Tobacco Asia

14 tobaccoasia Issue 4, 2025 July / August www.nicotineusp.com sales@nicotineusp.com NICOTINE IN ITS PUREST FORM PS: We constantly face diverse challenges, like disruptions from climate change and adverse weather, or geopolitical instability in regions where we operate, particularly in Africa, as well as complex – sometimes excessive – regulations on national and international levels. Mitigating these diverse risks remains our top priority. … While we welcome legislations promoting sustainable practices, these still could impose a significant administrative burden on companies and tobacco growers, particularly in developing countries that already face mounting economic, environmental, and social challenges. As our leaf supply chain involves tens of thousands of partners, we also have our role to play for ensuring their compliance with ESG standards and continuous progress in critical areas, such as the protection of human rights and the reduction in their environmental impact. We believe in the urgent need for evidence-based regulations and actionable plans to support the industry's efforts to bolster the resilience of farmers and their communities. Another challenge is the fact that agricul- ture is becoming less attractive to young people, especially given that tobacco production is labor-intensive, which further discourages younger farmers from pursuing this route. In some of our key sourcing countries, our farmer base is aging. This requires a transition strategy to safeguard operations against a scenario where there is limited availability to grow tobacco. TA: How is the development of your global strategies guided? Are regional leaf operations free to decide what measures they require in their specific context, or are these decisions prescribed centrally [from Geneva]? PS: JTI's global strategies are guided by a centralized framework, leveraging tools like SAP Integrated Business Planning to ensure end-to- end supply chain integration. Our central material planning organization and standardized processes drive the alignment across regions. Regional leaf operations nevertheless have flexibility to implement measures that are tailored to local needs, supported by close collaboration with central functions. They also receive training to adopt global tools and solutions where it makes sense. However, key decisions, including compli- ance with ESG standards and strategic supplier relationships, are managed centrally to maintain consistency, efficiency, and quality across our global supply chain. "JTI's overall sustainability framework is based on three pillars: product, people, and planet."

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