‘Dreams never get old’ initiative,
2011 ‘Grand Rider’ participants

ISO 26000: Community Involvement & Development

Contributingto communities
The JT Group nurtures its relationship with localcommunities, providing a unique mix of programs
that contribute to their development.

38 | JT Group - CSR Report 2013 | Community Involvement & Development

Helping local people with compassionate aid programs
The JT Group helps to address social needs
in local communities, often in relation
to the elderly and those at an economic
disadvantage.
Activities aim to improve people’s lives,
alleviate suffering and complement theefforts of local systems providing services
to the underprivileged. This often includes
partnering with charities, non-governmentalorganizations (NGOs) and non-profitorganizations (NPOs).

96-year-old Mary taking part in a Leonard Cheshire
Disability performance with the London PhilharmonicOrchestra

Residents at a Leonard Cheshire Disability residential
home enjoying an art workshop with the Royal Academyof Arts

The JT Group’sbusinesses areintegral to thecommunities inwhich they operate:
primarily as anemployer, but also as
a partner that helps
to better the lives oflocal people facing
social challenges.

Community Involvement & Development | JT Group - CSR Report 2013 | 39

Bringing sustenance to a city in need of help
In 2011, the Great East Japan Earthquake and resulting tsunami
caused extensive damage to Rikuzentakata located in the Iwate
prefecture of Tohoku. The JT Group, as part of its many efforts in
responding to this national disaster, created an initiative focused
specifically on the city and people of Rikuzentakata. The intention ofthe project was to support reconstruction efforts over the long-term.

A Rikuzentakata grower planting seedlings of ‘Takata no yume’

Employees assisting the Rikuzentakata growers

The Group’s Plant Innovation Center (PIC) donated a previously
unreleased variety of rice, ‘Iwata 13’, including its ownership rights,to Rikuzentakata. The city was given this to grow, brand and sell
as its own, with all future revenue going to the rice growers in thecity. Masakazu Kashihara, a researcher at PIC, helped develop thisparticular strain of rice. He commented: “Iwata13 has been cultivatedon a trial basis for four years in the Tohoku region and is a variety ofrice that is well suited for the climate of the Iwate district. The riceitself, when cooked, has a glossy appearance, with a sweet taste andsticky texture. It is also robust and resistant to lodging1 and to disease,which is an additional benefit.” As part of its contribution, PIC provided
assistance in helping the city grow the rice. It also helped on anadministrative level, with the application and preparation of documents
like the brand certificate of authenticity and materials relating tovarietal characteristics.
A competition was held to name the new brand of rice, which wasfinally called ‘Takata no yume’, which means ‘Dream of Takata’. Therice was nationally launched at the Agriculture Frontier 2012 exhibitionin December. In 2012, 600 kilos of ‘Takata no yume’ were harvested,with the city’s 11 rice growers planting 10 hectares in 2013. It is hopedthat this will continue to rise to tens of thousands of kilos in the comingyears.
Lodging: The collapse of top heavy plants, particularly grain crops.

140 | JT Group - CSR Report 2013 | Community Involvement & Development“Firstly, the rice itself isdelicious. I believe it will give us
the strength we all need to boost
the rebuilding of the city. We, thecitizens of Rikuzentakata, will
nurture this dream. I would liketo thank the JT Group for giving
us this great opportunity. Our
gratitude will be best shown when
we make a success of the brand.”Futoshi Toba, Mayor, City of Rikuzentakata

Restoring forests in Japan

Picking up on the issueof litter in Japanfor forest conservation. Areas where thecycle is halted vary from forest to forest, as
do the functions that forests play, regionally.
An improvement plan is developed according
to the characteristics of each individualforest, with the focus on restoration andmaintenance. Ultimately, support programs
are designed to reflect residents’ needs andhopes for their forest.

JT employee engaged in conservation activities

JT Forest is an initiative that was firstestablished in 2005.
Today it includes a program of activities
in nine forests throughout Japan. This
involvement provides necessary support forforest developers, and engages with local
communities, authorities and experts.
This includes local forestry cooperatives thathave an extensive knowledge of the forests,
and the woods grown, providing invaluable
insights into local eco-systems.
Activities are designed to restore the forest
cycle and revitalize neglected forests. As well
as replanting trees, conservation measures
include forest thinning, pruning and mowing,
while constructing the strip roads essential

JT also supports local communities byactively promoting the timber from the forest
thinning activities. The timber had previously
been underutilized as an economic resource
and is now expected to contribute to thereinvigoration of these rural communities.
As part of its on-going program, JT Forest
holds Forestry Program Days on two
occasions each year. These events involve
working on the forest itself, in preservation
activities that bring together JT employees,
local residents, students and government
officials.
In addition to aiding conservation, the aim isto help build relationships between JT andthe local community, to educate employeeson environmental matters and to hand down
the responsibility for the local environment toyounger generations.

Hironori Sogawa, community event organizer“As the organizer of an event that
attracts thousands of people, I reallyappreciate the fact that the JT Groupsupports the event through tackling
the litter. Getting people to help clean
up and raise awareness of litter in thecity is a meaningful activity.”
Since 2004, the Company has run acommunity clean-up campaign called‘Pick Up Litter and You Will Love Your
City’ in Japan. The overall objective
has been to raise awareness of theproblem of public littering, throughtrash collection activities. The initiative
is carried out in collaboration with local
governments, companies and volunteer
groups, as well as the organizers andparticipants of community events.
The ‘Pick Up Litter and You Will Love
Your City’ campaign has held over
1,400 events, bringing the number ofparticipating groups and organizations
to 2,950. As of March 2013, the total
number of participating individuals
has reached almost 1.4 million;
approximately 700 tons of litter has
been collected over the course of theprogram.
The JT Group is committed tocontinuing its efforts to tackle theproblem of litter in communities and islooking to encourage more people tojoin and cooperate in this campaign inthe future.

Community Involvement & Development | JT Group - CSR Report 2013 | 41

Volunteering help in Spain
In recent times the economic conditions inSpain have made it difficult for the more
vulnerable members of society to maintaina healthy, dignified life. With unemployment
levels up to 27% in Spain, the number ofpeople dependent on soup kitchens, often
run by charities and NGOs, has increased
dramatically.

The Madrid Banco de Alimentos Foundation
is a non-profit charity dedicated to improving
the quality of life of people with limited
resources facing poverty. Its mission is tocollect and distribute food among more than
400 officially registered NGOs in the Madridcommunity.

In 2012, JTI Spain contributed to the work ofthe Foundation, helping it build a new foodbank facility in the southern part of Madrid,creating a new point for the collection anddistribution of food. This new bank will
dramatically increase the number of soup
kitchens and service centers that receive fooddaily.

“JTI made possible a projectthat was ready on paper but
sitting in a drawer. The new
distribution center is now
a reality.”
Francisco Garcia,
Vice President, Banco de Alimentos Foundation

On May 5 2012, JTI employees participatedin ‘Operation Kilo’, an initiative run by
the Foundation. To accomplish this, 25
employees stood at the entrance to amajor supermarket in Madrid, engaging
with shoppers as they exited the store,asking them to donate at least a kilo of theirgroceries to the Foundation. The results
were outstanding, with 5,400 kilos of foodcollected by employees on behalf of theorganization.
Two weeks later, another 10 employee
volunteers visited the Foundation to assist in
the process of sorting and storing the food, inorder to facilitate the distribution among thesoup kitchens and social service centers.

Employees participating in ‘Operation Kilo’

42 | JT42 Group| JT Group- CSR- CSR
ReportReport20132013| Community Involvement & Development

Caring for the community
Aiding senior citizens in Madrid
Amigos de los Mayores is a social foundation
dedicated to improving the quality of life ofsenior citizens with limited resources, whoface a situation of isolation.
With the help of qualified volunteers, theFoundation aims to create social situations
that bring these lonely, elderly people
together for cultural and entertainment
excursions.

JTI Spain worked with Amigos de losMayores to organize a guided tour for seniorcitizens to the Prado Museum. Employee
volunteers visited the homes of the elderly tocollect and accompany them to the venue.
Following the tour, guests enjoyedrefreshments at the museum cafeteria andthen were returned to their homes.

Supporting the ‘Dreams never get old’ initiative
partner of the Hondao Senior Citizens Welfare
Foundation, whose mission is to help seniorcitizens make their dreams come true throughthe ‘Dreams never get old’ program. The aim
is to meet the physical and psychologicalneeds of the elderly by facilitating events thatare both fun and rewarding.

Aging populations are a global concern.
Taiwan is among the most rapidly aging
societies, with elderly people accounting for
10% of the population. JTI in Taiwan is a key

Building a future for the under-privileged and elderlyin Malaysia

In 2011 alone, more than 100 employees
from the Taiwan office helped the Foundation
fulfill 10 different dreams for 462 seniorcitizens over 75 years of age. Activities
included becoming a ‘soldier for a day,’creating a life journal, and participating as a‘Grand Rider’ in a convoy of motorcycles.

JTI Malaysia partners with a number oforganizations that assist those needing
economic aid and help senior citizens
maintain an overall quality of life.
The ‘Support To The Elderly’ program began
in 2008 as a long-term initiative. Actions todate include providing resources for elderly
people to refurbish their homes; employees in
Malaysia have volunteered their time toward
this endeavor.
Additionally, in the Tumpat and Pasir Putih
districts in the state of Kelantan, the local
office collaborated with a range of partners
to build new homes for the elderly. JTI
also helped rebuild a Community Center inCheras, Kuala Lumpur, in partnership with theTaman Cuepacs Residents Association. The
Center has been operational since June 2011
and is now an important place for residents
to meet and interact with their peers.

“Most of us have been in the elderly
home for more than 20 years. Our
old wooden house used to be flooded
every time the monsoon season started.
Now, with support, we have a newhome equipped with proper furniture,electricity and a clean water supply.”
Residents of Rumah Sejahtera Kampung Jalan
Besar, Tumpat, Kelantan

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Report 20132013 || 4343Community Involvement & Development | Japan Tobacco