People
Human resources
We believe that highly skilled and talented
people form the foundation of a company’s
success and contribute to real sustainablegrowth. In light of this, the JT Group
proactively takes steps to secure long-term
engagement and employee satisfaction.
Our employees are assets to the Company,
and their skills and spirit are the driving force
behind everything we achieve. We arepleased to be an employer of choice, and our
positive workplace culture and environment
help us to attract, retain, and develop
talented individuals. We are also taking
further steps to create a diverse andinclusive culture.
With this in mind, we are currently focusing
on these four areas:■

Engaging with employees■

Talent development and retention■

Talent attraction■

Diversity, equity and inclusion

Read more

The JT Group health and safetyWe believe that our employees have the rightto be protected from work-related injuries
and illnesses. We are therefore responsible
for providing a safe working environment
and promoting a culture which prioritizes
health and safety.
We focus on creating safe workplaces,building safety competence, and developing
our safety culture. We align our health andsafety standards with international
requirements and always We focus on
creating safe workplaces, building safetycompetence, and developing our safety
culture. We align our health and safety
standards with international requirements
and always meet - and usually exceed - legal
requirements. Their scope extends beyond
our employees to cover contractors andvisitors to our operations.
Read moreImproving our social impact
Through our community investment
programs, we contribute to the sustainable
development of society by helping to makecommunities more inclusive andsustainable. At the same time, these
programs provide volunteering opportunities
for our employees to engage with local
communities and develop a variety of soft
skills. To assess how effective our approachis, we have set a community investment
target. We are also reporting on our Groupwide contributions to communities and ourprogress against our target.
Read more

Copyright© Japan Tobacco Inc. All rights reserved.

Human resources

The JT Group human resources management
philosophy
We believe that highly skilled and talented
people form the foundation of a company’s
success and contribute to real sustainablegrowth. In light of this, the JT Group
proactively takes steps to secure long-term
engagement and employee satisfaction.
Our employees are assets to the Company,
and their skills and spirit are the driving force
behind everything we achieve. We arepleased to be an employer of choice, and our
positive workplace culture and environment
help us to attract, retain, and develop
talented individuals. We are also taking
further steps to create a diverse andinclusive culture.

Our approach

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

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

Progress
We were certified as employer of choice in 61 countries with Top Employers certification. 19
out of these countries also hold other accreditations.
Read more about our latest progress on the JT Group's
tobacco business sustainability strategy.

To offer all our employees the best possible experience, we are focusing on four areas:

Engaging with
employees

Talentdevelopment
and retention

Talent attraction

Diversity, equity
and inclusion

Engaging with employees
As a responsible employer, we see engaging with employees as crucial. Our aim is to foster apositive and productive working environment, and to maintain constructive relationships with
unions.
We measure the effectiveness of our people-come-first culture through an annual employee
engagement survey at a regional or department level and a Group-wide survey every three years. The
feedback we receive from employees helps us to understand our strengths, progress, and areas for
improvement. It also helps us to make the JT Group an even better place to work, for talentacquisition and retention.

Highlights from our 2022 JT Group-wide
engagement survey
In 2022, we conducted a Group-wide
employee engagement survey targeting
more than 50,000 employees worldwide using, for the first time, the same questions
across all our JT Group businesses globally.
The survey response rate was 92%, which is
17% higher than the external benchmark.
Overall, the Employee satisfaction (ESAT)
score (“How happy are you working at thiscompany?”) was 77, below the Global Top
10% benchmark of 81. We can infer that the
impact of major internal and externalchanges in the working environment, suchas transformation in Japan and changes inworking patterns due to COVID-19 pandemic
have contributed to the low ESAT scores.
Given this result, we recognize that
improving employee engagement is anurgent issue and will implement initiatives at
executive level with a focus on clear andtransparent communication.

Freedom of association and trade unions
The JT Group supports freedom of association and the right to collective bargaining, even incountries where these freedoms are not a legal prerequisite. This means we are committed to open
and constructive relations with trade unions and works councils.
We have a long history of positive industrial relations. Across the JT Group, industrial relations are
based on individual countries' labor laws, and we aim for open and constructive relations with tradeunions and works councils. Dialogue with trade unions generally takes place within the jurisdictionof our local operations, and typical engagements cover aspects of company management, strategy,planning, and operational issues. If one of our sites ever has to cease activities, we work closelywith unions to ensure affected employees are treated fairly and often go beyond the minimum legal
requirements.

In line with EU legislation or regulations, we also have a voluntary European Works Council
agreement in place. Our European Works Council operates as an employee information andconsultation body for transnational issues relating to our operations in Europe. The Council has
regular meetings each year and is made up of employee representatives and members ofmanagement.

Talent development and retention
We believe there is no limit to what can be achieved. We provide freedom and opportunity to learn
and develop every day. We want everybody to adopt a continuous learning mindset that helps
achieve goals and advance to new, higher levels of performance.
We have implemented various global and regional learning programs to upskill our diverse
employees. Many of our courses are offered online, enabling employees to develop new skills evenremotely. We constantly invest in our employees, including those at managerial level, to ensure theyflourish in their careers.
Our commitment to talent development and retention is reflected in our internal hire rate formanagement positions, which has been above 90% for more than eight years. In 2022, 94.2% ofmanagement vacancies were filled by internally promoted candidates. We also hired many talented
people from outside the organization.
We believe that providing many different development and career opportunities combined withflexible ways of working is essential to improve employee engagement, which leads to long-term
employee retention, increased productivity, and improved quality of work. Across our Group, the total
employee turnover rate was 12.1% and the voluntary employee turnover rate* was 4.5% in 2022.
*The voluntary employee turnover rate in our Group does not include retirement and early retirement.

Learning and development for all employees at alllevelsAll our employees have access to comprehensive learning and development programs andinitiatives covering either basic or advanced leadership and/or functional skills. Our learning anddevelopment portfolio is fully digitalized so it is accessible to our people in all the locations where
we operate.
Employees of our tobacco business can choose individual or team development options. They haveaccess to 16,000 video courses through LinkedIn Learning, and can take part in targeted
microlearning masterclasses, selected courses from recognized business schools, and core training

programs which also include gamified solutions and learning simulations options. We also run
various cross-regional leadership development programs to support and accelerate thedevelopment of young talent. Our collaborative learning programs (coaching and mentoring) are
growing in popularity and in 2022, 1,325 employees were matched with either a professional coachor an internal mentor. All of these initiatives enable our people to continue to develop and mastertheir skills.
In Japan, we refreshed our learning programs for employees in 2020. Employees are now grouped
into five stages of development. At each stage, they participate in training programs on topics suchas capability development, understanding roles and responsibilities, and inner reflection. On top ofthis, we try to boost career development by linking off-the-job training with on-the-job training.

Performance appraisal and career development
Line managers play a key role in our employees’ careers and hold regular performance and career
discussions with their teams throughout the year. Regular communication between managers andemployees helps to leverage our employees’ full potential and boost their development.
In Japan, evaluations are conducted once or twice a year depend on position grades. The evaluationconsists of two main components: an employee’s personal performance achievements linked tofunction/team goals and an evaluation focused on individual progresses and behaviors. In addition
to the evaluation cycle, career planning interviews with line managers are conducted once a year for
all employees. In addition, in order to improve the quality of communications, we encourage to have1on1 meetings frequently and to discuss about various topics such as work progress, their career,and personal life. As part of this initiative, we have introduced "1-on-1 meeting training" as one of JT
training programs.
In 2022, 96.2% of our JT Group employees participated in the performance review. In addition, ouremployees can request 360-degree development feedback.

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

With this in mind, in 2019 out tobacco business launched “Make It Bright”, its first global internshipcompetition, with students from 17 countries pitching ideas for positive change to our business. The
success of this first edition led to the initiative being expanded in 2021 to 36 countries with 8,000+
students participating. The 2022 competition was launched in October 2022 with a new campaign, arefreshed look and feel, and more flexibility for students to participate with their ideas about theworkplace of tomorrow. The winners from each country went head-to-head in the final in May 2023
to win a six-month paid internship with JTI, with several winners becoming full-time employees.

Diversity, equity and inclusion
Motivated employees with diverse talent are the bedrock of our success. JT Group has employeesof over 100 nationalities, and establishing a diverse, equitable and inclusive workplace for all our
employees to enjoy their work and per-form to the best of their abilities is therefore a top priority for
us. We respect different backgrounds and values, such as age, gender, sexual orientation, disability,
ethnicity, religion, and nationality, as well as experience and expertise. We believe that diverse
workforce brings a rich mix of viewpoints and perspectives, which can inspire new ideas, lead tosolutions to complex issues, and drive our business forward. Our continuous efforts to promote
diverse, equitable and inclusive culture in our workplace have been recognized by numerous awards
externally.

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

In Japan, we run various training sessions and seminars to help women to grow in their careers. We
are also working to expand our support systems for balancing work and family life. In addition, weoffer opportunities to take part in external training programs and discussions with senior
management in order to promote career advancement among female employees.
In our tobacco business, we make gender equality a formal business priority. We are committed toincreasing the representation of women in leadership positions as well as reaching gender parity at
all levels. The world’s population is balanced, so we shouldn’t be any different.
Our global gender equality strategy aims to provide both women and men equal access to growthand opportunities in our workplace. We are investing in a number of initiatives to accelerate theadvancement of women and spark progress towards gender equality globally. Senior leadershiphave taken special training on identifying the obstacles preventing talented women from advancing
their careers.
We have implemented a number of talent management and recruitment measures. These include
diverse and balanced interview panels, as well as a 50-50 equal gender slate of candidates within
the final round of our interview process for leadership positions.

Global Equality Standard

In 2021 JTI was one of the first companies
in the world to receive Ernst & Young's new
Global Equality Standard, which measuresequal opportunities and equal pay in theworkplace.

In particular, we were commended for our
flexible working measures, best-in-classglobal family leave policy, employee
resource groups, well-being programs, digitallearning and development schemes, and
more.

LGBTIQ+ inclusion
Supporting our LGBTIQ+ employees is vital if we’re to create a more equal company, in which
everyone is empowered to be and do their best. As part of our LGBTIQ+ Inclusion, we develop
strategies, professional development opportunities and LGBTIQ+ inclusive policies in order to create
workplaces which are inclusive of all sexual orientations, gender identities, and gender expressions.
PRIDE at JTI is a universal global community with more than 700 LGBTIQ+ colleagues and allies
coming together in celebration, unity and solidarity. Our PRIDE employee resource group raises
awareness, offers peer-to-peer support, and holds all of us accountable in all matters that affect the
LGBTIQ+ community.
In 2020, the Geneva headquaters of our tobacco business was one of the first companies in Frenchspeaking Switzerland to be awarded the Swiss LGBTI Label certification.
In Japan, we have made positive progress too, achieving the highest-ranking Gold status in the
PRIDE Index 2023 for the eighth consecutive year.

Race and ethnicity

Racism has never been tolerated at JT Group and there are measures in place to prevent andmitigate any form of discrimination. We promote an inclusive culture where everyone can bethemselves at work without risk of discrimination or harassment due to their race, religion, ethnic
background, origin, gender, age, disability, sexual orientation, marital status, or any other protectedcharacteristic.

New Ways of Working (N-WOW)
Enabling new ways of working (N-WOW) is a key value for our company, and increasingly necessary
in today’s world. N-WOW represents a movement to boost flexibility and retention, largely by
removing many of the barriers and management styles of the past and bringing them in line with amodern multigenerational workforce.
In July 2021 our tobacco business set out the N-WOW global guidance, which became a global
policy in July 2022 and adopted a hybrid way of working that focuses on outcomes rather than timespent in the workplace. Employees now have the flexibility to work up to 50% of their time per monthaway from the office, benefit from flexible core hours, and work up to 10 days a year abroad, among
other measures which redefine where and how work is done.
In Japan, we introduced full-time flexible working and no-limit remote working in February 2020. Our
approach towards new ways of working is still evolving.

A family-first approach
In 2020, we launched a new family leave policy for our tobacco business, which came into effect inJanuary 2021. The policy grants 20 weeks of fully paid leave to all employees, regardless of gender,
sexual orientation, age, or location, when an employee becomes a parent through giving birth,surrogacy, or adoption.
In Japan, we have provided paid parental leave, paid spouse maternity leave, part-time working
options for childcare, and financial support with childcare costs. In addition, we have childcare
facilities at two factories and a private space in an office for nursing mothers to express breast milk
for their babies and to change their diapers. In recognition of this, we have been certified as achildcare-supporting company by the Japanese Ministry of Health, Labour and Welfare.
In addition to childcare, in some countries with an aging population, we offer support for employees
who care for older people. For instance, in the U.K., we allow employees to take time off to look after
senior family members. Similarly, in Japan, employees can take days off when needed and havepart-time working options for nursing care. The Company offers financial support for professional
nursing care.
We will continue to work on expanding programs to foster employees' well-being.

Read more about our tobacco business initiatives on JT International sustainability website.

Related links
PeopleHuman

Health, safety,

Improving ourresources

and well-being of
employeessocial impact

Copyright© Japan Tobacco Inc. All rights reserved.

Health, safety, and well-being of
employees
We believe that our employees have the rightto be protected from work-related injuries
and illnesses. We are therefore responsible
for providing a safe working environment
and promoting a culture which prioritizes
health and safety.
We focus on creating safe workplaces,building safety competence, and developing
our safety culture. We align our health andsafety standards with international
requirements and always meet - and usually
exceed - legal requirements. Their scope
extends beyond our employees to covercontractors and visitors to our operations.

We have processes to identify and minimize risks, prevent incidents, respond to emergency
situations and continuously improve safety. We work to control occupational health hazards such as
exposure to noise, dust, hazardous chemicals, and ergonomic risks. We ensure that health andsafety standards are respected when designing work processes and machinery. We provide safe
working environment by setting up specific microclimates and monitoring them. This typically
includes air quality, temperature, humidity, and proper lighting, based on the tasks to be carried out.
We also promote health and safety awareness through dedicated training and communication
campaigns. In addition, we run programs to help protect the health of our employees while at work
and while traveling for business. We also have several initiatives to support their well-being.

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

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

Progress
Health and safety performance in our tobacco business
Recordable injury rate* declined 46.9% from 0.72 in 2015 to 0.38 in 2022.

2015 2016 2017 2018 2019 2020 2021 2022

Recordable injury rate
(per 200,000 working

Employees

hours)

0.7

0.6

0.6

0.5

0.4

0.2

0.3

0.3

2

4

7

0

9

9

3

8

* Recordable injury rate = recordable injuries/200,000 hours worked. Due to theconsolidation of global operations of the tobacco business since January 1, 2022, data ofcertain business sites are not included as it will take up to 18 months to integrate
occupational health and safety standards.

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

Our health and safety performance as a GroupRecordable injury rate* 46.9% from 0.72 in 2015 to 0.38 in 2022.

2015 2016 2017 2018 2019 2020 2021 2022

Employees

1

Number of fatalities

2

0

1

1

3

0

2

2

0

0

0

1

0

1
Contractors

1

(JTI
)

0.3

0.3

0.3

0.2

0.2

0.2

0.2

0.2

4

9

8

4

4

0

2

3

Supervised

0.1

0.3

0.2

0.1

0.0

0.1

0.1

workers

6

0

3

5

7

1

2

0.0

0.0

0.0

0.3

2.0

2.4

8

2

1

7

6

3

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

Occupational illness rate*1(per million working

Employees

00hours)

Other important KPIs

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

Number of vehicle accidents*3

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

78.

77.

74.

76.

79.

70.

71.

60.

9%

8%

4%

9%

5%

0%

8%

5%

66

85

71

64

65

42

112 115
2

1

4.8

3.8

0.2

0.2

0.1

0.1

0.2

0.0

4

7

3

1

6

9

0

8

We no longer report the number of lost-time incidents or the lost-time incident rate, as thisdata is now covered by the recordable injury rate and lost-time injury rate.
We regret that two employees died as a result of a work accident in 2022. We try to learn
from every accident and remain committed to achieving zero fatalities.
*1 Data scope: 2015: only JT. 2016 and 2017: JT and Japanese domestic Group
companies. From 2018: the entire JT Group. 2020: the increase from 0.01 in 2019 to
0.37 in 2020 is due to COVID-19 work related cases. Read more about our data scopes
and external verification.
*2 Data scope: 2020 only JTI*3 The number of vehicle accidents and the vehicle accident frequency rate in 2015 and2016 include damage to property, because the data is not available in our international
tobacco business. The data in 2015 covers only our international tobacco business.
From 2016, it covers JT and JTI.
Read more about the way we define, calculate, and consolidate data in the the Basis ofreporting.

Our Guiding Principles
The following guiding principles drive our Health and Safety Policy:■

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

■

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

■

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

■

We do the right thing
All our offices, sales operations and factories should always comply with all national and local
laws and regulations. However, where the local legislation and regulatory framework do notprovide adequate controls, we will adopt our standards to protect the health and safety of ouremployees, contractors and visitors.

Our commitment to health and safety
We have a publicly available Health & Safety Policy that establishes our overall intentions anddirection for maintaining health, safety, and well-being in the work environment. It provides aframework for action and for setting our Health and Safety objectives and targets.
In our international tobacco business, all locations must have their own Health and Safety Policy.
These Policies must:■

Reflect (Endorse) the Corporate Health and Safety Policy and Principles■

Include commitments to the prevention of injuries and illnesses, compliance with local legal andour corporate requirements, workers’ (and unions) consultation and participation on safety
matters, and continuous improvement■

Address the key health and safety risks to be managed and prioritize the action plans for
identified areas of improvement■

Be regularly (yearly) reviewed and revised as necessary, endorsed, and signed by senior
management, communicated to all staff and contractors, and made available to any otherinterested parties.

As well as delivering the corporate strategic programs addressing the highest health and safetyrelated business risks, every location should:■

record incidents and include local specificities and risks in their three-year plans■establish emergency response plans specific to each site*■

set and communicate local Health & Safety objectives and targets

To achieve their goals, local organizations must implement a health and safety management system
consistent with local legal and ISO 45001 international standards.
* These must include, but are not limited to, safety injuries, medical emergencies, fires, epidemics,
hazardous materials/chemicals incidents, floods, power outages, and for some locations, earthquakes
and typhoons or hurricanes

Reducing the risk of traffic accidents

The level of risk varies from location tolocation. Still, the highest risks across ourinternational tobacco business are posed bydriving vehicles, riding motorcycles, working
with machinery, and slips, trips, and falls.
We conduct risk assessments throughout
the supply chain to mitigate these risks andprevent injuries. This helps us identify
hazards, implement appropriate measures,and ensure that our approach helps protect
our employees. We also focus on raisingawareness among employees andthoroughly embedding our safety culture inour day-to-day work.

In 2019, we rolled out a new driver safety policy and implementation guidelines across ourorganization. Considering the growing number of female employees, the policy also includes
maternity protection for female drivers, e.g., special safety belts and additional rest time.
Focusing on driver behavior, the new guidelines require local offices to conduct a risk assessment to
identify high-risk drivers. They must also send periodic progress reports and action plans to
Corporate Health and Safety.
In 2020, we completed a global driver safety compliance assessment. The results showed that ourmarkets and leaf origins complied 80% on average with our global guidelines. In 2021, thisincreased to 85%. These assessments also allow us to identify best practices that are thenintegrated into a new "On the Road Safety Standard" as part of a continuous improvement process.
The new standard will be published Q2 2023.
In 2022, we trained 2,194 employees. Due to the pandemic, some driver risk assessments andtraining were conducted remotely, but we also organized ‘on the road’ training for high-risk drivers
where possible. We plan to train a further 4,300 drivers in 2023.
In the sales division of our Japanese operations, we have set ‘prevention of vehicle accidents during
sales activities’ as a priority issue within our Occupational Health and Safety Plan.

Ensuring consistency of standards around the worldAs part of our drive to expand the business geographically, we have made acquisitions in newmarkets. Most of the acquired businesses operate in developing countries, with a raft of societal
and economical challenges. We recognize this and feel responsible for improving the working
environment. We, therefore, introduce our policies firmly and immediately after each acquisition. We
visit the sites and support local managers to ensure that our policies are endorsed and embedded
across all locations of the company.
Health and safety issues in developing countries pose a serious risk to local communities, ouremployees, contractors, and our business continuity. For this reason, we take a systematic and riskbased approach to acquired businesses from the outset.
The Health and Safety team at our headquarter conducts a risk assessment for potential new
countries to check whether their standards meet ours. Following an acquisition, we support local
offices in identifying key risks, developing, and implementing 18-month action plans, and aligningpolicies with our standards.
Special attention is given to integrating Health and Safety criteria in business processes, such as the
procurement of vehicles and offices’ leasing, and to providing adequate Safety training to all
employees through our Health and Safety Academy.
To improve driver safety in Bangladesh, for example, where road conditions and driver behavior are
particularly challenging issues, we are moving all staff from motorbikes to cars.

Employee well-being in focus
Employee well-being is essential to us to develop and retain motivated employees and enable themto fulfill their potentials. We run a variety of well-being programs across the company, such as
ergonomic assessments and ensuring general occupational hygiene.
To design these programs, we gather well-being data from our local offices. In 2018, we expanded
our data scope by introducing new rules requiring all local offices to report their occupational healthcases to our headquarters. This will allow us to understand our global risks and develop a
consistent approach to occupational health, while strengthening our existing protection measures.
Local managers are responsible for investigating reported issues and identifying the causes. If theissues are attributed to the work or workplace, we take appropriate measures immediately toprotect employees’ well-being and prevent recurrences.
Since the onset of COVID-19, we have continued to offer employees one-to-one interviews withhealth staff via video call. We have also continued to run online programs focusing on sleep, diet,and exercise.

Supporting employees’ mental healthIn our Japanese operations, we recognize
the importance of mental health in theworkplace and are working to prevent
mental illness. We have set up an in-house
consultation desk, where employees canspeak to specialists and counselors. We
also provide telephone and interview
counseling through external specialized
institutions, as well as mental health training
for supervisors and self-care seminars. As aresult of these efforts, the incidence ofmental health problems remains at a low
level.
These programs have had a positive impact
on employee productivity and theabsenteeism rate in Japan, which has
recently been below 1%.
We are pleased to announce that JT wasnamed as a “White 500” company for theseventh year running in 2023. This award ispresented by Japan’s Ministry of Economy,
Trade, and Industry. It recognizes large
enterprises that are making outstanding
progress towards better well-being among
their employees.

In our international tobacco business, use a confidential employee assistance program and wellbeing solution. It provides information on mental, physical, social and financial well-being, as well as
24/7 access to phone consultations for work–life strategies and referrals to counselling.
We have also trained mental health first aiders across our business to offer support to employees
who wish to discuss any matter of concern.

Case study

Boosting employee well-being while supporting agood cause
In Japan, we have been participating in the TABLE FOR TWO program since 2010. In 2020 we set up
a company-wide walking challenge program. It’s a sponsored walk run in collaboration with theglobal non-profit organization TABLE FOR TWO, and using the health management portal site Pep
Up. This initiative has created a range of opportunities to promote health, contribute to society, andrevitalize our company organization.
We’ve run this event in each of the three years since its inception - and twice in 2022: in May andOctober. 6,009 of our employees nationwide took part. For every 8,000 steps one of our employees
completes in a day, we donate one meal to a developing country. In the 2022 financial year, weraised 1,858,860 yen for TABLE FOR TWO.
Feedback from employees on the walking challenge program■

79% reported that they were satisfied with this program.

■

71% said it helped them reduce stress, improve their fitness, and improve communication withothers.

■82% reported that they continue walking after this program.

Read more about our community investment initiatives.

Read more about Health and Safety case study on JT International sustainability website.

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

Read more

Related links
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Improving ourresources

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Copyright© Japan Tobacco Inc. All rights reserved.

Improving our social impact
For our Group to grow sustainably, it is vital for us to contribute to the sustainable development of
our society. Our Community Investment Policy

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

Our focus areas
Through long-term partnerships with various stakeholders, we are currently implementing 522
community programs that contribute to the development of inclusive and sustainable societies
across 65 countries. Our offices around the world carry out programs aligned with our JT Group
community investment policy and the following United Nations Sustainable Development Goals(SDGs): Reduced Inequalities (goal 10), Sustainable Cities and Communities (goal 11), Life on Land
(goal 15), and Partnerships for the Goals (goal 17).
Through our programs, we are focusing on three specific issues:
1. Reducing inequalities, e.g., helping underprivileged people gain access to food and education.
2. Improving community resilience in disaster-prone areas, e.g., providing access to clean water.
3. Protecting the environment, e.g., protecting and reinvigorating forests and green public spaces.
We also offer volunteering opportunities, enabling employees to engage with our communities,
develop new skills, and gain a sense of pride and satisfaction.
Global community investment functions help to implement the programs and ensure that they
comply with our strategy and guidelines.

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

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

Progress
In 2022, we invested about $51 million and volunteered 29,240 hours.
Since 2015, we have invested cumulatively 450 million U.S. dollars in our communities, andemployees have volunteered 193,521 hours on company time.

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

Citizenship. In 2022, we invested 51 million
U.S. dollars (10% charitable donations, 87%community investment, and 3% Commercial
Initiatives) in corporate community
investment in countries where we operate.
We encourage more accurate reporting andmeasurement to ensure all of our programs
deliver social impact according to our policy.

* B4SI is the global standard in measuring and managing corporate social impact.

Contributing to our communities

Our initiatives

Reducing inequalities
We’re committed to ensuring that the most vulnerable and excluded people can participate insociety and have their voices heard. That’s why we work with charities that support adult education,
people with disabilities, older people, and other disadvantaged members of society.
In many communities, the things that most of us take for granted - clean water, food, literacy,
education - are not readily attainable. We want to change that as best we can for the communities
we interact with around the world.
In 2022, we supported 388 programs related to reducing inequalities in 60 countries where we
operate. 9 countries reported impact data according to the Business for Societal Impact(B4SI)*Framework for programs related to “reducing inequalities”.

Case study

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

to bring the joy of creatingmusic to adults with disabilities. This uniqueproject, called OrchLab, is supported bypioneering assistive technology harnessedby Drake Music, experts in music,
technology, and disability.
OrchLab offers innovative digital
instruments, bespoke workshops, training
and events, and an interactive website
where participants can watch performances,take part in musical activities, andcommunicate with other members. The aimof the project is to enhance participants’
well-being through music-making that is truly
accessible to all.
OrchLab has worked intensively with 150
disabled adults since it began in 2017. In
2022, 22 people took part in an average of
26 hours of musical workshops, with 75% ofparticipants reporting positive impacts on
their skills, quality of life or well-being.
In 2022 we celebrated our second in-person
OrchLab Festival Day, bringing 67
participants together to try out new OrchLab
instruments and share the experience ofmaking music with others.

Improving community resilience
Our company has built expertise in disaster management over the years, due to the environmentallyvulnerable geolocation of Japan. In 2022 we supported a total of 83 programs in 39 countries,
benefiting 211,630 people worldwide.

In regions prone to disaster, the strength and sustainability of communities doesn’t rely solely on
their ability to respond to disasters in the short term - it also depends on their resilience.
Community resilience means being able to adapt positively after a disaster, bouncing back so thatthey can continue to develop and grow stronger over the long term.
In our tobacco business, we help communities achieve this largely through the work of the JTIFoundation and markets-driven programs. We engage closely with partners and charities that
respond to disasters, helping to revitalize communities so they can be more resilient in the future.
Read more about the JTI Foundation on JT International sustainability website.

Case study

Winds of change
Peace Winds Japan (PWJ) is aninternational non-governmental organization
dedicated to supporting people in distressand those threatened by conflict, poverty, orother turmoil. Although headquartered inJapan, PWJ operates around the world.
In Japan, we have partnered with PWJ since2016 as part of our disaster management
policy. In 2022, our collaboration was
extended for three more years to foster thedevelopment of search and rescue teams
and to support PWJ’s response to disasterstricken areas all around the world in theevent of a disaster.

Over the next three years we’re supporting initiatives in the following areas:■

Training and developing search and rescue (SAR) teams, including some that work with searchand-rescue dogs■

Building a collaborative structure with SAR partner organizations overseas in readiness for futuredisasters, through joint training■

Strengthening relationships with stakeholders in Japan by:■

Setting up support agreements with local governments and hospitals at risk of being affectedby disaster■

Building partnerships with supporting organizations and medical personnel■

Strengthening logistics capabilities and developing lifesaving equipment■

Organizing a logistics system and practical training for the setup of a multi-institutional field
hospital■

Coordinating emergency supply transportation and rapid support activities in response to local
information from PWJ in the event of a disaster

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

Protecting the environment
We try to reduce the environmental impact of our operations wherever we can, throughenvironmental programs that benefit both communities and our employees. In 2022, we supported
49 environmental programs in 33 countries where we have a business presence.
It is important that we measure the impact of our actions so that we can continually improve ourprograms. In 2022, 8 country reported impact data according to the Business for Societal Impact(B4SI) Framework for programs related to environmental protection.
In Japan, we are actively supporting the sustainable maintenance of nine forests. Employees havethe opportunity to volunteer in these forests and help to preserve these precious natural habitats. In
2022, 363 employees volunteered their time. Many of these employees reported that volunteering
had a significant impact on their behavior towards the environment and their job satisfaction.

Feedback from employees volunteering
at JT forest■

99% would like to change their
behavior and move towards a moresustainable use of natural resources■

97% reported that volunteering helped
them to gain skills that are useful intheir daily work

Other initiatives

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

In a spirit of solidarity between mature andemerging markets, the top ten markets in JTI
set up a fund to help new and developing
markets make communities more inclusive
and resilient. Not only does this create abetter balance of community investment
presence across the company, it also gives asignificant boost to communities in need ofhelp.
The JTI Global water, sanitation and hygiene(WASH) initiative focuses on providing
and/or improving access to safe water andsanitation in communities that struggle withthis issue. Since 2019, local teams havelaunched six projects as part of thisinitiative: one in Mexico, one in Ethiopia, andfour in Bangladesh. We are working withinternational and local organizations thatspecialize in WASH-related projects, and we
promote innovative concepts that offer thebest solutions for local communities andtheir needs.

Read more about the JTI Global WASH initiative on JT International sustainability website.

Volunteering opportunities
Volunteering brings mutual benefits for
employees, our business, and thecommunity. It also enables our teams to
make a positive impact in thecommunities where they live and work by
sharing their skills and knowledge.
We actively encourage our employees totake part in volunteering activities. We do
this by organizing programs and events,
or by providing the necessary resources(funds through corporate matching,employee time, in kind, or employee
donations).

In spite of Coronavirus restrictions, our volunteering activities continued throughout 2022, with
10,535 employees worldwide spending 29,240 hours of company time supporting community
programs. Where necessary, we adapted our approach to keep employees and local communities
safe.
Our many volunteering opportunities also support our HR initiative to build employees’ engagement
and skills. In 2022, we conducted surveys for employees who participated in Company volunteering
activities related to “reducing inequalities” (one of the three focus areas of our community
investment program). A total of 2,047 employees reported that these activities had helped them togain skills that were useful in their day jobs, as well as increased job satisfaction and a stronger
interest in volunteering.

Case study

Walking healthy to contribute to the society
TABLE FOR TWO (TFT) is a global
initiative to fight food imbalance througha unique meal-sharing program.
Established in Japan in 2007, it partners
with corporations, restaurants, schools
and other establishments to serve
healthy meals. In Japan, we have been
participating in the TFT program since2010. The Company donates theequivalent of one meal to a developing
country for every TFT menu mealpurchased by employees at the cafeteriain Tokyo.
In light of COVID-19, employees havebeen working from home, and the use of
the cafeteria has declined. However, wehave found a new way to continue
contributing to TFT, while encouraging
employees to interact with each otherand maintain their health at the sametime.

In this new program, for each employee who walks at least 8,000 steps in a day, the Company
donates one meal (20 yen). When we introduced this program in 2020, about 2,000 employees
participated. In 2022, a total of 6,009 employees participated the program in May and October andwe were able to donate 1,858,860 yen to TFT. As an added benefit, this program helped to build
team spirit and interaction between colleagues, while also improving employee awareness andattitudes toward social contribution.
Feedback from employees on the walking challenge program■

77% reported that volunteering changed in their behavior such as increased volunteering or
being more vocal advocate of the company.

■

64% reported that volunteering changed their personal impact such as self-confidence, job
satisfaction and pride in the company.

■

63% reported that volunteering improved their job-related competencies such ascommunications, teamwork or leadership skills.

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