissions
emissionschange invalue(metric tons emissions (percentage)
CO2e)
Change inrenewable0

No change

Please explain calculation

084Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

energyconsumption
Other
emissions
reduction
activities

8,492

Decreased

1.3123

JT Group continue to invest inemissions reductions activities in ouroperations. The result of these
expenditures as well as operationalchanges delivered in 2022 directemissions reductions equating to 8,492
tCO2e (8,492tCO2e / 647,099 tCO2e(total Scope 1 and 2 emissions) in
2021 =1.31% percentage decrease).

Divestment0

No change0

Dominican Republic operation wasdivested in 2022, but based on JTG
recalculation policy related data wasdeducted from previous year, therefore
there is no change in emissions.

Acquisitions

0

No change

0

Mergers0

No change0

Change in
output21,807.26

Decreased

3.37

Change inmethodology0

No change0

Change inboundary0

No change0

Change inphysicaloperatingconditions

0

No change0

Unidentified0

No change

0

Other

0

No change0

JT Group tobacco production volume
reduced comparing to 2021 resulting inemissions reduction by 21,807
tCO2e.Emissions year on year change(18088 tCO2e / 647,099 tCO2e in 2021
= 2.80 % percentage reduction).
Processed food business production
volume reduced comparing to 2021
resulting in emissions reduction by
3,719 tCO2e.Emissions year on yearchange (3,719 tCO2e / 647,099 tCO2e
in 2021 = 0.57 % percentage
reduction).

85

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

C7.9b(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on alocation-based Scope 2 emissions figure or a market-based Scope 2 emissions
figure?
Market-based

C8. Energy
C8.1(C8.1) What percentage of your total operational spend in the reporting year was onenergy?
More than 0% but less than or equal to 5%

C8.2(C8.2) Select which energy-related activities your organization has undertaken.
Indicate whether your organization undertook this energyrelated activity in the reporting year
Consumption of fuel (excluding
feedstocks)

Yes

Consumption of purchased or
acquired electricity

Yes

Consumption of purchased or
acquired heat

Yes

Consumption of purchased or
acquired steam

Yes

Consumption of purchased or
acquired cooling

No

Generation of electricity, heat,steam, or cooling

Yes

C8.2a
(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks)
in MWh.
Heatingvalue

MWh from
renewable
sources

MWh from nonrenewablesources

Total (renewable
and non-renewable)
MWh86

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Consumption of fuel(excluding feedstock)

LHV (lower
heatingvalue)

252,709.67

1,572,632.11

1,825,341.78

Consumption ofpurchased or acquired
electricity

219,038.32

621,047.3

840,085.62

Consumption ofpurchased or acquiredheat

0

10,128.92

10,128.92

Consumption ofpurchased or acquired
steam

401.310401.31

Consumption of selfgenerated non-fuelrenewable energy

9,487.04

Total energy
consumption

481,636.33

9,487.04

2,203,808.33

2,685,444.67

C8.2b(C8.2b) Select the applications of your organization’s consumption of fuel.
Indicate whether your organization undertakes thisfuel application
Consumption of fuel for the generation ofelectricity

Yes

Consumption of fuel for the generation of
heat

Yes

Consumption of fuel for the generation of
steam

No

Consumption of fuel for the generation ofcooling

No

Consumption of fuel for co-generation or
tri-generation

Yes

C8.2c
(C8.2c) State how much fuel in MWh your organization has consumed (excluding
feedstocks) by fuel type.
Sustainable biomass
Heating value
LHV
87

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Total fuel MWh consumed by the organization
252,709.67

MWh fuel consumed for self-generation of electricity
48,736.53

MWh fuel consumed for self-generation of heat
203,973.14

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment

Other biomass
Heating value
LHV

Total fuel MWh consumed by the organization0

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment

Other renewable fuels (e.g. renewable hydrogen)Heating value
LHV

Total fuel MWh consumed by the organization0

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat
833.83

MWh fuel consumed for self- cogeneration or self-trigeneration
088Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Comment

Coal
Heating value
LHV

Total fuel MWh consumed by the organization
10,992.95

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment

Oil
Heating value
LHV

Total fuel MWh consumed by the organization
483,201.48

MWh fuel consumed for self-generation of electricity
1,192.39

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment

Gas
Heating value
LHV

Total fuel MWh consumed by the organization
1,044,895.61

MWh fuel consumed for self-generation of electricity
89

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment

Other non-renewable fuels (e.g. non-renewable hydrogen)Heating value
LHV

Total fuel MWh consumed by the organization
33,542.42

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat
928,442.56

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment

Total fuelHeating value
LHV

Total fuel MWh consumed by the organization
1,825,342.12

MWh fuel consumed for self-generation of electricity
49,928.91

MWh fuel consumed for self-generation of heat
1,133,249.54

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment90

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

C8.2d(C8.2d) Provide details on the electricity, heat, steam, and cooling your organization
has generated and consumed in the reporting year.
Total Gross
generation(MWh)

Generation that isconsumed by theorganization (MWh)Gross generation Generation fromfrom renewable
renewable sources thatsources (MWh)is consumed by theorganization (MWh)Electricity 1,192.39

1,192.39

9,487.04

0

Heat1,133,249.54

1,133,249.54

204,806.97

203,973.14

Steam

31,545.44

31,545.44

31,545.44

0Cooling

0

0

0

0

C8.2e
(C8.2e) Provide details on the electricity, heat, steam, and/or cooling amounts thatwere accounted for at a zero or near-zero emission factor in the market-based Scope
2 figure reported in C6.3.

Country/area of low-carbon energy consumption
Germany

Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)28,283.88

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Germany

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No91

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)

Comment
JTG sites in Germany purchase electricity from third parties which is sourced fromrenewable generation sources backed by Guarantees of Origin

Country/area of low-carbon energy consumption
Romania

Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)

Energy carrier
Electricity

Low-carbon technology type
Renewable energy mix, please specify
Wind, Hydropower, Solar, Biomass

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)16,573.17

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Romania

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)

Comment
JTG sites in Romania purchase electricity from third parties which is sourced fromrenewable generation sources backed by Guarantees of Origin

Country/area of low-carbon energy consumption
Sweden92

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)2,003.35

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
SwedenAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2013

Comment
JTG sites in Sweden purchase steam from third parties which is sourced fromrenewable generation sources backed by Guarantees of Origin

Country/area of low-carbon energy consumption
CanadaSourcing method
Retail supply contract with an electricity supplier (retail green electricity)

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)11,031.79

93

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
CanadaAre you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)

Comment
Hydro power based supply in Canada

Country/area of low-carbon energy consumption
SerbiaSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)3,274.47

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
SerbiaAre you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)94

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Comment
JTG sites in Serbia purchase electricity from third parties and separately also purchase
Guarantees of Origin which are retired on their behalfCountry/area of low-carbon energy consumption
Philippines

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology typeSolar

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)39,357.84

Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Philippines

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2017

Comment
A JTG site in Asia Pacific purchases electricity from third parties which is sourced fromrenewable / low carbon generation sources backed by energy attribute certificates(iRECs/TIGRs)

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

95

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Energy carrier
Electricity

Low-carbon technology type
Renewable energy mix, please specify
Wind, Hydropower, Solar, Biomass

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)66,667.32

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)2022

Comment
JTG sites in Poland purchase electricity from third parties and separately also purchase
Guarantees of Origin which are retired on their behalfCountry/area of low-carbon energy consumption
GreeceSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology typeWind

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)5,013.31

Tracking instrument usedGO
96

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Country/area of origin (generation) of the low-carbon energy or energy
attribute
GreeceAre you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)

Comment
JTG site in Greece purchase electricity from third parties and separately also purchase
Guarantees of Origin which are retired on their behalfCountry/area of low-carbon energy consumption
SwedenSourcing method
Heat/steam/cooling supply agreement

Energy carrier
Heat, steam and cooling combined

Low-carbon technology type
Sustainable biomass

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)335.72

Tracking instrument used
No instrument used

Country/area of origin (generation) of the low-carbon energy or energy
attribute
SwedenAre you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)

Comment
97

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Steam purchased by our site in Sweden generated from a renewable source

Country/area of low-carbon energy consumption
Japan

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Sustainable biomass

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)5,450.3

Tracking instrument used
Other, please specify
Certified by JQA (Japan Quality Assurance)

Country/area of origin (generation) of the low-carbon energy or energy
attributeJapan

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2012

Comment
It is a certificate of the environmental value generated electricity and heat by renewableenergy. It is certified by JQA(Japan Quality Assurance)

Country/area of low-carbon energy consumption
Belgium

Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)

Energy carrier
Electricity

98

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Low-carbon technology typeWind

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)99.78

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Belgium

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)

Comment
JTG site in Belgium purchases electricity from third parties and separately alsopurchase Guarantees of Origin which are retired on their behalfCountry/area of low-carbon energy consumption
Netherlands

Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)

Energy carrier
Electricity

Low-carbon technology typeWind

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)141.02

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Netherlands
99

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)

Comment
JTG site in the Netherlands purchases renewable electricity from a third party which isbacked by RECsCountry/area of low-carbon energy consumption
Austria

Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)3,340.12

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Austria

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)

Comment
JTG site in Austria purchases renewable electricity from a third party which is backed by
RECs

100

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Country/area of low-carbon energy consumption
Switzerland

Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)2,551.12

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Switzerland

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)

Comment
JTG site in Switzerland purchases renewable electricity from a third party which isbacked by RECsCountry/area of low-carbon energy consumption
United Kingdom of Great Britain and Northern Ireland

Sourcing method
Retail supply contract with an electricity supplier (retail green electricity)

Energy carrier
Electricity

Low-carbon technology type
Wind

101

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)2,393.74

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
United Kingdom of Great Britain and Northern Ireland

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)

Comment
JTG site in the UK purchases renewable electricity from a third party which is backed by
RECs

Country/area of low-carbon energy consumption
TurkeySourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Renewable energy mix, please specify
Hydropower, Wind, Geothermal

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)2,925.72

Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Turkey102

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2017

Comment
JTG site in Turkey purchases electricity from third parties and separately also purchase
Guarantees of Origin which are retired on their behalfCountry/area of low-carbon energy consumption
BrazilSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)4,347.81

Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
BrazilAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2020

Comment
JTG site in Brazil purchases electricity from third parties and separately also purchase
Guarantees of Origin which are retired on their behalf103

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

C8.2g(C8.2g) Provide a breakdown by country/area of your non-fuel energy consumption in
the reporting year.

Country/area
Algeria

Consumption of purchased electricity (MWh)31.94

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
31.94

Country/area
AndorraConsumption of purchased electricity (MWh)388.53

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
388.53

Country/area
Armenia
104

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Consumption of purchased electricity (MWh)38.23

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)18.65

Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
56.88

Country/area
Austria

Consumption of purchased electricity (MWh)3,243.66

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)2,021Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
5,264.66

Country/area
Azerbaijan

Consumption of purchased electricity (MWh)112.2

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0105Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
112.2

Country/area
Bangladesh

Consumption of purchased electricity (MWh)5,363.28

Consumption of self-generated electricity (MWh)5,741.62

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
11,104.9

Country/area
Belarus

Consumption of purchased electricity (MWh)120.97

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)306.67

Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
427.64106

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Country/area
Belgium

Consumption of purchased electricity (MWh)119.88Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
119.88Country/area
Bolivia (Plurinational State of)Consumption of purchased electricity (MWh)85.05

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
85.05

Country/area
BrazilConsumption of purchased electricity (MWh)15,702.54

Consumption of self-generated electricity (MWh)
21.43

107

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)31,545.44

Total non-fuel energy consumption (MWh) [Auto-calculated]
47,269.41

Country/area
Bulgaria

Consumption of purchased electricity (MWh)156.73

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)47.74

Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
204.47

Country/area
Cambodia

Consumption of purchased electricity (MWh)462.29Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
462.29108

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Country/area
CanadaConsumption of purchased electricity (MWh)13,505.86

Consumption of self-generated electricity (MWh)1.6

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
13,507.46

Country/area
China

Consumption of purchased electricity (MWh)50.75

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
50.75

Country/area
Colombia

Consumption of purchased electricity (MWh)6.07

Consumption of self-generated electricity (MWh)109

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
6.07

Country/area
Czechia

Consumption of purchased electricity (MWh)169.56

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
169.56Country/area
Denmark

Consumption of purchased electricity (MWh)6.9

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0110Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Total non-fuel energy consumption (MWh) [Auto-calculated]
6.9Country/area
Egypt

Consumption of purchased electricity (MWh)2,095.46

Consumption of self-generated electricity (MWh)5.18

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
2,100.64

Country/area
EthiopiaConsumption of purchased electricity (MWh)2,078.84

Consumption of self-generated electricity (MWh)1,063.72

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
3,142.56

Country/area
France111

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Consumption of purchased electricity (MWh)219.78Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
219.78Country/area
Georgia

Consumption of purchased electricity (MWh)140.78Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)6.23

Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]147.01Country/area
Germany

Consumption of purchased electricity (MWh)28,283.88

Consumption of self-generated electricity (MWh)29,025.57

Consumption of purchased heat, steam, and cooling (MWh)0112

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
57,309.45

Country/area
GreeceConsumption of purchased electricity (MWh)5,383.62

Consumption of self-generated electricity (MWh)1.18

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
5,384.8

Country/area
Hong Kong SAR, China

Consumption of purchased electricity (MWh)212.17

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
212.17113

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Country/area
Hungary

Consumption of purchased electricity (MWh)96.75

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
96.75

Country/areaIndonesia

Consumption of purchased electricity (MWh)10,775.31

Consumption of self-generated electricity (MWh)3.55

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
10,778.86

Country/area
Iran (Islamic Republic of)Consumption of purchased electricity (MWh)14,417.82

Consumption of self-generated electricity (MWh)14,705.37

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Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
29,123.19

Country/area
IrelandConsumption of purchased electricity (MWh)54.6

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
54.6

Country/area
Italy

Consumption of purchased electricity (MWh)134.03

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
134.03115

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Country/areaJapan

Consumption of purchased electricity (MWh)179,286.56

Consumption of self-generated electricity (MWh)3,372.07

Consumption of purchased heat, steam, and cooling (MWh)743.81

Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
183,402.44

Country/area
JordanConsumption of purchased electricity (MWh)8,751.64

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)194.58

Total non-fuel energy consumption (MWh) [Auto-calculated]
8,946.22

Country/area
Republic of Korea

Consumption of purchased electricity (MWh)0Consumption of self-generated electricity (MWh)116

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
0Country/area
LebanonConsumption of purchased electricity (MWh)9.84

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
9.84

Country/area
Lithuania

Consumption of purchased electricity (MWh)70.36

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)101.73

Consumption of self-generated heat, steam, and cooling (MWh)0117Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Total non-fuel energy consumption (MWh) [Auto-calculated]
172.09Country/area
MalawiConsumption of purchased electricity (MWh)5,580.4

Consumption of self-generated electricity (MWh)158.17

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
5,738.57

Country/area
Malaysia

Consumption of purchased electricity (MWh)386.4

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
386.4

Country/area
Mexico118

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Consumption of purchased electricity (MWh)52.36

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
52.36

Country/area
Republic of Moldova

Consumption of purchased electricity (MWh)0Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
0Country/area
MoroccoConsumption of purchased electricity (MWh)86.38

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0119Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
86.38

Country/area
MyanmarConsumption of purchased electricity (MWh)1,253.49

Consumption of self-generated electricity (MWh)1,974.14

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
3,227.63

Country/area
Netherlands

Consumption of purchased electricity (MWh)141.02

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]141.02120

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Country/area
Nigeria

Consumption of purchased electricity (MWh)49.78

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
49.78

Country/area
Philippines

Consumption of purchased electricity (MWh)41,642.96

Consumption of self-generated electricity (MWh)8,069.25

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
49,712.21

Country/area
PolandConsumption of purchased electricity (MWh)67,662.37

Consumption of self-generated electricity (MWh)
2.85

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Consumption of purchased heat, steam, and cooling (MWh)407.52

Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
68,072.74

Country/area
Portugal

Consumption of purchased electricity (MWh)33.65

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
33.65

Country/area
Romania

Consumption of purchased electricity (MWh)17,640.59

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
17,640.59
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Country/area
Russian Federation

Consumption of purchased electricity (MWh)0Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
0Country/area
SerbiaConsumption of purchased electricity (MWh)3,433.29

Consumption of self-generated electricity (MWh)0.32

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
3,433.61

Country/area
SingaporeConsumption of purchased electricity (MWh)186.56

Consumption of self-generated electricity (MWh)123

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
186.56Country/area
Slovakia

Consumption of purchased electricity (MWh)12.57

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
12.57

Country/area
South Africa

Consumption of purchased electricity (MWh)29.43

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0124Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Total non-fuel energy consumption (MWh) [Auto-calculated]
29.43

Country/area
Spain

Consumption of purchased electricity (MWh)246.11

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
246.11Country/area
Sudan

Consumption of purchased electricity (MWh)15,176.6

Consumption of self-generated electricity (MWh)3,129.39

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
18,305.99

Country/area
Sweden125

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Consumption of purchased electricity (MWh)1,656.56

Consumption of self-generated electricity (MWh)52.72

Consumption of purchased heat, steam, and cooling (MWh)533.02

Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
2,242.3

Country/area
Switzerland

Consumption of purchased electricity (MWh)11,476.56

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
11,476.56

Country/area
Taiwan, China

Consumption of purchased electricity (MWh)27,781.15

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0126

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
27,781.15

Country/area
United Republic of Tanzania

Consumption of purchased electricity (MWh)0Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
0Country/area
ThailandConsumption of purchased electricity (MWh)47.71

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
47.71

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Country/area
Tunisia

Consumption of purchased electricity (MWh)30.33

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
30.33

Country/area
TurkeyConsumption of purchased electricity (MWh)10,786.09

Consumption of self-generated electricity (MWh)31,975.91

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
42,762

Country/area
UkraineConsumption of purchased electricity (MWh)9,560.05

Consumption of self-generated electricity (MWh)688.29128

Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
10,248.34

Country/area
United Arab Emirates

Consumption of purchased electricity (MWh)75.81

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
75.81

Country/area
United Kingdom of Great Britain and Northern Ireland

Consumption of purchased electricity (MWh)2,925.72

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
2,925.72
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Country/area
United States of America

Consumption of purchased electricity (MWh)5,231.42

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
5,231.42

Country/area
Viet Nam

Consumption of purchased electricity (MWh)8.69

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
8.69

Country/area
ZambiaConsumption of purchased electricity (MWh)851.24

Consumption of self-generated electricity (MWh)130

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0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
851.24

C9. Additional metrics
C9.1(C9.1) Provide any additional climate-related metrics relevant to your business.

Description
Energy usage

Metric value
9,697,334,848.52

Metric numerator
MJ

Metric denominator (intensity metric only)% change from previous year
2.17

Direction of change
Decreased

Please explain
Reduction in energy usage due to energy efficiency initiatives

Description
Waste

Metric value
115,797,065.51

Metric numerator
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Japan Tobacco Inc. CDP Climate Change Questionnaire 2023 Wednesday, July26, 2023

kg

Metric denominator (intensity metric only)% change from previous year
5.89

Direction of change
Decreased

Please explain
JTG level waste generated decreased in 2022 compared to the previous year due tocombination of process improvement initiatives and reuse program.

C10. Verification
C10.1(C10.1) Indicate the verification/assurance status that applies to your reported
emissions.
Verification/assurance status
Scope 1

Third-party verification or assurance process in place

Scope 2 (location-based or market-based)

Third-party verification or assurance process in place

Scope 3

Third-party verification or assurance process in place

C10.1a(C10.1a) Provide further details of the verification/assurance undertaken for your
Scope 1 emissions, and attach the relevant statements.

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Type of verification or assurance
Limited assurance

Attach the statement
Independent_Assurance_Statement_Environment.pdf

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All

Relevant standard
ISO14064-3

Proportion of reported emissions verified (%)
100

C10.1b
(C10.1b) Provide further details of the verification/assurance undertaken for your
Scope 2 emissions and attach the relevant statements.

Scope 2 approach
Scope 2 market-based

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Type of verification or assurance
Limited assurance

Attach the statement
Independent_Assurance_Statement_Environment.pdf

Page/ section referenceAll

Relevant standard
ISO14064-3

Proportion of reported emissions verified (%)
100

C10.1c(C10.1c) Provide further details of the verification/assurance undertaken for your
Scope 3 emissions and attach the relevant statements.

Scope 3 category
Scope 3: Purchased goods and services

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Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Type of verification or assurance
Limited assurance

Attach the statement
Independent_Assurance_Statement_Environment.pdf

Page/section referenceAll

Relevant standard
ISO14064-3

Proportion of reported emissions verified (%)
89

C10.2
(C10.2) Do you verify any climate-related information reported in your CDP disclosure
other than the emissions figures reported in C6.1, C6.3, and C6.5?
Yes

C10.2a(C10.2a) Which data points within your CDP disclosure have been verified, and which
verification standards were used?
Disclosure
moduleverification
relates toData verified

Verification
standard

Please explain

C9. Additional
metrics

Energyconsumption

ISAE3000

JT Group obtained verification of its totalenergy consumption data for 2022

C9. Additional
metrics

Other, please
specify

ISAE3000

JT Group obtained verification of its total waste
generated in operations data for 2022, which isused in relation to calculation of Scope 3
Category 5 emissions.

Waste data

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C11. Carbon pricing
C11.1(C11.1) Are any of your operations or activities regulated by a carbon pricing system(i.e. ETS, Cap & Trade or Carbon Tax)?
Yes

C11.1a(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.
EU ETS

C11.1b
(C11.1b) Complete the following table for each of the emissions trading schemes you
are regulated by.
EU ETS% of Scope 1 emissions covered by the ETS
96.79% of Scope 2 emissions covered by the ETS
93.57

Period start date
January 1, 2022

Period end date
December 31, 2022

Allowances allocated
3.31

Allowances purchased
0

Verified Scope 1 emissions in metric tons CO2e
340,162.17

Verified Scope 2 emissions in metric tons CO2e276,638.02

Details of ownership
Facilities we own and operate

Comment

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C11.1d(C11.1d) What is your strategy for complying with the systems you are regulated by or
anticipate being regulated by?
Our strategy for complying with our responsibilities under EU ETS is twofold. Firstly, we haveestablished internal systems and procedures which ensure our ongoing compliance with therequirements of the scheme. Secondly, we retain external auditors to review and verify ourprocesses, systems data and annual emissions reports, this annual verification work isscheduled to be concluded well ahead of compliance deadlines to ensure those deadlines aremet.
Our internal systems and procedures to ensure compliance with our responsibilities under EU
ETS have been integrated into environmental (EMS) and energy management systems . Our
EMS has been in place since 1998, when it was first implemented at our Trier site, andprocedures under EU ETS were first integrated once EU ETS was introduced. Our EMS
allocates responsibility for compliance to named individuals at site level as well as oversight at
a group level through our internal audit process. The environmental and energy systems are
subject to external verification against ISO 14001 and ISO 50001 which in turn ensurescompliance. We are monitoring compliance obligations on ongoing basis and changing
approach if appropriate.

C11.2(C11.2) Has your organization canceled any project-based carbon credits within thereporting year?
No

C11.3
(C11.3) Does your organization use an internal price on carbon?
Yes

C11.3a(C11.3a) Provide details of how your organization uses an internal price on carbon.

Type of internal carbon priceShadow priceHow the price is determined
Price with material impact on business decisions

Objective(s) for implementing this internal carbon price
Drive energy efficiency
Drive low-carbon investment
Stress test investments

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Scope(s) covered
Scope 1
Scope 2

Pricing approach used – spatial variance
Uniform

Pricing approach used – temporal variance
Evolutionary

Indicate how you expect the price to change over time
An initial price has been set by analyzing a portfolio of historical and future investment
projects related to energy efficiency and renewable energy for our facilities. As this is
our first year setting an internal carbon price, we will continue to review the price andchange it where necessary to keep us on track to meet our carbon targets.

Actual price(s) used – minimum (currency as specified in C0.4 per metric ton
CO2e)10,529.6

Actual price(s) used – maximum (currency as specified in C0.4 per metric ton
CO2e)10,529.6

Business decision-making processes this internal carbon price is applied toCapital expenditure
Operations

Mandatory enforcement of this internal carbon price within these businessdecision-making processes
Yes, for some decision-making processes, please specify
ICP is used for CAPEX projects, relating to energy efficiency/reduction andrenewables. ICP is applied through business decision-making processes, including
Business Approval Process, Enterprise Asset Management and Annual Strategic
Planning.

Explain how this internal carbon price has contributed to the implementationof your organization’s climate commitments and/or climate transition plan
For our manufacturing facilities the ICP is now integrated into our project investment
assessment showing the NPV with and without the ICP applied. The inclusion of the ICP
has allowed multiple projects to be approved which would previously have not met ourcriteria. These projects contribute to our emissions reduction in-line with our near-term
reduction targets and longer-term Net-Zero commitment.

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C12. Engagement
C12.1(C12.1) Do you engage with your value chain on climate-related issues?
Yes, our suppliers
Yes, other partners in the value chain

C12.1a(C12.1a) Provide details of your climate-related supplier engagement strategy.

Type of engagement
Innovation & collaboration (changing markets)

Details of engagement
Run a campaign to encourage innovation to reduce climate impacts on products andservices% of suppliers by number
94.43% total procurement spend (direct and indirect)
65.04% of supplier-related Scope 3 emissions as reported in C6.5
65.13

Rationale for the coverage of your engagement
Within JT Group, leaf, Non-Tobacco Materials, logistics, equipment suppliers of ourtobacco business have been engaged via CDP Supply Chain. These materials are, forexample, tobacco leaf, paper and cardboard and cellulose based acetate tow. We also
engage with logistics and producers of production equipment. In order to have a
representative number of suppliers, we selected these using a Pareto analysis to getclose to 80% coverage based on procurement spend in these categories of materials
suppliers.
Our tobacco business engages with Leaf and other suppliers via CDP Supply Chain tobetter understand emissions management in our value chain and how climate changerisks are being assessed and managed by suppliers. This does not include direct
engagement with growers.
Our tobacco business also engages with our supply chain through a range of initiatives;
direct engagement with certain suppliers, and indirect engagement with a wider range ofother suppliers. Our direct engagement activities include visiting each of our contracted
tobacco growers at least 7 times throughout each crop season to help them improvetheir agronomy practices and tobacco leaf curing efficiencies, and, through our Scope 3

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engagement program, working together with our tier 1 suppliers to better understandmutually beneficial process improvements.
Our strategy for prioritizing engagement favors direct engagement with suppliers where
their contribution to our value chain emissions is most significant and where we believe
we have the most influence to drive improvement. For suppliers that we have yet toengage directly with we follow an indirect engagement approach with third parties
assisting us, such as the CDP Supply Chain team.

Impact of engagement, including measures of successWe seek to encourage innovation to reduce climate impacts on products and services.
Through the engagement with Japanese tobacco farmers, we have identified an
opportunity to reduce fuel related emissions by introducing innovative energy efficientleaf dryers on tobacco farms. This will result in cost reduction for farmers andsubsequently could contribute to reductions in the price of tobacco we purchase.
Measure of success: Engagement resulting in implementation of innovation solutions
such as updating curing barns.
Through the introduction of innovative tobacco curing barns and curing processes inZambia, Brazil and Tanzania, our growers are reducing wood consumption andassociated emissions, whilst improving tobacco yield, quality and revenues. We monitor
amount of wood used to cure 1 kg of tobacco. In 2022 Brazil used 100% sustainable
wood for curing and in Tanzania and Zambia the amount of sustainable wood increased
to 11%. Based on current tree planting activities we estimate we are on a path toachieve consolidated 98% renewable wood sourcing by 2029.
We will continue to measure success quantitatively through identification of potential
emissions reduction opportunities across our value chain, and qualitatively throughdeeper and more active supplier engagement.

Comment
No further comment

C12.1d(C12.1d) Give details of your climate-related engagement strategy with other partners
in the value chain.
Our other partners are other companies also signed up to climate initiatives working together toreduce carbon emissions.
Case Study: JT Group recognizes the importance of engaging with other partners in the value
chain. As part of its engagement strategy, JT G has joined the Japan Climate Initiative (JCI)and understands the importance of and support the Net-Zero commitment announced by theJapanese Government. To achieve this commitment an increase in renewable energy isrequired. Through the Japan Climate Initiative (JCI) and in conjunction with the other initiative
members, JTG placed a statement to request the Japanese government to strengthen its
renewable energy target for 2030 from 22-24% to 40-50%.

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C12.2(C12.2) Do your suppliers have to meet climate-related requirements as part of yourorganization’s purchasing process?
No, but we plan to introduce climate-related requirements within the next two years

C-AC12.2/C-FB12.2/C-PF12.2(C-AC12.2/C-FB12.2/C-PF12.2) Do you encourage your suppliers to undertake any
agricultural or forest management practices with climate change mitigation and/or
adaptation benefits?
Yes

C-AC12.2a/C-FB12.2a/C-PF12.2a(C-AC12.2a/C-FB12.2a/C-PF12.2a) Specify which agricultural or forest management
practices with climate change mitigation and/or adaptation benefits you encourage
your suppliers to undertake and describe your role in the implementation of eachpractice.

Management practice reference number
MP1

Management practice
Afforestation

Description of management practiceTree growing initiatives. Each contracted tobacco grower is expected (under contractual
clause) to plant a quantified number of trees and/or or ensure purchase of wood fromsustainable sources, such as in Brazil, according to an average wood requirement for
tobacco curing.
Minimum Forestry Standards - set of guidelines and technical recommendation on best
forestry practices per production areas in Vertically-Integrated Origins.
100% of leaf production team and 100% of contracted tobacco growers in countries
where wood resources are used for tobacco production receive technical assistance on
best forestry practices and wood production.

Your role in the implementation
Knowledge sharing

Explanation of how you encourage implementation
JTG is committed to promote wood resources production to achieve a renewable andsustainable supply of wood for tobacco production. Contracted tobacco growers either
implement afforestation and adopt forestry best practices to increase wood production
and/or are required to purchase from sustainable and compliant sources. Forestry

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technical assistance and field days at demonstration plots. Regular trainings are
conducted to build capacity amongst internal employees that provide technicalassistance to the grower base. A clause in the contract between JTG and a grower
requires that the grower must ensure wood for tobacco production comes fromrenewable and sustainable sources. JTG also has dedicated Forestry Research anddevelopment at Agronomy Development & Extension Training (ADET) centers in Brazil
and Zambia, focused in maximizing small-scale woodlot productivity.

Climate change related benefit
Emissions reductions (mitigation)

Comment
No further comment

Management practice reference number
MP2

Management practiceFertilizer management

Description of management practiceGood fertilizer management rests on the principles of using the correct fertiliser from theright source, at the right application rate, at the right time and with the right placement.
Each production system/area has a specific fertilization program that contributes to the
production of targeted crop style and improve productivity. Research and development
conducted at JTI's Agronomy Development and Extension Training (ADET) centersvalidate fertilizer application recommendations. 100% of contracted growers receive
technical assistance in this matter.

Your role in the implementation
Knowledge sharing

Explanation of how you encourage implementation
JTG is committed to encourage contracted growers to adhere to the Minimum
Agronomic Standards (MAS) and implement best agronomy practices. This includes a
specific section related to responsible and sustainable use and management of
fertilizers. JTG provides technical assistance and training to contracted growers throughdedicated visits and field days. JTG pre-finances and delivers crop inputs in a grower
pack to contracted growers, that includes recommended fertilizers per type and quantity.

Climate change related benefit
Emissions reductions (mitigation)

Comment
No further comment

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Management practice reference number
MP3

Management practice
Low carbon energy use

Description of management practice
Improved curing efficiencies, optimized use of crop inputs are crop husbandry activities
related to low carbon energy use. These are well addressed in our Good Agricultural
Practices Protocol, Minimum Agronomic Standards (MAS) and Minimum Forestry
Standards (MFS), which are a set of technical guidelines and recommendations, as well
as best practice to which a contracted grower should adhere. 100% of contracted
growers receive technical assistance in this matter.
Improving curing efficiency through innovation, development and enhancing curing barnfacilities results in reduced wood consumption. Thus, it reduces the requirement of wood
resources for tobacco production and curing, and consequently reduces emissions thatcome from sourcing wood from unsustainable sources.

Your role in the implementation
Knowledge sharing

Explanation of how you encourage implementation
JTG is committed to encourage contracted growers to follow to the MAS (Minimum
Agronomic Standard) and implement best agronomy practices. This includes specificsections related to responsible and sustainable use and management of wood
resources, wood production, tobacco curing efficiency, responsible and appropriate use
and management of crop inputs (fertilizers, Crop Protection Agents - CPAs etc.). JTG
provides technical assistance and training to contracted growers through dedicatedvisits and field days.

Climate change related benefit
Emissions reductions (mitigation)

Comment
No further comment

C-AC12.2b/C-FB12.2b/C-PF12.2b(C-AC12.2b/C-FB12.2b/C-PF12.2b) Do you collect information from your suppliers
about the outcomes of any implemented agricultural/forest management practices
you have encouraged?
Yes

C12.3
(C12.3) Does your organization engage in activities that could either directly or
indirectly influence policy, law, or regulation that may impact the climate?

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Row 1
External engagement activities that could directly or indirectly influence
policy, law, or regulation that may impact the climate
Yes, we engage directly with policy makers

Does your organization have a public commitment or position statement to
conduct your engagement activities in line with the goals of the Paris
Agreement?
Yes

Attach commitment or position statement(s)JTGNetZero.pdf
JTGNetZero.pdf

Describe the process(es) your organization has in place to ensure that yourexternal engagement activities are consistent with your climate commitments
and/or climate transition plan
JT Group has a dedicated environmental team in Tokyo which is responsible forcoordination of activities related to climate change strategy and engagement, including
the engagement with policy makers. This team ensures that climate-related
engagements throughout the business are in line with the Environment Plan 2030,
which reflects our overall climate change strategy.

C12.3a(C12.3a) On what policy, law, or regulation that may impact the climate has yourorganization been engaging directly with policy makers in the reporting year?

Specify the policy, law, or regulation on which your organization is engaging
with policy makers
J-Credit Scheme

Category of policy, law, or regulation that may impact the climate
Carbon pricing, taxes, and subsidies

Focus area of policy, law, or regulation that may impact the climate
Emissions trading schemes

Policy, law, or regulation geographic coverage
National

Country/area/region the policy, law, or regulation applies toJapanYour organization’s position on the policy, law, or regulation
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Description of engagement with policy makers
J-Credit is a system under which the government certifies the amount of CO2 reductions
and absorption. The system was launched in 2013, and we participated in ademonstration experiment conducted by the Ministry of the Environment of Japan torevitalize the J-credit scheme by utilizing blockchain technology from 2021 to 2022. The
credits we purchased resulted from renewable energy.

Details of exceptions (if applicable) and your organization’s proposed
alternative approach to the policy, law or regulation

Have you evaluated whether your organization’s engagement on this policy,
law, or regulation is aligned with the goals of the Paris Agreement?
Yes, we have evaluated, and it is aligned

Please explain whether this policy, law or regulation is central to theachievement of your climate transition plan and, if so, how?
The J-Credit Scheme is a system under which the Japanese government certifies ascredits the amount of CO2 emission reductions including the introduction of energysaving equipment and the use of renewable energy. We believe this initiative is part ofcreating a sustainable mechanism for accelerating low-carbon investment and achieving
Japan’s and our greenhouse gas targets under the Paris Agreement.

C12.4(C12.4) Have you published information about your organization’s response to climatechange and GHG emissions performance for this reporting year in places other thanin your CDP response? If so, please attach the publication(s).

Publication
In mainstream reports, incorporating the TCFD recommendations

StatusComplete

Attach the document
integrated2022_E_all.pdf

Page/Section reference
Governance: P88-113 / Sustainability: P36-43 / Risk factors: P116-119 / Non-financial
performance review: P14-15 / Improving our environmental impact: P78-81 / Other
elements of sustainability: P44-87

Content elements
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Strategy
Risks & opportunities
Emissions figures
Emission targets
Other metrics

Comment
Nothing further to disclose

C12.5(C12.5) Indicate the collaborative frameworks, initiatives and/or commitments related
to environmental issues for which you are a signatory/member.
Environmental collaborative
framework, initiative and/or
commitment
Row Task Force on Climate-related
1
Financial Disclosures (TCFD)
Other, please specify
Science-Based Targets
Initiative, Declaration of
Biodiversity by Keidanren

Describe your organization’s role within eachframework, initiative and/or commitment
JTG algins its reporting on climate risks and opportunities
to the recommendations of the TCFD.
JTG has emissions reduction targets verified by the
Science-Based Targets Initiative.
JTG endorsed the Declaration of Biodiversity by Keidanren,which is an ambitious action guideline that summarizes
specific biodiversity-related activities in Japan.

C13. Other land management impacts
C-AC13.2/C-FB13.2/C-PF13.2(C-AC13.2/C-FB13.2/C-PF13.2) Do you know if any of the management practices
mentioned in C-AC12.2a/C-FB12.2a/C-PF12.2a that were implemented by yoursuppliers have other impacts besides climate change mitigation/adaptation?
Yes

C-AC13.2a/C-FB13.2a/C-PF13.2a(C-AC13.2a/C-FB13.2a/C-PF13.2a) Provide details of those management practices
implemented by your suppliers that have other impacts besides climate change
mitigation/adaptation.

Management practice reference number
MP1

Overall effectPositive
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Which of the following has been impacted?
Biodiversity
Soil
Water
Yield
Other, please specify
Forests, Environmental regulation

Description of impacts
Biodiversity Inventory and Monitoring project in Brazil provides for an overview of
biodiversity in tobacco farms, and most suitable conservation practices to be adopted by
the growers to enhance and/or conserve ecosystem services. It also serves animportant purpose in relation to farmers’ awareness and education on environmental
matters and impacts on agricultural productivity.

Have any response to these impacts been implemented?
Yes

Description of the response(s)Achievements from the JTI Bio Project for Biodiversity Inventory and Monitoring are thedevelopment of a robust Biodiversity inventory and monitoring Protocol that is used bysample growers and adoption of necessary conservation actions at farm level toenhance and/or conserve biodiversity and natural resources; as well as to comply withany environmental regulation required.

Management practice reference number
MP2

Overall effectPositive

Which of the following has been impacted?
Biodiversity
Soil
Water
Yield

Description of impacts
Our Good Agricultural Practices Protocol, Minimum Agronomic Standards (MAS) and
Minimum Forestry Standards (MFS); are a set of technical guidelines to sustainably andefficiently produce tobacco, establish live barns for Burley tobacco curing and establishof woodlots for wood fuel production. Principles from MAS and MFS can be applied toother crops thus also contributing to farm improved productivity. MAS includes theminimum requirements a grower needs to adopt with regards to planning, land
preparation, soil conservation and management practices, seedling production,cultivation, fertilization programs, the use and management of crop protection agents,

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topping, harvesting, curing, market preparation and leaf integrity, whilst MFS includes all
best forestry practices to ensure trees are planted and grow to their best potential – be it
as pole, as wood fuel. General best forestry practices are applicable to any tree species.

Have any response to these impacts been implemented?
Yes

Description of the response(s)Increase in yield and quality of leaf. Reduced impact on ecosystem services.

C15. Biodiversity
C15.1(C15.1) Is there board-level oversight and/or executive management-level
responsibility for biodiversity-related issues within your organization?
Board-level oversight
Description of oversight and objectives relating to
and/or executive
biodiversity
management-level
responsibility forbiodiversity-related issues
Row Yes, both board-level1
oversight and executive
management-level
responsibility

Board and executive management have oversight of theEnvironment Plan 2030 which includes a target to replace allwood from natural forests used in the tobacco curing process ofour directly contracted growers with renewable fuel sources.
This includes protecting and restoring natural forests andresearching best forestry and agricultural practices. JTI’s
environment policy, which has management-level and board
oversight also focuses on “protecting the environment,
minimizing use of natural resources and respecting people,
communities and biodiversity”.
In 2023, we have also developed a JT Group Biodiversity
statement which have been signed by the CSO to accelerate ourcommitment for biodiversity.

C15.2(C15.2) Has your organization made a public commitment and/or endorsed any
initiatives related to biodiversity?
Indicate whether your organization Biodiversity-related public Initiatives endorsed
made a public commitment orcommitments
endorsed any initiatives related tobiodiversity

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Row Yes, we have made public
1
commitments and publicly endorsed
initiatives related to biodiversity

Adoption of the mitigation
hierarchy approach
Commitment to not explore
or develop in legallydesignated protected areas
Commitment to respect
legally designated protected
areas

SDG
Other, please specify
Declaration of
Biodiversity by
Keidanren and Action
Policy.

Other, please specify
Ensure a sustainable
wood supply for our
product supply chains.

C15.3(C15.3) Does your organization assess the impacts and dependencies of its value
chain on biodiversity?
Impacts on biodiversity
Indicate whether your organization undertakes this type of assessment
Yes

Value chain stage(s) covered
Direct operations
Upstream

Tools and methods to assess impacts and/or dependencies on biodiversity
CBD – Global Biodiversity Framework
ENCORE tool
TNFD – Taskforce on Nature-related Financial Disclosures
Other, please specify
Aqueduct country ranking EPI Score

Please explain how the tools and methods are implemented and provide anindication of the associated outcome(s)The tobacco business’s impact on biodiversity was qualitatively analyzed using the
IUCN Guidelines (2021) as mentioned in the TNFD, CBD, ENCORE, Aqueduct country
rankings (for water stress) and EPI score. The scope, severity and control of impact
were qualitatively rated for each region and multiplied together to assess overall impact.
We are planning to do quantitative assessments at local level and expand theassessment to all parts of the business and entire value chain.

Dependencies on biodiversity
Indicate whether your organization undertakes this type of assessment
Yes

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Value chain stage(s) covered
Direct operations
Upstream

Tools and methods to assess impacts and/or dependencies on biodiversity
CBD – Global Biodiversity Framework
ENCORE tool
TNFD – Taskforce on Nature-related Financial Disclosures
Other, please specify
Aqueduct country ranking EPI Score

Please explain how the tools and methods are implemented and provide anindication of the associated outcome(s)The tobacco businesses’ dependance on biodiversity was qualitatively analyzed using
the IUCN Guidelines (2021), as mentioned in the TNFD, CBD, ENCORE, Aqueduct
country rankings (for water stress) and EPI score. The scope, severity and control ofimpact were qualitatively rated for each region and multiplied together to assess overall
impact. We are planning to do quantitative assessment at local level and expand theassessment to all parts of the business and the entire value chain.

C15.4(C15.4) Does your organization have activities located in or near to biodiversitysensitive areas in the reporting year?
Not assessed

C15.5(C15.5) What actions has your organization taken in the reporting year to progress
your biodiversity-related commitments?
Have you taken any actions in
Type of action taken to progress biodiversity- related
the reporting period to progress commitments
your biodiversity-related
commitments?
Row Yes, we are taking actions to
1
progress our biodiversity-related
commitments

Land/water protection
Land/water management
Education & awareness
Other, please specify
As part of our commitment to biodiversity in 2022, we
conducted a qualitative assessment for considering
measurements of biodiversity. The assessment
included dependency and impact evaluation on
biodiversity.

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C15.6(C15.6) Does your organization use biodiversity indicators to monitor performanceacross its activities?

Row
1

Does your organization use indicators to monitor
biodiversity performance?

Indicators used to monitor
biodiversity performance

Yes, we use indicators

Response indicators

C15.7(C15.7) Have you published information about your organization’s response tobiodiversity-related issues for this reporting year in places other than in your CDP
response? If so, please attach the publication(s).
Report typeContent
elements

In voluntarysustainability
report or othervoluntarycommunicationsContent of・Responding to the challenge (https://www.jti.com/newsbiodiversity- views/responding-challenge):
relatedJT Biodiversity Statement
policies or・Environment and our operationscommitments (https://www.jt.com/sustainability/environment/operations/index.html
Other,
pleasespecify

Attach the document and indicate where in the document therelevant biodiversity information is located):1

Initiatives
to securebiodiversit
y in ourdirect leaf
supplychain
1biodiversity_statement.pdf

C16. Signoff
C-FI(C-FI) Use this field to provide any additional information or context that you feel isrelevant to your organization's response. Please note that this field is optional and is
not scored.

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C16.1(C16.1) Provide details for the person that has signed off (approved) your CDP climatechange response.
Row 1

Job title

Corresponding job category

Chief Executive Officer (CEO)

Chief Executive Officer (CEO)151