Human capital driving the realization of the JT Group Purpose
The JT Group Purpose, "Fulfilling Moments, Enriching Life," defines the role the Group is expected to play in society and the direction of its approach to value creation. It also serves as the foundation for all management decisions and business activities, including our medium- to long-term and sustainability strategies. Realizing our Purpose is directly tied to both the sustainability of society and the medium- to long-term enhancement of the Group's corporate value. The starting point for all efforts toward achieving our Purpose is each and every employee who drives value creation. As the officer responsible for human capital, I believe that the foundation for realizing our Purpose and enhancing corporate value lies in the strength of every individual employee.
Diverse talent driving transformation and advancing to new stages
We have long shared a healthy sense of urgency across the Group. This stems from our belief that standing still means falling behind, and that we cannot continue to meet society's expectations and earn its trust unless we keep moving forward. Underlying this mindset is our recognition that, given our origins as a former public corporation, we were not always exposed to a truly competitive business environment. At the same time, the nature of the tobacco business historically made the medium- to long-term business environment relatively predictable, allowing us to pursue a variety of initiatives from a long-term perspective.
Since incorporation, we have established ourselves as an independent business enterprise, diversified beyond our tobacco business foundation, and steadily evolved our business portfolio through strategic focus and selective investments in response to changes in the business environment. In particular, the expansion of our international tobacco business through M&As not only broadened the Group's geographic reach, but also served as a catalyst for evolving our management approach into one built on global competition.
While these challenges were driven by management decisions at each stage, it was each and every employee who embraced those directions, put them into action, and translated them into changes in their own behavior. Through these continued efforts to move the Group forward, we are now united under our Purpose by colleagues representing more than 100 nationalities.
In the JT Group Human Resource Management Philosophy, we state that the diversity of our people is a source of our competitiveness. Even as uncertainty surrounding the business environment continues to grow, we believe that by maintaining and evolving an environment in which each employee can fully demonstrate their individuality and capabilities, inspire one another, take on new challenges, and overcome them together, we will continue to deliver sustainable value to society, shareholders, and consumers.
Our approach to human capital
We view human capital through three elements: Our People, Organizational Culture, and Ownership.
"Our People" are the starting point for all activities aimed at realizing our Purpose. They are the driving force behind our business activities and the source of our value creation. By enabling each employee to maximize their potential, and by fostering collaboration among people with diverse experiences, backgrounds, and values, we support the Group's sustainable growth.
"Organizational Culture" refers to the shared values that are deeply rooted within the organization and serve as standards for decision-making and behavior. Over many years, we have fostered a culture grounded in integrity based on high ethical standards, mutual support for one another's growth, and the inclusion and empowerment of people with diverse backgrounds. Even in an era of increasingly diverse values, we believe that these shared values will continue to function as a common foundation for decision-making, enabling the JT Group to sustainably create value that is uniquely its own.
"Ownership," meanwhile, refers to the mindset of understanding and embracing our Purpose, and proactively putting the Group's values and expected behaviors into practice through one's own decisions and actions. We believe it is essential to create a mutually beneficial cycle in which each employee fully demonstrates their capabilities while the values shared across the organization become embedded throughout the Group as standards for decision-making and behavior. Ownership is the driving force behind this cycle.
Evolving people management to maximize individual potential
We have continuously evolved our people management approach with the aim of strengthening our human capital. For example, in 2006, based on the core concept that employees and the company contribute to and are rewarded through work, while growing together, we implemented major reforms, including the introduction of a job-based compensation system, the establishment of job categories aligned with expertise and skills, and various systems designed to support autonomous career development.
Then, beginning in 2022, we introduced significant changes to our people management framework under the concept of a "multi-package" approach, whereby different systems coexist within the same company to best support the execution of roles across businesses and functions with differing business phases and competitive environments. In D-LAB, which is responsible for new business domains, we introduced a qualification and grading framework, along with related compensation, goal management, and evaluation systems, that are entirely different from those used in our existing businesses.
In addition, following the integration of the global management structure of the tobacco business, we have advanced the global standardization of HR systems and policies to maximize the use of the Group's human resources.
Most recently, we have been reviewing various systems to better support career development in an era of longer working lives, where living to 100 is becoming increasingly common, with the majority of these changes scheduled to be introduced from fiscal year 2027.
Pursuing continuous evolution
These initiatives represent only a part of the challenges we have undertaken in people management. Whenever we review systems that impact individual employees, as well as the organizational climate and corporate culture they collectively shape, top management becomes directly involved from the earliest stages, engaging in thorough discussions. We believe that the idea of "People come first"̶the recognition that people are indispensable to corporate activities̶is deeply embedded in the DNA of our Group.
Going forward, we will continue to evolve our people management approach so that we can consistently deliver value that surpasses the imagination and expectations of society, shareholders, and consumers, and earn their continued support as a Group that brings its Purpose to life.
Initiatives to strengthen human capital
Six priority themes
To strengthen our human capital, the JT Group aims to attract diverse talent from both inside and outside the Group, foster organizations where employees can thrive, and empower each individual to grow while maximizing their strengths and capabilities. To achieve this, we have established six priority themes. We have also established metrics to track the progress and effectiveness of initiatives under each theme, and continuously monitor them to verify and improve our initiatives. Going forward, we will continue promoting initiatives to strengthen human capital with the aim of further enhancing our corporate value.
Priority theme 1: Diversity, equity & inclusion
The JT Group believes that creating an environment where diverse people can continue to thrive leads to sustainable growth. We regard the various differences among employees, including their attributes and backgrounds, as valuable sources of competitiveness, and place great importance on diversity among our people. We are committed to creating an environment in which diverse people are treated fairly regardless of differences in attributes and values, and can continue to perform at their best.
Promotion of diverse talent and support for their success
- We recruit people with diverse backgrounds and values, and provide employees with various training programs and awareness-building activities, including seminars and events, to deepen understanding of diversity.
- Aiming to create workplace environments where everyone can thrive, in Japan we are promoting initiatives to support the employment of people with disabilities and implementing multilingual measures to help employees of diverse nationalities succeed.
- As a result of our various initiatives supporting LGBTQ+ inclusion, in 2025 we received the highest Gold rating in the PRIDE Index for the 10th consecutive year, as well as our first Rainbow certification.
Gender equity̶Promotion of women's advancement
- We have established a Group target of achieving a 30% ratio of women in management positions by 2030. Beginning in 2025, the ratio of women in management positions was also introduced as a KPI linked to executive compensation. In 2025, the ratio of women in management positions reached 26.4% (+1.5 percentage points year on year), demonstrating steady progress.
(%)
| Item | Male | Female | Total | |
|---|---|---|---|---|
| Employee demographics | 29 and younger | 10.1 | 5.6 | 15.7 |
| 30–49 | 48.9 | 17.5 | 66.4 | |
| 50 and older | 13.6 | 4.3 | 17.9 | |
| Ratio of managerial positions | 73.6 | 26.4 | 100 | |
| Gender wage differences* | Management | 100 | 99.1 | - |
| Non-management | 100 | 111.9 | - | |
* Women's wages relative to men's (100%) were calculated by country and company, then weighted averages were calculated according to the number of employees.
Priority theme 2: Talent attraction
For the JT Group, which operates multiple businesses globally, sustainable growth requires securing the talent needed for each region and business. To remain a company of choice for diverse talent, we are working to secure highly capable people by establishing attractive compensation levels tailored to each region and business, as well as by recruiting talent in ways that reflect the characteristics of each business. In addition, we are focused on recruiting and supporting the growth of management talent who will lead the future of the Group, leaders for each business, talent that drives business expansion and optimization, and people who explore new areas of value for society.
Various approaches to secure excellent talent
- We establish compensation benchmarks tailored to each region and business to ensure that our compensation levels remain attractive and competitive.
- JT International ("JTI") has been recognized as a Global Top Employer for 12 consecutive years, establishing a strong brand as an outstanding global company. At the same time, JTI conducts recruitment activities tailored to the circumstances of each country and region in order to attract highly capable talent.
Pipeline for management and business leaders
- To secure management and business leaders over the medium to long term, we are enhancing selective early development programs and building talent pools of future management candidates at each organizational level.
- Approximately 500 employees participate in development programs as candidates for future management and business leadership roles. Of these, around 200 employees are directly supported by senior management and business leaders, who take responsibility for their development. In addition to monitoring their progress, management continuously engages in multifaceted discussions regarding each individual's potential, medium- to long-term development challenges, and career plans, while also incorporating perspectives such as objective external assessments and competitiveness in the labor market.
Securing human resources to explore areas of new value
- D-LAB, the Group's corporate R&D organization, is engaged in activities aimed at providing "fulfilling moments" in new forms. By introducing HR systems tailored to the characteristics of these activities, D-LAB works to recruit and develop talent that supports new business development.
Priority theme 3: Attractive working conditions
The JT Group recognizes the importance of creating work environments that enable each employee to maximize their capabilities and contribute to organizational performance. We maintain systems that allow employees to autonomously choose workstyles that suit them, regardless of constraints related to work location or hours, or individual workstyle preferences. We are also working to create workplaces with a high level of psychological safety so that diverse talent can fully demonstrate their strengths and capabilities.
Work-life balance
- We have introduced systems such as flextime without core hours and remote work arrangements, and are working to enhance organizational performance by enabling employees to maximize their capabilities through the best mix of flexible workstyles and work locations, including office-based and remote work.
- Under the "Global Family Leave Policy" at JT and JTI, all employees are entitled to paid equivalent leave of up to 20 weeks when they become parents, regardless of gender or sexual orientation.
- At JT, we introduced Wellness Advance as a new support initiative addressing health issues related to sex differences, including menstrual symptoms, menopause, declining fertility, and gender-specific cancers. We have also expanded support measures such as subsidies for egg freezing.
- In 2025, the ratio of employees across the Group taking parental leave and related leave improved to 102% (+4 percentage points year on year), while the ratio for male employees increased steadily to 102% (+6 percentage points year on year).
- As a target for the domestic Group, we aim to achieve a 100% uptake rate for parental leave and related leave among male employees by 2030.
See Details
(%)
| Item | Male | Female | Total |
|---|---|---|---|
| Ratio of employees who took parental leave* | 102 | 101 | 102 |
* Of the employees whose child was born, or whose partner gave birth, during the relevant fiscal year, the percentage of employees who took parental leave and related leave under applicable local laws and regulations, or childcare-related leave independently established by each company. If employees take parental leave or related leave in the current fiscal year for a child born in a previous fiscal year, the uptake rate may exceed 100% in the current fiscal year.
Creating workplaces with high psychological safety
- We conduct annual employee engagement surveys across the Group. In the fiscal year 2025 engagement survey, the participation rate was 94%, unchanged from the previous year, while the employee satisfaction score improved by 1 point year on year to 79.
- We have also established a framework that enables pulse surveys to be conducted as needed by region or department to better understand organizational conditions and drive improvements. Through these initiatives, we are working to create organizations and workplaces where all employees feel safe and can make the most of their strengths and capabilities.
Priority theme 4: Health and safety
The JT Group recognizes that providing healthy, safe, and supportive working environments, both physically and mentally, is fundamental to enable all employees to perform at their full potential and to ensure stable and reliable business operations across the JT Group. That is why we uphold the philosophy of "People come first," placing the utmost importance on safety and health and aim for zero harm that is zero work-related physical injury or mental damage in the JT Group Health and Safety Policy. We put a range of measures in place, including strengthening safety culture and awareness, ensuring appropriate risk controls, and expanding health-related support under this policy.
JT Group Health and Safety Policy
- To further promote health and ensure safety at work, we have established the JT Group Health and Safety Policy approved by the Board of Directors. In addition, we implement health and safety initiatives under the responsibility of the JT CEO and enhance group governance under a system supervised by the Board of Directors.
Initiatives to prevent workplace accidents
- We are committed to achieving zero work-related accidents by implementing preventive measures tailored to the specific risks of each operation. Risk assessments have identified driving vehicles and machinery operation as high-risk activities.
- Based on these assessments, we are introducing an app at overseas locations that analyzes driver behavior and provides tailored individual advice, while also promoting the global acquisition of ISO 45001 certification at tobacco factories.
- In addition, we are implementing health and safety education and training at each company and location to foster awareness and knowledge of safety, as a foundation for continuous maintenance and improvement.
Initiatives to maintain and promote physical and mental health
- At JT, KENKO Investment for Health is promoted under the leadership of the JT CEO. Through initiatives such as one-to-one interviews with employees conducted by occupational health staff across Japan, as well as seminars on self-care and managerial care, we support employees in promoting both physical and mental health so they can maximize their capabilities.
- Overseas, we are promoting various initiatives on a global basis, including data gathering related to occupational health to better understand risk and develop consistent approaches, as well as training Mental Health First Aiders who can provide an initial support within the workplace.
Priority theme 5: Development support
The JT Group believes that enabling each employee to realize the career they aspire to through their activities within the Group is important for strengthening human capital. As such, we actively support employees in independently thinking about and choosing their careers, and in taking action toward realizing their individual career plans.
Mechanisms to encourage autonomous career development
- In addition to annual career discussions in which employees talk about their career plans, transfer preferences, and constraints, we also provide opportunities for employees to independently explore and pursue diverse career paths beyond their current departments.
- At JT, we have introduced a career challenge system that allows employees to apply once a year for transfers to organizations of their choice, and we also conduct career roundtables and internal internship programs.
- In the tobacco business, we operate a job posting system that globally discloses open positions and allows employees to apply independently. In 2025, 4,569 positions were posted internally, attracting a cumulative total of 8,146 applications.
Learning opportunities to meet the diverse needs of employees
- We have introduced original, systematic learning programs that effectively combine on-the-job training, level-specific training, elective off-the-job training, and assessments, while identifying employees' strengths and challenges according to their stage of growth.
Fostering a feedback culture that supports growth
- We have established systems such as performance review meetings that provide feedback on employees' strengths and challenges, as well as one-on-one meetings that encourage continuous dialogue and create opportunities for meaningful communication.
- Every year, all Group employees participate in meetings where they receive feedback on their performance and advice aimed at supporting improvement and growth.
Priority theme 6: Internal and external collaboration
The JT Group is working to create opportunities that foster collaboration across regions, functions, and employees within the Group. We also actively promote collaboration with external companies and community organizations, bringing together diverse perspectives and knowledge beyond the boundaries of the Group to encourage activities that create new forms of fulfilling moments.
Promoting internal collaboration
- Using Workvivo, a digital communication tool shared across the Group, we encourage mutual understanding and knowledge sharing through the creation of various communities that transcend regions, businesses, and functions.
- As remote work becomes more widespread, we believe that offices are becoming increasingly important as places that promote collaboration. For example, at the JT Group head office, we regularly plan and hold events that encourage the use of the office for projects spanning regions, businesses, and functions, as well as interaction among employees beyond organizational boundaries, thereby creating opportunities for new ideas and collaboration.
Promoting external collaboration
- We also place importance on providing opportunities for employees to engage with society as its members and proactively address social and regional issues. Through engagement with diverse external stakeholders, including companies, universities, research institutions, and community organizations, we are expanding opportunities for employees to gain perspectives and knowledge that cannot be obtained within the Group alone.
- As part of these efforts, we provide opportunities and establish programs that support employee participation in volunteer activities. Since 2015, employees have contributed a cumulative total of 296,595 hours to volunteer activities during working hours.
Integrated Report
2026