The 4S model, Materiality, Sustainability strategy, SDGs


The 4S model, Materiality, Sustainability strategy, SDGs

The 4S model

We strive to fulfill our responsibilities to our valued consumers, shareholders, employees and the wider society. Carefully considering the respective interests of these four key stakeholder groups, and exceeding their expectations wherever we can.

The 4S model

Consumers, shareholders, employees, and society - these are the four stakeholder groups (4S) at the heart of everything we do at JT. Our commitment to serving these groups is represented in the 4S model.

We always try to exceed the expectations of our four stakeholder groups wherever we can, based on the principles of the 4S model. For our consumers, this means offering superior products that meet or go beyond their evolving needs. For our shareholders, we aim to enhance returns based on our profit growth outlook and strike a balance between providing shareholder returns and investing in the business for future profit growth. For our employees, we will work to ensure that we maintain our reputation as a respected member of the community and a company that they can feel proud to be a part of. And we will continue to contribute to society as a whole, recognizing that our growth benefits from a sustainable society, and in doing so enhance our corporate value.

Our vision, based on the 4S model, is to achieve global growth by providing value unique to our Group. Our mission - our concrete action plan to achieve our vision - is to create, develop, and nurture our brands to meet consumers' needs while understanding and respecting the environment and the diversity present in society.


In order for our Group to grow and build a sustainable future with our stakeholders, we have selected a list of material issues or key issues with high priorities. The list was compiled for the first time in 2015, by engaging internal and external stakeholders, including employees, suppliers, investors, trade unions, non-governmental organizations (NGOs) and industry organizations. We are committed to carrying out materiality reviews on a regular basis in order to update issues that are important to us.

The 4S model, Materiality, Sustainability strategy, SDGs

Since the first materiality assessment was performed, we have noted the increasing concern about the adverse effects on our environment. We share this concern and have therefore repositioned ‘Environment’ from Mid-Mid to High-High. We will continue with our strive to reduce environmental impacts on our planet.

For more details, go to Environment management>

The foundations of the JT Group sustainability strategy

Our sustainability strategy is based on our Group’s materiality assessment and underpinned by our 4S model. It encourages us to look beyond our usual planning cycle period and think about the longevity of our business, the future of our planet, and the society we live in.

The foundations of our sustainability strategy, applying across the Group, are our ‘Three absolute requirements for sustainability’:
  • Respect for human rights

    We are committed to respecting human rights across our global operations and value chains, as expressed in the JT Group Human Rights Policy.

  • An improved social and environmental impact

    We are committed to protecting the environment and making a positive difference wherever we operate.

  • Good governance and business standards

    We are committed to promoting transparent, fair, and timely decision-making that carefully considers the respective interests of consumers, shareholders, employees, and the wider society.

Tobacco business sustainability strategy

We formulated and introduced our tobacco business sustainability strategy in 2017. It illustrates the important choices we have been making for years – and will continue to make – across all of our markets and business functions to drive sustainability throughout the entire organization. We have chosen four focus areas which we consider to be essential for the sustainability of our tobacco business and for our stakeholders.

In 2018, our sustainability strategy evolved further, with eleven specific targets set for each of the four focus areas. These will provide a solid basis for measuring and benchmarking our sustainability performance, and support the sustainability of the JT Group. We will be updating our progress regularly, as we strive to contribute and fulfill our commitments that we have made to our stakeholders and to ourselves.

The four strategic focus areas

Committed to the UN Sustainable Development Goals

Our commitment

In order for our Group to achieve sustainable growth, it is essential for our business to contribute to the sustainable development of our society. We maintain ongoing dialogues with our stakeholders and work continuously on a variety of sustainability issues to fulfill our responsibilities.

Our Group supports the United Nations’ Sustainable Development Goals (SDGs) and their related targets in the context of its own business and operational environments. Our commercial strategies and business practices support the global goals, and we have developed specific targets and initiatives that contribute to the SDGs’ global agenda. We take our responsibility to manage our business sustainability very seriously. Our Group’s three businesses – tobacco, processed food and pharmaceutical – differ by sector, scope and size, and therefore each one contributes to the SDGs in different ways.

Our commitment

Prioritization process

In 2018, we determined how our approach to sustainable business is aligned with the SDGs. We mapped the activities of our tobacco business against all 17 SDGs and concluded that our tobacco business contributes most significantly to the following nine goals. We intend to undertake the same process for the other two businesses in the Group.

The SDGs provides a shared blueprint for peace and prosperity for people and the planet, now and into the future. The goals recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests. That makes sense to us at the JT Group. We share and support these goals and here are the specific ways in which we believe, we can contribute to achieving some of the goals.
To find out more, please see our targets and SDGs.

Prioritization process