JAPAN TOBACCO INC.
CSR Report 2012
JAPAN TOBACCO INC.

CSR Report 2012
For the year ended March 31, 2012

JAPAN TOBACCO INC.
2-1, Toranomon 2-chome, Minato-ku, Tokyo 105-8422, JAPAN
Tel:(81)3-3582-3111
Fax:(81)3-5572-1441
Issued in June 2012

*65;,5;:
JT Corporate Profile ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・3
Top Message・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・5
JT Group’s CSR・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・7■ Feature 1
Social Contributions in Tobacco Leaf Producing Regions・・・・・・・・9■ Feature 2
From Forest Conservation and Development to Co-habitation with Forests・・・・・・13
Appropriate Manufacturing Process and Consumer Services 15
CSR Activities in the Tobacco Business・・・・・・・・・・・・・・・・・・・・・15
CSR Activities in the Pharmaceutical Business・・・・・・・・・・19
CSR Activities in the Food Business・・・・・・・・・・・・・・・・・・・・・・・・・・21
Supply Chain Management

23

JT Group Responsible Procurement Policy・・・・・・・・・・・・・・・・23
Supply Chain Management in the JT Group’s Business・・・・・・24
Strengthening of the Business Foundation25

Corporate Governance・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・25
Compliance・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・26
Risk Management・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・26
Human Resources Management・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・27
Approaches to Protecting the Global Environment 31
JT Group Environmental Management・・・・・・・・・・・・・・・・・・・・・・32
Environmental Impact of the JT Group’s Business and Approaches to Reduce It・・・・35
Approaches to Preventing Global Warming ・・・・・・・・・・・・・・・37
Approaches to Creating a Recycling-Based Society・・・39■ Editorial Policy
The JT Group has been practicing CSR, on the basis of therecognition
that it must fulfill its social responsibility through its
事業概要
operations. The JT Environmental Report, which was firstpublished in 1998, was upgraded in FY 2005 to the JT Social
Environmental Report, with a focus on the group’s approaches to
CSR, including environmental activities, while the said recognition
remains the same.
The CSR Report 2012 features the JT Group’s activities in five key
areas—appropriate manufacturing process and consumer services, supply chain management, strengthening of the businessfoundation, approaches to protecting the global environment, andsocial contribution activities—with those unique to the tobacco,
pharmaceutical, and food businesses shown separately. As forappropriate manufacturing process and consumer services, forexample, approaches to priority issues in each business areshown, while supply chain management focuses on quality andsafety control in raw material procurement and manufacturing,
especially on those unique to each business. In particular, Feature
1 describes activities in leaf tobacco producing regions, in which
public attention is directed.
As stakeholders’ inputs are essential in enhancing CSR activities,
the JT Group welcomes views and opinions on this report and its
CSR activities.

■ More details are posted on the website

Corporate Social Responsibility
URL

www.jt.com/csr■ Financial information is available on the website■ Period Covered (in this report)
FY 2011 (April 1, 2011 to March 31, 2012)
Some JT policies, objectives and activities scheduled to takeeffect after FY 2012 are included in this report.
■ Scope of Report
JT Group’s activities primarily in Japan, and environmental activities of the JT Group companies under the JT Group environmental
management (JT and its 240 consolidated subsidiaries as of theend of March 2012).

Approaches to Conserving Biodiversity ・・・・・・・・・・・・・・・・・・・・・40
Other Approaches・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・40
Environmental Communication ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・40
Approaches to Protecting the Global Environment (Overseas)・・・・41
Environmental Accounting FY2011
Towards Harmonious Relationships with Local Communities 43
Disaster Relief Activities in Areas Hit by the Great East Japan Earthquake ・・・44
Social Contribution Activities across the World・・・・・・・・・・45
History of JT and its CSR Activities・・・・・・・・・・・・・・・・・・・・・…48
URL

1

CSR Report 2012

<Major JT Group Companies under the JT Group’s
Environmental Management>
Japan Tobacco Inc.
TS Network Co., Ltd.
Torii Pharmaceutical Co., Ltd.
Japan Filter Technology, Ltd. TableMark Group
Japan Tobacco International
Japan Beverage GroupMedia & Investor Relations
URL

www.jt.com/investors■ Issuance Month
June 2012■ Reference Guidelines
Environmental Report Guidelines (FY 2007)
Environmental Accounting Guidelines (FY 2005)
Both published by the Ministry of Environment

URL of the website concerned

CSR Report 2012

2

CORPO R ATE■ JT Corporate Profile

DATA

As of March 31, 2012

■ JT Corporate Information■ Business Overview[Corporate Name]JAPAN TOBACCO INC.
[Communication Name]
JT[Established]
April 1, 1985
[Capital]
100 billion yen[Headquarters]
2-1, Toranomon 2-chome, Minato-ku, Tokyo 105-8422, JAPAN[Number of Establishments]
Area Sales Headquarters / 25
Factories / 10
Regional Leaf Tobacco Headquarters / 2
Laboratories / 3[Major Subsidiaries and Affiliates]■ Japanese Domestic Tobacco Business
TS Network Co., Ltd., JT Logistics Co., Ltd.,
Japan Filter Technology, Ltd., Fuji Flavor Co., Ltd.,JT Engineering Inc.
■ International Tobacco Business
JT International S.A., Gallaher Ltd., LLC Petro,
JT International Germany GmbH,JTI Tütün Urunleri Sanayi A.S., Liggett-Ducat CJSC
■ Pharmaceutical Business
Torii Pharmaceutical Co., Ltd., Akros Pharma Inc.
■ Food Business
JT Beverage Inc., Japan Beverage Holdings Inc., TableMark Co., Ltd.

[Japanese Domestic Tobacco Business][Pharmaceutical Business]

Japanese domestic tobacco business constitutes the core

The Central Pharmaceutical Research Institute is the JTof the JT Group’s operations, producing a large slice of its

Group’s R&D unit, with Torii Pharmaceutical Co., Ltd. manu-

profits. Its years of experience and expertise in producing,

facturing and distributing the group’s drugs. While expand-

distributing, and researching tobacco products are one ofing the line of late-stage compounds and enhancing its

the best in the world. While providing consumers with a

R&D pipeline, the JT Group will continue to increase its

variety of products such as the Mild Seven, Seven Star, andpresence in the global marketplace by creating a unique,

Pianissimo series, it has established a solid business foun-international R&D-oriented business and by developing

dation based on its unrivaled sales and service network.

original new drugs, aiming to be respected and appreciatedby patients and medical staff around the world.

■ Financial Information◆ JT Group adopted IFRS (International Financial Reporting Standards) effective from FY 2011 ending March 31, 2012.

[Revenue](Unit: JPY 100million)

FY 2011 (ending March 2012)

20,338FY 2010 (ending March 2011)

20,594[Operating Profits]

Other 0.7%
(Unit: JPY 100million)

FY 2011 (ending March 2012)

4,592

FY 2010 (ending March 2011)

4,013[Adjusted EBITDA][Breakdown of Revenue by Business] (FY ended March 31, 2012)

Food Business
17.7%(Unit: JPY 100million)

FY 2011 (ending March 2012)

5,771

FY 2010 (ending March 2011)

5,220

International
Tobacco Business
47.5%[Data by Sector] (FY ended March 31, 2012)(Unit: JPY 100million)

Revenue

Adjusted EBITDA

Japanese Domestic Tobacco Business

6,462

2,623

International Tobacco Business

9,663

3,148

474

△100

3,594

200

Pharmaceutical Business
Food Business

Domestic
Tobacco Business
31.8%

PharmaceuticalBusiness
2.3%[International Tobacco Business][Food Business]

Japan Tobacco International (JTI), which controls the JT

JT Group’s food business centres on beverages, processedGroup’s international tobacco business, has a solid busi-

foods, and seasonings. As for beverages, the focus is on

ness foundation based on its geographic advantage andenhancing the value of the core brand “Roots” and expand-competitive edge in brand and human resources, driving

ing the sales network of the vending machine operator

the group’s profit growth. It is extending its reach world-

Japan Beverage Group, to increase the earning power. The

wide, positioning Winston, Camel, Mild Seven, Benson &processed food business led by TableMark Co., Ltd., mean-

Hedges, Silk Cut, LD, Sobranie, and Glamour as Global

while, will continue to provide high value-added products,

Flagship Brands, building a strong presence in major mar-especially staples such as frozen noodles, frozen cooked

kets around the world.

rice, aseptic cooked rice, and frozen baked bread.

■ Number of Employees[Consolidated Number of Employees](Unit: Persons)Japanese Domestic Tobacco Business

11,092

International Tobacco Business

24,237

Pharmaceutical Business

1,693

Food Business

10,646

Others/Group-wide Business
Total[Percentages of Domestic and Overseas Employees]

Overseas*
56%

861

Domestic
44%

48,529*Number of full-time employees[Non-consolidated Number of Employees]
Number of full-time employees

3

CSR Report 2012

(Unit: Persons)

8,936*Number of Employees of JT Group Companies Headquartered Abroad

CSR Report 2012

4

Top Message

Aiming to Contribute to
Sustainable Development ofSociety by Evolving
the JT Group’s CSR Activity
Contributing to Sustainable
Development of Society

Aiming to Evolve the JT Group’s CSR Activity

The circumstances surrounding companies

Today, companies are required to meet society’s

internal ideas alone, it is important to conscien-

are changing drastically. As companies gain

expectations more than ever in terms of producttiously listen to the voices of customers and otherincreased social influence in line with the on-safety, the responsibility owed to consumers, andstakeholders, including shareholders, employees

going globalization, the international com-environment-friendliness. Moreover, companies

and society, and reflect this into our CSR activity.

munity has also increased its expectations

are required not only to conduct CSR activity on a

We must quickly and flexibly respond to changes

with regard to the role of companies. Calls

group-wide basis but also to act with awarenessinstead of just repeating the same activity. We

are growing for companies to contribute toof the possibility that many social challenges may

will take nothing for granted and will make con-resolving social challenges around the world.

exist in relation to supply chains. Amid growing

stant improvement efforts so that we can continu-

The JT Group has business operations inpublic concern about human rights issues andously evolve our CSR activity.

more than 120 countries and its group-wide

poverty, companies are also required to fulfill

workforce represents more than 100 nation-

their social responsibilities from a global perspec-

We believe that the growth that the JT Group has

alities. Customers and other stakeholders, in-tive and in accordance with the extent of theirso far achieved was made possible by the soundcluding shareholders, employees and soci-own social influence.

development of the whole society.

ety, have ever higher expectations of the JT

If the JT Group is to meet society’s increasing

For the JT Group to continue sustainable growth,Group. While the JT Group has already been

expectations and aptly perform its social respon-sustainable development of society is indispens-

steadily engaging in corporate social respon-

sibilities, we need to evolve the Group’s CSR

able. To advance sustainable development ofsibility (CSR) activity, it is required to more

activity.

society, we will contribute to resolving social

aptly contribute to resolving social chal-

To that end, communication with stakeholders ischallenges through our business activities, the-lenges on a global scale in the future.

essential. We believe that rather than acting upon

reby performing our social responsibility.

President, CEO and
Representative Director, JT

5

Mitsuomi Koizumi

CSR Report 2012

6

JT Group’s CSRManagement Principle and the JT Group’s Objectives

JT Group’s CSR

CSR Promotion Policy and Its Development

JT Group Mission and the JT Group Way

The JT Group’s sustainable growth depends entirely on

The JT Group has been promoting CSR activities based on

A company cannot survive on its own; its existence relies

The JT Group established the “JT Group Mission” and thesustainable development of society, for which it strives tothe three-year promotion plan (2009–2011), which sets prior -on cooperation with a number of stakeholders including“JT Group Way,” the agenda to realize its philosophy tofulfill its social responsibilities by addressing social issues

ity issues in four primary areas (Base Domain of Businessconsumers. The JT Group, therefore, puts up the 4S (Sachieve its long-term goal: a company committed to global

where it operates. Through these efforts, the JT Group canManagement, Business Environment, Global Environment

stands for Satisfaction) model, which focus on fulfilling our

growth by providing consumers with a variety of values

achieve its mission.

and Social Contribution), while stepping up efforts to meet

responsibilities to our consumers, shareholders, employ-that are uniquely available from the JT Group.

While the JT Group has been advancing CSR activities pri-the expectations of society.

ees and society, placing our consumers at centre.

With the group’s management philosophy in mind, all JT

marily through its operations, the focus will be on those

As for the base domain of business management, efforts are

based on ISO 26000, an international standard for social

underway to address corporate governance, risk manage-

Management Principle

The JT Group will continue to practice this management

Group employees must share the mission and agenda tophilosophy, thereby increasing the company’s value anddeal with the changing business environment and achieve

responsibility, to contribute to solving social issues on ament, and compliance issues; implement CSR-oriented pro-accelerating growth in the mid to long-term.

further growth.

more global basis and in a more appropriate manner. Spe-curement; and strengthen human resources management.

cifically, they are designed to address appropriate manu-

Specifically, the JT Group Responsible Procurement Policy

facturing process and consumer services, supply chain

was adopted to promote CSR-oriented procurement on a

management, environmental management, strengthening

group-wide basis, while the JT Group Code of Conduct are inof the business foundation, and social contribution.

place to further strengthen the group’s system to observe

In addition, the JT Group will continue to communicatecompliance.

JT Group’s Objectives
J

The JT Group’s Objectives (Long-term Vision)
4S Model4

A company committed to global growth by providing consumers witha variety of values that are uniquely available from the JT Group

Shareholders

with stakeholders, as their opinions are essential to its CSR

The business environment area: The tobacco businessactivities.

focuses on “youth smoking prevention” and “harmonious

The JT Group Mission
The Mission of the JT Group is to create, develop, and nurture its
unique brands to win consumer trust, while understanding andrespecting the environment, and the diversity of societies andindividuals.

Consumers

The JT Group Way
Employees

SocietyIn achieving this, we are committed to:・Fulfilling the expectations of our consumers and behaving
responsibly
・Striving for quality in everything we do, through continuous
improvement
・Leveraging diversity across the JT Group

coexistence between smokers and nonsmokers”; the pharmaceutical business, on “the highest level of ethical stan-

JT Group’s CSR Promotion Systemdards required for those who are engaged in pharmaceutical

With the business environment taken into account, the CSR

of food safety control.” Taking into account the nature of its

Committee, chaired by the Executive Deputy President in

operations, each business is addressing these challenges on

charge, is held regularly to discuss and share the direction

a long-term basis, while producing steady results.

business”; and the food business, on “the highest standard

in which the JT Group should be heading, while the CSR

The global environment area: In line with the JT Group Envi-division is working with other divisions to promote CSR

ronmental Action Plan (2009–2012), efforts are underway toactivities on a group-wide basis.

reduce environmental impacts (global-warming prevention
and resource saving) and extend environmental management to all consolidated subsidiaries. In fact, there have been

Communication with Stakeholders

improvements in major environmental indexes (greenhousegas emissions, water consumption, waste generation, andIn conducting business, the JT Group communicates withresults of discussions and suggestions made into its opera-

stakeholders in a variety of situations, incorporating thetions and CSR activities.

waste recycling), while a growing number of consolidated

CSR Promotion System

subsidiaries are practicing environmental management.

Chief CSR Officer (Executive Deputy President in Charge of CSR)

Consumers
The JT Group provides consumers with correct information on its products
and services through its website and brochures, and with such information, a sense of trust and satisfaction. At the same time, the sales forces
and the Customer Service Center gather consumers’ valuable feedback,which contributes to improving the group’s products and services.

Shareholders
The JT Group discloses information about its performance in a timely andappropriate manner by holding briefings and publishing periodical reports,
an effort to be better understood and evaluated by shareholders.

Society

The social contribution area: The JT Group, as “good corporate citizen,” will continue to coexist with communities in

CSR Committee

which it operates, based on the JT Group Social Contribution

The JT Group disseminates information about its business policy andactivities so that it can be better understood and evaluated by society,while communicating with local communities and NGOs on manyoccasions in an effort to listen to various opinions.

CSR Division

Policy. On the domestic front, for example, community-based
programs are underway, such as cleanup activities in the surroundings of JT’s factories and offices, the JT Forest initiative

Employees
The JT Group enhances communication between top management andemployees by posting the executives’ messages on the intranet, publishing group magazines, conducting questionnaires for employees, andtaking measures to strengthen the group’s organizational power.

Tobacco Business
Headquarters

Pharmaceutical
Division

Food BusinessCorporate

for reforestation and forest conservation in nine locations
across Japan and support for NPOs. In addition, Japan Tobacco

Group
Companies

Group
Companies

Group
Companies

Group
Companies

International (JTI), which spearheads JT’s overseas tobacco
business, focuses on activities designed to improve the qualityof life of the less advantaged, and to promote the arts.

7

CSR Report 2012

CSR Report 20128

Feature 1

Social Contributions
in Tobacco Leaf Producing Regions
The JT Group procures tobacco leaf, a raw material of tobacco products, fromdomestic and foreign suppliers. To ensure procurement of high-quality tobacco leaf,
the JT Group is engaging in various activities in tobacco leaf producing regions. In
this section, we will describe the JT Group’s relationships with tobacco leaf producing regions abroad in particular.

Global Production of Tobacco Leaf

A leaf tobacco drying facility in Malawi, Africa

Toward Resolving Social Challenges Faced by Tobacco Leaf Producing Regions
Except in the United States and a few other countries, tobacco

conducts surveys in order to eliminate child labor in tobacco

leaf is grown by small farms. There has not been much prog-

leaf producing regions, mainly in Africa.

ress in the modernization of production through the introduc-

Moreover, since 2012, JTI has developed “ARISE,” a programtion of agricultural machinery, so there are various challenges

that aims to eliminate child labor through education andfrom the perspective of productivity. Moreover, many tobacco

improvement of living standards in cooperation with various

leaf producing regions are poor.

organizations, and has started full-scale activity in Brazil andIn light of those circumstances, JTI aims to ensure stable pro-

Malawi, an African nation. When conducting the activity, JTI

curement of high-quality tobacco leaf by promoting investment

held hearings with residents in tobacco leaf producing commu-

Of the amount of tobacco leaf JT uses annually to produce

ties. Therefore, in recent years, JTI has started various activi-

to strengthen the foundations of production and everyday life innities and experts on the labor environment and legislation andtobacco products, it procures approximately 29,000 tons fromties involving such communities.

tobacco leaf producing communities and improving farmers’considered specifics of the activity based on the hearing results

productivity and living standards.

so as to implement measures that better suit the circum-

suppliers (both figures represent the actual procurement

For example, one major social problem faced by economicallystances of each community.

amounts in 2011).

disadvantaged regions is child labor. In tobacco leaf producing

In addition to child labor, environmental problems, such as

Tobacco leaf procured from foreign suppliers is mainly pro-communities, too, young children whose families cannot send

forest destruction, also pose a great challenge. In tobacco leaf

domestic suppliers and approximately 58,000 tons from foreign

duced in countries located between the latitudes of 40 degrees

them to school for economic reasons are often used for childproducing regions in Africa and elsewhere, wood is used notnorth and 40 degrees south, such as China, Brazil, Tanzania andlabor by leaf tobacco growers. JTI believes that this situation

only as a household fuel material but also for the process ofZambia. Japan Tobacco International (JTI), which operates inshould never be tolerated.

drying leaf tobacco, raising concerns about serious forest

around 120 countries as the core of the JT Group’s international

As a measure to deal with the child labor problem, JTI has par-destruction. To revive forests and ensure sustainable mainte-

tobacco business, is responsible for procuring tobacco leaf pro-ticipated in the activities of the ECLT (Eliminating Child Labournance and management of forests in Africa, the JT Group is

duced outside Japan.

in Tobacco-growing) Foundation since 2001. The ECLT Founda-

promoting reforestation and forest conservation activity there.

JTI has believed that in order to ensure stable procurement oftion, which is a non-profit organization established by the

To tackle social challenges faced by tobacco leaf producing

raw materials and improve quality, it is essential to resolve

tobacco industry and others under the advisorship of the Inter-

communities from a long-term perspective, JTI is implement-

national Labour Organization (ILO), implements projects anding various community support programs.

social challenges faced by tobacco leaf producing communi-

9

A leaf tobacco farm in Malawi, Africa

CSR Report 2012

Inspection by JTI of a tobacco field (Zambia, Africa)

CSR Report 201210

Feature 1

Social Contributions in Tobacco Leaf Producing Regions

Eliminating Child Labor through Education and Improvement of Living Standards――ARISE Program

Preserving Forests near Tobacco Leaf Producing Regions

The ARISE (Achieving Reduction of Child Labour in Support ofproviding opportunities to acquire techniques and knowledge

In tobacco leaf producing regions in Africa and elsewhere,

forest conservation through this activity, with a view to devel-

Education) program is being implemented by JTI in order tonecessary for effective production of leaf tobacco throughwood is often used as a fuel for the process of drying har-oping a system for sustainable maintenance and management

eliminate child labor in tobacco leaf producing regions. JTI

vocational training. Support is also provided for people planning

vested tobacco leaf. Wood is also used as a household fuelof forests.

launched this program in 2012 in cooperation with Winrock

to start up a new business and preferential financial assistancematerial. As a result, the regions face environmental problems

Moreover, the JT Group is implementing various support mea-

International, an NGO which is engaging in agricultural develop-

is offered so as to strengthen the foundation of everyday life. In

such as a decline in the area size of forests and soil runoff insures in the belief that strengthening the foundations of pro-ment and which is well experienced in activities to resolve theaddition to such support, this program enlightens people about

farmland due to logging. There is concern that if this situation

duction and everyday life in local communities is essential tochild labor problem, the International Labour Organization (ILO),

the importance of education and raises awareness about theworsens, it will have a significant impact on tobacco leaf pro-forest conservation. To reduce the amount of wood used as aand local governments.

child labor problem.

duction as well.

household fuel material, we are installing improved cooking

This program aims to resolve the child labour problem by

Resolving the child labor problem is not a challenge for farm-

The JT Group’s reforestation and forest conservation activity

stoves with higher fuel efficiency. We are also engaging inincreasing opportunities for children to receive high-quality edu-

ers and local communities alone. Therefore, the program urges

aims to realize sustainable production of tobacco leaf by pre-other activities such as installing wells for clean drinking water

cation. It provides better education by giving children learning

relevant governments and international organizations toventing logging and reviving forests. With the support of Wash-and small-scale irrigation equipment that enables the cultivationmaterials and after-school lessons.

develop a legal framework that underpins such activities.

ington State University, which has abundant experiences in theof farm products during the dry season. These activities have

In addition, support for parents is also important. To enable

We pilot the program in Brazil and Malawi, an African nation,

field of overseas aid in the agricultural sector, the JT Groupbeen praised for having led to stable food production, improvement of sanitary conditions and a higher income level.

local residents to make a living without depending on childand are planning to extend it to other African nations as well.

started this activity in Malawi and Tanzania in Africa in 2007 andlabor, this program implements measures to improve the qual-

We will continue to improve this program in cooperation with

Zambia, also in Africa, in 2010. We have so far planted around

The JT Group will continue to conduct activities that contribute

ity of life for whole families.

NGOs, international organizations and relevant governments.

16 million trees on a total of some 8,000 hectares of land. In

to environmental preservation, including forest conservation,

addition to planting trees, we also educate local residents about

and sustainable community development in tobacco leaf pro-For example, the program seeks to improve productivity by

ducing regions.

We Will Continue to Expand the ARISE Program – JTI official
in charge of the ARISE program
JTI has developed the ARISE program in order to resolve social and economic problems faced by leaf tobacco
growing communities and correct the situation in which children have to do dangerous jobs. As child labor involves
complex problems, we cannot find a solution without cooperating with organizations that have international experiences, such as the ILO and Winrock International. Therefore, we encourage tobacco leaf growing communities
to achieve economic independence by creating opportunities for people to receive high-quality education and byraising awareness about the need to prevent child labor in cooperation with governments and local residents. In
Brazil and Malawi, these activities drew a very favorable reaction. In 2012, we will start a survey in Zambia.

Tanzania
T
Peggy Herrmann-Ljubicic

ZambiaA simplified pump installed at a well

11

CSR Report 2012

Malawi

Corporate Affairs &Communications Manager
Global Leaf

Reforestation and forest conservation areas in Africa

CSR Report 201212

Feature 2

From Forest Conservation andDevelopment to Co-habitation
with Forests
The JT Forest initiative for forest preservation has expanded to nine locations
across Japan and has diversified its scope of activity since it launched in 2005.

Diversified Forest Conservation Adapted to Local Characteristics

Future-Oriented Forest Development

to nine in Japan, including leased forests and a company-

Seven years after its start, the JT Forest initiative has expanded

creating a water source forest that sustains marine life. The

conservation as an indication of its appreciation of the blessings

owned one. To create bountiful forests desired by local resi-

to include new activities and has evolved in various ways.

development of the forest in Shakotan has been stalled forof Mother Nature that sustains its business and its wish to pre-dents, we are striving to develop sound forests that can be

In Shigetomi, Kagoshima Prefecture, we conducted a fieldmany years due to a lack of necessary workers and accessserve the natural environment. In this initiative, JT borrows

maintained and used in a sustainable way in cooperation withsurvey over a one-year period from July 2010 to examine theproblems. In the coastal area, marine plants have decreased in

The JT Group has engaged in the JT Forest initiative for forest

forestland across the country for a certain period of time, draws

local forestry cooperatives, which have extensive knowledge

ecology of animals and plants. The survey was conducted inrecent years, raising concern over possible effects not only on

up forest development plans according to the local needs andconcerning the history of the forests and the types of trees

cooperation with the local forestry cooperative to which wethe forest but also on the entire ecology of the river basin area.

provides support necessary for forest development while

there. In addition, we have designated the “Forestry Program

entrust forest maintenance and an environment-educational

In addition to forest development, we conducted an ecologicalexchanging opinions with experts and local governments.

Day,” when JT employees, local residents and local govern-

non-governmental organization which is utilizing the JT Forest

survey and monitoring and launched a 10-year activity aiming to

In Nakahechi, Wakayama Prefecture, where the initiative wasment officials work together in forest preservation activity, cre-

Shigetomi for a nature experience program. We have drawn up

create a water source forest that brings the blessings of nature

first launched in 2005, we are trying to revive a forest in a vast

ating a valuable opportunity for local community exchanges.

the Biodiversity Preservation Plan in light of the survey results

to the river basin area and the sea. We will contribute to foster-area deforested by logging. Rugged mountain surfaces are

based on the idea that the environment having a rich diversity

ing local personnel who can undertake the task of forest devel-

steadily regaining green cover as a result of forest developmentof plant and animal life is essential to the creation of a bountiful

opment by using this activity as an opportunity to acquire

activities such as the planting of around 180,000 trees and

JT Forest to Expand across Japan

forest. We will continue monitoring plant and animal life inknow-how on forest development. To make it possible toweeding. In 2006, we expanded the initiative to Kosuge,

A water source forest to sustain marine life

cooperation with local communities. We will also use forests asdevelop

Yamanashi Prefecture, to create a water source forest by

Shakotan (Hokkaido)

a source of knowledge concerning the formation of geologicalforests into the future, we will

structures due to volcanic activity and the history of local indus-

devote efforts to forest develop-

tries that used to be sustained by forests.

ment in cooperation with local

since December 2010

mixing broad leaf trees in a coniferous forest zone and to
Nahari, Kochi Prefecture, to preserve coral in the river mouth by

A coastal forest to protect people’s
lives against sandstorms

developing a bountiful forest through thinning. In 2007, weTsuruoka (Yamagata)extended the initiative to Chizu, Tottori Prefecture, where strip
roads are also being developed
to enable sustainable forest

In December 2010, we started activity under the JT Forest

since April 2009

initiative in Shakotan, a fishing town in Hokkaido, with a view tosince April 2008
Co-habitation with a rich diversity of life

varioussince April 2009

Yunomae (Kumamoto)activities, such as thinning,since March 2006
Reviving a logging-damaged forest

trol as well as support for the

Nakahechi (Wakayama)
since January 2005

use of experimental forest
techniquesinPreserving a forest with a long history

Chizu (Tottori)

accordance with the circum-

since August 2007

stances of each forest.
The number of areas where
we are implementing the JT
Present, 2012

A water source forest by
mixing broad leaf trees
in a coniferous forest zone

ment and animal damage con-development

Forest initiative has increased

communities and relevant organizations.

A field survey

Aiming for Forest Development that Respects the River and Sea Environment

Kosuge (Yamanashi)

weeding, strip road developJT Forest Nakahechi
Before preservation, 2005

sound

Nakatsugawa (Gifu)

planting, we are conducting
maintenancepreserve

A hometown forest with white flowers

conservation. In addition toforestand

A JT-owned forest in harmony
with environment and history

A forest to preserve coral

Shigetomi (Kagoshima)

since November 2006

Nahari (Kochi)

There are eight fishing ports on the coastal area of Shakotan while forests cover 80% of the town. Fishing is
an important industry for Shakotan, which used to
thrive on abundant hauls of herring.
In recent years, the “isoyake” (sea desertification)
phenomenon, which refers to an excessive decline inmarine algae, has become worse. As a result, organisms feeding on marine algae and breeding grounds
have decreased, raising concern over possible effects
on fishery resources and reminding us of the importance of the relation between forests and rivers.
Awareness of the need to preserve forests is growing
among local residents, not to mention local fishermen.
We are conducting forest preservation activity torestore our forests and seas to a sound condition while
also giving consideration to river and marine life as well
as plant and animal life on land.
In a situation like this, we are grateful for the forest
development being achieved through collaborative
activity under the JT Forest initiative. We expect that
this will help to create jobs and foster personnel who
can undertake future preservation activity.
An exchange between JT employees, their family
members and local residents provides an opportunity
to raise awareness about the blessings of forests. We
hope that an activity like this will spread to various
fields, including industry, welfare, education andculture.

Hajime Nishikawa
Chief, Agriculture,
Forestryand Fisheries Division
Shakotan Town

JT Forest (Japanese)
URL

13

CSR Report 2012www.jti.co.jp/csr/forest
CSR Report 201214

Appropriate Manufacturing Process and Consumer Services

CSR Activities in the Tobacco Business

Youth Smoking Prevention Initiatives

Voluntary Rules for Advertising and Sales Promotion
JT has been in compliance with voluntary regulations for

While adults have the freedom to choose smoking as a per-advertising and sales promotion of tobacco products in thesonal pleasure, being fully informed about the risks

domestic market since the days of the Japan Tobacco &involved, minors must not smoke for any reason. They are

Salt Public Corporation to prevent youth smoking, whilein the process of development, both physically and men-phasing out advertising through the public media fromtally, with their personalities, lifestyles, and discretion yet

1969.

to be established. Naturally, they are legally prohibited

Likewise, the tobacco industry has been in compliancefrom smoking.

with voluntary rules set by TIOJ since its establishment in
1987; TV and radio advertising was discontinued in April
1998, followed by advertising on public transportation in

be addressed by society as a whole, including households.

October 2004 and on outdoor billboard advertising in April

JT will thus continue to take a variety of proactive mea-

2005.

sures to prevent youth smoking, while further enhancing

You may find details of the voluntary rules in the domesticcooperation with concerned parties

market on the website of TIOJ.
TIOJ (Japanese)

Community Youth Smoking Prevention Programs

URL

Supply Chain Management

Youth smoking is a problem that cannot be solved by the
tobacco industry alone. It is a social problem that needs toAppropriate Manufacturing Process
and Consumer Services

CSR Activities
in the Tobacco
Business

www.tioj.or.jp

In cooperation with local tobacconist associations, municipalities, and police authorities, JT organizes the YouthAge Verification Cigarette Vending Machines

Smoking Prevention Council and participates in a variety of

The key factor for youth smoking prevention is to prevent

educational campaigns to prevent youth smoking.

minors from buying cigarettes through vending machines.

The Tobacco Institute of Japan (TIOJ), meanwhile, sets

The tobacco industry, therefore, has been rolling out pro-

JT places a premium on providing consumers with valu-

JT is committed to fulfilling its social responsibility“Youth Smoking Prevention Awareness Month” every year,

grams such as placement of campaign stickers and volun-

able products and services, while fulfilling the social

through a variety of approaches to continue meeting

while rolling out youth smoking prevention campaigns andtary restrictions on late-night sales through vending ma-

responsibility of a tobacco company. To this end, JT has

expectations of consumers and society on a higher level.

producing posters and stickers for youth smoking preven-chines, with age verification cigarette-vending machines

been striving to prevent youth smoking and create an envi-

tion, in which JT participates as a member.

introduced in 2008.

ronment where smokers and nonsmokers can coexist in

Likewise, the Japan Tobacconist Federation (JTF) distrib-

TIOJ, JTF, and the Japan Vending Machine Manufacturers

harmony.

utes flyers and holds street events during the Youth Smok-

Association (JVMA) play a central role in introducing age

For example, efforts are underway with municipalities, theing Prevention Awareness Month.

verification cigarette-vending machines. The “taspo” IC

Strengthening of
the Business Foundation

To Meet Expectations of Consumers and Society on a Higher Levelcard, issued exclusively for adults, is required to buy ciga-

police, and those who are engaged in tobacco business torettes from these vending machines. Cigarette-vending ma-

through educational campaigns and newspaper ads. In

In addition to industry-wide activities, JT places ads inchines all over the country have been almost replaced withaddition, cigarette-vending machines have been almost

national and local newspapers to raise public awareness of

their age verification counterparts and the number of “taspo” IC cards issued exceeded 10 million in 2011.

replaced with those equipped with an age verification sys-

youth smoking prevention. In 2011, for example, such ads

tem to prevent minors from buying cigarettes.

were placed in 5 national newspapers and 43 local newspa-

JT is also rolling out a campaign to improve smoking man-pers.

The tobacco industry will continue to distribute “taspo”
cards, while JT is committed to playing a key role in preventing youth smoking as a leading tobacco company.

ners, while setting up smoking areas, to achieve harmoni-

Approaches to Protecting
the Global Environment

prevent youth smoking, a priority for the tobacco industry,

Educational Campaigns Through Newspaper Ads

ous coexistence between smokers and nonsmokers. For
example, educational campaigns through JT’s website andTV commercials are in place to have smokers realize andthink about the importance of smoking manners and act

separation consulting services to facility owners.

Akira Saeki
President, Tobacco Business

Youth Smoking Prevention Awareness Ads in Newspapers

15

CSR Report 2012

Age verification cigarette vending machine“taspo” IC card

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

accordingly. JT is collaborating with municipalities to set
up smoking areas in public places and providing smoke

16

Appropriate Manufacturing Process
and Consumer Services

Improvement of the Smoking Environment

Pick Up and You Will Love Your City Initiative

When separating smoking and nonsmoking areas, JT

JT has been rolling out a citizen participation cleanup cam-

Under the slogan “Creating an Environment Friendly toplaces a premium on creating an environment that gives

paign called the “Pick Up and You Will Love Your City”

Both Smokers and Nonsmokers,” JT is working on smok-

consideration to both smokers and nonsmokers.

initiative in 47 prefectures nationwide to help people

To Provide Consumers with Products That Meet Their
Needs

JT and municipalities nationwide, therefore, have beendevelop the mindset of “not littering on the street” throughJT is striving to improve and maintain product quality inronment, and promoting citizen participation cleanup

jointly setting up smoking areas, while rolling out cam-the experience of “picking up trash.” This campaign—aevery aspect of operations, from R&D to procurement,

activities in an effort to achieve a society where smokers

paigns to reduce cigarette-butt littering and improve smok-

joint initiative with municipalities, companies, schools, vol-manufacturing, and sales, to provide consumers with prod-

and nonsmokers can coexist in harmony, which is posted

ing manners. As of the end of March 2012, more than 1,000

unteer bodies, and planning committees and participants in

ucts that meet their needs.

on JT’s website and advertised on TV.

smoking areas had been set up in collaboration with about

local events—has been carried out on more than 1,300

For example, a massive amount of data on preference on

230 municipalities, resulting in significant decreases inoccasions, with about 1,300,000 participants and 2,674 par-taste and flavor is gathered and analyzed to develop prod-

cigarette-butt littering in some areas.

ties teaming up for it (as of March 2012).

ucts that satisfy the palate of consumers. As for raw material

JT’s Approaches (Japanese)

JT will further promote

procurement and manufacturing, a traceability system isthe campaign, hoping tobeing developed to keep track of the flow of products,

ers and managers toincrease the number ofthereby further improving and strengthening the quality-

improve the smoking

those who do not litterassurance system. At the same time, sales representatives

environment,

whileon the street, while call-monitor the freshness of products on the shelves and inproviding consulting

ing for broader participa-

vending machines to deliver quality products to consumers.

services for smoketion and cooperation.

separation at termi-

Pick Up and You Will Love Your City initiative

nal stations, airports,

www.jti.co.jp/sstyle/manners

office buildings, andThe sales forces and the Customer Service Center, mean-

Pick Up and You Will Love Your City initiative (Japanese)
Smoking Area at the Haneda Airport

URL

www.jti.co.jp/sstyle/manners/clean

Improving Smoking Manners

cial facilities, where a large number of people gather.

As the creation of a society where smokers and nonsmok-

JT’s smoke separation consulting services are designed toers can coexist in harmony also requires improvement ofprovide facility owners and managers with solutions for

smoking manners, JT is calling for smokers to give consid-

smoke separation that gives consideration to nonsmokers

eration to people around them, including nonsmokers.

and at the same time satisfies smokers. The JT headquar-“The Kumamoto Fall Castle Festival” (October 2011)

can be adjusted to recreate various

retailers, and smoking areas to have smokers realize andsmoking environments and demon-

think about the importance of smoking manners and act

strate smoke separation methods. In

Shinji Harano, Chairman, Ginnan Festival Steering Committee

roomthemes regarding smoking manners are illustrated andsuch as exhaust airflow and layout

accordingly.

addition,thewebsiteconditions“Tobacco

World” and the brochure “Smoke
Separation

Consulting

Services”

show basic information and key
points in smoke separation as well as
details of smoke separation consult-

Brochure“Smoke Separation
Consulting Services”

While shops in a local shopping district
and other groups set up booths at the festival site to offer local delicacies, litteringof used food and beverage containers has
been a problem. But the amount of such
litter decreased thanks to the initiative,
and we are very grateful for that.

ing services.
JT, moreover, is encouraging restaurants to put up stickers
their entrances to guide customers. Restaurant managers,
meanwhile, can design their own signs by choosing figuresand colors posted on JT’s website.
Smoking Manner Ads

JT’s Approaches (Advertising/Japanese)
URL

CSR Report 2012www.jti.co.jp/sstyle/manners/adJT’s Approaches (Smoke Separation/Japanese)
URL

www.jti.co.jp/sstyle/manners/bunen

duct quality.

Customer Service Center

Communication of Appropriate Information to Consumers
While opinions abound on tobacco products, the management of tobacco business is expected to be faithful andtransparent. In order to meet such expectations, JT disseminates a variety of information on tobacco and smoking.
Regulatory authorities around the world, for example,
speak the same language regarding the harmful effects ofsmoking, which causes or increases the risks of many diseases. JT, therefore, helps these authorities advise smokers, while informing smokers of the health risks of smoking
and the specifications of JT’s products. On the domestic
front, meanwhile, the Ordinance of the Ministry of Finance,
based on the Tobacco Industries Act, mandates that health

Masataka Hayashi
Assistant Section Head, Citizen Cooperative Promotion Section, Kumamoto City

The “Pick Up and You Will Love Your City”
initiative, I think, is contributing to reducing litter on the street and improving citizens’ manners. Hopefully, the initiative
will further raise their awareness of voluntary manners.

caution and the amount of tar and nicotine must be indicated on cigarette packages, with which JT fully complies.
JT’s views on tobacco products, smoking, and its healthrisks as well as information about additives used in JT’s
products are posted on JT’s website.
JT’s Philosophy on Tobacco Business andAdults’ Responsibilities and Choices (Japanese)
URL

www.jti.co.jp/corporate/enterprise/tabacco/responsibilities

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

and posters, which indicate the smoking environment, at

improve and maintain pro-Approaches to Protecting
the Global Environment

spread through newspapers, public transportation, tobacco

ters houses a smoke separation test

Can Change Your Manners,” many common scenes andphysicalproducts, which are fed todepartments concerned toParticipants’ Opinions“The Kumamoto Fall Castle Festival” is a 15-day festival
held every fall at the Castle of Kumamoto. The “Pick Up
and You Will Love Your City” initiative was jointly implemented for two days by the Citizen Cooperative Promotion
Section of the Kumamoto City, the Kumamoto Kamimashiki Regional Federation, and local communities, with
about 2,000 people taking part in it.

wherevaluable opinions on JT’s
the management and alllarge-scale commer-

For example, with the catch line “Pay Attention and You

while, gather consumers’
Strengthening of
the Business Foundation

URL

At the same time, JT is working with a variety of parties
such as facility own-

Supply Chain Management

ing manner improvement, creating a better smoking envi-

JT’s Approaches Advertised in Newspapers

17

To Meet Expectations of Consumers

Appropriate Manufacturing Process
and Consumer Services

Creation of an Environment Where Smokers
and Nonsmokers Can Coexist in Harmony

18

Appropriate Manufacturing Process
and Consumer Services

CSR Activities in the Pharmaceutical Business

Strict Compliance with Laws and Regulations

Ethical Considerations for Experiments and Studies

Compliance with Pharmaceutical Regulations andStandards

Ethical Considerations for Animal Experiments

A number of laws and regulations apply to new drug devel-

ment in determining the safety and efficacy of drugs. When con-opment, some of which include verification of the safety of

ducting animal experiments, the pharmaceutical business exam-

Animal experiments are essential part of pharmaceutical develop-

drug candidate compounds at the preclinical stage and assur-

ines their scientific rationality, respects the lives of animals, andance of safety of trialists during clinical development. The JT

always takes the concept of animal welfare into consideration.
The Central Pharmaceutical Research Institute set in-house

relevant laws and regulations, while controlling the safety of

regulations for animal experiments in accordance with the Law

its drugs through strict in-house audits to check if the pre-of Humane Treatment and Management of Animals (Law 105,

scribed operating procedures are appropriately followed.

instituted in 1973) and its relevant guidelines (Notification

In addition, data on the efficacy and side effects of drugs on

0601005, issued by the Ministry of Health, Labour and Welfare in

the market are being gathered to provide patients with drugs

2006) to properly manage animal experiments and breed experi-

in an effective and safe manner.

mental animals. Specifically, the animal experiment committee

Proper Management of Chemical Substances

ducted in accordance with the 3R concepts*. The pharmaceuticalis in place to examine and ensure that experiments are conbusiness, meanwhile, was certified by a third party for its proper
management of animal experiments, etc.

cal substances, with more rigorous in-house regulations and*3R Concepts Replacement: Where possible, opt for test methods using no experimental animals
Reduction: Minimize the number of animals used for experiments
Refinement: Do not let experimental animals suffer unnecessary
painsystems in place to educate employees on safety management.
The Central Pharmaceutical Research Institute, which spearWe are committed to achieving our most important mis-

JT and Torii Pharmaceutical Co., Ltd., a JT Group com-heads the JT Group’s new drug development, is striving tosion, which is to “develop innovative, unique, and globallypany, will continue to make concerted efforts to develop

improve and put into practice its chemical substance manage-

competitive drugs.”

drugs to be respected and appreciated by patients andment system. Torii Pharmaceuticals Co., Ltd., a JT Group com-As we are engaged in a business that has a direct impact

medical staff around the world.

pany manufacturing and distributing pharmaceuticals, system-

The Ethics Review Committee on Human Genome/Gene Analy-

on human life, we must always have a strong sense of

atically manages chemical substances in accordance with pre-sis is in place to examine the ethical and scientific validity of

responsibility, ethics, and mission. Our priority in CSR isscribed rules and procedures, setting up management catego-studies in accordance with the Ethical Guidelines for Humanthus to “achieve the highest level of ethical standards as aries based on the characteristics of each chemical substance.

Genome/Gene Analysis (Notification 1, issued by the Ministry of

Ethical Considerations for Human Genome/GeneAnalysis

Education, Culture, Sports, Science and Technology, the Ministry

pharmaceutical manufacturer.” Specifically, we are operat-of Health, Labour and Welfare and the Ministry of Economy,

regulations and standards, and properly managing chemi-

The Japan Pharmaceutical Manufacturers Association (JPMA)

Trade and Industry in 2001).

cal substances. At the same time, Torii Pharmaceutical Co.,

sets forth the “JPMA Promotion Code for Prescription Drugs,”

Ltd., a JT Group company manufacturing and distributing

a code of conduct for pharmaceutical companies in promoting

pharmaceuticals, sees to it that the promotion code is

medical supplies and prescription drugs. Torii Pharmaceuti-

Awareness-Raising Programswith a Focus on Medical Services

followed and awareness-raising programs are put into

cals Co., Ltd., a JT Group company manufacturing and distrib-

Torii Pharmaceutical Co., Ltd. has been providing tips about how

practice with a focus on medical services.

uting pharmaceuticals, holds study sessions and seminars toto deal with diseases and stay healthy through its website andDrugs are indispensable for the relief of patients suffering

strictly comply with its own code of conduct in accordancebrochures, helping patients improve their quality of life. The

from diseases, while failure to supply them could have awith the promotion code, while educational programs are in

website, moreover, features a section that explains the mecha-

serious impact on their lives. We, therefore, give priority toplace to develop qualified MRs (medical representatives).

nisms of diseases and their symptoms. In addition, a humorous

Approaches Based on Patients’ Opinions

co-held with the Japan Association

poem contest for artificial dialysis, which causes itching, wasensuring the supply of drugs. The Great East Japan Earth-

Muneaki Fujimoto
President, Pharmaceutical Business

Torii Pharmaceutical Co., Ltd. is committed to fulfilling theof Kidney Disease Patients (JAKDP)

responsibilities of a pharmaceutical company, striving toto raise public awareness of dialysis

improve patients’ quality of life from their perspectives. For

complications.

example, easy-to-swallow formulations were developed atpatients’ requests, with efforts underway to develop formulations from the standpoint of patients.

19

CSR Report 2012

Poem contest for raising awareness

Torii Pharmaceutical Co., Ltd.
URL

www.torii.co.jp/en

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

quake, meanwhile, did not have a direct impact on our busiply system.

Approaches to Protecting
the Global Environment

ing with integrity, strictly complying with pharmaceutical

Compliance with the Promotion Codeness, but it brought home the importance of a robust sup-Strengthening of
the Business Foundation

Aiming to Achieve the Highest Level of Ethical Standards as a Pharmaceutical Manufacturer

The JT Group continues to comply with a variety of laws andregulations concerning the management of designated chemi-

Supply Chain Management

Group, therefore, has a system in place to comply with

Appropriate Manufacturing Process
and Consumer Services

CSR Activities
in the PharmaceuticalBusiness

20

Appropriate Manufacturing Process
and Consumer Services

CSR Activities in the Food Business

JT Group Food Safety Policy

Better Serving Consumers
Communicating Food Safety Information

consumers with safe and reliable products, the “JT GroupThe JT Group posts its food safety control programs on its

Food Safety Policy” is in place and is shared across thewebsites to give customers a sense of assurance.

group, serving as the basis of all operations.

The Soft Drink Business Division’s website, for example,

The policy stipulates that each employee must make thefeatures information such as raw materials for products

utmost efforts to ensure food safety, with consumers’ opin-

and their nutrient components, and quality-assurance

ions taken into consideration in improving the safety andapproaches, from product development to delivery of prod-

quality of products.

ucts to consumers.
Likewise, the website of TableMark Co., Ltd. shows how to

Approaches to Reducing Risks
All frozen-food factories of the JT Group and its outsourc-

products are manufactured and where their ingredients are
sourced from) and food supply chain safety management.

ing companies obtained ISO 22000 certification for foodIn addition, the “OISHISA-KENSAKU” on the website issafety. The JT Group is also working on food defense to

designed to track production records (rice production

deal with intentional attack on the foods it produces. Spe-areas, suppliers, factories, production dates, etc.) from thecific measures include putting in place a security system,

best-before date printed on thesuch as tight control of facilities, water sources, and toxic

packages and trays of the “Takitatechemical substances; setting of restricted areas for both

Gohan” series. Production pro-

employees and visitors; and restrictions on bringing in per-cesses are also shown on the web-sonal belongings. These are all included in a food defense

site, where a virtual factory tour isoffered, in addition to a real tour of
the Uonuma Mizunosato Factory.

The JT Group is committed to providing safe and reliableturers of foods, and is the very basis of our lives. The JT

plan for implementation by all factories and distribution

products to consumers, hoping to “provide products forGroup, therefore, will continue to maintain the highest

centers.

your loved ones.” The JT Group, therefore, has been striv-

standard for safety control to provide consumers with safe

ing to set and meet the highest standard for safety control,

and reliable products.

Gallery for Uonuma Mizunosato
Factory Tour

Reflecting Consumers’ Opinions in Products

Strengthening of
the Business Foundation

To Provide Safe and Reliable Products to Consumers

read the labeling on packages (information about where its

Supply Chain Management

As the JT Group’s food business is tasked with providing

Appropriate Manufacturing Process
and Consumer Services

CSR Activities
in the FoodBusiness

Consumers’ valuable opinions are communicated to all

focusing on reducing risks, better serving consumers andstrengthening the corporate organization and system.

departments concerned and shared within the JT Group to

In an effort to reduce risks, for example, a variety of pro-develop products and improve their quality.

grams are in place for raw material procurement andFood Defense Meeting at a Factory* Food defense is designed to protect foods from planned or intentional
attack (contamination, etc.).

information and factory tours are offered to better serve
consumers, thereby having them select the JT Group’s
products with a sense of security. Measures to strengthen

Strengthening the Corporate
Organization and System

the corporate organization and system, meanwhile, include
appointment of food safety control representatives, whichconstitute an independent organization tasked with inte-With “food safety control representatives” in place both at

grated food safety control, and introduction of food safety

TableMark Co., Ltd. and at the JT’s Soft Drink Business Divi-

Examples of Improvements
Consumers’ Opinion

Improvement Made

Mineral Water“Echigo-no-meisui”

A cut-here line is printed along the perforated line (as from production in May 2012)

The label on the PET
bottle is hard to peel
off because the perforated line is invisible.

sion, group-wide efforts are underway to strengthen the

All Beverages

group-wide safety control system—all designed to create a

corporate organization and system.

The way the bestbefore date is indicated is somewhat
confusing.

system to promote safety control across the JT Group.
Safety improvement is a never-ending effort for manufac-

Ryoko Nagata
Head of Beverage Business

Miyoharu Hino
President & CEO
TableMark Co., Ltd.

At the same time, “food safety advisors” consisting of
external experts evaluate and advise on the JT Group’s

The best-before date, for example, is indicated as 2011.10.02 (October 2, 2011)
instead of 111002.

Towards Harmonious Relationships
with Local Communities

advisers (external experts) who evaluate and advise on thefood safety control system, which is reflected in our operations.
TableMark Co., Ltd (Japanese)
URL

21

CSR Report 2012www.tablemark.co.jp

JT Beverage website (Japanese)
URL

Approaches to Protecting
the Global Environment

manufacturing at home and abroad, with emphasis on
supply-chain safety management. In addition, food safety

www.jti.co.jp/softdrink

CSR Report 201222

Supply Chain Management

Supply Chain Management in the JT Group Business

Activities in the Tobacco Business

JT Group Procurement Policy
Supply Chain Management in JT Group’s Business

Domestic Leaf-Tobacco Procurement

Pharmaceutical companies manufacturing drugs that have

While consumers and society pay greater attention to thea direct impact on human life and health must ensure highquality of raw materials, the JT Group places a premium onlevels of quality and safety in every phase of their opera-

producing quality leaf tobacco.

tions, from R&D of drugs to post-marketing surveillance.

The JT Group’s domestic leaf-tobacco production depends

Torii Pharmaceuticals Co., Ltd., a JT Group company manufac-

on procuring raw materials from contract leaf-tobacco

turing and distributing pharmaceuticals, gives the highest prior-

farmers nationwide.

ity to the safety of patients and sees to it that the quality and

The very basis of agriculture lies in soil preparation, in

safety of drugs are maintained throughout the entire process,which the use of organic fertilizers is effective. JT encour-from raw material procurement to manufacturing, shipment,

ages leaf-tobacco farmers to reduce the use of chemical fer-and delivery to patients. Accordingly, raw material suppliers andtilizers, replacing them with quality compost and mixed

outsourcing companies are selected through rigorous screeningorganic fertilizers.

to ensure the quality of finished products. In addition, existing

At the same time, explicit standards and rules are in place

suppliers are regularly audited to maintain the quality of drugs

This policy stipulates that compliance be observed and due

to regulate the use and handling of agrochemicals for leaf-

until they are delivered to patients. In order to abide by relevantlems through management of corporate supply chains.

consideration be paid to human rights and the environment

tobacco cultivation, while meetings and seminars are heldlaws and regulations, moreover, the general marketing compli-

While the JT Group has been putting forward CSR-oriented

when procuring materials.

for all contract farmers to minimize agrochemical use in anance officer, the quality assurance supervisor and the safety

procurement such as green procurement, the JT Group

Accordingly, the JT Group will continue expanding coop-appropriate way. There is also a system to have them

management supervisor known as “manufacturing/marketing

Procurement Policy was established to further meet social

eration with suppliers to pursue CSR-oriented procurement

report on the amount of agrochemicals used and to analyze

triumvirate” are in place, working to ensure the quality of drugs

expectations and fulfill corporate social responsibilities.

through its entire supply chain.

samples of all leaf tobacco upon purchasing, ensuring theand the safety of those already on the market.

traceability of individual farmers
for

JT Group Responsible Procurement Policy
The mission of the JT Group is to create, develop and nurture its unique brands to win consumer trust, while understanding and respecting the environment, and the diversity of societies and individuals. To achieve the mission of the JT Group,
the JT Group operates procurement in the manner as stated in the JT Group Responsible Procurement Policy.

problem-identification

pur-

Activities in the Food Businessposes.

The Food Business places a premium on the highest level

JT and its contract leaf-tobacco
farmers will continue making aof safety control to provide consumers with safe and reli-concerted effort to produce reli-able products.

able leaf tobacco.

Leaf-tobacco farm

1. Implementation of Compliance

Producing safe foods starts from procuring safe, highquality raw materials. The JT Group, therefore, makes it

Overseas Leaf-Tobacco Procurement

compulsory for suppliers to turn in quality assurance,● Providing appropriate measures to protect all information provided to us by our suppliers for procurement activities.

Japan Tobacco International (JTI, headquartered in Ge-

which are carefully examined. Regarding key raw materi-

Guidelines for Conduct.

2. Environment
JT Group operates procurement in a manner to pay due consideration to the environment in accordance with the basic
principle of JT Group Environment Charter.

3. Selection of Suppliersals, moreover, pesticide residues and antibiotics are moni-overseas for the JT Group. Sustainable development of

tored and inspected, while raw material factories are regu-

tobacco-producing areas, meanwhile, is key to maintaining

larly audited. As for raw materials produced overseas

the supply of quality leaf tobacco. JTI is thus committed to(Thailand, Vietnam, China, etc.), the conditions of agricul-

solving social problems, while playing a part in developing

tural farms (the soil, water quality, cultivation conditions,tobacco-producing areas and improving farmers’ living

and pesticide management), breeding farms, and fish

standards.

farms are inspected to ensure the safety of finished prod-

As major tobacco-producing areas in Africa and other par-ucts right from the production of raw materials.

ts of the world face serious problems such as deforestation,

Production processes are also monitored according to rig-poverty, low agricultural productivity, and child labor, JTI is

orous standards. While all frozen food factories of the JT

working on a variety of programs, including those for a for-Group and its outsourcing companies have obtained ISO

estation, forest conservation, construction of irrigation sys-

22000 certification for foodtems, and agricultural technical assistance. It is also

safety, security and chemical

engaged in programs to provide children with opportuni-

management, too, are audited,ties for education and to educate local communities includ-with regular as well as no-

ing tobacco-leaf farmers, thereby eliminating child labor

notice audits conducted at fac-and dangerous work.

tories at home and abroad.

Related pages

Inspection by Food Safety Advisors

Towards Harmonious Relationships
with Local Communities

Our supplier selection is based upon our review of a supplier’s quality, price and service. In particular, JT Group willconsider the supplier’s historical success with respect to the delivery of goods and services to be supplied to JT Group,
as well as the supplier’s capability to ensure ongoing delivery of these requested goods and services. In addition tothese criteria, JT Group will consider the following:● The supplier’s compliance with relevant laws and regulations for each country and region.
● The supplier’s policies that respect human rights and social norms.
● Whether the supplier has appropriate measures to pay due consideration to the environment.
● Whether the supplier has appropriate measures to protect confidential information, trade secrets and any otherinformation provided by business partners.
● Whether the supplier has appropriate measures that ensure business continuity, free from any operational andfinancial instability.

neva, Switzerland) is in charge of procuring leaf tobacco

Approaches to Protecting
the Global Environment● Acting in a manner to comply with the legislation and regulations relating to procurement as well as social norms.
● Operating procurement activities in appropriate and sincere manner that follows JT Group Principles of Conduct andStrengthening of
the Business Foundation

There has been a growing need to deal with social prob-

Supply Chain Management

JT Group Responsible Procurement Policy

Activities in the Pharmaceutical BusinessAppropriate Manufacturing Process
and Consumer Services

Supply Chain
Management

p9-12

Feature1: Social Contributions in Tobacco Leaf Producing Regions

23

CSR Report 2012

CSR Report 201224

Strengthening of the Business Foundation

Corporate GovernanceCompliance

JT Group Compliance Management

The Board of Directors—which is tasked with developing the JT

We at the JT Group define “compliance” as “Actions for the

JT Group is committed to growing in a sound and sustain-

Group’s management strategy, making decisions on important

shared JT Group Mission, based on the values and ethics

ness Manual in place, the JT Group strives to prevent andable way. While it is paramount that high ethical standards

issues, and supervising all the group’s operations—meets once a

we must hold in order to become better corporate employ-

reduce risks. In the event of an emergency and a disaster, JT is

be upheld and responsible management be practiced, themonth in principle and on more occasions, if necessary, to make deci-ees and citizens.” In FY 2011, the “Principles of Conduct”

ready to set up a crisis management task force headed by the

JT Group believes that highly transparent management

sions regarding the matters specified by laws and regulations andand the “Guidelines for Conduct,” both of which were set in

President and supervised by the Corporate Strategy Divisionand effective communication with all stakeholders on infor-

other important issues, supervise business execution, and receive

2000, were integrated into the “JT Group Code of Conduct”

and a local emergency response headquarters in disaster-

mation and decision making regarding management willreports from the directors on its status. The chairman, meanwhile, isto further improve the JT Group’s compliance and maintainstricken areas, and to make prompt and proper responses

lead to superior corporate governance.

With the Risk Management Guidelines and Disaster Prepared-

The JT Group,committed to supervising management as a non-executive director.

its system and to help employees practice compliance. At

through close cooperation between the relevant departments

therefore, will continue to place a premium on strengthen-In order to keep pace with the rapidly changing business environ-the same time, the Compliance Committee was reshuffled,and divisions.

ing of corporate governance.

ment and optimize the group’s management, the JT Group adopted

with external experts constituting more than half of the

The Disaster Preparedness Manual was revised in FY 2011 tomembers, to strengthen corporate governance.

better deal with disasters. Specifically, key items such as initial

Efforts have been underway to downsize the board of

the Executive Officer System, under which executive officers

directors, separate the decision-making process from theappointed by the Board of Directors execute business in their respec-

business management process through an Executive Offi-

tive areas of responsibility, in accordance with a group-wide businessstrategy decided by the board, by exercising the authority delegatedto them.

management processes. At the same time, an advisory

JT utilizes the Audit Board System, under which four auditorscommittee comprised of outside experts is in place, where(including three outside auditors), in their capacity as an independent

they advise the management from a broad perspective

agent with a mandate from shareholders, examine the performance

regarding how the company should operate over the mid toof duties by directors and executive officers in order to ensure soundlong-term, and other issues of similar importance.

and sustainable growth and maintain high levels of accountability

Board of Directors
Compliance Committee

Advice and Improvement
vementCompliance
Promotion Department*

Cooperation

ReportCompliance Office

appropriate environment for audits by allocating sufficient staff to theInternal Control System

Auditor’s Office as an organization supporting the auditors in per-

The JT Group has been maintaining and improving a sys-forming their duties, with the allocation reviewed as needed in con-tion system for employees, disaster relief programs, and business continuity were reviewed on the basis of lessons learned
from the Great East Japan Earthquake, and measures to deal
with disasters on holidays and at night were also revised. Eachdivision’s business continuity plan will also be reviewed, andCompliance Issues Regarding
the Code of Conduct

revised as necessary, in view of the nature of its business.

Tobacco Business
Headquarters

PharmaceuticalBusiness Division

Food BusinessCorporateand society by minimizing disaster damage, ensure the safety ofGroup Companies

Group Companies

Group Companies

Group Companies

The JT Group strives to meet the expectations of consumers
its employees, and resume business operations quickly.

* A General Term for the Corporate and Other Departments Supervising theCode of Conduct

Strengthening Information Security

tem to optimize its operations by increasing the credibility

sultation with the auditors.

The “Information Security Policy” helps the JT Group toof compliance and its financial reports, managing risks, andWhen directors and executive officers detect any matter that may

protect from threats, by ensuring safe and proper use of its

conducting internal audits. We will continue these efforts

cause substantial damage to the company, they are due to report it towhile reviewing and revising the current system as neces-the Audit Board.

The JT Group develops the Compliance Implementation Plan

The “Information Security Handbook,” posted on thesary and will strive to maintain and enhance our corporate

Auditors are entitled to attend not only meetings of the Board of

every year to continuously improve the quality of its operations.

intranet and available to all JT Group employees, provides

Directors but also other important meetings, and they usually attend

Accordingly, October is designated as “Compliance Promotion

a set of guidelines and rules on information security.

meetings of the Executive Committee.

Month” to practice compliance, where workshop meetings are

In addition, e-learning programs are offered every year toheld and JT Group Compliance Survey is conducted for all em-

improve employees’ awareness on information security.

ployees, while seminars such as those for e-learning are offered

Corporate Governance System

to managers. In addition, a variety of level-specific seminars are

General Meeting of Shareholders
Selection or dismissalof members

Selection or
dismissal ofmembers

Selection or dismissal of members

Board of Directors
ReportAdvisory Committee

Lawyers

AdviceOperational Review
and Business
Assurance DivisionInternal audit
Group audit

Audit Board
Compensation
Advisory Panel

Compliance Office

Executive Committee
Executive Officers
Departments
Group Companies

Accounting audit / Operating audit

Consultation and Reporting Systemphase of operations is not only a legal requirement but alsoa social responsibility. Based on this recognition, the JT

Compliance consultation and reporting counters are inGroup establishes systems, regulations, safety control

place both in and outside the company, while consultations

measures, and other relevant programs which reflect theand reports received are properly dealt with according tocontents of the statement. At the same time, in-house train-

relevant laws and internal regulations. The consultation anding is offered to employees to raise awareness of personal

reporting system is being improved and properly managed

information protection.

to prevent problems from arising and improve the com-

Privacy Statementpany’s ability to govern itself.

CSR Report 2012

JT issues a statement about the protection of personal
information. Protecting personal information in every

Compliance Committee

President & CEO
Report /ProposalAuditor’s OfficeProtection of Personal Information

URL

www.jt.com/privacy

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

Advice(to Representative
Directors)

Supervisionof the performance

Accounting
audit

Review of the policy and the rule
relating to compensation for board
members and executive officers
Introduction of compliance-related mattersheld to raise awareness of compliance among employees andhelp them practice it on a day-to-day basis.

Accounting audit / Operating audit

Audit report

Independent
Auditors

information assets.

Approaches to Protecting
the Global Environment

systems so as to ensure appropriate business execution.

Compliance Implementation Activities

Strengthening of
the Business Foundationcer System, and introduce outside directors to accelerate
and improve the group’s decision-making and businessactions by employees, the chain of command, a safety confirmaCompliance Promotion System

Supply Chain Management

Based on the framework of solid corporate governance, theand transparency. To this end, efforts are underway to develop an

25

Risk Management System

Appropriate Manufacturing Process
and Consumer Services

Directors, Board of Directors /Auditors, Board of Auditors

Basic Concept of Corporate GovernanceRisk Management

26

Strengthening of
the Business Foundation

Human Resources Management

Human Resources Development

JT is recruiting motivated individuals to ensure sustainable

JT is upgrading its training and educational programs to

Based on the recognition that “the growth through practice

growth.

help each employee grow as a professional.

JT believes that each employee’s respect for human rightsof the JT Group Way by each individual JT Group employee

In recruiting new graduates, for example, we focus on their

For example, many employees participate in optional pro-and others’ individualities and personalities leads to creat-

drives the growth of the JT Group in a changing businessmotivation and abilities regardless of their gender, nation-

grams to acquire basic knowledge and skills necessary foring and maintaining a fair working environment. The Basicenvironment,” four basic principles are in place.

ality, or educational background, while disseminating

their jobs, such as those for marketing, financial account-

Policy on Human Rights Education is thus in place to main-

1) Providing all employees of the JT Group companies with

ample information on JT through the website, job semi-ing, logical thinking, and inventive and communication

tain fairness in recruitment and treatment, based on an international perspective for human rights.

opportunities to grow and develop in their careers

skills. These programs are open to all employees, regard-

In addition to recruiting new graduates in spring, a systemless of their departments, jobs, and ages.

To raise awareness of human rights among employees,3) Treating all employees of JT Group companies fairly

is in place for recruitment in summer and for foreign-

There are also level-specific programs for learning profes-

moreover, learning materials are posted on the intranet and4) Respecting the diversity, while seeking talents widely

student recruitment to employ a variety of individuals withsional knowledge and skills, while each department has its

e-learning programs are offered regularly.

We respect fundamental human rights as we respect eachdifferent backgrounds.

own job-specific programs designed for learning special-

employee as an individual, under a universal principle of

We also recruit mid-career professionals, providing themties.

not discriminating against employees on account of gender,

with opportunities to leverage their experience and knowl-race, nationality, creed, handicap, employment status, etc.

edge.

Career Development Support Programs
Career development support programs include career in-Management Focusing on Employee Growth
based on the concept that “employees contribute to thecompany through their work and the company treats themsis is on definition of the significance and nature of eachjob, specialties, qualification-based salary, fair treatment
based on the performance-based appra-

Off
er
i

th
ow
gr

self-sustained development, while efforts

112

121

R&D personnel

56

54

44

provide employees with opportunities to review and deter-

34

38

36

mine their career paths from a mid to long-term perspec-Mid-career personnel(main career track, R&D personnel)
Job separation rate(within three years of employment)*

92

55

─

tive.

2.0%

2.0%

1.2%

Human Resources Development

can improve and make the most of their abilities, while en-

nt of

th

lo
emp

ro w

ge

t

he

tm e

pos

iti o n a n d e

oy
m pl

e

Establishment of a Fair Merit System and Enhancement of the Organizational Strength

FY 2010concerned. The system provides employees who aim forself-sustained growth with opportunities to advance their

Human Rights Education
3. Fair recruitment and appointment of persons incharge of fair recruitment and human rights education
4. Implementation of human rights educational seminars
5. Promotion of human rights education at JT Group
companies
6. Others
1) Respect for human rights in accordance with theglobalization of business2) Communication with labor unions
3) Response to fake dowa (antidiscrimination) activities, etc.
4) Collection and sharing of information, etc.

careers.

Mobilizing and Developing Global Human Resources
While the JT Group’s workforce consists of employees with
spect one another’s cultures and values.

Better Labor-Management Relationship
It is imperative that employees and employers share a com-

JT and Japan Tobacco International (JTI, which spear-

mon view of the business environment and trends to en-

Managers, meanwhile, play a vital role in practicing aheads JT’s overseas tobacco business), therefore, jointly

sure the JT Group’s sustainable growth. Based on a labor-

fair merit system and helping employees achieve self-

launched the “JT/JTI Talent Partnership Program,” to ex-

management consultation system established between the

FY 2011sustained development. In order to practice a fair appraisal,change human resources and develop global talents who

two parties, JT and its employees respect each other, being

each department and section holds appraisers’ meetings

can leverage new ideas emerging from synergies among a

engaged in good-faith discussion to deal with management
issues such as business plans and financial management.

As of the end of March 2012 (number of employed workers)

FY 2009

who are qualified can apply once a year for jobs they aspireover 100 different nationalities, it is imperative that they re-esNumber of JT Employees

Male

7,973

7,948

7,933

Female

988

980

1,003

Total

hancing fair treatment of all employees.

’g

Tr

le n
ot

es

C h alea

ment, JT provides employees with workplaces where theyyethese into practice.

CompanyWork

In addition, the Career Challenge System is in place to help
employees develop their career plans, where employees

2. Establishment of the Committee of the Promotion ofvariety of talents. One such program is the biannual program “JT/JTI Exchange Academy,” where JT/JTI employ-

Although the Great East Japan Earthquake dealt a severe

At the same time, managers are being trained and edu-

ees from all over the world are engaged in group discus-

blow to the JT Group’s business, a group-wide cooperation

8,961

8,928

8,936

Average age

42.8

43.0

43.4

cated to enhance the organizational strength, while training

sions and make presentations in English to deepen mutual

system was established to continue operations and restore

Average service years

21.6

21.7

21.9

programs are offered to newly appointed managers to haveunderstanding beyond language and cultural barriers.

damaged production facilities. At the same time, emer-

1

Consolidated number of employees*

49,66548,472

48,529them obtain knowledge and skills required for manage-gency labor-management meetings were held to change

Number of Employees of Overseas
Consolidated Group Companies*2

27,76827,014

27,139ment of human resources and organizations, with a variety

work schedules to maintain product supply and ramp up

of programs such as follow-up trainings implemented to

production, while support is being provided to disaster-enhance the organizational power.

stricken areas.

*1 Number of employees of JT and its consolidated subsidiaries*2 Number of Employees of Group Companies Headquartered Abroad

CSR Report 2012

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

to standardize appraisal practices and improve appraisal
skills.

Approaches to Protecting
the Global Environment

Employees

agement training designed for employees who are at stages in their careers to decide their paths. These programs

Technical college and high school graduates

With emphasis on a transparent human resources manage-

are underway to put

Number of
employees

104

to, with their applications examined by the departments

ition and com
pos
pa
of
ny
ng
ributiotnnCo

port for employees’(including those with
graduate school degrees)

Main career track* Based on the percentage of new graduates who have not left a job
within three years of employment as of April 1st each year

Basic Principle

isal system, and sup-University graduatesterviews conducted annually by managers and career man-

1. Respect for human rights and ban of discrimination

Strengthening of
the Business Foundation

fairly, thereby growing together.” Specifically, the empha-

Recruitment

JT has a human resources management system that is

FY 2010 FY 2011 FY 2012

Basic Policy on Human Rights Education

Supply Chain Management

nars, and internship programs.

2) Setting transparent rules and standards

Recruitment Results

27

Respect for Human Rights

Appropriate Manufacturing Process
and Consumer Services

Recruitment of Next-Generation Human Resources

Human Resources Management Policy

28

Strengthening of
the Business Foundation

One of JT’s management priorities is to create competitive

culture in which a variety of individuals with different backgrounds and perspectives (regardless of gender, age, nationality and handicap) make the most of their abilities,

Child-care leave

is committed to creating an environment and a corporate

thereby contributing to future growth.

creating an ideal working environment for female employees, while providing them with opportunities at various departments at home and abroad to exhibit their talents andabilities. In fact, a female executive is in office, with thenumber of female managers increasing.

FY 2011

29

37

38

Male

1

1

2

Female

28

36

36

96.6

91.9

100

40

47

56

To Eliminate On-The-Job Accidents

6

12

16

JT set up its unique Industrial Accident Prevention Five-Year

0

1

3

Plan to eliminate on-the-job accidents, setting goals for reduc-

0

1

2

ing the number of on-the-job accident casualties, and maintain-

Breakdown
Percentage of those who took childcare leave and returned to work (%)*2
Number of employees who opted
for short-time work
Number of employees who took
leave to care for a sick child
Number of employees who tookfamily-care leave
Number of employees who opted
for short-time work

*1 Number of employees who took child-care leave in respective fiscal years*2 Calculated with “the number of employees who took child-care leave inrespective fiscal years” as a denominator and “the number of those who
returned to work within three years (including those who are scheduled toreturn to work)” as a numerator

Leveraging the System to Continue
Working While Raising Children
I have a son in the first grade and a three-year-old daughter. I took child-Work-Life Balance
JT believes that all employees are entitled to achieve aaccordance with the JT Occupational Safety and Health Basic
Policy, which was set in 2002, as ensuring the safety and healthof employees is an integral part of its operations.

ing and promoting employee mental and physical health. Specific measures include proper maintenance and managementof the occupational safety and health control system, on-thejob accident prevention measures, mental health enhancement, health hazard (occupational diseases, etc.) prevention
measures and prevention of occupational traffic accidents.
Total Lost Time Incidents at JT’s Factories
FY 2007

care leave twice until they turned one year old. When I returned to work,
I enrolled myself in a short-time working program, where I went to work
an hour later and got away from it an hour earlier than usual. When my

FY 2008

FY 2009

FY 2010

FY 2011

Number of victims

6

3

3

5

4

Frequency rate*1

1.48

0.75

0.77

1.38

1.13

0.406

0.029

0.027

0.064

0.012

with high motivation and a sense of fulfillment. A variety ofson started elementary school, meanwhile, I switched to another short-efforts are thus underway to help employees continue

time working program, where I got away from work an hour earlier. My

Severity rate*2

working with a sense of security and do what they ought toboss and colleagues were supportive enough to help me deal with emer-*1 Occupational accident frequency rate = (Number of occupational accident
victims / Number of person-hours) × 1,000,000*2 Occupational accident severity rate = (Work-days lost / Number of
person-hours) × 1,000

do as a member of their family, when faced with life events
such as raising children and caring for someone sick or the

gencies, business trips, and meetings. In fact, they
were more concerned than I was when I got a callfrom a nursery because my child had a fever.

elderly in the family. JT was certified by the Ministry ofHowever, I’m amazed at how fast kids can grow.

Health, Labour and Welfare for the second time in July 2010

It’s not easy to work every day while cherishing

as a company taking measures to nurture the next genera-

the time you spend with your kids, but thanks totion and for its efforts to create an environment friendly to

Health Management of Employees
Recognizing that each employee needs to stay healthy bothJT’s well-established system, I’m quite satisfied
with my work-life balance.

Compliance Officephysically and mentally to ensure continuous high perfor-

Tomoko Hayano

mance, JT properly manages the health of employees, station-

In addition, all employees are en-ing full-time medical personnel (12 physicians and 35 public

Re-Employment System

health nurses) at 11 locations nationwide. In addition to legal

teers, be hospitalized for bone mar-With the minimum age for receiving the public pension

medical examinations, additional examinations are conducted

row transplantation, and participate

raised, JT adopted a re-employment system to provide em-annually for those who are 35 years of age and older to preventin the Japan Overseas Cooperationployees with more options for employment, extending

lifestyle-related diseases, with industrial physicians and healththeir retirement age to 65.

nurses communicating the results to each employee.

Employment of Persons with Disabilities

Approaches to Mental Health

Efforts are underway to create better workplaces for em-

Recognizing the importance of employees’ mental health, JT

FY 2011ployees with disabilities. To help them make the most of

focuses on preventing mental illness. In addition to a counter

1,650

their capabilities, for instance, they are assigned duties forwhere specialists and counselors offer counseling services, ex-which they are qualified, while facilities and installations

ternal specialized institutions listen to employees’ problems ei-

are being improved, with due consideration given to thether by phone or face to face. Workshops and seminars are also

Volunteers (JOCV), thus encouraged
to contribute to society.

Next Generation Certification Mark (known by thenickname “Kurumin”)

Working Hours and Major Systems in PlaceFY 2009

Annual Working Hours

1,643

FY 2010

1,640

Overtime hours (hours/month)

18.3

18.7

18.7

Holidays
Administrative leave

15.9

16.0

15.7

Number of paid holidays used (days)
Percentage of paid holidays used (%)

85.8

83.8

80.0

Volunteer leave (persons)

2

19

121

JOCV leave (persons)

0

0

0

CSR Report 2012

convenience of commuting to and from their workplaces.

held regularly for managers on “care by lines” and for employ-

The percentage of employees with disabilities in the total

ees on “self-care” in line with the Guidelines for Mental Healthworkforce stood at 2.52% as of the end of March 2012, well

Promotion at the Workplace established by the Ministry ofabove the legal employment rate of 1.8%.

Health, Labour and Welfare.

*1 Lost time injury rate: The number of lost time injuries per 200,000
working hours.
*2 Rate of vehicle accidents: The number of vehicle accidents per
million kilometers.

Workshop at the sales and marketing departments

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

titled to take leave to act as volun-

Japan Tobacco International (JTI), the core of JT Group’s international tobacco business, employs about 24,000
people worldwide.
JTI is committed to providing a safe and healthy workplace and aims to eliminate all occupational injuries andillnesses. To achieve these commitments, JTI has embedded the Safety Change Program in manufacturing operations and the Defensive Driving Program in sales and marketing operations.
The Safety Change Program is a comprehensive program
based on two principles: providing a safe working environment; and ensuring people consistently work in a safe
way. In 2011, the key focus area for JTI was to provide inhouse factory based technical training. Furthermore,‘Safety Leaders’ training was provided to the management
teams in several factories. In-line with JTI’s EHS Plan, a pilot Safety Change Program was launched in the CIS Region (broadly Eastern Europe, including Russia and Kazakhstan). Following a successful implementation, the Program
will be extended to other JTI markets. The results of the
trainings are now showing, with JTI’s lost time injury (LTI)
rate*1 falling by 27% between 2010 and 2011. Since 2003,
across JTI, the LTI rate has decreased by over 70%. Taking
the manufacturing part of the company, the LTI rate has
fallen by 90%.
The greatest safety risk faced by any JTI employee occurs
while driving. A Defensive Driving Program was implemented in 2004, to minimize the risks of this activity. The
program continued in 2011, with 2 train-the-trainer sessions providing 27 qualified Fleet Safety Trainers for JTI.
The results of the program are clear, with a reduction in therate of vehicle accidents*2 by 48% since 2003. However,there was a small increase in the rate of vehicle accidents
in 2011 compared to 2010.

Approaches to Protecting
the Global Environment

those who are raising children.

29

JT has been improving its safety and health control system inStrengthening of
the Business Foundation

work-life balance and fully exhibit their talents and abilities

JTI’s EHS Measures

FY 2010Supply Chain Management

As part of its program to encourage diversification, JT is

Family-careleave

Opportunities for Female Employees to Work Actively

Creating Workplaces Where Employees
Feel Gratified and Rewarded

FY 2009
Number of employees
who took child-care leave*1

human resources, placing a premium on their diversity. JT

Unit: Persons

Appropriate Manufacturing Process
and Consumer Services

Child-Care and Family-Care Leave Taken

Driving Diversity

30

Approaches to Protecting the Global Environment

JT Group Environmental Management

JT Group Environmental Management

Approaches to Preventing Global
Warming

global, the JT Global Environment Charter was upgraded to

JT Group Environment Charter

Approaches to Creating a RecyclingBased Society
Approaches to Conserving Biodiversity
Other Approaches
Environmental Communication

the “JT Group Environment Charter” in March 2004, which

The JT Group gives the highest priority to conserving thewas revised again in May 2010, with biodiversity issues

global environment.

incorporated. The JT Group will seek to operate in harmony

JT established the “JT Global Environment Charter” inwith the environment in all countries and regions in which

May 1995 and has been striving to conserve the global

it operates.

environment. As JT’s business began to diversify and go

Appropriate Manufacturing Process
and Consumer Services

Environmental Impact of the JT Group’s
Business and Approaches to Reduce It

Approaches to Protecting the Global
Environment (Overseas)
Supply Chain Management

JT Group Environment Charter
We seek to operate in harmony with the environment
in an effort to pass a sound and rich environment on to
future generations.

Basic Principle
The mission of the JT Group is to create, develop and nurture its unique brands to win consumer trust, while
understanding and respecting the environment, and the diversity of societies and individuals.
We, will leave a healthy and productive environment to future generations, and have an active involvement
in environmental and biodiversity issues.
Based on the following policy, we continue to act as a good neighbor with local communities in all countries
environment.

Strengthening of
the Business Foundation

Focusing on Reducing Greenhouse Gas Emissions through the Value Chain

and regions where we operate, and strive to bring about harmony between our corporate activities and the

JT Group Environmental Policy
Giving the highest priority to conserving the global envi-

ing and Reporting Standard of the Greenhouse Gas Proto-ronment, the JT Group is striving to prevent global warm-col. While the JT Group has been keeping track of green-

ing and optimize the use of natural resources, while seek-

house gas emissions based on life-cycle assessments

We will continually improve our environmental management system to enhance our environmental
performance.

ing to operate in harmony with environment in all countries(LCA), the scope of monitoring was expanded in FY 2011 toand regions in which it operates.

cover the entire value chain based on Scope 3.

Expanding the scope of environmental management to

It is essential that the JT Group reviews its environmental

cover all consolidated subsidiaries worldwide, the JT

impact, thereby keeping pace with changes in society andGroup Environment Action Plan (2009–2012) is designed tothe business environment and examining its responsibili-

further reduce the environmental impact of the JT Group’s

ties from a long-term perspective. The JT Group, therefore,

We will continually strive to reduce environmental impact in the process of product development andbusiness, setting greenhouse gas emissions, water con-will continue to make a concerted effort to create a low-

services, while also taking into account the aspect of the biodiversity.

carbon, recycling-based society in an effort to operate inenvironmental indexes. Although some business places

harmony with the environment—a philosophy expressed inwere shut down owing to the Great East Japan Earthquake

the JT Group Environment Charter.

3. Products and Services

4. Process and Supply Chain
We will strive to reduce the environmental impact and optimize the use of natural resources at all stagesof our activities, while also taking into account the aspect of the biodiversity, from procurement of raw
understand our Charter.

with the shortage of electricity, such as changing the temperature setting of air conditioners, reducing lighting and

5. Environmental Education

introducing energy-efficient LED lighting—which contrib-

We will develop a culture of environmental awareness through education and training; and encouraging

uted to reducing both greenhouse gas emissions and elecOn the other hand, social requirements for companies are

6. Environmental Communication

growing and diversifying as the global environmental prob-

We will make an appropriate disclosure of our environmental performance and keep good relationships

lem becomes increasingly critical. In October 2011, theWorld Resources Institute (WRI) and the World Business

Hideki Miyazaki

Council for Sustainable Development (WBCSD) jointly

Executive Deputy President
Assistant to CEO in CSR

with our stakeholders through active communication.
Revised in May 2010

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

employees to take personal responsibility for their actions for creating a better environment.

tricity consumption.

CSR Report 2012

We will comply with every environmental law in all countries and regions where we operate.

materials and manufacturing, through to sales and distribution. We will also encourage suppliers totoward the goals, for example, adopted measures to deal

announced the Corporate Value Chain (Scope 3) Account-

2. ComplianceApproaches to Protecting
the Global Environment

sumption, waste generation, and waste recycling as major

on March 11, 2011, the JT Group is making steady progress31

1. Management System

32

Approaches to Protecting
the Global Environment

efforts underway to achieve goals for reducing its environmental impact.

Development of Human Resources forEnvironmental Management Systems

Based on the JT Group Environmental Action Plan (2009-

As part of a program to save electricity, for example, elec-

The JT Group is developing human resources to drive envi-

2012), the JT Group sets targets for major environmental

tricity consumption in each area was centrally monitored inronmental management, with in-house programs in place

Environmental Auditing by the Operational Review
and Business Assurance Divisionindexes concerning greenhouse gas emissions, water con-the summer of 2011, while other programs are in place toto educate newly appointed environmental managers on

While establishments certified by ISO 14001 and those operat-

sumption, waste generation, and waste recycling, with

reduce water consumption, segregate waste materials, andISO 14001, environmental laws and regulations as well as

ing ISO 14001-conforming environmental management sys-advance waste recycling.

tems conduct internal audits based on ISO 14001, the Opera-

internal auditors, all designed to provide them with hands-

tional Review and Business Assurance Division conducts ad-

Objectiveon knowledge of environmental management. For exam-

ditional environmental audits at selected establishments of JT

Reduced by 10.9% below FY 2007 levels

ple, about 100 employees from across Japan participated inGroup companies, taking into account changes in the busi-

Reduce emissions from tobacco product factories per million cigarettes by 11% below FY 2007 levels in FY 2012 Reduced by 7.2% below FY 2007 levels

a program to learn the specifics of the Waste Management

ness environment and the number of years since the last au-

Reduce by 50% below FY 1995 levels in FY 2012

Reduced by 54.6% below FY 1995 levels

and Public Cleansing Act, which was revised in FY 2011.

dits. They are designed to continuously improve the JT

Reduce emissions from tobacco product factories per million cigarettes by 12% below FY 1995 levels in FY 2012

Reduced by 12.9% below FY 1995 levels

Scope

Medium-Term Target (2009-2012)

Results (FY 2011)

Greenhousegasemissions

JT GroupJT

Water
consumption

JT Group

Reduce by 12% below FY 2007 levels in FY 2012

Reduced by 27.2% below FY 2007 levels

JT

Reduce by 70% below FY 1995 levels in FY 2012

Reduced by 74.5% below FY 1995 levels

Wastegeneration

JT Group

Reduce by 15% below FY 2007 levels in FY 2012

Reduced by 18.8% below FY 2007 levels

JT

Reduce by 35% below FY 1995 levels in FY 2012

Reduced by 24.6% below FY 1995 levels

Recycling

JT Group

Continue with zero emission* activities at factories

Zero emission was achieved at 23 factories* Recycling rate with over 99.5%

JT Group’s System to Promote
Environmental Management
The executive deputy president, assistant to CEO in CSR,Management Systems Based On
ISO 14001 Standards
The JT Group has an environmental management system

Group’s environmental management, with the division indeTrainings Offered in FY 2011
Description

Title

Numberof trainees

pendent from those engaged in environmental activities objectively reviewing and evaluating the group’s environmental

Training for newly
appointed environmental
managers

Training and education forenvironmental managers

104

Training forenvironmental auditors

Training and education forinternal auditors (theory)

28

Environmental Auditing of Environmental Management Systems

On-site training forenvironmental auditing

Training and education for internal
auditors (practice)11

The Operational Review and Business Assurance Division con-

Training for environmental
information systems

Learning of environmental
information management systems

32

Training for environmental
laws and regulations

Learning of waste material
management

99

conservation programs.

ducted audits in FY 2011 to determine if the JT Group’s environmental management system was implemented on the basis ofsupervises the JT Group’s environmental management asbased on the international environmental standard ISO

an environmental management representative, while the14001. While manufacturing establishments are encour-head of each division, as a divisional environmental man-aged to obtain ISO 14001 certification, non-manufacturing

waste management, some of which were considered unfea-

agement representative, controls environmental manage-

establishments (area sales headquarters, laboratories, andsible. Efforts are underway to solve all the problems identified.

ment of the division and group companies concerned,

distribution centers) have their own ISO 14001-conforming

specified policies and procedures. As a result, four non-compli-

which together comprise the JT Group’s environmental

environmental management systems, and small-scale
establishments, their simplified versions. These systems

Environmental Auditing to Examine Compliance withEnvironmental Laws and Regulations

The CSR Committee monitors developments in the “JTwith different levels are designed to manage environmen-

In FY 2011, the Operational Review and Business Assurance Di-

Group Environmental Action Plan” and environmental

tal impacts according to the nature and scale of operations.

vision teamed up with group companies’ auditing departments

management, while examining specific measures in an

to examine compliance with environmental laws and regulaTraining for environmental laws and regulations

effort to develop the group-wide environmental manage(As of the end of March 2012)

Environmental Management System

ISO 14001 Certification

Operational Review andBusiness Assurance Division

JT

Executive Committee

Environmental Management Representative(Executive Deputy President in Charge of CSR)
Divisional Environmental Management
Representatives (Division Heads)

CSR CommitteeGroup
Companies
CSR Division

Departments
Factories (JT)The JT Group set the “Green Purchasing Guidelines” toments in accordance with relevant laws and regulations and toencourage the purchase of goods that have less environ-

report on changes in septic tank supervisors in accordance withJapan Tobacco International (27 group companies), EasternJapan Plant Service, Central Japan Plant Service, WesternJapan Plant Service, Kyushu Plant Service, JT Engineering,
Japan Filter Technology (3 factories), Fuji Flavor, JT Logistics(2 distribution centers) Torii Pharmaceutical (1 plant), Japan
Beverage Group (12 companies), TableMark (1 factory),
Katokichi Suisan (2 factories), Hokkaido Katokichi (2factories), Uwonuma Rice, Iipingshang Foods Corporation,
Sunburg, Nihon Shokuzai Kako, KS Frozen Foods (1 factory),
Thai Foods International, Toranomon Energy Service

mental impact, with each group company purchasing

the Purification Tank Act. All the problems identified have been

goods from the online catalogue on the intranet. Thesesolved. In addition, group-wide efforts are underway to solve

Complying with ISO 14001

with suppliers. The domestic tobacco business, for38 establishments(the headquarters, area sales headquarters, laboratories)

example, procures raw materials according to the “Green

Internal Environmental Audit

JT
Environmental
Audit

TS Network, JT Logistics, JT BeverageGroup
Companies

Simplified Environmental Management System
JT A-StarCSR Report 2012

non-compliances in which the group’s other establishments are

office furniture, office automation equipment, vehicles,

involved by sharing information among all parties concerned.

etc.) in FY 2011, while JT’s green purchasing rate stood at
60.7% in value terms.
At the same time, the JT Group is driving an environment-

Procurement Standards,” which involves helping suppliers
establish their environmental management systems. As aresult, 84.5% of them started practicing environmental
management in FY 2011.

Establishments Audited in FY 2011
JT Tokai Factory, Fuji Flavor, TableMark Yamamoto Factory, Katokichi
Foodlec, Koyo Foods

Relevant Laws and Regulations
Act on the Improvement of Pollution Prevention Systems in Designated Factories, Factory Location Act, Act on the Rational Use of Energy, Waste Management and Public Cleansing Act, Air Pollution Control Act, Offensive Odor
Control Act, Noise Regulation Act, Vibration Regulation Act, Water Pollution
Control Act, Purification Tank Act, Sewerage Act, Act on Confirmation, etc.
of Release Amounts of Specific Chemical Substances in the Environment
and Promotion of Improvements to the Management Thereof, Fire Service
Act, High Pressure Gas Safety Act

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

Non-Manufacturing Establishments (JT Group)

guidelines applied to a total of 1,024 items (office supplies,

conscious procurement of raw materials in partnership

Headquarters (JT)Laboratories (JT)As a result, nine non-compliances were identified, including
failure to complete outsourced waste disposal service agree-

14 establishments (factories)

Area Sales HQ and Regional Leaf Tobacco HQ (JT)

Manufacturing Establishments (JT Group)

Measures in Procurement

tions at the five establishments listed below.
Approaches to Protecting
the Global Environment

Status of the JT Group’s Environmental Management

President and CEO

Strengthening of
the Business Foundation

ances were identified, including the JT Group’s regulations on

management.

ment.

Supply Chain Management

those on environmental system management and to train

Environmental Impact Reduction Targets (2009-2012)
Reduce by 10% below FY 2007 levels in FY 201233

Environmental Auditing
Appropriate Manufacturing Process
and Consumer Services

Developments in the JT Group
Environmental Action Plan (2009–2012)34

Approaches to Protecting
the Global Environment

Environmental Impact of the JT Group’s Business and Approaches to Reduce It (Domestic)□ Energy

Conversion factor, based on the Law Regarding
the Rationalization of Energy Use□ Greenhouse gases
Conversion factor, based on the Law Concerning
the Promotion of the Measures to Cope with
Global Warming

and consumption all have an impact on the environment. The JT Group, therefore,
has a system in place to monitor and reduce the environmental impact.

INPUT□ NOx (nitrogen oxides)

Based on the Environmental Activity Evaluation Program□ SOx (sulfur oxides)

Emissions are calculated, with their amount converted into SOx, based on the sulfur content
and density of the fuel used as well as on the efficiency of desulphurization equipment.

OUTPUT

Packaging materials

93,600 t

Recycled packaging materials

3,400 t

Waste

Paper
Corrugated cardboard
Plastic
Others42,900 t
35,200 t
10,900 t
4,600 tPaper
Corrugated cardboard
Plastic
Others20 t
1,560 t1,170 t
650 t

Amount generated
Volume of recycled
Amount of landfill

42,000 t
40,800 t
300 t

Recycling rate

Water

5,010,700 m3

Water effluent

Industrial water
Tap water
Ground water
Others621,400 m3
1,031,600 m3
3,356,300 m3
1,400 m3

Amount of effluent
BOD
COD

6,879.9 TJ

Copy / OA paper

Purchased electricity
Gas
Heavy oil and light oil
Vehicle fuelOthers4,379.6 TJ
872.3 TJ
976.0 TJ
633.2 TJ
18.8 TJ

Copy / OA paper

Recycled water 62,500 m3
556.4 tSales promotion tools

3,300 tPaper
Plastic

2,500 t
800 t

97.1%

3,159,500 m3
179.9 t13.2 tGreenhouse gases

334,600 t-CO2

Amount of packaging materials disposed of 56,100 t

CO2
Others

333,900 t-CO2
700 t-CO2

Paper
Plastic
Others

Impact on the air environment

379.1 tSOx
NOx

204.0 t175.1 t47,000 t
4,100 t5,000 tEstimate based on sales results

Strengthening of
the Business Foundation

EnergySupply Chain Management272,200 t

Raw materials (agricultural products, etc.) 185,400 t
Materials (paper, etc.)
86,800 t

Materials

Appropriate Manufacturing Process
and Consumer Services【Calculation of Environmental Load】

Operations such as raw material procurement, manufacturing, transportation, sales,

Scope: 36 domestic JT Group companies Period: April 2011 to March 2012

Simplification and Reductionof Packaging Materials

Optimization of Transportation

A project was launched in FY 2011 at JT’s factories to visu-

The JT Group is reducing the weight

The JT Group, which is advancing modal shift and increas-

Japan Beverage, a beverage vending machine operator,

alize energy consumption by working group and equip-of caps and PET bottles for beverages.

ing the loading rate of trucks to reduce greenhouse gas

recycles used beverage containers and disposes of themment, while the data obtained are used for monitoring and

A 280-ml PET bottle for the green tea

emissions, was certified by the Ministry of Land, Infrastruc-properly. Recycle Plaza JB, whichanalysis purposes to further reduce energy consumption.

“Tsujiri”, for example, has a special

ture and Transport as an “Eco Rail Mark Company” for its

started operations in 2003, is an

Specific measures include introduction of heat-pump hot-configuration, resulting in about 17%

aggressive approaches to switchingintermediate disposal facility equip-

water systems and high-efficiency turbo freezers. In addi-

reduction in the use of plastics. Like-to environmentally friendly rail fre-

ped with an advanced recycling sys-tion, programs are underway at offices to optimize thewise, “Mild Seven Style Plus series”,

ight transportation. The modal shifttem. Taking care of the entire con-Previous bottle

New bottle

which hit the market in January 2012, uses about 20% lessrate stood at 58.1% in FY 2011, andtainerpaper and about 28% less plastics compared to conven-

the loading rate of 10-ton trucks

expanding its recycling system. In

fans, and toilet water heat-tional packaging.

from factories to distribution cen-

addition, the JB Recycle Network,ters, at 99.7% (on a pallet basis).
* The percentage of railroad and marine transportation of tobacco materials
with a hauling distance of over 500 km

expected to further reduceenergy consumption.

itisand distribution companies nationwide, is in place to further drive recycling of resources.

“Visualization” through integrated monitoring

CSR Report 2012

process,

which consists of over 180 recycling
Eco Rail Markties are also underway, andrecycling

The top sides of packages

Segregation process of used beveragecontainers at a recycling facility

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

operations of air conditioners, air supply and exhausters. Improvements of facili-

35

Creation of Recycling Systems

Approaches to Protecting
the Global Environment

Energy-Saving Measures36

Approaches to Protecting
the Global Environment

Approaches to Preventing Global Warming (Domestic)

Introduction of Fuel-Efficient Vehicles

The JT Group is striving to reduce greenhouse gas emis-

The JT Group’s fleet of sales vehicles and delivery trucks is

Various approaches were adopted in FY 2011 to deal with aPart of manufacturing at factories in the areas served by thesions, which cause global warming.

switching to their low-emission, fuel-efficient counterparts

power shortage following the Great East Japan Earthquake.

Tokyo Electric Power and Tohoku Electric Power was tem-Approaches to Saving Electricity

in an effort to reduce greenhouse gas emissions from its

The JT Group, therefore, set up a team within the JT head-porarily relocated to Kyushu to reduce the maximum elec-

operations such as sales and distribution. They account forquarters to reduce the maximum electricity demand duringtricity demand in summer. Other power-saving measures

Likewise, the JT Group companies in Japan reduced its CO2

59.1% of the entire fleet of vehicles (or 4,785 units out ofsummer (between July and September) by 15% year on

include shutdown of some manufacturing equipment andemissions by 16,500 tons or 4.7% from FY 2010 levels in

8,095) as of the end of March 2012.

year. Not only establishments operating in the areas served

air conditioning systems, postponement of maintenance at

FY2011.

In addition, to raise awareness of eco-driving among em-

by Tokyo Electric Power and Tohoku Electric Power, but also

facilities, optimization of opera-

Factory equipment such as boilers, compressors, and air

ployees, efforts including training programs, putting stick-those operating across Japan, made a concerted effort totion hours, switch to operations

conditioners are being replaced with energy-efficient onesers on vehicles, and putting up signboards at parking lots

save electricity. At the same time, electricity consumption

on holidays, and use of inter-to continuously reduce greenhouse gas emissions. In FY

are underway.

was closely monitored, with power saving at each estab-nally generated electricity andlishment updated and posted on the intranet to raise em-

storage batteries, all designed

ployees’ awareness of saving electricity.

to make effective use of electric-

As a result, business establishments in the areas served by

ity and reduce electricity con-the Tokyo Electric Power with a contract demand of over

sumption during peak hours.

launched the “CO2 Reduction Project,” while stepping up
efforts to share information between them, examine proac-

Percentage of Fuel-Efficient Vehicles
Total number of units
The percentage of fuel-efficient vehicles (%)
100(Number of units)

tive measures, and evaluate their effectiveness. Similar
8,000

programs are underway at laboratories and offices.

8,182

7,858

6,000

51.1
Trends in Greenhouse Gas Emissions*JT
JT Group companies in Japan(1,000 t-CO2)
500
400

407.5

380.6

200

247.6

225.8

351.0

192.9

100
0

2008

2009

2010

59.1

60

40.7
40
20

2008

2009

2010

2011

(FY)

0

334.6

Use of Renewable Energy

2011

(FY)

Food
Business

Energy-Saving Measures at Offices

Electric Power, by 20–25%, both being well above a mini-

A variety of energy-saving measures were adopted, such as

mum of 15% required by the Electricity Business Act. Like-

switch to LED lighting, adjustment of the air temperature

wise, establishments in the areas served by Kansai Electric

control, optimization of elevator operations and ceilingPower reduced the maximum electricity demand by 12-

lighting, and introduction of a

17% year on year, surpassing its voluntary 10% goal.

task-ambient lighting system.

Other establishments with a contract demand of below 500

In addition, a COOL BIZ pro-kW, to which the Electricity Business Act does not apply,gram was implemented fromalso implemented electricity-saving measures; those in the

May to October to reduce en-areas served by Tokyo Electric Power, Tohoku Electric

ergy consumption of air condi-

Power, and Kansai Electric Power achieved a 20–24%, 14-tioners.

19%, and 12–24% reduction, respectively, all overachieving

greenhouse gas emissions.

their voluntary goals.

* Task-ambient lighting refers to designs in which a modest general lighting
system is supplemented with local task luminaries.

TobaccoBusiness
334,600 t-CO2

For example, solar panels with a total output of about

In addition to these power-saving
efforts, all the establishments partici-

The JT Group is striving to reduce power consumption of

the JT Tokai Factory and the Nagoya branch of TS Network,pated in the “Household Power Sav-

cigarette and beverage vending machines. Specific mea-a tobacco product distributor—which translates into a

ing Declaration,” a power-savingsures include introduction of LED lighting, optimization of

reduction of about 11 tons of CO 2 emissions per year, com-educational program launched bypared to purchasing electricity

the Ministry of Economy, Trade andfrom power companies. This

Industry.

Energy-Saving Measures for Vending Machines

Power-saving status is
updated and posted on
the intranet

off for another few hours, as were vending machine refrig-with an area of about four foot-(%)
Solar panels at the Tokai Factory

30

power lighting.

25

The Nagoya branch of TS Net-20

work is also working on rooftop

15

32
29

28

25
21

20
15% reduction year on year

10

Solar panels and rooftop gardening
at TS Network

0▶Heat Pump System
Efficient use of heat for the cold and hot
compartments to reduce power consumption▶Peak Cut System

5island effect.

▶Energy-Saving Campaign Sticker“Operating with EnergySaving Mode” sticker

35

generated is used primarily togardening to mitigate the heat
* Scope: 36 domestic JT Group companiesThose in the areas served by the Tokyo Electric Power
Those in the areas served by the Tohoku Electric Powererators in the summer of 2011.

Jul.

Aug.

Sep.

The peak-cut function, where the compressor
is shut down during peak load hours insummer, to save power

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

5.2%

lighting hours, and switch to beverage vending machines
equipped with heat pump and peak cut systems. With thecooperation of shop owners, moreover, lighting was turned

Year-on-year Comparison of Power Saving in the Summer of 2011
(Establishments with Contract Demand of over 500 kW)

absorbed annually by the forestball pitches, while the electricity

57.8%

Task-ambient lighting system

35,000 kWh per year are installed on the rooftops of bothamount is equivalent to that
36.0%

CSR Report 2012

32% year on year, and those in the areas served by Tohoku

Approaches to Protecting
the Global Environment

Others 1.0%

500 kW reduced the maximum electricity demand by 28-

The JT Group is utilizing renewable energy to reduce

173.7

Greenhouse Gas Emissions by Business (FY 2011)*

PharmaceuticalBusiness

57.2

80

2,000
0

300

8,095

Strengthening of
the Business Foundation

4,000

8,030

Self-power generator at thefrozen-food manufacturer Sunburg

Supply Chain Management

In fact, JT reduced its CO2 emissions by 19,200 tons fromFY 2010 levels (or by 54.6% from FY 1995 levels) in FY 2011.

2011, moreover, factory environmental managers jointly

37

Energy-Saving Measures at Manufacturing Establishments

Appropriate Manufacturing Process
and Consumer Services

Approaches to Reducing Greenhouse
Gas Emissions

38

Approaches to Protecting
the Global Environment

Approaches to Creating a Recycling-Based Society (Domestic)

Approaches to Conserving Biodiversity

Environmental Communication

The JT Group gives due consideration to biodiversity while

The JT Group is taking measures to save and reuse water,

The JT Group is practicing 3R (Reduce, Reuse, and Recycle)

biodiversity conservation laid down in the “JT Group Envi-

The JB Environment Network, which was established bywith efforts underway to optimize the use of water at facto-

at home and abroad.

ronment Charter.” For example, a year-long ecological field

the vending machine operator Japan Beverage and con-preserving its forests in accordance with the principle on

JT’s waste generation decreased by 1,550 tons year on

survey that started in July 2010 at JT Forest Shigetomi (JT’ssists of beverage manufacturers, won the “2011 Reduce,year (or 24.6% from FY 1995 levels) in FY 2011. The JT

forest in Aira City, Kagoshima Prefecture) was completed,

Reuse, and Recycle Contributor Award” from the Minister

the amount of water used and required, the results of whichGroup’s waste generation (domestic) was reduced by 670

the results of which were reported to Kagoshima Prefec-of Agriculture, Forestry and Fisheries for its contribution toare examined to optimize the amount of flow and reduce

tons (or 1.6%) year on year, while about 6,730 tons of wasteture, Aira City, local universities, and stakeholders such as

beverage container recycling and 3R educational pro-the use of water. Other proactive measures include review

materials were generated owing to the Great East Japanthe owners of neighboring land. On the basis of opinions

grams. This annual award, which is sponsored by the 3Rof water usage and improvement of equipment and facili-

Earthquake.

and suggestions provided by these stakeholders, the JT

Suishin Kyogikai (3R Promotion Council), recognizes indi-

Group will continue to work on forest conservation in coop-

viduals and groups for their continuing achievements in 3R

eration with local communities.

to boost the creation of a recycling-based society.

ties. Laboratories and offices are also working on water-

Tobacco factories continue to reuse packing materials,

saving programs, such as introduction of water-savingwith 230 tons of packing materials for raw material reused

automatic faucets, saving of toilet flushing water, and use

in FY 2011. As for recycling, each establishment stepped upof recycled water.

efforts to segregate waste materials and review services ofIn fact, JT’s water usage decreased by 195,900 m3 year on

waste disposal companies to increase the waste recycling

year (or 74.5% from FY 1995 levels), and the JT Group’s wa-

Related pages

p13-14

In addition to recycling used beverage containers, mean-

Feature 2: From Forest Conservation and Development
to Co-habitation with Forests

while, Recycle Plaza JB offers

rate. As a result, 23 factories have achieved zero emission

gives lectures at elementary

ter usage (domestic), by 965,700 m3 or 16.2% year on year,with a recycling rate of over 99.5%. The amount of waste

both in FY 2011.

materials, meanwhile, includes those sold or transferred as

Other Approaches

and junior high schools, pro-resources.

facility tours for visitors andSupply Chain Management

ries. Specifically, flow meters installed at each production
line visualize water usage and enable detailed analysis ofAppropriate Manufacturing Process
and Consumer Services

JB Environment Network Won the “Reduce,
Reuse, and Recycle Contributor Award”

Reduce Waste Generation and Promote Recycling

Approaches to Reducing Water Usageviding them with opportunities to learn about environmental conservation.

8,000

6,000

JT’s amount of waste
JT Group’s amount of waste (domestic)JT
JT Group companies in Japan(1,000 m3)(1,000 t )
50

6,579

6,148

40

5,976
5,011

4,000

97.8
97.6

1,486

0

2008

2009

2010

2011 (FY)

(%)
100
95

42.6

42.0

90

20

85
25.3

25.3

23.7

10

80

0

75

2008

2009

2010

2011 (FY)

Waste Generation by Business (FY 2011)*

Water Usage by Business (FY 2011)*

Others 0.7%

TobaccoBusiness

Food
Business

Food
Business

31.1%

42,000 t

5,011,000 m

the governor of Saitama Pre-accordance with the “Chemical Substance Management

fecture for its recycling tech-

Guidelines,” which are in accordance with 18 relevant laws

nologyand regulations, to prevent pollution around each estab-

performance and was desig-

2.5%
PharmaceuticalBusiness* Scope: 36 domestic JT Group companies

39

CSR Report 2012

1.8%
PharmaceuticalBusiness* Scope: 36 domestic JT Group companies

65.4%

and

environmental

lishment and ensure the safety of employees. Chemical

nated as a “Sainokuni Fac-

substances used at laboratories and factories are also man-

tory,” a partner for creating aaged properly, with the amount of purchase, emissions,prosperous Sainokuni.

At Reduce, Reuse, and Recycle
Contributor Award Ceremony

and transfer closely monitored.
The PRTR Law, meanwhile, applied to 25 establishments
as of the end of March 2012.

Communicating with Local Communities
The JT Group participates in a variety of environmental

Proper Management of PCB Wastes

events and symposiums to provide local communities withinformation on its environmental conservation activities
through exhibitions, etc.

ballasts, etc.) are properly stored and managed in accor-

In FY 2011, educational programs on forest conservation

dance with the relevant laws and regulations. A total of 86

were held across the country in connection with the UN

PCB containing units were detoxified in FY 2011.

International Year of Forests. At the exhibition “Corporate
and Eco-action 2011,” sponsored by the Minato Ward,

Soil Pollution Countermeasures

Tokyo, the JT Group introduced JT Forest initiative,

JT had completed checking records of the soil of its prop-

which started in 2005 on

erty in FY 2007. Soil surveys were conducted as needed,

the basis of the needs ofwhile any chemical substances, whose concentrations

local communities, and ex-exceed the levels established in the Soil Contamination

changed opinions with visi-

Countermeasures Law, were properly treated to purify thetors and lecturers.

soil in coordination with the authorities.

Introducing “JT Forest” at the exhibition“Corporate and Eco-action 2011”

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

66.1%

TobaccoBusiness

32.1%

3

Recycle Plaza JB

Plaza JB was recognized by

The JT Group manages the chemical substances it uses in

PCB wastes (transformers, capacitors, fluorescent lamp
Others 0.3%

In September 2011, Recycle

Approaches to Protecting
the Global Environment

1,682

41.4

97.9 97.1

30

25.9

1,977

95.8

96.8

41.6

2,000

2,139

98.0

97.4

Recycling rate
Recycling rate

Proper Management of Chemical Substances

Strengthening of
the Business Foundation

Trends in Waste Generation and Recycling Rate*

Trends in Water Usage Amount*40

Approaches to Protecting
the Global Environment

Approaches to Protecting the Global Environment (Overseas)

sumption is the installation of on-site combined heat andActivities in the Food Business (Overseas)

CO2 Emissions / million cigarettes

power (CHP) at several of our factories. Because of the way

Japan Tobacco International (JTI) controls the production,in which energy is accounted, energy consumption appears

marketing and sales of JT Group cigarette brands in more

to have increased. However, CO2 emissions have reduced(t/mill.cigs)
0.7

Thai Foods International Shares Natural Blessings
with Local Communities

than 120 countries around the world and has more than 25

largely due to CHP installation. The long-term aim of JTI is

0.6

The JT Group Company Thai Foods International Co., Ltd.,

manufacturing operations in 22 different countries. JTI is ato return to year-on-year energy reduction. In order to

0.5

which produces yeast extracts and other natural season-

truly international and multicultural business, employing

achieve this, a program of optimizing the efficiency of fac-

0.4

more than 24,000 people around the world.

tories is underway, supported by significant investments of

0.3
0.2

USD 27 million over the next three years.

ings, has a system in place to recycle natural blessings,
0.695

0.457

0.456

0.497

0.478

such as biomass-fueled boilers; rice chaff originating fromlocal rice mills are used as

JTI recognizes the importance of a structured approach toSince 2003, JTI has followed a plan to improve EHS perfor-

energy management, and launched as energy manage-

mance. JTI has implemented strong EHS management sys-

ment tool in 2011. This has been implemented in all facto-

tems, set challenging EHS targets annually and executedries.

programs that provide performance improvement year-

Carbon reduction is a key objective of the JT Group. JTI

on-year.

has embarked on a Carbon Management Program. The firstIn early 2010, JTI carried out a fundamental review of EHS

step is a systematic quantification of carbon emissions

expectations across the business, covering the Global Leaf

across the entire value chain, from leaf tobacco to end con-5

ing heavy oil, with the re-business, Sales and Marketing operations, manufacturing

sumer. This will enable long-term targets to be set and im-

4

sulting ash reused as a fertilizer for cultivation of rice andoperations and support functions such as Research and De-

provement opportunities to be recognized and acted upon.

3

velopment. The review confirmed that the approach taken

Waste continues to fall, mainly driven by the waste reduc-to drive EHS performance and programs, particularly intion program launched in 2008 to collect and re-use large

manufacturing operations, was successful and should con-tobacco cases within the factories. After significant chang-tinue and strengthen. Significantly, the review also high-es to JTI’s business in recent years with major acquisitions,lighted an expectation and need that EHS programs shoulda survey was completed in 2011 to identify additional op-

be implemented more widely across the business.

portunities for waste reduction, which will now be investi-

As a result of this review, an EHS Plan was developed ingated and implemented where beneficial and practical.

The EHS function was strengthened, and EHS programs
were launched in Sales and Marketing, Research and Development and Global Leaf operations.
proach to the management of EHS performance, as robust
management systems deliver sustainable performance. Allcigarette factories are certified to the international stan-

Installation of the CHP system

Engineers at the Trier Factory, Germany

2009

2010

2011 （FY）

to

producesteam,

which accounted for about
70% of energy consumed in
the factory in 2011. The use

Water Consumption / million cigarettesof rice chaff resulted in a
46,000-ton reduction in CO2(m /mill. cigs)
6
3

2

emissions, compared to us-

other crops.
5.38

2.70

2.65

2.70

2.72

In 2011, moreover, new facilities came on stream to concentrate yeast broth, a byproduct of yeast extract produc-10Thai Foods International Co., Ltd.

tion. While yeast broth, which is rich in essential organic
2003

2008

2009

2010

2011 （FY）

and inorganic substances, has been supplied to nearby
farmers as a fertilizer, its concentrate is more efficient in

Production Waste Generation / million cigarettes(t/mill.cigs)
0.16
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0

dards ISO 14001 and OHSAS 18001. This certification willterms of transportation and usage, and is therefore being
distributed in a wider area for more farmers. This recyclingof yeast broth as an organic fertilizer contributes to reducing the use of chemical fertilizers and CO2 emissions originating from their production.
Thai Foods International will continue to recycle and makeuse of natural blessings, while expanding operations in

0.145

0.106

0.096

0.089

0.083

2003

2008

2009

2010

2011 （FY）

harmony with local communities

now be extended to other parts of the company.
Energy Consumption /million cigarettes

Environmental Performance
Using 2003 as a baseline year, JTI has made significant im-

10,000arettes as a base unit. Between 2003 and 2011, the five envi-

8,000

by 9%. However, looking specifically at 2011, our energy
and water intensity increased, recycling was stable, while
CO2 and waste improved.
One of the key reasons for the increase in energy con-

CSR Report 2012

（%）
80
60

6,000
4,000

Yeast broth concentration facilities

40

8,913

5,957

5,748

6,370

6,595

2003

2008

2009

2010

2011 （FY）

69

74

78

79

2003

2008

2009

2010

78

20

2,000
0

0

2011 （FY）
Recycle yeast broth asan organic fertilizer

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

and water intensity and recycling) improved. CO2 by 31%,
energy by 26%, waste by 43%, water by 49% and recycling

41(MJ/mill. cigs)

provements in environmental performance per million cigronmental key performance indicators (CO2, energy, waste

Production Waste Recycling Rate

Approaches to Protecting
the Global Environment

JTI recognizes the benefit of a strong and disciplined ap-

2008

Strengthening of
the Business Foundation

the second half of 2010 and implementation started in 2011.

fuel
2003

Supply Chain Management

0.1

JTI’s EHS Summary0

Appropriate Manufacturing Process
and Consumer Services

Activities in the International Tobacco Business

42

Environmental Accounting FY2011
Scope: All JT establishments
Period: FY2010 (April 1, 2010 to March 31, 2011), FY2011 (April 1, 2011 to March 31, 2012)

Environmental Conservation Cost

Unit: million yen
Results in FY2010

Results in FY2011

AmountInvested

Amount of
Expenditure

AmountInvested

Amountof
Expenditure

—

656

2,017

405.4

1,822

① Pollution prevention costs

Adoption of LEVs and fuel-efficient vehicles; facility depreciation costs;
maintenance, operation and management of pollution control facilities, etc.

120

555

257

475

Global environmental② preservation costs

Replacement of freezers; facility depreciation costs; maintenance, operation and management of energy-saving facilities, etc.

534

140

148

118

③ Resource circulation costs

PCB waste management; facility depreciation costs;
waste disposal and recycling, etc.

2

1,322

0.4

1,229

(2) Costs of reducing production/service-derived impact upstream or downstream duringresource circulation (upstream/downstream
costs)

Recycling of containers and packaging materials, etc.

—

102

—

79

(3) Environmental preservation costs in management activities (management activity costs)

Environmental audits; environmental education; operation of organizations responsible for environmental management; monitoring and measurement of environmental load; improvement of green space, etc.

—

532

—

511

(4) Environmental preservation costs involved
in R&D (R&D costs)

Survey of the environmental impact of products, etc.

—

20

—

1

(5) Environmental preservation costs involved
in social activities (social activity costs)

Environmental cleaning measures; reforestation and forest conservation activities; contribution to environmental bodies; preparation of the CSR Report, etc.

—

3,912

—

3,383

(6) Costs of dealing with environmental damage

Pollution impact levies; soil pollution survey and remedial measures, etc.

—

1,018

—

81

(7) Other environmental costs

Asbestos survey and remedial measures, etc.

—

49

—

44

656

7,650

405.4

5,921

Category

Key Measures(1) Environmental preservation costs to reduce
production / service-derived environmental
impact in JT’s business areas (business area
costs)Breakdown

Total

Environmental Conservation Benefit
Actual Effects

Item
Amount of electricity purchased

Effect on resources invested
in business activities

Fuel consumption(crude oil equivalent)
Vehicle fuel consumption(crude oil equivalent)

Results in FY2011

Year-On-Year Reduction

1,000kWh

312,972

286,236-26,736kℓ

26,32022,762-3,558

kℓ

3,932

3,989

57

1,000m3

1,682

1,486

-196

SOX emissions*

t

62

57

-5

NOX emissions*

t

99

91

-8

Amount of water used

Effect on environmental impact
and waste producedby business activities

Results in FY2010

Amount of CO2 emitted*

1,000t-CO2

193

174

-19

Amount of waste water*

1,000m3

1,072

951

-121

Amount of waste, etc.

1,000t25

24-1*Actual data at factories

Economic Benefit

Unit: million yen

Actual Effects

Results in FY2010

Results in FY2011

Income from recycling (sale of by-products)

36

86

Cost reduction by saving energy (year-on-year)

182

33

Guidelines for Environmental Accounting
Environmental Conservation Cost

Based on the “Environmental Accounting Guidelines 2005” of the Ministry of the EnvironmentsExpenditure and investment in environmental conservation programs are included.
sFor those partially made in environmental conservation programs (more than 50%), the total amount of investment and depreciation costs are included.
sExpenditures for depreciation of facilities have been recorded under expenditure for the depreciation in the financial statement.

Environmental Conservation Benefit sBenefit is measured as the year-on-year difference of the environmental impact.
Economic Benefit

sBenefits to company's profits as a result of carrying forward with environmental conservation activities.

CSR Report 2012

Towards Harmonious Relationships with Local Communities

Disaster Relief Activities in Areas Hit by the Great East Japan Earthquake

Since immediately after the Great East Japan Earthquake of 2011, the JT Group has conducted a variety of disaster relief activities, including monetary and relief goods donations by the whole JT employees. In this section, we describe the JT Group’s

Social Contribution Activities
across the World

major disaster relief activities.
URL

JT Group’s activities relating to the Great East Japan Earthquake (Japanese)

JT Group’s Relief Activities

Photo: K.Miura

Contributing to Local Community Development

Activities by “JT Volunteers to Support East Japan”
JT has dispatched “JT Volunteers to Support East Japan,”Since the Great East Japan Earthquake occurred on Marcha volunteer team comprised of JT Group employees, to the11, 2011, the JT Group has worked as one in conducting

disaster areas since June 2011. In cooperation with relevant

relief activities.

organizations, such as disaster volunteer centers, JT Volun-

Immediately after the earthquake, we donated relief goods

teers to Support East Japan has been conducting activities

such as our products of beverages and processed foods as

to assist restoration and reconstruction work, such aswell as winter clothes and prepared on-site meals in accor-

removing debris from damaged community centers anddance with the needs of the disaster areas. In addition, JT

salmon farms, transporting relief goods, cleaning photo-

and Torii Pharmaceutical, a JT subsidiary, donated a total ofgraphs and letters recovered from among debris and help-¥350 million.

ing to organize regional recov-

About 7,100 JT Group employees made donations, and theery events. This volunteer teamwas dispatched 14 times to the

donated the same amount of money as the total sum of

disaster areas, with the participation of a total of 300 volun-

Outside Japan, Japan Tobacco International (JTI), which

through the matching-gift program, the total came toteers.

relationships with the local communities in which we oper-

acts as the core of the JT Group’s international tobacco

approximately ¥121 million. “JT Volunteers to Support Eastate and support local community development. Our busi-

business, is conducting social contribution activities,

Japan,” a volunteer team comprised of JT Group employ-

The JTI Japan Disaster Relief Fundness operations focused on the domestic market until our

mainly focused on supporting culture and arts and assist-ees, has been started since June 2011 and the team was dis-

Immediately after the Great East Japan Earthquake of Marchestablishment as a corporation in 1985. However, our busi-

ing the lives of less-advantaged people in the local commu-

patched to the disaster areas a total of 14 times.

2011, JTI established the Japan Disaster Relief Fund, andness operations have become increasingly global sincenities.

JT Marvelous, the women's volleyball team, and JT Thun-raised a total of nearly USD 6 million to assist victims of the1999 and have so far expanded to cover 120 countries

Since the Great East Japan Earthquake occurred in Marchders, the men’s volleyball team, organized fundraising andcatastrophe. The funds have been administered by the JTI

around the world. To contribute to the development of the2011, the JT Group as a whole both domestic and overseas

charity events. The Tobacco & Salt Museum operated by JT,

Foundation, whose mission is to help victims of disasters

local communities where we operate, the JT Group is tack-has worked together to provide disaster relief.

donated part of its revenue from the sale of goods for theacross the world, cooperating with organizations that special-ling the key challenges faced by each community.

JT Group will continue to engage in a variety of social con-reconstruction of damaged local museums and other facilities.

ize in disaster relief or disaster-risk reduction. In collaboration

In Japan, we are engaging in a variety of social contribu-

tribution activities in and outside Japan, with a view to fos-

Outside Japan, JTI, which acts as the core of the JT Group’s

with renowned organizations including Peace Winds Japan,

tion activities, including street cleanup campaigns, the JT

tering harmonious relationships with the local communi-international tobacco business, established the JapanAAR Japan and NICCO, the Fund has supported a variety ofForest initiative for forest conservation, a financial support

ties to contribute to their development.

Restoration of a salmon farm

Disaster Relief Fund. Donations totaling approximately USD

humanitarian projects – ranging from the delivery of food andprogram for non-profit organizations (NPOs) and support

5.9 million (approximately ¥480 million) made by JTI em-

essential non-food items, the provision of cash grants, supply-

for culture and arts.

ployees and suppliers in about 120 countries around theing vehicles for people with disabilities – to financing

world have been distributed through the JTI Foundation tocommunity-based economic recovery projects in Japan’s mostthe disaster areas for post-earthquake reconstruction.

affected prefectures. The JTI Foundation will continue sup-Approaches to Protecting
the Global Environment

donations by the employees. Including the money donated
JT Group believes that it is important to foster harmonious

Strengthening of
the Business Foundation

JT Group implemented a matching-gift program, in which it

Supply Chain Management

As a good corporate citizen maintaining
harmonious relationships with society, theJT Group will fulfill its corporate responsibility through making meaningful contributions
to the communities in which it operates.

www.jti.co.jp/announce/support

Appropriate Manufacturing Process
and Consumer Services

Disaster Relief Activities in Areas Hit
by the Great East Japan Earthquake

porting medium- and long-term
recovery projects, including theImmediately after the earthquake, TableMark Co., Ltd. sta-reconstruction and rehabilitation

rted dispatching employees to the disaster areas to prepareof community centers and other

their products of freshly-boiled wheat noodles and hot

facilities vital for local communi-

meals for local residents. In addition, TableMark donatedties.

Support for the fishing industry
in Ofunato, Iwate Prefecture

frozen noodles, cup instant noodles and snack foods tolarge evacuation centers, hospitals and nursing homes. In
Prominent persons from various fields
speak at the JT Forum43

CSR Report 2012

In the JT Shogi Japan Tournament, professional shogi
players engage in matches before the audience

Volleyball coaching by JT Marvelous

March and April 2011, TableMark donated about 50,000
servings of food in the disaster areas.

More information about the JTI Foundation,and its partners and projects worldwide, can be found at
URL

www.jtifoundation.org

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

On-Site Meal Preparation by TableMark

44

Towards Harmonious Relationships
with Local Communities

Social Contribution Activities across the World

Promoting Culture and Art at the Rijksmuseum
JTI supports the Netherland’s famous Rijksmuseum – one

JT Group companies in Japan consistently support their local communities, with the aim of demonstrating ‘good corporateof the nation’s largest and most visited cultural heritage

JTI supports the South African ‘Kasi Phezulu’ project, whichcitizenship’, and sustaining a harmonious relationship with Japanese society as a whole.

spaces. JTI Netherlands provides funding for the Museum’s

promotes enterprise in townships and other disadvantaged

Japan Tobacco International (JTI), a tobacco business operating in more than 120 countries worldwide, also plays a key role

‘special’

exhibitions,locations. The initiative focuses on businesses including

in supporting the development of the local communities in which it operates.

held every summer – in-shops and taverns that are often at the heart of struggling

JTI focuses on two specific agendas: improving the quality of life of the less advantaged, and promoting the arts.

cluding the Museum’s

communities. It aims to transform these into ‘community

Efforts to the Harmonious Coexistence across Japan

2011 collaboration withhubs’ that help to em-

renowned

power local people. ‘Kasi
Phezulu’Bringing relief, aid and comfort to the elderly is one of thetal event inspired by

4,000 enterprises to datetionship with society.

cornerstones of our Corporate Philanthropy policy. JTI

Rembrandt’s

Among these, JT has been engaged in cleanup activities inworks closely with Caritas Georgia to assist poor and disad-‘Night Watch’ painting.

the neighborhood of its establishments for years as a mem-

vantaged older persons. In 2011,

ber of communities. Sales offices, manufacturing sites and

JTI lent its support to the Caritas

Aiding the Elderly with Prague’s Život90

nesses and community

group companies’ establishments across Japan conduct‘Soup Kitchen’ in Tbilisi, which

Since its foundation in 1990, the Czech civic association

leaders it serves.

cleanup activities participated by employees. In addition,

provides 185 elderly individualsŽivot90 has been recognized as the country’s primary relief

employees take part in cleanup activities held at various

registered with the State Social

agency for Prague’s elderly citizens. In 2009, JTI launched a

Reconnecting Seniors with the Digital World

community events.

Program with a daily serving of

long-term program of support for Život90 with a fundrais-

Since 2007, JTI-Macdonald has partnered with reBOOT

JT, along with local communities, conducts the “JT For-nutritious hot food.

EdfamousAn Ed Kiefer installation at the Rijksmuseum’s
2011 summer exhibition

assisted– with JTI widely recognized as a ‘Partner of
Choice’The JTI-supported Soup Kitchen
in Tbilisi, Georgia

has

by

the

busiBuilding partnerships withlocal enterprises in South Africa

ing performance at the

Canada – a charity that refurbishes donated computers for

National

JTI

reuse by non-profit organizations. With the support of JTI-

Theatre.

has expanded to nine sites, ranging from Hokkaido in the

Supporting Cultural Heritage at the Mariinsky Theatre

also supports a number

Macdonald, the related reCONNECT project provides

north to Kagoshima in the south; where JT and local stake-Russia’s Mariinsky Theatre, whose origins date back toof Život90’s individual

seniors at over 100 centers across Canada with up-to-dateholders cooperate in the reforestation.

1783, is an historic venue for opera and ballet in St. Peters-

projects, including its re-technology,burg, currently under the artistic direction of the world fa-

habilitation centers, andand training. Seniors areport NPOs across Japan. The project is designed to support

mous maestro Valery Ger-

the telephone help-line

taught how to communi-

activities of NPOs in cooperation with communities. Since

giev. JTI is the Theater’satMoreover, JT focuses on “NPO Support Project” to sup-its

‘PortusHouse’

community center.

equipment

cate with their families
A social worker at the telephone help-line,
Portus House

using the internet – bythe launch in FY1999, the cumulative amount of financial

long-term

assistance of the project has surpassed one billion yen,supports its two major an-with the number of recipient organizations totaling 882.

nual programs – the Mos-

Engaging with Japanese Art and Technology in Poland

powering them to use thisFurthermore, JT engages in supporting arts and culture

cow Easter Festival and theBringing Japanese culture to the world is a central tenet oftechnology to enhance

including development of musicians and professional

Stars of the White Nights

our Corporate Philanthropy policy. Since 2009, JTI has part-the quality of their lives.

orchestras, organizing JT Forum cultural events, operation

Festival.

partner,ande-mail and webcam – em-

Seniors at a Toronto reCONNECT centersnered with the Museum of Japanese Art and Technology
Manggha, based in the historic Polish city of Krakow. JTI

Partnering with the Busan International Film Festival

Promoting Literacy and Knowledge with Emmaüs

provides financial and organizational support for events

JTI is a partner of Korea’s Busan International Film Festival

leyball team, and JT Marvelous, the women's volleyball

JTI is committed to promoting adult literacy. In France, JTI

that attract more than 100,000 visitors annually. Recent JTI(BIFF), which promotes the development of new cinematicteam, provide volleyballsupports Association Emmaüs, which works with disadvan-– partnered events at the venue include the Open Academy

talent, and is one of Asia’s most significant film festivals.

coaching across Japan

taged individuals in the community to combat the causes ofof Japanese Cinema and the Butoh Dance Festival.

During the nine days of the 2011 Festival – attended byof the Tobacco and Salt Museum and operating the Affinisin order to contribute to

exclusion. Since 2004, JTI France has assisted Emmaüs’ Lit-

190,000 people – BIFF focused on showcasing new films

the promotion and dev-

eracy Centers to develop new programs for illiterate adults,

andelopment of community

helping them to flour-

directors

sports activities.

ish as more indepen-

Asian origin.

URL
Related pages

www.jt.com/csr/social
p13-14

Feature 2: From Forest Conservation and Development
to Co-habitation with Forests

CSR Report 2012

first-timeofdent citizens throughits educational curriculum, and artistic andcultural workshops.
A student and teacher
at the Emmaüs’ Literacy Center

The Museum of Art and Technology, designed byprominent Japanese architect Arata Isozaki

BIFF official opening ceremony

CSR Report 2012

Towards Harmonious Relationships
with Local Communities

Social contribution activities

Approaches to Protecting
the Global Environment

Swan Lake© Natasha Razina / Mariinsky Theatre

Arts Foundation. Meanwhile, JT Thunders, the men’s vol-JT Forest activities

Strengthening of
the Business Foundation

Kiefer in an experimen-social contribution activities to maintain harmonious rela-artistSupply Chain Management

JT’s business establishments in Japan conduct various

Combating Hunger with the ‘Caritas Georgia’ Soup
Kitchenest” initiative to revitalize the forest of Japan. The JT Forest

45

Building Businesses in South Africa’s Poorer Communities

Appropriate Manufacturing Process
and Consumer Services

The JT Group is committed to a number of initiatives that positively contribute to the development of the communities inwhich it operates.

46

Towards Harmonious Relationships
with Local Communities

History of JT and its CSR Activities
1985 Establishment of Japan Tobacco Inc.

Tobacco & Salt Museum (Japan)

Street Cleanup Activity
at Business Establishments (Japan)

1988 Branched out into beverage business1993 Established the Central Pharmaceutical Research Institute

JT opened the Tobacco & Salt Museum (Shibuya Ward,

As part of its effort to contribute to local communities, theTokyo) in 1978 in order to help people learn about tobacco

JT Group has been engaging in street cleanup activity inand salt, both of which have been intertwined with humanthe neighborhoods of its business establishments acrosshistory and culture and have a long history of their own asJapan. The JT Group has also organized cleanup cam-an industry. This museum has its roots in the effort started

paigns involving local residents, and JT Group employees

in 1932 by the Ministry of Finance’s monopoly bureau tohave participated as volunteers in cleanup activity orga-

systematically collect tobacco-related historical artifacts. It

nized by local communities.

not only displays artifacts but also pours efforts into

JT’s Chiba Area Sales HQ has been organizing a campaign

research on cultural and industrial history relating to

named “a volunteer street cleanup anyone can join” three

tobacco and salt.

or four times each year since 2009. In the campaign of Sep-

Permanent exhibits provide wide-ranging knowledge con-tember 2011, a record 216 volunteers participated. The
Chiba ASHQ is hoping to develop this campaign into a vol-Regarding tobacco, the museum displays smoking devices,

unteer community activity with widespread citizen partici-

product packages and commercial posters of earlier eras so

pation.

as to familiarize visitors with the history of tobacco span-

At JT’s Kyoto ASHQ, 24 employees and family members

ning from the beginning of the custom of smoking and theparticipated in a town beautification campaign organized

Set up the JT Global Environment Charter1998 Branched out into processed food business

Acquired the majority share of Torii Pharmaceutical Co., Ltd.
Released the first environmental report
1999 Acquired the non-U.S. tobacco operations of RJR Nabisco Inc.
Acquired the food business of Asahi Kasei Corporation
2000 Set up the JT compliance system

first arrival of tobacco in Japan to the present day. As forby Kyoto City and its cooperative body in July 2011 to cleansalt, the museum mainly provides information about thethe streets of this ancient capital around the time of thecharacteristics of salt, salt resources around the world andannual Gion Festival. The employees and family members,

the history of salt-making in Japan. Each exhibit is struc-together with other volunteers, collected rubbish as theytured so as to facilitate updating of information.

strolled along a 2-kilomter- route for about an hour.

Special and feature exhibits shed light on cultures and cus-

JT subsidiaries are also engaging in street cleanup activ-

toms relating to tobacco and salt in various regions andity. At Torii Pharmaceutical Ltd., the head office, brancheras by displaying a broad range of objects, including

offices and the Sakura Plant (Sakura City, Chiba Prefecture)

handicraft, design and photographs.

participate in such activity. Employees at the head office

Each summer, the museum organizes the “Summer Salt

participated in the “Clean Day” campaign, which was orga-

Seminar” in which children learn about salt from experi-

nized by the administrative authority. Each year, employees
at the Sakura Plant and branch offices take part in street
cleanup activity around November 1, the anniversary of the2004 Set up the JT Group Environment Charter2005 Launched the JT Forest initiative(reforestation and forest conservation activities)
Set up the CSR Division
2006 Reorganized the CSR Division (with approaches to the global environment
conservation and social contribution activities combined)
Set up the CSR Committee
2007 Launched afforestation and forest conservation activities in Africa
Acquired all the issued shares of the Gallaher Group plc (U.K.)
2008 Acquired all the issued shares of Katokichi Co., Ltd.
2010 Changed the name of Katokichi Co., Ltd. to TableMark Co., Ltd.

company’s foundation.

Tobacco & Salt Museum
URL

1995 Established the Global Environment Division

Acquired the majority share of Unimat Corporation*2

cerning history and culture related to tobacco and salt.

ments and exhibits.

1994 Established the Corporate Culture Division*1

www.jti.co.jp/Culture/museum̲e

The JT Group will continue to foster harmonious relationships with the local communities in which it operates
through conscientious activities like this.

*1 The present Corporate Citizenship Department*2 The present Japan Beverage Holdings Inc.

Exhibit of tobacco productsof the modern era

Street cleanup activity
by the Chiba Area Sales HQStreet cleanup activity
by the Kyoto Area Sales HQ

Exhibit of salt resources around the world

47

CSR Report 2012

CSR Report 201248