Improving our social impact
By helping to make communities more inclusive and resilient, we believe that we can contribute to thesustainable growth of societies. That’s why community investment is an inherent part of oursustainability strategy, which follows our 4S model.

Target*Between 2015 and 2030 we will invest 600 million U.S. dollars to help make communities
inclusive and resilient, with our employees contributing 300,000 volunteering hours.
*

This is a Group-wide target.

Progress
Since 2015, we have invested 300 million U.S. dollars in our communities and employees havevolunteered 119,349 hours on company time.

Value of JT Group investments in the community (U.S. dollars)

Value of our investments in thecommunity

Accumulated value of investmentsin the community

2030

2015

2016

2017

2018

2019

74MM

68MM

54MM

53MM

50MM

74MM

142MM 197MM 250MM 300MM 600MMTARGETMM = 1,000,000 U.S. dollars

Hours volunteered by JT Group employees

Number of hours volunteered byour employees

2015*

2016*

2017

2018

2019

13,997*

24,957

21,911

25,42933,055

13,997

38,95460,86586,2942030
TARGET

Accumulated number ofcommunity volunteering
hours contributed by ouremployees*Data only available for international tobacco business.

Our approach

119,34300,0090For us, community investment is a way to voluntarily engage with charitable organizations, make adifference in the communities where we operate, and reach beyond our core business operations. In
2018, we revised our community investment policy, which determines a common goal across the JT
Group: “To contribute to the development of sustainable societies, by helping to make communities
more inclusive”. This will allow us to make a positive social impact and contribute more to oursustainable growth.
We believe that everyone should have the opportunity to participate in society, and that inclusive
societies are also better for business. Our policy helps ensure that this philosophy is coherently
implemented, both internally and externally, and that all of our programs respect the environment andthe diversity of societies and individuals.
Through long-term partnerships with various stakeholders, we are implementing 398 community
programs that contribute to the development of inclusive and sustainable societies across 68
countries. Our o ces around the world implement programs aligned with our JT Group community
investment policy and the United Nation’s Sustainable Development Goals (SDGs) Reduced Inequalities(goal 10), Sustainable Cities and Communities (goal 11), Life on Land (goal 15), and Partnerships for
the Goals (goal 17).

The programs target three speci c issues
based on global and local needs: reducing
inequalities, improving community resiliencein disaster-prone areas, and protecting theenvironment. We also offer volunteering
opportunities, enabling employees to engage
with our communities, develop new skills, andgain a sense of pride and satisfaction.

Kevin, a Leonard
Cheshire service user,taking part in a musicmaking workshop run
by the London
PhilharmonicOrchestra

Global community investment functions help
to implement the programs and ensure thatthey comply with our strategy and guidelines.

Reducing inequalities
Our mission is to support diversity in everything we do. We partner with organizations that drive social
inclusion, and support social welfare and access to arts and culture for all.
In 2019, we supported 226 social welfare and 105 arts and culture programs, covering 82% of thecountries where we operate.

Our programs also offer employees the opportunity to take part in a wide range of volunteering
activities and support our Company's social commitments.
Our many volunteering opportunities also support our HR initiative to build employees’ engagement andskills. In 2019, we conducted surveys for employees who participated in volunteering activities provided
by the Company. A total of 460 employees reported that these activities had helped them to gain skills
that were useful in their day jobs, as well as increased job satisfaction and a stronger interest involunteering. Read more about our volunteering opportunities.
In 2019, six countries reported impact data according to theLondon Benchmarking Group (LBG) frameworkfor programs related to 'reducing inequalities'.

Case study

Making Moscow’s museums more accessible
As part of our community investment
program, JTI partnered with the Garage
Museum of Contemporary Art in Moscow toimprove accessibility and raise awareness ofissues faced by people with disabilities.
This unique project involved adapting
exhibitions and training staff on how to create
and maintain a disability-friendly environment.
We also organized internships for people withdisabilities to learn more about art and gain
new professional skills.

© Garage
Museum ofContemporaryArt

The museum is now a safe and welcoming
space in which everyone can enjoy art. Its
employees have also been able to share their
new expertise with other cultural institutions
in Moscow, helping to make the city more
inclusive and accessible for all.

Improving community resilience
Our Company has built expertise in disaster management over the years, due to the disaster-prone
environment in Japan. In 2019, we supported 30 programs in total in 18 markets where we havebusiness presence, bene tting 211,564 people worldwide.

In Japan, we support charities that respond to disasters and help rebuild communities to be more
resilient in future. In 2019, the JT Group supported four long-term programs. We also developed
disaster risk resilience guidelines for our employees.

Case study

Rebuilding Rikuzentakata
When the Tohoku Earthquake struck in March 2011, the city of Rikuzentakata was devastated by apowerful tsunami. Vast swathes of farmland were submerged in seawater, bringing agricultural
production almost to a halt and causing severe damage to the local economy, including widespread
unemployment.

JT responded to the crisis by donating a newrice breed to the city, Takata no Yume, which
had been developed and owned by JT as adormant asset. The idea was to bring muchneeded income to the region to help
reconstruction efforts, and we worked closelywith the local authorities and growers to set
up and stabilize production.
This ambitious project has had a signi cant
impact on Rikuzentakata. Having begun with
one rice grower and 18 grams of seeds, it now
involves over 47 growers and an annual yieldof over 253 tons.* Takata no Yume has
become a symbol of the city’s resilience, anda source of local pride.
* Based on 2019 data.

Protecting the environmentWe try to reduce the environmental impact of our operations wherever we can, through environmental
programs that bene t both our communities and our employees. In 2019, we supported 33
environmental programs in 21 countries where we have a business presence.
In Japan, we are actively supporting the sustainable maintenance of nine forests by helping to preserve
them and spread awareness about environmental protection among JT employees by offering
volunteering opportunities. In 2019, 1,005 employees volunteered their time and many of them reported
that volunteering had a signi cant impact on their behavior towards the environment and their job
satisfaction.

Feedback from employees:■

61% reported that volunteering helped
them to gain skills that are useful intheir daily jobs■

58% would like to change their behavior
and move towards a more sustainable
use of natural resources■

65% reported an increase in job
satisfaction through volunteering

Measuring the impact of our actions isimportant for us to continuously improve ourprograms. In 2019, two markets reported
impact data according to the LBG
methodology for programs related to'environmental protection'.

Case study

Nurturing nature in Nakahechi forest
JT has been carrying out forest replantation
programs in Japan for over 15 years. We
began in Nakahechi forest in Wakayama
prefecture on the Kii peninsula – an area 90%
covered by forest, and home to the famous
Kumano Kodo world heritage site.
The purpose of this initiative is to securestable employment opportunities despite thedeclining forestry labor force in the region.
The program also contributes to improving
the technical skills of forestry workers.

When JT began working here in 2005, the forestry economy was stagnating. The average age offorestry workers was around 70, with few young employees. Over time, this led to a decrease in thenumber of forestry employees, exacerbated by a lack of training facilities that would appeal to ayounger generation. The aging workforce meant that new technology was slow to be introduced oradopted, resulting in an increasing number of neglected forests. As a result, disasters such as
landslides were more likely to occur.

JT has been promoting employment in thearea, training young forestry workers, andpromoting the acquisition of new technicalskills. This has led to the introduction of new
methods such as checking growth statususing drones, resulting in improved e ciency
and productivity.
The Nakahechi forest is now a thriving local

community, thanks to increased employment
among young people and improvements inforestry technology.

The JTI global water, sanitation, and hygiene (WASH)
initiative

TargetWe are investing up to 15 million U.S. dollars to enable adequate and affordable access to safe
and clean water and sanitation for one million people by 2025.

In a spirit of solidarity between mature and emerging markets, the top 10 markets in the JT Group set
up a fund to help new and developing markets make communities more inclusive and resilient. Not only
does this create a better balance of community investment presence across our Group, it also gives asigni cant boost to communities in need of help.
The JTI Global WASH initiative focuses on improving access to safe water and sanitation incommunities that struggle with this issue. In 2019, we launched three projects under this initiative: one
in Mexico and two in Bangladesh. We are now working with international charities specializing in
improving access to safe water and sanitation in these countries, and a new project is scheduled tolaunch in Ethiopia in 2020.

The JT SDGs Contribution ProjectAs part of our ambition to build more sustainable and inclusive societies, JT launched a new initiativein Japan in January 2020: the JT SDGs Contribution Project.
To enhance our engagement with Japanese communities, the project supports organizations working
on three speci c issues: reducing inequalities, improving community resilience in disaster-prone areas,and protecting the environment.
The JT SDGs Contribution Project replaces our JT NPO support program, which contributed a total of
1.5 billion Yen to 1,202 nonpro t organizations (NPOs) over two decades. The new project targets aneven broader range of organizations, offers increased funding, and accepts applications all year round.

Volunteering opportunities
Volunteering brings mutual bene ts for employees, our business, and the community. It also enables
our teams to make a positive impact in the communities where they live and work by sharing their skills
and knowledge.
We actively encourage our employees to take part in volunteering activities. We do this by organizing
programs and events, or by providing the necessary resources (funds through corporate matching,employee time, in kind, or fundraising).
In 2019, 13,896 employees worldwide spent 55,896 hours of their time supporting our community
programs.

【JT公式】JTI - The Big ChallengeCase study

Empowering new graduates in Myanmar
There is currently a signi cant knowledge andskills gap in Myanmar, due to a lack ofinvestment in education. As a result,
employers often recruit talent from overseas,
reducing the number of job opportunities forlocal people.
To help young people launch their careers andlook forward to a brighter future, wedeveloped an internship program at our JTI
o ces. The aim was to offer highly practicaland relevant work experience opportunities
for new graduates.

By spending time in an international, multicultural o ce environment, the interns were able to gain
con dence and valuable professional skills, such as teamwork and giving presentations. They also
learned how to collaborate with colleagues from many different backgrounds.
As part of this initiative, each intern was assigned a mentor at JTI. As well as providing guidance andsupport for the mentees, this helped our employees to develop their own con dence and coachingskills.

Measurement and evaluation

Our work is highly rated by external agencies, including the Dow Jones Sustainability Indices (DJSI),
which recognize us as the industry leader in corporate citizenship and philanthropy, with a perfect scoreof 100.

To measure the social impact of our work, we
use the LBG* Framework provided byCorporate Citizenship. In 2019, we invested 50
million U.S. dollars (7% charitable donationsand 93% community investment) in corporate
community investment in countries where weoperate. We encourage more accurate
reporting and measurement to ensure all ofour programs deliver the social impact
according to our policy.
*Global standard for measuring andreporting on corporate community
investment.

Contributing to our communities

We strive to make apositive difference ineverything we do. Ourcommunity investment
program focuses on
projects and initiatives
that will help make thecommunities in which we
operate more inclusive.
This enables everyone tothrive and play an activerole in their community.

Suzanne Wise,
Senior Vice President, Corporate
Development, JT International

Copyright© Japan Tobacco Inc. All rights reserved.