Top management message
Message fromthe CEO

Chief
Sustainability
O cer interview

Message from the CEO

Masamichi Terabatake
Chief Executive O cer

For our Group to grow sustainably, it is vital for us to contribute to the sustainable development of oursociety through our business activities. As sustainability is at the heart of our management, we haveset out a Group-wide sustainability strategy. We have also formulated a sustainability strategy for eachof our businesses, bearing in mind the unique challenges they face.
Three absolute requirements of our Group-wide sustainability strategy are ‘respect for human rights’,‘an improved social and environmental impact,’ and ‘good governance and business standards’. These

are the foundations for a sustainable business. For our tobacco business, our core business, we haveset four focus areas: ‘products and services’, ‘people’, ‘supply chain’, and ‘
regulatory environment and illegal trade’. For these four focus areas, we have also established 11
speci c targets and initiatives. By working towards the targets and promoting the initiatives, we will besupporting the United Nations’ Sustainable Development Goals (SDGs).
In 2019, for the rst time, we reported to our stakeholders on our progress toward the 11 speci ctargets for our tobacco business. Our pharmaceutical and processed food businesses both nishedsetting out their respective focus areas and targets, so we now have a sustainability strategy for all ofour business segments. Going forward, we will continue to engage with our stakeholders and makeconcerted efforts to ensure that we can all grow together to secure a sustainable future.
Read more about our targets for each business.

Interview with our Chief Sustainability O cer

Kazuhito Yamashita
Director and Senior Vice President
Chief Sustainability O cer, Compliance andGeneral Affairs

Q. Tell us about your role as the Chief Sustainability O cer(CSO).
Contributing to the sustainable development of society is essential for the JT Group to achievesustainable growth, and to meet the needs of our four key stakeholder groups under our 4S model. As a
director of the company and CSO, it is my role to look to the future and pursue sustainability
management across our Group. With a mid- to long-term perspective, we aim to achieve sustainablegrowth for the society in which we operate and for the JT Group, so that we can respond to the
expectations of our stakeholders.

Q. How do you pursue sustainability management in yourorganization?
In 2015, we identi ed 22 material issues relevant to the JT Group and our stakeholders to achievesustainable growth. In 2016, our Corporate Governance Policy stipulated that ‘the Board of Directors,
based on the understanding that measures towards domestic and foreign issues on sustainability are
an essential part of risk management, shall receive reports as necessary through Members of theBoard in charge of sustainability and proactively work on such issues, such as by holding discussions.’
As the policy demonstrates, pursuing sustainability is at the heart of what we do, and it is one of the
key management issues for the Group.
In 2019, to build on our past sustainability initiatives and continue evolving, we re-organized ourorganizational structure and established a sustainability management division at JT headquarters andappointed a Senior Vice President for sustainability. We also set out a sustainability strategy
encompassing the whole Group. We are now supporting Group businesses to implement theirrespective sustainability strategies. By doing so, we are engaged in environmental management, risk
management, supply chain management, initiatives for respecting human rights, and community
investment on a day-to-day basis.

Q. Tell us about your sustainability issues and challenges.

The three absolute requirements for the Group are ‘respect for human rights,’ ‘an improved social andenvironmental impact,’ and ‘good governance and business standards.’
The JT Group operates in more than 130 countries and regions. In some of these markets, humanrights are at risk – and respect for human rights is a crucial aspect of the Group’s sustainability. We set
out the JT Group Human Rights Policy in 2016. Since then, we have been training our employees onhuman rights through regular e-learning courses. We perform human rights due diligence for ouroperations globally. We work to ensure that human rights are respected not only within our own Group,
but also throughout our value chain.
As we all are increasingly concerned about the effects of climate change, corporations are working on
improving environmental impact. We have set out the JT Group Environment Plan 2030 to addressthese issues within our Group and throughout our value chain. We are working on reducing GHG
emissions, shifting to renewable energy, managing water risks, conserving forest resources, and further
reducing the environmental impact of waste.
To improve our social impact, we prioritize three areas: ‘reducing inequalities,’ ‘improving community
resilience in disaster-prone areas,’ and ‘protecting the environment.’ What we would like to see isinclusiveness both in society as a whole and indeed in all the communities we operate in. We also
provide employees with opportunities for volunteering so that they can proactively contribute to local
communities.
Corporate governance is one of the most important management issues. Governance is a mechanism
for ensuring that transparent, fair, prompt, and resolute decision-making is carried out in line with the
4S model, our management principles. Going forward, we will keep our governance under review forcontinuous improvement to ensure it is t for the purpose.

Q. Can you tell us about the sustainability strategy for each ofyour businesses?
Each business has set out its own ‘focus areas,’ with speci c targets. Back in 2018, our tobacco
business had four focus areas and a total of 11 targets. By pursuing such targets, we believe we can
support and contribute to achieving the United Nations’ Sustainable Development Goals. I’m pleased to
say this is the rst time we are reporting on progress toward achieving the
11 targets of our tobacco business.
During 2019, our pharmaceutical and processed food businesses set out their own sustainabilitystrategies, focus areas, and targets. Our sustainability strategy for the entire Group is now in place.

Q. Can you give us some insights into the sustainability strategy
for your tobacco business?
E-cigarettes and tobacco vapor products are gaining popularity as alternatives to traditional
combustible products. With the surge of a new category of Reduced-Risk Products (RRP), (Productswith the potential to reduce the risks associated with smoking.) the tobacco industry is undergoing amajor change. We have selected ‘products and services’ as one of our focus areas. Understanding what
consumers are looking for is essential. We would like to offer our customers an even greater choice of
products by focusing on quality, innovation, and reduced-risk potential.
For the Group to achieve sustainable growth, the skills and commitment of our employees are vital. The
communities we operate in, and the people who live in them are important stakeholders. For thisreason, we focus on ‘Investing in people,’ and our tobacco, pharmaceutical, and processed foodbusinesses have each chosen this topic as one of their focus areas.
Supply chain management is a top priority for our business. Leaf tobacco is the most important raw
material for us, so its stable and sustainable procurement is crucial to supply chain management. We
will continue to implement Agricultural Labor Practices (ALP), our core program for managing the leaf
tobacco supply chain and responding to societal issues.
The tobacco industry is highly regulated. The restrictions imposed through regulation are increasing
every year and it is an area of concern to our stakeholders. We will protect our ability to participate inpublic policy debates and continue to engage in dialogue. Illegal trade not only undermines ourbusiness, but it can cause serious harm to our consumers and society. We will continue to engage withlaw enforcement agencies, exchanging intelligence about illegal tobacco products to help reduce illegal
trade.

Q. How are you raising awareness of sustainability within theGroup?

We are working to raise each and every employee’s awareness of sustainability through a variety of
initiatives. These include communications from top management to employees, seminars on ESG(environmental, social, and governance) issues, workshops to enhance employees’ understanding of
the United Nations’ Sustainable Development Goals, and brie ngs at our operational sites.
In our international tobacco business, our Sustainability Awards celebrate outstanding sustainability
projects undertaken by our own employees. Through these initiatives, we encourage our employees tothink about and act on sustainability.

Q. Tell us about your aspirations for the future.
As we work day in, day out to grow ourbusiness, my dream is for everyone in ourGroup to think about sustainability and to feelthat they are contributing to improving thesociety we are all part of. I believe this is the
direction we should be heading in – I hope I
can be proactive in leading the way.

Related links
Our sustainability
strategy

Top management
message

The 4S model,
Materiality,
Sustainability
strategy, SDGs

Stakeholder
engagement

Copyright© Japan Tobacco Inc. All rights reserved.

The 4S model, Materiality,
Sustainability strategy, SDGs
Overview

The 4S model

Materiality

Sustainability
strategy

SDGs

The 4S model
We strive to ful ll our responsibilities to our

Consumers, shareholders, employees, andvalued consumers, shareholders, employees

society - these are the four stakeholder groups

and the wider society. Carefully considering the(4S) at the heart of everything we do at JT. Our

respective interests of these four key

commitment to serving these groups is

stakeholder groups, and exceeding theirrepresented in the 4S model.

expectations wherever we can.
We always try to exceed the expectations of
our four stakeholder groups wherever we can,based on the principles of the 4S model. For
our consumers, this means offering superior
products that meet or go beyond their evolving

needs. For our shareholders, we aim toenhance returns based on our pro t growth
outlook and strike a balance between providing
shareholder returns and investing in thebusiness for future pro t growth. For our
employees, we will work to ensure that we
maintain our reputation as a respected
member of the community and a company thatthey can feel proud to be a part of. And we willcontinue to contribute to society as a whole,
recognizing that our growth bene ts from asustainable society, and in doing so enhance
our corporate value.
Our vision, based on the 4S model, is to achieve
global growth by providing value unique to ourGroup. Our mission - our concrete action planto achieve our vision - is to create, develop, andnurture our brands to meet consumers' needs
while understanding and respecting theenvironment and the diversity present insociety.

The JT Group’s material issues
To help the JT Group to grow, and to build a sustainable future as a member of the society in which we
operate, we have identi ed a list of high-priority material issues. Our materiality is based on the JT
Group’s management principle, the 4S model. In 2015, we performed a materiality assessment covering
the entire Group for the rst time, selecting material issues with a medium or high level of importancefor the JT Group and for our external stakeholders.
To identify our material issues, we began with a media and peer review, which generated a list ofsustainability topics relevant to the Group. In addition to interviews with employees, our CEO, and othermembers of top management, we also held interviews with 17 external stakeholders, including
suppliers, investors, labor unions, NGOs, and industry associations. Our top management thenapproved the results of the materiality assessment during a special workshop.
This process resulted in a nal list of 22 material issues. We then divided these into two categories
according to their level of importance to the JT Group and our external stakeholders: medium or high.

Since our rst materiality assessment, we have noted increasing public concern about the environment.
We share this concern and have therefore repositioned “Environment” from Medium-Medium to HighHigh in the above matrix. We will continue to build on our effort to reduce our environmental impact on
the planet. Read more about our approach in the Environment section.
Looking ahead, we plan to carry out periodic materiality assessments to ensure that our priorities are
up-to-date and consistent with the current needs.

Sustainability strategy overview
The JT Group's sustainability strategy is formulated based on the 4S model, our management
principles, and encompasses our materiality analyses. It encourages us to look beyond our usual
planning cycle period and think about the longevity of our business, the future of our planet and thesociety we live in. The foundations of our sustainability strategy, which apply across the Group, are our“three absolute requirements for sustainability.”

The JT Group’s three absolute requirements forsustainability
Respect for human rights
We are committed to respecting human rights across our global
operations and value chains, as expressed in the JT Group Human
Rights Policy.
Read more

An improved social and environmental impact
We are committed to protecting the environment and making a
positive difference wherever we operate.
Read more about how we are improving our social and environmental
impactGood governance and business standards
We are committed to promoting transparent, fair and timely decisionmaking that carefully considers the respective interests of consumers,
shareholders, employees and the wider society.
Read more

Tobacco business sustainability strategy
We have identi ed priority areas for each business segment. The tobacco business, our core business,has selected the following four focus areas with its aspirational goals. In addition, we have set
11 speci c targets.

Focus areas

Products and services

PeopleSupply chain

Regulatory environment andillegal trade

Aspirational goals

We will be a total tobacco company offering consumers an even greater choice of
products by focusing on quality, innovation, and reduced-risk potential.

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

We will reduce environmental and social risks, and enable transparent andresponsible practices across our supply chain.

We will ensure the Company is included in policymaking leading to fair andbalanced regulation, and enhance our cooperation with governments to combat
illegal trade.

Tobacco business sustainability strategy- Focus areas, aspirations, targets and progress

Pharmaceutical business sustainability strategy
Throughout 2019, our pharmaceutical business held numerous discussions on sustainability and set
out three focus areas. The mission of our pharmaceutical business is to create innovative, original
drugs to support patients in the shortest time possible. In view of this mission, we have selected“products and services” and “product safety and responsibility” as our focus areas. As talentdevelopment of our employees is essential to rst-in-class drug discovery, we have also selected“people” as our focus area. In total, we have set ve speci c targets
business focus areas.

for these pharmaceuticalFocus areas

Products and services

PeopleAspirational goals

We will create innovative, original drugs to support patients in the shortest timepossible.

We will strive to nurture talent development which enables us to create rst-inclass (FIC) drugs.

Product safety andWe will strictly comply with all relevant laws, regulations, and industry standards in

responsibility

order to deliver safe drugs to patients.

Pharmaceutical business sustainability strategy- Focus areas, aspirations and targets

Processed food business sustainability strategy
Our mission in the processed food business is to deliver safe, high-quality products to consumers. Oneof the focus areas that we have selected is “products and services.” We aim to continuously deliverproducts with commitment to quality and technology, in line with consumer needs. In the processedfood business also, we will place emphasis on “people.” We will strive to ensure workplace safety andinvest in our people. Our third focus area is the “supply chain.” We will continue to deliver safe products
to our consumers by working on reducing social and environmental impacts, to ensure that our supply
chain is sustainable over the mid- to long-term. In total, there are eight targets
areas in the processed food business.

set for the focus

Focus areas

Products and services

PeopleSupply chain

Aspirational goals

We will continue to provide high-quality, technology-driven products in response to
our customer's needs, to satisfaction and trust.

We will ensure workplace safety for our employees, while continuously investing inpeople who can contribute to enhancing corporate value.

We will reduce social and environmental impacts and continue to deliver safe
products to consumers.

Processed food business sustainability strategy- Focus areas, aspirations and targets

Contribution to the SDGs
The JT Group supports the Sustainable Development Goals (SDGs) adopted by the United Nations.
Through our business activities, the JT Group will contribute to the SDGs related to our business and its
environment. We have mapped related SDGs against our initiatives for sustainable business, andidenti ed the nine SDGs to which our business can best contribute.

Tobacco

Pharmaceuticals

Processed food

Related links
Our sustainability
strategy

Top management
message

The 4S model,
Materiality,
Sustainability
strategy, SDGs

Stakeholder
engagement

Copyright© Japan Tobacco Inc. All rights reserved.

Sustainability Strategy of Tobacco Business
4 Strategic Focus Areas

Aspirational Goals

Targets*1

Progress*2

Products and Services

We will be a total tobaccocompany offering consumers
an even greater choice of
products by focusing on
quality, innovation, andreduced-risk potential.

Reduced-Risk Products
Reduced-Risk Products (RRP) offer real benefits to consumers and society. Our
responsibility as a manufacturer is to continuously develop and launch RRP thatmeet consumer expectations and to provide information on them. We will lead inproviding the widest range of consumer choice in the RRP category.

At the end of 2019, our Reduced-Risk Product portfolio was present in 28
countries, with a choice of three tobacco vapor offerings (T-Vapor) and five typesof e-cigarettes (E-Vapor).

PeopleWe will be the employerof choice by investingin people.

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

Recordable injury rate*3 declined 31.2% from 0.72 in 2015 to 0.49 in 2019.

Community Investment
Between 2015 and 2030 we will invest US$600 million to help makecommunities inclusive and resilient, with our employees contributing 300,000
volunteering hours.

Since 2015, we have invested US$300 million in our communities andemployees volunteered 119,349 hours on company time.

Employer of Choice
We will be a certified employer of choice every year in at least 60 locations byfocusing on talent management, rewards, and empowerment.

We were certified as a Top Employer in 63 locations, an increase of 5 locations
from the prior year. We were also awarded with local certifications in 8 locations.

Greenhouse Gas Emissions
We will reduce greenhouse gas emissions from our own operations by 35% andfrom our direct leaf supply chain by 40%, between 2015 and 2030.

Since 2015, we have reduced greenhouse gas emissions from our own
operations by 17.4%. Greenhouse gas emissions from our direct leaf supply
chain increased by 17.9%.*4

Water and Waste
We will reduce water withdrawal by 15% and waste by 20%, in relation to ourown operations, between 2015 and 2030.

Since 2015, we have reduced water withdrawal by 9.7% and waste by 6.3%,
in relations to our own operations.

Forestry
We will replace all wood from natural forests used in the tobacco curing processof our directly contracted growers with renewable fuel sources by 2030.

Based on our 2019 sustainable tree planting activities in Tanzania, Zambia andBrazil, we estimate that we are on a path to achieve 59% renewable wood
sourcing by 2026.

Agricultural Labor Practices
We will implement our Agricultural Labor Practices (ALP) program in all sourcing
countries by 2025.

[58%*5 of our directly contracted growers and 98% of our leaf merchants were covered by ALP; leaf
merchants data come from reporting entities only and excluding India and China.]

Supply Chain

We will reduce environmental and social risks, andenable transparent andresponsible practices acrossour supply chain.

SDGs

In 2019, 81% of our supplying entities reported against ALP.

74% of our volumes were covered by ALP.

Regulatory Environment
and Illegal Trade

We will ensure the Company isincluded in policymaking
leading to fair and balanced
regulation, and enhance ourcooperation with governments
to combat illegal trade.

Supplier Screening
We will screen all key suppliers against environmental, social, and governancecriteria by 2023.

At the end of 2019, 67% of our key suppliers were screened against ESG criteria.*6

Engagement
We will always protect our ability to participate in public policy debate with theaim to achieve balanced regulation that meets societal concern and supportsbusiness growth.

During 2019, we engaged openly and transparently in public policy debate andmade our views known to regulators, NGOs and other relevant stakeholders in
the countries where we operate.

Illegal Trade
We will engage in dialogue with law enforcement agencies, with the goal toexchange intelligence regarding illegal tobacco products, in order to support the
reduction of illegal tobacco products.

In 2019, our Anti-Illicit Trade team provided 1,129 intelligence reports to law
enforcement agencies, and advised 2,687 law enforcement officers on
counterfeit recognition.

*1 The above are targets for our tobacco business, except for Community Investment which is a Group-wide target.
*2 Progress shown above are 2019 results.
*3 Recordable injury rate = Recordable injuries/200,000 hours worked. Some data from newly acquired business have been excluded, as newly acquired businessneeds 18 months to integrate the JT Group Health and Safety Standards.

*4 The main reason for the increase in GHG emissions from our direct leaf supply chain is the increased volume sourced from Zambia and Tanzania, both of which use woodfor curing that currently is predominantly non-renewable. We expect that the impact of initiatives to reduce leaf-related emissions will be seen from 2022 onwards, withcuring barn upgrades and the increase in proportion of renewable wood used for curing in Zambia and Tanzania.
*5 The decrease from 96% in 2018 to 58% in 2019 is due to new acquisitions.
*6 Results for our international tobacco business.

Sustainability Strategy of Pharmaceutical Business
Strategic Focus Areas

Aspirational Goals

Targets

Products and Services

We will create innovative, original drugs
to support patients in the shortest
time possible.

Engaging in R&D Activities
We will continue our efforts and investments into research and development activities of innovative drugs in specific therapeutic areas.

PeopleWe will strive to nurture talentdevelopment which enables us to create
first-in-class (FIC) drugs.

Fostering Ethical AwarenessIn order to develop talent and foster employees’ ethical awareness and sense of responsibility towards saving patients, we will continue to learn more about
patients’ needs by engaging in dialogue with medical experts through our internal educational activity “For the Patients Project.”Community Investment*
Between 2015 and 2030 we will invest US$600 million to help make communities inclusive and resilient, with our employees contributing 300,000
volunteering hours.

Product Safety andResponsibility

We will strictly comply with all relevantlaws, regulations, and industry standards inorder to deliver safe drugs to patients.

Responsible Promotion of Drugs
We will conduct, among others, regular training programs for our medical representatives in order to provide medical professionals with appropriate information
on pharmaceutical products.

Greenhouse Gas Emissions
We will reduce greenhouse gas emissions from our own operations by 31%, between 2015 and 2030.

* Target for Community Investment is a Group-wide target.

SDGs

Sustainability Strategy of Processed Food Business
Strategic Focus Areas

Aspirational Goals

Targets

Products and Services

We will continue to provide high-quality,
technology-driven products in response
to our customer's needs, to satisfaction
and trust.

Improvement of Quality of LifeWe will develop and provide high-value-added products with a focus on “health,” “convenience,” and “diversity,” in response to diverse consumer needs.

PeopleWe will ensure workplace safety for our
employees, while continuously investing inpeople who can contribute to enhancing
corporate value.

Enhance Job Satisfaction
We will further improve job satisfaction by promoting talent development in a secure and motivating workplace.

Zero Injuries
In line with our vision of zero workplace injuries, we will reduce injury rates by 25% by 2025 and 50% by 2030. (Baseline year: 2018)

Community Investment*1
Between 2015 and 2030 we will invest US$600 million to help make communities inclusive and resilient, with our employees contributing 300,000
volunteering hours.

Supply Chain

We will reduce social and environmental
impacts and continue to deliver safe
products to consumers.

Foster a Safe and Reliable Corporate Brand
We will promote food safety management in compliance with global food safety standards to develop food safety. We will also enhance the way wecommunicate with customers so that they retain trust in our food quality.
Promote Use of Environmentally Friendly Packaging Materials
We will promote the use of renewable plant-based resources and reduce our use of non-renewable resources, to reduce the environmental impact of our products.

Waste
We will reduce the amount of waste associated with our Japanese domestic offices by an average of 1% per year. (Intensity target*2).

Greenhouse Gas Emissions
We will reduce greenhouse gas emissions from our own operations by 28%, between 2015 and 2030.

*1 Target for Community Investment is a Group-wide target.
*2 Amount of waste generation / Amount of production.

SDGs

Stakeholder engagement
We regularly engage with consumers, shareholders, employees, and members of wider society tounderstand the issues that matter to them most, and to meet their needs and expectations. This
engagement is vital in helping us to make decisions that will drive long-term sustainability. Listed below
are our key stakeholder groups and how we engage with them.

Customers and consumers■

Our sales force interacts with our retailers and consumers on a day-to-day basis to better
understand their needs and preferences (e.g. visiting retailers, interactive sampling of new products
where legally permitted, etc.)■

We respond to product and business enquiries from consumers through our consumer hotline
service■

When it comes to developing our Reduced-Risk Products, we listen to what our consumers want tomake sure that we provide them with the widest range of quality products

Shareholders■

We hold an annual general meeting every year and present our nancial results to our shareholders■

We are in regular contact with institutional shareholders to discuss the issues of concern to them

Employees■

We conduct regular employee engagement surveys to understand how we can continuously
improve employee satisfaction■

Our employees have regular opportunities to discuss their career aspirations through performanceassessments■

Our Codes of Conduct are developed in collaboration with our employees, and concerns about
violations can be shared with management anonymously through our Reporting Concerns
Mechanism■In our international tobacco business, our people celebrate their sustainability initiatives and share
new ideas through our annual Sustainability Awards

Suppliers■

All of our suppliers are required to comply with our JT Group Supplier Standards and we select our
suppliers not only based on quality, service, and cost, but also on their compliance with ESG related
standards such as ensuring the health and safety of their employees. This is re ected in our JT
Group Responsible Procurement Policy■

In our tobacco business, we support our growers through our Agricultural Labor Practices, whichallows us and our suppliers to identify potential labor challenges on tobacco farms and help
improve growers’ labor practices■

For our non-tobacco materials, we develop strong partnerships with our key suppliers in order toachieve mutual long-term successTrade associations■

We engage with trade associations by participating in working groups and policy commissions inorder to achieve a better business environment not only for us but also for other member
companies

Communities■

We support the development of inclusive and sustainable societies by voluntarily engaging withcharitable organizations in the communities where we operate■

We provide post-disaster support to local communities

Non-governmental, regional, and internationalorganizations■

We partner with non-governmental organizations and non-pro t organizations to deliver ourcommunity investment programs■

We partner with organizations supporting the communities where we buy tobacco leaves

Governments and regulators■

We engage in open and transparent dialogues with governments and regulators regarding
regulations affecting our business and society■

While engaging with regulators, we strictly comply with our anti-bribery policy which is embedded in
our Codes of Conduct■

We will enhance our cooperation with governments to combat illegal trade

Our partners, memberships, and registrations
We collaborate with a number of organizations to increase the impact of our initiatives and bene tsociety and business, globally.

Across our Group
Business for Social Responsibility (BSR)
BSR is a global non-pro t organization that works with its network of companies and partners to build ajust and sustainable world. We have been a member of BSR since 2015, and have a multi-year
partnership to implement Human Rights Impact Assessments. We have also been a member of BSR’s
Human Rights Working Groupsince 2018, which provides us with opportunities to learn and sharehuman rights best practices with a cross-sector group of companies.

Eliminating Child Labor in Tobacco-growing (ECLT) Foundation
The JT Group is a member of the ECLT Foundation, a non-pro t organization that works towards
eliminating the worst forms of child labor and forced labor from tobacco farming and tobacco
production.

International Integrated Reporting Council (IIRC)

The IIRC is a global non-pro t organization with the aim of advancing the evolution of corporate
reporting. We reference the requirements of the IIRC for the development of our integrated reporting.
We are also a member of the IR business network, the IIRC global agship program, which enables
organizations to improve the quality of their integrated reporting. We joined in 2019.

London Benchmarking Group (LBG)
The LBG is a network that provides a global standard in measuring and managing corporate community
investment. The JT Group community investment-related data is measured according to the LBG
framework, and has been reported on a Group level since 2015.

In our Japanese operations
Council for Better Corporate Citizenship (CBCC)
The CBCC was established in 1989 with the support of Keidanren (the Japan Business Federation). It
promotes and supports Japanese companies’ Corporate Social Responsibility (CSR) activities.

Declaration of Biodiversity by Keidanren
Keidanren (the Japan Business Federation) revised the Declaration of Biodiversity in 2018. JT agreewith the purpose of this policy. Our approach and programs on biodiversity are showcased in thebookletof the Declaration of Biodiversity by Keidanren.

The Japan Frozen Food Association (JFFA)The main members of this association are Japanese companies, including our Group company,
TableMark. These companies produce frozen foods, and strive for a stable food supply and an effective
use of food resources.

Keidanren
Keidanren (the Japan Business Federation) is an economic organization. Its members include 1,412
Japanese companies, 109 national industrial associations, and 47 local economic organizations (as ofApril 1, 2019).

The Tobacco Institute of Japan (TIOJ)The TIOJ is a Japanese tobacco industry association, addressing social issues on tobacco products inJapan.

Youth smoking prevention councils
We are a part of various youth smoking prevention councils nationwide, together with local government
and police representatives, as well as the local tobacco retailers association.

In our international operations
Business Action to Stop Counterfeiting and Piracy (BASCAP)
The aim of the International Chamber of Commerce’s BASCAP is to raise awareness of the economic
and social harm of counterfeiting and piracy.

BusinessEurope
BusinessEurope is a leading advocate for growth and competitiveness in Europe, standing up forcompanies across the continent. We are involved in various working groups.

The CEB Compliance & Ethics Leadership Council (CELC)

The CELC is a leading provider of best practice research, executive education, and decision-support
services to Chief Compliance O cers.

The European Cigar Manufacturers Association (ECMA)The ECMA represents the major cigar manufacturers in Belgium, Denmark, Germany, Hungary, Italy,
Luxembourg, The Netherlands, Spain (including the Canary Islands), and Switzerland. Together, the
ECMA members account for over 90% of the cigars produced in and exported from the EU.

The EU Transparency Register
The Transparency Register is operated by the European Parliament and European Commission, and has
been set up to answer questions such as which interests are being pursued, by whom, and with whatbudgets. Since 2011, JTI has been a registrant of the EU Transparency Register, setting out our elds ofinterest and costs related to engagement activities within the EU decision-making process.

Farm Labor Practices Group
This multi-stakeholder organization focuses on improving conditions for farm workers in the U.S. The
aim of our membership is to improve legislation and bring higher standards of protection to farmworkers.

The Global Tobacco and Nicotine Forum (GTNF)
Through this global platform, we exchange views and ideas about tobacco, nicotine, and public healthamong public health experts, government representatives, investors and members of the tobacco andnicotine industries.

International Chamber of Commerce (ICC)

The ICC is the world’s largest business organization, representing more than 45 million companies inover 100 countries. We sit on three of ICC’s policy commissions: Intellectual Property, Marketing andAdvisory, and Trade and Investment.

Law enforcement agencies
We work with law enforcement agencies worldwide to combat the illicit trade of tobacco products,
sharing information and evidence that leads to seizures and prosecutions, and providing illegal tobaccoawareness programs.

Sustainable Tobacco Program (STP)
This industry-wide platform enables businesses to collaborate on human rights, environmental issues,and other sustainability challenges, and to drive sustainable agriculture through a continuous
improvement process. We are an active member and chair of the STP’s steering committee. Read more
about how we are building sustainable supply chains.

Tobacco Europe
Tobacco Europe focuses on building relationships with policymakers in an open and transparent
manner.

TRACE
TRACE is a globally recognized anti-bribery business association and a leading provider of risk
management solutions.

The Institute of Business Ethics (IBE)The IBE was established in 1986 to promote high standards of business behavior based on ethicalvalues.

GRI Community Membership
The GRI is an independent international organization that has pioneered sustainability reporting. We
reference the principles of the GRI standards for the development of our sustainability online contents.
JTI joined the GRI Community in 2020.

Related links
Our sustainability
strategy

CEO message

The 4S model,
Materiality,
Sustainability
strategy, SDGs

Stakeholder
engagement

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