Climate change affects more than just tobacco crops - it impacts our entire value chain, from raw materials to distribution. We're taking action to reduce our contribution to climate change and increase resilience to climate-related risks.
We're committed to carbon neutrality in our operations by 2030 and Net-Zero emissions across our value chain by 2050. By 2030, we'll cut emissions from our own operations by 47%, reduce Forest, Land and Agriculture (FLAG) related emissions associated with leaf and non-tobacco materials by 33% and reduce non-FLAG emissions associated with leaf and non-tobacco materials by 28% (compared to 2019). By 2050 we will reduce emissions from our own operations and non-FLAG related emissions by 90% and FLAG related emissions by 72%. Our targets are in line with the JT Group targets validated by the Science Based Targets initiative (SBTi). We also have targets to reach 50% renewable electricity by 2025, and 100% by 2040.
Proportion of renewable electricity used in 2025
Tackling climate change requires strong governance, risk management, and decisive action. We integrate climate considerations into our strategy, assess risks through scenario analysis, and implement initiatives to reduce emissions. By actively engaging with partners and suppliers, we drive collective action across our value chain. With a clear roadmap to carbon neutrality by 2030 and Net-Zero by 2050, we are transforming our operations and supply chain for a more sustainable future.
Effective governance is key to driving our climate strategy. We align with the Task Force on Climate-related Financial Disclosures (TCFD) and embed climate risks into our Enterprise Risk Management process. Led by our Sustainability Steering Committee, we integrate climate action across our business. Our Climate Transition Plan (CTP) outlines how we mitigate and adapt to climate change.
We assess climate-related risks through quantitative scenario analysis, aligning with TCFD recommendations. By modeling different global warming scenarios, we've identified key risks, including potential cost increases from carbon taxes and climate impact on tobacco growing. Our analysis helps shape risk management, emissions reduction, and adaptation measures.
We manage climate-related risks and opportunities by implementing energy efficiency measures, renewable energy sourcing, and other emissions reduction initiatives. We also look to ensure supply chain flexibility, by sourcing leaf from a combination of directly contracted growers and third-party leaf suppliers; by having geographically diverse leaf inventory management; and by building twin capacity for critical manufacturing facilities. Our approach considers short-, medium-, and long-term horizons, in-line with global climate goals.
We’re improving energy efficiency, increasing renewable energy use, and prioritizing alternative fuels and vehicles. Across our factories, offices and warehouses, we enhance energy efficiency by upgrading lighting, optimizing air conditioning and heating systems, and maximizing natural light. In many locations, we generate renewable energy on-site or purchase it through green tariffs and certificates to further reduce our carbon footprint.
Through ongoing efforts to reduce emissions, we're currently overachieving our target. As a result, we will achieve carbon neutrality for our own operations in 2028, two years earlier than originally planned.
Where not feasible to reduce emissions, we're using good quality carbon offsets to neutralize remaining emissions.
Reducing supply chain emissions is key to our climate strategy. Through responsible procurement, we collaborate with suppliers on sustainability challenges, including climate risk. We support tobacco growers with good agricultural practices, forestry management, and efficient curing methods. Engaging key suppliers via the CDP Supply Chain program also helps drive continual improvement.
We’re actively exploring ways to lower emissions across our operations - here’s how we’re making it happen.