Global Reporting Initiative (GRI) Index

We have compiled the FY2019 Report according to the principles of the Global Reporting Initiative (GRI) Index Sustainability Reporting Standards. We defined the content of this document using a materiality assessment that covered the entire JT Group.

The Index below includes the location of and additional information pertaining to the Universal Standard Disclosures and the Specific Standard Disclosures. Further information on the calculation methodology and scoping is available in our Basis of Reporting, notably for the business divisions of Compliance, Human Resources (HR), Workplace Health and Safety, Environment, and Community Investment. Some of the data within the Report has been externally verified.

Universal Standard Disclosures

Organizational Profile

GRI indicator Disclosure
102-1
Name of organization
Japan Tobacco Inc.
102-2
Activities, brands, products, and services
Corporate profile

The regulatory approach to the Reduced-Risk Products* category varies greatly from country to country. Depending on the jurisdiction and product characteristics, there may be no restrictions, outright bans, or any number of regulatory variants.
There are countries in which:

>sales of E-Vapor and/or T-Vapor are banned completely;
› E-Vapor without nicotine is permitted, but E-Vapor with nicotine is effectively banned as a pharmaceutical license is required (e.g. Japan); or
› the same regulations apply to both cigarettes and T-Vapor.
  • * Reduced-Risk Products (RRP) are those with the potential to reduce the risks associated with smoking.
102-3
Location of headquarters
About our reporting
102-4
Location of operation
Corporate profile
102-5
Ownership and legal form
Integrated Report FY2019:
>History of the JT Group p.12~13 > Shareholder information p.105
102-6
Markets served

1 Geographic locations where products and services are offered:
Corporate profile


2 Sectors served:
Corporate profile


3 Types of customers and beneficiaries:
Our tobacco business value chain

Our pharmaceutical business value chain
Our processed food business value chain
102-7
Scale of organization
102-8
Information on employees and other workers
Corporate profile
Basis of Reporting

EMPLOYEES BY TYPE OF CONTRACT AND GENDER AS OF THE END OF 2019

TYPE OF CONTRACT MALE FEMALE TOTAL
Permanent (full- and part-time) 33,107 10,630 43,647
Temporary full-time 3,639 1,860 5,499
Temporary part-time *C n/a n/a 4,939
Temporary part-time *E 19 56 75
Supervised workers *C n/a n/a 1,759

COUNTRY THE NUMBER OF EMPLOYEES TOTAL
MALE FEMALE
Japan 13,561 4,643 18,204
Total of all other countries (excluding Japan) 23,095 7,847 30,942

 The above data excludes temporary part-time and supervised workers.
102-9
Supply chain
Description of the organization’s supply chain, including its main elements as they relate to the organization’s activities, primary brands, products, and services.

Corporate profile – Our businesses
Our tobacco business value chain
Building sustainable supply chains
Our pharmaceutical business value chain
Our processed food business value chain
102-10
Significant changes to the organization and its supply chain
102-11
Precautionary principle or approach
Whether and how the organization applies to the precautionary principle or approach.
Materiality
Risk management
102-12
External initiatives
A list of externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes, or endorses.
Stakeholder engagement
102-13
Membership of associations
A list of the main memberships of industry or other associations, and national or international advocacy organizations.
Stakeholder engagement

Strategy

Ethics and Integrity

GRI indicator Disclosure
102-16
Values, principles, standards, and norms of behavior
Our sustainability strategy
Group compliance
102-17
Mechanisms for advice and concerns about ethics
Our Codes of Conduct

Governance

GRI indicator Disclosure
102-14
Statement from senior decision-maker
A statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy for addressing sustainability.
Top message
102-15
Key impacts, risks, and opportunities
Integrated Report FY2019:
>Value creation story p.14~15
>Investing in people p.18~21
>Our material issues p.23
>Our sustainability strategy p.24~29
>Tobacco business sustainability strategy 4 focus areas p.36~41
>Risk factors p.54~57
>Non-financial key performance p.62~63
>Respect for Human Rights p.66
>Improving our social impact p.67
>Improving our environmental impact p.68~69
>Awards and recognition p.106

>Our sustainability strategy (materiality, sustainability strategy, sustainable development goals
Tobacco business sustainability strategy targets
Pharmaceutical business sustainability strategy targets
Processed food business sustainability strategy targets)
102-18
Governance structure
  • 1 Governance structure of the organization, including committees of the highest governance body.

  • 2 Committees responsible for decision-making on economic, environmental, and social topics.

Integrated Report FY2019:
>Good governance and business standards p.70~83

Corporate Governance
Compliance
102-19
Delegating authority
Process for delegating authority for economic, environmental, and social topics from the highest governance body to senior executives and other employees.
Integrated Report FY2019:
>Good governance and business standards p.70~83
102-20
Executive-level responsibility for economic, environmental, and social topics
  • 1 Whether the organization has appointed an executive-level position or positions with responsibility for economic, environmental, and social topics.

  • 2 Whether post holders report directly to the highest governance body.
Integrated Report FY2019:
>Good governance and business standards p.70~83

JTI Executive Committee:
https://www.jti.com/about-us/our-business/our-leadership
102-21
Consulting stakeholders on economic, environmental, and social topics
  • 1 Processes for consultation between stakeholders and the highest governance body on economic, environmental, and social topics.

  • 2 If consultation is delegated, describe to whom it is delegated and how the resulting feedback is provided to the highest governance body.
JT Group Materiality
Stakeholder engagement

Our initiatives for stakeholder engagement are described in the Sustainability section of our global website. For example, our engagement with:
› our suppliers such as directly contracted growers, third-party suppliers of tobacco leaf or other suppliers as well as government agencies, NGOs and industry organizations (see Building sustainable supply chains);
› our consumers or retailers (see Exceeding expectations with products and services);
› law enforcement partners in tackling illegal trade (see Tackling the Illegal trade );
› local communities (see Improving our social impact);
› our employees (see Our people, or The JT Group health and safety);
› our Human Rights External Advisory Board and other partners (see Respecting human rights).

Integrated Report FY2019:
>CFO message p. 58
102-22
Composition of the highest governance body and its committees
Composition of the highest governance body and its committees by:
  • 1 Executive or non-executive

  • 2 Independence

  • 3 Tenure on the governance body

  • 4 Number of each individual’s other significant positions and commitments, and

  • 5 The nature of the commitments

  • 6 Gender

  • 7 Membership of under-represented social groups

  • 8 Competencies relating to economic, environmental, and social topics

  • 9 Stakeholder representation

Integrated Report FY2019:
>Good governance and business standards p.70~83

Stakeholder Engagement

GRI indicator Disclosure
102-40
List of stakeholder groups
Stakeholder engagement

Integrated Report FY2019:
>CFO message p.58

Our initiatives for stakeholder engagement are described throughout the sustainability content. See explanation for 102-21 for more details.

JT Corporate Governance Policy p.2~7
https://www.jt.com/about/corporate_governance/pdf/20190320_11.pdf
102-41
Collective bargaining agreements
Basis of Reporting
A total of 64 companies have a union in our Group, and 93.1% of eligible employees (only in JT and Japanese domestic group companies) are covered by collective bargaining agreements. Due to legal requirements in certain countries, we can’t know whether employees are unionized, and thus cannot provide the information regarding employees in our international tobacco business.
102-42
Identifying and selecting stakeholders
The basis for identifying and selecting stakeholders with whom to engage.
Stakeholder engagement

Integrated Report FY2019:
>CFO message p.58

Our initiatives for stakeholder engagement are described throughout the sustainability content. See explanation for 102-21 for more details.

JT Corporate Governance Policy p.2~7
https://www.jt.com/about/corporate_governance/pdf/20190320_11.pdf
102-43
Approach to stakeholder engagement
The organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.

Stakeholder engagement

JT Corporate Governance Policy p.2~7
https://www.jt.com/about/corporate_governance/pdf/20190320_11.pdf
102-44
Key topics and concerns raised
The organization’s approach to stakeholder engagement, including frequency of engagement by type and by stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.

Stakeholder engagement

Integrated Report FY2019:
>Value creation p.12~18
>Sustainability: Strategy p.38~41, Absolute requirements for sustainability p.66~83

Reporting Practice

GRI indicator Disclosure
102-45
Entities included in the consolidated financial statements
JT Annual Securities Report FY2019:
https://www.jti.co.jp/investors/others/12g3_2/index.html
102-46
Defining report content and topic boundaries
  • 1 An explanation of the process for defining the report content and the topic boundaries.

  • 2 An explanation of how the organization has implemented the Reporting Principles for defining report content.

JT Group Materiality
Our sustainability strategy
Scope of data and information presented
102-47
List of material topics
A list of the material topics identified in the process for defining report content.
JT Group Materiality
102-48
Restatement of information
Sustainability Report FY2018 – Workplace health and safety data
All of our health and safety data from 2015 to 2018 has been recalculated to reflect newly acquired businesses more effectively. For further information, see our Basis of Reporting.

Number of fatalities of employees:
  • FY2018 Report: 2
  • Restated number: 1
  • Our newly acquired Ethiopian business suffered an employee fatality in 2018. This case is excluded due to the above reason.


Number of fatalities of contractors:
  • FY2018 Report: 1
  • Restated number: 0
  • Our newly acquired Ethiopian business suffered a contractor fatality in 2018. This case is excluded due to the above reason.


The vehicle accidents data has also been recalculated in order to include only those accidents that gave rise to a fatality or injury.

NUMBER OF VEHICLE ACCIDENTS

FY2015 FY2016
Previously reported Restated Previously reported Restated
1,108 1,122 1,294 1,151
FY2017 FY2018
Previously reported Restated Previously reported Restated
1,457 66 1,418 85

VEHICLE ACCIDENT RATE

FY2015 FY2016
Previously reported Restated Previously reported Restated
4.8 4.84 4.4 3.87
FY2017 FY2018
Previously reported Restated Previously reported Restated
5.2 0.23 3.5 0.21

GRI Index in 2018 403-9 Occupational disease rate(p38)
The scope of occupational illness rate in 2018 is the whole JT Group, not JT and Japanese domestic group companies.

Sustainability Report FY2018 – EU Seizures of tobacco products data (p72)
Number of tobacco products seized in the EU as a result of JT Group information:
In the FY2018 Sustainability Report, we reported FY2015 – FY2018 figures based on the number of products seized within a given year. As we are notified of seizures after they have taken place, considerable adjustments to historical figures are required at the time of publishing the Sustainability Report each year. To avoid this, for FY2019 Sustainability Reporting onwards, we will report the number of products seized based on the notifications received by the JT Group within a given year from law enforcement partners.
102-49
Changes in reporting
Significant changes from previous reporting periods in the list of material topics and topic boundaries.

Not applicable
102-50
Reporting period
About our reporting
102-51
Date of most recent report
102-52
Reporting cycle
102-53
Contact point for questions regarding the report
102-54
Claims of reporting in accordance with the GRI Standards
102-55
GRI content index
GRI Index
102-56
External assurance
About our reporting
External verification

Topic-specific Standards Disclosures

Economic Performance

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Tax practice

Integrated Report FY2019:
>Message from the CEO p.54
>Financial review p.92~99
103-3
Management approach: Evaluation of the management approach
201-1
Direct economic value generated and distributed
Tax practice

Integrated Report FY2019:
>Message from the CEO p.54
>Financial review p.92~99
>Improving our social impact p.71
DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED 2019 (MILLION YEN)
Revenue* 2,175,626
Total employee benefits and wages 445,681
Current income taxes 114,799
Tobacco excise taxes 4,750,416
Dividends 270,936
Community investment 5,416
  • * Excluding tobacco excise taxes and revenue from agent transactions.

Market Presence

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
This is our standard operating procedure.
103-3
Management approach: Evaluation of the management approach
202-1
Ratios of standard entry-level wage by gender compared to local minimum wage at significant locations of operation
Basis of Reporting
SIGNIFICANT OPERATIONS RATIO OF STANDARD ENTRY-LEVEL WAGE TO LOCAL MINIMUM WAGE
JT Tokyo HQ Male 155.2%
Female 155.2%
JTI Moscow Male 229.6%
Female 229.6%
JTI Trier Male 144.3%
Female 144.3%
JTI UK Male 136.2%
Female 136.2%

Indirect Economic Impacts

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Building sustainable supply chains
103-3
Management approach: Evaluation of the management approach
203-1
Development and impact of infrastructure investments and services supported
As part of our Global Leaf CAPEX projects, we invested 14.3 million U.S. dollars in infrastructure-related projects in Brazil, Malawi, Tanzania, U.S., and Zambia. In addition, we invested 1.645 million U.S. dollars in infrastructure-related projects in Brazil, Malawi, Tanzania and Zambia, as part of our Grower Support Programs.
203-2
Significant indirect economic impacts, including the extent of impacts
Building sustainable supply chains
Tackling illegal trade

Procurement Practices

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Tobacco
103-3
Management approach: Evaluation of the management approach
Pharmaceuticals
Processed food
204-1
Proportion of spending on local suppliers
We define local as the country of operation.
Significant location is defined as any location with more than 5% of global spend.
SIGNIFICANT LOCATIONS SUPPLIER TYPE % OF LOCAL SPEND IN 2018
Japan Tobacco leaf and non-tobacco material suppliers 64
Geneva HQ Non-tobacco materials and other products and services suppliers 46
Germany Non-tobacco materials and other products and services suppliers 65
Philippines Non-tobacco materials and other products and services suppliers 58
Russia Non-tobacco materials and other products and services suppliers 96
Taiwan Non-tobacco materials and other products and services suppliers 48
The percentage of local suppliers of bulk drug substances to our pharmaceutical business is 0%. The percentage of local spend for Tier 1 suppliers of TableMark on its raw material sourcing is 100%.

Anti-corruption

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality

Integrated Report FY2019:
>Good governance and business standards p.74~89
103-2
Management approach: The management approach and its components
Integrated Report FY2019:
>Good governance and business standards p.74~89

JT Group Anti-Bribery Policy
https://www.jt.com/about/compliance/risk_management/pdf/anti_bribery_eng.pdf

Anti-bribery and corruption
103-3
Management approach: Evaluation of the management approach
205-2
Communication and training on anti-corruption policies and procedures
Anti-bribery and corruption

Anti-competitive Behavior

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality

Integrated Report FY2019:
>Good governance and business standards p.74~89
103-2
Management approach: The management approach and its components
JT Group Materiality

Integrated Report FY2019:
>Good governance and business standards p.74~89
103-3
Management approach: Evaluation of the management approach
Anti-competitive behavior

Integrated Report FY2019:
>Good governance and business standards p.74~89
206-1
Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes
In 2019, there were no legal actions for anti-competitive behavior, anti-trust, and monopoly practices that resulted in a significant fine for the JT Group, and no such legal actions that resulted in a penalty, or warning, with material impact for sustainability, taking into account the size of the JT Group.

Energy

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Environment and our operations

Basis of Reporting
103-3
Management approach: Evaluation of the management approach
302-1
Energy consumption within the organization

Water and Effluents

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Environment and our operations > Natural Resources > Water

Basis of Reporting
103-3
Management approach: Evaluation of the management approach
303-1
Interactions with water as a shared resource
303-2
Management of water discharge-related impacts
303-3
Water withdrawal
Environmental data / External verification
303-4
Water discharge

Biodiversity

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Environment and our operations

We approach biodiversity as a topic integrated into our responsible business operations.
103-3
Management approach: Evaluation of the management approach
304-2
Significant impacts of activities, products, and services on biodiversity
Environment and our operations

Impacts on biodiversity can be observed directly or indirectly through activities such as:

>Crop production/land management e.g. promotion and adoption of good agricultural practices; land/soil use and conservation practices; the use and management of agricultural inputs such as crop protection agents and fertilizers, and the use and management of water resources

>Wood use and forestry management e.g. tree planting, natural regeneration, avoided deforestation and forest remediation; and the use of wood for tobacco curing, domestic consumption, and construction materials for curing barns and other buildings

>The building of new, or expansion of, buying stations, processing facilities, offices etc.

Emissions

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Environment and our operations > Energy and emissions

Basis of Reporting
103-3
Management approach: Evaluation of the management approach
305-1
Direct GHG emissions (Scope 1)
305-2
Energy indirect GHG emissions (Scope 2)
305-3
Other indirect GHG emissions (Scope 3)
305-5
Reduction of GHG emissions

Waste

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Environment and our operations > Waste
Basis of Reporting
103-3
Management approach: Evaluation of the management approach
306-2
Total weight of waste by type and disposal method

Environmental Compliance

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
The JT Group Environment Policy
103-3
Management approach: Evaluation of the management approach
307-1
Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
During 2019, there were no significant monetary fines or non-monetary sanctions for non-compliance with environmental laws and regulations.

Supplier Environmental Assessment

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Building sustainable supply chains
103-3
Management approach: Evaluation of the management approach
308-1
Percentage of new suppliers that were screened using environmental criteria
308-2
Significant actual and potential negative environmental impacts in the supply chain and actions taken

Employment

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Talent attraction
103-3
Management approach: Evaluation of the management approach
401-1
Total number and rates of new employee hires and employee turnover by age group, gender, and region
Basis of Reporting

NEW EMPLOYEES’ HIRE AND TURNOVER

BY GENDER MALE FEMALE TOTAL
Total number of new employees 3,157 1,302 4,459
New employee hire rate 8.6% 10.4% 9.1%
Total employee turnover 4,230 1,644 5,874
Employee turnover rate 11.5% 13.2% 12.0%
BY AGE > 30 30–50 > 50 TOTAL
Total number of new employees (only in JT and JTI) 1,856 1,857 130 3,843
New employee hire rate (only in JT and JTI) 26.4% 7.2% 2.3% 10.0%
Total employee turnover* 1,533 3,230 1,097 5,860
Employee turnover rate* 17.9% 10.1% 12.9% 11.9%
  • * Some Japanese Group companies (Akros Pharma Inc., Fuji Foods, and Saint-German America) are excluded.
401-2
Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation
Basis of Reporting

At the end of 2019, significant locations included our JT head office in Tokyo, Japan, and our international tobacco business head office in Geneva, Switzerland.
Our international tobacco business, for instance, positions compensation levels in the 75th percentile against companies with which we compete for talent.

JT HEAD OFFICE IN TOKYO

BENEFITS PERMANENT EMPLOYEES TEMPORARY FULL-TIME EMPLOYEES TEMPORARY PART-TIME EMPLOYEES
COMMISSIONED PERSONNEL CONTRACT EMPLOYEES*
Bereaved family compensation program Y
Regular health examination Y Y Y Y
Medical leave system Y Y
Parental leave Y Y Y Y
Retirement provision Y
Stock ownership Y

INTERNATIONAL TOBACCO BUSINESS HEAD OFFICE IN GENEVA

BENEFITS PERMANENT EMPLOYEES TEMPORARY FULL-TIME EMPLOYEES TEMPORARY PART-TIME EMPLOYEES
Life insurance Y Y Y (Prorated)
Healthcare Y Y Y
Disability and invalidity coverage Y Y Y (Prorated)
Parental leave Y Y Y (Prorated)
Retirement provision Y Y Y (Prorated)
Stock ownership Y
  • * Contract employees may be given benefits if they are exempt from Company regulations.
We also provide more benefits to our employees. Regarding initiatives in our Japanese operations, please see the Sustainability Report FY2015 (page 35, Generational diversity and work-life balance), and our JT website: https://www.jti.co.jp/ (in Japanese.) Below are examples from our international tobacco business:

Flexible working style
We allow employees to use flexible working hours and to enjoy remote working arrangements in some offices such as Geneva (JTI HQ), U.K., and Spain, workload permitting.

Child care support
In the JTI HQ, employees are offered access to the Company-sponsored child care facility; in some offices (e.g. Spain, U.K.), we provide vouchers to employees with children in the form of flexible benefits arrangements, or as part of the local benefits package. Our paid maternity and paternity leave exceeds legal requirements (e.g. U.K.).

Labor/Management Relations

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
We comply fully within the framework of local law in our places of operation.
103-3
Management approach: Evaluation of the management approach
402-1
Minimum notice periods regarding operational changes, including whether these are specified in collective agreements
About our reporting

Basis of Reporting
MINIMUM NOTICE PERIODS
regarding operational changes
NUMBER OF MONTHS
between the announcement and the time the first employee leaves the factory because of the closure
NUMBER OF MONTHS
between the announcement and the final closure
MINIMUM NOTICE PERIOD FOR CONSULTATION AND NEGOTIATION:
Is this minimum notice period specified in collective agreements?
Belgium 33 months 41 months No
Malaysia 2 months 8 months Yes
In 2019, our international tobacco business refined the organizational structure and globally 3,720 employees will be affected by the organizational change over the next three years. However, during the same period 1,300 new positions will be created. Each employee was notified of the change in accordance with local labor laws.

Occupational Health and Safety

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
The JT Group health and safety
103-3
Management approach: Evaluation of the management approach
The JT Group health and safety
403-1
Occupational health and safety management system
The JT Group health and safety
403-2
Hazard identification, risk assessment, and incident investigation
403-4
Worker participation, consultation, and communication on occupational health and safety
403-5
Worker training on occupational health and safety
The JT Group health and safety
403-6
Promotion of worker health
The JT Group health and safety
403-7
Prevention and mitigation of occupational health and safety impacts directly linked by business relationships
Description of our approach to preventing and mitigating significant occupational health and safety impacts that are directly linked to business.

Health and safety on the farm is essential to our business. Our Leaf Production Technicians work closely with our directly contracted growers to improve health and safety. We do so through our Agricultural Labor Practices (ALP) program. We apply the same standards when working with our leaf merchants.

Exposure to hazardous substances and green tobacco sickness pose a particular risk to tobacco farming, so we take steps to prevent this through our ALP program. We also follow industry best practices set by CORESTA: No.17 – Sustainability in Leaf Tobacco Production, No. 19 - Responsible Use of Crop Protection Agents (CPAs) in Tobacco Leaf Production and No. 27 - Identification and Elimination of Highly Hazardous Pesticides (HHPs) in Leaf Tobacco Production
403-8
Workers covered by an occupational health and safety management system
Our occupational health and safety management system covers employees, supervised workers, and third-party contractors.
403-9
Injury rate (IR), occupational disease rate (ODR), lost day rate (LDR), absentee rate (AR), and fatalities by region and by gender
The JT Group health and safety
We don’t disclose breakdown of health and safety data by gender as we do not have a significant difference in results between men and women in the workforce.

In 2019, we revised our KPIs and we expanded the scope of our reporting to lost-time injuries, occupational illness cases, and recordable injuries.

In JT, absenteeism in 2019 was reported as 0.60.
403-10
Work-related ill health
The JT Group health and safety

Training and Education

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Talent development
103-3
Management approach: Evaluation of the management approach
404-2
Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings
Talent development
404-3
Percentage of employees receiving regular performance and career development reviews, by gender and by employee category

PERCENTAGE OF EMPLOYEES RECEIVING REGULAR PERFORMANCE AND CAREER DEVELOPMENT REVIEWS

BY GENDER 2018 BY EMPLOYEE CATEGORY *D 2018
Male 86.0% Executive Officers 100%
Female 82.4% Management (excluding Executive Officers) 89.2%
Employees (excluding management) 82.9%
We have reported on the 2018 performance appraisal data because the information for 2019 is currently being analyzed. Employees who did the appraisal on paper are excluded in the scope as we cannot track their data by our HR system.

Diversity and Equal Opportunity

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Diversity and inclusion
103-3
Management approach: Evaluation of the management approach
Diversity and inclusion
405-1
Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity

BREAKDOWN OF EMPLOYEES BY GENDER AND AGE GROUP (Except Executive Officers)

AGE GROUP MALE FEMALE TOTAL
Under 30 5,868 2,719 8,587
30–50 23,941 7,994 31,935
Over 50 6,726 1,739 8,465
Akros Pharma Inc., Fuji Foods, and Saint-Germain America are excluded from the data by age group.

EMPLOYEES BY POSITION AND GENDER AT THE END OF 2019

POSITIONS MALE FEMALE TOTAL
Executive Officer 97.0% 3.0% 67
Management (excluding Executive Officers) * 85.4% 14.6% 3,416
Employees (excluding Executive Officers and Management) 73.8% 26.2% 45,663
  • * Management is defined as persons in positions of supervision or management according to national legislation in Japan and in our international tobacco business, the Vice President and Director-level employees are categorized as Management.

EXECUTIVE OFFICERS BY POSITION AND GENDER AT THE END OF 2019

AGE GROUP MALE FEMALE TOTAL
Under 30 0 0 0
30–50 6 0 6
Over 50 57 2 59
This data does not include 3 executives in our Japanese domestic Group companies, as we do not ask employees their age.
405-2
Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation
Basis of Reporting
SIGNIFICANT OPERATIONS EMPLOYEE CATEGORY RATIO OF ANNUAL BASE SALARY OF WOMEN TO MEN
JTI Geneva HQ Vice President 91.1%
Director 98.5%
Manager 93.6%
Associate 101.0%
JT Tokyo HQ Executive Officer 90.6%
Management 96.6%
Employee 98.6%
JTI UK Director 105.0%
Manager 94.1%
Associate 89.4%

Non-discrimination

GRI indicator Disclosure
103-3
Management approach: Evaluation of the management approach

Integrated Report FY2019:
>Good governance and business standards p.74~89

Our Codes of Conduct

Diversity and inclusion

Basis of Reporting
406-1
Total number of incidents of discrimination and corrective actions taken
Our Codes of Conduct

Diversity and inclusion

Basis of Reporting

In 2019, six alleged cases of workplace discrimination were reported. One of the six was proven as a violation of our Codes of Conduct, and we took appropriate corrective action.

Freedom of Association and Collective Bargaining

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Agricultural Labor Practices booklet:
https://www.jti.com/sites/default/files/global-files/documents/related-documents/jti_ALP_booklet2017_view_doublepage.pdf
103-3
Management approach: Evaluation of the management approach
Building sustainable supply chains
407-1
Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk
Agricultural Labor Practices and Leaf Supply Chain Due Diligence

The right to exercise freedom of association and collective bargaining is at significant risk in a number of countries where we directly or indirectly source tobacco leaf. We assess and mitigate those risks through our Leaf Supply Chain Due Diligence, which includes our Agricultural Labor Practices program.

Child Labor

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Building sustainable supply chains

Agricultural Labor Practices and leaf supply chain due diligence

JTI website:https://www.jti.com/our-views/arise-ending-child-labor-through-education-and-opportunity

ARISE website: http://ariseprogram.org/en

Agricultural Labor Practices booklet: https://www.jti.com/sites/default/files/global-files/documents/related-documents/jti_ALP_booklet2017_view_doublepage.pdf
103-3
Management approach: Evaluation of the management approach
408-1
Operations and suppliers at significant risk for incidents of child labor
Building sustainable supply chains

Agricultural Labor Practices and leaf supply chain due diligence

JTI website:https://www.jti.com/our-views/arise-ending-child-labor-through-education-and-opportunity

ARISE website: http://ariseprogram.org/en

Operations and suppliers having significant risk for incidents of child labor have been identified in a number of countries where we directly or indirectly source tobacco leaf. We assess and mitigate those risks through our Leaf Supply Chain Due Diligence, which includes the Agricultural Labor Practices program, the ARISE program − Achieving Reduction of Child Labor in Support of Education, the Grower Support Programs and Good Agricultural Practices, as well as communication and training, and the Eliminating Child Labor in Tobacco-Growing (ECLT) Foundation.

Forced or Compulsory Labor

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Building sustainable supply chains

JTI website:https://www.jti.com/our-views/arise-ending-child-labor-through-education-and-opportunity

Agricultural Labor Practices booklet: https://www.jti.com/sites/default/files/global-files/documents/related-documents/jti_ALP_booklet2017_view_doublepage.pdf
103-3
Management approach: Evaluation of the management approach
409-1
Suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor
Supplier Screening

Respecting human rights

Human Rights Assessment

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Respecting human rights
103-3
Management approach: Evaluation of the management approach
412-1
Total number and percentage of operations that have been subject to human rights reviews or impact assessments
We have been carrying out human rights due diligence in Japan since 2016, which covered our Japanese domestic tobacco, pharmaceutical and processed food businesses. These businesses in total represent 41% of our Group’s consolidated revenue.

Since 2018, we have also conducted human rights assessments in nine high-risk markets in our international tobacco business. A further two high risk markets were subject to a human rights self-assessment questionnaire.
412-2
Employee training on human rights policies or procedures
Respecting human rights
412-3
Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening
In 2018, we implemented a formal process for 100% of all significant investment agreements and new acquisitions covering human rights, by updating our Business Development Risk Assessment Protocol to include pre-acquisition human rights screening.

Local Communities

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Community investment

Improving our social impact
103-3
Management approach: Evaluation of the management approach
413-1
Percentage of operations with implemented local community engagement, impact assessments, and development programs
Basis of Reporting

Corporate community investment programs:
We have corporate community investment projects implemented in 86% of the countries where we operate. There are 68 countries in which we have corporate community investment projects.

ARISE and Grower Support Programs (GSPs):
In addition to our corporate community investment programs, we also have ARISE and GSPs in Brazil, Malawi, Tanzania, and Zambia.

Supplier Social Assessment

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Building sustainable supply chains
103-3
Management approach: Evaluation of the management approach
414-1
Percentage of new suppliers that were screened using social criteria (or provide a statement describing future plans)
414-2
Negative social impacts in the supply chain and actions taken)

Public Policy

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Optimizing the regulatory environment
103-3
Management approach: Evaluation of the management approach
Optimizing the regulatory environment
415-1
Total value of political contributions by country and recipient/beneficiary
In compliance with Political Funds Control Laws in Japan, JT refrains from making political contributions. None of JT’s subsidiaries made political contributions in any jurisdiction in 2019, except a non-tobacco subsidiary in Japan, which made a political contribution that amounted to low-single-digit million Yen, at its own discretion, in compliance with all relevant Japanese laws.

Customer Health and Safety

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Exceeding expectations with products and services
Pharmaceuticals
Processed food
103-3
Management approach: Evaluation of the management approach
416-1
Percentage of significant product and service categories for which health and safety impacts are assessed for improvement
Exceeding expectations with products and services
Pharmaceuticals
Processed food

Health and safety impacts in our tobacco business, pharmaceutical business, and processed food business are fully (100%) assessed for improvement, with the exception of some of our most recent tobacco business acquisitions, where assessments are ongoing.
416-2
Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes
During 2019, there were no incidents of non-compliance with regulations or voluntary codes concerning the health and safety impacts of products and services during their life cycle that resulted in a significant fine for the JT Group, and no such incidents that resulted in a penalty, or warning, with material impact for sustainability, taking into account the size of the JT Group.

Marketing and Labeling

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality
103-2
Management approach: The management approach and its components
Tobacco
Pharmaceuticals
Processed food
103-3
Management approach: Evaluation of the management approach
Tobacco
Pharmaceuticals
Processed food
417-2
Total number of incidents of non-compliance with regulations and/or voluntary codes concerning product and service information and labeling
During 2019, there were no incidents of non-compliance with regulations or voluntary codes concerning product and service information, or labeling that resulted in a significant fine for the JT Group, and no such incidents that resulted in a penalty, or warning, with material impact for sustainability, taking into account the size of the JT Group. No issues were found against our voluntary code, our Global Marketing Principles.
417-3
Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes
During 2019, there were no incidents of non-compliance with regulations or voluntary codes concerning marketing communications, including advertising, promotion and sponsorship that resulted in a significant fine for the JT Group, and no such incidents that resulted in a penalty or warning with material impact for sustainability, taking into account the size of the JT Group. No issues were found against our voluntary code, our Global Marketing Principles.

Socioeconomic Compliance

GRI indicator Disclosure
103-1
Management approach: Explanation of the material topic and its boundary
JT Group Materiality

Integrated Report FY2019:
>Good governance and business standards p.74~89
103-2
Management approach: The management approach and its components
Our Codes of Conduct

Integrated Report FY2019:
>Good governance and business standards p.74~89
103-3
Management approach: Evaluation of the management approach
419-1
Significant fines and non-monetary sanctions for non-compliance with laws and/or regulations in the social and economic area
During 2019, there were no significant fines or non-monetary sanctions for non-compliance with laws and/or regulations in the social and economic area.

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