Supply chain
Building sustainable supply chains
Maintaining a well-managed supply chain is essential for our business sustainability. We work closely with all of the stakeholders involved to reduce negative social and environmental impacts.
Our factories produce ready-made cigarettes, other tobacco products, and some of our Reduced-Risk Products [Reduced-Risk Products are Products with the potential to reduce the risks associated with smoking]. We purchase approximately half of our tobacco leaf from directly contracted growers, and the other half from tobacco leaf merchants.
To ensure the highest levels of sustainability and integrity across the supply chain, all of our suppliers are required to comply with our supply chain policies and standards.
Aspirational goal
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We will reduce environmental and social risks, and enable transparent and responsible practices across our supply chain.
Targets and Progress
AGRICULTURAL LABOR PRACTICES
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Target
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We will implement our Agricultural Labor Practices (ALP) program in all sourcing countries by 2025.
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Progress
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In 2021, 97% of our supplying entities*1 reported against ALP.
84% of our directly contracted growers and 97% of our leaf merchants' growers*2 were covered by ALP.
79% of our volumes were covered by ALP.
SUPPLIER SCREENING
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Target
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We will screen all key suppliers against environmental, social, and governance criteria by 2023.
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Progress
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At the end of 2021, 100% of our key suppliers were screened against ESG criteria.
GREENHOUSE GAS EMISSIONS
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Target
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We will reduce greenhouse gas emissions from our own operations by 35% and from our direct leaf supply chain by 40%, between 2015 and 2030.
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Progress
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Since 2015, we have reduced greenhouse gas emissions from our own operations by 27%, while greenhouse gas emissions from our direct leaf supply chain increased by 9%*3 in 2021.
Following announcement of JTG Net-Zero target in February 2022 “JT Group Environment Plan 2030” and Tobacco Business Sustainability Strategy was updated. Read about the updated GHG related targets on JTI.com.
Progress against new targets will be reported in 2023.
WATER AND WASTE
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Target
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We will reduce water withdrawal by 15% and waste by 20%, with regards to our own operations, between 2015 and 2030.
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Progress
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Since 2015, we have reduced water withdrawal by 16% and waste by 15%, in relations to our own operation.
FORESTRY
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Target
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We will replace all wood from natural forests used in the tobacco curing process of our directly contracted growers with renewable fuel sources by 2030.
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Progress
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Based on our 2021 tree planting activities in Tanzania, Zambia and Brazil, we estimate that we are on a path to achieve consolidated 81% renewable wood sourcing by 2028.
- *1 ALP coverage in grower base is calculated based on the data reported by 97% of our leaf merchants.
- *2 Growers from India and China are excluded.
- *3 Increase in emissions is due to increased leaf volume sourced from Zambia and Tanzania, where currently wood used for curing is predominately non-renewable. Initiatives are in place to improve curing barn efficiency, reduce wood consumption, and increase the proportion of renewable wood used. We expect that impact of these initiatives will be seen from 2022 onwards.
Reducing our environmental impact in the tobacco value chain
Read more about our targets on 'Greenhouse gas emissions', 'Water and Waste', and 'Forestry'.
Read more about our programs and initiatives in our international tobacco business.