Toward a Sustainable Japan--Corporations at Work Article Series No. 44
Delivering 'Irreplaceable Delight' Through Environmental Protection Activities (Japan Tobacco Inc.)
http://www.jti.co.jp/JTI/Welcome.html (Japanese)

Tobacco originated in Central and South America, and made its first appearance in Western history in 1492, when Columbus reached the Island of San Salvador in the West Indies. It is recorded that tobacco leaves were one of the gifts the native people of the island gave to a party from Columbus's ships. While there are varying opinions about when tobacco was brought to Japan, it is widely accepted that it was introduced to Japan through trade with European countries around 1600. In 2005, smoking rates among Japanese people were 46 percent for adult males and 14 percent for adult females.

Japan Tobacco Inc. (JT) was established in 1985 and took over all the businesses formerly run by the Japan Monopoly Corporation. JT is now mainly involved in the tobacco, pharmaceutical and foodstuff businesses. In FY 2005, domestic sales of cigarettes by JT were 189.4 billion, accounting for 66 percent of total cigarette sales in Japan, the fourth largest market in the world. JT is expanding its tobacco business in about 120 countries overseas through JT International S.A., and its total cigarette sales in and out of Japan rank third in the world. Sales of the JT group - including 157 subsidiaries in the fields of tobacco, pharmaceuticals and foodstuffs - totaled to 4,637.6 billion yen (US$36.9 billion) in FY2005.

One of JT's aims is to provide an environment where smokers and non-smokers can co-exist in harmony. To this end, it has been developing various activities through its "Smokers' Style" initiative, which it pursues in cooperation with municipalities and related organizations. Activities include promoting separate smoking and non-smoking areas in public spaces such as train stations and airports. Also, it runs a campaign to improve smoking manners through the catchphrase "It all depends on your awareness of smoking manners." JT's advertisements with this phrase appear in various media such as on TV, in newspapers, on train posters and on paper book-covers.

Meanwhile, JT employees continue to join local citizens in cleanup activities. In FY2005, the company created a slogan, "Pick up [trash], and you will [come to] love your city," to further promote such community-based cleanup activities.

In 2003, JT established the Tobacco Branding Declaration to clarify its fundamental policy in conducting its tobacco business. This declaration consists of three sections: Our Recognition on Tobacco, Tobacco Business Mission, and Tobacco Business Management Guidelines, which specifies guidelines to promote social responsibility.
http://www.jti.co.jp/JTI_E/group-mission/tobacco_branding/index.html

Efforts to Protect the Global Environment

Since the establishment of the JT Global Environment Charter in 1995, JT has been responding to global environmental issues. In 2003, the company expanded the scope of its environmental management guidelines, which are now applied to JT Group companies. In 2004, it updated the JT Global Environment Charter to create the JT Group Environment Charter. The selection of group companies to which environmental management was to be introduced was based on the significance of their environmental impacts through business activities, products and services, together with the size and operation methods of their business offices, factories, and so on. As of March 2005, JT Group environmental management is being applied by 20 group companies in Japan, including JT itself, and one overseas company.

JT understands that its tobacco and food businesses rely on the blessings of nature, since the main components of cigarettes are leaf tobacco and paper, and the raw materials of its food and drink products are vegetables, tea leaves and other plants. To show its appreciation for the blessings of nature and to fulfill its corporate social responsibility, JT considers efforts to protect the environment as one of the priority issues in its management.

Environmental Efforts in the Tobacco Business

JT operates every phase of its tobacco business in an environment-friendly manner. Most materials the company needs to produce cigarettes are made of plants: tobacco leaves for cut tobacco, hemp for paper to roll cut tobacco, and wood for filters and tip papers.

Raw Material Procurement

Regarding tobacco leaf production, JT encourages leaf tobacco growers to use high-quality compost and organic compound fertilizers. Growers, meanwhile, are stepping up efforts to secure high-quality compost. To produce a reliable supply of leaf tobacco and to minimize the negative impacts of tobacco plantations on growers' health and the surrounding environment, JT cooperates with its tobacco farmers in promoting minimum use and proper handling of agrochemicals and used containers.

As for the materials used in other components, the company has established green procurement standards and briefed suppliers about them. Currently, material suppliers are selected based on a consideration of their environmental management in addition to conventional evaluation items such as quality, cost and supply capacity. Therefore, those companies who are proactively involved in environment protection activities are given priority over those who are not.

Packaging

The packaging of cigarette cartons (10 boxes per carton) was changed in 2000. Cartons were formerly packaged in paper boxes with plastic film; the cartons are now parceled using only paper sheets. The number of cigarette brands using this kind of parcel packaging has also been increased. This has reduced the amount of plastic used per carton parcel by 100 percent and paper by 59 percent in terms of weight.

Production

Having acquired ISO 14001 certification, JT's tobacco processing factories strive to slash energy and water consumption and CO2 emissions. ISO certification also addresses the issues of waste volume and recycling rate. So far, 13 plants have achieved "zero emission" of wastes.

Distribution and Sales

JT strives to reduce environmental impacts from the distribution process by promoting a modal shift from trucks to rail and ships, and by introducing low-emission vehicles to its fleet. The use of low-emission vehicles for sales activities has also been expanded. In addition, posters, stickers and other sales promotion tools are made from materials not containing vinyl chloride and/or recycled-paper mixtures.

Afforestation Project for Improving the Natural Environment

In March 2005, JT launched an afforestation/forest conservation project in an area of about 50 hectares in the vicinity of an ancient pilgrimage route, the Kumano Kodo, located in Nakahechi-cho, Tanabe City, Wakayama Prefecture, in the Kansai region. The Kumano Kodo is part of a World Heritage Site designated in 2004, the Sacred Sites and Pilgrimage Routes in the Kii Mountain Range. Plans call for planting about 180,000 trees in the JT Forest in Nakahechi during a five-year period. Meanwhile, JT plans to continue other forest conservation activities, such as clearing underbrush and thinning forests, for 10 years through 2015.
http://www.jti.co.jp/JTI_E/Release/04/no28.html
http://www.kumadoco.net/kodo_eng/about/index.html (about Kumano Kodo)

The project was prompted by a strong commitment on the part of JT to contribute not only to reducing the environmental impacts caused by its corporate activities but also to proactively improve the natural environment.

Before selecting planting sites, JT set several conditions, such as the need for a relatively large area and the potential for participation in tree planting activities by a significant number of employees, their family members and even local people. JT's expectation is that firsthand experience of the hard work involved will enlighten employees to the importance of the global environment and encourage them to take other voluntary actions to protect the environment. In addition, JT hopes that local residents will feel a commitment to the trees they planted and continue maintaining and protecting the forest even after the 10-year project contract expires.

At the tree-planting site, JT holds a variety of interactive events every summer and fall, such as tree planting and underbrush clearing. In 2005, about 250 employees and local residents got together to plant trees in March, and some 100 participants removed weeds in September. Some employees say that working in nature brings them a sense of fulfillment, and others that they look forward to seeing the young trees grow.

Following this initiative in the Kansai region, JT began another afforestation/forest conservation project in the Kanto region in May 2006. This 5-year project, called JT's Forest in Kosuge, is being carried out in an area of about 13 hectares in Kosuge village, Kitatsuru-gun, Yamanashi Prefecture.

In this project, JT is participating in an attempt by Yamanashi prefecture and Kosuge village to create a mixed forest by planting broad-leaved trees, such as zelkova and maple, among existing coniferous trees. The tree-planting area is in the watershed of water resources used by the Tokyo metropolitan area, and this initiative is expected to upgrade these resources. Moreover, by enhancing the multiple functions of the forest, the project is also expected to contribute to alleviating global warming and preserving the ecosystem.

Better Communications

JT has been publishing its annual JT Environmental Report since FY1997. Starting with the FY2005 issue, JT renamed this report the JT Social and Environmental Report, expanding its scope to include the company's social activities, without limiting the environmental reporting. http://www.jti.co.jp/JTI_E/environ/report_2005.html JT Social & Environmental Report 2005

Conclusion

As a global company, JT regards its continued growth through delivering "irreplaceable delight" as its primary corporate social responsibility. JT believes that activities to improve the natural environment are also an indispensable part of this process. While continuing to extend the scope of companies subject to environmental management by the JT Group, JT plans to vigorously pursue a variety of environmental activities, such as reducing environmental impacts caused by business activities, developing environment-friendly products, offering environmental education to employees, and promoting afforestation both at home and abroad.

(Staff writer Eriko Saijo)

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