Our tobacco business sets out specific targets, namely “RRP (Reduced-Risk Products)*,” “Transparency in reduced-risk science” and “Youth access prevention.”

In the tobacco business, we consider our mission is to provide a diverse range of options that meet the needs of each individual consumer at a high standard. To achieve this, it is necessary to expand product categories considering changes in society, in addition to conventional combustibles. We are aware that there are societal expectations for RRP related to the potential to reduce the risks associated with smoking. To meet these expectations and enable more consumers to choose our products, we have “RRP” as one of the targets, to drive its geographical expansion. Simultaneously, in order for consumers to properly evaluate our RRP, it is essential to disseminate evidence-based information, hence we have set “Transparency in reduced-risk science” as a target.

Additionally, the Group believes that minors should not use tobacco/nicotine products, and therefore, our consumers are only adults. In our tobacco business, we have already been implementing various measures to prevent underage smoking, but it continues to be an important issue for the sustainable growth of society where our business is also present. With this understanding, we have set “Youth access prevention” as a target. Not only will we continue to provide ongoing training to our sales representatives, but we will also collaborate with our partners to address this issue.

Please see Tobacco business for details on specific initiatives and sustainability targets.

Notes:

The word, consumers, used in the context of the tobacco business means adult consumers. Minimum legal age for smoking varies in accordance with the legislation in each country.

Our pharmaceutical business has been aiming to create groundbreaking original drugs that are globally recognized and deliver them to patients in a swift manner, as also stipulated in our previous sustainability strategy. The importance of this goal remains unchanged, and for “Creating first-in-class drugs,” we will continue to put our efforts and investments in research and development activities for innovation in specific therapeutic areas.

Please see Pharmaceutical business for details on specific initiatives and sustainability targets.

Our processed food business has set “Food inclusion” as a target. This demonstrates our will to contribute to a society where everyone can enjoy any food freely and a good taste, while embracing diverse perspectives and values.

Due to the changes in external environments and lifestyles, consumers’ values and interests have become more diverse. We aim to achieve this target by further advancing efforts to develop and provide high-value-added products, such as allergy-friendly products, products that do not use ingredients derived from animals, or products that satisfy other preferences including health-consciousness.

Please see Processed food business for details on specific initiatives and sustainability targets.

5 sustainability targets to deliver “Value creation that exceeds consumer expectations”

Materiality		Target items	Targets
		Reduced-Risk Products	Our tobacco business will make its RRP* available in an increasing number of countries worldwide.
		Transparency in Reduced Risk Science	In our tobacco business, we will ensure that reduced risk claims are substantiated and that we are transparent about the risks of our products.
		Youth Access Prevention (YAP)	In our tobacco business, we will continue deliver training on YAP to our marketing and sales force. We will also continue to work with our trading partners to ensure compliance with its YAP pillars.
		Creating first-in-class drugs	In our pharmaceutical business, we will continue our efforts and investments in research and development activities for innovative drugs in specific therapeutic areas.
		Food inclusion	In our processed food business, we will be aware of the diversifying values and interests of our consumers. Most of all so that our consumers can enjoy delicious food, we will not only exclude certain raw materials, but also develop and provide high-value-added products, such as allergy-friendly products, products that do not use ingredients derived from animals, or products that are health-conscious and satisfy other preferences.

*

RRP (Reduced-Risk Products): Products with the potential to reduce the risks associated with smoking