Climate change is one of the biggest environmental challenges the world faces today. From a business perspective, it poses a threat to the supply of key raw materials, given the potential negative impacts on tobacco crops, as well as on the production of many of the non-tobacco materials used across our supply chain. It is therefore in our interest to reduce fossil fuel energy use and GHG emissions.
Environmental protection is a critical part of our responsibility to society. We work hard to identify, understand, and reduce our environmental impacts, going beyond strict legal minima.
Our commitment to environmental protection is reflected in the JT Group Environment Charter. Our commitment is wide-ranging and focuses on our whole value chain, from the procurement of raw materials to production, distribution, and sales.
To deliver improvements across the business, we have set targets in four key areas: prevention of global warming by reducing greenhouse gas (GHG) emissions, protection of water resources through sustainable water use, protecting biodiversity, and prevention of waste and promoting recycling along with effective resource use. Our newly developed Long-term Environment Plan outlines initiatives that aim to deliver these goals by 2020.
The JT Group Environment Charter Developed : May, 1995
Revised : May, 2010
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 strive to conserve a healthy and productive environment for future generations, and are committed to environmental issues and preservation of biodiversity.
Based on the JT Group Environment Policy, we continue to act as a good corporate citizen to local communities in all countries and regions where we operate, and strive to harmonize our corporate activities with the environment.
The JT Group Environment Policy
- Management systems
We establish effective environmental management systems and continually improve them
We comply with environmental laws and regulations everywhere that we operate
- Products and services
We reduce environmental impacts of our products and services in their development phase, taking into account potential impacts on biodiversity
- Process and supply chain
We reduce environmental impacts and optimize the use of natural resources at all stages of our activities, taking into account potential impacts on biodiversity. We encourage suppliers to understand and abide by our Environment Charter
- Environmental education
We develop environmental awareness among employees through education and training and encourage them to take personal responsibility for the environment
- Environmental communication
We openly communicate our environmental performance and engage with our stakeholders to build trust
The JT Group Long-term Environment Plan 2020
To support our Environment Charter, in 2014 we developed a Long-term Environment Plan to 2020. The Plan outlines medium- and long-term improvement targets and initiatives in four key areas:
- Prevention of global warming by reducing GHG emissions
- Protection of water resources through sustainable use of water
- Protection of biodiversity through sustainable stewardship of the natural environment
- Prevention of waste and promoting recycling along with effective resource use
The Plan also aims to enhance our environmental management approach on a global basis and deliver improvements in environmental data reporting.
Responsibility for environmental management rests with JT's Executive Deputy President. The head of each operating division controls environmental management within their division and relevant Group companies. The Group Executive Committee monitors performance and developments in environmental management.
Environmental management systems
The JT Group's environmental management system (EMS) is based on the ISO 14001 environmental management standard.
Using a formal EMS ensures that our processes are consistent and systematic across the business and that we continually improve our environmental performance.
All manufacturing sites are encouraged to obtain ISO 14001 certification. Non-manufacturing sites, such as research and development facilities and distribution centers, can seek formal certification or implement their own ISO 14001 compliant EMS.
Smaller sites and offices use simplified versions. By using different levels of EMS, we manage environmental impacts according to the nature and scale of an individual operation.
The JT Group environmental charter
We started measuring our energy and GHG emissions in 1995. All of our sites are required to produce action plans with quantified energy and/or missions reductions targets that include details of investments required and the payback period for investments. In this way we have a continual focus on monitoring our performance and identifying opportunities for improvements.
Measuring emissions across our value chain
In addition to direct (Scope 1) emissions from fuel use at our sites and indirect (Scope 2) emissions from the electricity we purchase, we have been monitoring GHG emissions for the JT Group's entire value chain (Scope 3) since 2011. Although these Scope 3 emissions are outside the direct control of the JT Group, this process allows us to identify the areas responsible for the greatest emissions and to examine the most effective way to reduce them.
We have set long-term GHG targets for 2020:
- To reduce the JT Group GHG emissions (Scope 1 and 2) by 20% by 2020 compared to 2009
- To reduce GHG emissions from our tobacco business per million cigarettes equivalent by 20% by 2020 compared to 2009
- To monitor GHG emissions through the JT Group's entire value chain (Scope 3 emissions) and to establish an effective way to reduce these emissions
We will deliver these targets through focused efficiency programs, including an ongoing, comprehensive energy survey in our production facilities. We are also targeting fuel efficiency and emissions from our vehicle fleet. For modalwindow, we provide eco-efficient driver training and run high-stack loading of trucks.
Water and waste
As a business with significant global manufacturing operations, using resources efficiently is a high priority across the JT Group. Our main areas of focus are reducing waste and increasing recycling, and using water efficiently and responsibly. This not only provides environmental benefits, but also delivers cost savings and drives efficiency in our operations.
We project waste generation and water use at each of our sites as part of the planning cycle at our operations. We also assess our processes and equipment to identify and implement waste reduction and water efficiency programs.
Sustainable water use
Many of our products are made from natural components; thus, we consider the conservation of water resources as one of the most important environmental issues for the JT Group. Our Long-term Environment Plan includes a goal to conduct a water risk assessment for all our businesses and to establish appropriate protective and remedial measures in the coming years. The risk mapping process will involve assessing water scarcity and availability forecasts up to 2050, as well as flood, regulatory, and reputational risks.
Our Long-term Environment Plan prioritizes waste prevention through continuous promotion of the 3R waste hierarchy - Reduce, Reuse, Recycle. Our factories are the main source of waste generation across the JT Group, and we started to monitor and record waste data in 1995. The challenge we face is to improve the detail of our waste monitoring in order to identify improvement initiatives and enable good practice sharing between operations. We remain focused on this challenge and anticipate continued improvements in this area.
Biodiversity plays an important part in natural processes that are critical to agricultural productivity, such as crop pollination. Linked to this, tobacco is usually grown in biologically diverse areas, so we collaborate with our supplier farmers to minimize biodiversity impacts in our tobacco supply chain.
We do not currently have a uniform approach to biodiversity across the JT Group. It is, however, a focus of our Longterm Environmental Plan. This outlines our commitment and approach towards biodiversity to 2020 and establishes a goal to assess the impact of our worldwide operations on biodiversity.
Once we understand our impacts better, we can establish measures to protect biodiversity in a way that responds to the needs and challenges in our operating locations. We launched a program to assess our biodiversity impacts in 2014, and we expect to complete this in the next two years.
Biodiversity in our supply chain
Our approach is to focus on aspects of biodiversity where we can make a difference directly or have a positive influence on those working in the tobacco supply chain.
Agrobiodiversity relates to biodiversity on farms. A key factor in this area is including tobacco growers in the process of managing biodiversity on their tobacco farms. Our aim with agrobiodiversity is to establish tobacco production systems that are economically viable, socially acceptable, and environmentally sustainable. Our developing approach to agrobiodiversity is currently being monitored and studied in our agro-research center in Brazil (ADET) through several baseline studies in tobacco growing areas in collaboration with local universities and NGOs.
Growing and planting trees is central to our sustainability approach and serves two purposes. Agroforestry is our main focus, and is designed to ensure an adequate and sustainable supply of wood for tobacco curing. But we also reforest areas where trees have been cut down for use as timber and firewood.
Good agricultural practices and integrated pest management
We aim to promote agricultural practices that support sustainable tobacco production and meet our requirements, at the same time as improving productivity and returns for farmers. Integrated pest management helps farmers with pest control and ultimately reduces the use of pesticides, which may risk threatening biodiversity.
A large part of our approach is assessing and tackling social and economic factors that lead to biodiversity depletion and unsustainable natural resource use, in particular deforestation. A large part of this is working with, and educating, growers on the benefits of considering and managing biodiversity on their farms and promoting the adoption of best practices.
Some of our environment data has been externally verified.
Environment data verification statement
|Energy Consumption Breakdown (Terajoules)||2016|
|A. Non-renewable fuel consumed||5,693|
|B. Renewable fuel consumed||665|
|C. Electricity, heating, cooling and steam purchased for consumption||3,115|
|D. Self-generated electricity, heating, cooling and steam||2|
|E. Electricity, heating, cooling and steam sold||76|
(1,000 tons CO2e)
|Purchased goods and services||-||-||4,301||4,712||4,698||4,372||4,023||4,203|
(not included in Scope 1 or 2)
|Upstream transportation and distribution||-||-||467||435||440||446||391||443|
|Waste generated in operations||-||-||28||26||24||21||19||18|
|Upstream leased assets||-||-||0||1||1||1||0||0|
|Downstream transportation and distribution||-||-||326||336||334||345||306||292|
|Processing of sold products||-||-||7||6||5||3||2||2|
|Use of sold products||-||-||28||29||29||31||32||33|
|End of life treatment of sold products||-||-||56||71||66||68||62||57|
|Downstream leased assets||-||-||1||1||1||1||1||0|
|GHG emissions intensity for tobacco business (Scope1+2)
(tons CO2e per million cigarettes equivalent)
|Water withdrawal by source (1,000 m³)||2016|
|Fresh surface water||1,575|
|Water discharge by destination (1,000 m³)||2016|
|Fresh surface water||2,326|
|Municipal/industrial treatment plant||3,199|
|Waste generation breakdown (%)||2016|
The calculation methodology and scope are available in a Basis of Reporting.