Yoshimasa Mukai, Director of Sustainability Management, Japan Tobacco Inc.

Balancing business growth and sustainability to create a spiritually enriched society

Japan Tobacco Inc. Sustainability Management Department　Yoshimasa Mukai(Mukai Yoshimasa)

■ Profile

Born in Uji, Kyoto Prefecture. Joined Japan Tobacco Inc. in 1992. After working at the Otsu and Hirakata sales offices, he was engaged in PR and disclosure-related work at the head office for approximately 10 years from 1996. From 2009, he was assigned to JT International Internal Audit (Netherlands) for approximately four years. After returning to Japan, he held positions such as General Manager of Planning in the Beverage Business Division and General Manager of the Corporate Planning Division before assuming his current position in January 2019.

As the JT Group continues to grow, the Sustainability Management Department values ​​connections with people and communities and aims to build a sustainable society. Since its establishment in 2019, Yoshimasa Mukai has been the first general manager of the department and has been developing numerous sustainability-related initiatives. We spoke to him about specific initiatives toward a sustainable society and future challenges.

During my university years, I watched movies all the time. I would go to the video store and rent every title from shelf to shelf, and I also worked part-time at the movie theater, so there was almost no movie I hadn't seen at the time. I wondered if I could channel this passion into something, and I began to yearn to make films. At the time, with the bubble economy as its backdrop, many companies supported cultural and artistic activities, and JT also hosted music events and film productions. Rather than being attracted to JT as a tobacco company, I was drawn to the company out of curiosity about the possibility of making a film. Then, when I got to the interview stage, I sensed a desire to try something new in addition to their core domestic tobacco business, amid a climate of declining smoking rates. I felt that the stable business foundation of a large corporation gave them the flexibility to embrace new ideas, and I was drawn to that exciting prospect and decided to join the company.

■Business development and solving social issues are connected.

　Five years ago, in 2019, the Sustainability Management Department was established, replacing the CSR (Corporate Social Responsibility) Promotion Department, and I was appointed its first general manager. Prior to taking up the position, I had had almost no experience in sustainability-related initiatives, so this was a new challenge for me. However, as I worked on my job, I gradually found similarities with the risk management I had previously been in charge of. Don't you think there are similarities between risk management, which predicts the future and takes measures to ensure the smooth continued development of the company, and sustainability management, which works to resolve issues such as the environment and human rights so that nature, society, and the company can all be sustainable? Thanks to this, I felt a renewed sense of fulfillment in leveraging my past experience to take on new challenges.

Since taking office, I have focused on getting all employees to consider sustainability initiatives as their own responsibility. In the past, CSR was seen as something that "must be done" in order to gain external recognition. Business and CSR were considered separate entities, with the idea being that "business should be conducted as business and profits earned from that should be used for CSR." However, with today's thinking on ESG and SDGs, this is no longer the case; solving social issues and developing business are linked. Sustainability must be properly incorporated into business strategies. As awareness of sustainability has increased around the world in line with this change in thinking, I feel that the emergence of an internal mindset of "putting into practice sustainability activities that only JT can do" is a major step forward.

■ Addressing human rights issues and tackling challenges to realize spiritual richness

　Last year, JT formulated its purpose, "More Richer Lives," to clarify the direction for society and the JT Group to remain sustainable in a rapidly changing society. To realize this purpose, we established five material issues (important challenges) based on the idea that people's lives and corporate activities can only be sustainable if nature and society are sustainable. These issues are: coexistence with nature, value creation that exceeds customer expectations, investment in and growth opportunities for human resources, responsible supply chain management, and good governance. We expect all employees to be aware of and proactively implement initiatives to address these material issues.

　Furthermore, all of these material issues share the common concept of "respect for human rights." Many of the regions in which JT operates include countries with high human rights risks. For example, tobacco leaf production in Africa and elsewhere poses a risk of child labor. Child labor poses fundamental challenges, such as children losing educational opportunities due to labor, and tobacco farmers are unable to adequately pay their workers. To address these issues, we provide educational support, such as building local schools, and financial support to tobacco farmers. Corporate logic, such as severing ties with business partners with human rights issues in order to avoid risks, will not solve the problems. We must consider the perspective of those affected and seek fundamental solutions. We believe that addressing these human rights issues is also important in pursuing a sustainable society.

Of course, there are times when JT alone cannot make up for the shortcomings, so we would like to cooperate with other companies and NPOs and work together to achieve sustainability.

■ The key to approaching society is making sustainability activities visible

　Going forward, I would like to publicize more widely what kind of sustainability initiatives JT is currently undertaking and increase the trust of various stakeholders as a company that contributes to these areas. In addition to the tobacco business, JT also operates pharmaceutical and processed food businesses, but opportunities to reach many people would be limited if we only did so through products and services. To address this issue, I believe that by communicating the unique value of the JT Group from a sustainability perspective, we can convey the appeal of the company to more stakeholders. In recent years, the criteria for evaluating companies have shifted beyond profit margins to also consider contributions to solving social issues through ESG initiatives. I would like to continue to develop ways to make our sustainability activities more visible.

■Message to university students

　I would like you to also turn your eyes to the world. I was posted to the Netherlands for about four years, and the experience of seeing Japan from overseas was very educational. Don't be afraid of changes in your environment, and if you get the chance, be sure to jump in. With a little curiosity and flexibility, devote yourself to what you love and enjoy a fulfilling university life.

Interviewed by Student Newspaper Online on May 14, 2024 by Minami Yoshikawa, a fourth-year student at Sophia University