JT Group Sustainability Report FY2015 - GRI G4 Content Index
The JT Group Sustainability Report FY2015 contains Standard Disclosures from the Global
Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines and is in accordance with the
GRI G4 ‘Core’ Guidelines. The identification of the material Aspects is based on a materiality
assessment for the entire JT Group.

The GRI G4 Content Index below includes the location, disclosure status, and additional
information around the General Standard Disclosures and the Specific Standard Disclosures.
Further information on the calculation methodology and scoping is available in a separate
Basis of Reporting document for the areas of human resources, health and safety, andenvironment. Some of the data within the report has been externally verified.

GENERAL STANDARD DISCLOSURES#

GENERAL STANDARD DISCLOSURESLOCATION (PAGES)OMISSIONS AND ADDITIONAL INFORMATIONSTRATEGY AND ANALYSIS
G4-1

Statement from the most senior decision-maker of theorganization

CEO statement (pages 4-5)
Q&A with Senior Vice President forCSR (pages 6-7)

ORGANIZATIONAL PROFILE
G4-3

Name of the organization

Corporate profile (pages 8-9)

G4-4

Primary brands, products, and services

Corporate profile (pages 8-9)

G4-5

Location of the organization’s headquarters

Corporate profile (pages 8-9)

G4-6

Number of countries where the organization operates, andnames of countries where the organization has significant
operations

Corporate profile (pages 8-9)G4-7Nature of ownership and legal form

Corporate profile (pages 8-9)G4-8Markets served

Corporate profile (pages 8-9)

G4-9

Scale of the organization

Corporate profile (pages 8-9)

Detailed information is presented in the JT Annual Report FY2015:

Our Businesses (page 56)

www.jt.com/investors/results/annual_report/index.html

Detailed information is presented in the JT Annual Report FY2015:
www.jt.com/investors/results/annual_report/index.html

The following financial information can be found in the JT Annual Report FY2015:- Net sales (page 4)- Total capitalization broken down in terms of debt and equity (page 5)- Total assets (page 5)- Beneficial ownership (including identity and percentage of ownership of largest shareholders) (page 69)

JT GROUP SUSTAINABILITY REPORT FY2015 – GRI G4 CONTENT INDEX

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#GENERAL STANDARD DISCLOSURESLOCATION (PAGES)

G4-10

Workforce information

Corporate profile (pages 8-9)
Basis of ReportingOMISSIONS AND ADDITIONAL INFORMATION
Employees by type of contract and gender as of the end of 2015
Type of contract

Male

Female

Total

Permanent (full and part-time)

28,0849,534

37,618

Temporary full-time

1,975

1,769

3,744

Temporary part-time (*C)

N/A

N/A

5,881

Temporary part-time (*E)

7

15

22

Supervised workers (*C)

N/A

N/A

1,375

Employees by region and gender as of the end of 2015
RegionMale

Female

Total

Japan

12,575

3,043

15,618South and West Europe

1,805

1,118

2,923

North and Central Europe

3,751

1,765

5,516

CIS+*

5,630

2,280

7,910

Other

6,298

3,097

9,395

*Commonwealth of Independent States

G4-11

Percentage of total employees covered by collective
bargaining agreements

Our people - Being a responsible
employer (page 33)

G4-12

Organization’s supply chain

Our value chains (pages 10-11)

Due to law requirements in certain countries, we cannot know whether employees are unionized, and thus cannot provide theinformation for employees in our international tobacco business.

Our tobacco business – Supply
chain management (page 59)
In focus: emerging products(page 70)
Our pharmaceutical business Pharmaceutical business value
chain (page 75)
Our processed food business Processed food business value
chain (page 79)

JT GROUP SUSTAINABILITY REPORT FY2015 – GRI G4 CONTENT INDEX

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#GENERAL STANDARD DISCLOSURESLOCATION (PAGES)

G4-13

Significant changes during the reporting period regarding
the organization’s size, structure, ownership, or its supply
chain

About this report (page 82)

G4-14

Report whether and how the precautionary approach or
principle is addressed by the organization

JT Group Environment Charter on
jt.com:www.jt.com/csr/environ/management/index.html

G4-15

List externally developed economic, environmental, andsocial charters, principles, or other initiatives to which theorganization subscribes or which it endorses

Our sustainability journey Collaborations, memberships, andendorsements (pages 18-19)

G4-16

List memberships in associations and national orinternational advocacy organizations

Our sustainability journey Collaborations, memberships, andendorsements (pages 18-19)

OMISSIONS AND ADDITIONAL INFORMATION

Our people - Being a responsible
employer (page 33)
The JT Group Environment Charter reflects how we have addressed the precautionary principle.

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
G4-17

a. List all entities included in the organization’s
consolidated financial statements or equivalent
documents.

About this report (page 82)

b. Report whether any entity included in the organization’s
consolidated financial statements or equivalent documents
is not covered by the report

G4-18

a. Explain the process for defining the report content andthe Aspect Boundaries

Our sustainability journey (pages
14-15)

b. Explain how the organization has implemented theReporting Principles for defining report content

Our material issues (page 21)

G4-19

Material Aspects identified in the process for defining
report content

Our material issues (page 21)

G4-20

For each material Aspect, report the Aspect Boundary
within the organization

Our material issues (page 21)

G4-21

For each material Aspect, report the Aspect Boundary
outside the organization

Our material issues (page 21)

G4-22

Effect of any restatements of information provided inprevious reports, and the reasons for such restatements

About this report (page 82)

G4-23

Significant changes from previous reporting periods in the
Scope and Aspect Boundaries

Our material issues (page 21)

Identification of GRI Aspects is based on the materiality assessment conducted for the entire JT Group.

Basis of Reporting

About this report (page 82)

JT GROUP SUSTAINABILITY REPORT FY2015 – GRI G4 CONTENT INDEX

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#GENERAL STANDARD DISCLOSURESLOCATION (PAGES)OMISSIONS AND ADDITIONAL INFORMATIONSTAKEHOLDER ENGAGEMENT
G4-24

List of stakeholder groups engaged by the organization

Our sustainability journey Stakeholder engagement(pages 16-17)

G4-25

Basis for identification and selection of stakeholders withwhom to engage

Our sustainability journey Stakeholder engagement(pages 16-17)

G4-26

Organization’s approach to stakeholder engagement

Our sustainability journey Stakeholder engagement(pages 16-17)

G4-27

Key topics and concerns that have been raised throughstakeholder engagement

Our sustainability journey Stakeholder engagement(pages 16-17)

REPORT PROFILE
G4-28

Reporting period for information provided

About this report (page 82)

G4-29

Date of most recent previous report

About this report (page 82)

G4-30

Reporting cycle

About this report (page 82)

G4-31

Contact point for questions regarding the report or its
contents

About this report (page 82)

G4-32

GRI Content Index

GRI G4 Content Index

G4-33

Organization’s policy and current practice with regard toseeking external assurance for the report

About this report (page 82)

GOVERNANCE
G4-34

Governance structure of the organization, including
committees of the highest governance body

Our sustainability journey –Sustainability governance (page 20)
Our way of doing business(page 22)ETHICS AND INTEGRITY
G4-56

Organization’s values, principles, standards, and norms of
behavior such as codes of conduct and codes of ethics

Our way of doing business(page 22)

JT GROUP SUSTAINABILITY REPORT FY2015 – GRI G4 CONTENT INDEX

4SPECIFIC STANDARD DISCLOSURES
MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)DMA

Our way of doing business - Our tax practices(page 26)OMISSIONS AND ADDITIONAL INFORMATIONECONOMICECONOMICPERFORMANCEJT Annual Report FY2015
G4-EC1 - Direct economic value generated
and distributed

Our way of doing business - Our tax practices(page 26)

Direct economic value generated and distributed

Million Yen

About this report (page 82)

2015

JT Annual Report FY2015 (pages 4, 5, and120)

2,252,884

Revenue1,2Total employee benefits and wages2

407,122

Current income taxes2

150,774

Tobacco excise taxes2

4,772,628

Dividends

187,574

Community investment
1
2

8,967

Excluding tobacco excise taxes and revenue from agent transactions
Based on continuing operations

JT GROUP SUSTAINABILITY REPORT FY2015 – GRI G4 CONTENT INDEX

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MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)

MARKETPRESENCE

DMA

Our people - Local labor practices (page 33)

G4-EC5 - Ratios of standard entry-level
wage by gender compared to local
minimum wage at significant locations ofoperation

GRI G4 Content Index
Basis of ReportingOMISSIONS AND ADDITIONAL INFORMATION

Significant locations
JT Tokyo HQ

JTI Geneva HQ*

JTI Moscow

JTI TrierRatio of standard entry-level wage
to local minimum wage
Male

171:100

Female171:100

Male

N/A

Female

N/A

Male

213:100

Female213:100

Male

145:100

Female145:100* We cannot calculate the ratio for our JTI Geneva HQ as there is no official minimum wage.

INDIRECTECONOMICIMPACTS

G4-EC6 - Proportion of senior
management hired from the local
community at significant locations ofoperation

GRI G4 Content Index

DMA

Our tobacco business - Social andenvironmental leadership(page 62)

Basis for Reporting

Significant location

Percentage of senior management hiredfrom the local community

JTI Moscow

69%

Respecting Human Rights - Improving our
supply chain (page 52)
Our tobacco business – Illegal trade(pages 68-69)
Our contributions to society (page 46)
G4-EC7 - Development and impact of
infrastructure investments and services
supported

Respecting Human Rights - Improving our
supply chain (page 52)

As part of our Grower Support Programs (GSP) and ARISE activities in 2015 we invested more than US$8 million in
infrastructure-related projects in Brazil, Malawi, Serbia, Tanzania, and Zambia.

GRI G4 Content Index
G4-EC8 - Significant indirect economic
impacts, including the extent of impacts

Our tobacco business – Social andenvironmental leadership(page 62)
Respecting Human Rights - Improving our
supply chain (page 52)
Our tobacco business – Illegal trade (pages
68-69)
Our contributions to society (page 46)

JT GROUP SUSTAINABILITY REPORT FY2015 – GRI G4 CONTENT INDEX

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MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)PROCUREMENT
PRACTICES

DMA

Our way of doing business - Procurement
practices (page 26)

OMISSIONS AND ADDITIONAL INFORMATION

Our processed food business (page 78)

G4-EC9 - Proportion of spending on
local suppliers at significant locations ofoperation

GRI G4 Content Index

We defined local as the country of operations.
Significant location is defined as any location with more than 5% of global spend.
Significant locations

Supplier type

% of local spend in 2015

Japan

Tobacco leaf and non-tobacco
material suppliers

JTI Geneva HQ

Other products and services
suppliers

34%

Germany

Non-tobacco materials andother products and services
suppliers

74%

RussiaNon-tobacco materials andother products and services
suppliers

91%

PolandNon-tobacco materials andother products and services
suppliers

86%

U.K.

Non-tobacco materials andother products and services
suppliers

88%

Approximately 60%

Outside of Japan, our central leaf function purchases tobacco from directly contracted farmers and merchants, which is thensupplied to our cigarettes and tobacco-related factories. About 50% of our spend is local - from directly contracted farmers and the rest we buy from merchants.
The percentage of local spend for suppliers of bulk drug substances to our pharmaceutical business is approximately 1%.
The percentage of local spend for suppliers of TableMark is 100%.

G4-FP1 - Percentage of purchased volume
from suppliers compliant with company’ssourcing policy

Our way of doing business - Procurement
practices (page 26)

100% of purchased volume from suppliers is compliant with the sourcing policy of the JT Group processed food business, via
self-declaration of suppliers.

Our processed food business (page 78)

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MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)OMISSIONS AND ADDITIONAL INFORMATIONENVIRONMENTAL
ENERGYDMA

Our planet – Environmental management(page 39)
Our planet – GHG emissions (pages 40-41)

G4-EN3 - Energy consumption within theorganization

Our planet – GHG emissions (pages 40-41)
Basis of Reportingwww.jt.com/csr/environ/data/index.html

WATER

DMA

We use renewable and non-renewable energy sources within the organization. Renewable energy sources include solar, hydropower and biomass, and non-renewable energy sources include natural gas and fuel oils for heating, and diesel and petrol for
fleet vehicles. We also purchase electricity, heating, and steam.

Our planet – Environmental management(page 39)
Our planet – Resource efficiency – water andwaste (pages 42-43)

G4-EN8 - Total water withdrawal bysourceOur planet – Resource efficiency – water andwaste (pages 42-43)
Basis of Reportingwww.jt.com/csr/environ/data/index.html

BIODIVERSITYDMA

Our planet – Biodiversity (pages 44-45)

G4-EN12 - Description of significant
impacts of activities, products, andservices on biodiversity in protected areas
and areas of high biodiversity value outside
protected areas

Our planet – Biodiversity (pages 44-45)

JT GROUP SUSTAINABILITY REPORT FY2015 – GRI G4 CONTENT INDEX

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MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)

GHG
EMISSIONSDMA

Our planet – Environmental management(page 39)OMISSIONS AND ADDITIONAL INFORMATION

Our planet – GHG emissions (pages 40-41)

G4-EN15 - Direct GHG emissions(Scope 1)

Our planet – GHG emissions (pages 40-41)
Basis of Reportingwww.jt.com/csr/environ/data/index.html

G4-EN16 - Energy indirect GHG emissions(Scope 2)

G4-EN17 - Other Indirect GHG emissions(Scope 3)

G4-EN18 - GHG emissions intensity

G4-EN19 - Reduction of GHG emissions

EFFLUENTS AND
WASTE

DMA

Our planet – Environmental management(page 39)
Our planet – Resource efficiency – water andwaste (pages 42-43)

G4-EN22 - Total water discharge by
quality and destination

Our planet – Resource efficiency – water andwaste (pages 42-43)
Basis of Reporting

We do not have one global standard on quality of discharged water, but we comply with local laws and regulatory
requirements on water. Where there are no such laws and requirements, we have a voluntary standard on the quality of water
discharged.

www.jt.com/csr/environ/data/index.html
G4-EN23 - Total weight of waste by typeand disposal method

Our planet – Resource efficiency – water andwaste (pages 42-43)
Basis of Reportingwww.jt.com/csr/environ/data/index.html

JT GROUP SUSTAINABILITY REPORT FY2015 – GRI G4 CONTENT INDEX

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MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)OMISSIONS AND ADDITIONAL INFORMATIONENVIRONMENT:PRODUCTS ANDSERVICESDMAGRI G4 Content Index

Litter from tobacco products is an issue that calls for collective action to educate adult consumers to act responsibly. A litterfree environment benefits everyone, smokers included. We adopt a two-pronged approach on this issue: creating awarenessthrough campaigns and providing smokers with facilities to easily throw away their cigarette butts.

ENVIRONMENT:COMPLIANCE

SUPPLIER
ENVIRONMENTALASSESSMENT

Our processed food business (page 78)

G4-EN27 - Extent of impact mitigation ofenvironmental impacts of products andservices

GRI G4 Content Index

DMA

Our planet – Environmental management(page 39)

G4-EN29 - Monetary value of significant
fines and total number of non-monetary
sanctions for non-compliance withenvironmental laws and regulations

GRI G4 Content Index

DMA

Our tobacco business – Supply chain
management (page 59)

Our processed food business (page 78)

In Japan, since 2004, we have run a ‘Pick up and you will love your city’ campaign, operating in collaboration with more than
3,500 organizations, including local governments, private companies, and volunteer groups as well as local citizens. We haveorganized more than 1,700 events in which an estimated 1.6 million people have participated since the launch of the initiative.

During 2015 there were no significant monetary fines or non-monetary sanctions for non-compliance with environmental laws
and regulations.

Our planet – GHG emissions (pages 40-41)
Our planet – Biodiversity (pages 44-45)
Our tobacco business – Social andenvironmental leadership (page 62)

G4-EN32 - Percentage of new suppliers
that were screened using environmental
criteria

Our tobacco business – Supply chain
management (page 59)

G4-EN33 - Significant actual and potential
negative environmental impacts in the
supply chain and actions taken

Our tobacco business – Supply chain
management (page 59)

The data on supplier screening and potential negative impacts in the supply chain is only implicitly available for international
directly contracted leaf suppliers (SRTP) as there is no screening on other suppliers at the moment. We are in the process ofadopting a more stringent supplier assessment for non-leaf suppliers in our international tobacco business and considering
whether and how to expand the scope to cover other parts of the businesses. We will report on our progress in our FY2016
report.

JT GROUP SUSTAINABILITY REPORT FY2015 – GRI G4 CONTENT INDEX

10MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)OMISSIONS AND ADDITIONAL INFORMATIONLABOR PRACTICES AND DECENT WORKEMPLOYMENTDMAOur people - Employee development andtalent management (pages 31-32)

G4-LA1 - Total number and rates of new
employee hires and employee turnover by
age group, gender, and region

Our people - Employee development andtalent management (pages 31-32)

New employees and turnover by gender

Male

GRI G4 Content Index

Total number of new employees

Basis of Reporting

Rate of new employee hire (%)

Female

Total

2,584

1,264

3,848

8.6%

11.2%

9.3%

Total employee turnover

4,827

1,868

6,695

Employee turnover rate (%)

16.1%

16.5%

16.2%

New employees and turnover by age< 30

30 - 50

> 50

Total

Total number of new employees (*D)

1,693

1,326

55

3,074

Rate of new employee hire (%)

10.0%

32.0%

6.6%

1.0%

Total employee turnover

1,215

2,774

2,706

6,695

Employee turnover rate (%)

17.3%

10.5%

34.4%

16.2%

(*D)

New employees
and turnover byregion

Japan

South
and West
EuropeNorth andCentralEurope

CIS+

Other

Total

Total number of new
employees

761

211

476

889

1,511

3,848

Rate of new
employee hire (%)

4.9%

7.2%

8.6%

11.2%

16.1%

9.3%

Total employee
turnover

3,247

287

585

1,230

1,346

6,695

Employee turnoverrate (%)

20.8%

9.8%

10.6%

15.5%

14.3%

16.2%

JT GROUP SUSTAINABILITY REPORT FY2015 – GRI G4 CONTENT INDEX

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MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)OMISSIONS AND ADDITIONAL INFORMATIONEMPLOYMENTG4-LA2 - Benefits provided to full-time
employees that are not provided totemporary or part-time employees, bysignificant locations of operation

Our people - Employee development andtalent management (pages 31-32)

As of the end of 2015, significant locations include our JT head office in Tokyo, Japan and our international tobacco businesshead office in Geneva, Switzerland.

GRI G4 Content Index
Basis of Reporting

JT head office in Tokyo
Benefits

Permanent
employees

Temporary full-time
employees
Commissioned
personnel

Bereaved family
compensation
programY

Regular healthexamination

Y

Y

Medical leavesystemY

Y

Parental leave

YY

Retirement

Y

Stock ownershipY

Temporary parttime employees
Contract
employees*

Y

Y

Y

Y

International tobacco business head office in Geneva
Benefits

Permanent
employees

Temporary fulltime
employees

Temporary part-time
employees

Life insuranceYY

Y (prorated)

Healthcare

Y

Y

Y

Disability andinvalidity coverageYY

Y (prorated)

Parental leaveYY

Y (prorated)

Retirement provisionYY

Y (prorated)

Stock ownership

Y*Contract employees may be given benefits if they are exempt from company regulations.

JT GROUP SUSTAINABILITY REPORT FY2015 – GRI G4 CONTENT INDEX

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MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)LABOR/MANAGEMENTRELATIONSDMA

Our people – Being a responsible employer(page 33)

G4-LA4 - Minimum notice periods
regarding operational changes, including
whether these are specified in collective
agreements

Our people – Being a responsible employer(page 33)
Basis of ReportingOMISSIONS AND ADDITIONAL INFORMATION

Minimum notice periods
regarding operationalchangesNumber of months
between theannouncement and thetime the first employee
leaves the factory
because of the closure

Number of months
between theannouncement
and the final
closure27 months

43 months

No

Moscow, Russia

5 months

13 months

No

Lisnafillan, Northern Ireland

18 months

30 months

No

Wervik, Belgium

OCCUPATIONALHEALTH AND
SAFETYIs the minimum notice
period for consultationand negotiation specified
in collective agreements?
(Yes or No)

DMA

Our people – Workplace health and safety(pages 36-37)

G4-LA6 - Type of injury and rates of injury,
occupational diseases, lost days, andabsenteeism, and total number of workrelated fatalities, by region and by gender

Our people – Workplace health and safety(pages 36-37)

We do not collect information on the breakdown of our safety statistics by region and gender. We will investigate if we cancollect data by gender in future.

Basis of Reporting

We also do not currently collect Group-level consolidated data for the indicators below:- Lost day rate: in 2016 we plan to put in place the necessary data collection methods and calculations to include a report on
this in future.
- Absentee rate: in 2016 we will investigate what data is available on absentee rates and how we can collect more.
- Occupational disease rate: during 2016 we will plan to produce guidance on the definition and diagnosis of occupational
diseases, together with a reporting process, and, if appropriate, consider mechanisms for the collection of JT Group-level
information.
In Japan we are adjusting our data collection and reporting process to capture safety statistics for contractors in line withinternational reporting requirements, in addition to requirements from the Japanese government that we currently follow.

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MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)TRAINING AND
EDUCATION

DMA

Our people – Developing and retaining talent(page 32)

G4-LA10 - Programs for skills
management and lifelong learning that
support the continued employability of
employees and assist them in managing
career endings

Our people – Developing and retaining talent(page 32)

G4-LA11 - Percentage of employees
receiving regular performance and careerdevelopment reviews, by gender and by
employee category

Our people – Developing and retaining talent(page 32)OMISSIONS AND ADDITIONAL INFORMATION

Basis of Reporting

Basis of ReportingGRI G4 Content Index

Percentage of employees receiving regular performance and careerdevelopment reviews by gender (*D)

2015

Male (%)

74%

Female (%)

74%

Percentage of employees receiving regular performance and careerdevelopment reviews by employee category (*D)

2015

Executive Officer (%)

100%

Management (excluding Executive Officers) (%)

94%

Employees (excluding management) (%)

73%

We currently cannot provide the breakdown data on this indicator for our Japanese domestic Group companies.

DIVERSITY
AND EQUALOPPORTUNITY

DMA

Our people - Equality and diversity at theworkplace (pages 34-35)

G4-LA12 - Composition of governancebodies and breakdown of employees per
employee category according to gender,
age group, minority group membership,
and other indicators of diversity

Our people - Equality and diversity at theworkplace (pages 34-35)
JT Annual Report FY2015 (pages 48-52)
Basis of Reporting

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MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)

EQUAL
REMUNERATION
FOR WOMEN AND
MEN

DMA

Our people - Equality and diversity at theworkplace (pages 34-35)

OMISSIONS AND ADDITIONAL INFORMATION

Our people - Equal remuneration for womenand men (page 35)
G4-LA13 - Ratio of basic salary andremuneration of women to men by
employee category, by significant locationsof operation

Our people - Equal remuneration for womenand men (page 35)
Basis of Reporting

Significant
locations

Employee category

JTI Geneva HQVice President

98.8%

Director

97.2%

Manager

91.8%

Associate105.1%

Executive Officers

91.9%

Management

97.2%

Employees

99.7%

JT Tokyo HQ

SUPPLIERASSESSMENT FOR
LABOR PRACTICES

DMA

Ratio of annual basesalary of women tomen in 2015

Our tobacco business – Supply chain
management (page 59)
Our tobacco business – Social andenvironmental leadership (page 62)
Improving our supply chain – ALP (page 52)

LABOR PRACTICESGRIEVANCEMECHANISMS

G4-LA14 - Percentage of new suppliers
that were screened using labor practices
criteria

Improving our supply chain – ALP (page 52)

G4-LA15 - Significant actual and potential
negative impacts for labor practices in the
supply chain and actions taken

Improving our supply chain – ALP (page 52)

DMA

Our way of doing business Reporting concerns (page 25)

G4-LA16 - Number of grievances
about labor practices filed, addressed,
and resolved through formal grievancemechanisms

Our way of doing business Reporting concerns (page 25)

The data on supplier screening and potential negative impacts in the supply chain is only implicitly available for international
directly contracted leaf suppliers (SRTP) as there is no screening on other suppliers at the moment. The percentage of new
suppliers that were screened using labor practices criteria for international directly contracted leaf suppliers was 7%. We are in
the process of adopting a more stringent supplier assessment for non-leaf suppliers in our international tobacco business andconsidering whether and how to expand the scope to cover other parts of the businesses. We will report on our progress in our
FY2016 report.

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MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)OMISSIONS AND ADDITIONAL INFORMATIONHUMAN RIGHTSINVESTMENTNONDISCRIMINATIONDMA

Developing due diligence (page 52)

G4-HR1 - Total number and percentage
of significant investment agreements
and contracts that include human rights
clauses or that underwent human rights
screening

Developing due diligence (page 52)

DMA

Our way of doing business - Reporting
concerns (page 25)

In 2015 all three of our business development projects included human rights risk assessments as part of due diligence. No
specific human rights clauses were included in the subsequent agreements; however, all our contracts require adherence to
our Codes of Conduct, which require respect for human rights.

Our people – Being a responsible employer(page 33)
G4-HR3 - Total number of incidents of
discrimination and corrective actions taken

Our way of doing business - Reporting
concerns (page 25)
Our people – Being a responsible employer(page 33)

FREEDOM OF
ASSOCIATIONAND COLLECTIVEBARGAINING

CHILD LABOR

In 2015 there were five alleged cases of workplace discrimination. We have reviewed all cases – three were concluded to
be unsubstantiated and there is ongoing investigation for the remaining two. We have issued targeted communication andprovided further training with the aim to prevent such cases in the future.

DMA

Our people – Being a responsible employer(page 33)

G4-HR4 - Operations and suppliers
identified in which the right to exercise
freedom of association and collective
bargaining may be violated or at significant
risk, and measures taken to support theserightsIn focus: Respecting Human Rights(pages 52-55)

DMA

In focus: Respecting Human Rights(pages 52-55)

Our materiality assessment has determined child labor to be material only in our tobacco value chain.

G4-HR5 - Operations and suppliers
identified as having significant risk forincidents of child labor, and measurestaken to contribute to the effective
abolition of child labor

In focus: Respecting Human Rights(pages 52-55)

Operations and suppliers identified as having significant risk for incidents of child labor have been identified in all countries
where we directly source tobacco leaf outside of Japan. We assess and mitigate those risks through our ALP, ARISE, and the
Eliminating Child Labour in Tobacco Growing (ECLT) Foundation.

The right to exercise freedom of association and collective bargaining is at risk in all countries where we directly source
tobacco leaf outside of Japan. We assess and mitigate those risks through our Agricultural Labor Practices (ALP).
We are developing our Group-level human rights policy, scheduled to be published in the summer of 2016, and are adapting
our human rights due diligence process to allow us to collect data and fully report on this indicator in the future for the rest of
the supply chain and our operations.

We are developing our Group-level human rights policy, scheduled to be published in the summer of 2016, and are adapting
our human rights due diligence process to allow us to collect data and fully report on this indicator in the future for the rest of
the supply chain and our operations.

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MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)OMISSIONS AND ADDITIONAL INFORMATIONFORCED OR
COMPULSORY
LABOR

DMA

In focus: Respecting Human Rights(pages 52-55)

Our materiality assessment has determined forced and compulsory labor to be material only in our tobacco value chain.

G4-HR6 - Operations and suppliers
identified as having significant risk
for incidents of forced or compulsory
labor, and measures to contribute to
the elimination of all forms of forced orcompulsory labor

ASSESSMENT

SUPPLIER
HUMAN RIGHTSASSESSMENT

Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor have been identified in
all countries where we directly source tobacco leaf outside of Japan. We assess and mitigate those risks through our ALP.
We are developing our Group-level human rights policy, scheduled to be published in 2016, and are adapting our human rights
due diligence process to allow us to collect data and fully report on this indicator in the future for the rest of the supply chain
and our operations.

DMA

In focus: Respecting Human Rights(pages 52-55)

G4-HR9 - Total number and percentage
of operations that have been subject
to human rights reviews or impact
assessments

In focus: Respecting Human Rights(pages 52-55)

DMA

Our tobacco business – Supply chain
management (page 59)

We are developing our Group-level human rights policy, scheduled to be published in 2016, and are adapting our human rights
due diligence process to allow us to report on this indicator in the future.

Our tobacco business – Social andenvironmental leadership (page 62)
Improving our supply chain – ALP (page 52)

G4-HR10 - Percentage of new suppliers
that were screened using human rights
criteria

Our tobacco business – Supply chain
management (page 59)
Our tobacco business – Social andenvironmental leadership (page 62)
Improving our supply chain – ALP (page 52)

G4-HR11 - Significant actual and potential
negative human rights impacts in the
supply chain and actions taken

The data on supplier screening and potential negative impacts in the supply chain is only implicitly available for international
directly contracted leaf suppliers under SRTP, and we are currently introducing ALP to get better data. There is no screening onother suppliers at the moment. We are in the process of adopting a more stringent supplier assessment for non-leaf suppliersin our international tobacco business and are considering whether and how to expand the scope to cover other parts of thebusinesses. We will report on our progress in our FY2016 report.

Our tobacco business – Social andenvironmental leadership (page 62)

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MATERIALASPECTDISCLOSURE ON
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LOCATION (PAGES)HUMAN RIGHTSGRIEVANCEMECHANISMS

DMA

In focus: Respecting Human Rights(pages 52-55)

OMISSIONS AND ADDITIONAL INFORMATION

Our way of doing business - Reporting
concerns (page 25)
G4-HR12 - Number of grievances abouthuman rights impacts filed, addressed,
and resolved through formal grievancemechanisms

In focus: Respecting Human Rights(pages 52-55)

DMA

Our contributions to society (page 46)

Our way of doing business - Reporting
concerns (page 25)

SOCIETYLOCALCOMMUNITIESOur tobacco business – Social andenvironmental leadership (page 62)
G4-SO1 - Percentage of operations
with implemented local community
engagement, impact assessments, anddevelopment programs

Our contributions to society (page 46)
Our tobacco business – Social andenvironmental leadership (page 62)

We have community investment programs implemented in 89% of our markets.
In addition to our community investment programs, we also have ARISE and Grower Support Programs (GSP) in Brazil,
Malawi, Tanzania, and Zambia in 2015, covering 57% of the countries where we procure tobacco or 57% of the countries
where we procure tobacco leaf from directly contracted farmers.
Country

ANTI-CORRUPTION

DMA

Number of GSP

Brazil16

Malawi

8

Zambia95

Tanzania

13

ARISE

Our way of doing business – Code of
Conduct (page 24)
Our way of doing business - Anti-bribery andcorruption (pages 28-29)

G4-SO4 - Communication and training on
anti-corruption policies and procedures

Our way of doing business – Code of
Conduct (page 24)
Our way of doing business - Anti-bribery andcorruption (pages 28-29)

Our anti-bribery and corruption policies and procedures, including on Gifts, Hospitality and Entertainment, are outlined in our
Codes of Conduct, which we communicate to all employees. Mandatory training on our Codes of Conduct is provided to all
our employees. We also require all commercial partners in our international tobacco business to act in accordance with ourstandards.
In 2015, 1,478 targeted employees working in functions where bribery and corruption is a key issue participated in online
training on anti-bribery and corruption.

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LOCATION (PAGES)

PUBLIC POLICY

DMA

Our sustainability journey – Collaborations,memberships, and endorsements(pages 18-19)

OMISSIONS AND ADDITIONAL INFORMATION

Our way of doing business - Our tax practices(page 26)

ANTI-COMPETITIVEBEHAVIORCOMPLIANCE

G4-SO6 - Total value of politicalcontributions by country and recipient/beneficiary

GRI G4 Content Index

DMA

Our way of doing business - Anti-competitive
behavior (page 27)

G4-SO7 - Total number of legal actions foranti-competitive behavior, anti-trust, andmonopoly practices and their outcomes

Our way of doing business - Anti-competitive
behavior (page 27)

DMA

Our way of doing business - Compliance with
the Code of Conduct (page 24)

G4-SO8 - Monetary value of significant
fines and total number of non-monetary
sanctions for non-compliance with laws
and regulations (related to accounting
fraud, workplace discrimination, or
corruption)

GRI G4 Content Index

In compliance with Political Funds Control Laws in Japan, JT refrains from making political contributions. None of JT’s
subsidiaries made political contributions in any jurisdiction in 2015 except a non-tobacco subsidiary in Japan, which madea political contribution that amounted to low-single-digit million Yen, at its own discretion, in compliance with all relevantJapanese laws.

During 2015 there were no significant monetary-value fines or non-monetary sanctions for non-compliance with laws andregulations (related to accounting fraud, workplace discrimination, or corruption).

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MATERIALASPECTDISCLOSURE ON
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LOCATION (PAGES)

SUPPLIERASSESSMENT
FOR IMPACTS ON
SOCIETY

DMA

Our tobacco business – Supply chain
management (page 59)

OMISSIONS AND ADDITIONAL INFORMATION

Our tobacco business – Social andenvironmental leadership (page 62)
Improving our supply chain – ALP (page 52)

G4-SO9 - Percentage of new suppliers thatwere screened using criteria for impacts
on society

Our tobacco business – Supply chain
management (page 59)
Our tobacco business – Social andenvironmental leadership (page 62)
Improving our supply chain – ALP (page 52)

G4-SO10 - Significant actual and potential
negative impacts on society in the supply
chain and actions taken

The data on supplier screening and potential negative impacts in the supply chain is only implicitly available for international
directly contracted leaf suppliers under SRTP, and we are currently introducing ALP to get better data. There is no screening onother suppliers at the moment. We are in the process of adopting a more stringent supplier assessment for non-leaf suppliersin our international tobacco business and are considering whether and how to expand the scope to cover other parts of thebusinesses. We will report on our progress in our FY2016 report.

Our tobacco business – Supply chain
management (page 59)
Our tobacco business – Social andenvironmental leadership (page 62)
Improving our supply chain – ALP (page 52)

GRIEVANCEMECHANISMSFOR IMPACTS ON
SOCIETY

DMA

Our way of doing business - Reporting
concerns (page 25)

G4-SO11 - Number of grievances about
impacts on society filed, addressed,
and resolved through formal grievancemechanisms

Our way of doing business - Reporting
concerns (page 25)

We are currently in the process of developing a Group-wide definition of what constitutes impacts on society and will report on
our progress in our FY2016 report.

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MATERIALASPECTDISCLOSURE ON
MANAGEMENT APPROACH(DMA) AND INDICATOR

LOCATION (PAGES)OMISSIONS AND ADDITIONAL INFORMATIONPRODUCT RESPONSIBILITYCUSTOMERHEALTH AND
SAFETYDMA

Our tobacco business - Smoking and health(pages 64-65)
Our pharmaceutical business - Approach to
product responsibility (pages 76-77)
Our processed food business - Delivering
safe, high-quality products (pages 80-81)

G4-PR1 - Percentage of significant productand service categories for which healthand safety impacts are assessed for
improvement

Our tobacco business - Smoking and health(pages 64-65)
Our pharmaceutical business - Approach to
product responsibility (pages 76-77)
Our processed food business - Delivering
safe, high-quality products (pages 80-81)

Percentage of products for which
health and safety impacts areassessed for improvement

Traditional
tobaccoproducts

Processedfoodbusiness

100%

100%

Pharmaceuticalbusiness

100%

Emerging products are a new product category to our business and are not included in the table above.

PRODUCT ANDSERVICE LABELING

G4-PR2 - Total number of incidents of noncompliance with regulations and voluntary
codes concerning the health and safety
impacts of products and services during
their life cycle, by type of outcomes

GRI G4 Content Index

DMA

Our tobacco business - Responsible
marketing and sales (page 67)

During 2015 there were no incidents of non-compliance with regulations and voluntary codes concerning the health and safety
impacts of products and services during their life cycle.

Our pharmaceutical business - Approach to
product responsibility (pages 76-77)
Our processed food business - Delivering
safe, high-quality products (pages 80-81)

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MATERIALASPECTDISCLOSURE ON
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LOCATION (PAGES)OMISSIONS AND ADDITIONAL INFORMATIONPRODUCT ANDSERVICE LABELING

G4-PR3 - Type of product and service
information required by the organization’s
procedures for product and service
information and labeling, and percentage
of significant product and service
categories subject to such information
requirements

Our pharmaceutical business - Approach to
product responsibility (pages 76-77)

The following product information is required by our procedures and assessed for compliance on a regular basis:
Information typeTraditional tobacco
products

Processed foodproducts

Pharmaceuticalproducts

Required% covered

Required% covered

Required% covered

The sourcing ofcomponents of the
product or service

Yes (*E)100%(*E)

Yes

100%

Yes

100%

Content,
particularly
with regard to
substances thatmight produce anenvironmental orsocial impact

Yes

100%

Yes

100%

Yes

100%

Yes

100%

Yes

100%

Yes

100%

Yes

100%

Yes

100%

Yes

100%

Safe use of the
product or service
Disposal of the
product andenvironmental/social impacts

Emerging products are a new product category to our business and are not included in the table above.

G4-PR4 - Total number of incidents of
non-compliance with regulations andvoluntary codes concerning product andservice information and labeling, by typeof outcomes

GRI G4 Content Index

G4-FP5 - Percentage of production
volume manufactured in sites certified
by an independent third party according
to internationally recognized food safety
management system standards

Our processed food business - Delivering
safe, high-quality products (pages 80-81)

During 2015 there was one incident in regards to the labeling of Logic products sold in the state of California, U.S.A. This
incident will be closed in Q2 2016 by virtue of a settlement agreement.

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MATERIALASPECTDISCLOSURE ON
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LOCATION (PAGES)

MARKETING
COMMUNICATIONSDMA

Our tobacco business - Responsible
marketing and sales (page 67)

OMISSIONS AND ADDITIONAL INFORMATION

Our pharmaceutical business - Approach to
product responsibility (pages 76-77)
Our processed food business - Delivering
safe, high-quality products (pages 80-81)

COMPLIANCE

G4-PR6 - Sale of banned or disputed
products

GRI G4 Content Index

In 2015 the sales and/or imports of e-cigarettes were banned in more than 20 countries, snus was banned in more than 40
countries, and water pipe tobacco was banned in more than five countries - all of which are part of our product portfolio. The
JT Group fully complies with these bans. We closely monitor the regulatory development so that our products continue to fullycomply with relevant laws and regulations in each jurisdiction.

G4-PR7 - Total number of incidents of
non-compliance with regulations andvoluntary codes concerning marketing
communications, including advertising,promotion, and sponsorship, by type ofoutcomes

GRI G4 Content Index

During 2015 there were no incidents of non-compliance with regulations and voluntary codes concerning marketing
communications, including advertising, promotion, and sponsorship.

DMA

Our way of doing business - Compliance with
the Code of Conduct (page 24)
Our tobacco business - Responsible
marketing and sales (page 67)

G4-PR9 - Monetary value of significant
fines for non-compliance with laws andregulations concerning the provision anduse of products and services

GRI G4 Content Index

In 2015 we did not receive any fines for non-compliance with laws and regulations concerning the provision and use of
products and services.

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