Basis of Reporting
This outlines the scope, and the way we de ne, calculate, and consolidate, notably for Compliance,
Human resources, Workplace health and safety, Environment, and Community investment. We provide
the information in three categories below:

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONSThe scope of the data (correct
for the business structure of
the JT Group as of December
31, 2019) and any exclusions, if
applicable. We report data for
We clarify the meaning we
attach to speci c terms used aspart of our performance data
points.

the entire JT Group, including

We provide information for thesubsidiaries, wherever possible.

calculations, formulas,

In the middle of 2015, the JT

consolidation method, and any

Group withdrew from theassumptions or estimates

beverage business. As a result,used.

we excluded this business from
historic reported data from2015, or stated otherwise
where that was not possible orappropriate.

Table of contents■

Compliance■

Human resources■

Workplace health and safety■

Environment■

Community investment

■Other de nitions

Compliance

NON-DISCRIMINATIONGRI 406-1
Total number of incidents of discrimination and corrective actions taken

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

An incident of discrimination is
described as an act of treating
an employee differently by
imposing unequal burdens or
denying bene ts, rather thantreating each employee fairly,
based on individual merit.
Discrimination can also include
cases of harassment, which is

The number of grievances arede ned as comments or

The entire JT Group, including

counted based on exported

actions that are unwelcome, or

subsidiaries*A.

data from our Reporting

should reasonably be known tobe unwelcome, to the person
toward whom they are
addressed, which has the
purpose or effect of violating an
individual’s dignity or creating
an intimidating, hostile,
degrading, humiliating, or
offensive environment.

Concerns Mechanism.

NUMBER OF REPORTED CASES OF GRIEVANCESABOUT HUMAN RIGHTS DEFINITIONSDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONSFor JT and Japanese domestic
Group companies, we include
cases related to harassment(Including sexual harassment
and bullying), and humanrelations. For our international
tobacco business, we include

The number of reported cases
The entire JT Group including

is counted based on exported

subsidiaries*A.

data from our Reporting
Concerns Mechanism.

cases related to child labor,harassment, discrimination,
physical threats and violence,and data privacy.

NUMBER OF REPORTED CASES OF FRAUD AND
MISUSE OF COMPANY ASSETS
DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONSFor JT and Japanese domestic
Group companies, we include
cases related to inappropriate
use of company assets. For ourinternational tobacco business,
we include cases relating to
fraud and theft of the JT Groupand third-party assets, misuseof IT resources, and the casesof intellectual property
infringements recorded under
the Reporting Concerns
Mechanism.

The number of reported cases
The entire JT Group including

is counted based on exported

subsidiaries*A.

data from our Reporting
Concerns Mechanism.

NUMBER OF REPORTED CASES OF GRIEVANCESABOUT IMPACTS ON SOCIETY
DEFINITIONSSCOPE

We have de ned our main areasof impacts on society as antibribery and corruption and anti-

DATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONSThe number of reported cases
The entire JT Group including*Asubsidiaries .

competitive behavior.

is counted based on exported
data from our Reporting
Concerns Mechanism.

NUMBER OF REPORTED CASES OF GRIEVANCESABOUT LABOR PRACTICESDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONSFor JT and Japanese domestic
Group companies, we include
cases relating to improper work
instructions, management’s
work attitude, colleagues’ work
attitude, personnel assessment,
personnel transfers, overtime

The number of grievances ispay, retirement issues, laborcounted based on exported

contracts, labor conditions,data from our Reporting

work environment, and smoke

The entire JT Group including

Concerns Mechanism. Excluded

environment. For our

subsidiaries*A.

from the data for ourinternational tobacco business,international tobacco business

we include cases relating to

are HR cases that are classi ed

breach of HR policies andas con dential.

procedures, con ict of interest,
retaliation, unlawful dismissal,
inappropriate behavior, nonrespect for employee safety,
and severe disrespectful
behavior.

NUMBER OF GHE REQUESTS
DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONSThe number of gifts, hospitality,and entertainment (GHE)
requests, including thosereported via our GHE

Solely our international tobacco
business*E.

Data is collected and collated
through our GHE application
portal.

application portal.

PERCENTAGE OF EMPLOYEES WHO RESPONDEDTO COMPLIANCE SURVEY
DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

The data is calculated based on
The percentage of employees

Our Japanese operations,

who responded to our annual

including subsidiaries ofcompliance survey, conductedJapanese domestic

online, or by a paper

businesses*C, excluding Torii

questionnaire.

Pharmaceutical.

an assumption that all
employees with a valid
corporate email address receive
an invitation to complete thesurvey, and all employees who
do not have an email address
receive a paper questionnaire.

PERCENTAGE OF ELIGIBLE EMPLOYEES WHO
PARTICIPATED IN THE JT GROUP CODE OF
CONDUCT TRAININGDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

The training data is calculated
The number of employees who
underwent training, namely elearning regarding the JT Group
Code of Conduct.

Our Japanese operations,based on an assumption that all

including subsidiaries of

employees with a valid

Japanese domestic

corporate email address receive

businesses*C, excluding Torii

electronic communications

Pharmaceutical.

regarding the JT Group Code of
Conduct.

Human resources

WORKFORCE INFORMATIONGRI 102-8
Information on employees and other workers

DEFINITIONSWorkforce consists of people
working for the Company at theend of the year as follows:

SCOPE

DATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONSThe entire JT Group including
subsidiaries*A, excluding
entities where an SAP system
has not yet been introduced.
They are newly acquired
businesses and they account■Full-time employee: isfor around 30% of our total

de ned according toworkforce.

national legislation andpractice regarding working

We provide the following datatime (such as nationalwith limited scope due to data

legislation that de nes “full-collection methodology:time” as a minimum of 9months per year and aminimum of 30 hours perweek).
■

Part-time employee: is■

The gender breakdown ofde ned as an employee

temporary part-time

whose working hours per

employees: solely our

The gures are calculated

week, month, or year, areinternational tobacco

based on exported data fromless than ‘full-time’, asbusiness*E.

our HR systems.

de ned above.
■■■

The breakdown ofSupervised worker: issupervised workers: ourde ned as an individual who

Japanese operations,performs regular work on-

including subsidiaries ofsite for, or on behalf of, theJapanese domesticorganization.

businesses*C.

Permanent contract: isde ned as a contract for anindeterminate period.

■

No substantial portion of our

Temporary contract: iswork is performed by workers

de ned as a contract for a

who are legally recognized aslimited duration or

self-employed, or by individuals

determinate period.

other than employees orsupervised workers, including
employees and supervised
workers of contractors.

PERCENTAGE OF TOTAL ELIGIBLE EMPLOYEESCOVERED BY COLLECTIVE BARGAINING
AGREEMENTS
GRI 102-41
Collective bargaining agreements

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONSOur Japanese operations,
including subsidiaries ofJapanese domestic
businesses*C. In the JT Group’s
companies, 23 of them have
An employee is covered by alabor unions and 33 don’t.

collective bargaining agreement

Therefore, the latter is out of

if the employee declares theirscope.

intentions to be part of a tradeunion and pays periodical union

Data from our internationaldues.

tobacco business is excluded,

Data is calculated as of the endof the year, using data held in
our HR systems.

because the law in some of thecountries where we operateprohibits us from investigating
whether an employee isunionized.

MARKET PRESENCEGRI 202-1
Ratios of standard entry level wage by gender compared to local minimum
wage at signi cant locations of operation-

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

Signi cant locations for thisFor our international tobaccoindicator are de ned as JT

business, the scope includes

Tokyo HQ, JTI Moscow, JTI UK

permanent full-time and part-and JTI Trier factory. Tokyo istime employees, and temporary

our headquarters, Moscow isfull-time employees. In JT, thethe HQ o ce of the JTI Russia

scope includes only permanentcalculation is hourlymarket – this market has thefull-time and part-timeminimum wage and monthly

highest number of employees in

employees. Temporary full-timeentry-level wage.

our international tobacco

employees are excluded.

business and our international■■

JT Tokyo HQ: the basis for

JTI Trier factory: the basis

tobacco business has afor calculation is hourly

signi cant presence in the UK.

minimum wage and hourly

JTI Trier factory is the biggest

entry-level wage.

manufacturing site in the JT
Group.

■

JTI Moscow: the basis forcalculation is yearlyStandard entry-level wage isminimum wage and yearlyde ned as the theoreticalentry-level wage.

lowest wage in the location andis therefore equal to, or lower■

JTI UK: the basis for

than, the actual lowest wage

calculation is hourly

paid in the entity.

minimum wage and yearly
entry level-wage.

Local minimum wage refers tocompensation per hour or otherunit of time for employment
allowed under law.

■

JT Tokyo HQ: o cialminimum wage of the Tokyo
metropolitan area.

■

JTI Trier factory: o cialGerman minimum wage.

■

JTI Moscow: o cialminimum wage of Moscow
City.

■

JTI UK: o cial U.K.
minimum wage.

EMPLOYMENTGRI 401-1
Total number and rates of new employee hires and employee turnover by age
group, gender, and region

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONSThe scope of this data isdetailed below, and excludes
employees in entities where an
SAP system has not yet been
introduced. These breakdowns
cover permanent full-time, parttime employees, and temporary
full-time employees. Employeestransferring from other JT
Group’s companies are
excluded, and not classi ed asa new employee hire.

The turnover and new employee
numbers are based on exported
data from our HR systems, atthe end of the year.

New employee hires are de ned
as the number of new■

Number and rate of new

employees joining the JT

employees by gender: theGroup. Employee turnover isentire JT Group, including

de ned as the number ofsubsidiaries.*A.

■

number of turnover, divided
by the total number of

employees who left the JT
Group for any reason,
voluntarily or not. Employee age

Turnover rate: the total

employees at the end of the■

Number and rate of newyear.

employees by age: ouris classi ed in three groups:

Japanese domestic tobacco

under 30, between 30 and 50,

and pharmaceuticaland above 50 years of age.

businesse*D.

■

New employee hire rate: thetotal number of new
employee hires, divided by
the total number of■

Number and rate of turnover

employees at the end of theby gender: the entire JT

year.

Group, including
subsidiaries*A.
■

Number and rate of turnoverby age: the entire JT Group,
including subsidiaries*A,
excluding Akros PharmaInc., Fuji Foods, and SaintGerman America.

GRI 401-2
Bene ts provided to full-time employees that are not provided to temporary or
part-time employees, by signi cant locations of operation

DEFINITIONS

Signi cant locations for thisindicator include JT Tokyo HQ,
and JTI Geneva HQ.

SCOPE

The data scope is aligned withthe above de nition.

DATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

Bene ts for temporary part-time
employees in Geneva have beenstated pro rata.

LABOR/MANAGEMENT RELATIONSGRI 402-1
Minimum notice periods regarding operational changes

DEFINITIONSSCOPE

We disclose signi cantoperational changes that havesubstantial consequences for a
Minimum notice periods arelarge proportion of employees.

de ned as those required, if any,

The reported information

by law in the country where thecorresponds to closures oroperational change occurs.

withdrawal from businesspublicly announced during thisyear or earlier, but which had
not been completed yet.

TRAINING AND EDUCATIONDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

Notice periods are calculated
and disclosed in two different
ways: the number of months
between the announcement of
the closure and the rst
redundancies, and the numberof months between theannouncement of the closureand the closedown.

GRI 404-2
Programs for upgrading employee skills and transition assistance programs

DEFINITIONS

SCOPE

We consider skills management
programs that take account of
employees’ needs and future
career opportunities, as well as

DATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONSThe examples of programs are
We disclose global and local

disclosed in the public domain

development programs.

such as our Global website andIntegrated Report.

requirements of the business.

GRI 404-3
Percentage of employees receiving regular performance and careerdevelopment reviews, by gender and by employee category

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

Data is calculated as the total
The entire JT Group, including

number of employees who

subsidiaries*A, and it includes

received a performance andWe consider an employee to bepermanent full-time and part-career development review inreceiving regular performancetime employees, and temporary

2018 divided by the total

and career development

full-time employees, but

number of employees at thereviews if the employee has an

excludes employees in entities

end of 2018, excluding

opportunity to have their

where an SAP system has not

employees working in ourdevelopment and businessyet been introduced. However,factories where they receive theobjectives, as well as

the scope of breakdown byreview on paper, which cannot

competences, evaluated bypositions is our Japanesebe tracked by our HR system.

their superior at least once adomestic tobacco,

New hires joining in Q4 2018 inyear.

pharmaceutical, andour international tobacco

international tobacco

business are excluded from the*Dbusinesses .

data, as they were not eligible
for a 2018 performance review.

DIVERSITY AND EQUAL OPPORTUNITYGRI 405-1
Composition of governance bodies and breakdown of employees per
employee category according to gender, age group, minority groupmembership, and other indicators of diversity

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

Employee age is classi ed in

The entire JT Group, including

The gures are calculated

three groups: under 30, between

subsidiaries*A, excluding

based on exported data from30 and 50, and above 50 years

employees in entities where an

our HR systems.

of age.

SAP system has not yet been
introduced. Akros Pharma Inc.,For JT and Japanese domestic

Fuji Foods, and Saint-Germain

subsidiaries, the following

America are included in thede nitions are used fordata by position and gender but

employee categories:

excluded from the data by age
group. The data consists ofpermanent full-time and parttime employees, and temporary
full-time employees. We■

Executive O cers aredisclose only the gender andpersons who are appointed

age breakdowns.

by the Board of Directors, areassigned certain
responsibilities, anddelegate relevant authorities
in accordance with the rules
de ning the extent ofresponsibility and authority.
■

Management is de ned as
persons in positions ofsupervision or management
according to national
legislation and practice, andexcluding Executive O cers.

■

Employees are persons who
are not in management
positions.

For our international tobacco
business, the following
de nitions are used for
employee categories:■

Employees that are
members of the Executive

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

Committee are categorized
as Executive O cers.
■

The Vice President andDirector-level employees are
categorized as
Management.

■

Persons of Manager level
and Associate level are
categorized as Employees.

EQUAL REMUNERATION FOR WOMEN AND MEN

GRI 405-2
Ratio of basic salary and remuneration of women to men by employee
category, by signi cant locations of operation

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

Signi cant locations for thisIn JT Tokyo HQ, the scope

The gures for JT Tokyo HQ,

indicator include JT Tokyo HQ,

includes permanent full-time

JTI Geneva HQ and JTI UK are

JTI Geneva HQ, and JTI UK.

and part-time employees, andcalculated based on ‘annual

temporary full-time employees.

base salary.’

Unless speci cally stated, theIn JTI Geneva HQ and JTI UK,

following de nitions are used

the scope includes permanent

In JT Tokyo HQ, each of thefor employee categories for JT:

full-time employees, andcategories de ned above

excludes those who are not(Executive O cers,

paid in CHF, and members ofManagement, and Employees)

the Executive Committee. In JTI

includes multiple grades. We

UK, Vice Presidents are

select grades that include both

Executive O cers are

excluded as no female

female and male employees topersons who are appointed

employee is at this position.

calculate the ratio of annual■

by the Board of Directors, arebase salary of women to men.

assigned certain

Then, those pay ratios are

responsibilities, andconsolidated into the above

delegate relevant authorities

three categories based on thein accordance with the rules

weighted average of employees

de ning the extent ofwithin each grade.

responsibility and authority.
For JTI Geneva HQ and JTI UK,■

Management is de ned as

we calculate the average annual

persons in positions ofbase salary by gender for eachsupervision or management

employee category de ned

according to national

above. This average is used tolegislation and practice, andcalculate the ratio of annual

excluding Executive O cer.

base salary of women to men
within each category.

■

Employees are persons who
are not in management
positions.

The following de nitions areapplied for employee categories
for our international tobacco
business:■

Vice President■

Director

DEFINITIONS■Manager■

Associate

SCOPE

DATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONSPERCENTAGE OF MANAGEMENT POSITIONS HELDBY WOMEN AT THE END OF THE YEAR
DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

In our Japanese operations,
including subsidiaries of ourJapanese domestic businesses,
an employee is categorized at a

Data is calculated as the total

position of management if thenumber of women holding aemployee is in a position ofsupervision or management,
according to national legislationand practice, but is not an
Executive O cer.
In our international tobacco
business, an employee iscategorized at a position ofmanagement if the employee is
Director level or Vice President
level. However, the ratio of ourinternational tobacco business

management position at the
The entire JT Group, including

end of the year, divided by thesubsidiaries*A, excluding

total number of employees who

employees in entities where an

had a management position at

SAP system has not yet been

the end of the year. In JT,

introduced. The data consists

employees who were inof permanent full-time and part-management positions, but who

time employees, and temporary

have been reassigned to pre-full-time employees.

retirement positions, as they arereaching the mandatory
retirement age and they are
excluded from the calculation.

doesn’t include Vice President,
as our target only includes
directors.

PERCENTAGE OF MANAGEMENT POSITIONS HELDBY INTERNAL HIRESDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

In our Japanese operations,
including subsidiaries ofJapanese domestic businesses,
an employee is categorized at a
position of management if theemployee is in a position ofsupervision or management,
according to national legislationand practice, but is not an
Executive O cer.
In our international tobacco
business, an employee iscategorized at a position ofmanagement if the employee is

The entire JT Group, including
subsidiaries*A, but it excludes
employees in entities where an
SAP system has not yet been
introduced. The data consistsof permanent full-time and parttime employees, and temporary
full-time employees.

Data is calculated as the total
number of management
positions lled by internal hires
at the end of the year, divided by
the total number ofmanagement positions lled at
the end of year.

Director level or Vice President
level. We de ne internal hires as
current employees who would
be reassigned to a new position
by promotion or internaltransfer.

TOTAL NUMBER OF TALENT PARTNERSHIPPROGRAM EXCHANGESDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

Total number of our TalentPartnership Program

Data is calculated as the sum of

exchanges is de ned as the

Our Japanese domestic

the number of functional

sum of employees who aretobacco, pharmaceutical, andassignees and development

transferred as functional orinternational tobacco

assignees seconded between

development assignees frombusinesses*D.

JT and JTI at the end of the

JT to JTI, or vice versa, at theend of the year.

year.

Workplace health and safety

OCCUPATIONAL HEALTH AND SAFETY
GRI 403-2
Hazard identi cation, risk assessment, and incident investigation

DATA CALCULATION,
DEFINITIONSSCOPECONSOLIDATION METHOD,
AND ASSUMPTIONSIn the JT Group, the words

We consider that a newly

In our Japanese operations,“work-related“ injuries or illness

acquired business needs 18

including subsidiaries ofand “workplace” injuries ormonths to become fully

Japanese domestic businesses,

illnesses are used

integrated in the JT Group way

health and safety data isinterchangeably.

of working from a health andreported to headquarters bysafety perspective. This is theindividual functions and the

The following cases aretime needed to implement all

subsidiaries on an annual basis,considered to be work related.

our health and safety polices,while serious incidents are

standards and practices andreported immediately. The

attain a minimum safety culture

number reported is based onlevel. We include in our report 6

the number of health and safetymonths full data after the

related events that were

integration phase to ensure

submitted to, and are

An employee or a supervised

consistency and accuracy ofrecognized by, relevant

worker suffers from an injury

data trends versus the target.

Japanese authority as such.

■or occupation-relateddisease as a result of

In our international tobacco

carrying out their duties.

business, health and safety
data is collected globally and■■A third-party contractor

Number of fatalities: theindividual sites and locations

suffers from an injury or

entire JT Group, including

report to the headquarters

occupation-related diseasesubsidiaries*A. It covers

through a system on an

as a result of carrying out

number of fatalities ofongoing basis.

their duties. (including on-

employees (incl. supervised

site third-party operations).

workers), contractors, andThe calculation is performed inthird parties resulting fromthe following manner:■

A person suffers an injury or

an incident involving an

develops an occupation-asset, such as a facility, or a

related disease associatedvehicle being driven forwith the JT Group’s own

business purposes.

operations and, or a JT
Group employee while he or
she is on duty.

■■

Number of lost-time injury:

sum of all fatalities within

the entire JT Group,

our de ned scope.

including subsidiaries*A. It
covers employees (incl.

■

injuries within our de ned

contractors.

scope.

recordable injuries, lost-time
injuries and occupational■

Lost time injury rate: thediseases. Any work-related

entire JT Group, including

injury requiring more than rst

subsidiaries*A. It includes

aid is de ned as recordable.

employees (incl. supervised
workers). The rate ofRecordable Injuries include:

contractors is not available
because their working hours

Number of lost-time injuries:
the sum of all lost-timesupervised workers), andFind below our de nitions of

Number of fatalities: the■Lost-time injury rate*: thesum of all lost-time injuries
divided by 200,000 hours
worked within our de ned
scope.

■

Fatalities■

Lost time Injuries (LTI) of 1

are not managed by the JT■

Group.
day or more■actual days of absence
divided by theoretical■

Restricted Work Cases(RWC) preventing someone

Absenteeism rate: solely ourworking days (regularJapanese domestic tobacco

working days) within ourand pharmaceuticalde ned scope.

*Bbusiness .

from doing his/her regularjob (no length de ned)■

Absenteeism rate: total■■

Occupational diseases rate*:

Occupational disease rate:

the sum of all occupational

In our Japanese operations,diseases divided by 200, 000

Medical Treatment Cases

the scope was solely ourhours worked within our(MTC) is an injury thatJapanese domestic tobaccode ned scope.

requires medication,and pharmaceuticaltreatment and medical carebusinesses*B in 2015 and it

normally administered by a

expanded to our Japanese

healthcare professional andoperations, including

is beyond rst aid.

subsidiaries of Japanese■

Number of recordable
injuries: the sum of allrecordable injuries within ourde ned scope.

domestic businesses*C from2016. In our international
tobacco business, we
Lost-time injury is a work-

started covering all the* Data of actual supervised

related injury that results in an

locations in 2018. Therefore,

workers’ working hours is notindividual being unable to workfrom 2018, the data scope isavailable in our Japanese

on a subsequent scheduled

the entire JT Group,

operations, therefore it isworkday or shift. It doesn’t

including subsidiaries*A.

calculated in the following

include fatalities.
Occupational diseases aremanner: regular working days■

Number of recordable

multiplied by regular working

injuries : Our Japanese andhours.

negative impacts on healthinternational tobacco

arising from exposure tobusiness. Only employees

hazards at work. ‘Occupational(incl. supervised workers)

diseases’ indicates damage toare in scope. In ourhealth and includes diseases,

Japanese domestic groupillnesses, and disorders. The

companies, the data ofterms ‘disease’, ‘illness’, andsupervised workers in 2015

‘disorder’ are often used

is not available, therefore weinterchangeably and refer toused the 2017 data as aconditions with speci cproxy for 2015.

symptoms and diagnoses.
Mental illness is included in■

Recordable injury rate: Our
Japanese and international

occupational diseases. A

tobacco business. Only

mental illness is considered to

employees (incl. supervised

be work related if it has been

workers) are in the scope. In

noti ed voluntarily by the

our Japanese domestic

worker and is supported by angroup companies, the data

opinion from a licensedof supervised workers inhealthcare professional with2015 is not available,

appropriate training andtherefore we used the 2017

experience stating that thedata as a proxy for 2015.

illness is work related.

Fatality is a death resulting
from a work-related injury orillness/occupational disease.
Absenteeism is, medical leave,sick leave, and absent fromwork without noti cation forpermanent leave (excluding
paid leave) for full-time
employees. Part-time
employees are excluded as outof scope.
Employee: Individual who is inan employment relationshipwith the organization, according
to national law or its
application.
Supervised worker is de ned as
an individual who, though not
an employee, performs regular
work on-site for, or on behalf of,
the organization.
Contractor: Individual who is
not a JT Group employee thatprovides services, described ina contract, to the JT Group,
whose work is not under the JT
Group's supervision. Those who
provide services temporarily(E.G. gardener, carpenter) are
not de ned as contractors.
Supervised workers are notcategorized as contractors
because their work is monitoredby the JT Group employees. We
report any health and safety
data of supervised workers
under employees.
Sub-contractor: Individual who
is not by a JT Group employee
and is hired a JT Group
contractor to perform a speci ctask as part of the overall
project from which the JT
Group bene ts. (E.G.
Electricians who work as part ofa construction project a JT
Group workplace.) They are
categorized as third parties.

VEHICLE ACCIDENTS AND VEHICLE ACCIDENTFREQUENCY RATEDEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONSOur Japanese domestic
Our Japanese domestic
operations de ne a vehicle
accident as any incident that

tobacco, pharmaceuticals, andinternational tobacco
businesses*D.

results in the death or an injury
to an employee (incl.

■

Number of vehicle

supervised workers), part-time

accidents: sum of all vehicle

workers and/or third party.

accidents within our de ned■

scope.

Number of vehicle

Our international tobacco

accidents: covers vehicles

business de nes a vehicle

and motorcycles used by ouraccident as any incident

employees (incl. supervised

rate: the number of vehicle

involving a eet vehicle thatworkers). In our Japanese

accidents divided by million

results in death or an injury tooperations, part-time

kilometers driven within ouran employee (incl. supervised

employees are also in thede ned scope. While ourworkers) and/or third party.

scope.

international tobacco■

Vehicle accident frequency

business uses actual data
Vehicle accident frequency

for kilometers driven, JT

considered to be vehicle

rate: covers the number ofcalculates it based on theaccidents. In 2019, we started

vehicle accidents per million

volume of fuel used by type.

excluding any cases where no

kilometers driven.

If no injury occurs, they are not■injury occurs, from our vehicle
accidents.

PERCENTAGE OF CIGARETTE AND TOBACCORELATED FACTORIES CERTIFIED TO OHSAS 18001
SAFETY MANAGEMENT STANDARD

DEFINITIONS

Cigarette and tobacco-related
factories include all our leaf
processing, cigarettes, andtobacco product manufacturing
facilities.

SCOPE

Our Japanese domestic
tobacco and pharmaceuticalbusinesses*D, excluding
markets, R&D, non-tobacco
material processing factories,
and other support services.

DATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

Certi cation information iscollected at individual factories.
The percentage is calculated as
the number of certi ed
factories and locations, divided
by the total number of all
factories within scope.

Environment

OVERVIEW
SCOPE

We use an operational control approach to determine the scope and boundaries of our environmental datareporting, which covers the entire JT Group including subsidiaries*A, as well as some a liates, and some
contract manufacturers that meet speci c criteria. Thus, coverage of environmental data is wider than other*Alevel data shown in the other sections of our reporting.
We restate our environmental data, in accordance with our recalculation policy, to take account of signi cantchanges to our business, such as acquisitions, divestments etc. We do this so as to allow a fair comparison ofenvironmental performance over time. We carried out such a recalculation exercise in 2019, hence data foryears prior to 2019 have been restated.

ENERGYGRI 302-1
Energy consumption within the organization

GRI 305-1
Direct GHG emissions (Scope 1)

GRI 305-2
Energy indirect GHG emissions (Scope 2)

GRI 305-3
Other indirect GHG emissions (Scope 3)

GRI 305-5
Reduction of GHG emissions

DEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD, AND
ASSUMPTIONS

We calculate energy consumption, and Scope 1 and
2 GHG emissions, based on actual energy
We measure energy consumption and GHG
emissions using the World Resources
Institute/World Business Council for Sustainable
Development Greenhouse Gas Protocol: A
Corporate Accounting and Reporting Standard(2004 revised edition) and Greenhouse Gas
Protocol: Corporate Value Chain (Scope 3)
Accounting and Reporting Standard as guidance.
We report GHG emissions across three areas:

consumption at our sites and locations frominvoices and meters. Where this information is notavailable, we use extrapolations based on actual
data from a similar site or location to provide
estimated energy consumption, which is then used
to calculate associated GHG emissions. Production,
oor area, or full-time equivalent (FTE) data are themain benchmarks used to calculate intensity
metrics that are used in the extrapolation process.
For GHG reporting, we adopt a market-based
approach and in Japan we use GHG emission
conversion factors for each electricity supplier,published by the Japanese government for the■

Scope 1: direct GHG emissions from corporate
activities, such as burning of fossil fuels atfactories.

■

Scope 2: indirect GHG emissions fromconsumption of purchased electricity, heat, or■

latest available year. In other countries, we use GHG
emission conversion factors provided by theInternational Energy Agency (IEA), the U.K.
Department for Environment, Food and Rural
Affairs, along with supplier-speci c GHG emission
conversion factors, where electricity is sourced

steam.

from low carbon energy sources.

Scope 3: other indirect emissions, including fromFor calculating Scope 3 GHG emissions, emissions

the manufacture of products bought from otherfactors come from a variety of sources, including

companies.

emissions factors from third-party databases andour own life cycle assessments.
All emissions factors are reviewed and, where

The reporting unit for energy consumption is
terajoules, and for GHG emissions is 1,000 metrictons CO2 equivalent.

relevant, restated annually to re ect the mostaccurate representation of emissions attributable to
the JT Group. Electricity factors are updated tore ect actual grid performance for the relevantyear(s) as published by the IEA; or the most recent
if not yet available.

WATER AND EFFLUENTS

GRI 303-3
Water withdrawal

GRI 303-4
Water discharge

DEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD, AND
ASSUMPTIONS

Water withdrawal data and water discharge data
We record and report water withdrawal and water
discharge at our sites and locations, and take into
consideration the framework on water reporting set
out by CDP. And we report total water withdrawal
and breakdown by source, and total water discharge
and breakdown by destination. The reporting unit
for water withdrawal and water discharge is 1,000m3.

are collected at our sites and locations frominvoices and/or meters. If a site is unable to reportvolume of water withdrawal, we use extrapolations
based on actual data from a similar site or location
to provide estimated data. Production, oor area, or
FTE data are the main benchmarks used to
calculate intensity metrics that are used in theextrapolation process. In the absence of water
discharge data, it is assumed that water discharge
will be equivalent to water withdrawal.

WASTE

GRI 306-2
Total weight of waste by type and disposal method

DEFINITIONSDATA CALCULATION, CONSOLIDATION METHOD, AND
ASSUMPTIONS

Our sites manage their waste based on thefollowing waste management hierarchy: reduce,

Waste data is collected at our sites and locations,reuse, recycle, and recover. If these methods are notand is reported by handling method, primarily fromfeasible, a site will dispose of its waste (disposal

invoices. If a site is unable to report volume ofbeing incineration without energy recovery, or

waste generation, we use extrapolations based onland lling).

actual data from a similar site or location to provide
estimated data. Production, oor area, or FTE data

We report total waste generated and breakdown by

are the main benchmarks used to calculate

handling method that includes both non-hazardous

intensity metrics that are used in the extrapolationand hazardous waste. The reporting unit for waste

process.

generation is 1,000 metric tons.

PERCENTAGE OF ISO 14001 CERTIFIEDCIGARETTE AND TOBACCO-RELATED FACTORIESSCOPEThe scope of ISO 14001 data is cigarette and tobacco-related factories, including subsidiaries, such as nontobacco materials manufacturing factories, within our Japanese domestic tobacco and international tobacco
businesses only.

Community investment

LOCAL COMMUNITIESGRI 413-1
Percentage of operations with implemented local community engagement,
impact assessments, and development programs

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

Implemented local community
investment programs arede ned as investments inprojects that improve thequality of life of people where
we operate in an impactful way.
All community investment
programs have a recorded
output de ned following the

The gures are calculated

LBG criteria

based on data from our

www.lbg-online.net

community investment
The entire JT Group, including

In 2019, we assessed the*Asubsidiaries .

database, and data sourced
directly from markets, which is

impact of our community

cross-referenced with ourinvestment programs in 14

nance systems to con rm thatmarkets, and we are

the program was implemented.

continuously improving our
impact assessment
methodology. An operation isde ned as a country in which
we have a business presence.
Investments in communities
that relate to tobacco leaf
production are speci cally
excluded from this indicator.

ECONOMIC PERFORMANCEGRI 201-1
Direct economic value generated and distributed

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

The value of community
investment is the total sum of
inputs as de ned by the LBG
criteria
www.lbg-online.net
Investments include employee
time, cash, in kind, andmanagement cost contributions
for the programs included in
GRI 413-1 that are provided tobene t a community, and JT
International S.A.’s annual
endowment to the JTIFoundation.
The gures are calculated

The calculation of time andbased on data from ourmanagement cost is based oncommunity investment

the LBG methodology. For all
Japan-based employees, anaverage hourly rate provided by
the Japanese government isused. For our international
tobacco business, cost of time
is based on an average hourly
rate calculated using aweighted average salary(including bonuses) across all
work groups (excluding the
Executive Committee) based ondata for the year up to
December 31, 2019.
Cash contributions arecalculated based on the grossmonetary value donated.
In-kind contributions arecalculated taking into accountdepreciation for the goods orservices provided.

database and market reports,
The entire JT Group, including*Asubsidiaries .

and checked against nancial
reports. All nancial data isconverted from local currency
to Japanese yen at the time of
payment, using internallyagreed exchange rates.

Other de nitions

ANTI-COMPETITIVE BEHAVIOR / CUSTOMER,HEALTH AND SAFETY / MARKETING AND
LABELING / SOCIOECONOMIC COMPLIANCE /ENVIRONMENTAL COMPLIANCE
GRI 201-1
Total number of legal actions for anti-competitive behavior, anti-trust, andmonopoly practices and their outcomes

GRI 307-1
Monetary value of signi cant nes and total number of non-monetary
sanctions for non-compliance with environmental laws and regulations

GRI 416-2
Total number of incidents of non-compliance with regulations and voluntary
codes concerning the health and safety impacts of products and services
during their life cycle, by type of outcomes

GRI 417-2
Total number of incidents of non-compliance with regulations and/or
voluntary codes concerning product and service information and labeling

GRI 417-3
Total number of incidents of non-compliance with regulations and voluntary

codes concerning marketing communications, including advertising,promotion, and sponsorship, by type of outcomes

GRI 419-1
Signi cant nes and non-monetary sanctions for non-compliance with laws
and/or regulations in the social and economic area

DEFINITIONSSCOPEDATA CALCULATION, CONSOLIDATIONMETHOD, AND ASSUMPTIONS

Signi cant ne/monetary ne isset at a level that may have acertain impact on the nancial
position of the JT Group. A
signi cant ne is a ne which isreported to the designatedfunctions of our organization, in
accordance with the internalreporting requirements. We do
not report on decisions

Information concerning

imposing the ne, penalty, or

signi cant nes/monetary nes

warning if they are con dential,(including violations against

or not nal. Neither do wereport about pending actions.

The entire JT Group, including
subsidiaries*A.

voluntary codes resulting insigni cant nes) is reported
through an internal reporting

Voluntary codes are de ned asmechanism, and in accordancecodes/commitments made with

with internal reporting

third parties. An example ofrequirements.

such a voluntary code is theself-regulatory marketing
standard of Tobacco Institute ofJapan (TIOJ) with which ourtobacco business in Japan fullycomplies. The JT Group Global
Marketing Standards and otherinternal policies are not covered
as part of voluntary codes.

AGRICULTURAL LABOR PRACTICESDEFINITIONSDATA CALCULATION, CONSOLIDATIONSCOPEMETHOD, AND ASSUMPTIONS

Percentage of directly
contracted growers observed

Observation data is collected inagainst Agricultural Labor

individual markets, and reported

Practices.
In JT, we observe directly
contracted growers through site

calculated as the number oftobacco and international

directly contracted growers*D

tobacco businesses .

being observed by site visits orvisits and/or questionnaire

via questionnaire surveys,

surveys. In our international

divided by the total number oftobacco business, we observe

directly contracted growers.

them through site visits.

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

Read moreinternally. The percentage is
Our Japanese domestic

Related links
About ourreportingGlobal Reporting
Initiative (GRI)
Index

Basis of
Reporting

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