JT Group Human Rights Report From principles to practice
Our contribution to the 10-year anniversary of the endorsement of the United Nations Guiding Principles on Business and Human Rights CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
INTRODUCTION 03 Message from our Group CEO 04 Message Sustainability Environmental Non- impacts About the company 05 from our strategy Sustainability strategy 06 discrimination Board oversight and governance 07 Group and equality Climate change 08 CEO COVID-19 human rights response 09 50 Key milestones and evolution 10 06 30 UNGPs anniversary 11 Human rights metrics at a glance 12 STRATEGY 13 Overarching Overarching human rights strategy 14 human rights ARISE: Due diligence approach 15 Harassment Our assessments 19 strategy multi- and gender Role of local governance 22 impacts
RESPOND D stakeholder N SALIENT ISSUES 23 A E Y IZ M IF T E T I A N R S E IO U 04 D R 39 Identification of salient issues 24 R I Our human P rights strategy E approach Child labor 25
Environmental impacts 30 D E
T B
R
M O
Fair wage 33 E P
E Forced labor 36 IDENTIFYING R Harassment and gender impacts 39 HIGH-RISK Health and safety 41 Health risk 48 COUNTRIES Non-discrimination and equality 50 VISION Working hours 54 16 14 26 ENGAGEMENT 55 Collaborations and partnerships 56 Stakeholder engagement 59 2030 Forced Remedy 60 Stakeholder COVID-19
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM labor Culture change through training 63 – engagement human Human rights regulations 64 rights TOWARDS 2030 65 Vision 2030 66 response UN Guiding Principles Reporting Framework 59 36 09 66
HUMAN RIGHTS RIGHTS HUMAN Index of Answers 71
2 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
IntroductionMessage from our Group CEO 04 About the company 05 Sustainability strategy 06 Board oversight and governance 07 Climate change 08 COVID-19 human rights response 09 Key milestones and evolution 10 UNGPs anniversary 11 Human rights metrics at a glance 12
3 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Message from our Group CEO “When I contemplate who we are as a company and how we operate, I am drawn back to the basic idea at the heart of our management approach.”
Our 4S model1 has been a fundamental part And with our business partners, we have worked In sustainability, we have embedded While every company is different, we have of our DNA for many years. It helps us to be to ensure that they integrate and adhere to our three absolute requirements that a collective responsibility to do business in mindful of our key stakeholders – consumers, high standards. apply to our whole business, the first a way that upholds people’s freedoms and shareholders, employees, and society – and Respect for human rights is a key component human rights. In doing so, we will advance drives us to exceed their expectations in all that of who we are and how we conduct ourselves. of which is a commitment to respect progress to a more respectful world. we do, wherever we can. The JT Group Human Rights Policy is based on human rights across our global As an international company with a reputation internationally recognized guiding principles, operations and value chain. for the highest operating and reporting and together with our Code of Conduct, standards, we frequently publish reports for guides how we operate in our daily operations. Rights-based approach investors, current and future employees, and We manage human rights due diligence as a the wider public. We now add our first-ever continual process and are constantly learning The most significant recent change, however, standalone Human Rights Report to this list. from the feedback we receive from stakeholder has been brought about by the COVID-19 pandemic. It has affected every part of our value It is particularly appropriate this year, coming engagement programs and Human Rights Impact Assessments. chain. Our priority throughout has remained on the 10th anniversary of the unanimous the safety of employees and their families and endorsement by the United Nations of Changing times our stakeholders’ wellbeing. I am proud that we their Guiding Principles on Business and have risen to the challenge and have adapted to Our business, particularly our tobacco business, Human Rights. the new ways of working with agility and speed. which includes some well-known brands that The publication of this report has date back to the early 20th century, has seen We have continued to apply our rights-based provided us with an opportunity a significant change in recent years. Heightened approach throughout this time. For years, we perceptions regarding smoking and health, have used this strategy to drive improvements to highlight both the achievements the emergence of new reduced-risk products2 in supply chain labor practices via our of which we are so proud as well as categories, more stringent regulations, and Agricultural Labor Practices program, to support the challenges we have faced. the increasing importance of sustainability communities with projects where we feel issues are just some examples of a new we can make a real difference, and to bring FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM When I look back over the past decade at operating environment. comfort to the disadvantaged in times of need – or after natural disasters. And crucially, we our approach to human rights, I can see just How we react to these changes affects how are committed to upholding and safeguarding how far we have come. Internally, within the we are viewed by our stakeholders. company, we have worked to embed respect human rights everywhere. The Guiding Principles and tolerance across gender, race, religion, In the area of reduced-risk products, for example, have shown themselves vital in shaping our we have adapted our strategy to respond to and sexual orientation and do not tolerate any human rights approach and will continue to Masamichi Terabatake fast-changing consumer expectations. guide and inform us in the decade to come. form of inappropriate behavior or discrimination. Representative Director and President,
HUMAN RIGHTS RIGHTS HUMAN Chief Executive Officer
1 Read about our 4S model on page 5. 4 2 Reduced-Risk Products (RRP): products with the potential to reduce the risks associated with smoking. CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 About the company
History at glance 1985 1994 1998 1999 2007 2008 2010
Japan Tobacco (JT) Inc. JT stock was listed on JT acquires a majority Japan Tobacco International (JTI) is JT acquires Gallaher. JT acquires Katokichi CO., Ltd, JT acquires Fuji Food Read more about was established the stock exchange in Japan stake in Torii founded as a result of JT’s acquisition These two acquisitions renamed to TableMark Co. Ltd. Corporation, enhancing the JT Group history. Pharmaceutical Co., Ltd of the non-U.S. tobacco business of significantly strengthened the the processed food business R.J. Reynolds Nabisco Inc. international tobacco business JT acquires Asahi Kasei Corporation’s food business
The JT Group is a leading global International Japanese-domestic Pharmaceutical Processed food Our management Our vision and mission tobacco company headquartered tobacco business tobacco business business business principle Our vision is to be a growing global in Tokyo, operating in over Japan Tobacco The Japanese-domestic The pharmaceutical The processed food Under our 4S model, International, our tobacco business, business focuses on business handles the we strive to fulfill company that provides diverse 70 countries/regions and selling international tobacco headquartered in Tokyo, the R&D, manufacturing, frozen and ambient food our responsibilities value, unique to the JT Group. products in over 130 countries/ business headquartered manufactures and offers and sale of prescription business, mainly for to our valued consumers, regions. The Group employs more in Geneva, manufactures tobacco products drugs, concentrating on frozen noodles, packaged shareholders, employees, Our long, rich history has endowed us and offers tobacco mainly for Japan. three specific therapeutic cooked rice, and frozen and the wider society, with three key strengths: a solid financial than 58,000 people. In addition products worldwide The Japanese market areas: metabolic okonomiyaki (Japanese carefully considering base, superior brand equity, and a diverse to the tobacco business, we also except for Japan and is the source of roughly diseases, autoimmune/ savory pancakes); the the respective interests workforce. To realize our vision, we plan operate pharmaceutical and a few Asian countries/ 27% of the JT Group’s inflammatory diseases, seasonings business, of these four key to leverage these strengths as sources of regions. It is the source revenue and the world’s and viral infection. focusing on seasonings stakeholder groups competitiveness in our business activities. processed food businesses. We will create a variety of products and of roughly 62% of the largest market for heated Main products include including yeast extracts; and exceeding services that meet the needs of our JT Group’s revenue, tobacco sticks (HTS). the following: and the bakery business their expectations consumers and society, enhance the and its key markets Its brand portfolio includes through bakery chain wherever we can. CORECTIM® Ointment, corporate value of the JT Group, and include France, Italy, the following: outlets, mainly in the Russia, Spain, Taiwan, Riona® Tablets, Tokyo metropolitan area. create social value that contributes to Ploom in the RRP and REMITCH® the development of a sustainable society. +58,000 Turkey, and the U.K. Major products Shareholders category and key CAPSULES/OD Tablets. Its international brand include the following: Employees brands such as MEVIUS, Our mission is to create, develop, portfolio includes Seven Stars, Natural Reito-Sanuki-Udon the following: and nurture our unique brands American Spirit, Winston, (frozen noodles), to win consumer trust while leading brands in and Camel in the Takitate-Gohan Consumers FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM understanding and respecting
– cigarettes and FCT cigarette category. (packaged cooked rice), (fine-cut tobacco), and the Vertex (yeast the environment and the diversity +130 Employees Society such as Winston, extract seasonings). of societies and individuals. Countries/regions where Camel, MEVIUS, and LD, JT Group sells its products as well as in RRP, such For more details on the above, including as Logic and Ploom. our value creation process, see the JT Group Integrated Report 2020. HUMAN RIGHTS RIGHTS HUMAN
5 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Sustainability Absolute requirements Our sustainability strategy, which applies across strategy the Group, is driven by three absolute requirements that are at the heart of everything we do.
1. Respect for human rights Sustainability permeates our wider 2. An improved social and environmental impact business strategy and is an integral 3. Good governance and business standards part of delivering value to our stakeholders. Focus areas The United Nations Sustainable Development Goals For our tobacco business, our core business, we have set four focus areas with aspirational goals By working towards our and specific targets. sustainability targets, we aim to fulfill our responsibilities to 1. Products and services the United Nations’ Sustainable 2. People Development Goals (SDGs) by prioritizing nine Goals. 3. Supply chain 4. Regulatory environment and illegal trade
Read more about our sustainability strategy, including pharmaceutical and processed food businesses. FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM – HUMAN RIGHTS RIGHTS HUMAN
6 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Board oversight and governance “Corporate governance is one of the most important management issues. Governance is a mechanism for ensuring that transparent, The CEO of the JT Group (JTG) and the Board of Our Executive Committee, management, and regional Our commitment to do business with respect for Directors play a key role in formulating the JTG teams are informed on the policy implementation. human rights is anchored in a set of policies, covering fair, prompt, and resolute decision-making Sustainability Strategy, which has respect for human Externally, we publish information via our website to governance and compliance, environment, community rights at its core. They oversee and are accountable for keep our stakeholders informed of news and progress. investment, and the supply chain. These policies define is carried out in line with the 4S model, our the effectiveness of this strategy, as they are committed and set expectations for JTG on human rights and guide to the Group achieving its sustainability targets. External Human Rights Advisory Board1 how we strive to do business every day. management principles. Going forward, we The Chief Sustainability Officer, who is a member To advance the rights of our stakeholders, it is important Our JT Group Human Rights Policy follows the of the Board, is responsible for driving sustainability that we listen to the advice, concerns, and criticisms framework provided by the UN Guiding Principles will keep our governance under review for across the Group, including respect for human rights. of people outside the JT Group. on Business and Human Rights (UNGPs). continuous improvement to ensure it is fit Our reporting Concerns Mechanism helps We take counsel from our External Human Rights Advisory Board that was set up in 2017 and met on Review of our policies us ensure that we listen to and act on the an annual basis up until the time of the pandemic. At the start of our human rights due diligence process, for the purpose.” grievances of those whose human rights The Advisory Board plays an important role in providing the corporate-level Human Rights Impact Assessment might be impacted by our activities. us with a broad external perspective in the human rights (HRIA) was conducted by a third party to identify any area. Made up of international experts on business gaps in the context of human rights. and human rights, the Advisory Board advises us on Our human rights governance and management system The findings of this assessment showed that human all issues relevant to the implementation of our human rights are embedded across JTG framework of While the JTG CEO and Board of Directors are rights strategy. They guide us with their expertise and corporate policies and procedures, including the means accountable for the strategy, governance, and reporting challenge us where they believe we need to improve, to investigate and mitigate human rights risks across of adherence to the JTG Human Rights Policy, each helping strengthen our efforts to deliver on our human our operations and business relationships. local business unit is responsible for the operational rights commitments. We are intending to resume our Some of the most relevant policies within our implementation and has an appropriate management Advisory Board meetings later in 2021. system to execute human rights initiatives. Supplier Standards, Agricultural Labor Practices (ALP) guidelines, and Code of Conduct were also updated For example, in our international tobacco business, Advisory Board members include: and strengthened following this assessment. markets are responsible for the operational Donna L. Westerman implementation of key programs to support Human Sustainable Purchasing Leadership Council Rights Policy execution. Our Corporate Sustainability Jonathan Drimmer and Leaf teams follow our core due diligence principles Paul Hastings to embed a culture of respect for people. A global
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM network of Human Rights Champions and local leaf Paul Bowden – Supply Chain Due Diligence Committees provide The Nottingham Law School guidance and best practice sharing. Richard Karmel The Business Ethics Committee, internal corporate Mazars functions, the External Advisory Board, and external experts Kazuhito Yamashita Rona Starr are consulted to provide input and support concerning Director and Senior Vice President, human rights and the JT Group Human Rights Policy. Association for Professional Social Compliance Auditors Chief Sustainability Officer,
HUMAN RIGHTS RIGHTS HUMAN Compliance and General Affairs
1 The JTI External Human Rights Advisory Board. 7 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Climate change
Whether fires in Australia, droughts in South America, We are a member In 2020, we achieved a place on CDP’s prestigious ‘A List’ “Climate change directly and indirectly interferes with the or tropical cyclones in Asia, we must respond to of the Dow Jones for tackling climate change and acting to protect water emergencies quickly and with determination. We must security for the second consecutive year. In addition, enjoyment of all human rights, including the rights to life, also remember that these events are symptoms of Sustainability Indices CDP recognized us as a global leader in engaging our a larger, underlying pattern: the breakdown of global Asia Pacific for the supply chain in addressing climate change. This marks housing, water and sanitation, food, health, development, environmental systems that makes them more frequent. seventh consecutive our second recognition for CDP Supplier Engagement While our immediate focus has to be on adressing year and achieved Leader following 2019. security of person and an adequate standard of living. the COVID-19 pandemic (another example of fragile At JTG, we recognize that by empowering workers and relationships in nature), we must also look to the a perfect score of 100 communities and listening to their voices, we will be able Furthermore, the impacts of climate change exacerbate longer-term goal of restoring the balance between in Environmental to meet our responsibility to operate in a low-carbon people and the planet. Reporting and future. As we embrace our obligation to respect human inequalities disproportionately affecting persons, groups and At JTG, we believe that we have a key role in tackling rights, it is vital that our actions equally reflect the climate change as a global company. We are committed Climate Strategy climate crisis. Looking after our people and respecting peoples already in vulnerable situations including children, to reducing our greenhouse gas (GHG) emissions to in 2020. the planet go hand in hand, and together, this drives support the Paris Agreement on global climate change, our sustainability ambition. indigenous peoples, and persons with disabilities.” with the longer-term aim of achieving net-zero carbon emissions from our operations. We also recognize that United Nations Office of the High Commissioner for Human Rights (OHCHR), climate change has the potential for profound negative Human Rights, Climate Change and Business (January 2021) impacts on human rights as the most vulnerable in our societies are likely to be most negatively impacted as average temperatures rise. JT Group Environment Plan 2030 Our approach to environmental management Our commitment to climate action with our science-based
TO PRACTICE PRACTICE TO target in line with the Paris Agreement FROM PRINCIPLES PRINCIPLES FROM – HUMAN RIGHTS RIGHTS HUMAN
8 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 COVID-19 human
rights response “In full alignment with my ExCom colleagues, I would like to reassure you that caring for our employees remains our key priority. If, so far, our attention has focused on At JTG, people come first. Despite hope Throughout the pandemic, key decisions measures of safety and wellbeing Protecting those most at risk until on-site assessments can be Viable vaccines are now the reality, (working from home, split shifts, on the horizon with the global rollout have involved many of those directly To prioritize our actions, we focus our conducted again. which appears to be bringing the of the vaccines, the lasting effects impacted, enabling us to effectively etc.), we also want you to know attention on those whose human rights To ensure our responses align with pandemic under control in those countries of the pandemic are likely to have safeguard their rights and see impacts that you should feel reassured are most at risk, taking concrete steps human rights best practice, we follow with an effective vaccine program. tremendous impacts on everyday lives and issues through the eyes of people about your employment status. to respect their rights. Our approach is the United Nations Development However, we recognize that the economic and fundamental human rights. who might be harmed. In addition, informed by the framework provided by Program Human Rights Due Diligence and human fallout will last for years. Despite the unpredictable Respecting human rights is a our international tobacco business the United Nations Guiding Principles on and COVID-19 Rapid Self-Assessment That is why we firmly believe our cornerstone and key requirement of developed global guidelines that help environment, employment and Business and Human Rights (UNGPs), in for Business which provides structure people-first approach is the right one. the way we operate and do business identify and try to protect employees and compensation arrangements will particular, Guiding Principle 17 Protecting to our response and ensures we It is in the interest of the private sector, and is especially important in times contractors who are most vulnerable. continue unaltered as a result those most at risk To prioritize our make rights-respecting decisions governments, and the public to safeguard of economic hardship and a public We have taken the same risk-based of our responsive measures to actions, we focus our attention on those across the business. and protect human rights everywhere. health crisis. As a company with a approach for office-based workers. the COVID-19 crisis. whose human rights are most at risk, global footprint, we take an approach No one should feel unsafe in the taking concrete steps to respect their consistent with global human rights workplace. In locations where conditions Why are we doing this? Simply rights. Our approach is informed by “The UN Guiding Principles on Business and Human Rights make expectations. Whether you work on have allowed employees to return to because it is the right thing to do, the framework provided by the United the pathway clear: companies have a responsibility to respect the rights a farm, in a factory, or in an office, the office, individuals are empowered and simply to reassure those of you Nations Guiding Principles on Business of those they impact through their business operations and supply we strive to put people first. to decide whether they deem it safe and Human Rights (UNGPs), in particular, who might feel that their jobs, or their chains. That is especially important during a global pandemic. Our The safety and wellbeing of our workers, to return based on the new safety pay, are at risk because of the crisis.” Guiding Principle 17, which speaks about their families, and communities are at measures in place. carrying out human rights due diligence. commitment to respect human rights and conduct due diligence never the forefront of every decision we make. The exceptional nature of the pandemic With our ability to conduct in-person wavered during the COVID-19 crisis. Our people, our suppliers, and means that many of our employees are human rights assessments disrupted our communities make us who we are, and it is vital that we continue Safeguarding employment reporting increased anxiety and stress by the pandemic, we have had to adapt. and wellbeing caused by isolation and uncertainty. One of the ways we have done this is by to care for them, hear their voice, and respect their human rights.” For many of our employees and To address this, our international rolling out human rights self-assessment contractors, working from home is not tobacco business developed a Mental questionnaires (SAQs). The SAQ is a set an option because they work in factories, Health Toolkit and accelerated the rollout of approximately 100 questions based sales distribution, and other field-based of our Employee Assistance Program, on JTG’s human rights due diligence jobs. To ensure they can work safely, which offers employees and up to five methodology, our operational model, FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM we put in place stringent measures family members access to mental and our salient issues. The responses – that take a risk-based approach and health counselors. to these questions are reviewed by both internal and external human rights put people first. Read more about our approach experts with relevant gaps and risks to mental health. Eddy Pirard identified, which the business is able to Chief Executive Officer, JT International S.A. address through targeted action plans. Charlie Watson In a letter to all staff on 27 March 2020 The large deployment of SAQs is a Human Rights Director, 1 HUMAN RIGHTS RIGHTS HUMAN in response to the COVID-19 pandemic outbreak stop-gap measure for high-risk countries JT International S.A.
1 Certain headcount changes were made that were unrelated to the crisis, not as a direct result of the pandemic. 9 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Introduced the Group’s Sustainability Strategy. Key milestones and evolution The Strategy outlines three absolute requirements, and respect for Human Rights is one of them.
Determined how our approach to sustainable business is aligned with the SDGs.
Completed our pilot 2011 year of HRIAs in six high-risk countries3. Founded ARISE - Achieving Publilshed the JT Group Reduction of Child Labor Human Rights Policy, Established human rights Undertook remote in Support of Education, which is based on governance at the country human rights due as part of our sustainable Published our first the framework provided level via a network of diligence with SAQs in supply chain management. Sustainability Report. by the UNGPs. Human Rights Champions4. 10 high-risk countries.
2011 2013 2016 2018 2020
2007 2012 2015 2017 2019 2021
Established the Reporting Developed our Agricultural Carried out a company Established the Completed another seven Continued our remote Concerns Mechanism to Labor Practices (ALP) materiality assessment by External Human Rights HRIAs in high-risk countries human rights due ensure that we listen to guidance and kicked off engaging internal and external Advisory Board2. for the international tobacco diligence through SAQs. and act on the grievances the program in 2013. stakeholders and selected business and three HRIAs of those whose human a list of material issues. Published our first JTI in high-risk countries for Completed the identification rights might be impacted Respecting human rights was UK Modern Slavery the processed food business. of our salient issues. by our activities1. identified as a key issue. Act Statement. Published our first Will launch our new digital Conducted HRIAs Integrated Report. e-learning platform5. across JT Group Ran an externally facilitated Published our first Human cross-functional workshop Conducted the Rights Report as our to identify our salient human corporate-level HRIA rights issues. contribution to the UNGPs
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM to review our policies 10-year anniversary.
– and procedures. Made public our human rights correspondence with Human Launched a human rights Rights Watch, the UN Human e-learning program Rights Council, and The in 25 languages, Guardian on our website. available to our Read more about our human employees globally. rights correspondence. HUMAN RIGHTS RIGHTS HUMAN
1, 2, 3, 4, 5 This applies to our international tobacco business. 10 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 UNGPs anniversary
In June 2011, the United Nations Human greater health and economic impacts Rights Council unanimously endorsed and risks. The UNGPs, however, remain the UN Guiding Principles on Business a baseline for corporate and state and Human Rights (UNGPs). Rather than behavior and present a great creating a new set of international law opportunity for States and businesses obligations, these soft law principles to drive improved and wider respect are a set of guidelines for states for people. More and more companies and companies to prevent, address are now embedding the key concepts and remedy human rights impacts of the UNGPs such as prioritization committed in business operations. and salience, risk assessments and integrating improvements, and to a lesser The publication of the extent providing access to remedy. JT Group’s first standalone At the JT Group, we are excited to see Human Rights Report is the debate about mandatory human rights taking place at the highest levels our way of celebrating the of our society as it will not only send 10-year anniversary of the a clear message to all companies, UNGPs, a set of principles but it will amplify the positive impacts that companies, such as the JT Group, that the JT Group applauds can have on society. More consistent and strives to align with. messaging and more significant efforts from both corporates and governments One of the key achievements of the should help bring the UNGPs into the UNGPs has been the introduction into mainstream and the lexicon of business the terminology increase respect of human rights due diligence. This is for human rights. fundamentally different from the one- off exercises of due diligence when one company buys another. Moreover, human rights due diligence is a recurring exercise of understanding, self-
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM improvement, and remedy. – This year, however, should be a real inflection point as COVID-19 has amplified and laid bare the inequalities to the most vulnerable in our societies. The pandemic has disrupted supply chains and exposed many workers to HUMAN RIGHTS RIGHTS HUMAN
11 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Human rights metrics at a glance
9 Human rights salient issues
87% CHILD LABOR 10th 1 20 12 ENVIRONMENTAL IMPACTS Of all the entities Anniversary of ARISE Grower Livelihoods Weeks full paid Remote human FAIR WAGE that provided us with with 64,000 children Assessment conducted parental leave rights due diligence FORCED LABOR 1 tobacco leaf reported HARASSMENT AND enrolled in formal and in Zambia regardless of gender assessments against Agricultural GENDER IMPACTS informal education during COVID-19 Labor Practices. HEALTH AND SAFETY HEALTH RISK NON-DISCRIMINATION AND EQUALITY WORKING HOURS
7 64 38 66 551 20th 32 Years in a row as Countries, in which we Human Rights Impact Countries with Organizations Anniversary of Human Rights Certified Global are certified as a Top Assessments conducted local community supported on the JTI Foundation Champions working FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM Top Employer Employer by the Top to date with action investment funded community that supports with across the company – Employers Institute plans in place by the JT Group investment programs disaster relief, disaster to embed respect risk, and building for human rights community resilience HUMAN RIGHTS RIGHTS HUMAN
1 This applies to our international tobacco business. Read more about our external recognitions. 12 2 25 HRIAs were conducted in Japan at our subsidiary companies, with 2 HRIAs conducted in China. CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Overarching human rights strategy 14 Due diligence approach 15 Our assessments 19 The role of local governance 22 Strategy
13 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Overarching human rights strategy
RESPOND D N We respect human rights across our impacted by our activities. Through this legitimate, fair, Principle documents A E and accessible mechanism, we encourage employees and policies Y IZ M value chain and recognize the Universal IF T E and suppliers to speak up on human rights, without fear T I A Declaration of Human Rights, the of retribution, about any concerns they may have. Universal Declaration N R S International Bill of Human Rights, and of Human Rights E IO U Our suppliers and other business partners worldwide D R Our human R I the International Labor Organization’s are required to respect human rights by adopting and International Bill P rights strategy E Declaration on Fundamental Principles maintaining internationally recognized labor standards of Human Rights regarding child labor, rights of workers, and workplace ILO Declaration on and Rights at Work. health and safety. Those requirements are embedded Fundamental Principles in the JT Group Responsible Procurement Policy, Our JT Group Human Rights Policy is aligned with and Rights at Work the framework provided by the UN Guiding Principles JT Group Supplier Standards, and ALP, which govern on Business and Human Rights (UNGPs). This means our relationship with our business partners. JT Group Human Rights Policy
working to avoid infringing the rights of others and Our human rights strategy is based on five pillars: D
addressing any adverse impacts arising from our local E Embed, Identify and Prioritize, Respond, Measure, JT Group Code of Conduct T
operations, which the business might have caused or B and Report. This circular due diligence model R
contributed to. We require compliance from our JT aligns with the UNGPs, the OECD Guidelines for Reporting M O
Group employees, our Board of Directors, our suppliers, Multinational Enterprises, and the OECD-FAO Guidance Concerns Mechanism E P and our business partners. for Responsible Agricultural Supply Chains. E Supply chain Our commitment to human rights is reinforced by our R policies and standards Board of Directors through our Code of Conduct. Human rights due diligence is an essential and integrated part UNGPs of our business processes allowing us to identify and assess actual and potential human rights risks. This OECD Guidelines for is enhanced by our Reporting Concerns Mechanism, Multinational Enterprises which, as well as acting as an early warning mechanism, OECD-FAO Guidance FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM helps us ensure that we listen to and act on the
– for Responsible grievances of those whose human rights might be Agricultural Supply Chains HUMAN RIGHTS RIGHTS HUMAN
14 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Due diligence approach
Embed Identify and prioritize Respond Measure Report
We are working hard to embed human rights There are many ways within our due diligence Our assessments are a means to an end, not an We are committed to continually measuring the Our understanding of our obligations under the thinking in our corporate culture and improve ecosystem, through which we identify and assess end in themselves. They are part of a wider suite effectiveness of, and improving where possible, UN Guiding Principles is to ‘know and show’ that employees’ understanding of the human rights actual and potential human rights risks in our value of mechanisms that enable us to build a picture our approach to respecting human rights. we are aware of the potential human rights-related implications of business decisions. To do this, we chain. These include the following: of where our greatest human rights risks and Since we started our broad HRIAs in 2017, we risks to which we may be connected, and that we provide regular training, including online e-learning, impacts might lie. The information generated measure the effectiveness of our action are taking appropriate steps to manage those that and continuously share information about human 1. A broad-based approach across by these assessments helps focus our work to plans. Each action plan includes an occur. The UN Guiding Principles encourage rights and the JT Group Human Rights Policy. our entire value chain, from meet our responsibility to respect human rights. individual set of key performance corporate transparency to the benefit of farm to store, via Human Rights Specific country action plans are developed, indicators that measure the a broad set of stakeholders. We always including the local business, employees, and effectiveness of our improvements work to meet this level of transparency Impact Assessments (HRIAs) communities, to address issues identified over time. Our local Human and disclosure. through HRIAs and SAQs, and other tailored Rights Champions track the Our first human rights report builds 2. A deep dive approach via Supply programs. These plans enable the relevant implementation of each action upon our Integrated Reports, the Chain Impact Assessments in business unit to drive improvements and integrate item and report on a quarterly basis regularly updated online reporting via our our Leaf Supply Chain human rights into the existing management to the central human rights team. websites, and the ARISE Annual Reviews processes in a consistent way. The plans have All human rights action plans are on our work to eliminate child labor in 3. A systemic process via our defined responsibilities, clear timelines for discussed on a quarterly basis with our supply chain. implementation, and key performance indicators local management. Agricultural Labor Practices to monitor progress. Read more on our measurement ARISE Annual Reviews (ALP) and the Extreme Breach approach and local governance. concept in our Leaf Supply Chain Read more about our action plans. Integrated Reports jt.com Read more about our human rights e-learning program. 4. Human Rights Self-Assessment jti.com Questionnaires (SAQs) In line with the UNGPs, these assessments focus on the greatest risks to people, both within our own company and through business relationships with our suppliers and other related stakeholders. As a FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM
– result of the assessments, we aim to address the identified risks of rights-holders, meet our stakeholder expectations on respecting human rights, and mitigate the overall risks to people and the business. Our approach and methodology are tailored to match exactly what we are assessing. Thanks to this flexibility, we continue to conduct human HUMAN RIGHTS RIGHTS HUMAN rights due diligence throughout the pandemic. 15 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Due diligence approach
Identifying high-risk countries as part of a due The Maplecroft data provided valuable information Combining the Maplecroft data with these additional Programs 1 diligence roadmap for us to start our journey, but we needed to apply business-focused criteria helped us focus on the To address our human rights issues, In 2017, we began to prioritize our human rights work our business operations and activities into the risk countries where people are most at risk. For us, by identifying where we believed our greatest potential assessment to understand the whole human prioritization is not dictated by what is easiest to assess local teams put in place their own risks to people lay. We started by using Maplecroft rights context. but by the severity and scale of our potential impacts. customized corrective measures through country risk indices, which provided geopolitical In 2019, our Human Rights External Advisory Board As our business changes, so do our impacts on human human rights action plans. We also have information on how human rights are upheld in every recommended that we link the Maplecroft geopolitical rights, and our responses equally need to evolve. country we operated in. data with information on our value chain, as this would As such, we update our list of high-risk human rights global programs available to the local better identify where the greatest risk to people in our countries every two years. markets to ensure a consistent approach Using this country-level data, we were able markets may be present. We set about adding additional We are committed to assessing all current across the Group. criteria into a much larger risk matrix. This information to identify which countries were at the high-risk countries by 2025 in our international tobacco helped us achieve a greater understanding of actual JT Group Code of Conduct business. By the end of 2020, we have assessed highest risk from a human rights standpoint and potential human rights impacts, which we caused 25 out of 67 high-risk countries on human rights. JT Group Health and Safety and start our due diligence work accordingly. or to which contributed. This equates to 37% in 2021, and we believe Agricultural Labor Practices In our pilot year, we conducted five HRIAs of we are on track to meet our 2025 objective. our list of ‘high-risk human rights countries’, ARISE Annual Reviews Read more in Assessments. which included Myanmar, Tanzania, and Community investment the Dominican Republic. Diversity and inclusion FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM – HUMAN RIGHTS RIGHTS HUMAN
1 This applies to our international tobacco business. 16 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Due diligence approach
Leaf Supply Chain Due The Leaf Sustainability Framework Agricultural Labor Practices (ALP) on Responsible Agricultural Improving livelihoods Diligence (SCDD) consists of 3 pillars: economic, One of the targets of our Group Supply Chains, and OECD Due The wellbeing of growers and social, and environmental; and six sustainability strategy is to Diligence Guidance for Responsible through the Leaf Sustainability Framework workers is central to the long-term focus areas: crop integrity, crop implement ALP in all leaf sourcing Business Conduct. sustainability of our business. production, resource management, countries by 2025. ALP sets our How we operationalize the UNGPs For this reason, addressing human climate change, human rights, and position and expectations regarding to identify and act on impacts at rights impacts in our agricultural growers’ livelihoods. The continuous three pillars of labor practices at E the farm level I Z supply chain is a key focus of our improvement process around the farm level: Child Labor, Health I T R work to embed doing business these pillars and focus areas is and Safety, and Rights of Workers. At JTG, we take the steps needed O I R defined as our Leaf SCDD Process, R responsibly in the culture of JTG. to protect rights-holders as well as chnical developm E ALP implementation began in P t in te ent (in men c. A S based on our five-step framework: train our agronomy technicians on est pture & transac DE Inv ata ca tional T) P 2013 with pilots carried out by JTI D RP d capa identify, prioritize, respond, M E ed extension s bili O We source tobacco leaf from the ground to better identify and N GR P-bas ervice ties subsidiaries in Brazil and Serbia, A GA s N measure, and report. A S act upon any human rights impacts u s D more than 30 countries, where local JTI entities contract ta rodu i Y l op P ctio n We see all these elements as they observe. One way in which ia r n P a growers directly. ALP has since r C ro b F te t le either directly from a e f we do this is through our Extreme I C c o interlinked similar to how the UN M R t r been implemented in all other t e P in e d n A g s T e e s B t Breach Concept. t e w w growers via our vertically o i SDGs are interlinked. The elements la m c a o m e u d a vertically integrated operations, e n s t a N g a y r t i e R t e v n a n i c e r o a within our framework complement n e r e m r r E c a v s e g integrated operations or namely: Malawi, Italy, Zambia, Read on our Extreme Breach Concept. c o g a i s e r n t m a m M y o p e a b u the overall approach to responsible D A f t g e o a r n Tanzania, Turkey, USA, and Japan. P a e c T n I - C e m e t from third-party suppliers. I n n L E s e „ and sustainable leaf sourcing. o n a p v n ALP implementation in newly N g o ic ir t r o e In 2020, we worked with more than m n m For example, we encourage acquired businesses in Ethiopia and C o m
n e 76,000 directly contracted growers o e growing complementary crops as Bangladesh is expected in 2021, n n c
t t in our vertically integrated operations E
a this practice is beneficial, both for following on-the-ground HRIAs.
l in Bangladesh, Brazil, Ethiopia, Japan, people and the environment, and In 2015, engagement on ALP with G Malawi, Serbia, Tanzania, Turkey, +30 it is one of the ALP components. r our appointed regular third-party o e the U.S., and Zambia. Contracting C w g t Crop rotation is necessary for Countries where JT Group o n leaf suppliers began. Findings were n s e e C leaf growers directly enables us t o a m n soil health, and complementary
& r „ source tobacco leaf T m p o made available as of 2016 through
m h o i L s t p l to monitor and attempt to improve
e n a
l a i C R crops create an opportunity for e r S v o g v o al i i M g ci e an online reporting platform every m t i e s i n d
a e e is labor and agricultural practices O r n - l y m additional income and food security. k b i t t t a e m d six months. These findings provide e a h a i e
t s r e P r e o t M y a G a carefully. It also has the wider
c d o m v l Complementary crops, continuous
a r i o H e E p l r greater transparency on labor and t o r d c G - c p ic c y
h p i s C a 3 benefits of allowing us to produce
R in n b e m agronomic advice on improving
g g o p o human rights at the farm level and T o n
c ro a more customized crop and helping
S g yield and quality, best agroforestry
M
D A help us to facilitate dialogue at the +76,000
H s improving growers’ livelihoods,
u t E
N man Righ practices, and responsible ALP, to local level. This dialogue includes
A
A Contracted growers
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM productivity, leaf quality, and integrity.
name a few initiatives, contribute
Hu e S
man R iligenc annual face-to-face meetings with
E ights Due D –
Agri U
T cultu es „ hand in hand to the economic,
ral Labor Practic R Across our leaf supply chain, our key suppliers.
A F )
a s E
rm hea c. CPA social, and environmental pillars
C Gro lth & safety (in
I we we are not just buying leaf.
r Supp ARISE „ Today, ALP is integrated into the
N ort Programs and of sustainable and responsible
U We are focusing on strengthening broader SCDD process that is carried M
M agricultural production.
O a resilient, sustainable and C out locally and aligned to the UN 100% transparent leaf supply chain, Guiding Principles on Business and supported by a robust process Human Rights, OECD/FAO Guidance ALP implementation
HUMAN RIGHTS RIGHTS HUMAN of continuous improvement. in leaf sourcing countries by 2025
17 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Due diligence approach
Key suppliers screened against Environmental, Social, and Governance (ESG) criteria in JT Group tobacco business
Due diligence in the non-tobacco Supplier screening 2020 2023 supply chain Our Group-wide supplier screening We aim to achieve high standards of process ensures that we apply integrity across our business operations enhanced due diligence. Before entering and our supply chain. Our Supplier into a commercial relationship, our Standards define the requirements for key suppliers go through a detailed suppliers providing goods and services qualification and selection process, to our company. We require suppliers including screening and onboarding. to comply with our Supplier Standards This process allows us to learn more and ensure that their suppliers involved about the supplier and understand in providing goods and services to us any gaps versus our standards comply with our Supplier Standards. and requirements. In particular, it Our suppliers shall respect human rights highlights any potential risks relating to by adopting and maintaining standards compliance, human rights, environment, of labor practices and working conditions and health and safety. 64% 100% that comply with all applicable local If any risks are identified through legislation and international conventions. this process, we offer support and For example, several governments have collaboration on mitigating the risks and enacted legislation that prohibits any making the necessary improvements. We form of modern slavery, which may follow progress on a yearly basis and, if include forced labor, human trafficking, there is no improvement after an agreed or child labor. For example, the UK duration, we may consider terminating passed the Modern Slavery Act in our relationship with the supplier. 2015. Accordingly, JTI UK has been In 2020, we revised the JT Group publishing the annual Modern Slavery Supplier Standards and reflected the Act Statement in accordance with the UK increase in transactions with overseas Modern Slavery Act 2015 since 2017. suppliers. We have been embedding these standards into all requests for JTI UK Annual Modern proposals and contracts to ensure Slavery Act Statements that all of our suppliers are aware of our requirements. Working in collaboration with our FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM
– suppliers enables us to mitigate risks and improve standards across our supply chain, no matter what products or services we procure. JT Group Supplier Standards HUMAN RIGHTS RIGHTS HUMAN
18 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Our assessments
Our Human Rights Impact Activities during an impact workers, as well as representatives Despite the global restrictions on travel, Rights-holder involvement and See an example of assessment are carefully planned of suppliers, clients, partners, our commitment to maintain human consultation are a fundamental our assessments Assessments (HRIAs) and before onsite attendance to ensure and the community. rights due diligence as part of our component of effective due diligence, in the Ethiopia 2019 case study. Leaf Supply Chain Impact that we can achieve the objective of At the end of the assessment, we Human Rights Policy never wavered so we plan to address this element Assessments (SCIAs) are fully understanding the actual and meet with local management to during the pandemic. We tailored our in our SAQs going forward. potential impacts of our operations approach and used additional tools focused on those areas report on the findings and discuss We recognize that relying solely on on all stakeholders. recommendations to address where necessary, such as Human SAQs can never be a panacea on their where we believe our Key activities during HRIAs include the root causes. Rights Self-Assessment Questionnaires own. However, they have enabled us visits and observations of farming, (SAQs). These consist of around to stay connected with those areas business activities may Read more about our human rights processing, manufacturing, and sales 100 questions based on our human where the most vulnerable could have the greatest potential governance and management system. and distribution operations. During rights due diligence methodology. be perceived as being more at risk, impacts on people. the assessments, we conduct a series We also undertook on-the-ground particularly in times of pandemic. of interviews with employees and assessments in Bangladesh and Zambia during the pandemic.
Due diligence through HRIAs, SCIAs, and SAQs
For more details on the findings and how we address them, see our human rights assessment country map. Thailand SAQ Jul 2020
Morocco South Africa SAQ SAQ Jan 2020 Jun 2020 Japan India Malawi Ethiopia Egypt Indonesia UAE Ethiopia HRIA SCIA SCIA HRIA and SCIA HRIA SAQ SAQ SCIA Dec 2016 2018 Sep 2018 2019 Mar 2019 Jun 2019 Oct 2019 2020 Jul 2020 Oct 2020 2021 Jul 2021
Switzerland Tanzania Mexico Malaysia China Bangladesh Kazakhstan Colombia Lebanon Vietnam Bangladesh Corporate HRIA HRIA HRIA HRIA HRIA HRIA HRIA SAQ SAQ SAQ SCIA
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM (processed Oct 2017 Feb 2018 Sep 2018 Nov 2018 Jul 2019 Sep 2019 Dec 2019 May 2020 Sep 2020 Feb 2021
– food business) Zambia Russia May 2019 Grower SAQ Livelihood Jul 2020 Assessment
Dominican Myanmar Kyrgyzstan Mar 2020 Tunisia Guatemala Republic HRIA HRIA SAQ SAQ HRIA Nov 2018 Thailand Sep 2019 May 2020 Sep 2020 Sep 2018 HRIA (processed Brazil HUMAN RIGHTS RIGHTS HUMAN food business) SAQ May 2019 Jul 2020 19 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Our assessments
Rights-holder identification1 Identifying and engaging with rights-holders through our assessments is Internal audit We recognize that our operations vital in helping us make decisions that will drive long-term sustainability. To further increase our human and products can have impacts Our key rights-holders and vulnerable groups are listed below: rights due diligence work, we on individuals. Identifying and integrated human rights into existing engaging these rights-holders risk identification tools such as is a central component of our our internal audit procedure. We human rights work. adapted the methodology to include 7 9 a greater focus on risks to people, Rights-holders are those rather than simply risks to the that we focus on in Vulnerable groups Rights-holder groups business, and trained our internal our human rights due auditors accordingly. This means that our internal audit procedure is diligence and with whom now better equipped to identify and JT GROUP EMPLOYEES we work to protect from understand risks to people. CHILDREN AND YOUTH CONTRACTORS ACROSS ALL SEGMENTS OF VALUE CHAIN human rights abuses. WOMEN GROWERS The findings of the internal audits MIGRANTS AND SUPPLIERS AND THEIR EMPLOYEES are shared with our human rights REFUGEES DISTRIBUTORS / LOGISTICS SERVICES PROVIDERS AND team, helping to build a wider INDIGENOUS PEOPLE THEIR EMPLOYEES picture of potential risks to people LGBTI PEOPLE SALES / MARKETING AGENCIES AND THEIR EMPLOYEES and allowing for more targeted and TEMPORARY WORKERS COMMUNITY MEMBERS, INCLUDING FAMILIES OF THOSE effective human rights assessments ETHNIC, RELIGIOUS, AND AFORE-MENTIONED CULTURAL MINORITIES JT GROUP CUSTOMERS and, where appropriate, remedy. JT GROUP CONSUMERS FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM – HUMAN RIGHTS RIGHTS HUMAN
1 This applies to our international tobacco business. 20 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Our assessments
Case study – Assessment in Ethiopia 2019
Step 1 Step 3 Step 5 Step 7
JANUARY 2019 MAY 2019 JULY 2019 AUGUST 2019
Introduction Impact Assessment 1 Report on findings Action Plan Launch • JTI Ethiopia started In-depth assessment in Jehwa, one of our • Presenting findings to Ethiopia • Developing local governance the HRIA planning and main leaf production areas in Ethiopia, with management of both assessments structure via human rights preparation phase the support of third party twentyfifty Ltd. • Following up on any clarifications champions to lead the to define objectives, • Conducting the on-site assessment and required or further information needed implementation of the timeline, and support starting the fieldwork action plan required to the team. • Holding introductory discussions with • Executing of action points community leaders in the Leaf area by the local team (respond, measure, and report) • Building trust and promoting discussion with rights-holders • Commencing a Deep Dive Study of the Root Cause Analysis on • Consulting with potentially affected Child Labor in Ethiopia at tobacco stakeholders directly, effectively, growers and farms for ARISE and meaningfully • Identifying individuals that may be 2019 at heightened risk of vulnerability 2020
Step 2 Step 4 Step 6 Step 8
MARCH-APRIL 2019 JUNE 2019 AUGUST 2019 JULY 2021 (planned)
Desktop research starts Impact Assessment 2 Prioritization workshop ALP Integration • Gathering data and info on JTI Ethiopia In-country assessment across all value chain segments • Analyzing identified impacts of both assessments • Conducting an additional and reviewing all available reports Leaf, Processing, Manufacturing, Offices, and Sales and • Prioritizing based upon scope, scale, and remediability assessment in July 2021 Distribution, with the support of third-party BSR to cover all leaf production FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM • Identifying key rights-holders and • Drafting findings, opportunities, and a set of
– areas in Ethiopia. This will stakeholders in assessment scope • Conducting the on-site assessment and impacts/indicators build on the initial assessment • Securing interviews with all starting the fieldwork • Defining prevention and mitigation measures undertaken in 2018 in Jehwa. stakeholders, planning logistics • Interviewing relevant company staff across functions, • Attributing whether caused, contributed, or directly The prioritized issues from this and agendas for assessments non-leaf suppliers, and other rights-holders linked to the impact assessment will guide the ALP • Giving feedback to local management • Systematically reviewing against salient issues • Leveraging the ability to affect change in the wrongful observation criteria when the based on initial findings, reconfirming and the long list of human rights across the whole practices of an entity that causes harm program is launched in Q4 2021. HUMAN RIGHTS RIGHTS HUMAN timeline and action points JTI value chain
21 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Role of local governance
For every country where an assessment has Q&A with champions – JTI Tanzania been undertaken, a robust local governance structure is established. Having the proper Q: What is your Q: What has been Q: What has been the Q: How has the leadership team has Q: Looking ahead, governance structure in place at the local role as JTI Human the biggest challenge biggest success story knowledge and been responsible for the while the immediate Rights Champion? for JTI Tanzania or progress with regards understanding of human execution of the action action plan has largely level is critical to driving improvements and Bright: Together with to respect human to the Action Plan? rights changed since plan, which is ongoing been addressed, will integration of human rights management Angela, I am a focal rights and implement Can you give 1-2 the 2018 HRIA? and from which we you continue to act as the Action Plan? into everyday processes. person for all issues examples of progress or Bright: Personally, continue to learn. For a champion and drive related to human rights, Angela: JTI Tanzania improvements resulting the assessment has instance, understanding improvements in human Human rights action plans are developed after every where I monitor and always respected from the Action Plan? enhanced my knowledge our leaf footprint outside rights in Tanzania? assessment and fall under the responsibility of the coordinate the agreed human rights, but our Angela: Our vendors and understanding of of the Tabora region has Bright: Yes. Embedding management in each country. To ensure the action action plans with local biggest challenge was actually mentioned that human rights. We see an led us to take greater a culture of respecting plans are implemented effectively and meaningfully, teams and update on National ID cards working with a company improved understanding account of human human rights is never- we appoint human rights champions and contact management and since this was not like JTI Tanzania across our growers with rights obligations in ending. With the business points in each country. To date, we have a network of HQ on progress. enforced initially. Once ensures they also step programs like the ALP. the supply chain. environment changing 32 human rights champions in our international tobacco Angela Mangecha the Government enforced up their services and We have also managed to rapidly, human rights business across 22 countries and 28 contact points People & Culture Director Q: How do you feel about Q: Do you think the role it, we were able to ensure standards, making them share this knowledge with issues are becoming the across 3 countries in our Japanese operations. having human rights helped drive positive all staff had a National adopt best practices employees and growers center of attention in our integrated into your The human rights champions are selected by the general change and ensured ID. Another challenge is more proactively rather across the supply chain. supply chain operations performance objectives country manager and local management, typically from local accountability for that we are one of the than relying on public requiring constant and annual appraisal? those operational activities where human rights risks are human rights following few companies that gives authorities. JTI Tanzania Q: Does the management monitoring. The drive for Will it be useful to embed relevant. The champions manage the implementation of the assessment in 2018? a more reasonable and cares for all people, team engage on human improvement on human this into our objectives the action plans locally, and the activities and progress Bright: Indeed, I have seen fair wage for outsourced not just its staff. This rights issues, and is rights performance to help drive change? of these champions across JTI’s global footprint are a change in how we think staff. We want to ensure makes people want there leadership is unavoidable. monitored by the Human Rights Director at JTI HQ. and conduct ourselves. outsourced staff gets to work with us. and responsibility Angela: I think it means a Our head office provides the champions with training Led by the leadership team, basic rights, and trying from the top? big step, and this signifies materials on the UN Guiding Principles on Business and we have communicated to get vendors on the Q: How did JTI HQ Angela: Yes, they do. that the company has Human Rights, as well as support and guidance for the a human rights stance same page has been a support you during Human rights cut across seen human rights as implementation of specific points within the action plans across the business, challenge. We continue the process so far? the business, with each integral to the business when requested by the champion. starting with updating our working closely with them Bright: They provided department having a and has made its After each leaf Supply Chain Impact Assessment, a contracts with growers, to ensure this is done. expertise, timelines, and role to play. Based on commitment clear. Supply Chain Due Diligence Committee is established. suppliers, service providers, guidance as per agreed identified risks within Adopting a responsible
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM This committee works across the operations to ensure Bright Kiwia etc. Championing this, action plans. They the leaf business, the business and human – meaningful processes are developed and implemented Corporate Affairs I have been consulted provided me with further leadership agreed on rights culture won’t only to act on the assessment findings. Led by senior Business Partner, Leaf on human rights-related clarity on some issues the priorities and adopted drive change but show management, the committees are crucial to ensuring issues and led various and shared best practices the action plan that that we walk the talk. that we meet our long-term improvement objectives. discussions on several from other markets and has been successfully topics, e.g., ALP reports. origins that we could implemented, with apply in Tanzania. most issues having
HUMAN RIGHTS RIGHTS HUMAN been addressed. The
22 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Salient
Identification of salient issues 24 issuesChild labor 25 Environmental impacts 30 Fair wage 33 Forced labor 36 Harassment and gender impacts 39 Health and safety 41 Health risk 48 Non-discrimination and equality 50 Working hours 54
23 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Identification
of salient issues “Identifying salient issues is the initial step for the human rights due diligence process under the UN Guiding Principles. The concept of salience uses The UN Guiding Principles on Business In 2016, we created our first human rights risk maps As external and internal environments have evolved, the lens of risk to people, not the business. It is key and Human Rights require a company to for all our businesses: tobacco, pharmaceutical and we have further reviewed our salient issues in 2021. that we as a business pay special attention to all processed food. The maps helped us understand This resulted in the identification of two further salient rights-holders but in particular those individuals “identify and assess any actual or potential potential human rights impacts associated with our issues associated with our own operations, value chain adverse human rights impacts with which operations and activities as well as assist us in the and new business relationships, thus having nine salient that may be perceived as vulnerable. Therefore, we they may be involved either through their development of the JT Group Human Rights Policy. issues in total. prioritize our resources where we have identified own activities or as a result of their business In 2019, our international tobacco business identified Going forward, our plan is to corroborate these salient that the most severe negative impact to people may seven salient issues through an externally facilitated issues with rights-holders on the ground, so we can arise through our business activities.” relationships.” It further states, “Human workshop involving key stakeholders across the better understand and focus our efforts and resources rights due diligence (…) should be ongoing, business. To ensure that our ongoing human rights on those issues perceived most at risk in each market. recognizing that the human rights risks program and due diligence processes already target these salient issues, we have integrated them into our may change over time as the business HRIA and SAQ methodology used locally. These issues enterprise’s operations and operating are now also included in our methodology for identifying context evolve.” Therefore, revising our high-risk countries. This helps the business to prioritize human rights risk map on a regular basis the due diligence process based on where our greatest potential impacts lie. and reflecting changes in our internal and external business landscape is critical. Kyoko Fujita Human Rights Manager, JT We identified nine salient issues at the Group level: 1 2 3 4 5 6 7 8 9 Child Environmental impacts Fair Forced Harassment Health Health Non-discrimination Working labor wage labor & gender & Safety risk & equality hours FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM impacts – HUMAN RIGHTS RIGHTS HUMAN
24 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
S up up p ly ro c G h
T Risk a i J location n
C r 1. Child labor onsume
The international community The challenge of ending child labor worldwide All suppliers sign and are bound to respect remains formidable. The latest global estimates the Standards, which state: has made clear that the indicate that 152 million children are engaged in “Child Labor is prohibited. Suppliers must persistence of child labor child labor globally, accounting for almost one in comply with ILO Convention 138 (Minimum 10 of all children worldwide. Africa accounts for in today’s world is Age Convention) and ILO Convention nearly half of all child labor (72 million children), 182 (Worst Forms of Child Labour Convention) unacceptable. followed by Asia and the Pacific (62 million). if local legislation does not impose more Agriculture employs 70% of children in child stringent requirements. Suppliers undertake labor. Almost half of all of these children work not to source any supplies from providers in occupations or situations that are hazardous using child labor.” to their health and safety. Maintaining the +152m Through our assessments and ALP program, current rate of progress in tackling the issue Children in child labor globally would still leave 121 million children engaged we regularly work with suppliers on how they in child labor in 2025. understand and respect this requirement and agree on remediation measures when gaps Child labor occurs for many complex reasons: or potential non-compliances are identified. from poverty and tradition to a lack of awareness of the hazards of using child labor. We believe JTG has been committed to tackling child +121m that significant progress can only be achieved labor in our four tobacco-growing communities when there is a wider understanding as to how since 2011, through our flagship program – Estimated child labor social, economic, and cultural factors cause Achieving Reduction of Child Labor in Support globally in 2025 child labor to exist in the first place. of Education (ARISE). There is broad consensus that an effective way to stem the flow of school-aged children into ARISE child labor is to improve access to and quality ILO statistics on child labor of schooling. This is in addition to economic empowerment and the proper legislation and the JT Group Supplier Standards enforcement of this. Having the opportunity to ILO Convention 138 invest in children’s education will enable families to recognize that, in the long-term, the returns ILO Convention 182 are greater than those associated with involving children in work. Universal quality education promotes all children’s rights and helps break FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM “We will not end child labor until every child is in
– intergenerational cycles of poverty and reliance on child labor. school, and we will not succeed in ensuring every Eliminating child labor and regulating the use of juvenile labor is an essential element of our JTG child is in school until we eradicate child labor.” Supplier Standards, and we strive to evaluate our suppliers on their practices around recruitment, Kailash Satyarthi age verification, and working conditions.
HUMAN RIGHTS RIGHTS HUMAN Nobel Peace Laureate
25 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
1. Child labor
ARISE – Multi-stakeholder approach
The ARISE program is Brazil, Malawi, Tanzania, and Zambia a multi-stakeholder dialogue and cooperation to address Children enrolled Community members Households Government policies in formal and and teachers educated with improved and plans developed an impact. informal education about child labor income with our input Child labor was identified as a risk, but we knew that we could not fix it alone. 2020 2011–2019 2020 2011–2019 2020 2011–2019 2020 2011–2019 6,358 57,736 328,315 431,350 6,119 17,927 0 74 The business engaged and consulted with relevant stakeholders and built the ARISE program in partnership with the International Labour Organization (ILO) and Winrock International. To date, the ARISE program has directly helped educate over 64,000 children, with 6,358 children placed into formal education in 2020, despite the pandemic. ARISE Total Total Total Total International Labour Organization (ILO) 64,094 759,665 24,046 74 Winrock International
“With ARISE, we have launched and developed over ten years a strong, flexible program to eliminate child labor in our grower communities. FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM – In the future, we will work even more directly with communities to achieve this.”
Stefan Rissi Community Investment Director,
HUMAN RIGHTS RIGHTS HUMAN JT International S.A.
26 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
1. Child labor
ARISE – Multi-stakeholder approach
Key milestones
ARISE partnership between JTG, ILO, and Winrock International marked Learning from the past, Extended role for Implementation of a new the beginning of our child ARISE program Assessment and preparation embedding best practices, Winrock International ARISE model with new local labor elimination efforts launched in Zambia for ARISE Tanzania and driving innovation and ILO's exit implementing partners
2011 2013 2015 2017 2019 2021
2012 2014 2016 2018 2020 ARISE program launched Independent evaluation ARISE launched Increased focus New ARISE model in Malawi and Brazil performed to enhance in Tanzania on livelihoods developed with increased the program and define program responsibility the future strategy for ARISE and accountability for our local business
Project criteria and activities
Pillar 1 Pillar 2 Pillar 3 Alignment
Education Socio-economic Legal with SCDD and awareness empowerement frameworks assessment
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM EARLY CHILDHOOD EDUCATION – LOCAL ARISE PROJECTS COMPLIMENTARY SHOULD FIT UNDER BASIC EDUCATION WOMEN AGRIBUSINESS CRITERIA AND GO HAND IN VOCATIONAL TRAINING GROUPS HAND WITH OTHER GROWER LOBBYING1 FOR ANTI-CHILD RELEVANT PROGRAMS ANTI-CHILD LABOR CLUBS YOUTH PRODUCER CLUBS LABOR POLICY DESIGNED TO AFTER SCHOOL ACTIVITIES MODEL FARMS SCHOOLS SUPPORT FOR THE REVIEW EFFECTIVELY ADDRESS EDUCATION AND SCHOOL DEVELOPING AND OF THE NATIONAL ACTION THE NEEDS ASSESSED – RELEVANT INFRASTRUCTURE PROMOTING MARKET ACCESS PLAN ON CHILD LABOR CHILD LABOR ISSUES HUMAN RIGHTS RIGHTS HUMAN
1 As per local context and capacity. 27 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
1. Child labor
ARISE – Multi-stakeholder approach
ARISE presence COVID-19 ARISE operations were largely halted in all four countries from mid-March to June 2020 but resumed in our African communities by the beginning of the third Br zil Ma awi quarter of 2020. Our partner Winrock International has Successful program initiatives include: Successful program initiatives include: carefully monitored the security and safety situation and, once project activities resumed, enforced preventative • Training child protection workers • Promotion of decent work and the Right Development measures at all activities. These include limitation of • Technical assistance for the development • Support for Community-Based Childcare Centers group size and provision of masks and handwashing of government plans • Vocational skills development courses and facilities to participants. • Training mothers in entrepreneurship, property income-generating activities Despite the COVID-19 pandemic, the ARISE management, and income-generating activities • Community empowerment through Community program adapted and developed iterative Infrastructure Programs contingency plans to continue working for and with ARISE communities to fight child labor. • Teacher education, including use of the SCREAM (Supporting Children’s Rights through Education, Global Child Forum Za bia the Arts and the Media) methodoloogy, which We were recognized as a leader by the supports children’s rights through education, Successful program initiatives include: Global Child Forum, as part of their 2019 the arts, and the media • Developing sustainable village saving groups, which Global Corporate Sector and Children’s improve the livelihoods of vulnerable families rights benchmark study ‘The State of Children’s Rights and Business: From • Partnering with the Ministry of Education to provide Promise to Practice’. This benchmark formal vocational training to selected youths identified analyses just under 700 of the world’s and withdrawn from child labor (the certification is Tanz nia largest companies and how they are nationally recognized) Successful program initiatives include: safeguarding children’s rights as part of • Breaking through strong cultural barriers in • Partnering at the national, regional, and district level their business value chain. We are proud the communities to accept, embrace and own and taking action together on child labor that the study recognizes the concrete the ARISE Program • Increasing workers’ and employers’ organizations actions we have taken to embed respect for capacity to combat child labor in the children’s rights, notably through our flagship Watch video target communities child labor elimination program ARISE. to learn more • Ensuring that community members, including leaders, Read more about the Global Child Forum
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM about ARISE. have increased knowledge, and awarness of child labor – HUMAN RIGHTS RIGHTS HUMAN
28 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
1. Child labor
ARISE – Multi-stakeholder approach
Case study – Malawi: rescued, empowered, and resilient
For 48-year-old “I had no idea what to do and how to do things differently to improve my income,” she stated. “My children and I were eating only once a day because we had no time Philipina Maudzu, to work in our garden. Instead, we were working in the tobacco fields to make ends family problems meet,” continued Philipina. forced her to take Her Grade 3 boy was withdrawn from working in the tobacco fields and enrolled at care of her five the nearby Livulezi school in Ntcheu District. She also enrolled in one of the three Women Agribusiness Groups (WAG) in their community. “I did not object because children alone. I knew it was for the good of our home and children,” responded Philipina when She depended asked how she felt about joining a business group for the first time in her life. on small-scale Alongside fellow women in the group, Philipina farming to earn received training on savings, basic business skills, and “I believe that pig farming production, where she was later selected a living, but this to be the leader of the group. “In the group, I learned did not give her most men and record keeping, marketing, and how to plan my enough time women can business,” she recounted. to take care She later took a loan from her WAG in 2018 and improve their started low-level petty trading where she was of her children. supplying fish and tomatoes in Muuso II village. lives and that She was also given one pig by the WAG. In 2019, she managed to make a profit of MK 195,000 of their (194 USD) from her petty trading. Further, she now owns a total of six pigs. “I can eat three times a day, 78 families if and I have managed to pay school fees for my three Village Savings and children in secondary school. My child who was Loans groups they are withdrawn from child labor is now in standard 6,” she explained with joy. involved Philipina’s children no longer work in tobacco fields, and she is a role model for other women FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM in small in Muuso II village. – businesses.” ARISE has helped establish over 78 Village Savings and Loans groups with close to 1,200 participants in Dowa, Ntcheu, and Lilongwe districts. Philipina Maudzu Community Investment Director Read more case studies on ARISE website. HUMAN RIGHTS RIGHTS HUMAN
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In recent years, the recognition of the Our approach follows 7 steps: links between human rights and the environment has greatly increased. 1. Identify environmental We know that action now to safeguard risks and opportunities environmental services and tackle climate change is the action that places 2. Implement effective value on the future fulfillment of human Environmental issues rights. We all need to address these environmental are of increasing global issues and, as a global organization, management systems concern and have brought we recognize that we have a key role in reducing our environmental impact. 3. Assure compliance in many challenges to our countries and regions society. Climate change, We have a two-way relationship with the environment. where we operate biodiversity loss, and 1. As with any organization, our activities pollution have profound impact the environment: the resources 4. Manage change negative impacts on (energy, water, materials) that we use, associated with people globally. A healthy our emissions, and the waste that our business we generate. environment is essential to the full enjoyment of a wide 2. The environment impacts our 5. Consider our value operations. Our primary raw material chains, and engage range of human rights. as well as many of our other non- tobacco materials (e.g., card, paper) with suppliers and are agriculture-based. service providers We strive to reduce the environmental 6. Improve awareness impact of our operations and supply chain, focusing on the most significant and competency among environmental risks and opportunities for employees about our business and stakeholders. These FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM environmental issues
– currently include climate change, water, the sustainable use of resources, and responsible waste management. 7. Engage with All actions related to the environment our stakeholders are guided by our JT Group Environment Policy.
HUMAN RIGHTS RIGHTS HUMAN JT Group Environment Policy
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2. Environmental impacts
JTG environmental Water and waste Case study – Case study – commitments Recognitions for our greenhouse gas emissions reduction The water required for tobacco crops WASH Initiative In addition to comes predominantly from rainfall. Our efforts to address climate change are recognized Our factory in Jordan was awarded the ‘Environmental However, our operations and processes Access to clean water and sanitation is vital and a basic human reducing our externally. In 2020 we were included in the ‘A List’ Stewardship Award’ by the World Bank, as the first need water, even if solely for drinking and right. Many of us take it for granted that we have clean water greenhouse gas by CDP Climate Change in recognition of our leading tobacco factory in the world to use direct solar steam sanitation. Therefore, water is an essential available at the turn of a tap. However, in many of the countries emissions, we position in managing climate-related risks and generation. A rooftop-mounted collector, steam resource in our manufacturing supply where we operate, water is a scarce resource. That is why we have opportunities. storage, and a steam-driven absorption chiller provide chain. But good water stewardship is not launched the Community Investment in Emerging Market WASH focus on reducing The JT Kansai factory (tobacco manufacturing) the site with energy and building heating and cooling. just about reducing the amount of water Initiative, which aims to help one million people access water, the amount of received two awards from Kyoto City and the Kyoto The solar steam installation provides approximately used. It is about the management of water sanitation, and hygiene (WASH) facilities by 2025. water we consume, prefecture government for its emission reduction 20% of the factory’s steam demand, with a reduction resources. Our approach to management WASH is a focus for JTG because it is a key development issue in CO emissions of approximately 100 tons per year. of water-related issues was recognized reducing the initiatives. The factory is proactively tackling the 2 where we can make an impact on improving the lives of people reduction of greenhouse gas (GHG) emissions by We continuously strive to further reduce our with a place on CDP’s 'A List' in relation through focused and scalable projects. The program is being amount of waste implementing projects such as high-efficiency freezer environmental impact by combining technology-driven to Water Security in both 2019 and 2020. funded by reinvesting money from our well-established markets we generate installation and eco-friendly compressor use. innovation with the Japanese philosophy of Kaizen, From a societal and stakeholder perspective, to emerging or developing markets, where the need is greater. waste, and particularly plastic waste, is from our own In December 2019, Nihon Syokuzai Kakou, a meaning ‘continuous improvement’. Over the next five years, we will invest up to USD 15 million in subsidiary of our processed food business, was of increasing concern. From a business the WASH Initiative. This is key to our Corporate Sustainability operations, selected as a leading company and awarded by perspective, all waste has a direct cost Community Investment 2030 target of USD 600 million to help and ensuring a the government of Miyazaki prefecture for its effort (handling and disposal) and an indirect cost build more inclusive, resilient, and sustainable communities. to reduce GHG emissions. (resource and processing costs, etc.). Across sustainable wood the company, we apply a ‘Reduce, Reuse, Watch the video supply for our Recycle’ approach. We also set targets for about WASH. tobacco growers. waste reduction as we believe that reducing waste helps conserve resources, which in turn helps to minimize our environmental impact and cut business costs. 4 We are in the early stages of our journey towards full circularity. However, we already Long-term projects have been successfully launched to date demonstrate a circular approach at many stages of our value chain. These include 2 in Bangladesh 1 in Ethiopia 1 in Mexico recycling tobacco waste into fertilizers Partnerships Partnership Partnership for use by our growers, reusing cardboard Habitat for Humanity Habitat Habitat Bangladesh for Humanity for Humanity packaging between our operations, and and Swisscontact Ethiopia Mexico FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM reducing the amount of plastic in our
– Bangladesh make-your-own packaging in Germany. We have recently announced new targets to improve the recyclability of our beneficiaries with access to packaging and to increase the recycled clean water and sanitation content of our packaging materials. 300,000 HUMAN RIGHTS RIGHTS HUMAN
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2. Environmental impacts
Wood production and forest conservation Our target Case study – Wood is a critical resource for our tobacco supply chain Contributing to forest To replace all wood from natural forests used in the to be sustainable in many countries. It is used for barn rehabilitation in Brazil tobacco curing process of our directly contracted building and as fuel in the curing process as well as for growers with renewable fuel sources by 2030. 300 domestic purposes. It is important that we play a role in JTI Brazil has partnered with the Wildlife Research What we are doing: Hectares of permanent ensuring that the natural wood is protected and that our and Environmental Education Society to restore over protection areas forestry practices for wood production, management, 300 hectares of permanent protection areas in • Through our Agronomy Development and Extension restored in Brazil and conservation across our business are sustainable Brazil, with funding from the National Bank for Training (ADET) centers, we have developed the and responsible. Socio-Economic Development. These areas Minimum Forestry Standards (MFS) – a set of Ensuring a sustainable wood supply and further include land owned by tobacco growers and part Forestry specifications and guidelines designed contributing to forest conservation and rehabilitation of the Irati National Forest. The restoration work to achieve sustainability of wood supply for tobacco are key objectives set out in the JT Group started in 2018. In Irati National Forest, 35 hectares production and curing. When well adopted by growers, Environment Plan 2030. of pine trees were replaced by native species to MFS result in improved tree seedling production and quality, and woodlot establishment with improved We do this by proactively working to improve the help restore the natural landscape. The project also productivity potential. This approach brings us closer management of natural resources throughout our involved the training of 33 local college students to achieving sustainability in the wood supply, helps supply chain and tobacco-growing communities. in ecological restoration. avoid deforestation, and improves the conservation JTI Brazil defined priority areas in Our Agroforestry Programs address sustainable prospects for natural woodland. forestry, wood use, and management. strategic river basins, based on • Another innovation that was developed and further In Malawi and Zambia, we factors such as soil, rain, and improved at ADET in Zambia is the Matope (mud) barn. encourage growers to build ‘live proximity to other projects, This more fuel-efficient curing barn reduces wood barns’ by planting trees that to create green corridors consumption by up to 75% and carbon emissions will form the main structure (strips of land with sufficient accordingly, compared to its predecessor (the of a Burley curing barn habitat to support wildlife) ‘Pepper Pot’ barn). This is an important improvement, within three years. connecting different as emissions associated with curing tobacco leaf This helps conserve regions. One of the represent the largest single source of indirect GHG vital wood resources first sites we selected emissions for our business. and reduces grower was the Taquaral barn maintenance river basin in • The number of Matope barns installed by growers efforts and costs. Parana State. The in Zambia are the following: over 1,300 units in 2018, local business 1,884 units in 2019 (32% cumulative coverage), We also contribute to introduced the 1,704 units in 2020 (43% cumulative coverage). forest restoration and project through a The target is 100% Matope barns coverage rehabilitation, collaborating series of mobilization by 2024. Based on the 2020 sustainable tree FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM with NGOs, universities, and
– meetings attended by 200 planting activities in Tanzania, Zambia, and Brazil, independent experts. By local growers. The partnership we estimate that the business is on a path to encouraging a sustainable wood provides growers with technical assistance achieve 41% renewable wood sourcing by 2027 supply for our operations and the communities and support before and after the restoration work (accounting for 7 years wood production cycle). we work with, we have a better chance of a sustainable begins. The team in the market is committed future for the environment and our company. to protecting and restoring natural forests and JT Group Environment Plan 2030 supporting local communities. HUMAN RIGHTS RIGHTS HUMAN
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“Although there is no universally accepted amount that defines such “One of the fundamental human rights is remuneration, it can be described as a wage from full-time work that allows people to lead a decent life considered acceptable by society,” the right to a just remuneration that ensures says ILO senior economist Patrick Belser. We believe this includes adequate food, clothing, housing, and medical care for themselves and an existence worthy of human dignity. their families together with a small amount of discretionary income. Numerous NGO and media reports cite concerns about the The preamble to the Constitution of the tobacco supply chain’s management of wages and working hours. As can be seen from our case study, there are growers International Labor Organization (ILO) who have difficulty paying workers on time, where wages can be low, and problems with indebtedness. These practices are identifies the provision of an adequate living endemic in the tobacco-growing industry but are particularly acute where we don’t have a direct relationship with the wage as one of the conditions for universal growers or their employees. Processing and manufacturing roles, particularly in high-risk markets and areas, also carry and lasting peace based on social justice.” an inherent risk of low wages and long hours due to the degree of informality and low skills these jobs may require. Patrick Belser Our Supplier Standards do not currently call for a living ILO senior economist wage but stipulate minimum standards for remuneration, and that remuneration must comply with local legislation and international conventions. While our Agricultural Labor Practices (ALP) program includes initiatives at the agricultural and supply chain levels to promote payment of a fair wage and respect for working hours, one of the areas that we will be looking at in the future is how local JTI entities can introduce more formalized policies and processes that address the levels of wages and working hours at our direct growers while also helping growers in our wider value chain to do the same. This may include informing ourselves of the current wage gap between the actual wages of the lowest-paid and the rural living wage
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM per region and the tools we can deploy to help our – growers and suppliers progress towards payment of a fairer wage. JT Group Supplier Standards HUMAN RIGHTS RIGHTS HUMAN
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3. Fair wage
6,614 Enhancing grower livelihoods in Zambia Integrated production system maize, groundnuts, or soya on the same land future crop yields and further increases Growers under contract with In 2019, JTI Zambia undertook an assessment of JTI Zambia is committed to helping our in alternate seasons. The benefits of this are our grower’s income. Due to the success JTI Zambia workers’ rights on its directly contracted growers’ farms growers earn as much income from their additional income, improved food security, with groundnuts in Zambia, the local team in Zambia's Eastern and Western provinces. While this available hectarage as possible. JTI Zambia and soil conservation. is now exploring partnerships with market assessment found significant improvements in relation directly contracts 6,614 small-scale growers To develop this concept further, we introduced off-takers of other non-tobacco commodity to child labor and the provision of Personal Protective (production area ranging from 1-3 hectares). the Market Match program that links our crops and hopes to trial these at the local Equipment (PPE), it also highlighted some wages These growers are contracted to grow a contracted growers to viable global market ADET facility soon. for farm workers and a lack of written employment customized tobacco crop under our local off-takers of non-tobacco commodity Next steps contracts for those workers as areas of further focus. 62 stewardship and are required to follow Good crops. JTI Zambia spent the last two years Subsequently, a recommendation was made to conduct Agricultural Practices and our Minimum conducting groundnut field trials at its While we are proud of the work that is JTI Zambia Agronomy Technicians a more detailed assessment to better understand these Agronomic Standards (MAS). In return, they Agronomy Development and Extension being done locally to help growers become issues, and in 2020 we commissioned twentyfifty Ltd., receive credit for prescribed crop inputs Training (ADET) facility with a pilot group more profitable, we are conscious there is an internationally recognized human rights consultancy, (e.g., seed, fertilizer, Crop Protection Agents, of 713 growers in partnership with a large more that needs to be done, particularly to undertake a Grower Livelihoods Assessment in and PPE) as well as dedicated extension groundnut off-taker based in the United with farmworkers. The Grower Livelihoods carefully selected pilot communities in Zambia from service provision from our Agronomy Kingdom. This partnership has flourished, Assessment found a positive correlation where we source tobacco leaf. Technicians. This support includes and JTI Zambia has received positive between spending on workers and net income 87% recommendations delivered through a feedback from both the off-taker and our from tobacco. If a grower receives more The Grower Livelihoods Assessment scheduled visitation program for the duration directly contracted growers. JTI Zambia income from tobacco and other crops, it does Growers average yields and income of the crop cycle. JTI Zambia has a team of now has 1,895 growers participating in this not necessarily lead to higher wages for their involved 184 grower interviews and engaged increase since the introduction 62 Agronomy Technicians who look after program and has plans to increase grower workers. A more equitable solution also of an Integrated Production 291 people from our growing communities approximately 107 growers each. By enabling coverage from 28% in 2021 to 50% for the needs to be found to ensure workers receive System in Zambia through focus group discussions. growers to become more productive and 2022 crop year. a living wage. JTI Zambia is exploring ways efficient in growing, harvesting, and curing of using leverage with its contracted growers What JTI Zambia found was that the directly contracted In collaboration with the groundnut off-taker, tobacco leaf, JTI Zambia supports them in to encourage them to pay their workers growers were on average earning well above a rural JTI Zambia provides input packs consisting becoming more profitable. The economic a fair wage and ensure written employment living income of 14,000 Zambian Kwacha per annum of seed and inoculant to the growers, and the benefit for all the directly contracted growers contracts are in place. JTI Zambia has and that a significant proportion of our growers’ income groundnut off-taker delivers comprehensive who fully observe our local MAS program is also established a task force to look into was non-tobacco-related (50% in Eastern province and training on groundnut production to our significant. Since introducing an Integrated allegations of discrimination against migrant 30% in Western province). It also became apparent that Agronomy Technicians, who then deliver Production System in Zambia, our contracted workers in Eastern province. the training to our growers. After harvesting, more income does not always mean a better standard growers have seen their average yields and
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM the groundnuts are delivered to our buying of living, and that the revenue we create within our income increase by 87%. – growing communities does not always lead to poverty stations and are graded by the off-taker, alleviation. Other poverty indicators such as a lack of Market Match and shipped to their central facility before access to basic services and low levels of education export. Market Match in Zambia has delivered The farming practices we apply in partnership play a much more significant role. on average an additional income of $439 with our directly contracted growers are per hectare, not to mention the agronomic not limited to tobacco. We encourage our benefits derived from crop rotations and growers to use seasonal crop rotations, improved soil fertility, which in turn improves
HUMAN RIGHTS RIGHTS HUMAN i.e., growing complementary crops such as
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3. Fair wage
Case study – Tenant farming in Malawi
The legacy tenant farming system is Tenants often originate from some of the most In 2020, the Decent Work Committee was established to JTI Malawi has a commitment to work towards growers vulnerable communities and districts in Malawi, often design and implement farm labor management systems removing tenancy from the supply chain. By September prevalent in small-scale agriculture in landless families or individuals with high vulnerability that ensure ILO Forced Labor Standards are being 2021, the local team is quite confident that all growers Malawi and can lead to conditions for and low resilience in their home districts. These managed at the farm level and are well documented. who have farm workers will have written employment potential exploitation of tenants and challenging conditions contribute to the migration The committee identified four initiatives that we believe contracts in place. of people seeking employment opportunities. Some can help us and growers tackle these issues as follows: According to a recent study by the Centre for Social their families by the landlord. These risks potential tenants borrow money or save to be able to Concern (CfSC), tenants provide the largest labor include poverty pay and indebtedness, travel and seek tenancy opportunities, others are funded 1. Transition tenants onto employment inputs on tobacco farms in Malawi, accounting for by middlemen or landlords. Many tenants enter the hunger, and at times verbal or physical contracts with growers using a 63% of the required labor force to produce tobacco system expecting it to be a short-term solution to their and prepare it for sale. abuse under practices that amount economic challenges, but some remain as tenants for template that satisfies the Malawi to forced labor. longer than planned. Employment Act, such as pay above With an estimated 1.5 – 2 million people working in tobacco cultivation in Malawi, this equates to minimum wage the potential of around 1.3 million tenant growers. The scale is significant and will take many years Tenant growers 2. Implement a fair and transparent to understand and resolve. wage system that provides workers JTI Malawi’s progress in eradicating Farming families are given access to land by sourcing from landlords using tenants a landlord through a contract (usually verbal) with payslips and documents proof of and transitioning tenants onto wage to cultivate tobacco for the landlord to payment from the contracted grower and employment contracts is a big sell to a tobacco manufacturer or through step forward. an auction. Tenants may come from 3. Run a series of workers’ rights local communities but are more likely to awareness campaigns There are also concerns that immediate be migrants from other areas of Malawi. abolition could cause further harm Landlords provide different levels of support in that target employees, to tenants who are some of the most the form of basic food, household rations, and contracted growers, vulnerable people in the country. healthcare during the growing season. The and their workers Abolishing the system without tenant is provided with accommodation, a viable alternative solution although in many cases is required to risks leaving tenants in a worse build their accommodation in or close 4. Revise the position than before. The local current grievance team is conscious of this and FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM to the field for crop security. Once the
– tobacco has been sold, a payment mechanism to better working with rights-holders, NGOs, relates to the tobacco produced for a government, and public bodies to predetermined price (there is a tenancy target farm workers and formulate solutions. pricing system set out in the industry collaborate with District regulatory framework) with deductions of Labor Offices on-farm for rations and other items. labor inspections HUMAN RIGHTS RIGHTS HUMAN
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According to the International Labor Organization (ILO), Case study – Extreme Breach procedure approximately 40.3 million people live in modern slavery, and of these, 24.9 million people are in forced labor, Extreme breaches are the worst violations of workers’ rights with 15.4 million people forced to work under threat such as slavery, forced labor, worst forms of child labor, human or coercion in the private economy worldwide. trafficking, violence, or severe physical, mental, or sexual abuse. We do not tolerate modern slavery in any The concept is based on ‘protect the victim and rapporteur’ principle and focuses on topics that an Agronomy Technician of its forms, such as forced labor, slavery, should not discuss with a grower but report via a secure servitude, and human trafficking, and we mechanism in case of suspicion that an incident exists. are committed to tackling it through a range Starting the concept in 2017, we shared a guidance document of initiatives, including our global human across the leaf supply base and held a series of webinars on rights of workers and extreme breaches to ensure our rights program. suppliers understand the new procedure. We also explained the In 2021, we published our fifth Modern Slavery Act management process of how to respond to an extreme breach Statement approved by the Board of Directors at JTI to ensure that action is taken promptly and appropriately when UK and prepared in accordance with Section 54, Part 6 indicators of an extreme breach are observed. The three key of the Modern Slavery Act 2015 by JTI UK. It sets out elements that are included in the extreme breach management the steps taken to respect human rights and prevent process are the following: modern slavery in our business and supply chain. The Modern Slavery Act reporting requirements apply 1. Protection for the victim and observer to the UK, but the whole of JTG abides by the principles set out in the Statement. 2. A clear escalation route and ILO statistics on forced labor remediation plan JTI UK Modern Slavery Act Statements 3. Access to specialist support We expect each supplier to have in place an extreme breaches management process that incorporates these three elements. FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM – 24.9m People in forced labor HUMAN RIGHTS RIGHTS HUMAN
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4. Forced labor
Responding to an Example of an Extreme Breach management procedure extreme breach Each supplier needs to establish a process for responding to observations or indicators 1 2 3 4 5 6 of extreme breaches. The supplier should Observe Determine if single or Identify external Agree a response Develop remediation Track train its Agronomy extreme breach multiple instances support required plan with the plan with remediation Technicians and others General Manager external parties who visit farms on Contact list of extreme breaches and authorities and others the management process to respond to them.
6 hours 72 hours 14 days
“When working together with our contracted growers and Driving change throughout the industry The Extreme Breach process is in place to add an The Extreme Breach concept was developed uniquely additional mechanism to our existing ALP and SCDD leaf merchants, we are focused on continuous improvement. by JTI with the support of twentyfifty Ltd. Since 2017, concept to ensure that any unacceptable practices are we have been working on integrating this concept to all looked at with special attention and that both potential But there are issues that are simply not acceptable in our leaf our third-party leaf suppliers and JTI local entities. We victim and rapporteur are protected. want to create systemic, transformative change in how twentyfifty Ltd. supply chain, such as any form of slavery or human trafficking. people are treated and share this concept more widely. In 2020, the Extreme Breach concept
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM Our Extreme Breach procedure is one of the tools to support was accepted by the Sustainable Tobacco – Program (STP)1 members and embedded the entire supply chain in the best effort to eliminate or in the Human and Labor Rights section prevent negative human rights impacts.” of the STP. It has now become an integral element of this industry-wide program. Vuk Pribic
HUMAN RIGHTS RIGHTS HUMAN Leaf Supply Chain Due Diligence Director, JT International S.A.
1 Sustainable Tobacco Program (STP) is an industry-wide platform enabling businesses to collaborate on human rights and environmental issues. 37 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
4. Forced labor
Reducing the risk of exploitation of workers in the supply chain by recruitment and employment agencies As stated in the ILO C181 Convention of 1997, workers should not be charged recruitment fees nor any related costs for finding work – ILO General principles and Case study – Migrant workers in Japan operational guidelines for fair recruitment and definition of recruitment fees and related costs. Migrant workers are especially vulnerable to exploitative recruitment Japan’s Technical Intern Training Program was and employment practices. When recruitment fees are further sensitized to the risk of forced labor by a charged, workers often end up indebted to the recruiter recent US Trafficking in Persons Report. This material or the employment agent. In addition, failure to repay is especially relevant to our processed food business, these fees can have severe consequences whereby where the majority of our non-Japanese employees workers can be exploited by the employer, for example, work. The local business employs technical intern through working long hours or having wages deducted. trainees in very small numbers, as well as overseas These debts coupled with job and residency insecurity students indirectly, who have also been classified leave foreign and domestic migrant workers particularly as vulnerable workers. vulnerable to modern slavery. Our Japanese headquarters has improved the local Through our remote human rights due diligence in 2020, corporate guidelines that apply to all subsidiary we have been working to extend the requirement that companies of Japan operations. The aim is to address suppliers adhere to the ILO core labor standards and the potential risks related to migrant workers, identified strongly prohibit third parties from charging recruitment as the most vulnerable group through our HRIAs. fees. Ensuring responsible recruitment and employment The number of migrant workers in Japan has practices protects migrant workers before they leave increased rapidly in the past few years, accelerated by their country of origin to be less vulnerable at their the revised immigration law. Consequently, there was destination. Eradicating recruitment fees for migrant a need for common guidelines regarding the hiring workers is a core part of protecting the global workforce and labor management of migrant workers across all from modern slavery. business units in Japan, in alignment with international In South Africa, Colombia, and Morocco, the business norms and the UN Guiding Principles. identified third-party recruitment and employment Guided by JT Group Human Rights and Supplier
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM agencies that did not include a clear prohibition clause Standards policies, the local business has prioritized – to charge recruitment fees. In these markets, we are its engagement with employed migrant workers working to drive greater awareness of the JT Group through ongoing HRIAs, SAQs, and direct interviews. Supplier Standards and ensure specific clauses are To date, no incidents of forced labor have been inserted into contracts that prohibit the agency from reported, but we remain vigilant to the possibility, charging illegal recruitment fees. especially in our extended supply chain. ILO C181 Convention HUMAN RIGHTS RIGHTS HUMAN
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At JTG, we embrace diversity and promote a safe and inclusive The four types of harassment displayed in the videos were the workplace where everyone can be themselves at work without following: sexual harassment, moral harassment, disrespectful risk of discrimination or harassment. behavior, and abuse of power. While identities, places, and all personal details were changed for confidentiality reasons, Our Code of Conduct clearly states our zero-tolerance the videos were inspired by real JTI cases to give employees approach to harassment. Disrespectful behavior the opportunity to put themselves in the shoes of someone and harassment of any form are against JTG values, experiencing a difficult situation at work. With subtitles in 25 languages, the videos are available to all and we have a duty to ourselves and one another employees and have proven to be an effective tool. to act if something is not right. Compliance and Employee Engagement Survey JTG is committed to create and maintain a workplace that is free of harassment in any form, where the company and In our Japanese operations, we conduct a Compliance survey its employees respect one another’s integrity and dignity, every year to check and monitor workplace status about 86% the privacy, and the right to equity in the workplace. Compliance. In 2020, the survey results showed that Harassment (including sexual harassment and bullying) is one of the most JT Group employees think that employees We continue to provide training on Harassment Prevention important concerns for employees. We will continue to make are treated with respect in their local to employees. In our Japanese operations, JT and all subsidiary every effort to improve the situation by providing support and organization regardless of their job companies have been updating the Harassment Guideline to training to employees. meet the standard of the latest Japanese law. In addition, we have provided online harassment training courses for employees, An employee engagement survey was undertaken at our and 99.8% of employees have completed the training in 2020. international tobacco business in 2018. Harassment was not identified as an issue. The survey showed that 86% of employees As part of JTI’s continuous efforts, a global harassment training think that employees are treated with respect in their local curriculum was rolled out in 2020. This addressed various forms organization regardless of their job and that 90% of employees of harassment through four videos and guided employees on think that people in their work environment behave in a manner how to address this sensitive issue. consistent with the company Code of Conduct. We take the risk of harassment seriously. We endeavor to ensure that there are measures in place to prevent incidents of harassment arising. This
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM provides employees with assurance that if they feel – they are the victim of harassment, there are adequate mechanisms in place for them to alert us so that these incidents can be investigated and, where appropriate, remedy can be provided. HUMAN RIGHTS RIGHTS HUMAN
39 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
5. Harassment and gender impacts
Case study – Ethiopia
During the Human Rights Impact “I had several incidents that Response from JTI Ethiopia: “We already see the benefits Assessments (HRIAs) and Supply Chain I was afraid to tell anyone. • Your Voice reporting concerns mechanism and of these efforts. Changing Impact Assessments (SCIAs), the focus on I feared retaliation and Code of Conduct campaigns were organized for the mindset of employees all employees, particularly in our tobacco-growing vulnerable groups is paramount. We seek losing my job. But it’s a operations. They included a focus on zero tolerance towards our purpose was to identify how different rights-holders, different story now. I am with regards to harassment in the workplace. crucial. We had to showcase particularly women, may be experiencing able to open up and share • All employees were trained in small groups and and gain the full belief of negative human rights impacts due to not just an incident but provided with locally adapted booklets. employees that we cared. systemic and structural issues around general feedback I have. • JTI Ethiopia conducted Employees have started meetings with the Labor Union discrimination and gender norms. I’m also very happy to to ensure full alignment. to talk about this problem. Findings from HRIAs in 2019 see colleagues from the • In addition to the Your Voice In the past, it was taboo. reporting concerns mechanism, Gender discrimination and violations of women’s rights women association talking Now, women share with less JTI Ethiopia implemented are unfortunately not uncommon in Ethiopia and also to us, asking us about our a local grievance procedure fear. This foundation led occur in the agricultural sector and in tobacco growing wellbeing and anything designed for daily workers. to an openness to change and processing. During an on-site impact assessment The speak-up channel of JTI Ethiopia’s operations in the country in 2019, it we need in our work. at an individual level and encourages daily workers to was found that there is a high risk that women’s rights They support us. And now raise any workplace concerns a cultural shift throughout and health may be harmed with sexual harassment it’s easier to communicate. in confidence and without fear. the organization. It is a and gender discrimination identified as particular risks. A reluctance to report these potential issues to We are pleased that the • Local management assigned long journey that requires supervisors or Human Resources was also identified company brought these specific responsibilities for a cultural shift for both men due to cultural and accessibility burdens. managers and supervisors things. We feel supported to prevent occurrences and women, and we have and protected.” of harassment. started building the base.” • A training program was Bezawit Bogale developed for supervisors on the Hristina Kancheva Working in different roles for JTI Code of Conduct and Your Voice. People and Culture Director for JTI Ethiopia, speaks Ethiopia over 8 years on progress made in our quest to promote gender FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM • JTI Ethiopia created a women equality in our operations in Ethiopia – association focusing on human rights and gender equality. • As part of the ongoing efforts in this respect, a further Your Voice training was delivered in Ethiopia in May 2021. HUMAN RIGHTS RIGHTS HUMAN
40 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
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In line with our vision of zero workplace injuries, endemic diseases, we also have a number of initiatives This approach enabled us to identify the highest our global health and safety mission is to provide in place to support their wellbeing. risks to our company and making them the priority leadership in the development and implementation of We recognize that healthy employees promote a high for the development and implementation of policies, global standards and programs to properly manage performance both for themselves and our business. guidelines, and controls. and mitigate health and safety risks arising from our One example is the BeWell program, running at our business activities, build awareness, and develop St. Petersburg factory since 2016. This program has 1. We have set up a governance a sustainable safety culture across the business. reached some 1,300 employees and is focused on structure to monitor the maximizing an employee’s potential, improving financial implementation of policies We focus on creating safe workplaces, literacy, encouraging a healthy lifestyle, and promoting building safety competence, and developing a sense of community and belonging. and procedures. a group-wide safety culture. COVID-19 2. We have fostered an agile approach Our standards on health and safety usually exceed with increased collaboration legal requirements, and their scope extends beyond In 2020, responding quickly and effectively our employees to cover contractors and visitors to our to the Coronavirus pandemic has been across risk functions using new operations. Our wellbeing programs often also include our top priority. We have taken every technologies and tools. employees’ family members. possible measure to ensure the safety We have processes in place to identify and minimize 3. We have ensured a constant flow of risks, prevent incidents, and continuously improve of all our employees, their families, and information provided to employees. safety. We work to prevent occupational health the communities, in which we operate, In addition, our international tobacco business hazards such as exposure to noise, dust, hazardous while mitigating the potential disruption chemicals, and ergonomic risks. We make sure that offered online health and safety training to more than health and safety standards are respected when to our business. 7,500 people. We provided extra training on specific risk assessment and control measures for 590 health designing work processes, machinery as well as The pandemic has increased our safety exposure, and safety leaders. This training was also available in the organization of work. as the organization focused on COVID-19 and reduced to employees at a higher risk of exposure, including the attention given to other areas of risk. Despite We ensure healthy work environments by members of salesforce, cleaning and hygiene staff, the challenge, we have been able to improve our setting up specific microclimates and and security guards. monitoring them. This typically includes air safety performance. quality, temperature, and humidity, as well Since the outbreak of the COVID-19 in December 2019,
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM as making sure that proper lighting is a number of different measures have been implemented
– provided, based on the tasks to be carried to reduce the impact of COVID-19 on our employees, out. We also promote safe and healthy contractors, and the communities in which we operate behaviors through dedicated training and ensure our business continuity. 7,500 and communication campaigns. We have taken a risk-based approach, considering the We run different programs to help protect following: the level of exposure to COVID-19, infection Employees that followed the health of our employees while at work. growth rates, local operations structure, state of medical the health and safety training online In addition to protecting them from HUMAN RIGHTS RIGHTS HUMAN infrastructure and facilities, and national regulations.
41 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
6. Health and safety
Prioritizing mental health LifeWorks App and health portal site Pep Up1 The coronavirus is not only a risk for our The LifeWorks App and health portal site Pep Up provides our employees with an interactive tool with physical health. It also affects our mental easy access to keep up to date with the latest news, wellness content, and guidance: articles, videos, health and emotional wellbeing. It is and podcasts on body, mind, personal finances, relationships, and work. normal and understandable that people are During 2020, we have also worked on the development of our Health and Safety (H&S) Academy, experiencing fear, anxiety, and stress in the a tool that will provide a consistent solution to clearly defining H&S competency and capability context of the COVID-19 pandemic, and it requirements within JTG and it will also deliver effective H&S training and development programs is paramount that we as a company ensure while ensuring continuously improved H&S competencies and capabilities within the organization. our employees are in the best emotional Our ability to ensure safe workplaces of all kinds, from farms to factories and beyond, is key to health at this challenging time. building a sustainable future. Our programs support employees to Our approach to health and safety is inherently intertwined with our sustainability approach. Providing address the challenges they face at work a safe, healthy, and comfortable working environment leads to happier, more engaged, and ultimately and home. Employees can access a wealth more productive people. This has a knock-on effect on communities in a more general sense, reducing of wellbeing resources and personalized the burden upon society. wellness programs and tools while forming communities and giving back to society. Whether it is in our offices, our warehouses, or on the fields of theobacco t growers we work with, safety is of the utmost importance to us. For this reason, we aim to build a future in which workplace injuries are considerably reduced. LifeWorks Employee Assistance Program1 Target on recordable injury rate reduction (baseline year: 2015) LifeWorks EAP is a confidential support service that can help our employees and up 2023 2030 to five members of their family address a wide range of life issues and challenges. It provides generic information on mental, physical, emotional, and financial wellbeing with 24/7 access to phone consultations for work-life strategies, referrals to counseling, and
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM connections to community agencies.
– It is a free, confidential, and voluntary service offered outside the office environment and available 24/7/365. 25% 50% HUMAN RIGHTS RIGHTS HUMAN
1 This applies to our international tobacco business. 42 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
6. Health and safety
“I feel a great sense of pride in what we have achieved this year. As much as 2020 has been about change and adapting to the waves of the COVID-19 epidemic, Corporate H&S remained focused on protecting our employees, their families, and the communities in which we operate. As we move through and out of Our health and safety performance as a Group COVID-19, we will continue focusing our efforts in managing and mitigating H&S-related business risks, Our recordable injury rate has declined 58.9%, from building awareness, and developing a sustainable safety culture across the JTI business.” 0.72 in 2015 to 0.30 in 2020. In 2019, our international 58.9% tobacco business recorded a Global Recordable Injury Alicia Olo Martinez Recordable injury rate (RI) rate of 0.27, one of the best in our industry and decline from 2015 to 2020 Director, Global Health and Safety, JTI one of the lowest among our fast-moving consumer goods peer group. We regret that 3 employees died as a result of work accidents in 2020. We learn from every accident and 2015 2016 2017 2018 2019 2020 2015–2020 evolution remain committed to achieving zero fatalities.
Employees 1 2 0 1 1 3
Number of fatalities
1 Contractors 1 2 0 0 0 (only JTI)
Lost-time injury rate Employees 0.34 0.39 0.37 0.24 0.23 0.16 (per 200,000 working hours)
Occupational illness rate1 Employees 0 0 0.08 0.02 0.01 0.37 (per million working hours)
% of cigarettes and tobacco-related factories 78.9% 77.8% 74.4% 76.9% 79.5% 70.0% certified to ISO 45001 (OHSAS 18001)2 FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM – Number of vehicle accidents3 1,122 1,151 66 85 71 64
Vehicles accident frequency rate3 4.84 3.87 0.23 0.21 0.16 0.19 (excludes property damage, accidents per million kilometers) HUMAN RIGHTS RIGHTS HUMAN
1 Data scope: 2015: only JT. 2016 and 2017: JT and Japanese domestic Group companies. From 2018: the entire JT Group. 2020: the increase from 0.01 in 2019 to 0.37 in 2020 is due to COVID-19 work related cases. Read more about our data scopes and external verification. 2 Data scope: 2020 only JTI. 43 3 The number of vehicle accidents and the vehicle accident frequency rate in 2015 and 2016 include damage to property, because the data is not available in our international tobacco business. The data in 2015 covers only our international tobacco business. From 2016, it covers JT and JTI. CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
6. Health and safety
Case study – Driven by safety6
The number of deaths on With a fleet of more than 24,000 vehicles operating in more safety policy and implementation guidelines across our than 67 countries and over 300 million kilometers driven in international tobacco business, requiring all local offices the world’s roads remains 2020, driver safety is a key concern area for JTI. Increased to conduct a risk assessment to identify high-risk drivers Driver safety severity rate numbers of drivers and riders, poor road conditions, and send periodic progress reports and action plans to (per million km driven) unacceptably high, with an sub-standard vehicle maintenance, poor driver training our headquarters in Geneva. Given the growing number of and overall traffic conditions, including driver behavior, female employees, the policy now also includes maternity estimated 1.35 million people result in an increased number of incidents and fatalities. protection. In 2020, some 1,450 drivers and riders benefited from the Driver Safety Program. We have been implementing a motorcycle safety program 0.34 dying each year. Work-related in countries with a high vehicle accident rate (Zambia, Our driver safety high severity rate (per million km Malawi, Tanzania, Bangladesh) since 2016, and we driven), which covers road accidents with human incidents make up 25% – 30% have since achieved a 50% reduction in work-related impact, has declined in 2020 to 0.11 (from 0.19 in 2019), injuries. Furthermore, in 2019 we rolled out a new driver as shown in the graph to the right. of the road toll worldwide,
rising to 50% if commuting 0.23
0.21 is included. 0.20 0.19
0.13 +24,000 0.11 JT Group operating vehicles 0.10 0.09
0.04 0.03 0.03 FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM
– +300m Total kilometers driven in 2020 Total Americas Asia Eastern Western MENEAT Markets Pacific Europe Europe
WHO statistics on road traffic injuries 2019 2020
HUMAN RIGHTS RIGHTS HUMAN ILO statistics on safety and health at work
6 This applies to our international tobacco business. 44 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
6. Health and safety
Health and safety at the farm level Green Tobacco Sickness (GTS) and harvesting fundamentals are workers to avoid wet tobacco and Our Agricultural Labor Practices (ALP) provide minimum standards for GTS is a condition that can be caused communicated with tobacco growers wash their hands after harvesting to our contracted growers and tobacco leaf merchants in relation to child as the result of absorption of nicotine on a regular basis. avoid possible GTS. GTS is covered labor, respectful working conditions, and workplace health and safety. through skin when handling wet green We recommend wearing a long-sleeved in our ALP program, in which we state that “the grower should ensure that There is a shared responsibility to establish a safe and healthy working tobacco leaves, especially during shirt during reaping and include gloves, workers understand the risks of Green environment. International recognition of such responsibility is reflected the harvesting process. It is a form as part of our PPE in grower input packs, Tobacco Sickness and apply reasonable in the ILO Convention 184. The grower is expected to apply reasonable of nicotine poisoning. in both Malawi and Zambia. As part measures and practices to prevent it measures for creating and maintaining a safe, healthy, and injury-free As GTS is linked to exposure to of our training, we also recommend in accordance with recommendations working environment and ensure the wellbeing of workers. nicotine, the following safety practices contracted growers and their farm provided to contracted growers.”
Avoid green tobacco sickness rules:
Avoid harvesting when leaves are wet
Wear long sleeved shirts or raincoats
Wear gloves
Wash hands with FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM
– soap and water after handling tobacco leaves Agricultural Labor Practices (ALP) program
HUMAN RIGHTS RIGHTS HUMAN ILO Convention 184
45 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
6. Health and safety
Crop Protection Agents (CPA) 1. Leaf tobacco production 3. Scientific collaboration Agriculture-based raw materials form the most The use of less hazardous CPAs by our contracted We maintain active participation and leadership position significant part of our products. In line with other value- growers is recommended and augmented in certain in CORESTA in all aspects related to crop protection. added agricultural products, leaf tobacco production circumstances through the supply of customized CORESTA is fully committed to responsible and requires the adoption of appropriate crop protection growers’ input packs with only selected CPAs and sustainable tobacco production and is the scientific practices as part of a holistic Integrated Pest Personal Protection Equipment (PPE) in our vertically and good practices reference for the tobacco industry. Management (IPM). IPM-based practices allow integrated tobacco production countries. Local JTG We believe in a common, harmonized approach that minimization of Crop Protection Agent (CPA) entities provide training sessions to its Agronomy involves all stakeholders committed to sustainable and usage that may be required to secure the desired Technicians and contracted growers on correct CPA responsible tobacco production worldwide. quality, yield, and integrity of raw leaf. application, handling, disposal, and PPE usage. Beyond the scope of our vertically integrated operations, we 4. Engagement with local authorities, institutions, We promote the adoption of IPM crop protection collaborate with our third-party tobacco suppliers on industry associations, and research organizations strategies and the responsible use of CPAs correct CPA usage, residue minimization, and associated in accordance with the Food and Agriculture Our experts conduct sector-focused meetings and labor practices. The initiative to eliminate WHO-FAO Organization of the United Nations (FAO) Good workshops to address CPA-related challenges with Highly Hazardous Pesticides (HHP) and replace them Agricultural Practices (GAP) and in compliance the objective of raising awareness and implementing with less hazardous product options is in progress. with relevant national and international regulations. and/or encouraging initiatives oriented towards GAP Currently, more than 90% of the tobacco volume and ALP aspects. The wider principles for the use of crop production purchased by us is free of quantifiable residue levels of inputs, such as CPA, is already well established HHP (WHO Hazard Class 1). We are aiming to complete 5. Supply Chain Due Diligence (SCDD) in our leaf sourcing areas. Our commitment to the phasing out of all CPAs in this HHP category from SCDD is a continuous improvement process comprising responsible CPA usage and the control of residues our tobacco supply chain by the end of 2021. of five steps: Identify, Prioritize, Respond, Measure, and is defined in our Good Agricultural Practices Protocol Report. The ALP program is integrated into this process. and the Corporate Policy on Crop Protection Agents 2. CPA residues analysis Whenever CPA-related challenges are mapped as a Residues Testing of Tobacco for the Manufacturing Tobacco produced by our contracted growers is priority, leaf suppliers are encouraged to address those of Tobacco Products. sampled and tested each growing season to permit challenges. An example of that is the ongoing dialogue We are also committed to the transparency of the the identification of potential challenges and subsequent on HHP elimination between CPA experts and industry practices implemented throughout our tobacco supply adoption of improvement measures. Packed tobacco stakeholders. Finally, when local JTG entities run Supply chain. Our overall objective is to ensure that raw leaf is lots intended to be purchased from our directly Chain Impact Assessments on the ground (series grown and procured in a sustainable way, respecting contracted growers and third-party suppliers are also of interviews with rights-holders and other relevant the environment and raising economic prosperity in our systematically screened for CPA residues and either stakeholders), CPA-related challenges are in the scope FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM contracted farming communities. accepted or rejected prior to entering our supply chain. of the assessments. – Our responsible use of CPAs and control of residues Tobacco lots with CPA residues detected above the is focused on and initiated through activities and established JTI Standard are not purchased. As a result, Good Agricultural Practices Protocol processes in five main areas: the number of CPA detected has decreased over the CORESTA years and shifted to newly available alternatives to HHP. HUMAN RIGHTS RIGHTS HUMAN
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6. Health and safety
Case study – Using leverage with our tobacco merchants in Zimbabwe
In May 2018, industry stakeholders, All our suppliers engaged positively and made • Formalize the Tobacco Leaf Exporters • Formation of a Sustainability Sub-committee the following proposals and commitments: Association of Zimbabwe (TLEAZ) is under discussion including ourselves, received a letter • Eliminate the use of the most hazardous sustainability sub-committee to include human • Six salient issues were collectively identified from the United Nations Office of pesticides to human health – Highly rights-related issues/concerns and establish in order to focus on primary efforts: the High Commissioner for Human Hazardous Pesticides (HHPs) Criteria 1 – by a working group to look into the development health and safety – exposure of workers of an industry-wide grievance mechanism Rights that highlighted several the end of 2021 to CPAs; land rights; child labor; gender • TLEAZ Agronomy Sub-Committee has discrimination; freedom of association; and alleged human rights violations such • Develop a human rights policy approved at the most senior level of their organization and been formed, with a mandate that includes environmental impacts as child labor, health and safety, make it publicly available sustainability topics • A number of the above-mentioned salient and a variety of labor rights abuses issues have been raised to the TLEAZ in tobacco growing in Zimbabwe. Committees and an agreement reached to engage government as an industry via TLEAZ Although we have no direct operations in to effect change and improve regulation, e.g., Zimbabwe and only purchase tobacco leaf ensure all licensed tobacco leaf contractors through leaf merchants (third-party suppliers), in Zimbabwe follow the same high standards we were still connected through our business • Agreement to explore the development relationship. The JTI purchasing entity used of minimum industry standards in its commercial leverage with the suppliers to relation to adequate personal protective reduce the risk of harm occurring. Therefore, equipment in Zimbabwe we worked alongside some of our biggest leaf merchants: Alliance One International, Inc. We also engaged in open dialogue with the (AOI), Premium Tobacco International DMCC Zimbabwe Ministry of Labor, the Tobacco (Premium), Universal Leaf Tobacco Company, Industry and Marketing Board, the Tobacco Inc., and CONTRAF-NICOTEX-TOBACCO GmbH, Research Board, and the National Employment to encourage them to adopt and align their Council for Agriculture and Tobacco. procedures with those promoted by the United Tobacco leaf merchants provide regular Nations Guiding Principles on Business and progress updates about the commitments Human Rights (UNGPs), and where necessary made, and we continue to work together with to change their business practices globally rather them to ensure the best possible outcome than only in Zimbabwe. for those impacted. FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM – Read the full correspondence with the United Nations Office of the High Commissioner for Human Rights. HUMAN RIGHTS RIGHTS HUMAN
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Tobacco products carry risks to health. These risks We recognize that cigarettes are a legal but distinguish tobacco from most consumer goods and controversial product. People smoke for pleasure, place upon the tobacco industry a real responsibility but there are real risks that come with that pleasure. to communicate these risks to consumers. Our Accordingly, we believe that tobacco products should approach is to present this information in an open be appropriately regulated. We take seriously the way and transparent manner. we market our products and do this in a responsible way, complying with all local laws. We are committed to enabling adults We are investing in developing products that do not to make an informed decision before involve combustion and do not produce tobacco using our products. We also believe in smoke. In line with an increasing number of scientists, we believe that non-combusting products have the the freedom of adults to choose whether potential to reduce the health risks associated with they want to smoke or vape and that no smoking. We are committed to bringing to market one should do so unless they understand RRP (Reduced Risk Products1) that meet consumer expectations. We provide information acquired the risks. through scientific assessment about these products. We are communicating openly about the health We think that minors should not use either risks of our products and are committed to playing combustible tobacco, vaping products, or any other a full role in youth smoking prevention. This is alternative products. This is central to our Code of a responsibility for which we expect to be held Conduct, our marketing principles, our operational accountable, together with governments and policies, and the way we do business. the rest of society. See our position on smoking and health. See our JTG Tobacco Principles. FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM – HUMAN RIGHTS RIGHTS HUMAN
1 Reduced-Risk Products (RRP): Products with the potential to reduce the risks associated with smoking. 48 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
7. Health risk
Case study – IDentify
Marketing JTI UK funds a youth access prevention program called IDentify in the UK. This is a compliance Case study – No ID, No Sale! program designed to support small and independent retailers with the same kind of training that large JTG Global Marketing We maintain robust policies and supermarkets use. Principles – in practice procedures around sales and marketing Retailers are mystery-shopped to check whether they ask to see proof of age of younger-looking During our HRIAs with JTI UK helps fund the ‘No ID, No Sale!’ campaign, customers. Those retailers who do not ask to see a valid ID are not operating the best- BSR, we reinforce the which provides retailers with materials and advice of tobacco and vaping products, in practice Challenge 25 proof-of-age policy, which is recommended by JTI and enforcement requirements of JTG to prevent underage sales and reminds shop staff addition to clear disclosures around bodies like Trading Standards. These retailers are said to be ‘at risk’ and are offered Global Marketing and younger consumers that valid proof-of-age is the impacts of smoking through various accredited training from qualified trading standards officers in the prevention Principles with required when buying tobacco and vaping products. communication channels. of underage sales. both JTG sales More than a quarter of a million ‘No ID, No Sale!’ representatives packs have been distributed to retailers since the We are committed to marketing our tobacco and third-party beginning of the campaign in 2004. products and brands responsibly. brand ambassadors who promote our All marketing activities are based on the JTG’s four products. We observe Global Tobacco Marketing Principles: their practices in the 1. Minors should not smoke and should not be able field, review their script to obtain tobacco products. and support materials, and check compliance 2. We do not market our products to minors nor with the JTG Global encourage anyone to take up smoking or discourage Marketing Principles. anyone from quitting. Through mystery 3. We market our products to adult smokers to maintain shopper tests, we check brand loyalty and to encourage adult smokers of for deviations from the competitor brands to switch to our products. Marketing Principles 4. Adult smokers should be appropriately informed key messages. During about the health risks of smoking before they make our assessments, we the decision to smoke. found no deviations and that these sales We apply these Global Marketing representatives and brand ambassadors only FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM Principles in all jurisdictions, especially engage with consumers – where applicable laws and regulations are who are current smokers less strict, do not deal with the particular or vapers and always ask for age verification issue, or do not exist. to ensure they do not sell to minors. HUMAN RIGHTS RIGHTS HUMAN
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“Diversity, the state of being different, isn’t the same as At JTG, we believe each individual should be For us, diversity is about recognizing differences, We believe this brings a rich mix of viewpoints inclusion. One is a description of what is, while the other treated with respect and dignity and lead their life whether it be age, gender, self-identification, and perspectives, which can inspire new ideas, enjoying personal freedoms of choice, thought, sexual orientation, disability, ethnicity, religion, lead to solutions to complex issues, and drive describes a style of interaction essential to effective expression, and to be their own selves. That is or nationality, as well as experience and expertise. our business forward. why we strive to provide a safe and inclusive Inclusion is where these differences are valued Driving equality and change in a diverse global teams and organizations. Diversity and inclusion have environment within our premises and across our and used to enable all our stakeholders to thrive. organization is a challenge as many diversity business relationships. Our aim is to ensure that With a workforce that includes over 100 nationalities, and inclusion topics are interlinked with the local become absolutely essential. They are not just abstract individuals feel comfortable establishing a diverse and inclusive workplace is political climate, society and cultural norms, and in their surroundings, a top priority for us. We want all our the different readiness levels across the locations. notions for me. I want all of our employees to benefit knowing that their employees to feel valued and part of human rights are our team, to enjoy their work, and to from this and to be themselves all the time, everywhere.” respected and perform to the best of their abilities. freely enjoyed. Christiane Bisanzio Vice President, Diversity and Inclusion, JT International S.A.
To meet this challenge, our international tobacco business has set up a dedicated diversity and inclusion department focusing on 5 key pillars: 1. Gender equality 2. New ways of working 3. LGBT+ Inclusion 4. Wellbeing
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM 5. Race and ethnicity –
For all the pillars, there are various actions that have been put in place, from global policies that focus on equality to awareness trainings and workshops across the world.
HUMAN RIGHTS RIGHTS HUMAN Read more on the freedom to be yourself.
50 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
8. Non-discrimination and equality
1. Gender equality Our initiatives include the following: 2. New ways of working (N-WOW)1
Our mission is fostering the professional 1.1 Equal Pay Equal Opportunity Enabling new ways of working is one of our key values, development of women and getting more JTI`s HQ office has been an EQUAL PAY certified and increasingly necessary in today’s world. women to the top. organization for three years in a row and is currently running a process of extending the certification globally. N-WOW represents a movement to boost flexibility and retention, largely by removing We make gender equality a formal business priority. The Equal Pay commitments at JTI have been extended many of the barriers and management styles of the past and bringing them in line with We are committed to relentlessly pursuing our goals to Equal Opportunity as well to address the a modern multigenerational workforce. Some of our initiatives include the following: to increase the representation of women in underlying causes and work environments leadership positions in addition to reaching for preventing gender pay gaps. 2.1 Global family leave1 gender parity for all levels. New ways of working also mean new ways of living. The line between work and We are constantly trying to engage our 1.2 AI for job descriptions private life is getting thinner as societies evolve and with that the motivation and employees – both men and women – in order This measure undertakes the usage the needs of the workforce evolve. Our new family leave policy equalizes the career to understand better where we stand and how of data science to check and enhance opportunities of both men and women, as both should be enabled to take care of we can get to the gender equality vision of job descriptions in order to use their careers and their families. The policy establishes a global and inclusive family our company. This is done via on-going focus gender-neutral wording in the text leave benefit where all employees are eligible for up to 20 weeks of fully paid parental groups, roundtables, and most recently, the that is being published. It reveals leave, regardless of location, gender, or whether they become parents via adoption, MAP program – Men Activating Progress. What the hidden gender bias in the job surrogacy, or birth. both women and men at our company want to descriptions writing and suggests see is more equal opportunities for all, better alternatives so we can recruit 2.2 50-25 meeting default representation in our leadership roles, from the widest possible pool To facilitate a healthy transition between meetings, as well as address the need and more male allies as we are all of qualified candidates. for building a better work-life blend, we have set the default meeting duration setting together on the journey to equality. to change from 60/30 to 50/25 minutes globally for all employees. The window of The internal input is further 5-10 minutes between meetings might seem small, but it makes a big difference. strengthened via our global It should allow all of us to find a better balance in our busy agendas and run productive employee network – TogetHER. and engaging meetings. We are investing in a number of initiatives to accelerate 2.3 My generation the advancement of women As part of N-WOW, we value the diverse perspectives that each generation brings
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM and spark progress towards to the workplace and our communities. It is critical that the institutional knowledge – gender equality globally. We and historical views of our most tenured employees, our X-Factor community, have a new Group-wide target along with the progressive mindset of our emerging talent, our GENext community, regarding the representation are all leveraged. Together we can create cohesion across generations and embrace of women in leadership that is the multigenerational workforce as our strength and reality. to reach 25% by 2030. Read more about out family leave policy. Read more about TogetHER. HUMAN RIGHTS RIGHTS HUMAN
1 This applies to our international 51 tobacco business. CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
8. Non-discrimination and equality
3. LGBT+ Inclusion 3.1 Embassy model – International 3.3 OutNow workshops 4. Wellbeing modus operandi To strengthen the knowledge of our Supporting our LGBT+ employees is vital if we are to create There are three models of engagement leaders and employees, we created We recognize the a more equal company, in which everyone is empowered to be for international organizations in the a special format of a LGBT+ workshop, importance of our matters of LGBT+ inclusion: ‘When in together with OutNow – our expert and do their best. Rome’, ‘Embassy’, and ‘Advocate’. partner consultancy with over 25 years employees’ wellbeing. As part of our LGBT+ Inclusion pillar, we develop strategies, professional development The best practice model to start with of work in LGBT+ inclusion. These Everyone needs to opportunities and LGBT+ inclusive policies to create workplaces that are inclusive and the one JTI is positioned to use is workshops were delivered in our HQ, as feel supported of all sexual orientations, gender identities, and gender expressions. Our strategy the ‘Embassy’ model. In the ‘Embassy’ well as in key locations around the world. and appreciated encompasses a holistic stakeholder approach towards our community members, model, we create an open and inclusive allies, shareholders, and consumers. workplace internally for LGBT+ 3.4 The UN Standards of Conduct to be productive employees no matter the local context. for Business Tackling Discrimination and engaged. In locations where there are challenges against the LGBTI community with being part of the LGBT+ inputs, In April 2021, JT and JTI signed the We encourage our we provide anonymous support phone UN Standards of Conduct for Business people to develop lines for the employees in these Tackling Discrimination against the a resilient mindset countries and secure and protected LGBTI community. In signing this pledge, and healthy lifestyle access to LGBT+ content and resources. we join 300 other companies from that will boost around the world committed to tackling every aspect of 3.2 Inclusive policies LGBT+ discrimination, while becoming their private and This activity is the groundwork of the D&I the first tobacco company to commit professional life and team, together with the other stakeholders to the Standards. let them perform at in P&C. Every policy should be double- their best. checked for its inclusivity. The policies 3.5 PRIDE ERG Read more about our already covered (locally or globally): JTI’s global LGBTIQ+ employee resource approach to wellbeing • Code of conduct and group (ERG), PRIDE, champions peer in health and safety. anti-harassment coverage to peer support among employees, • Family leave for same-sex grows the support of allies through couples (adoption, surrogacy, educational and inclusive activities, and or natural birth) works with the business to create a more equitable and inclusive JTI. New locally
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM • Partner healthcare insurance led PRIDE chapters are opening across – (local Swiss only) JTI markets. To find out more about • LGBT+ Travel Safety Policies PRIDE click here. and Guidelines Read more about OutNow • International Mobility support policy The UN Standards of Conduct for and the new definition of a Family. Business Tackling Discrimination
HUMAN RIGHTS RIGHTS HUMAN against the LGBTI community
52 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
8. Non-discrimination and equality
5. Race and ethnicity Identifying vulnerable groups Case study – Program ‘No boundaries’ in Russia One specific aspect of the UNGPs is that they expect Our workforce includes over 100 nationalities, and we companies to pay particular attention to negative need to create a workplace free from any discrimination, impacts on vulnerable populations – those that may Within the program, JTI Russia employed The Program be disproportionately affected due to their unique where people can be themselves. 15 external candidates with disabilities. These status. Vulnerable populations can include women, ‘No Boundaries’ is employees were hired in various departments Our initiatives include the following: ethnic or religious minorities, disabled persons, LGBT+ dedicated hiring (People and Culture (P&C), IT, Sales, etc.) communities, migrants and refugees, and more. 5.1 Race and ethnicity masterclass at positions involving both analytical and of people with A central element of JTG’s human rights due diligence The race and ethnicity 90-minute masterclass is an intimate and administrative skills. For recruitment purposes, disabilities and JTI Russia benefited from an external agency process has been to identify vulnerable populations custom-made session that aims to create a safe space for learning in our value chain. During our HRIAs, we focus on the basics of the dimension of race and ethnicity in the workplace. was launched specializing in the employment of people with disabilities. understanding how their rights may be negatively Delivered by an external subject matter expert, it equips the participants within our Russian impacted in ways distinct from the general population These employees are treated like every other with the knowledge and awareness that can be applied in their business in 2016. and subsequently tailor mitigation and remediation employee and are provided with the full everyday lives. strategies to meet the distinct needs of these compensation and benefits package. In accordance vulnerable groups. 5.2 Race and ethnicity e-learning with local Russian regulations, employees with disabilities have a reduced working week Similarly, our efforts on Diversity and Inclusion aim to The race and ethnicity e-learning is a self-learning identify and empower vulnerable and minority groups module that any of our employees can undertake in 19 (35 vs. 40 hours) and increased vacation for within our own organization, including women, people order to better understand this dimension of Diversity rehabilitation purposes. Where there are specific Employees with disabilities medical conditions, a specialist company has of color, LGBT+ communities, disabled people, and more. and Inclusion. Accessible via desktop and mobile, employed at JTI Russia it promotes equality and provides the fundamental helped provide specially equipped working places. After the HRIA in Tanzania in 2018, the local team worked knowledge of understanding and recognizing the The program proved itself successful, with the to ensure better appropriate measures were in place aspects of race in the world. majority remaining in employment after 2 years. to meet the needs of People Living With Disabilities As a result, the program was incorporated into our (PLWD) in the workforce. The team developed a strategy 5.3 EmbRACE regular P&C framework, and JTI Russia continues and program to bring our operations in Tanzania into compliance with the Convention of the Rights of People EmbRACE is our global employee network, dedicated to hire employees with disabilities. Currently, in JTI with Disabilities. This included: to the topic of Race and Ethnicity. Its objective is to Russia, there are 19 employees with disabilities, support our journey to become a fully inclusive business, with 17 on permanent contracts. Amendment of local policies and procedures to ensure improved inclusivity
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM break the barriers, and create a safe environment
– that allows people of all races and ethnicities to thrive Sites and offices were adapted with ramps and increase racial and ethnic diversity at all levels and toilets to ensure infrastructure was inclusive of the business, including leadership. and accommodating to people with disabilities Updated the recruitment policy and advertisement for employment to include the equal opportunity statements HUMAN RIGHTS RIGHTS HUMAN
53 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
S up up p ly ro c G h
T Risk a i J location n
C r 9. Working hours onsume
Excessive working hours can take There are many potential root causes of We maintain robust programs at the agricultural excessive working hours: seasonality, low and supply chain levels to promote respect for Bangladesh Malaysia many forms, including excessive and wages, production lead time and capacity, working hours. These include the ALP program During the local HRIA, long During the HRIA at a third-party sometimes mandatory overtime, culture choices, business practices, and political, and a set of policies and procedures that hours were reported by workers warehouse, it was observed that back-to-back shifts, lack of economic, and external pressures. These all can require the same in the non-leaf supply chain, in the warehouse and also at contractors were working long impact the number of hours worked. the Know Your Supplier (KYS) program. rest days, or a lack of the factory, including long hours hours, up to 12 hours a day and Our HRIAs have found some cases of high for some forklift drivers. six days a week. breaks during the day. Workers frequently want or need to work extra shifts to earn more money and, in many working hours, mainly at the supplier level. To address this finding, To respond to this, JTI Malaysia Migrant workers, cases, secure a decent livelihood, especially JTI Bangladesh: requested that the supplier: temporary, contract in countries facing recession and high rates • Carried out a training of • Reviewed the labor laws and self-employed of unemployment or when people have supervisors with regards on working hours and temporary contracts. It is complex to find legal compliance to working overtime to ensure their full workers, and the right balance. hours and overtime compliance with applicable women are Although most of the countries we source • Initiated a system where all laws and regulations among those at from have laws regulating working hours and overtime is pre-approved by • Strengthened awareness heightened risk. payment of overtime, these laws are often the relevant line managers of available rest breaks poorly implemented, enforced and/or not in line • Installed new attendance and vacation entitlement with the ILO standards. devices to ensure an amongst workers through There is plenty of evidence that excessive automated time and consultations and conducted hours of work and inadequate periods attendance tracking trainings for the management of rest can damage health and increase system of employees and workers on the links the risk of accidents. And often, there is with a direct interface of between rest, productivity a significant link between low wages and the Human Resources and safety performance excessive working time. Information System • Stressed that overtime Many people are impacted by these practices, • Developed a reporting must always be voluntary which in the end also impact the right to health system of overtime hours with the worker’s consent, and right to family life. for management overview and health and safety must always be paramount Our Supplier Standards require suppliers to
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM ensure that working hours and remuneration
– comply with local legislation and relevant Read more: international standards, including ILO JT Group Supplier Standards Conventions 1, 14, 95, and 132. ILO Convention 1 Where local industry standards or international conventions are higher than applicable legal ILO Convention 14 requirements, we expect suppliers to meet ILO Convention 95
HUMAN RIGHTS RIGHTS HUMAN the standards most favorable to workers. ILO Convention 132
54 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Collaborations and partnerships 56 Stakeholder engagement 59 Remedy 60 Culture change through training 63 EngagementHuman rights regulations 64
55 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Collaborations and partnerships
“We believe it is essential for businesses to respect The work of protecting and respecting human rights human rights in order Working with global institutions to drive Eliminating Child Labor At JTG, we see collaborating with internal in Tobacco-Growing must be founded on collaboration between governments, to create a more just and systems change and external stakeholders in partnerships businesses, and society. Ousting the tobacco industry Foundation (ECLT) as key to achieving change. In addition from the debate ignores the voice of 40 million people sustainable world. Over Sustainable Tobacco Program (STP) As part of the ECLT to our global partnerships, we invest globally engaged in tobacco growing. Therefore, we the past three years, BSR Our international tobacco business is an active Foundation Board since believe that everyone has to have a seat at the table and has worked closely with member of the Sustainable Tobacco Program 2002, we have supported time and effort in local partnerships everyone’s voice should be heard. Regulation and policy (STP) and chair of the STP Steering Committee, strategic investment and at the country level and use multi- must reflect the benefits of collaboration, and to bring JTG to build a leading consisting of industry peers. STP is an industry- driven multi-stakeholder stakeholder collaboration to scale and about positive change, all views should be included. human rights program wide platform enabling businesses to collaborate action to address the root on human rights, environmental issues, and causes of child labor. We work sustain our efforts. Read more about 40 million people globally engaged dedicated to this vision. in tobacco growing other sustainability challenges and to drive alongside our industry peers, Throughout our sustainable agriculture through a continuous the International Tobacco improvement process. 2019 and 2020 were Growers’ Association (ITGA) partnership, JTG has years of reform for STP, as it was restructured and suppliers, towards a continually looked for around the robust due diligence process pillars shared vision of thriving ways to improve their as follows: Identify, Prioritize, Respond, Measure, agricultural communities Communicate, and Report. that are child-labor-free. human rights program, which incorporates both Organization for Economic Co-operation and Sharing our experience Development (OECD) and Food and Agriculture and learning from field-level due diligence Organization (FAO) other Companies as well as integration In 2018, we became part of the pilot project on We are members of the BSR of human rights into Guidance for Responsible Agricultural Supply Human Rights Working Group, business operations. Chains. This initiative was run by the Organization which is made up of over for Economic Co-operation and Development 40 companies from different It is exciting to see (OECD) in conjunction with the Food and Agriculture sectors. We use the working JTG elevate this work Organization of the United Nations (FAO). By group to learn from other by publishing a stand- participating in this project, we have been able companies on how they are to share our own experiences, broaden our operationalizing the UNGPs alone human rights understanding, and benchmark against others. into their business operations, FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM as well as share our – report, and we hope The final report about the pilot project was more companies will published in 2019. It presents the key findings experience and challenges. We will continue listening and follow suit.” of the pilot, lessons learned, good practices, and challenges in implementing Supply Chain Due learning from others via this Diligence (SCDD) as shared by the participants. working group going forward. Jenny Vaughan OECD-FAO Guidance for Responsible Human Rights Director, BSR Agricultural Supply Chains HUMAN RIGHTS RIGHTS HUMAN
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Collaborations and partnerships
“What has impressed me in working with JTI is how they engage with their suppliers and evolve their Public private partnerships Working with suppliers 600 Working with external experts program based on For the past decade, we worked closely with the International Labor We develop strong partnerships with Partner organizations feedback from their Organization (ILO) and Winrock International, an international NGO, to our key suppliers to achieve long-term BSR, twentyfifty Ltd, supported on community suppliers. Over the address child labor in our sourcing countries through ARISE, our child mutual success. Our strategic investment programs and KPMG AZSA labor elimination program. This multi-stakeholder approach enabled us relationships are built on shared values Sustainability have been past few years, this to develop solutions to address the root causes of child labor and better and objectives. This allows us to playing important roles partnership approach protect child rights. find sustainable solutions together, in helping us to drive has allowed them to In 2015, our ALP program became part of the partnership between ensure a stable supply in a dynamic our human rights due take their suppliers the ILO and Japan Tobacco International (JTI), our international tobacco environment, and adapt to diligence implementation. with them as they business. As a result of this collaboration, ILO has supported us with innovative technologies. Mazars has been a develop a supply chain an Impact Assessment Framework and tailor-made training materials Read more about trusted adviser to us due diligence program around the Fundamental Principles and Rights at Work. ILO has also working with suppliers on the UN Guiding that fits this era of due conducted a series of trainings to JTI and our third-party suppliers from Principles on Business diligence legislation. Brazil, Serbia, Turkey, Malawi, Tanzania, and Zambia. Partnering with local organizations and Human Rights and to invest in communities the Reporting Framework. The growing Working with growers and third-party leaf suppliers We partner with local organizations Mazars has facilitated understanding, trust, We work closely with our directly contracted growers and third-party to contribute to the development a cross-functional and transparency with workshop within the leaf merchants to enhance the security of supply and provenance of of inclusive and sustainable suppliers are allowing leaf supply. Our relationships with directly contracted growers produce company on salient communities. In line with our for new initiatives and tangible results, thanks to regular farm visits, dialogue, and training. community investment policy, and issue identification. collaborations across In 2016 we started a bi-annual process of ALP/SCDD reporting with as a responsible local community third-party leaf suppliers to: member, we recognize the value the industry to address persistent issues in Provide more transparency on labor and human rights in our supply chain of nature, society, and human diversity and work with a wide range tobacco growing. Enable a continuous dialogue for improvement of stakeholders to resolve social issues. This approach In 2020, we supported over 600 partner of continuous Help meet our Sustainability target to ‘Implement ALP in all sourcing organizations to implement community improvement has countries by 2025’ investment programs. been brought to the We engage with all third-party suppliers directly not only via reports, We have been working closely with industry through FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM but also in Annual Global Meetings with appointed suppliers and via Corporate Citizenship and B4SI (former – JTI’s chairmanship country visits in a continuous dialogue for improvement in focus areas. London Benchmarking Group) to improve our reporting on community investment. of the Sustainable At the end of 2019 and at the start of 2020, we organized a series Tobacco Program.” of webinars on Extreme Breaches and the Rights of Workers as we Read more about community investment received many requests to get a better understanding of these topics, Luke Wilde both from our directly contracted growers and leaf merchants. Managing Partner and Founder, twentyfifty Ltd HUMAN RIGHTS RIGHTS HUMAN
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Collaborations and partnerships
Case study – Collaboration in India
In the majority of countries In India, the supply of FCV is governed by the Indian Tobacco In 2019, in Independent local social researchers visited seven The assessment has provided a common understanding Board (ITB) and our leaf merchants (third-party suppliers) collaboration with villages and interviewed 490 people across the three of the prioritized issues that the Indian tobacco industry from where we source buy from the auction platforms, not directly from the grower. areas from where our suppliers purchase. We were needs to address, and we continue to focus our efforts tobacco, we do so either Therefore, our suppliers need to work with the ITB and their another tobacco particularly grateful that the researchers had the towards encouraging an industry-wide response of directly from a grower peers to bring about change. manufacturer opportunity to engage with typically vulnerable and sufficient scale to address these priorities. under-represented groups like women and children, or via leaf merchant. When our tobacco sustainability team visited India in 2016, and our tobacco To this end and, despite COVID-19-related issues, they found that our suppliers were promoting Agricultural Labor leaf merchants, daily laborers, and landless and migrant workers. we are pleased to be furthering our dialogue with our However, in India, the Practices (ALP) amongst growers growing burley tobacco, who The assessment found a range of human rights and industry peers (another tobacco manufacturer has joined situation for Flue-Cured they directly contract, but without the possibility to do so amongst we undertook sustainability challenges, and it identified a number this initiative in March 2021) and the newly formed Virginia (FCV) tobacco growers of FCV due to lack of direct relationship with the grower. a Supply Chain of priority topics that would benefit from continuing Sustainability Sub-Committee (July 2020) of the Indian collaboration by the Indian tobacco industry. Tobacco Association to address these complex and is somewhat different. Since 2016, we have visited India regularly and sought to Impact Assessment progressively enhance our suppliers’ understanding and capability systemic issues. We are currently discussing with our to understand These topics included: to practice Supply Chain Due Diligence (SCDD) and promote greater suppliers and industry peers a tangible action plan. engagement within the industry, including with the ITB. potential human The use of agrochemicals, a risk that needs to be rights risks from managed, for examples, by the correct use of PPE, the perspective of elimination of HHPs, and conducting effective trainings growers, workers, The impact of inflation and cost of living on incomes and the community. The effects of climate change on the community’s resilience FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM – HUMAN RIGHTS RIGHTS HUMAN
58 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Stakeholder engagement
Our due diligence approach comprises various contracted and outsourced laborers. Where possible, We regularly engage with our forms of human rights impact and risk assessments, we conduct women-only interviews and have language ranging from remote, desk-based self-assessment interpreters to facilitate the dialogue. Prior to every 300 – 500 stakeholders to understand the approaches to immersive field-level Human Rights HRIA, we conduct thorough research on the market, issues that matter to them most Impact Assessments (HRIAs) in our high-risk markets, the issues specific to the industry, and all rights-holder Rights-holders engaged during our and to meet their needs and in addition to more focused supply chain due diligence groups, including those most vulnerable. This helps Supply Chain Impact Assessments assessments in our tobacco sourcing countries. us tailor questions and engagements more efficiently expectations. This rightsholder This is complemented by the regular monitoring and towards the potentially most severe impacts and identify consultation is vital in helping impact identification elements of our Agricultural Labor vulnerable populations ahead of time. us to make decisions Practices (ALP) program. that will drive In each of these processes’ stakeholders We strive for a representative sample size of long-term are engaged at different levels. right-holders during each assessment. As an example, in recent HRIAs, we engaged 10-20 factory workers sustainability. With the help of BSR, during our Self-Assessment from all cohorts during factory visits (both JTG Questionnaires (SAQs), we engage with our colleagues and supplier factories), 20-40 Leaf workers from all in each market whose respective teams provide processing phases per site, and 10-15 office workers input to the assessment. We work with these teams for our sites. regularly during follow-up and action plan creation. For our Supply Chain Impact Assessments, we select We have started to roll out self-assessments to some a diverse range of farming communities that would of our distributors as well, which means more direct potentially demonstrate a variety of conditions and engagement with those contacts at the distributor level the key challenges identified in the initial high-level and their staff. research. Within each of the visited communities, Our approach to stakeholder engagement during we engage with different impacted groups in general our field-level HRIA focuses on rights-holders across and have targeted discussions. The impacted groups the value chain, including farms, manufacturing include growers, workers, tenants, migrant and and processing facilities, corporate-level seasonal workers, wives of growers and tenants, employees, sales, marketing, and children of farming families and non-farming families, distribution employees, and the and community members. employees of a diverse array of suppliers Depending on the number of growers we contract in
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM and other business partners. each origin, we aim to engage between 300-500 rights- – At each site visit, we engage a holders during our Supply Chain Impact Assessments. representative sample of rights- Recognizing that vulnerable individuals may not holders across functions, actively participate in the formal engagement or focus operations, and roles, including group discussions, considerable emphasis is placed key vulnerable populations, such on informal research and engagement. For example, as women, ethnic or religious the researchers would conduct informal discussions
HUMAN RIGHTS RIGHTS HUMAN minorities, migrant labor, and while walking across farms and communities.
59 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Remedy
Access to an effective remedy is a from our employees, our business business partners at all times and Examples of the type of issues that The Business Ethics Team is a human right in itself and, therefore, partners, and anyone associated from anywhere. can be reported through Your Voice team of compliance professionals How does Your Voice portal work? a key component of respecting with the JT Group. To achieve this, we have in place include, but are not limited to, fraud, within the Corporate Compliance human rights. To fully meet our Across the JT Group, each of our our own internal reporting concern theft, corruption, money laundering, Department that has overall responsibility to respect human rights, operating companies has specially mechanism – Your Voice. illicit trade, discrimination, moral and responsibility for Your Voice. we endeavor to actively engage in the sexual harassment, or other forms 1 trained members who handle We are committed to achieving and remediation of any potential impacts 1 of inappropriate behavior. compliance matters . If an employee is maintaining the highest standards The reporting person raises a concern that the business may have caused concerned about a potential violation of ethical behavior and acting by phone or web in their own language or contributed to. of our Code of Conduct, they can responsibly in all we do. Your Voice Reporting concerns contact their line manager, HR lead, helps us meet these standards by or a member of the compliance team2. mechanisms play a critical allowing employees and business We also provide an external partners to report behavior related role in opening channels for concern-reporting service, run by an to JTI business, which they believe 2 dialogue, problem-solving, independent provider and available is in breach of the company’s TRUST investigation, and, when 24/7. Every reported concern and Code of Conduct, Polices and JTI Business Ethics receives the concern investigation report are treated on Procedures, Operating Guidelines required, providing remedy. a confidential basis, and retaliation or applicable laws, including human They enable workers and against anyone reporting a concern rights concerns. YOUR other rights-holders to will not be tolerated. 3 raise complaints freely and In 2020, we received 668 reports across JT Group. In the case of VOICE JTI Business Ethics directly interacts obtain effective resolutions. At JT Group, proven violations of our Codes of via the portal with the reporting person They can also help identify Conduct, we took appropriate action we are committed in their own language country-specific solutions in the form of dismissal, verbal or written warnings, or other measures. Key principles and pre-emptive action. to creating Concerns raised in good faith Our Reporting Concerns Mechanism Grievance Mechanism – deep an inclusive ensures that our employees and dive into our international tobacco will be followed up and dealt with 4 business partners can easily business’s Your Voice environment where impartially and in confidence FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM raise their concerns in good faith, We believe that everyone should be The reporting person can access – confidentially, and without fear able to raise concerns and have their people can speak The identity of the reporting their report for a status update at any time of retaliation. To us, it is crucial voice heard, in their own language, person is kept confidential to maintain and nurture the culture and even if they do not have access up freely and trust that we have worked together so hard to a company computer or the and protected at all times to build. Our Code of Conduct is very company network. That is why we each other to do ensure secure access to the reporting Zero tolerance for retaliation clear about what we expect in terms YOUR VOICE | Speak up in confidence HUMAN RIGHTS RIGHTS HUMAN of acceptable behavior system for all of our employees and the right thing. 1 In our international business, each of our operating companies, has specially trained members who can serve as the first point of contact to employees who consider raising a concern with Business Ethics and may need advice or support in that respect. 60 2 In our international business, employees can contact a Contact Person, a Regional Compliance Officer, or a member of the Business Ethics team. CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Remedy
UNGPs - Eight effectiveness criteria 1. Legitimate 2. Accessible and Your Voice 3. Predictable The UN Guiding Principles Enabling trust from the stakeholder groups and being accountable for Being known to all stakeholder groups. Providing a clear procedure and clarity on process and outcomes. on Business and Human the fair conduct of processes. • 24/7/365 all over the world in over 50 languages Full details about both Your Voice process and procedure are Rights provide eight There are many ways that we work to build trust and break down barriers • Accessible to employees and direct business partners published on the employee intranet for easy access. We informed effectiveness criteria to access, such as a lack of awareness of the system, language, or fears our suppliers of the updated Your Voice portal via an internal for company grievance of reprisal. • Accessible via mobile phone or web and external communications campaign. We shared emails and mechanisms. These • Option to leave a voicemail or write a message We communicate regularly about the cases, statistics, etc., which helps SMSs and used QR codes to raise awareness, tailoring the type of effectiveness criteria retain confidence in the process. All cases reported through the Your Voice • Personal key number to access the report communication in every country to best suit the audience. provide a benchmark portal are encrypted. The content of reports is accessible to a strictly limited for designing, revising, number of people. • Reporting person can leave messages anonymously or share or assessing company their contact details grievance mechanisms to help ensure that they are effective in practice. 4. Equitable 5. Transparent 6. Rights-compatible Ensuring that affected stakeholders are given reasonable access to information and expertise Keeping parties informed on Ensuring that outcomes accord with internationally recognized to engage on fair, informed, and respectful terms. progress and providing sufficient human rights. information on the portal’s Various global and local communication campaigns and other initiatives aim to provide employees Your Voice process ensures that all concerns of misconduct are reviewed performance to build confidence. and business partners with sufficient information to raise a concern Your Voice. They include: fairly and impartially. • Yearly Your Voice campaign rolled out throughout the organization JTI launches annual global JTI has a non-retaliation policy in place. JTI employees are neither communication campaigns to • Update bulletins on the work of Your Voice (called Right Track) permitted to take measures that would amount to retaliation against maintain and increase awareness a reporting person nor to threaten any such retaliation for reporting • Local initiatives to raise awareness around the Code of Conduct and Your Voice of the Your Voice reporting channel. a concern of misconduct. • Trainings by the Regional Compliance Officers on the Code of Conduct and Your Voice Full details about the grievance procedure and Your Voice are The reporting of a concern of misconduct in good faith, even if the FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM • Posts on the company’s communication intranet, called Workplace facts subsequently prove inaccurate or do not give rise to any further
– published on the employee intranet The network of specially trained contacts provides guidance to employees on how to proceed to for easy access. Confidentiality is action, must not expose the reporting person to any disciplinary action. raise a concern. The Business Ethics team and the Regional Compliance Officers are available to a key principle in the Your Voice The same protection applies to anyone participating in any stage of address all questions related to Your Voice and the Code of Conduct that the employees may have. process. The Your Voice procedure the Your Voice process. and Your Voice process describe how confidentiality is handled. HUMAN RIGHTS RIGHTS HUMAN
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Remedy
668 Grievance cases reported Reports received across JT Group in 2020 7. Source of 8. Rights-holders continuous learning engaged in Breakdown of reported cases Drawing on relevant measures to identify lessons the design for improving the portal. 2018 2019 2020 JTI reviews its internal grievance mechanisms (engagement) regularly from a human rights perspective. Consulting stakeholder groups, The newly upgraded Your Voice tool now provides drawing from mediation best practice, 87 enhanced reporting capabilities and analytics, 66 and focusing on dialogue as the 166 162 144 which will be used to conduct more in-depth root 190 9 means to resolve grievances. cause analysis, identify patterns, and allow us 12 to be more proactive. The upgrade of Your Voice tool was As a part of the HRIA methodology, the Your Voice conducted based on a thorough assessment of the key solution 79 reporting concerns mechanism is looked at and 73 17 84 assessed. During a HRIA in Tanzania in 2018, providers in the market, considering we identified that the awareness of our grievance worldwide best practices and JTI’s mechanism could be improved to increase its needs and requirements. 349 270 overall effectiveness, with some sites having 97 insufficient communications on the system in the local language. As a result, the local team relaunched a new communication campaign to reach all employees, translating all communications and training programs into Kiswahili, the local language. The local team actively promoted the tool on notice boards and leaflets as well as through direct 414 723 668 communication by the General Manager. In our FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM ongoing global effort to encourage employees – to speak up, we continue to provide targeted communications for markets. By empowering Cases related to: workers and communities to speak up without fear, we are able to strengthen our human rights due Labor practices (excluding human rights) Fraud and misuse of company assets Anti-competitive behavior diligence efforts. Human rights Corruption Other HUMAN RIGHTS RIGHTS HUMAN
62 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Culture change through training
We are working hard to embed human In November 2018, we organized an rights thinking into our company culture awareness-raising and improve employees’ understanding session on human rights of the human rights implications of to engage and educate our staff on the subject business decisions. To do this, we provide through an external voice. regular training and continuously share At the session, Margaret Is talent information about human rights and Jungk, formally at BSR and the Danish Institute determined the JT Group Human Rights Policy. for Human Rights, gave Employees in our Japanese operations have a speech that was by gender? completed an online human rights e-learning module, recorded and shared with which was offered in Japanese, English, and Chinese the rest of the company with a completion rate of 92%. The scope of the via our intranet. training included our subsidiary companies in China, Thailand, and the U.S. In addition, we provide More recently, we have taken a different approach to reader-friendly printed communication materials e-learning. In 2021, we will launch a new digital human to over 25,000 employees. rights e-learning platform in 32 languages focusing In our international tobacco business, we developed on behavioral change. The objective is to increase an online mandatory human rights e-learning module awareness and understanding of human rights risks in 2017 that is available in 25 languages. To reach and to empower our employees to do the right thing employees without computer access, we now have a with regard to ethical behaviors. dedicated section on respecting human rights integrated Users are to complete the modules in any order they into face-to-face training on our Code of Conduct. like and will have the ability to drop in and out of modules and sub-categories, making for a more personal experience that caters to people’s busy At JTI, our respect lifestyles. Rather than completing a lengthy training for human rights 92% in one sitting, employees will learn more about human is never up rights through bitesize content and gamification. FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM Employees in for debate – This method is designed to improve engagement and Japanese operations promote better retention of information. Employees have completed will be provided with a Human Rights Certificate on Discover how JTI stands up for gender equality the human rights completion of the assessment at the end of the module. on our new Human Rights e-Learning Portal e-learning module humanrights.jti.com JT Group Human Rights Policy HUMAN RIGHTS RIGHTS HUMAN
63 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Human rights regulations
In support of the Celebrating the There is no doubt that there has been progress, but In particular, the recent EU mHRDD proposal is worth 10-year anniversary there is a growing frustration that the voluntary nature mentioning as it is the first attempt to mandate European of the UNGPs has hindered the pace of change needed. HRDD at the regional level. By establishing mandatory of the UNGPs Meaningful improvements in conditions for workers regulation at the regional or international level, we Commission’s (EC) provides an and communities in global supply chains are deemed anticipate improvements and clarity in methodologies opportunity for insufficient, while pressure from NGOs and increasing and approaches, greater visibility on the human rights Sustainability public awareness of modern slavery, abusive working impacts of the operations of companies around the us to reflect on conditions, and child labor have intensified. world, and a push toward greater cooperation and Regulations Initiative how effective the collaboration among the private sector to address these To accelerate the pace of change, certain Together with a group of global businesses UNGPs have been impacts and provide remedy. countries have and are increasingly convened by the Thomson Reuters in contributing JTG has welcomed these potential improvements, Foundation, we have signed a statement in taking action to transform the UNGPs and, as such, we are lending our voice and influence to greater respect support of the European Commission’s (EC) into ‘hard’ national laws, resulting in an to promote such measures. Sustainable Corporate Governance Initiative. for and protection increase in mandatory human rights Read more about the statement we have signed of human rights due diligence (mHRDD) and reporting around the world. Sustainable Corporate Governance Initiative regulatory requirements. FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM – HUMAN RIGHTS RIGHTS HUMAN
64 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Vision 2030 66 UN Guiding Principles Reporting Framework Index of Answers 71 Towards 2030
65 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 Vision 2030
To commemorate the 10th anniversary of the In terms of our global sustainability strategy, “As this report demonstrates, we are setting endorsement of the UNGPs, the UN Working we have identified priority areas for each business Ensuring fairness, justice, and respect for human Group on Business and Human Rights has segment. Moreover, we have defined a set of rights is non-negotiable. While we have made a course for the future that is underpinned by launched the UNGPs10+ project to speed and targets we aim to achieve by 2030. Our targets scale up UNGPs implementation over the next are a key component of our commitment to significant progress in our efforts to integrate a steadfast commitment to respecting human ten years. Our focus is to continue the work conduct our business in a responsible manner the UNGPs into our business operations, we still we’ve started during the next decade of UNGPs and mitigate our 9 human rights salient have much work to do. We know the challenge rights. We share what progress we have made implementation. issues. We keep our existing targets under remains significant, but we are fully committed to We are committed to creating social value for review with an intention to strengthen these and identify some of the challenges we have our people, including our 58 300 employees and commitments over time. the challenge and to being a part of the solution 72 000 directly contracted growers worldwide. The UN Guiding Principles have given companies to bring about sustainable development for all. overcome – while recognizing that there are Our mission is to create, develop, and nurture across sectors a shared roadmap for respecting our unique brands to win consumer trust while human rights and have contributed significantly areas where we still have much more to do understanding and respecting the environment, to the progress made over the last ten years and the diversity of societies and individuals in raising awareness and public interest in and learn”. through our 4S model. Our Code of Conduct and the business and human rights agenda. values guide the way how we act, and we have Despite progress, there is wide recognition codified these policies into three statements that gaps in the implementation of the UNGPs we call the JT Group way: remain. To truly deliver on the 2030 Agenda for Sustainable Development, more needs 1. Act with integrity, always to be done and quickly. Ensuring human rights putting the consumer first. for all will only likely come about when the private sector, government, and civil society 2. Continue to evolve while work together. The solutions will be derived remaining committed to quality from multi-stakeholder collaboration. in all its aspects. As we look ahead to the next decade of the Suzanne Wise UNGPs, we will need to further integrate climate Senior Vice President, 3. Harness the power of diversity impacts and a gender lens more prominently into Corporate Affairs and Communications, our current human rights due diligence processes. JT International S.A. across the JT Group. Action to tackle climate change now is the action that places value on the future enjoyment
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM of human rights. – More engagement with rights-holders is required, particularly vulnerable groups, in identifying, preventing, and mitigating human rights impacts. HUMAN RIGHTS RIGHTS HUMAN
66 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Sustainability strategy of tobacco business
Strategic The UN Sustainable Focus Areas Aspirational Goals Targets Description Progress2 Development Goals
Reduced-Risk Products (RRP) offer real benefits to consumers and society. Reduced-Risk Our responsibility as a manufacturer is to continuously develop and launch At the end of 2020, we offered a choice of 6 tobacco vapor offerings We will be a total Products RRP that meet consumer expectations and to provide information on them. (T-Vapor) and/or 5 types of e-cigarettes (E-Vapor) in 27 countries. tobacco company We will lead in providing the widest range of consumer choice in the RRP category. Products offering consumers an even greater choice of and Services products by focusing on We will reduce the environmental impact of our products and packaging quality, innovation, and through design solutions, facilitating responsible collection and disposal, reduced risk potential. Product materials and consumer awareness and education. More specifically, we will reduce We will start reporting progress from 2022. and packaging our packaging (including plastic) and ensure that the remaining is 85% reusable or recyclable by 2025, rising to 100% by 2030. In total, recycled content will account for 20% of our packaging by 2025.
Zero injuries In line with our vision of zero workplace injuries, we will reduce the injury 2015 2030 rate by 25% by 2023 and 50% by 2030. (Baseline year: 2015). Recordable injury rate3 -50% -59%
2015 2030 349 600 We will be the employer Investment (MM USD) Community Between 2015 and 2030, we will invest USD 600 million to help make of choice by investing People investment1 communities inclusive and resilient, with our employees contributing in people. 300,000 volunteering hours. 2015 2030
Volunteering hours 137,882 300,000
Employer of choice We will be certified employer of choice every year in at least 60 locations by focusing on talent management, rewards, and empowerment. Countries where we are certified 60 67 FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM – HUMAN RIGHTS RIGHTS HUMAN
1 Target for Community investment is a Group-wide target. 2 Progress shown is 2020 preliminary results, except for progress for ‘Greenhouse gas emissions’ and ‘Water and waste’ which is 2019 results. See jt.com for the latest information about JT Group progress against sustainability targets. 67 3 Recordable injury rate = Recordable injuries/200,000 hours worked. Some data from the newly acquired business have been excluded, as the newly acquired business needs 18 months to integrate the JT Group Health and Safety Standards. CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Strategic The UN Sustainable Focus Areas Aspirational Goals Targets Description Progress2 Development Goals
2015 2030
GHG emissions from -17.4% -35% Greenhouse We will reduce greenhouse gas emissions from our own operations by 35% own operations gas emissions and from our direct leaf supply chain by 40% between 2015 and 2030. 2015 2030
+17.9% 4 GHG emissions from direct leaf supply chain -40%
2015 2030
Water withdrawal reduction -9.7% -15% Water and waste We will reduce water withdrawal by 15% and waste by 20% in relation to our own operations between 2015 and 2030.
We will reduce 2015 2030 environmental and social risks, and Waste reduction -6.3% -20% Supply Chain enable transparent and responsible practices across Forestry We will replace all wood from natural forests used in the tobacco curing 2015 2030 process of our directly contracted growers with renewable fuel sources by 2030. our supply chain. 5 Renewable wood sourcing 41% by 2027 100%
2018 2025 87% 100% Agricultural We will implement our Agricultural Labor Practices (ALP) program in all Leaf supplying entities reporting on ALP Labor Practices sourcing countries by 2025.
2018 2025
Leaf volumes covered by ALP 76% 100%
Supplier screening We will screen all key suppliers against environmental, social, and 2019 2023 governance criteria by 2023. 6 Screened key suppliers 64% 100%
We will ensure the We will always protect our ability to participate in public policy debate with During 2020, we engaged openly and transparently in public policy company is included Engagement the aim to achieve balanced regulation that meets societal concern and debate and made our views known to regulators, NGOs, and other Regulatory in policymaking leading supports business growth. relevant stakeholders in the countries where we operate. to fair and balanced Environment regulation and enhance and Illegal Trade our cooperation with FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM We will engage in dialogue with law enforcement agencies, with the goal to In 2020, our Anti-Illicit Trade team provided 1,117 intelligence
– governments to combat Illegal trade exchange intelligence regarding illegal tobacco products in order to support reports to law enforcement agencies, and advised 859 law illegal trade. the reduction of illegal tobacco products. enforcement officers on counterfeit recognition.
2 Progress shown above is 2020 preliminary results, except for progress for ‘Greenhouse gas emissions’ and ‘Water and waste’ which is 2019 results. See jt.com for the latest information about JT Group progress against sustainability targets. 4 The main reason for the increase in GHG emissions from our direct leaf supply chain is the increased volume sourced from Zambia and Tanzania, both of which use wood for curing that currently is predominantly non-renewable. HUMAN RIGHTS RIGHTS HUMAN We expect that the impact of initiatives to reduce leaf-related emissions will be seen from 2022 onwards, with curing barn upgrades and the increase in proportion of renewable wood used for curing in Zambia and Tanzania. 5 Based on our 2020 sustainable tree planting activities in Tanzania, Zambia, and Brazil, we estimate that we are on a path to achieve 41% renewable wood sourcing by 2027 (accounting for 7 years wood production cycle). Reduction from 59% in 2019 to 41% in 2020 can be attributed to lower tree planting and survival rates versus planned. Efforts and dedicated programs are in place to achieve 100% renewable wood supply by 2030. 68 6 The decrease from 67% in 2019 is due to ‘key supplier’ definition change, resulting in the increased number of key suppliers. However, the total number of suppliers screened has increased. CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Sustainability strategy of pharmaceutical business
Strategic The UN Sustainable Focus Areas Aspirational Goals Targets Description Progress2 Develpment Gooals
We will create innovative, In June 2020, we launched CORECTIM® Ointment 0.5%. Products original drugs to support Engaging in We will continue our efforts and investments into research and We then launched ENAROY® Tablets 2 mg and 4 mg and Services patients in the shortest R&D activities development activities of innovative drugs in specific therapeutic areas. in December 2020. Throughout the year, we spent time possible. 25.2 billion Yen on our research and development activities.
In order to develop talent and foster employees’ ethical awareness In 2020, five employees took part in our “For the Patients Project” Fostering ethical and sense of responsibility towards saving patients, we will continue as facilitators. They interviewed medical representatives and awareness to learn more about patients’ needs by engaging in dialogue with medical organized an internal online ethical awareness event. experts through our internal educational activity “For the Patients Project.”
We will strive to nurture talent development which People enables us to create first-in-class (FIC) drugs. 2015 2030
Community Between 2015 and 2030, we will invest USD 600 million to help make Investment (MM USD) 349 600 investment1 communities inclusive and resilient, with our employees contributing 300,000 volunteering hours. 2015 2030
Volunteering hours 137,882 300,000
Responsible We will conduct, among others, regular training programs for our medical After their initial training, all of our medical representatives take promotion of drugs representatives in order to provide medical professionals with appropriate a mandatory e-learning course once a month to keep their skills information on pharmaceutical products. and knowledge up-to-date. We will strictly comply Product with all relevant laws, Safety and regulations, and industry Responsibility standards in order to deliver safe drugs to patients. Greenhouse We will reduce greenhouse gas emissions from our own operations In the second quarter of 2021, we will report our progress. gas emissions by 31% between 2015 and 2030.
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1 Target for Community investment is a Group-wide target. 69 2 Progress shown is 2020 preliminary results. See jt.com for the latest information about JT Group progress against sustainability targets. CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Sustainability strategy of processed food business
Strategic The UN Sustainable Focus Areas Aspirational Goals Targets Description Progress2 Develpment Gooals
We will continue to provide In 2020, we developed a new category of ready meal to meet with high-quality, technology- Products Improvement of We will develop and provide high-value-added products growing our consumer needs demand. In total, we launched six products, driven products in response quality of life with a focus on “health,” “convenience,” and “diversity,” which could can all be served without plates and without adding water. and Services to our customer’s needs, in response to diverse consumer needs. Also, by utilizing a yeast technology, we launched six seasonings that to satisfaction and trust. can add authentic cooking feeling even after a heating process.
Enhance job We will further improve job satisfaction by promoting talent To ensure a safe workplace environment under the COVID-19 pandemic, satisfaction development in a secure and motivating workplace. we introduced full-time flexible working and no-limit remote working.
In line with our vision of zero workplace injuries, we will We will ensure workplace Zero injuries reduce injury rates by 25% by 2025 and 50% by 2030. 2018 2030 safety for our employees, (Baseline year: 2018). 2.3% 3 50% People while continuously investing Recordable injury rate in people who can contribute to enhancing corporate value. 2015 2030 Between 2015 and 2030, we will invest USD 600 million Community Investment (MM USD) 349 600 investment1 to help make communities inclusive and resilient, with our employees contributing 300,000 volunteering hours. 2015 2030
Volunteering hours 137,882 300,000
We coordinate regular inspection in outsourced and our own factories. We will promote food safety management in compliance Foster a safe Also, through internal training programs, we try to raise awareness with global food safety standards to develop food safety. and reliable to improve the quality of our products. In order to communicate with We will also enhance the way we communicate with corporate brand customers and reflect their voice to our products, we launched a new customers so that they retain trust in our food quality. online tools to share consumer feedback with all employees.
We launched 24 products with a featuring biomass ink for its on the Promote use of environmentally We will promote the use of renewable plant-based packaging in 2020. To reduce non-renewable resource use associated friendly packaging resources and reduce our use of non-renewable resources, with our bakery operations business, Saint-Germain are promoting We will reduce social and materials to reduce the environmental impact of our products. a campaign for customers who bring their own eco-bags to reduce environmental impacts the amount of plastic shopping bags used. Supply Chain and continue to deliver safe products to consumers.
FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM We will reduce the amount of waste associated with our
– Waste Japanese domestic offices by an average of 1% per year. In the second quarter of 2021, we will report our progress. 4 (Intensity target ).
Greenhouse We will reduce greenhouse gas emissions from our In the second quarter of 2021, we will report our progress. gas emissions own operations by 28% between 2015 and 2030.
HUMAN RIGHTS RIGHTS HUMAN 1 Target for Community investment is a Group-wide target. 2 Progress shown is 2020 preliminary results. See jt.com for the latest information about JT Group progress against sustainability targets. 3 Recordable injury rate = Recordable injuries/200,000 hours worked. 70 4 Intensity target = Amount of waste generation/Amount of production. CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030 UN Guiding Principles Reporting Framework Index of Answers
This index is designed to help readers quickly identify the location of answers to questions under the UN Guiding Principles Reporting Framework.
Section of the Framework Location where addressed Policy Commitment - What does the company say publicly about its commitment to respect human rights? A1 Pages 4, 6, 7, 8, 9, 14 How has the public commitment been developed? A1.1 Pages 7, 9, 10, 14, 15, 16, 17, 18, 66 Whose human rights does the public commitment address? A1.2 Pages 7, 8, 9, 14, 15, 16, 17, 20 How is the public commitment disseminated? A1.3 Pages 7, 10, 16, 17 Embedding Respect for Human Rights - How does the company demonstrate the importance it attaches to the implementation of its human rights commitment? A2 Pages 4, 6, 7, 8, 9, 10 How is day-to-day responsibility for human rights performance organized within the company, and why? A2.1 Pages 7, 14, 15, 16, 17, 18, 19, 20, 22 What kinds of human rights issues are discussed by senior management and by the Board, and why? A2.2 Pages 7, 8, 9, 12, 14, 15, 16 How are employees and contract workers made aware of the ways in which respect for human rights should inform their decisions and actions? A2.3 Pages 7, 8, 9, 14, 15, 16, 63 How does the company make clear in its business relationships the importance it places on respect for human rights? A2.4 Pages 7, 9, 12, 14, 15, 16, 17, 18 What lessons has the company learned during the reporting period about achieving respect for human rights, and what has changed as a result? A2.5 Pages 4, 7, 9, 10, 19, 20 Statement of salient issues: State the salient human rights issues associated with the company’s activities and business relationships during the reporting period. B1 Pages 12, 24 Determination of salient issues: Describe how the salient human rights issues were determined, including any input from stakeholders. B2 Pages 24 Choice of focal geographies: If reporting on the salient human rights issues focuses on particular geographies, explain how that choice was made. B3 Pages 16, 19, 24 Additional severe impacts: Identify any severe impacts on human rights that occurred or were still being addressed during the reporting period, but which fall outside B4 of the salient human rights issues, and explain how they have been addressed. Not recorded in the report FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM – HUMAN RIGHTS RIGHTS HUMAN
71 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Section of the Framework Location where addressed for each salient issue 1 - Child Labor 2 - Environmental impacts 3 - Fair Wage 4 - Forced Labor 5 - Harrassment & gender impacts Specific Policies - Does the company have any specific policies that C1 address its salient human rights issues and, if so, what are they? Page 25 Pages 8, 30 Page 33 Page 36 Page 39 How does the company make clear the relevance and significance C1.1 Pages 16, 20, 22, 25 Pages 16, 20, 22, 30 Pages 16, 20, 22, 33 Pages 16, 20, 22, 36 Pages 16, 20, 22, 39 of such policies to those who need to implement them? Stakeholder Engagement - What is the company’s approach to engagement C2 with stakeholders in relation to each salient human rights issue? Pages 25-27, 56, 57, 59 Pages 30-32, 56, 57, 59 Pages 34, 35, 56, 57, 59 Pages 36-38, 56, 57, 59 Pages 39, 40, 56, 57, 59 How does the company identify which stakeholders to engage with C2.1 Pages 25-27, 56, 57, 59 Pages 30, 32, 56, 57, 59 Pages 34, 35, 56, 57, 59 Pages 36-38, 56, 57, 59 Pages 39, 40, 56, 57, 59 in relation to each salient issue, and when and how to do so? During the reporting period, which stakeholders has the company C2.2 Pages 25-27, 56, 57, 59 Pages 30, 32, 56, 57, 59 Pages 34, 35, 56, 57, 59 Pages 36-38, 56, 57, 59 Pages 39, 40, 56, 57, 59 engaged with regarding each salient issue, and why? During the reporting period, how have the views of stakeholders influenced C2.3 Pages 27, 56, 57, 59 Pages 30-32, 56, 57, 59 Pages 34, 35, 56, 57, 59 Pages 36-38, 56, 57, 59 Pages 39, 40, 56, 57, 59 the company’s understanding of each salient issue and/or its approach to addressing it? Assessing Impacts - How does the company identify any changes C3 in the nature of each salient human rights issue over time? Page 24 Page 24 Page 24 Page 24 Page 24 During the reporting period, were there any notable trends or patterns C3.1 Page 25 Page 30 Page 33 Page 36 Pages 39, 40 in impacts related to a salient issue and, if so, what were they? During the reporting period, did any severe impacts occur that were related C3.2 Not recorded in the report Not recorded in the report Page 35 Page 38 Page 40 to a salient issue and, if so, what were they? Integrating Findings and Taking Action - How does the company integrate its findings C4 about each salient human rights issue into its decision-making processes and actions? Page 24 Page 24 Page 24 Page 24 Page 24 How are those parts of the company whose decisions and actions can affect C4.1 Page 22 Page 22 Page 22 Page 22 Page 22 the management of salient issues, involved in finding and implementing solutions? When tensions arise between the prevention or mitigation of impacts related C4.2 Not recorded in the report Not recorded in the report Not recorded in the report Not recorded in the report Not recorded in the report to a salient issue and other business objectives, how are these tensions addressed? During the reporting period, what action has the company taken to prevent C4.3 Pages 26, 27 Page 31,32 Page 34,35 Page 36,37,38 Page 39,40 or mitigate potential impacts related to each salient issue? Tracking Performance - How does the company know if its efforts to address C5 each salient human rights issue are effective in practice? Pages 26, 28 Pages 31, 32 Page 34 Page 38 Pages 39, 40 What specific examples from the reporting period illustrate whether each C5.1 Pages 28, 29 Pages 31, 32 Pages 34, 35 Page 38 Page 40 salient issue is being managed effectively? Remediation - How does the company enable effective remedy if people C6 are harmed by its actions or decisions in relation to a salient human rights issue? Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Through what means can the company receive complaints or concerns related to each salient issue? C6.1 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 How does the company know if people feel able and empowered to raise complaints or concerns? C6.2 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM
– How does the company process complaints and assess the effectiveness of outcomes? C6.3 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 During the reporting period, what were the trends and patterns in complaints or concerns C6.4 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 and their outcomes regarding each salient issue, and what lessons has the company learned? During the reporting period, did the company provide or enable remedy for any actual impacts C6.5 Page 29 Page 31 Pages 34, 35 Pages 36, 38 Page 40 related to a salient issue and, if so, what are typical or significant examples? HUMAN RIGHTS RIGHTS HUMAN
72 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
Section of the Framework Location where addressed for each salient issue 6 - Health & Safety 7 - Health Risk 8 - Non-discrimination & equality 9 - Working hours Specific Policies - Does the company have any specific policies that C1 address its salient human rights issues and, if so, what are they? Pages 9, 41 Page 48 Page 50 Page 54 How does the company make clear the relevance and significance C1.1 Pages 16, 20, 22, 41 Page 49 Pages 16, 20, 22, 50 Pages 16, 20, 22, 54 of such policies to those who need to implement them? Stakeholder Engagement - What is the company’s approach to engagement C2 with stakeholders in relation to each salient human rights issue? Pages 41, 45, 46, 47, 56, 57, 59 Pages 48, 49, 56, 57, 59 Pages 50, 51, 52, 53, 56, 57, 59 Pages 54, 56, 57, 59 How does the company identify which stakeholders to engage with C2.1 Pages 41, 45, 46, 47, 56, 57, 59 Pages 48, 49, 56, 57, 59 Pages 50, 51, 52, 53, 56, 57, 59 Pages 54, 56, 57, 59 in relation to each salient issue, and when and how to do so? During the reporting period, which stakeholders has the company C2.2 Pages 41, 45, 46, 47, 56, 57, 59 Pages 48, 49, 56, 57, 59 Pages 50, 51, 52, 53, 56, 57, 59 Pages 54, 56, 57, 59 engaged with regarding each salient issue, and why? During the reporting period, how have the views of stakeholders influenced C2.3 Pages 41, 45, 46, 47, 56, 57, 59 Pages 48, 49, 56, 57, 59 Pages 50, 51, 52, 53, 56, 57, 59 Pages 54, 56, 57, 59 the company’s understanding of each salient issue and/or its approach to addressing it? Assessing Impacts - How does the company identify any changes C3 in the nature of each salient human rights issue over time? Page 24 Page 24 Page 24 Page 24 During the reporting period, were there any notable trends or patterns C3.1 Page 43 Not recorded in the report Page 51 Page 54 in impacts related to a salient issue and, if so, what were they? During the reporting period, did any severe impacts occur that were related C3.2 Page 43 Not recorded in the report Not recorded in the report Page 54 to a salient issue and, if so, what were they? Integrating Findings and Taking Action - How does the company integrate its findings C4 about each salient human rights issue into its decision-making processes and actions? Page 24 Page 24 Page 24 Page 24 How are those parts of the company whose decisions and actions can affect C4.1 Page 22 Pages 22, 49 Page 22 Page 22 the management of salient issues, involved in finding and implementing solutions? When tensions arise between the prevention or mitigation of impacts related C4.2 Not recorded in the report Not recorded in the report Not recorded in the report Not recorded in the report to a salient issue and other business objectives, how are these tensions addressed? During the reporting period, what action has the company taken to prevent C4.3 Pages 9, 41, 42, 45, 46, 47 Page 49 Pages 50, 51, 52, 53 Page 54 or mitigate potential impacts related to each salient issue? Tracking Performance - How does the company know if its efforts to address C5 each salient human rights issue are effective in practice? Pages 43, 44, 47 Page 49 Page 53 Page 54 What specific examples from the reporting period illustrate whether each C5.1 Pages 43, 44, 47 Page 49 Page 53 Page 54 salient issue is being managed effectively? Remediation - How does the company enable effective remedy if people C6 are harmed by its actions or decisions in relation to a salient human rights issue? Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Through what means can the company receive complaints or concerns related to each salient issue? C6.1 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 How does the company know if people feel able and empowered to raise complaints or concerns? C6.2 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM
– How does the company process complaints and assess the effectiveness of outcomes? C6.3 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 During the reporting period, what were the trends and patterns in complaints or concerns C6.4 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 Pages 60, 61, 62 and their outcomes regarding each salient issue, and what lessons has the company learned? During the reporting period, did the company provide or enable remedy for any actual impacts C6.5 Page 47 Page 49 Page 53 Page 54 related to a salient issue and, if so, what are typical or significant examples? HUMAN RIGHTS RIGHTS HUMAN
73 CONTENTS INTRODUCTION STRATEGY SALIENT ISSUES ENGAGEMENT TOWARDS 2030
List of abbreviations
ADET Center Agronomy Development and Extension Training Center ALP Agricultural Labor Practices ARISE Achieving Reduction of Child Labor in Support of Education CORESTA Cooperation Centre for Scientific Research Relative to Tobacco CPAs Crop Protection Agents FAO Food and Agriculture Organization of the United Nations GAP Good Agricultural Practices GTS Green Tobacco Sickness HHPs Highly Hazardous Pesticides HRIA Human Rights Impact Assessment ILO International Labor Organization JT Japan Tobacco JT Group/JTG/Group Japan Tobacco Group JTI Japan Tobacco International MFS Minimum Forestry Standards OECD Organisation for Economic Co-operation and Development RRP Reduced-Risk Products SAQ Self-Assessment Questionnaire SCDD Supply Chain Due Diligence SCIA Supply Chain Impact Assessment SCREAM Supporting Children’s Rights through Education, the Arts and the Media STP Sustainable Tobacco Program UNGPs United Nations Guiding Principles on Business and Human Rights FROM PRINCIPLES TO PRACTICE PRACTICE TO PRINCIPLES FROM – HUMAN RIGHTS RIGHTS HUMAN
74 Thank you