Environment
Environmental issues are of increasingsocietal concern and have brought many
challenges to our society. For instance,
today, we are facing the consequences ofclimate change, such as melting ice caps,
rising sea levels, and changing weather
patterns. We all need to address theseissues and, as a global organization, we
recognize that we have a key role to play in
reducing our environmental impact.
As with most industries, the environment
has a direct impact on our business. We also
know that our operations impact theenvironment, through resource usage,
emissions, and waste generation, but westrive to minimize this impact.
By implementing sustainable businesspractices, we are able to conserve
resources, reduce waste, manage costs, andmeet the growing consumer demand formore sustainable products – bringing
benefits to both the environment and ourbusiness.
This approach is explained in the JT Group
Environment Policy.

Environmental

Environment and ourEnvironment and ourEnvironmental data /management

operations

products

External verification

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Our JT Group Environment Plan 2030 sets objectives and targets to address our key environmental
risks and opportunities across three focus areas: Energy and Emissions, Natural Resources, andWaste.
It considers not only our operations, but also our value chain. The plan contains longer-term
objectives for energy and emissions, along with quantified targets to achieve by 2030.
We will track performance and progress towards our objectives and targets, and we will revisit theplan periodically to ensure that it remains relevant to our business and stakeholders.

Energy and emissions
EnergyEmissions

Reduce our greenhouse gas emissions to
Objective

Transition our operations to net zerocarbon energy supply.

support the Paris Agreement on global
climate change with the aim to achieve
net zero carbon emissions from ouroperations.

We will reduce greenhouse gas emissions
from our own operations by 32%.

Targets

We will double the proportion of

We will reduce emissions associated withrenewable electricity that we use to 25%

our purchased goods and services byby 2030 and 100% by 2050.

23%. This will be achieved through a 40%
reduction from our direct leaf supply
chain and reductions in our non-tobacco
materials, such as packaging.

Natural resources
Water

Objective

Forestry

Support global water stewardship by

Ensure a sustainable wood supply for our

reducing our water withdrawal and by

product supply chains and further

encouraging water risk management incontribute to forest conservation andour supply chain.

rehabilitation.

To further focus our efforts onsustainable forest management, we have
We will reduce water withdrawal

assessed the drivers for deforestation

associated with our tobacco business by

and forest degradation in communities

15%.

where we source tobacco and developed
steadily implement action plans forTargets

To better understand water risk and use inimproved wood resource use, forest

our supply chain, by 2022, we willconservation, and forest rehabilitation.

implement a water risk management
process in our manufacturing supply

We will replace all wood from natural

chain.

forests used in the tobacco curing
process of our directly contracted
growers with renewable fuel sources.

Waste

WasteObjective

Further reduce the environmental impacts of waste associated with our processes andproducts.

We will reduce the environmental impact of our products and packaging through:Targets■

Design solutions■

Facilitating responsible collection and disposal■

Consumer awareness and education

More specifically, we will reduce our packaging (including plastic) and ensure that theremaining is 88% reusable or recyclable by 2025, rising to 100% by 2030. In total, recycledcontent will account for 20% of our tobacco business packaging by 2025.
We will reduce waste associated with our tobacco business by 20%.

Baseline year for all targets is 2015. Target year is 2030 unless stated otherwise. The overall plan is
to be reviewed every five years.
Read more about our progress toward quantified targets here.

Copyright© Japan Tobacco Inc. All rights reserved.

JT Group Environment Plan 2030*¹
TargetProgress in 2020

EnergyWe will double the proportion of renewable electricity that we use to 25% by2030 and 100% by 2050.

By the end of 2020, 21.7% of the electricity we used during the year camefrom renewable sources.

Emissions

We will reduce greenhouse gas emissions from our own operations by 32%,
by 2030.

Since 2015, we have reduced greenhouse gas emissions from our own
operations by 23.8%.

We will reduce emissions associated with our purchased goods and services by
23%, by 2030.

Since 2015, we have reduced greenhouse gas emissions associated with ourpurchased goods and services by 21.9%.

This will be achieved through a 40% reduction from our direct leaf supply chain andreductions in our non-tobacco materials, such as packaging, by 2030.

Since 2015, we have reduced greenhouse gas emissions from our direct leaf
supply chain by 6.0%.

Water

We will reduce water withdrawal associated with our tobacco business by 15%.

Since 2015, we have reduced water withdrawal associated with our tobacco
business by 14.9%.

Forestry

We will replace all wood from natural forests used in the tobacco curing process ofour directly contracted growers with renewable fuel sources.

Based on our 2020 sustainable tree planting activities in Tanzania, Zambia
and Brazil, we estimate that we are on a path to achieve consolidated 41%
renewable wood sourcing by 2027.*2

Waste

We will reduce our packaging (including plastic) and ensure that the remaining is
88% reusable or recyclable by 2025, rising to 100% by 2030. In total, recycled content
will account for 20% of our tobacco business packaging by 2025.

We will start reporting progress from 2022. Read more about our initiatives
and programs to improve the environmental impact of our products andpackaging on JT.com.

We will reduce waste associated with our tobacco business by 20%.

Since 2015, we have reduced waste associated with our tobacco businessby 13.8%.

*1 Baseline year for all targets is 2015. Target year is 2030 unless stated otherwise. The overall plan is to be reviewed every five years.
*2 Reduction from 59% in 2019 to 41% in 2020 can be attributed to lower tree planting and survival rates versus planned. Efforts and dedicated programs are in place to achieve 100% renewable wood supply by 2030.

Environmental management
In our more complex operations, we align our approach to environmental management with theinternationally recognized standards ISO 14001 and ISO 50001.* In our smaller and less complex
operations in Japan, we have implemented our own ‘JT Green System’, which promotes a simple
and consistent approach.
ISO 14001 encourages businesses to think more broadly about environmental issues – not only
those associated with their direct operations, but throughout their entire value chains. ISO 50001
provides a framework for our energy management system and helps us to continually improve ourenergy performance.
We are also working to streamline and better integrate our environmental and energy management
systems with other business considerations, such as quality, occupational health and safety, andbusiness continuity.
To objectively review our approach to environmental management and our overall performance, we
use external disclosures and ratings agencies, such as CDP and the Dow Jones Sustainability
Indices (DJSI).

ISO 14001 certification
We use ISO 14001 as the framework for our environmental management systems to manage
significant environmental aspects, mitigate risks, and optimize opportunities. We track the
proportion of our cigarette and tobacco-related factories that are certified to ISO 14001. Data for thecurrent and past certification of our factories can be found here.
*ISO 14001 and ISO 50001 are the internationally recognized standards for environmental
management systems and energy management systems, respectively. These standards do notprescribe absolute performance requirements. Rather, they provide us with a framework to help
build effective management systems that deliver continual improvement in environmental andenergy performance.

DJSI/Corporate Sustainability Assessment by S&P
GlobalClimate change is the single biggest and most urgent environmental challenge of our time. We
strongly believe that as a global company, we have a key role to play in tackling climate change.
To evaluate the sustainability practices of large companies, the Corporate Sustainability
Assessment (CSA) was created, which is carried out by S&P Global. We achieved a perfect score
this year for the ‘Environmental reporting’ and ‘Climate Strategy’ in the environmental dimension.
In 2020, for the first time, the CSA also included ‘Packaging’ as an assessment pillar applied toTobacco industry. We were recognized as an industry leader in this area. We are further
strengthening our commitment to packaging and product material sustainability, through packaging
reduction initiatives and the introduction of new targets relating to recyclability and recycled content
of our packaging.
Read more on Dow Jones Sustainability Indices and S&P Global CSA.

CDP A List and Supplier Engagement Leader
In 2020, we achieved a place on CDP's prestigious ‘A List’ for tackling climate change as well as
acting to protect water security for the second consecutive year. In addition, CDP recognized us asa global leader in engaging our supply chain in addressing climate change. This marks our second
recognition for CDP Supplier Engagement Leader following 2019.

We are delighted to be
included in the CDP’s'Climate A List' and'Water A List' for thesecond consecutive year.
This clearly reflects ourcontinued efforts to
reduce ourenvironmental footprintand our transparency indisclosing information.

Kazuhito Yamashita
Member of the board,
Chief Sustainability Officer,
Compliance and General Affairs(As of 31 December, 2021)

You can find submissions here: CDP Climate 2020

, CDP Water 2020.

A greener approach to procurement
Green procurement is critical to improving environmental performance. We appointed our first
Sustainability Procurement Manager within the Global Supply Chain (GSC) division of ourinternational tobacco business. The purpose of this role is to lead sustainability related initiatives,
mainly for packaging and other relevant categories, support sustainability activities to achieve the
JT Group Sustainability targets, and engage with suppliers on sustainability topics through close
collaboration.

In our Japanese operations, we have green procurement guidelines to ensure that the products andservices we purchase cause minimal environmental impact. These guidelines include lists of green
products and services, such as stationery, computers, and transportation services. We review andupdate the guidelines periodically, based on the availability of new products and services, andmonitor how many of the listed products and services we purchase.
Our green procurement approach is not only about purchasing goods and services. We also
encourage and work with our suppliers to improve their overall environmental management andperformance. Energy efficiency is one of the key criteria for the purchase of goods and services in
our Global Supply Chain division. In 2020, we initiated the Green Mobility Program in ourinternational tobacco business, to help decarbonize our fleet and purchase greener fleet vehicles.

Building environmental awareness and expertise
Across the Company, we strongly believe in the importance of raising awareness of environmental
issues among all employees. To do this, we run training and awareness campaigns every year, andwe regularly publish articles and updates on our Company intranet.
To improve the environmental performance of our operations, we have appointed personnel
responsible for environmental management at each of our business sites. These employees aretrained in environmental management systems and the relevant regulatory requirements. We alsooffer a more advanced course for staff who are responsible for internal auditing and reporting
environmental data.
In addition, our internal auditors go through a certification process to ensure that we apply aconsistent approach across the JT Group.
As a further step to raise awareness of environmental issues and our sustainability initiatives, wehold annual ‘Sustainability Days’. One of the focus areas is the environment: there are always many
activities and events at a global and local level, including information sessions on emissions,
resources, and waste.

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Environment and our operations
Energy,emissions, andclimate change

Naturalresources

Waste

Case studies

We strive to further reduce theenvironmental impact of our operations,focusing on the most significant
environmental risks and opportunities forour business and stakeholders. These
currently include climate change, thesustainable use of resources, andresponsible waste management.

Energy, emissions, and climate change
Climate change is the biggest environmental challenge facing society and our business. The effects
of climate change, such as global warming and changing weather patterns, could have serious
implications for our supply chain given our products are mainly agriculture-based and also for ourown operations.
We are committed to tackling this issue and we are reducing our greenhouse gas (GHG) emissions
to support the Paris Agreement on global climate change, with the longer-term aim of achieving net
zero carbon emissions from our operations.

Task Force on Climate-related Financial
Disclosures (TCFD)
The potential for financial impact associated with climate change is now well known, and concern is
growing about its mid to long-term impact on business operations and financial market stability. We
officially endorsed the recommendations of The Task Force on Climate-related Financial

Disclosures (TCFD) in December 2020.
A key aspect of the TCFD recommendations relates to the identification, assessment andmanagement of climate-related risk and their integration into overall risk management. With this inmind, in 2019, we began conducting climate scenario analysis. Our first round of analysis was
based on two scenarios: a global temperature increase of two and four degrees Celsius. To limit
within two degrees from industrial revolution era till the end of this century is the required target
from Paris agreement and four degrees are expected figure if GHG reduction efforts continued inpace of business as usual in the world.
Two main risk factors were identified: ‘potential cost increases due to the raising of carbon taxes bygovernments to further reduce GHG emissions’ and ‘the impact on leaf tobacco growing due tochanges in environmental conditions’. Our conclusion was that we could mitigate these risks bycontinuing to implement climate-related initiatives and programs across our value chain, so that ourbusiness operations would not be materially disrupted by financial impacts.
In 2020, we piloted country-based Climate Scenario Analysis in our international tobacco business.
The analysis is intended to provide more granular detail on climate-related risk for consideration inrisk management.
During the next stage, we will further develop our scenario analysis and improve our governancesystem on this topic. We will continue to use the results of the analysis to enhance engagementwith our stakeholders and corporate value. Based on the climate-related risks and opportunities
identified, we will continue to strengthen the resilience of our business strategy and optimize theway we disclose the information.

Greenhouse gas emissions from our own
operations
In our Group Environment Plan 2030, we have committed to reduce greenhouse gas (GHG)
emissions from our own operations by 32% (2030 versus 2015). We are on track to achieve thetarget. To date, this is through a combination of energy and emissions reduction initiatives,
increasing the proportion of the energy we use that comes from renewable sources and production
impacts. Going forward, the main programs to achieve the target relate to further improvements inenergy efficiency, renewable energy, and vehicle fuel type and efficiency.
As part of our efforts to meet our energy and emissions target, we will double the proportion ofrenewable electricity that we use to 25% by 2030, in support of our goal of reaching 100% by 2050.
In our direct operations, the renewable electricity target will be achieved through on-site generationand the sourcing of third-party renewable energy.

We are continuously working to identify renewable energy opportunities. Where possible, and where
it makes business sense, we have invested in renewable energy generation opportunities and willcontinue to invest in opportunities that increase our use of renewable resources. Renewable energy
opportunities are included in our business planning and in our feasibility study for the 2030 Science
Based Target. We also identify the options to purchase zero or low-carbon energy tariffs and green
energy certificates.

Progress toward quantitative target
We are well on the way to achieving our 2030 renewable electricity target. By the end of 2020, 43%of electricity used in our international tobacco business came from renewable sources (eitherpurchased or generated on-site). Overall, 22% of the electricity we used in 2020 came fromrenewable sources. Moving forward, we have plans in place which will further increase theproportion of renewable electricity we use.

Through our Energy Opportunities Scheme, our factories have identified over 220 no- or lowinvestment projects between 2015 and 2020. These avoid over 8,000 tons of GHG emissions andrepresent a cost saving of over 1.6 million U.S. dollars, with an average payback of three months.
Vehicle emissions are another important consideration for us, and we encourage all of our locations
to select alternative, more environmentally friendly fleet vehicles. Within our international tobacco

business, we have launched our Green Mobility Program, designed to reduce emissions associatedwith our fleet.

Greenhouse gas emissions in our supply chain
As part of the JT Group Environment Plan 2030, we are committed to reducing emissions
associated with our purchased goods and services by 23% between 2015 and 2030. We aim toachieve this through a 40% reduction in emissions from our direct leaf supply chain and reductions
in non-tobacco materials such as packaging.
We continue focusing our efforts on improving curing efficiency, through barn furnace upgrades andnew heat exchange designs. These not only optimize tobacco leaf quality, but also reduce wood fuelconsumption. In addition, we are addressing the production of wood resources required for tobacco
curing through dedicated agroforestry programs and tree-growing initiatives in Tanzania andZambia, for instance.
In Japan, we have a long-standing relationship with tobacco growers, which brings benefits to our
suppliers, our business and our planet. By working closely with leaf growers and a machinery
supplier, we developed an innovative new drying machine to improve fuel efficiency in the tobacco
curing process. This has had a positive effect on our environmental impact, as it helps to reducegreenhouse gas emissions and non-renewable energy use. It also helps growers to save costs andimprove quality, directly impacting our business and improving the environmental impact
associated with our tobacco value chain. By the end of 2020, our leaf growers were using a total of
777 drying machines across Japan. In future, we will expand the program by implementing a new
curing system to make the process even more sustainable.
Another initiative to reduce leaf-related emissions is further optimizing the use and management ofcrop inputs, particularly fertilizers. This includes customized fertilization programs that consider
alternative, less carbon-intensive product sourcing. We will also be working with suppliers to reduce
the amount of packaging associated with our non-tobacco materials.

Progress toward quantitative target
In 2020, GHG emissions related to Purchased Goods and Services decreased by 22%. We achieved
it through reduction in leaf related emissions as well as emissions associated with our non-tobacco
materials such as packaging. We expect that the impact of our initiatives to reduce leaf-related
emissions will be seen more from 2022 onwards, with curing barn upgrades and the higher
proportion of renewable wood used for curing in Zambia and Tanzania.

Science Based Targets (SBT)
We have set a long-term GHG emission
reduction target, which was approved as ascience based target (SBT) by the Science
Based Targets initiative (SBTi).
Read the press release(February 2019)

Natural resources

Water
Societal demand for water is increasing globally and water-related issues such as availability,
quality, flooding, drought, or regulatory changes can have a major impact on society and ourbusiness.

Our tobacco and food manufacturing activities all use water. However, our main operation, thetobacco business, is not water-intensive. The water that is required for tobacco crops comes
predominantly from rainfall.
As part of our approach to good water stewardship, we committed to carry out water risk
assessments at 100% of our factories. In 2020, we completed the first risk assessments at all of
our factories and we are now starting our program of re-assessments. Our water risk assessments
consider water availability and quality, changing legislation, natural disasters such as flood anddrought, and future water stress. From the assessments, we develop action plans to reduce risk andimprove overall water management and security.
In the JT Group Environment Plan 2030, we commit to supporting global water stewardship byreducing our water use and encouraging water risk management in our supply chain. We have set atarget to reduce our tobacco business-associated water withdrawal by 15% by 2030 vs 2015.
We plan to achieve the target by using less freshwater for factory site irrigation, reducing water use
in our processes, improving leak control, using more recycled water, and improving cleaning
practices.

Progress toward quantitative target
Based on the 2020 results, we are ahead of what was planned. Since 2015, we have reduced water
withdrawal associated with our tobacco business by almost 15%. We achieved this by implementing
water efficiency improvement programs and changing production volumes.

Water risk in our supply chain
Many of our raw materials require water in their production, and water is an important resource formany of our suppliers. To better understand water usage and water-related risk in our supply chain
across the Group, we plan to implement a water risk management process by 2022.
We have piloted an assessment approach, using our non-tobacco material supply chain. The next
steps will be to discuss our findings with our suppliers and look at how to roll out the approach toother parts of our supply chain.

Forestry
Ensuring a sustainable wood supply andfurther contributing to forest conservation
and rehabilitation are key objectives set out
in the JT Group Environment Plan 2030.

Our Agroforestry Programs address
sustainable forestry, wood use, andmanagement. In Malawi and Zambia, we
encourage growers to build ‘live barns’ by
planting trees that will form the main
structure of a Burley curing barn within three
years. This helps conserve vital wood
resources and reduces grower barn
maintenance effort and costs. In Brazil,
Tanzania, and Zambia, where we contract
growers that require wood as a fuel source
for curing, we promote best forestry
practices, validated through dedicatedforestry R&D, striving to achieve 100%
renewable wood supply by 2030.
To monitor the effective establishment ofwoodlots, estimate wood production at
small-scale farm level, as well as verify ourand growers’ forestry target progress, we areusing a remote-sensing, high-resolution
satellite imagery monitoring platform. Datais captured at field level by our Agronomy
Technicians via the AgroMobility mobile
application and then uploaded to themonitoring platform.
To further understand and quantify therelevance of wood resources for sustainabletobacco production, we have assessed thedrivers of deforestation and forest
degradation in communities where wesource tobacco in Tanzania and Zambia.
Quantitative and qualitative results fromthese surveys confirmed that our efforts toaddress the drivers of deforestation andforest degradation in our direct leaf supply
chain are in the right direction. We focus ourefforts on high-impact measures alignedwith our tobacco business sustainability
strategy such as improving tobacco
production, improving curing efficiency andproducing renewable wood resources.

Future outlook
Within the JT Group Environment Plan 2030, we have a target to replace all wood from naturalforests in the tobacco curing process of our directly contracted growers with renewable fuelsources by 2030. To achieve this, we are implementing measures to reduce wood consumption in
tobacco curing through barn improvements and upgrades in Zambia, Tanzania, and Brazil.
In 2020, we reduced our wood consumption rate by 9% vs. 2019. Through dedicated agroforestry
programs, based on basic and scientific forestry research, we are seeing improvements in tree
seedling production and woodlot establishment. This will ultimately lead to optimal tree growth andwood production, bringing benefits not only to sustainable tobacco production, but also to theenvironment and local communities.

Waste
From a societal and stakeholder perspective, waste, and particularly plastic waste, is of increasing
concern. From a business perspective, all waste has a direct cost (handling and disposal) and an
indirect cost (e.g. resource and processing costs).
Waste management is a key component of our Environment Plan 2030, and we have set targets for
waste reduction. Across the JT Group we apply a ‘Reduce, Reuse, Recycle’ approach. We have also
set targets for waste reduction as reducing waste helps to conserve resources, which in turn helps
to minimize our environmental impact and cut business costs.
By 2030, we will reduce waste associated with our tobacco business by 20% vs 2015. We will dothis by improving resource efficiency and rolling out innovative solutions across different sites.

Progress toward quantitative target
Based on the 2020 results, we are on track to achieve our waste reduction target, thanks to a
combination of waste reduction programs and the impact of production volume change. Since
2015, we have reduced waste associated with our tobacco business by 14%. Going forward, we areworking on further reducing secondary packaging and tobacco waste, along with other wastereduction initiatives such as reusing materials (e.g. tobacco packaging) and yield improvements.

Product and packaging waste
One of our objectives in the JT Group Environment Plan 2030 is to reduce the environmental
impacts of waste associated with our processes and products. Waste associated with ourprocesses is described above. Waste associated with our products includes packaging. To improvethe environmental credentials of our products and packaging, we follow a ‘3R’ approach (reduce,reuse, recycle). We also have dedicated teams across the business working on packaging andproduct-related initiatives.
Read more on Environment and our products.

Case studies

Sustainability is deeply embedded within our operations. We work hard to minimize ourenvironmental impact by focusing on energy efficiency, GHG emission reduction, water efficiency,
and waste reduction. Many programs and initiatives are already in place, both globally and locally.
These include everything from the way we source raw materials to the way we ship finishedproducts. Read more about our local and global activities:
In our Japanese business operations (Japanese website)
In our international tobacco businessCase study

Recognition for our greenhouse gas emissions
reduction
Our efforts to address climate change are recognized externally. In 2020 we were included in the ‘A
List’ by CDP Climate Change, in recognition of our leading position in managing climate related risks
and opportunities.
The JT Kansai factory (tobacco manufacturing) received two awards from Kyoto City and the Kyoto
prefecture government for its emission reduction initiatives. The factory is proactively tackling the
reduction of greenhouse gas (GHG) emissions by implementing projects such as high-efficiency
freezer installation and eco-friendly compressor use.
In December 2019, Nihon Syokuzai Kakou, a subsidiary of our processed food business, wasselected as a leading company and awarded by the government of Miyazaki prefecture for its effort
to reduce GHG emissions. The Japanese working philosophy known as Kaizen, which involves all
employees, is based on an ethos of continual improvement, and which we believe helps us toachieve strong ongoing results.
Our factory in Jordan was awarded the ‘Environmental Stewardship Award’ by the Ministry of theEnvironment in Jordan and the World Bank, as the first tobacco factory in the world to use direct
solar steam generation. A rooftop-mounted collector, steam storage, and a steam-driven absorption
chiller provide the site with energy and building heating and cooling. The system covers 85% of theplant’s annual steam consumption and helps reduce its CO2 emissions by 12% or 500 tons a year,
the equivalent of 500 return flights from Paris to New York. The factory’s ultimate ambition is to be
100% carbon neutral.
We continuously strive to further reduce our environmental impact by combining technology-driven
innovation with the Japanese philosophy of Kaizen, meaning ‘continuous improvement’.

Related links
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Environment and our products
We are constantly searching for ways to further reduce environmental impacts along our value
chain. We do this through improved product design and development, responsible procurement,
efficient delivery of our products and services, and by adopting innovative technologies and ways ofworking.
We will reduce the environmental impact of our products and packaging through :■Design solutions■

Facilitating responsible collection and disposal■

Consumer awareness and education

More specifically, we will reduce our packaging (including plastic) and ensure that the remaining is
88% reusable or recyclable by 2025, rising to 100% by 2030. In total, recycled content will accountfor 20% of our tobacco business packaging by 2025.
While reducing the environmental footprint of our products is the goal set forth in the JT Group
Environment Plan 2030 and necessity, it also helps us to meet consumer expectations and ensure
the long-term sustainability of our business.
For the goals set forth in the Tobacco Business Sustainability Strategy, Read about
Products and services (Environment).

Progress to date
Across the Group, we have been focusing on embedding sustainability in product development for
many years. To strengthen our commitment, we have created a Sustainability Program Team in ourinternational tobacco business to ensure that we reduce environmental impact of our products andservices.
Within our international tobacco business, we have colleagues dedicated to packaging strategy,
innovation, and sustainability. They focus on improving the sustainability of packaging throughreduction, simplification, or substitution, to improve re-use and recyclability. We are also working to
reduce the overall amount of fossil fuel-derived plastic that we use in our packaging. For example, inGermany, we have redesigned our Winston MYO 'make-your-own' (made by filling a filter tube with
cut tobacco) packaging to contain between 10% and 16% less plastic. This is a first step towards
improving the sustainability of our MYO offering.
The aim of all of these steps is to minimize the environmental impact of our products andpackaging. We will continue to address this challenge by focusing on design, consumer awarenessand education, and responsible waste collection and disposal.
These commitments run across our whole portfolio, and are changing the way we produce both
Ready-Made Cigarettes and our Reduced-Risk Products (Products with the potential to reduce therisks associated with smoking.).
We have already launched various initiatives, including the following.

Responsible recycling and disposal schemes for
Reduced-Risk Products
As alternatives to traditional combustible products, e-cigarettes (E-Vapor) and tobacco vapor
products (T-Vapor) are gaining popularity with consumers around the world. Although our industry ischanging, our commitment to consumer choice remains.
That’s why we offer Reduced-Risk Products in many markets. In contrast to traditional combustible
products, Reduced-Risk Products present new and specific challenges from an environmental
perspective, such as electronic waste.
We take our responsibility to protect the environment very seriously, and we want our recycling anddisposal schemes to meet the specific needs of each market. In 2019, we published internal
guidelines for Waste Management and Recycling across the Company. This guidance helps markets
to determine and implement appropriate initiatives.*E
To encourage consumers to safely recycle or dispose of our products, we offer convenient returnschemes in some of our markets. These are adapted to local needs, as the following best practice
examples show.

Case study

Ploom - Return scheme in Japan
In 2019, we collected around 400 kg of used Ploom devices, capsules, and cartridges by introducing
convenient collection boxes at around 300 shops selling Ploom in Tokyo.
This program was a significant extension of a 2017-2018 pilot scheme, in which we sent out
collection boxes to more than 250,000 people.
In 2020, this program was expanded to include the tobacco industry and we continue to be one ofthe participating companies, and it was successfully launched throughout Japan in 2021.

Key achievements in
2019■Collection boxes introduced in around
300 shops■

Around 400 kg of used devices, capsules,
and cartridges returnedCase study

Logic - Return scheme in Switzerland
In Switzerland, online customers can order a Logic box, made from FSC-certified paper, to collect
their used pods. They can then send these boxes to us free of charge for disposal.
We also set up ‘pod points’ in shops selling Logic products across Switzerland, giving consumers
the option to return their used products in person.
After collection, the items are disposed of properly according to Swiss Standards.

Key achievements:
March - December
2020■

1,992 individual boxes sent to consumers■

754 boxes returned

Reducing the environmental impact of Ready-MadeCigarettes
Litter from tobacco products is an issue that calls for collective action to educate adult consumers
to act responsibly. To approach this, we have rolled out various initiatives, including the following.

Case study‘Pick up and you will love your city’ in Japan
In Japan, we run the ‘Pick up and you will love your city’ campaign in collaboration with over 4,000
organizations, including local governments, NGOs, and volunteer groups, as well as local citizens.
Since the launch of this initiative in 2004, we have organized more than 2,000 litter-picking events,
involving 1.9 million participants.
We want to change participants’ mindsets to ‘I will not throw anything away’, through theirexperience of picking up litter.

Key achievements
since 2004■

+ 2,000 events■+ 1.9 million participants■+ 4,000 organizations

Case study

Tackling littering in Switzerland

Our partnership with IGSU/local interest group for a clean
environment

Packaging
Read about reducing the environmental impact of packaging.

The EU Single-Use Plastics Directive
Read about our approach.

Case study

Minimizing Winston packaging plastic waste inGermany
In Germany, our consumers can now purchase products that generate less plastic waste, thanks toa few big changes we made during 2020.
Our main focus was reducing the amount of plastic used in our Winston packaging. As a first step,
we made the boxes thinner and slightly smaller. Secondly, we introduced refill packs. Finally, weremoved the plastic handles from our boxes. Thanks to these steps, we significantly reduced ourplastic use in 2020 compared to 2019.

Key achievements in
2020■

78 tons of plastic saved from Winston
boxes

■

9 tons of plastic saved by removing
Winston box handles

Translation: 16% LESS PLASTICK? A GOOD
START #FORREAL

Case study

JTI UK – #IGiveAButt campaign
Research commissioned by JTI UK found that most smokers don’t want to litter, but often don’tknow what to do with their cigarette butts. The #IGiveAButt campaign was devised to remindsmokers to dispose of their litter responsibly in the nearest bin. Working alongside an awardwinning design agency we also created the #IGiveAButt Stub Tidy, which is compact, easy to clean,and sustainable – designed to get cigarette butts from A to B when there is no bin in sight.
The campaign was piloted in September 2020 with a series of outdoor advertisements acrossLondon, and nationally in conjunction with the Daily Mail and the Metro – where online readers wereable to request a free #IGiveAButt Stub Tidy.
A total of 14,616 #IGiveAButt Stub Tidies were given away as part of the pilot. We followed up with5,000 recipients of the #IGiveAButt Stub Tidy and found that, as a result of the campaign, 60.5% hadchanged their behavior and no longer drop their cigarette butts on the ground.

Key achievements in
2020■

60.5% of smokers less likely to drop theircigarette butts on the ground■

14,616 #IGiveAButt Stub Tidies
distributed as part of the UK pilot

Case study

Nordic Spirit - Sustainably made nicotine pouches
and traditional snus
Nordic Spirit meets the growing consumer demand for nicotine pouches, along with the expectationfor ever-more sustainable products.
Nordic Spirit is produced in Vargarda, Sweden, using 100% renewable energy sourced from externalvendors. 4% of this energy is generated by a hydroelectric power plant on a local river. Nordic Spirit
production also supports the local community – its rapid expansion has provided local job
opportunities both at the manufacturing facilities and for sub-contractors.
Nordic Spirit’s customer base includes many eco-conscious adults. The nicotine pouches offer
these consumers a flexible, discreet, and sustainable nicotine experience that fits easily into theirlifestyle.

Key achievements in
2020■

In Sweden, our entire Nordic Spirit
portfolio is produced using 100%
renewable energy.

Notes: This section is intended only to explain the business operations of the JT Group, not to promotesales of tobacco or vaping products or encourage smoking or vaping among consumers.

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

Read more

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Environmental data / Externalverification
Energy

GHG

Water

Waste

ISO 14001

Environment data verification statement
Independent Assurance Statement for the JT Group

Environmental data
Group-wide Scope 1 and 2 GHG data, some Scope 3 GHG data, energy, proportion of renewableelectricity, water withdrawal, water discharge and waste-related data have been externally assured.
The calculation methodology and scope are outlined in our Basis of Reporting.

Energy
Energy Consumption (Terajoules)

2015

2016

2017

2018

2019

2020

6,162

6,407

6,221

5,998

6,062

5,637

3,431

3,040

2,948

3,047

2,872

2,580

134

103

78

78

70

68

710

907

1,070

1,135

1,181

1,475

103

236

385

424

467

714

607

671

685

710

714

762

Total energy sold

-105

-107

-112

-114

-133

-116

Total

10,332

10,351

10,205

10,143

10,051

9,643

Fossil fuels purchased andconsumed

Electricity (non-renewable)purchased

Steam / heating / cooling andother energy (non-renewable)purchased

Total renewable energy
purchased or generated- Total renewable electricity
purchased or generated- Total renewable energy
purchased or generated excluding
electricity

Energy Consumption Breakdown

2015

2016

2017

2018

2019

2020

Non-renewable fuel consumed

6,141

6,361

6,153

5,938

6,050

5,637

Renewable fuel consumed

606

669

684

709

713

761

3,688

3,426

3,474

3,584

3,400

3,345

2

2

5

26

21

17

-105

-107

-112

-114

-133

-116

Total

10,332

10,351

10,205

10,143

10,051

9,643

Proportion of renewable electricity (%)

2015

2016

2017

2018

2019

2020

Total

3%

7%

12%

12%

14%

22%

(Terajoules)

Electricity, heating, cooling andsteam purchased for
consumption

Self-generated electricity, heating,cooling and steam

Electricity, heating, cooling andsteam soldGHG
GHG emissions

2015

2016

2017

2018

2019

2020

CO2

364

368

358

350

350

321

HFCs

34

37

32

28

24

23

Total (Scope 1)

397

405

390

378

373

344

Scope 2

494

434

396

401

383

335

Total (Scope 1 + 2)

892

839

786

778

756

679

Purchased goods and services

7,204

6,798

6,421

6,865

7,110

5,626

- Purchased tobacco

4,880

4,638

4,219

4,725

5,537

4,105

Direct leaf supply

1,381

1,297

1,522

1,378

1,567

1,299

Third-party tobacco materials

3,498

3,341

2,697

3,347

3,970

2,806

- Others

2,325

2,159

2,202

2,140

1,573

1,521

Capital goods

391

358

422

481

393

322

132

123

129

122

120

118

319

346

360

328

337

317

27

25

28

29

27

22

(1,000 tons CO2e)

Fuel-and-energy-related activities(not included in Scope 1 or 2)

Upstream transportation anddistribution

Waste generated in operations

GHG emissions

2015

2016

2017

2018

2019

2020

Business travel

265

264

242

232

223

65

Employee commuting

62

61

64

58

54

50

Upstream leased assets

0

0

1

1

1

0

309

262

293

321

295

310

Processing of sold products

2

2

2

1

1

1

Use of sold products

32

33

43

43

42

48

89

75

105

106

108

90

Downstream leased assets

1

1

1

1

1

1

Franchises

2

1

1

2

6

5

Total (Scope 3)

8,835

8,347

8,112

8,589

8,718

6,977

(1,000 tons CO2e)

Downstream transportation anddistribution

End of life treatment of soldproducts

Water
Water withdrawal by source (1,000 m³)

2015

2016

2017

2018

2019

2020

Fresh surface water

1,398

1,575

1,466

1,570

1,631

1,712

Brackish surface water/seawater

0

0

0

0

0

0

Rainwater

46

47

53

47

41

31

Groundwater

5,790

5,805

5,623

5,735

5,731

5,688

Produced/process water

0

0

0

0

0

0

Municipal supply

3,629

3,374

3,382

3,359

3,030

2,871

0

0

0

0

0

0

10,864

10,802

10,523

10,712

10,432

10,302

Wastewater from anotherorganization

Total

Water discharge by destination (1,000

2015

2016

2017

2018

2019

2020

Fresh surface water

2,418

2,403

2,649

2,805

2,863

2,864

Brackish surface water/seawater

0

0

3

18

30

16

Groundwater

1

2

1

0

1

13

3,393

3,161

3,064

3,085

2,856

2,885

0

0

0

0

0

0

5,813

5,566

5,717

5,908

5,749

5,777

2015

2016

2017

2018

2019

2020

100

97

97

96

98

95

Incinerated with heat recovery

12

11

10

10

12

10

Incinerated without heat recovery

7

6

6

7

5

5

Landfilled

21

21

21

21

17

16

Total

140

135

133

134

133

126

m³)

Municipal/industrial treatment
plant

Wastewater from anotherorganization

Total

Waste
Waste generation(1,000 tons)

Recycled including waste
compostedISO 14001 certified (Scope: Cigarette and tobacco-related factories {includingGroup factories})
2015

2016

2017

2018

2019

2020

Total factories

41

40

43

43

46

47

Certified factories

34

32

33

34

36

36

Certified (%)

83%

80%

77%

79%

78%

77%

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