We report annually on our sustainability activities

AWARDS AND RECOGNITION

and performance, and have been publishingenvironmental or Corporate Social Responsibility(CSR) reports since 1998. Our last report, theJT Group Sustainability Report FY2017, waspublished in June 2018.

REFERENCED GUIDELINES
We have compiled the FY2018 report with reference
to the principles of the Global Reporting Initiative(GRI) Sustainability Reporting Standards. We defined
the content of this document using a materiality
assessment that covered the entire JT Group.

EXTERNAL VERIFICATION AND
ASSURANCEThis report is not externally assured, although someof the information within it has been externallyverified. This includes environmental data andoccupational health and safety performance data.

Our GRI Standard Content Index shows the list ofUniversal Standard Disclosures for which we haveprovided related information, either in this report or inother public documents such as our Annual Report.
The identification of Specific Standard Disclosures isbased on materiality assessments for the entire JTGroup.

The environmental data includes Group-wide Scope
1 and 2 GHG data, and some Scope 3 GHG data,
as we state on our website. Furthermore, energyconsumption, water withdrawal, wastewater
discharged, and waste generation (including each of
the sub-categories, i.e. waste recycled, incinerated
with/without heat recovery, and landfilled), have beenexternally assured.

NOTES ON DATA

In terms of occupational health and safety
performance data, only the data relating to ourinternational tobacco business is externally verified.

Data in this report covers January to December 2018,
unless otherwise stated. In 2014, the JT Group moved
its reporting period to the calendar year ending
December 31. Until March 2014 the fiscal year for ourJapanese domestic operations began on April 1 andended on March 31. Historical data indicated with
‘FY’ covers those periods.

In the future we will consider expanding the scope ofassurance of our non-financial data and the contentsof this report.

Although we report the overall JT Group figureswherever possible, in some areas this has not beenpossible. In such instances we have made it clear towhich part of the business the data applies.

In August 2018, we completed the acquisition of thefourth largest tobacco company in Russia, DonskoyTabak.

Please see our website for information about the datareporting hierarchy.
www.jt.com/sustainability/report/index.html
We have shown how we calculate and consolidate
compliance, human resources (HR), health andsafety, environment, and community investment
data in our separate Basis of Reporting document,
which we will continue to update in the future. The
Japanese Yen exchange rates against the U.S. dollar
used in this report are the same as those used in ourconsolidated financial reporting.

In 2018, we were selected as a constituent of theFTSE Blossom Japan Index, which is designed tomeasure the performance of Japanese companies
that demonstrate strong sustainability practices.
www.ftse.com/products/indices/blossom-japan

In November 2018, we completed the acquisition ofthe Akij Group’s tobacco business in Bangladesh.

In 2018, JT achieved the highest ranking Gold status
for the third consecutive year in the PRIDE Index
Report of Japanese employers, which highlights themost LGBT-friendly companies. JT also received the‘Best Practice’ award for the second consecutiveyear.

In 2018, JT was awarded the ‘Platinum Kurumin’certification for creating a supportive workplace foremployees with children.

DISCLOSURE INSIGHT ACTION

In 2018, we achieved Leadership status for climatechange and Management status for water with CDP,a globally recognized platform for environmental
disclosure.
www.cdp.net
In 2019, our approach to climate change was
showcased as an example of best practice. CDP
Stories of Change

CHANGES IN STRUCTURE, SIZE,
OR OWNERSHIPIn 2019, we have set a long-term GHG emission
reduction target in line with the Paris Agreement,
which was approved as an SBT by the Science Based
Targets initiative.
www.jt.com/media/news/2019/pdf/20190227_E01.
pdf

OTHER PUBLICATIONSIn 2018, our international tobacco business wascertified as Global Top Employer, and JT was selected
as a ‘White 500’ company for the third consecutiveyear.
Read more on pages 5 and 39.

In 2018, JT was selected as a “Nadeshiko Brand” thatencourages women’s success in the workplace.
Read more on page 37.

In January 2019, our international tobacco businessbecame the first Geneva-based multinational
headquarters to be certified as an equal salary
employer by the EQUAL-SALARY foundation.

WebsitesJAPAN TOBACCO INC. (global site): www.jt.com
Japan Tobacco International (international tobaccobusiness): www.jti.com
Torii Pharmaceutical Co., Ltd. (pharmaceuticalsubsidiary): www.torii.co.jp/en
TableMark Co., Ltd. (processed food subsidiary):
www.tablemark.co.jp/english/index.html
Publications
JT Annual Report: www.jt.com/investors/results/
annual_report/index.html

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We are a member of the Dow Jones Sustainability
Asia Pacific Index.
www.sustainability-indices.com

CONTACTS AND FEEDBACK
Headquarters
JAPAN TOBACCO INC.

JT INTERNATIONAL SA

2-1, Toranomon 2-chome
Minato-ku
Tokyo 105-8422
Japanwww.jt.com

Rue Kazem-Radjavi 8CH-1202 Geneva
Switzerland

For more information or tosend us your feedback on thisreport, please emailwww.jti.com

jtgcsr@jt.com
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