T OBACCO ’ S H IDDEN C HILDREN 114

T OBACCO ’ S H IDDEN C HILDREN 114

Regarding expectations for and monitoring of its suppliers, BAT relies on a program called the Social Responsibility in Tobacco Production (SRTP) program, adopted by a number of tobacco manufacturers (see Imperial Tobacco Group, below), which sets minimum performance levels for contracted leaf growers on agricultural practices as well as labor, child labor, occupational health, and other issues. 395 Concerning child labor, since 2012 the SRTP program has included the statement: “formal reference is given to the treatment of child labour in the context of ILO conventions 138 and 182.” 396

BAT requires all of its suppliers, including in the US, to act in accordance with the SRTP program and educate farmers and workers on the program and monitor progress. 397 Under the program, suppliers carry out self-assessments and a monitoring group conducts assessments of suppliers’ reports. 398 BAT states that the 2013 SRTP child labor score for the company’s US suppliers was 98 percent. 399

Imperial Tobacco Group According to its website, the UK-based Imperial Tobacco Group operates in more than 160 countries worldwide and manufactures cigarette brands that “are among the most popular in the world,” including Davidoff and Gauloises . 400 The company also states it is “the global leader in fine cut tobacco and papers” and has exclusive rights to sell all luxury Cuban cigars. 401 Imperial Tobacco Group’s 2013 annual report recorded a 5.8 percent global market share. 402

Imperial Tobacco Group does not have a separate child labor policy but stated in a January 2014 letter to Human Rights Watch that the company and its subsidiaries do not employ

395 Letter from Wheaton and, BAT, “Social Responsibility in Tobacco Programme,” http://www.bat.com/srtp (accessed April 15, 2014).

396 “Social Responsibility in Tobacco Programme.” 397 Letter from Wheaton. 398 BAT, “Social Responsibility in Tobacco Programme.” 399 Letter from Wheaton. 400 Imperial Tobacco Group, “Group at a Glance,” http://www.imperial-tobacco.com/index.asp?page=48 and “Our Optimized Portfolio,” http://www.imperial-tobacco.com/index.asp?page=33. According to its 2013 Annual Report, Imperial

Tobacco Group includes the wholly-owned Imperial Tobacco Limited, whose principal activity is “manufacture, marketing and sale of tobacco products in the UK” and Imperial Tobacco International Limited, whose principal activity is “export and marketing of tobacco products.” “Annual Report and Accounts 2013, Supplementary Information,” December 10, 2013, http://www.imperial-tobacco.com/files/financial/reports/ar2013/index.asp?pageid=52 (accessed February 2, 2014). 401 Imperial Tobacco Group, “Group at a Glance.”

402 Imperial Tobacco Group, “Annual Report and Accounts.”

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a child to economic exploitation, is hazardous, interferes with the child’s education, or is harmful to a child’s health or physical, mental or social development. 403 It is not clear from the information available to Human Rights Watch how Imperial Tobacco Group applies these definitions to actual working conditions in its supply chain, including which types of work Imperial Tobacco Group considers harmful or hazardous.

Imperial Tobacco Group stated that it had not received reports of child labor concerning its suppliers, but that “given the global incidence of child labour in agricultural supply chains, we understand that it is an issue that we must address.” 404 Imperial Tobacco Group participates in the Social Responsibility in Tobacco Production (SRTP or SRiTP) program, described above, which applies to all of its global suppliers, and also gives guidance to and measures suppliers on adherence to ILO Minimum Age and Worst Forms of Child Labor Conventions. Imperial Tobacco Group monitors suppliers’ self-assessments and adherence to the SRiTP program’s standards. 405

Imperial Tobacco Group reported that less than 5 percent of the tobacco used in its products is purchased in the United States through international leaf merchants. Imperial Tobacco Group representatives declined to meet with Human Rights Watch. 406

Japan Tobacco Group Japan Tobacco Group (JT) described itself as “a leading global tobacco company, with operations in over 70 countries, and an estimated 15 percent global market share, outside of China.” 407 Its leading brands include Winston , Camel , Mevius (formerly Mild Seven ), and Benson & Hedges. JT’s businesses include a Japanese domestic tobacco business and Japan Tobacco International (JTI), headquartered in Geneva. 408

403 Letter from Kristy Mann, Senior CR Engagement Manager, Imperial Tobacco Group, to Human Rights Watch January 22, 2014.

404 Ibid. 405 Letter from Mann, and Imperial Tobacco Group, “Leaf Supplier Program,” http://www.imperial- tobacco.com/index.asp?page=728 (accessed February 2, 2014).

406 Letter from Mann. 407 Japan Tobacco Group (JT), “Annual Report 2013, Year Ended March 2013,” http://www.jt.com/investors/results/annual_report/pdf/annual2013_E_all.pdf (accessed February 3, 2014), p. 4.

408 JTI acquired R.J. Reynolds Nabisco's non-U.S. tobacco operations in 1999. JT Group, “International Tobacco Business,” http://www.jt.com/about/division/tobacco_global/index.html (accessed February 3, 2014).