Non-tobacco materials, other products, and services

Our targets

SUPPLIER SCREENING

We will screen all key suppliers against environmental, social, and governance criteria by 2023.

Non-tobacco materials include packaging, filters, and cigarette-related materials. We also have a number of suppliers for factory machinery and logistics, including freight. We manage the sourcing of most of these centrally. Other products and services, which flow through our supply chain, include marketing related services, facility management, IT, and other professional services, which are sourced globally, regionally, and locally.

We develop strong partnerships with our key suppliers in order to achieve mutual long-term success. Our strategic relationships are built on shared values and objectives, which allows us to find sustainable solutions together, ensure a stable supply in a dynamic environment, and be able to adapt to innovative technologies.

For example, we worked with a number of suppliers of pulp-based products to reduce our paper and board related waste. We achieved this by optimizing our product specifications, saving approximately 1,700 tons of waste per year.

Supplier screening

We aim to achieve high standards of integrity across our business operations and supply chain. We can only achieve this through close cooperation with our suppliers.

In our international tobacco business, prior to entering into a commercial relationship, our key suppliers*1 undergo a screening process*2 which includes onboarding and qualification. This process allows us to understand potential risks related to compliance, human rights, environment, and health and safety.

If there are any risks identified, we offer support and collaboration on how to mitigate these risks and make necessary improvements.

Since 2017, we have screened 61% of the key suppliers in our international tobacco business. As our supplier screening target shows, we are committed to achieving 100% by 2023.

In the Japanese market, suppliers of non-tobacco materials and other products and services are subject to screening against the JT Group Supplier Standards, with key suppliers being monitored regularly though surveys.

  • *1 Key suppliers are defined as suppliers with a planned annual spend greater than 500,000 U.S. dollars, suppliers who either purchase or handle Japan Tobacco International tobacco products, leaf merchants, suppliers representing Japan Tobacco International before government, and contract manufacturing, and licensees.
  • *2 Formally known as Supplier Lifecycle Management