Japan Tobacco Inc.
Climate Impact & Sustainability Data (2013-04 to 2014-03, 2020)
Reporting Period: 2013-04 to 2014-03
Environmental Metrics
Total Carbon Emissions:799,000 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:5.95 million tons
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:11,500,000 m3/year
Waste Generated:120,000 tons/year
Carbon Intensity:0.73 tons CO2e/million cigarettes equivalent (2013)
ESG Focus Areas
- Climate Change
- Waste
- Water
- Biodiversity
- Child Labor
- Agricultural Labor Practices
- Supplier Standards
- Employee Development and Talent Management
- Equality & Diversity
- Responsible Marketing
- Food Safety
- Product Responsibility
Environmental Achievements
- Reduced total Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 11.5% since 2009
- Reduced overall waste generation by around 8% over 2012
- Reduced total water consumption by around 8% over 2012
- 75% waste recycling rate across the business
- Planted 3,304,679 trees in Zambia exceeding the target of three million
Social Achievements
- 3,071 children withdrawn or prevented from child labor through ARISE program
- ¥7,780 million invested in community investment and corporate citizenship programs
- 96.1% participation in Employee Engagement Survey in Japan
- Increased female representation within management in Japan from 1.4% in 2013 to 2.2% at the end of March 2014
- Established a Diversity Development Department in Japan to promote working environments in which diverse workforces can thrive
Governance Achievements
- Appointed an Executive Officer with dedicated responsibility for corporate social responsibility (CSR)
- Established a new CSR department in the international tobacco business
- 98.9% of eligible employees participated in compliance training in Japan
- Updated anti-bribery and corruption requirements of JTI’s Code of Conduct in 2011
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Reduce JT Group GHG emissions (Scope 1 and 2) by 20% by 2020 compared to 2009
- Reduce GHG emissions from tobacco business per million cigarettes equivalent by 20% by 2020 compared to 2009
- Implement KYG program across all directly contracted growers by 2018
- Achieve 10% female management in Japan by 2023
Short-term Goals:
- Not disclosed
Environmental Challenges
- Child labor in tobacco growing communities
- Deforestation in tobacco growing regions
- Climate change impacts on agricultural productivity
- Illegal tobacco trade
- Maintaining high safety standards across diverse geographies
- Ensuring consistent environmental management across diverse operations
Mitigation Strategies
- Launched ARISE program to eliminate child labor
- Implemented agroforestry initiatives and reforestation programs
- Set long-term GHG reduction targets
- Established Anti-Illicit Trade (AIT) team
- Implemented safety roadmaps and training programs
- Developed a Long-term Environmental Plan to 2020
Supply Chain Management
Supplier Audits: 446 new supplier certifications to Know Your Supplier (KYS) in 2013; 11 supplier site assessments conducted by external auditors in 2013
Responsible Procurement
- Responsible Procurement Policy
- JT Group Principles in Leaf Tobacco Production
- Know Your Supplier (KYS) program
- Know Your Grower (KYG) program
- Agricultural Labor Practices (ALP)
Climate-Related Risks & Opportunities
Physical Risks
- Temperature changes
- Shifting weather patterns
- Water scarcity
Transition Risks
- Regulatory changes
Opportunities
- Energy efficiency improvements
Reporting Standards
Frameworks Used: GRI G4 Sustainability Reporting Guidelines (principles followed, not fully compliant)
Certifications: ISO 14001 (100% of Japanese domestic tobacco factories; 78% of international tobacco business factories), ISO 22000 (100% of frozen food factories), OHSAS 18001 (21 manufacturing sites in international tobacco business)
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Ploom (smokeless tobacco vaporizer)
- Zero Style (smokeless tobacco product)
Awards & Recognition
- Various local best employer awards and ratings
Reporting Period: 2020
Environmental Metrics
Total Carbon Emissions:396434 thousand tons CO2e
Water Consumption:10302 thousand m3
Waste Generated:134 thousand tons
ESG Focus Areas
- Environment
- Investing in people
- Product innovation
- Supply chain management
- Regulatory environment and illegal trade
Environmental Achievements
- Achieved a place on CDP's "A List" for tackling climate change and protecting water security for the second consecutive year.
- Recognized as a global leader for engaging its supply chain on climate change (CDP Supplier Engagement Leader).
Social Achievements
- International tobacco business certified as a Global Top Employer for the seventh consecutive year.
- Certified as a Top Employer in 64 countries.
- Total value of community investment: US$49.5 MM
- 7,888 employees volunteered on company time (19,199 hours)
- 3,589 employees volunteered on their own time (4,889 hours)
Governance Achievements
- More than 99% of employees in Japanese operations completed online Code of Conduct training.
- Almost 2/3 of international tobacco business employees took advanced information security training voluntarily.
- Included in the Dow Jones Sustainability Asia Pacific Index for the seventh consecutive year, retaining second place in the tobacco industry.
Climate Goals & Targets
Long-term Goals:
- Reduce packaging (including plastic) and ensure that the remaining is 100% reusable or recyclable by 2030.
Medium-term Goals:
- Achieve 25% women in leadership by 2030 (aiming for >40% over time).
- Implement ALP program in all sourcing countries by 2025.
- Screen all key suppliers against ESG criteria by 2023.
Short-term Goals:
- Reduce injury rates by 25% by 2023 and 50% by 2030 (baseline year: 2015).
Environmental Challenges
- COVID-19 pandemic's impact on revenue (estimated 3% reduction)
- Illegal trade of tobacco products
- Regulatory tightening and periodic tax increases
- Competition in the RRP (Reduced-Risk Products) market
- Decline in global combustibles industry volume
Mitigation Strategies
- Implemented pandemic-response policies and business continuity plans.
- Provided information to law enforcement agencies to tackle illegal trade.
- Engaged in constructive dialogue with governments and regulatory authorities.
- Redefined investment prioritization in the tobacco business, focusing on HTS (heated tobacco sticks) and combustibles.
- Consolidated international and Japanese-domestic tobacco businesses into one unit (from January 2022).
Supply Chain Management
Supplier Audits: 64% of key suppliers screened against ESG criteria by the end of 2020.
Responsible Procurement
- JT Group Supplier Standards
- Supplier screening process
- Agricultural Labor Practices (ALP) program
Climate-Related Risks & Opportunities
Physical Risks
- Flooding and landslides due to abnormal weather
- Intense heat waves, heavy snowfall and drought
- Water-resource change and biodiversity loss
Transition Risks
- Carbon taxes on energy generated from fossil fuels
Reporting Standards
Frameworks Used: GRI Standards
Certifications: ISO 14001, ISO 50001, Global Top Employer
UN Sustainable Development Goals
- Nine SDGs related to the business and its environment
Sustainable Products & Innovation
- RRP (Reduced-Risk Products), Ploom S
Awards & Recognition
- Dow Jones Sustainability Asia Pacific Index (7 consecutive years)
- CDP’s "Climate A List" and "Water A List" (2 consecutive years)
- White 500 company (5 consecutive years)