Top management message
Message fromCEO

CSO Interview

Message from CEO

Masamichi Terabatake
Chief Executive Officer

CEO message can be found here
※FY2020 Integrated Report P14

CSO Interview(As of December 31, 2021)

Kazuhito Yamashita

Ari Kubota

Director and Senior Vice President

Sustainability Management Division

Chief Sustainability Officer,

Interviewer

Compliance and General Affairs(Kubota) Looking back at 2020, how would you characterize
the year?
(Yamashita) With the outbreak of COVID-19,
2020 was a year like no other. To prevent the
spread of the pandemic, we made the safetyof our employees a top priority byimplementing thorough health and safetymeasures to ensure business continuity.
While the effect of the pandemic has provento be limited for the JT Group, severe
damages were inflicted on society. We haveprovided support to our local communities
around the world in countries where we
operate. For example, in Japan, we extended emergency aid to local authorities and local groups inneed. We then organized support to sectors affected by the prolonged effect of the pandemic suchas restaurants and eateries as well as people in need, while also extending our support to essential
workers.

(Kubota) Please discuss your role as CSO and the evolution of
our organization in pursuing sustainability.
(Yamashita) It is essential to contribute to the sustainable development of our society through ourbusiness operations. Our business is underpinned by the 4S model, our management principle. As amember of the board and CSO of the company, it is my role to look to the future and to drive
sustainability management across our Group.
In 2015, we identified material issues relevant to the JT Group and to our stakeholders, to achievesustainable growth. Then, to build on our past sustainability initiatives and to evolve further, in 2019
we reshaped our organizational structure and established our sustainability management division.
In the same year, a Senior Vice President responsible for sustainability was appointed, and we setout our sustainability strategy for the whole Group.
During 2020, we regularly organized online forums, providing opportunities for the heads of ourbusiness divisions to discuss sustainability initiatives within the Group. With the start of this forum,
we set out an organizational framework to discuss Group-wide sustainability issues and extended
support to our business functions, so that they can pursue their respective sustainability strategies.
We are also set to pursue risk management, with enterprise risk management playing a pivotal part.

Sustainability Advisory Forum(Kubota) What are the characteristics of the Group’s
sustainability strategy?
(Yamashita) Firstly, there are universal sustainability issues that are important to all companies.
Good governance is one. Improving social impact or environmental impact are other good examples
of universally important sustainability issues. We then have material issues that are unique to our
tobacco business. For example, tobacco leaf is the vital raw material for our Group, and maintaining
a sustainable supply chain is paramount to us. We also operate in markets where human rights may
be at risk. Having initiatives in place to ensure that human rights are respected is another key issue
for our Group. Likewise, tackling illegal trade or dealing with tobacco regulation are other important
issues for our tobacco business, the core business of the JT Group.
The effect of COVID-19 on our tobacco business is at present somewhat limited. By taking strict
safety precautions throughout our value chain, we were able to deliver our products to end
consumers. I am very grateful that we were able to do so during this difficult time and that ourconsumers appreciated the value of our products. At the same time, I realize that tobacco is acontroversial product. Our mission is to offer consumers an even wider choice by focusing on
quality, innovation, and reduced-risk potential. We will continue with an even greater focus ondeveloping RRP (Reduced-Risk Products).
It goes without saying that investing in people is critical to sustaining all these initiatives. Our
pharmaceutical business and processed food business have made “investing in people” a key focus
area. While the Group-wide sustainability issues are the same across our Group, each business haschosen a specific focus area, which reflects the specific characteristics of the industry in which they
operate.

(Kubota) Please describe the progress made in 2020 and thechallenges ahead.
(Yamashita) In our tobacco business, this will be the second year that we will report our progress on
the sustainability KPIs. For our pharmaceutical and processed food business, this will be the firsttime. I am pleased to announce our new Group-wide target for diversity and inclusion, specifically
representation of women in leadership. Our target is to reach 25% by 2030 and we find it desirable
that this should be more than 40% over time. As part of the JT Group Environment Plan 2030,
targets have been made for the appropriate use and disposal of materials used in our products andpackaging. Our tobacco business has also set its target in this area. Moreover, I am very pleased toannounce that we officially endorsed the TCFD recommendations, representing significant progress
for this year.
In 2020, we were included in the CDP’s “Climate A List” and “Water A List” for the second
consecutive year. Our Group has also been selected as a member of DJSI Asia Pacific for theseventh consecutive year, retaining the second position in the tobacco sector as we did last year. I
am delighted that our initiatives are recognized by external rating agencies.
For 2021, we will be looking at updating the JT Group’s material issues, bearing in mind the effect of
COVID-19 and the longer-term changes that the pandemic will impose on our society. We are in
uncertain times with the prolonged effect of the pandemic; nevertheless, we will strive to embedsustainability into the root of our business, involve all members of the Group and work towards asustainable future for our society and for our business.

(Kubota) What does “inclusiveness” mean to the JT Group?
(Yamashita) Inclusiveness is a concept
advocated by the SDGs. It is about leaving no
one behind and envisioning an inclusive,
better future. It is the key element in the fieldof community investment and a concept thatis pivotal as we strive to improve our social
impact. Inclusiveness goes beyond thebenefits of community investment – it is also
about proactively initiating projects.

A good example is a community clean-up campaign that we have run in Japan since 2004. The
project is called “Pick up the litter and you will love your city.” We wanted to raise awareness forproblems associated with public littering through a rubbish collecting initiative. It originally started
as a cigarette butt cleaning exercise undertaken by our own employees and later evolved into acommunity-wide clean-up campaign. At present, local authorities, schools, volunteers, andcommittee members of local events and associations take part in the exercise. The campaign is run
in various cities and places throughout Japan, even where our Group is not directly involved in theoperation.
It is important that as we drive forward these new initiatives, we continue to cultivate, nurture andfacilitate awareness around inclusiveness within communities, leaving no one behind. If we canunite everyone around the desire for these initiatives, we can be a strong force. In the long run, we
can build a legacy. Eventually, it becomes a part of the culture embedded into our society. I hope wecan promote and facilitate more examples of active inclusiveness like these.

Related links
Our sustainability
strategyTop

The 4S model,

Stakeholder

management
message

Materiality,
Sustainability

engagement

strategy, SDGs
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 fulfill our responsibilities to our

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

society - these are the four stakeholder

and the wider society. Carefully consideringgroups (4S) at the heart of everything we dothe respective interests of these four key

at JT. Our commitment to serving thesestakeholder groups, and exceeding theirgroups is represented 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
to enhance returns based on our profit growthoutlook and strike a balance between
providing shareholder returns and investing in
the business for future profit growth. For our
employees, we will work to ensure that we
maintain our reputation as a respected
member of the community and a company
that they can feel proud to be a part of. And
we will continue to contribute to society as awhole, recognizing that our growth benefits
from a sustainable society, and in doing soenhance our corporate value.
Our vision, based on the 4S model, is toachieve global growth by providing value
unique to our Group. Our mission - ourconcrete action plan to achieve our vision - isto create, develop, and nurture our brands tomeet consumers' needs while understanding
and respecting the environment and thediversity present in society.

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 identified 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 first time, selecting material issues through interviews with ourinternal and 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, andother members of top management, we 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 final 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 2015, we have continued to listen to our stakeholders and adapted our materiality according
to the changing external business environment.

In 2020, we focused on the following key issues across the entire JT Group.
■

Environment:(a) Supporting the TCFD (Task Force on Climate-related Financial Disclosures)and (b) the appropriate use and responsible disposal of materials, including plastics, used in our
products and packaging.
■

Investing in people:

Equality and diversity in the workplace.

The COVID-19 pandemic obviously also had a major impact on our approach in 2020. From theonset of the global crisis, we have prioritized the safety of our employees and their families, and allof our other stakeholders. We have taken many different steps such as strengthening
occupational health and safety measures to protect our employees and to mitigate potential
disruption to our consumers and partners. We have kept our business running by expanding existing
systems such as remote working and flexible hours, and implementing ‘New Ways of Working’. The
JT Group will continue to support the communities where we operate in any way we can.
In the tobacco business, which is our core business, we will strengthen our investments in
Reduced-Risk Products (Reduced-Risk Products (RRP): Products with the potential to reduce therisks associated with smoking.), the pillar of our future business growth, while realizing steady profit
growth through RMC. We will continue to work on ‘product innovation’ as a material issue tocontinue to provide new value to our consumers.
The business environment surrounding the JT Group will continue to evolve rapidly in 2021 andbeyond. We will carry out periodic materiality assessments, reviewing and updating the priorities asnecessary to ensure that they remain relevant and up-to-date.

Sustainability strategy overview
The JT Group's sustainability strategy is based on the 4S model, our management principle, andencompasses 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 the society we live
in. The foundations of our sustainability strategy, which apply across the Group, are as follows.

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 andenvironmental impact

Good governance and business standards
We are committed to promoting transparent, fair and timely
decision-making that carefully considers the respective interests ofconsumers, shareholders, employees and the wider society.
Read more

Tobacco business sustainability strategy
We have selected the following four focus areas for the tobacco business, which is our corebusiness. We have set 11 specific targets

for the focus areas and have been reporting on

progress since 2019. In 2020, we set a new target relating to the appropriate use and responsible
disposal of materials, including plastics, used in our products and packaging.

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 choiceof 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
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, in 2019, we selected the following
three focus areas. We set five specific targets

for these focus areas and 2020 is the first time

we are reporting on our progress towards achieving the targets.

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 first-inclass (FIC) drugs.

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

responsibility

standards in 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.
In 2019, we selected the following three focus areas. We set eight specific targets

for these

focus areas and 2020 is the first time we are reporting on our progress towards achieving thetargets.

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 in people 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 businessand its environment. We have mapped related SDGs against our initiatives for sustainable business,and identified the nine SDGs to which our business can best contribute.

Pharmaceuticals
Processed foodTobacco

Related links
Our sustainability
strategyTop

The 4S model,

Stakeholder

management
message

Materiality,
Sustainability

engagement

strategy, SDGs
Copyright© Japan Tobacco Inc. All rights reserved.

Sustainability strategy of tobacco business4 strategic focus areas

Aspirational goals

Targets*1

Progress

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 that meet
consumer expectations and to provide information on them. We will lead in providing thewidest range of consumer choice in the RRP category.

At the end of 2020, we offered a choice of 6 tobacco vapor offerings (T-Vapor)
and/or 5 types of e-cigarettes (E-Vapor) in 27 countries.

Product materials and packaging
We will reduce the environmental impact of our products and packaging through design
solutions, facilitating responsible collection and disposal, and consumer awareness andeducation. More specifically, we will reduce our packaging (including plastic) and ensurethat the remaining is 85% reusable or recyclable by 2025, rising to 100% by 2030. In total,
recycled content will account for 20% of our tobacco business packaging by 2025.

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

We 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% by2023 and 50% by 2030. (Baseline year: 2015).

Recordable injury rate*2 declined 58.9% from 0.72 in 2015 to 0.30 in 2020.

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.

Since 2015, we have invested US$349 million in our communities and employees
volunteered 137,882 hours on company time.

Employer of choice
We will be a certified employer of choice every year in at least 60 countries by focusing
on talent management, rewards, and empowerment.

We were certified as employer of choice in 67 countries (64 with Top Employer
and 3 with other local employer certifications). In addition, 11 countries hold morethan one certification.

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

Since 2015, we have reduced greenhouse gas emissions from our own
operations by 28.6% and greenhouse gas emissions from our direct leaf supply
chain by 6.0%.

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

Since 2015, we have reduced water withdrawal by 14.9% and waste by 13.8%,
in relations to our own operations.

Forestry
We will replace all wood from natural forests used in the tobacco curing process of ourdirectly contracted growers with renewable fuel sources by 2030.

Based on our 2020 sustainable tree planting activities in Tanzania, Zambia andBrazil, we estimate that we are on a path to achieve consolidated 41% renewable
wood sourcing by 2027. *3

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

[58% of our directly contracted growers and 92%*4 of our leaf merchants’ growers were covered by
ALP; leaf merchants data come from reporting entities only and excluding India and China.]

PeopleSupply chain

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

SDGs

In 2020, 87% of our supplying entities reported against ALP.

76% 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 governance criteria by2023.

At the end of 2020, 64%*5 of our key suppliers were screened against ESG criteria.

Engagement
We will always protect our ability to participate in public policy debate with the aim toachieve balanced regulation that meets societal concern and supports businessgrowth.

During 2020, 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 to exchange
intelligence regarding illegal tobacco products, in order to support the reduction of illegal
tobacco products.

In 2020, our Anti-Illicit Trade team provided 1,117 intelligence reports to law
enforcement agencies, and advised 859 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 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.

*3 R eduction from 59% in 2019 to 41% in 2020 can be attributed to lower tree planting and survival rates versus planned. Efforts and dedicated programs are in place toachieve 100% renewable wood supply by 2030.
*4 The decrease from 98% in 2019 to 92% in 2020 is due to new suppliers reporting, who have not implemented ALP yet.
*5 T he decrease from 67% in 2019 is due to “key supplier” definition change, resulting in increased number of key suppliers, however total number of suppliers screened
has increased.

Sustainability strategy of pharmaceutical business
Strategic focus areas

Aspirational goals

Targets

Progress

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.

In June 2020, we launched CORECTIM® Ointment 0.5%. We then launched
ENAROY® Tablets 2 mg and 4 mg in December 2020. Throughout the year, wespent 25.2 billion yen on our research and development activities.

PeopleWe will strive to nurturetalent development whichenables us to create first-inclass (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.”

In 2020, five employees took part in our “For the Patients Project” asfacilitators. They interviewed medical representatives and organized an internal
online ethical awareness event.

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.

Since 2015, we have invested US$349 million in our communities andemployees volunteered 137,882 hours on company time.

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

After their initial training, all of our medical representatives take a mandatorye-learning course once a month to keep their skills and knowledge up-to-date.

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

Since 2015, we have reduced greenhouse gas emissions from our own
operations by 9.0%.

Product safety andresponsibility

We will strictly comply with all
relevant laws, regulations, andindustry standards in order todeliver safe drugs to patients.

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

SDGs

Sustainability strategy of processed food business
Strategic focus areas

Aspirational goals

Targets

Progress

Products and services

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

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

In 2020, we developed a new category of ready meal to meet with growing ourconsumer needs demand. In total, we launched six products, which could can all
be served without plates and without adding water. Also, by utilizing a yeast
technology, we launched six seasonings that can add authentic cooking feelingeven after a heating process.

PeopleWe will ensure workplacesafety for our employees,
while continuously investingin people who can contributeto enhancing corporate value.

Enhance job satisfaction
We will further improve job satisfaction by promoting talent development in a secureand motivating workplace.

To ensure a safe workplace environment under the COVID-19 pandemic, we
introduced full-time flexible working and no-limit remote working.

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)

Recordable injury rate*1 declined 2.3% from 0.90 in 2018 to 0.88 in 2020.

Community investment*2
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.

Since 2015, we have invested US$349 million in our communities and employees
volunteered 137,882 hours on company time.

Foster a safe and reliable corporate brandWe will promote food safety management in compliance with global food safety
standards to develop food safety. We will also enhance the way we communicate
with customers so that they retain trust in our food quality.

We coordinate regular inspection in outsourced and our own factories. Also,
through internal training programs, we try to raise awareness to improve thequality of our products. In order to communicate with customers and reflect their
voice to our products, we launched a new online tools to share consumer feedback
with all employees.

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.

We launched 24 products with a featuring biomass ink for its on the packaging in
2020. To reduce non-renewable resource use associated with our bakery
operations business, Saint-Germain are promoting a campaign for customers whobring their own eco-bags to reduce the amount of plastic shopping bags used.

Waste
We will reduce the amount of waste associated with our Japanese domestic offices
by an average of 1% per year. (Intensity target*3).

We have reduced the amount of waste associated with our Japanese domestic
offices in 2020 by 1.3% vs 2019.

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

Since 2015, we have reduced greenhouse gas emissions from our own operations
by 14.2%.

Supply chain

We will reduce social andenvironmental impacts andcontinue to deliver safe
products to consumers.

*1 Recordable injury rate = Recordable injuries/200,000 hours worked.
*2 Target for Community investment is a Group-wide target.
*3 Intensity target = 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 wantto make sure that we provide them with the widest range of quality products

Shareholders■

We hold an annual general meeting every year and present our financial results to ourshareholders■

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

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 throughperformance assessments■

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 andshare new ideas through our annual Sustainability Awards

Suppliers■

All of our suppliers are required to comply with our JT Group Supplier Standards and we selectour 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 reflected 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
in order 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-profit 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 isembedded 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 benefit
society and business, globally.

Across our Group
Business for Social Responsibility (BSR)
BSR is a global non-profit organization that works with its network of companies and partners tobuild a just and sustainable world. We have been a member of BSR since 2015, and have a multiyear partnership to implement Human Rights Impact Assessments. We have also been a memberof BSR’s Human Rights Working Groupsince 2018, which provides us with opportunities to learn

and share human 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-profit 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-profit 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 flagship program, whichenables organizations to improve the quality of their integrated reporting. We joined in 2019.

Business for Societal Impact
To measure the social impact our work on community investment, we use the Business for Societal
Impact framework, a global standard in measuring and managing a company’s social impact.
Business for Societal Impact is provided by Corporate Citizenship.

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 (asof April 1, 2019).

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

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 theeconomic 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 Officers.

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, andhas been set up to answer questions such as which interests are being pursued, by whom, and withwhat budgets. Since 2011, JTI has been a registrant of the EU Transparency Register, setting out ourfields of interest 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 tofarm workers.

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

International Chamber of Commerce (ICC)
The ICC is the world’s largest business organization, representing more than 45 million companies
in over 100 countries. We sit on three of ICC’s policy commissions: Intellectual Property, Marketingand Advisory, 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
tobacco awareness 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 acontinuous improvement process. We are an active member and chair of the STP’s steeringcommittee. 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,

Stakeholder

Materiality,
Sustainability

engagement

strategy, SDGs
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