Global Reporting Initiative (GRI)
Index
We have compiled our FY2021 on-line sustainability content with reference to the principles of the
Global Reporting Initiative (GRI) Index Sustainability Reporting Standards. We defined the content of
this document using a materiality assessment that covered the entire JT Group.
The Index below includes the location of and additional information pertaining to the Universal
Standard Disclosures and the Specific Standard Disclosures. Further information on the calculation
methodology and scoping is available in our Basis of Reporting, notably for data related toCompliance, Human Resources (HR), Workplace Health and Safety, Environment, as well as ourtobacco business sustainability strategy performance data. Some of our data has beenexternally verified.
In addition, our Integrated Report is compiled to align with the International Integrated Reporting
Framework by Integrated Reporting Framework Council (IIRC). Our reporting also takes in to accountthe principles and standards of Sustainability Accounting Standards Board (SASB). See the end of
the page for our disclosure in relation to SASB.

Table of contents

Universal Standard Disclosures■

Organizational Profile■

Strategy■

Ethics and Integrity■

Governance■

Stakeholder Engagement■

Reporting Practice

Topic-specific Standard Disclosures■

Economic Performance■Market Presence■

Indirect Economic Impacts■

Procurement Practices■

Anti-Corruption■

Anti-Competitive Behavior

■

Tax

■

Energy■Water and Effluents■

Biodiversity■

Emissions

■

Waste

■

Environmental Compliance■

Supplier Environmental Assessment■

Employment■

Labor/Management Relations■

Occupational Health and Safety■

Training and Education■

Diversity and Equal Opportunity■

Non-discrimination■

Freedom of Association and Collective■Child Labor

Bargaining■

Forced or Compulsory Labor■

Human Rights Assessment■

Local Communities■

Supplier Social Assessment■

Public Policy■

Customer Health and Safety■

Marketing and Labeling■Socioeconomic Compliance

SASB Standard - Tobacco■Public Health■

Universal Standard Disclosures

Organizational Profile

Marketing Practices

GRI indicator

Disclosure

102-1
Name ofJapan Tobacco Inc.

organization

Corporate profile
The regulatory approach to the Reduced-Risk Products* category varies greatly from country
to country. Depending on the jurisdiction and product characteristics, there may be norestrictions, outright bans, or any number of regulatory variants.
There are countries in which:
102-2
Activities,>sales of E-Vapor and/or T-Vapor are banned completely;brands, products,>E-Vapor without nicotine is permitted, but E-Vapor with nicotine is effectively banned as aand services

pharmaceutical license is required (e.g. Japan); or>the cigarette regulations also apply to T-Vapor.

* Reduced-Risk Products (RRP) are those with the potential to reduce therisks associated with smoking.

102-3
Location of

About our reporting

headquarters

102-4
Location of

Corporate profile

operation

102-5

Integrated Report FY2021:

Ownership and>History of the JT Group p.20-21

legal form

>Shareholder information p.1128-129

1. Geographic locations where products and services are offered:Corporate profile
2. Sectors served:
102-6

Corporate profile

Markets served
3. Types of customers and beneficiaries:
Our tobacco business value chain
Our pharmaceutical business value chain
Our processed food business value chain

GRI indicator

Disclosure

1. Total number of employees:
Integrated Report FY2021:
Fact sheet(supplementary document)
2. Total number of operations:
March 23, 2022
Annual Securities Report>Consolidated financial statements
102-7

3. Net sales (for private sector organizations) or net revenues (for public sector

Scale oforganizations):

organization

Integrated Report FY2021>Key performance indicator p.14-15
4. Total capitalization (for private sector organizations) broken down in terms of debt andequity:Integrated Report FY2021:
Fact sheet(financial data)
5. Quantity of products or services provided Integrated Report FY2021:>Business Review p.26-67

102-8

Corporate profile

Information on

Basis of Reporting

employees andother workers

EMPLOYEES BY TYPE OF CONTRACT AND
GENDER AS OF THE END OF 2021

GRI indicator

Disclosure

TYPE OF CONTRACT

Permanent (full- and

MALE

FEMAL
E

TOTAL

35,254

12,846

48,100Temporary full-time

3,438

1,339

4,777

Temporary part-time *C

n/a

n/a

5,769

Temporary part-time *E

8

17

25

Supervised workers *C

n/a

n/a

1,384

part-time)

THE NUMBER OFEMPLOYEESCOUNTRY

Japan

TOTAL
MALE

FEMALE

13,3195,191

18,51025,373

8,994

34,367

Total of all othercountries (excluding
Japan)

The above data excludes temporary part-time and supervised workers.

102-9

Description of the organization’s supply chain, including its main elements as they relate toSupply chain

the organization’s activities, primary brands, products, and services.
Corporate profile – Our businesses
Our tobacco business value chain
Building sustainable supply chains

GRI indicator

Disclosure
Our pharmaceutical business value chain
Our processed food business value chain

1. Changes in the location of, or changes in, operations, including facility openings, closings,
and expansions:
About our reporting
JT Inc., head office relocation
2. Changes in the share capital structure and other capital formation, maintenance, andalteration operations (for private sector organizations):
102-10Significant
changes to theorganization andits supply chain

About our reporting
Integrated Report FY2021:
Shareholder information p.128-129
3. Changes in the location of suppliers, the structure of the supply chain, or relationships
with suppliers, including selection and termination.
Corporate profile(for countries in which we directly source tobacco leaf)
Our tobacco business
Building sustainable supply chains
Exceeding expectations with products and services(Reduced-Risk Products supply chain)
Our pharmaceutical business value chain
Our processed food business value chain

102-11
Precautionary
principle orapproach

Whether and how the organization applies to the precautionary principle or approach.
Materiality
Risk management102-12A list of externally developed economic, environmental and social charters, principles, orExternal

other initiatives to which the organization subscribes, or endorses.

initiatives

Stakeholder engagement102-13A list of the main memberships of industry or other associations, and national orMembership ofinternational advocacy organizations.

associations

Stakeholder engagement

Strategy
Ethics and Integrity

GRI indicator

Disclosure102-16
Values,principles,

Our sustainability strategy

standards, andGroup compliancenorms ofbehavior

102-17
Mechanisms foradvice andOur Codes of Conduct

concerns about
ethicsGovernance

GRI indicator

Disclosure

A statement from the most senior decision-maker of the organization (such as CEO, chair, or
102-14
Statement fromsenior decisionmakerequivalent senior position) about the relevance of sustainability to the organization and its
strategy for addressing sustainability.
CEO message:
Integrated Report FY2021>p.3
CSO Message

Integrated Report FY2021:>Value creation story p.22-25>Investing in people p.68-71、>Our material issues sustainabiity strategy, focus areas of each business and KPIs p.30-33>Risk factors p.80-83
102-15Key impacts,
risks, andopportunities>Non-financial key performance p.16-17>Thee absolute requirements (Respecting human rights, improving our social andenvironmental impact) p.73-79>Awards and recognition p.126-127>Our sustainability strategy (materiality, sustainability strategy, sustainable development
goals
Tobacco business sustainability strategy targets
Pharmaceutical business sustainability strategy targets
Processed food business sustainability strategy targets)

1 Governance structure of the organization, including committees of the highest governancebody.
2 Committees responsible for decision-making on economic, environmental, and social
102-18

topics.

Governancestructure

Integrated Report FY2021:>Good governance and business standards p.88-111
Corporate GovernanceCompliance102-19Delegating
authority

Process for delegating authority for economic, environmental, and social topics from thehighest governance body to senior executives and other employees.
Integrated Report FY2021:>Good governance and business standards p.88-111

102-201 Whether the organization has appointed an executive-level position or positions with

Executive-level

responsibility for economic, environmental, and social topics.

responsibility foreconomic,

2 Whether post holders report directly to the highest governance body.

GRI indicator

Disclosure

environmental,

Integrated Report FY2021:

and social topics>Good governance and business standards p.88-111
JTI Executive Committee:
https://www.jti.com/about-us/our-business/our-leadership

1 Processes for consultation between stakeholders and the highest governance body on
economic, environmental, and social topics.
2 If consultation is delegated, describe to whom it is delegated and how the resulting
feedback is provided to the highest governance body.
JT Group Materiality
Stakeholder engagement102-21

Our initiatives for stakeholder engagement are described in the Sustainability section of our

Consulting

global website. For example, our engagement with:stakeholders on› our suppliers such as directly contracted growers, third-party suppliers of tobacco leaf or

economic,other suppliers as well as government agencies, NGOs and industry organizations (seeenvironmental,

Building sustainable supply chains);

and social topics› our consumers or retailers (see Exceeding expectations with products and services);› law enforcement partners in tackling illegal trade (see Tackling the Illegal trade );› local communities (see Improving our social impact);› our employees (see Our people, or The JT Group health and safety);› our Human Rights External Advisory Board and other partners (seeRespecting human rights).
Integrated Report FY2021:>CFO message p.34-37

102-22Composition of the highest governance body and its committees by:Composition of

1 Executive or non-executive

the highest
governance body

2 Independence

and its
committees

3 Tenure on the governance body
4 Number of each individual’s other significant positions and commitments, and
5 The nature of the commitments
6 Gender
7 Membership of under-represented social groups
8 Competencies relating to economic, environmental, and social topics
9 Stakeholder representation

GRI indicator

Disclosure
Integrated Report FY2021:>Good governance and business standards p.88-111

Stakeholder Engagement

GRI indicator

Disclosure

Stakeholder engagement
Integrated Report FY2021:
102-40>CFO message p.34-37

List ofstakeholder

Our initiatives for stakeholder engagement are described throughout the sustainability

groupscontent. See explanation for 102-21 for more details.
JT Corporate Governance Policy
https://www.jt.com/about/corporate_governance/governance_policy/index.html

Basis of Reporting
102-41

A total of 65 companies have a union in our Group, and 99.6% of eligible employees (only inCollective

JT and Japanese domestic group companies) are covered by collective bargaining

bargaining

agreements. Due to legal requirements in certain countries, we can’t know whether

agreements

employees are unionized, and thus cannot provide the information regarding employees in
our international tobacco business.

The basis for identifying and selecting stakeholders with whom to engage.
Stakeholder engagement102-42
Identifying andselectingstakeholders

Integrated Report FY2021:>CFO message p.34-37
Our initiatives for stakeholder engagement are described throughout the sustainability
content. See explanation for 102-21 for more details.
JT Corporate Governance Policy
https://www.jt.com/about/corporate_governance/governance_policy/index.html

The organization’s approach to stakeholder engagement, including frequency of engagementby type and by stakeholder group, and an indication of whether any of the engagement was
102-43undertaken specifically as part of the report preparation process.

Approach to
stakeholder

Stakeholder engagement

engagement
JT Corporate Governance Policy
https://www.jt.com/about/corporate_governance/governance_policy/index.html

102-44The organization’s approach to stakeholder engagement, including frequency of engagement

Key topics andby type and by stakeholder group, and an indication of whether any of the engagement wasconcerns raised

undertaken specifically as part of the report preparation process.
Stakeholder engagement

GRI indicator

Disclosure
Integrated Report FY2021:>Value creation p.18-25>Sustainability: Strategy p.30-33, Absolute requirements for sustainability p.73-79

Reporting PracticeGRI indicator

Disclosure102-45
Entities includedin theJT Annual Securities Report FY2021:

consolidated

https://www.jti.co.jp/investors/others/12g3_2/index.html

financialstatements

1 An explanation of the process for defining the report content and the topic boundaries.
102-462 An explanation of how the organization has implemented the Reporting Principles for

Defining report

defining report content.

content andtopic boundaries

JT Group Materiality
Our sustainability strategy
Scope of data and information presented

102-47
List of material
topics

A list of the material topics identified in the process for defining report content.
JT Group Materiality

102-48JT Group health and safety > Our health and safety performance as a Group

Restatement ofRecordable Injury Rate (per 200,000 working hours) in 2020 has been restated from 0.30 to

information

0.29 due to the recalculation.

Significant changes from previous reporting periods in the list of material topics and topic
102-49boundaries.

Changes inreporting

Not applicable
Materiality

102-50
Reporting period

102-51
Date of mostrecent report102-52
Reporting cycle

About our reportingGRI indicator

Disclosure102-53
Contact point forquestionsregarding thereport102-54Claims ofreporting inaccordance with
the GRI
Standards

102-55
GRI content

GRI Index

index

102-56External
assurance

About our reporting
External verification

Topic-specific Standards Disclosures

Economic Performance

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

Tax practiceIntegrated Report FY2021:

103-3
Management>Message from the CEO p.6-11>Financial review p.112-123

approach:
Evaluation of the
management
approach201-1

Tax practiceDirect economic
value generated

Integrated Report FY2021:

and distributed>Message from the CEO p.6-11>Financial review p.112-123>Improving our social impact p.75

GRI indicator

Disclosure

DIRECT ECONOMIC VALUE GENERATEDAND DISTRIBUTED

2021 (MILLION YEN)

Revenue*

2,324,838

Total employee benefits and wages

501,536

Current income taxes

127,999

Tobacco excise taxes

5,400,405

Dividends

251,961

Community investment

5,486* Excluding tobacco excise taxes and revenue from agent transactions.

Market PresenceGRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
This is our standard operating procedure.
103-3
Management
approach:
Evaluation of the
management
approach

202-1
Ratios ofstandard entrylevel wage by
gendercompared to
local minimum
wage atsignificant
locations ofoperation

Basis of ReportingGRI indicator

Disclosure

SIGNIFICANTRATIO OF STANDARD ENTRY-LEVEL WAGE TO

OPERATIONSLOCAL MINIMUM WAGE

Male

155.9%

Female155.9%

Male

217.6%

Female217.6%

Male

139.2%

Female139.2%

Male

138.8%

Female138.8%JT Tokyo HQ

JTI Moscow

JTI Trier

JTI UK

Indirect Economic Impacts

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
Building sustainable supply chains
103-3
Management
approach:
Evaluation of the
management
approach203-1
Development
and impact of
infrastructure
investments andservices

As part of our Global Leaf CAPEX projects, we invested 19.52 million U.S. dollars ininfrastructure-related projects in Brazil, Malawi, Tanzania, U.S., and Zambia. In addition, weinvested 0.9 million U.S. dollars in infrastructure-related projects in Brazil, Malawi, Tanzania
and Zambia, as part of our Grower Support Programs.

supported

203-2
Significant
indirect
economic

Building sustainable supply chains

impacts,

Tackling illegal trade

including theextent ofimpacts

Procurement Practices

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management

Tobaccoapproach and its
components

103-3
Management
approach:

Pharmaceuticals

Evaluation of theProcessed foodmanagement
approach204-1

We define local as the country of operation.

Proportion of

Significant location is defined as any location with more than 5% of global spend.

spending on
local suppliers

GRI indicator

Disclosure

SIGNIFICANT% OF LOCALSUPPLIER TYPE

SPEND IN

LOCATIONS

Japan

Geneva HQ

Germany

Philippines

RussiaTaiwan2021

Tobacco leaf and non-tobacco
material suppliers

Non-tobacco materials and otherproducts and services suppliers

Non-tobacco materials and otherproducts and services suppliers

Non-tobacco materials and otherproducts and services suppliers

Non-tobacco materials and otherproducts and services suppliers

Non-tobacco materials and otherproducts and services suppliers

67

45

72

52

32

47

The percentage of local suppliers of bulk drug substances to our pharmaceutical business is
0%. The percentage of local spend for Tier 1 suppliers of TableMark on its raw material
sourcing is 100%.

Anti-corruption

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of
the material
topic and its

JT Group Materiality
Integrated Report FY2021:>Good governance and business standards p.88-111

boundary

103-2
Management
approach: The
management
approach and its

Integrated Report FY2021:

components>Good governance and business standards p.88-111
JT Group Anti-Bribery Policy

103-3Management

Anti-bribery and corruption

approach:
Evaluation of the
management
approach

205-2
Communicationand training on
anti-corruption

Anti-bribery and corruption

policies andprocedures

Anti-competitive Behavior

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of
the material
topic and its

JT Group Materiality
Integrated Report FY2021:>Good governance and business standards p.88-111

boundary

103-2
Management

JT Group Materiality

approach: The
management

Integrated Report FY2021:

approach and its>Good governance and business standards p.88-111

components

103-3
Management

Anti-competitive behavior

approach:
Evaluation of theIntegrated Report FY2021:

management>Good governance and business standards p.88-111

approach

206-1
Total number oflegal actions foranti-competitive
behavior, antitrust, andmonopolypractices andtheir outcomes

Tax

March 23, 2022
Annual Securities Report
Consolidated Financial Statements, Notes to Consolidated Financial Statements,
Contingencies

GRI indicator

207-1
Approach to tax

Disclosure

Tax practices

207-2
Tax governance,
control, and risk
management

207-3
Stakeholder
engagement andmanagement ofconcerns related
to taxEnergyJT Group Tax Policy

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management

Environment and our operations > Energy and emissions and climate change

approach:
Evaluation of theBasis of Reporting

management
approach

302-1
Energyconsumption
within theorganization

Water and Effluents

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management
approach:
Evaluation of the
management
approach

Environment and our operations > Natural Resources > Water
Basis of Reporting303-1
Interactions withwater as ashared resource

303-2
Management ofwater dischargerelated impacts

303-3
Water withdrawal
Environmental data / External verification
303-4
Water discharge

Biodiversity

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3

Environment and our operations
We approach biodiversity as a topic integrated into our responsible business operations.

Management
approach:
Evaluation of the
management
approach

Environment and our operations
Impacts on biodiversity can be observed directly or indirectly through activities such as:304-2
Significant
impacts ofactivities,
products, andservices on
biodiversity>Crop production/land management e.g. promotion and adoption of good agricultural
practices; land/soil use and conservation practices; the use and management of agricultural
inputs such as crop protection agents and fertilizers, and the use and management of water
resources>Wood use and forestry management e.g. tree planting, natural regeneration, avoided
deforestation and forest remediation; and the use of wood for tobacco curing, domestic
consumption, and construction materials for curing barns and other buildings>The building of new, or expansion of, buying stations, processing facilities, offices etc.

Emissions

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management
approach:
Evaluation of the
management
approach

305-1
Direct GHG

Environment and our operations > Energy and emissions and climate change

emissions(Scope 1)

305-2
Energy indirect
GHG emissions(Scope 2)

305-3
Other indirect
GHG emissions(Scope 3)

305-5
Reduction of
GHG emissions

Basis of ReportingWasteGRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management

Environment and our operations > Waste

approach:

Environment and our products

Evaluation of theBasis of Reporting

management
approach306-2
Total weight ofwaste by typeand disposal
methodEnvironmental ComplianceGRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
The JT Group Environment Policy
103-3Management
approach:
Evaluation of the
management
approach

307-1
Monetary valueof significant
fines and total
number of nonmonetary

During 2021, there were no significant monetary fines or non-monetary sanctions for non-sanctions forcompliance with environmental laws and regulations.

non-compliancewithenvironmental
laws andregulations

Supplier Environmental Assessment

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management
approach:
Evaluation of the
management
approach

308-1

Building sustainable supply chains

Percentage of
new suppliers
that werescreened using
environmental
criteria

308-2
Significant actualand potential
negativeenvironmental
impacts in the
supply chain andactions taken

Employment

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
Talent attraction
103-3
Management
approach:
Evaluation of the
management
approach

401-1

Basis of Reporting

Total number
and rates of new
employee hires
and employee
turnover by age

NEW EMPLOYEES’ HIRE AND TURNOVER

group, gender,and region
BY GENDER

MALE

FEMALE

TOTAL

Total number of new employees

4,845

1,778

6,623

New employee hire rate

12.5%

12.5%

12.5%

Total employee turnover

3,469

1,759

5,228

Employee turnover rate

9.0%

12.4%

9.9%

BY AGE

Total number of new

> 30

30–
50

TOT

> 50

AL

2,19

3,76

0

2

New employee hire rate

32.2

13.2

(only in JT and JTI)

%

%

1,12

2,80

1,29

5,22

1

8

9

8

14.0

10.2

%

%

employees (only in JT and
JTI)

Total employee turnover*

Employee turnover rate*

13.8
%

8.3%

152

2.5%

6,10
4

14.7
%

* Some Japanese Group companies (Akros Pharma Inc. and Fuji Foods)
are excluded.The denominator of the "employee turnover rate bygender" and "employee turnover rate by age" are different.

401-2

Basis of Reporting

Benefits provided
to full-time

At the end of 2021, significant locations included our JT head office in Tokyo, Japan, and our

employees thatinternational tobacco business head office in Geneva, Switzerland.

are not provided

Our international tobacco business, for instance, positions compensation levels in the 75th

to temporary or

percentile against companies with which we compete for talent.

part-time
employees, bysignificant
locations ofoperation

JT HEAD OFFICE IN TOKYOTEMPORARY
FULL-TIMEEMPLOYEES

PER

ORAR

MA
NEN
BENEFITS

T
EMP
LOY

TEMP
Y

COM

CON

PART-

MIS

TRA

TIME

SION

CT

EMPL

ED

EM

OYEE

PER

PLO

S

SON

YEE

NEL

S*

Y

Y

Y

Y

Medical leave systemYY

Parental leave

Y

Y

Y

Y

Retirement provisionY

Stock ownership

Y

EES

Bereaved family
compensation program

Regular healthexamination

Y

INTERNATIONAL TOBACCO BUSINESS HEAD
OFFICE IN GENEVAPERMANEBENEFITSTEMPORARYTEMPORARY

FULL-TIME

PART-TIMEEMPLOYEESEMPLOYEESYYY (Prorated)

Y

Y

Y

Y

Y

Y (Prorated)YY

Y (Prorated)YY

Y (Prorated)NT
EMPLOYE
ES

Life
insurance

Healthcare

Disability
and invalidity
coverage

Parental
leave

Retirement
provisionStockownershipY* Contract employees may be given benefits if they are exempt from
Company regulations.

We also provide more benefits related to generational diversity and work-life balance to ouremployees. Regarding initiatives in our Japanese operations and international tobacco
business, please see Investing in people.

Labor/Management Relations

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
We comply fully within the framework of local law in our places of operation.
103-3
Management
approach:
Evaluation of the
management
approach402-1

About our reporting

Minimum notice
periods

Basis of Reporting

regardingoperationalchanges,
including

MINIMUMwhether these

NUMBER OF

NOTICEare specified in

MONTHSPERIOD FOR

collective

between the

CONSULTATI

agreements

MINIMUM
NOTICEPERIODS
regardingoperationalchangesannounceme
nt and thetime the first
employeeleaves thefactory

NUMBER OF
MONTHS
between the

ON AND
NEGOTIATIO
N:

announceme
nt and thefinal closure

Is thisminimum
notice period

because of

specified in

the closure

collective
agreements?

NA

NA

NA

NA

GRI indicator

Disclosure
In 2019, our international tobacco business refined the organizational structure and globally
3,720 employees will be affected by the organizational change over the next three years.
However, during the same period 1,300 new positions will be created. Each employee wasnotified of the change in accordance with local labor laws.

Occupational Health and Safety

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management

The JT Group health and safety

approach and its
components

103-3
Management
approach:
Evaluation of the

The JT Group health and safety

management
approach403-1
Occupational
health and safety
management
system403-2
Hazardidentification,risk assessment,
and incident
investigation

403-4
Workerparticipation,
consultation, andcommunication
on occupational
health and safety

The JT Group health and safety

GRI indicator

Disclosure

403-5
Worker training
on occupational

The JT Group health and safety

health and safety

403-6
Promotion of

The JT Group health and safety

worker health

Description of our approach to preventing and mitigating significant occupational health andsafety impacts that are directly linked to business.
Health and safety on the farm is essential to our business. Our Leaf Production Technicians
403-7

work closely with our directly contracted growers to improve health and safety. We do soPrevention andthrough our Agricultural Labor Practices (ALP) program. We apply the same standards when

mitigation ofworking with our leaf merchants.

occupational
health and safety

Exposure to hazardous substances and green tobacco sickness pose a particular risk to

impacts directly

tobacco farming, so we take steps to prevent this through our ALP program. We also follow

linked byindustry best practices set by CORESTA:

business

No.17 – Sustainability in Leaf Tobacco Production

relationships

No. 19 - Responsible Use of Crop Protection Agents (CPAs) in Tobacco Leaf Production,

andNo. 27 - Identification and Elimination of Highly Hazardous Pesticides (HHPs) in Leaf
Tobacco Production

403-8
Workers coveredby anoccupational
health and safety

Our occupational health and safety management system covers employees, supervised
workers, and third-party contractors.

management
system403-9

The JT Group health and safety

Injury rate (IR),We don’t disclose breakdown of health and safety data by gender as we do not have aoccupationalsignificant difference in results between men and women in the workforce.

disease rate
(ODR), lost day
rate (LDR),
absentee rate(AR), andfatalities by

In our Japanese operations, the absenteeism in 2021 was reported as 0.74.

GRI indicator

Disclosure

region and bygender403-10Work-related ill

The JT Group health and safety

healthTraining and Education

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
Talent development
103-3
Management
approach:
Evaluation of the
management
approach

404-2
Programs forskillsmanagement
and lifelong

Talent development

learning that
support the

Average hours per employee of training and development: 158.0 hours (*D)

continued
employability of

Average amounts spent per FTE on training and development: 48,604 Yen (*D)

employees andassist them inmanaging career
endings

404-3
Percentage of
employees
receiving regularperformance andcareerdevelopment
reviews, bygender and by

PERCENTAGE OF EMPLOYEES RECEIVINGREGULAR PERFORMANCE AND CAREERDEVELOPMENT REVIEWSGRI indicator

Disclosure

employee
category

BY GENDER

Male

2020

77.5%

BY EMPLOYEECATEGORY *D

Executive
Officers

2020

100%

Management
Female68.5%(excluding
Executive

97.2%

Officers)

Employees(excluding

62.1%

management)

We have reported on the 2020 performance appraisal data because the information for 2021
is currently being analyzed. Employees who did the appraisal on paper are excluded in thescope as we cannot track their data by our HR system.

Diversity and Equal Opportunity
Our workforce is diverse comprising of employees from over 100 countries, ranging from Japan,
Philippines, Russia, EU countries, UK or Brazil, to name but a few. Percentage of employees withdisabilities for FY2021 was 3.20% for JT.

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management

Diversity and inclusion

approach and its
components

103-3
Management
approach:
Evaluation of theDiversity and inclusion

management
approach405-1
Composition of
governancebodies andbreakdown of
employees per
employee

BREAKDOWN OF EMPLOYEES BY GENDER AND
AGE GROUP (Except Executive Officers)

category
according togender, age

AGE GROUP

group, minority

MALE

FEMALE

TOTAL

group
membership, andother indicators

Under 30

5,368

2,770

8,138

30–50

25,1908,637

33,827

Over 50

7,290

1,956

9,246

of diversity

Akros Pharma Inc. and Fuji Foods are excluded from the data by age group.

GRI indicator

Disclosure

EMPLOYEES BY POSITION AND GENDER AT THE
END OF 2021

POSITIONS

Executive Officer

Management (excluding
Executive Officers) *MALE

FEMALE

TOTAL

95.7%

4.3%

70

83.8%

16.2%

3,391

72.4%

27.6%

49,416

Employees (excluding
Executive Officers andManagement)* Management is defined as persons in positions of supervision or
management according to national legislation in Japan and in ourinternational tobacco business, the Vice President and Director-level
employees are categorized as Management.

EXECUTIVE OFFICERS BY POSITION AND GENDER
AT THE END OF 2021

AGE GROUP

MALE

FEMALETOTAL

Under 30

0

0

0

30–50

5

2

7

Over 50

62

163

GRI indicator

DisclosureThis data does not include 3 executives in our Japanese domestic Group companies, as we
do not ask employees their age.

Basis of Reporting

SIGNIFICANTEMPLOYEEOPERATIONSCATEGORYRATIO OF ANNUAL BASE
SALARY OF WOMEN TO
MEN

Vice President

88.6%

Director

96.6%

Manager

94.5%

Associate112.3%

Executive Officer

86.4%

Management

91.3%

Employee

95.6%

Director

104.9%

Manager

96.6%

Associate

87.7%

JTI Geneva HQ
405-2
Ratio of basic
salary andremuneration of
women to men
by employee
category, by
significant
locations ofoperation

JT Tokyo HQ

JTI UKNon-discrimination
GRI indicator

103-3
Management
approach:
Evaluation of the
management
approach

Disclosure

Integrated Report FY2021:>Good governance and business standards p.88-111
Our Codes of Conduct
Diversity and inclusion
Basis of Reporting

Our Codes of Conduct406-1
Total number ofDiversity and inclusion

incidents of
discrimination

Basis of Reportingand corrective
actions taken

In 2021, 10 alleged cases of workplace discrimination were reported. None of the reported
cases were proven as a violation of our Codes of Conduct.

Freedom of Association and Collective Bargaining

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its

Agricultural Labor Practices booklet:
https://www.jti.com/sites/default/files/global-files/documents/relateddocuments/jti_ALP_booklet2017_view_doublepage.pdf

components

103-3
Management
approach:
Evaluation of the

Building sustainable supply chainsmanagement
approach407-1
Operations andsuppliers inwhich the right tofreedom of
association andcollective
bargaining may
be at riskChild Labor

Agricultural Labor Practices and Leaf Supply Chain Due Diligence
The right to exercise freedom of association and collective bargaining is at significant risk ina number of countries where we directly or indirectly source tobacco leaf. We assess andmitigate those risks through our Leaf Supply Chain Due Diligence, which includes ourAgricultural Labor Practices program.

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management
approach:
Evaluation of the
management

Building sustainable supply chains
Agricultural Labor Practices and leaf supply chain due diligence
JTI website:https://www.jti.com/news-views/principles-practice
ARISE website: http://ariseprogram.org/en
Agricultural Labor Practices booklet:
https://www.jti.com/sites/default/files/global-files/documents/relateddocuments/jti_ALP_booklet2017_view_doublepage.pdf

approach

Building sustainable supply chains
Agricultural Labor Practices and leaf supply chain due diligence

408-1
Operations andsuppliers at
significant risk
for incidents ofchild labor

JTI website:https://www.jti.com/news-views/principles-practice
ARISE website: http://ariseprogram.org/en
Operations and suppliers having significant risk for incidents of child labor have been
identified in a number of countries where we directly or indirectly source tobacco leaf. We
assess and mitigate those risks through our Leaf Supply Chain Due Diligence, which includes
the Agricultural Labor Practices program, the ARISE program − Achieving Reduction of Child
Labor in Support of Education, the Grower Support Programs and Good Agricultural
Practices, as well as communication and training, and the Eliminating Child Labor in
Tobacco-Growing (ECLT) Foundation.

Forced or Compulsory LaborGRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management
approach:
Evaluation of the

Building sustainable supply chains
JTI website:
https://www.jti.com/our-views/arise-ending-child-labor-through-education-and-opportunity

Agricultural Labor Practices booklet:
https://www.jti.com/sites/default/files/global-files/documents/relateddocuments/jti_ALP_booklet2017_view_doublepage.pdf

management
approach409-1
Suppliers
identified ashavingsignificant risk
for incidents offorced or

Supplier Screening

compulsory
labor, andRespecting human rights

measures tocontribute to theelimination of all
forms of forced
or compulsory
labor

Human Rights Assessment

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
Respecting human rights
103-3
Management
approach:
Evaluation of the
management
approach

412-1
Total number

We have implemented human rights due diligence in Japan since 2016, which covered ourand percentage

Japanese domestic tobacco, pharmaceutical and processed food businesses. Theseof operations

businesses in total represent 38% of our Group’s consolidated revenue.

that have been
subject to humanSince 2018, we have also conducted human rights assessments in ten high-risk markets inrights reviews or

our international tobacco business. A further 17 high risk markets were subject to a humanimpactrights self-assessment questionnaire.

assessments

412-2
Employeetraining on
human rights

Respecting human rights

policies orprocedures

412-3

In 2018, we implemented a formal process for 100% of all significant investment

Total number

agreements and new acquisitions covering human rights, by updating our Businessand percentage

Development Risk Assessment Protocol to include pre-acquisition human rights screening.

of significant
investment

GRI indicator
agreements andcontracts that
include humanrights clauses orthat underwent
human rights
screening

Local Communities

Disclosure

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components
Improving our social impact
103-3
Management
approach:
Evaluation of the
management
approach

413-1
Percentage of
operations with

Basis of Reporting

implemented
local community

Community investment programs:

engagement,

We have corporate community investment programs implemented in 85% of the countries

impactwhere we operate. There are 60 countries in which we have community investment

assessments,

programs.

and development
programs

Supplier Social Assessment

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

103-3
Management
approach:
Evaluation of the
management
approach

414-1

Building sustainable supply chains

Percentage of
new suppliers
that werescreened usingsocial criteria (orprovide astatement
describing futureplans)

414-2
Negative social
impacts in the
supply chain andactions taken)

Public Policy

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management

Optimizing the regulatory environment

approach and its
components

103-3
Management
approach:
Evaluation of the

Optimizing the regulatory environment

management
approach

415-1
Total value of

In compliance with Political Funds Control Laws in Japan, JT refrains from making politicalpolitical

contributions. None of JT’s subsidiaries made political contributions in any jurisdiction incontributions by

2021, except a non-tobacco subsidiary in Japan, which made a political contribution thatcountry andamounted to low-single-digit million Yen, at its own discretion, in compliance with all relevant

recipient/benefic

Japanese laws.

iary

Customer Health and Safety

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its
components

Exceeding expectations with products and services
Pharmaceuticals

103-3

Processed foodManagement
approach:
Evaluation of the
management
approach

416-1
Percentage ofsignificant
product andservice
categories forwhich health andsafety impacts
are assessed for

Exceeding expectations with products and services
Pharmaceuticals
Processed food
Health and safety impacts in our tobacco business, pharmaceutical business, and processedfood business are fully (100%) assessed for improvement, with the exception of some of ourmost recent tobacco business acquisitions, where assessments are ongoing.

improvement

416-2

March 23, 2022

Total number ofAnnual Securities Reportincidents of non-Consolidated Financial Statements, Notes to Consolidated Financial Statements,

compliance with

Contingencies

regulations andvoluntary codes
concerning thehealth and safety
impacts ofproducts andservices during
their life cycle, by

GRI indicator
type ofoutcomes

Marketing and Labeling

Disclosure

GRI indicator

Disclosure

103-1
Management
approach:
Explanation of

JT Group Materiality

the material
topic and its
boundary

103-2
Management
approach: The
management
approach and its

TobaccoPharmaceuticals
Processed foodcomponents

103-3
Management
approach:
Evaluation of the
management

TobaccoPharmaceuticals
Processed foodapproach

417-2
Total number ofincidents of noncompliance withregulations

March 23, 2022

and/or voluntary

Annual Securities Reportcodes

Consolidated Financial Statements, Notes to Consolidated Financial Statements,

concerning

Contingencies

product andservice
information andlabeling

417-3

March 23, 2022

Total number ofAnnual Securities Reportincidents of non-Consolidated Financial Statements, Notes to Consolidated Financial Statements,

compliance with

Contingencies

regulations andvoluntary codes
concerningmarketingcommunications,
including

GRI indicator

Disclosureadvertising,promotion, andsponsorship, by
type ofoutcomes

Socioeconomic ComplianceGRI indicator

Disclosure

103-1
Management
approach:
Explanation of
the material
topic and its

JT Group Materiality
Integrated Report FY2021:>Good governance and business standards p.88-111

boundary

103-2
Management
approach: The
management
approach and its
components

Our Codes of Conduct
Integrated Report FY2021:

103-3>Good governance and business standards p.88-111

Management
approach:
Evaluation of the
management
approach

419-1
Significant finesand nonmonetary
sanctions for
non-compliancewith laws and/or
regulations in the

March 23, 2022
Annual Securities Report
Consolidated Financial Statements, Notes to Consolidated Financial Statements,
Contingencies
Annual securities reportsocial andeconomic area

SASB Standard - Tobacco

Public HealthCodeTopics & Accounting Metrics

Our reporting

2021 Full Year Earnings Report(1) Gross revenue and (2) revenue net of
FB-TB-260a.1■：

Revenue results and forecast ofheated tobacco products (Reduced-

excise taxes from (a) non-tobacco

Risk Products: RRP): p1, 12-13, 16,

nicotine products and (b) heated tobacco

31

products■：

For RRP definitions P34

JT Global Web ‘Reduced-Risk Products
FB-TB-260a.2

Discussion on the process to assess risks(RRP): Exceeding expectations withand opportunities associated withproduct and services“tobacco harm reduction” products
JT Science.com

Marketing Practices
Code

Topics & Accounting Metrics

Our reporting

GRI Standard, Topic Specific Standards,
417-3:
Total amount of monetary losses as a
FB-TB-270a.1

result of legal proceedings associated

March 23, 2022with marketing, labeling, and/or

Annual Securities Reportadvertising practices

Consolidated Financial Statements, Notes
to Consolidated Financial Statements,
Contingencies

JT Global Web:■

Our tobacco principles■

Global Tobacco Marketing

Description of the company’s marketing
policy and relevant positions on Articles
FB-TB-270a.2

11 and 13 of the World HealthPrinciples

Organization Framework Convention on
Tobacco Control (WHO FCTC)■

Our view on regualtion

FY2021 Integrated Report:
Regulation and key laws (P84-86)

CodeActivity metric

Combustible tobacco product sales
FB-TB-000.A

volume: (1) cigarette, (2) cigar, and (3)other smoked tobacco products3

Our reporting

2021 Full Year Earnings Report

p26-

31

Non-combustible product sales volume:(1) traditional smokeless tobacco, (2) nonFB-TB-000.B

tobacco nicotine products, (3) heated
tobacco products, and (4) nicotine
replacement therapy products4

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

Read more

Related links
About ourreportingGlobal Reporting
Initiative (GRI)
Index

Basis of
Reporting2021 Full Year Earnings Report
31

p26-

Copyright© Japan Tobacco Inc. All rights reserved.