Compliance & Corporate Social Responsibility

Environment, Health & Safety

Function

Sub-function

Standard: EHS in Transactions

Corporate Policies & Procedures
Version 3, effective April 2017
Standard: EHS in Transactions

CONTENTS

A. PURPOSE & BENEFITS .......................................................................................................................... 3

B. SCOPE ..................................................................................................................................................... 3
C. STANDARD REQUIREMENTS ................................................................................................................ 3
D. DEFINITIONS ........................................................................................................................................... 3
E. ROLES & RESPONSIBILITIES ................................................................................................................ 3
F. STANDARD OWNER ............................................................................................................................... 3
G. DOCUMENT MANAGEMENT .................................................................................................................. 4
H. REFERENCES ......................................................................................................................................... 4
I. APPENDIX ............................................................................................................................................... 4

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Standard: EHS in Transactions

A. PURPOSE & BENEFITS

Acquisitions, leasing, and divestitures of businesses, or property can present significant EHS risks to the
company. Assessing the risks associated with such transactions and taking action to minimize them will
minimize any potential future liabilities.

The purpose of this standard is to manage business and property transactions to minimize EHS risks and
associated liabilities.

B. SCOPE
This standard applies to all JTI operations involved in the acquisition or divestiture of businesses, land, or
properties (including leasing).

C. STANDARD REQUIREMENTS
JTI operations shall implement a program to:

Identify & Assess

1. Obtain appropriate EHS information about the business, or property during the due diligence phase
of the transaction. Relevant information includes but is not limited to, EHS compliance, historical site
use, use and control of materials on site and EHS data (such as soil and groundwater investigation
results).
2. Identify and assess, during the due diligence phase of each transaction, the EHS risks likely to arise
during the predicted life of the property, product or process;
3. Estimate, during the due diligence phase of acquisitions and leasing, the costs of bringing
manufacturing processes, facilities and businesses into compliance with local regulatory
requirements and the Global EHS Standards;
4. Estimate potential future EHS liabilities associated with divestitures and identify options for
managing or discharging such EHS liabilities;

Control
1. Integrate EHS risks and related costs into the decision-making process for acquisition and
divestitures;
2. After transactions, manage the operational EHS risks of acquisitions and any residual EHS risks of
divestitures and the effects on people and the communities affected;

Review
Carry out regular reviews of completed transactions to assess the effectiveness of arrangements for
assessing and managing EHS risks associated with business, and property transactions.

D. DEFINITIONS
N/A

E. ROLES & RESPONSIBILITIES

Entity CFO
 Ensures identification, assessment, control and review processes are implemented as required by
this standard.
 Establishes escalation procedures and defines corrective actions for any infringement of the
standard

F. STANDARD OWNER
The owner of this standard is EHS VP, Global Environment Health & Safety.

Any exception to this procedure must be duly justified and documented by the requestor and
authorized by the standard owner.

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Standard: EHS in Transactions

G. DOCUMENT MANAGEMENT
Contact Person

Questions and feedback regarding this standard should be submitted to Peter Mitchell, EHS Performance
Director.

Review Cycle

The Standard Owner, or delegate, will review and update this procedure at least annually or where changes
in business environment demand such a review.

Document History

Version Date of Issue Effective date Purpose of change

1 Feb 2003 Feb 2003 New release

2 May 2016 May 2016 Format update

3 April 2017 April 2017 Rename the standard

H. REFERENCES

N/A

I. APPENDIX
N/A

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