Corporate governance is the foundation for improving the satisfaction of various stakeholders and the JT Group to continue to be a trustworthy corporate entity. We believe it is the basis for all our activities. As part of our commitment to “Good governance,” one of our materiality, we have set “Internal control” as a sustainability target to ensure proper governance in each business, which is essential for sustained growth and enhancing corporate value.

Specifically, we address aspects related to the sustainable growth of each business. Our tobacco business will always protect its ability to participate in public policy debate with the aim to achieve balanced regulation. It will also engage in dialogue with law enforcement agencies, with the goal to exchange intelligence regarding illegal tobacco products. In the pharmaceutical business, we target aspects such as “ethical awareness and a sense of responsibility towards saving patients.” For the processed food business, our targets revolve around “food safety.”

Furthermore, within the Group, we have been enhancing corporate governance by making changes to the composition of the Board of Directors, establishing the Advisory Panel on Nomination and Compensation, and reviewing the executive remuneration policy. In addition to our efforts as a group, by strengthening internal controls within each business, we aim not only for sustainable profit growth and corporate value over the medium- and long-term, but also to benefit our stakeholders and, in turn, help the economy and society move forward.

Please see the chapter on Governance of this report for details regarding governance within the Group. For sustainability targets in each business, please see Tobacco business , Pharmaceutical business and Processed food business.