Tackle climate change

Climate change is among the greatest threats society faces. There is broad scientific consensus on the urgent need to reduce greenhouse gas (GHG) emissions to limit the rise in the global temperature to 1.5ºC above preindustrial levels, aligned with the Paris Agreement.

Purposefully phase out cigarettes

Purposefully phase out cigarettes
Maximize the benefits of smoke-free products

Maximize the benefits of smoke-free products
Seek net positive impact in wellness and healthcare

Seek net positive impact in wellness and healthcare
Reduce post-consumer waste

Reduce post-consumer waste
Foster an empowered and inclusive workplace

Foster an empowered and inclusive workplace
Improve the quality of life of people in our supply chain

Improve the quality of life of people in our supply chain
Tackle climate change

Tackle climate change
Preserve nature

Preserve nature

tackle climate change roadmap goals

Our 2025 Roadmap goal

see our full 2025 roadmap

TACKLE CLIMATE CHANGE

Achieve carbon neutrality in our operations and accelerate our decarbonization toward net zero across our value chain.

Key performance indicators to track our progress

Achieve carbon neutrality in our operations and accelerate our decarbonization toward net zero across our value chain

Progress on track

In 2023, our CO₂e scope 1+2 emissions decreased by 36 percent versus our 2019 baseline and our net CO₂e scope 1+2+3 emissions decreased by 13 percent within the same time frame, which keeps us on track to reach carbon neutrality in our direct operations by 2025 and net zero across our value chain by 2040.*

*Including Swedish Match.

fundamentals background

See full performance metrics

Learn more about PMI’s Sustainability Index in our Integrated Report 2023. See the full performance metrics and related footnotes here.

The right thing to do

The climate crisis, as acknowledged by the international community, threatens the livelihoods of all, but especially those most vulnerable, exacerbating inequalities.

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The right thing to do

The climate crisis, as acknowledged by the international community, threatens the livelihoods of all, but especially those most vulnerable, exacerbating inequalities. It impacts human rights, biodiversity, water access, global health, and food security, and intensifies environmental threats such as ecosystem degradation, drought, flooding, and desertification. While science tells us that climate change is irrefutable and unavoidable, it also tells us it is not too late to limit global warming to the 1.5^oC threshold which is considered the point beyond which climate-related impacts will be catastrophic.

Achieving this goal requires fundamentally transforming how we grow food crops, use land, transport goods, and power our economies. Implementing carbon emissions reduction initiatives throughout our direct and indirect operations can contribute to the mitigation of global climate change and its effects, especially in regions most vulnerable to climate-related disruptions. Our commitment to climate action can also serve as a catalyst and encourage others—especially those connected to our value chain—to adopt strategies that can amplify the overall impact of efforts deployed to combat climate change.

The business case

Climate change and its effects can threaten our business continuity and endanger our supply chain—especially our agricultural supply chain which is particularly sensitive to abrupt climate variations.

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The business case

Climate change and its effects can threaten our business continuity and endanger our supply chain—especially our agricultural supply chain which is particularly sensitive to abrupt climate variations. Furthermore, it can present risks with direct impacts on our physical infrastructure, in particular our manufacturing sites. It can also imperil business growth by exacerbating systems-level disruptions affecting various stakeholders, including customers, employees, and communities.

For that, we put in place policies and practices that allow us to identify climate-related risks, anticipate and respond to climate-related regulation in a timely way, support climate policies, and seize climate-related economic opportunities.

Developing and implementing robust mitigation and adaptation strategies can minimize the extent to which climate change impacts our business. One fundamental strategy is to reduce our GHG emissions, which allows us to increase efficiency, deliver energy savings, and boost profitability by promoting fewer inputs used over outputs.

tackle climate change roadmap goals

Our progress in 2023

Read more in our Integrated Report

low carbon transition plan thumbnail

Environmental sustainability—PMI’s climate strategy

CARBON NEUTRAL SH THUMB 1780x1200 - CLEAN

How do you make a carbon-neutral factory?

Preserve bottom

Preserve nature

How PMI is working on a zero emissions office

My name is Frederic Voegele.

My current position is Manager Engineering Department,

here in Neuchâtel at PMP SA factory.

Every day I'm pleased to discover new things that are happening here at PMP SA.

Last year we were proud to receive the carbon-neutral factory label.

In order to run a facility like our facility, you mainly need electricity,

you need heat, and you need steam.

For the electricity, we are using green power.

It's a sustainable source of electricity.

Then, for the cold, we make use

of our beautiful location beside the lake so we are pumping the lake water

at 60-meter depth at 6 degrees to cool our entire facility.

The cool water that we use to cool down our installation is being heated.

So prior to ejecting it in the lake, we re-use the calories in that water.

We are able to heat our entire facility without burning natural gasses anymore.

The last source of energy where we need to burn natural gas is to generate steam.

This project is there

to use our organic waste, paper, wood, cigarettes, tobacco, to convert them into combustible gas

that will be used to generate steam, instead of using natural gas.

With those two projects, more or less nine million investment,

we'll be in a position not only to be certified carbon-neutral,

but to really have zero emission.

As a big company we have to pioneer and show the way for others to follow.

Reduce post-consumer waste

Supply chain landscape

Managing our supply chain sustainably

PMI Corporate - Sustainability - LCTP - Infographics-Master_LITE2-01

Decarbonizing our value chain 7 min read

PMI receives fourth consecutive CDP “triple-A” rating for its sustainability leadership

A field with rows of tobacco plants and mountains in the background.

Promoting climate justice in global supply chains 5 mins to read

Sukorejo case story pic 2

Focus on: Harnessing green energy in Indonesia 4 min read

Environmental Commitment

Responsible Sourcing Principles

Good Agricultural Practices

2 min read Read More

Zero Deforestation Manifesto

Sustainable Design Framework

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Low-Carbon Transition Plan

Code of Conduct

Climate Justice Briefing Paper

Sustainability KPI protocol 2023

PMI CDP Climate Change 2022 Submission

We plan to focus 2024 on furthering Swedish Match’s integration into our low-carbon transition plan, leveraging on PMI’s well established carbon emission reduction strategies in line with our net-zero journey, as well as re-validating our SBTi commitments. Furthermore, reducing our scope 3 industrial emissions will continue to be a priority. Our efforts will continue to focus on reducing GHG emissions from those categories with the higher contributions to our footprint, looking into de-risking our glide path towards our 2030 ambitions. Beyond our reduction strategies, during 2024 we will work on revising our Environmental Commitment, to strengthen governance, as well as setting stricter criteria linked to our compensation strategy that can also improve our transparency. Noting rising regulatory requirements linked to tackling climate change and environmental transparency, we will work on setting up internal processes to respond more efficiently and respond to mandatory non-financial disclosures.

Global Technical Operations (GTO), as a function that oversees a significant portion of our value chain from tobacco sourcing to manufacturing of our consumables, is a major contributor to our scope 1, 2, and 3 emissions reduction. In 2024 we will focus our efforts on advancing GTO’s contribution to PMI’s scope 1+2 related ambitions, with a strong focus on technological advancements to decarbonize PMI factories and reduce GHG emissions in PMI’s offices, warehouses and fleet, as well as drive reductions across our tobacco sector to deliver on PMI’s recently approved FLAG emission reduction targets. Through close collaboration with our tobacco suppliers, we aim to work on innovative, effective, and cost-efficient solutions to reduce emission from fertilizer, increasing efficiency in fuel usage, and maintaining the achievement in shifting to sustainable curing fuel.

We will maintain efforts in place to reduce our scope 3 emissions, with a focus on continuing to deploy our zero deforestation program, which significantly contributes to our broader initiatives to tackle climate change. In addition, we plan to expand the Sustainability Accelerator program we piloted with six selected suppliers in 2023 to the broader supply chain. We will include direct and indirect materials and services suppliers and support them in delivering decarbonization projects.

Additionally, we believe that standardizing methodologies and tools can accelerate decarbonization and we will continue encouraging our suppliers to disclose their emissions and associated reduction initiatives through common platforms such as CDP, EcoVadis, and RBA.

We are exploring the possibility of incorporating a carbon shadow price in supplier tendering process for direct materials, as we think it will allow us to make balanced choices that contribute to decarbonization of our scope 3 and support our business strategy.

This online content about our Integrated Report should be read in conjunction with PMI’s Integrated Report 2023. This report includes metrics that are subject to measurement uncertainties due to inherent limitations in the nature and methods for data collection and measurement. The precision of different collection and measurement techniques may also vary. This report includes data or information obtained from external sources or third parties. Unless otherwise indicated, the data contained herein cover our operations worldwide for the full calendar year 2023 or reflect the status as of December 31, 2023. Where not specified, data comes from PMI financials, nonfinancials, or estimates. Unless explicitly stated, the data, information, and aspirations referenced in online content do not incorporate PMI’s wellness and healthcare business, Vectura Fertin Pharma. Regarding the Swedish Match acquisition, completed late 2022, unless otherwise indicated, online content does not include information pertaining to their sustainability performance. Please also refer to "This report at a glance" on page 2 of PMI's Integrated Report 2023 for more information. Aspirational targets and goals do not constitute financial projections, and achievement of future results is subject to risks, uncertainties and inaccurate assumptions, as outlined in our forward-looking and cautionary statements on page 214. In PMI's Integrated Report 2023 and in related communications, the terms “materiality,” “material,” and similar terms are defined in the referenced sustainability standards and are not meant to correspond to the concept of materiality under the U.S. securities laws and/or disclosures required by the U.S. Securities and Exchange Commission.

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