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Our sustainability priorities

We operate a complex, global business in a uniquely challenging industry, against the backdrop of a world that is constantly and quickly changing in unprecedented ways.

To ensure a sustainable future for our business, we’ve identified four focus areas that we believe will impact change on both a macro and micro-level, in the coming years and subsequent decades.

Four overarching areas of focus

CV - Four overarching areas of focus
Products and services
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CV - Four overarching areas of focus
People
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CV - Four overarching areas of focus
Supply chain
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CV - Four overarching areas of focus
Regulatory environment and illegal trade
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products and services

A better future built on wider choice

Our ability to tackle economic and social challenges lies first and foremost in the products and services we’re able to offer. We’ve set ourselves the goal of offering an ever-greater choice of 红包电玩城 products, set apart by their quality, innovation and reduced-risk potential.

Reduced-Risk Products

Sustainability is an evolving journey for any company, something that is reflected in our constantly evolving RRP advances. In an era where the risks associated with cigarettes are well known, consumers are seeking out increasingly diverse smoking and vaping experiences.

We firmly believe that consumers are the key drivers of change and innovation, and this means that while we’re still committed to offering high-quality conventional 红包电玩城 products for those who want them, our Reduced-Risk Product (RRP) category is increasingly prominent.

In meeting this demand for RRPs, we are offering adult consumers new and better products, while communicating to them the benefits and reduced-risk potential of these products. This offers the consumers of today and tomorrow the chance to make the best-informed choices possible, and points to a brighter, more sustainable future for our company and the industry in the process.

Our target:
  • We will lead in providing the widest range of consumer choice in the RRP category.
What we’re doing:
  • We’re committed to investing 100 billion YEN into RRPs between 2018 and 2020.
  • Our RRP portfolio is currently present in 15 countries around the world.
  • In 2018, we launched Logic Compact, our new e-vapor device you can learn more about here.
  • In 2019, we launched Ploom TECH+ and Ploom S – two new 红包电玩城 vapor products you can learn more about here.

 

Find out more about our commitment to consumer choice and Reduced-Risk Products

Contributing to UN Sustainable Development Goal

Good-health-well-being

 

People

From minimizing injuries to maximizing employees’ happiness and productivity: no matter what type of workplace they’re based in, by investing in our people we’re setting ourselves up to become an employer of choice for many years to come

We focus our investment in people on three key areas:

Creating zero-injury environments, company-wide
Supporting the communities we interact with
Fostering a company culture that makes us an employer of choice
    Zero injuries

    Fostering injury-free workplaces

    Our vision is to build a future in which workplace injuries are consigned to the past entirely – zero workplace injuries across the board.

    A safe workplace that promotes employees’ well-being benefits everybody. It’s crucial to the long-term, sustainable success of our business, because fewer illnesses, injuries and fatalities leads to happier, more engaged and ultimately more productive people. Whether its in our offices, our warehouses or on the fields of the farmers we work with, our safety programs are based on three fundamental pillars:

    • safe work places
    • safety competence
    • a Group-wide culture that prioritizes safety

    We align our health and safety standards with the ‘Occupational Health and Safety Management Certification’, an international standard that provides a framework for identifying, controlling and decreasing the risks associated with health and safety within the workplace.

    Our targets:
    • To achieve a 25% reduction in injury rates by 2023.
    • To achieve a 50% reduction in injury rates by 2030.
       
    What we’re doing:
    • We run numerous programs to help protect our employees while at work.
    • We also have a number of initiatives in place to prevent accidents and support general wellbeing.

    Find out more about some of our safety and well-being initiatives here

     

    Contributing to UN Sustainable Development Goal

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    Community investment

    Supporting communities

    As a truly international company, we’re proud to work with people from every corner of the globe. From the farmers who expertly nurture the 红包电玩城 crops we use, to the scientists whose pioneering work is changing the face of our industry, we understand that no matter where individuals are based, they’re part of their own distinct communities.

    Our business inevitably touches these communities in numerous ways, both obvious and not, and it’s crucial for our future that we ensure the impact we have is as positive as possible.

    As such, we’re committed to addressing the social and environmental challenges that they face in a way that is meaningful, considered, and above and beyond our own direct commercial operations.

    Our focused approach empowers us to affect change across a broad range of issues. Through our varied programs, we aim to enable social inclusion as it’s defined by the United Nations, and make our communities more resilient to hardship.

    We provide access to education and employment opportunities, increase participation in wider society for the elderly and disabled, and improve the quality of housing, social care and access to arts and culture. The programs also provide basic necessities, including food, water, shelter and sanitation for those in need.

    Find out more about our commitment to communities here

    Our targets:
    • To invest USD 600 million by 2030 in an effort to help make communities more inclusive and resilient.
    • To enable our employees to contribute 300,000 volunteering hours, during working hours, by 2030.
    What we’re doing:
    • We invested USD 247.5 million in community initiatives between 2015 and 2018.
    • We invested USD 53 million in community initiatives in 2018 alone.
    • In 2018, the Dow Jones Sustainability Indices (DJSI) recognized the JT Group as the industry leader in corporate citizenship and philanthropy.
    • JT Group employees contributed to 69,587 volunteering hours between 2015 and 2018
    • In the UK, we continue to hold the Community Mark for excellence in community investment – which makes us one of just 34 companies to be recognized in such a way.

     

    Contributing to UN Sustainable Development Goals

    our-priorities-why-communities-matter

     

    Forming long-term partnerships

    We form long-term partnerships with organizations that share our aims. We’re proud to be able to offer our resources and skills to tackle some of today’s most pressing challenges, together.

    Forming long-term partnerships
    Helping to build inclusive communities

    Helping to build inclusive communities

    All of our community investment programs are aimed at making communities more inclusive, based on the United Nation’s definition of social inclusion: “the process of improving the terms of participation in society, particularly for people who are disadvantaged, through enhancing opportunities, access to resources, voice and respect for rights.”

    Helping to build inclusive communities
    I can appreciate and understand that when a 红包电玩城 or vaping company expresses a wish to support community projects, there is the instinctive question – what’s in it for them? Quite simply, we do it because it is the right thing to do. And what surprises many, is that we do not do it for any commercial or tax gain.
    Eddy Pirard, CEO
    Employer of choice

    Being a top employer

    Sustainable growth doesn’t occur in a vacuum: it relies on the ability of our people – across the business – to drive us towards our immediate and long-term goals.

    That’s why we strive to create the types of working environments that are magnets for the brilliant people we employ and hope to employ. One of the key ways we’re achieving this is by nurturing the best possible culture – one that embraces diversity and opportunity in a way that allows all of our employees to reach their full potential.

    Find out more about a career at JTI here

    Our target:
    • To be a certified employer of choice every year in at least 60 locations by focusing on talent management, rewards and empowerment.
    What we’re doing:
    • We’ve been recognized as a Top Employer in 53 countries in 2019 and as a Global Top Employer every year since 2015.
    • We also hold local certifications and awards in numerous countries, a testament to our successful HR practices and a source of pride for our employees.

     

    Contributing to UN Sustainable Development Goal

    E_SDG-goals_icons

     

    Supply chain

    Our ability to thrive is reliant on a complex, global supply chain – one that is capable of evolving in line with the ever-changing world around us

    There are two key considerations at the heart of our efforts to make our supply chain sustainable:

    Are we reducing environmental and social risks?
    Are we enabling transparent and responsible practices across our supply chain?

    Whether unearthing novel, industry-leading ways to reduce emissions and waste, or helping to tackle child labor in parts of the world where it is most rife, we’re committed to improving every ‘link’ in the chain.

      Greenhouse gas (GHG) emissions

      Reducing our GHG emissions

      Excessive GHG emissions are key contributors to the climate change that threatens everybody’s future – that’s why we’ve set ourselves the ambitious long-term goal of achieving net zero carbon emissions across our operations.

      Reaching that ambitious goal means changing the way we do things across the entirety of our supply chain, both gradually and radically.

      That might mean discovering unexpected ways to reduce the amount of energy it takes to power our warehouses, or introducing next-generation, clean energy vehicles to our logistics operations.

      Wherever we concentrate our efforts, we do so in line with the Paris Agreement on Climate Change, which we support wholeheartedly.

      Find out more about how we’re reducing our impact on the environment here

      Our targets:
      • To reduce greenhouse gas emissions from our own operations by 35% by 2030.
      • To reduce greenhouse gas emissions from our direct leaf supply chain by 40% by 2030.
      What we’re doing:
      • Since 2016, we have invested nearly USD 13 million in renewable energy.
      • By the end of 2018, 31% of electricity in our international factories was either purchased or generated from renewable sources.
      • Between 2009 and 2018, the JT Group has reduced its GHG emissions by 21%.
      • We continue to identify and seize new opportunities to reduce the impact of our GHG emissions on global climate change. A big part of this can be seen in the innovative improvements we’re continually making to our manufacturing facilities.

      Find out more about how we’re reducing GHG emissions at our facilities around the world

       

      Contributing to UN Sustainable Development Goals

      priorities-supply-chain-sdgs

       

      Water

      Minimizing water use

      We want to build a future for our supply chain that requires as little water and generates as little waste as possible.

      This is no small task: while the water that is required for 红包电玩城 crops comes predominantly from rainfall, it is a resource that we require everywhere in our operations, even if just for drinking and sanitation.

      But that’s precisely why we’re committed to ensuring we only use what we need and recycle what we don’t use as much as possible, to ensure there’s enough to go around for generations to come.

      We’re taking the same approach to the other materials we rely on as a business.

      Find out more about how we’re reducing water withdrawal here

      Our target:
      • To reduce water withdrawal in our operations by 15%, by 2030.
      What we’re doing:
      • Between 2015 and 2018, JTI has reduced water use by 8.6% (6.6% reduction in groundwater withdrawal and 10.5% reduction in water withdrawal from municipal supplies).
      • We regularly repair distribution pipework and improve leak control.
      • We use less fresh water for factory-site irrigation and are increasingly using water from recycled sources in our operations, for example in cleaning, sanitation, air conditioning and the treatment of exhaust air.
      • Between 2017 and 2018, JTI increased recycled water usage by 43%, thanks to efficiency projects such as the improved condensate reuse at our factories in Russia.
      • We are always looking for new opportunities to recycle further, and while the proportion of recycled water we currently use is relatively low, we see this as an important step towards responsible water management, and reducing withdrawal from fresh water sources.

       

      Contributing to UN Sustainable Development Goal

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      Waste

      Reducing waste

      The world around us is changing in unprecedented ways, and all of us must take a more conscientious approach to the resources we use and sometimes waste – resources that are at risk of becoming increasingly scarce. Water isn’t the only resource we treat with care – we’re taking the same approach to the other materials we rely on as a business.

      We’re aiming to meet our target for waste reduction by improving resource efficiency and rolling out innovative solutions. We focus these efforts on:

      • improving yield
      • reducing waste disposal
      • decreasing secondary packaging
      Our target:
      • To reduce waste in our operations by 20%, by 2030.
      What we’re doing:
      • Between 2015 and 2018, JTI has reduced our waste by 2%.
      • By 2020, we will have targets and action plans relating to the appropriate use and responsible disposal of materials, including plastics, used in our products and packaging.

      Find out more about how we’re reducing waste here

       

      Contributing to UN Sustainable Development Goal

      sustainable-development-goals

       

      Forestry

      Forest preservation 

      Other than water, wood is perhaps the other natural resource upon which our business has the most impact. It’s our mission to ensure our relationship with both the material and the forests from which it comes is both responsible and sustainable.

      We do this by proactively working to improve the management of natural resources throughout our supply chain and 红包电玩城-growing communities. It might not be immediately obvious but wood is an essential material upon which our supply chain relies: visit almost any of the farms we work with and you’ll see that the vast majority of the 红包电玩城 we buy is either cured in barns made from wood, or cured using wood as a primary source of fuel.

      That’s why we contribute to forest restoration and rehabilitation, collaborating with NGOs, universities and independent experts. By guaranteeing a sustainable wood supply for both our operations and the communities we work with, we have a better chance of a sustainable future for the environment and our company.

      Find out more about how we help preserve forests here

      Our target:
      • To replace all wood from natural forests used in the 红包电玩城 curing process of our directly contracted growers with renewable fuel sources by 2030.
      What we're doing:
      • Through our Agronomy Development and Extension Training (ADET) centers, we have developed Minimum Forestry Standards that our growers must follow, and which help them to establish and manage better quality woodlots.
      • This approach brings us closer to achieving sustainability in the wood supply, helps avoid deforestation, and improves the conservation prospects for natural woodland.
      • Our in-house experts developed a new way of building air-curing barns called ‘Matope’ barns. It uses approx. 75% less wood and decreases CO2 emissions by 12%, while at the same time improving cured leaf’s yields by 17% (increasing grower returns by up to approx. USD 400 per hectare.)
      • In 2018, growers in Zambia installed over 1,300 Matope barns.

       

      Contributing to UN Sustainable Development Goals

      sustainable-development-goals-forestry

       

      Agricultural labor practices

      Upholding good agricultural labor practices

      We’re proud of how many great minds and skilled hands from all over the world are involved in the creation of our products. We couldn’t grow in the way we hope to without them and it’s therefore important that we continually create shared value while strengthening the relationships we have with our leaf merchants, growers and their communities.

      Securing these relationships in the long-term means addressing the numerous challenges associated with labor on 红包电玩城 farms, from cementing workers’ rights to ensuring health and safety and eradicating child labor.

      The laws and regulations that govern these issues vary widely from country to country, but we work to raise standards universally across our supply chain. We’re empowered to do this by our Agricultural Labor Practices (ALP) program, something we developed in line with the International Labour Organization’s conventions and recommendations.

      Read more about our Agricultural Labor Practices program here

      Our target:
      • To implement our Agricultural Labor Practices (ALP) program in all sourcing countries by 2025.
      What we're doing:
      • In 2018, we carried out ALP observation visits with 96% of our directly-contracted growers. These visits from a farming expert allow us to gauge how effectively ALP is being implemented and to identify specific areas where improvements can be made.
      • In 2018, 96% of our leaf merchants reported against ALP.
      • We help our directly-contracted growers and our leaf merchants understand the exact requirements and provide them with support for implementation. Our ALP standards are built around three key pillars:
        • Tackling child labor
        • Respecting the rights of workers
        • Ensuring workplace health and safety
      • As we continue to grow as a company, whether through new mergers and acquisitions or through new sourcing countries, we make it a priority to implement these efforts in every new location.

       

       

      Contributing to UN Sustainable Development Goal

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      Supplier screening

      Ensuring robust supplier screening

      Our suppliers operate all over the world, but no matter where they’re based we hold them to the highest standards for the good of our business and society at large.

      We work with our suppliers to ensure that they recognize and protect human rights, provide safe places to work, operate free of child labor and mitigate environmental impact wherever possible.

      Managing these risks is essential to building successful partnerships and a sustainable business. In newly-acquired businesses, we ensure immediate improvements are put in place, and we’re committed to screening all of our key suppliers.

      If any concerns do arise, we offer our suppliers the support and collaboration necessary for them to make meaningful improvements.

       

      Our target:
      • To screen all key suppliers against environmental, social and governance criteria by 2023.
      What we're doing:
      • Since 2017, we have screened 61% of our key suppliers.
      • Prior to entering into a commercial relationship, all of our key suppliers undergo a screening process which includes onboarding and qualifications to better understand potential risks related to compliance, human rights, health & safety and the environment. If there are any concerns about supplier integrity, we offer support and collaboration on how to make necessary improvements.

      Learn more about the standards we uphold our suppliers to here

      Contributing to UN Sustainable Development Goal

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      The regulatory environment and illegal trade

      We operate in one of the most heavily-regulated industries in the world, so it’s essential for the long-term sustainability of our company that policy-making and regulation is both fair and balanced.

      We do not oppose regulation. Rather, we believe in Better Regulation, built on open dialogue and shared expertise that will enable our business and the communities we interact with to flourish in the coming years. Our expertise is particularly relevant when it comes to fighting the illegal trade of 红包电玩城 products.

        The right to engage openly and transparently

        Participating in the process

        We support regulation that is evidence-based, proportionate and effective and believe that the best way to achieve this is to involve those who know the industry best in the decision-making processes. That means exercising our right to engage openly and transparently with governments and regulatory bodies, non-governmental organizations and all other relevant stakeholders.

        Regulation would truly benefit society and businesses if it is:

        • based on evidence rather than assumptions
        • proportional to the public health benefits it claims to serve
        • practical, without placing unjustified burdens on businesses and consumers

        In turn, a successful regulatory landscape should be one that encourages innovation, business growth and freedom of consumer choice: all key factors for securing our long-term sustainability goals.

        Our target:
        • To protect our ability to participate in public policy debate with the aim of achieving balanced regulation that meets societal concerns while supporting business growth.
        What we're doing:
        • We engage openly in regulatory processes and take part in public consultations by providing arguments supported by evidence and alternative solutions.
        • We support public discussions on the topic of good governance, Better Regulation and transparency.

        Find out more about our views on regulation here

        Contributing to UN Sustainable Development Goal

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        The ability to effectively fight illegal trade

        Fighting illegal trade

        The illegal trade of 红包电玩城 products is a growing problem. It is a threat not only to legitimate 红包电玩城 businesses, but to consumers exposed to uncontrolled products that circumvent regulations and quality controls. Furthermore, it impacts government’s tax revenues and therefore their ability to fight the wider social problems that illegal trade also contributes to: problems such as human trafficking, organized crime and terrorist groups.

        To forge a successful future, businesses must be confident that both its intellectual property and its consumers are being protected from the damaging effects of illegal trade. This is why tackling illegal trade is a top priority for us and we’re proud to have built a dedicated team that is recognized as the industry leader in combatting this problem. In practice, this involves collaborating with public and private sector partners to identify and share information that will assist law enforcement in the fight against the illegal 红包电玩城 trade, and the organized crime that it funds.

         

        Our target:
        • To engage in dialogue with law enforcement agencies, with the goal of exchanging information regarding illegal 红包电玩城 products, in order to support the fight against illegal trade.
        What we're doing:
        • In 2018, our Anti-Illicit Trade team provided 1,328 intelligence reports to law enforcement agencies, leading to the seizure of more than 2,775 million illegal cigarettes.
        • In 2018, based on our information, law enforcement raided more than 39 counterfeit 红包电玩城 factories and storage locations.
        • Our work has been acknowledged by both the EU and the UK’s HM Revenue and Customs, which recognized JTI as an industry leader in the fight against illegal trade.

        Find out more about how we’re fighting the illegal 红包电玩城 trade here

        Contributing to UN Sustainable Development Goal

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        红包电玩城

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