As Philip Morris International Inc. (PMI) (NYSE: PM) strives to remain at the forefront of a fast-evolving environmental, social, and governance (ESG) reporting landscape, the company today released its first-ever TCFD Report to respond to the implementation guidance of the Task Force on Climate-related Financial Disclosures (TCFD). The report’s findings were informed by a structured Climate Change Risk and Opportunity (CCRO) assessment that PMI conducted in 2022, with guidance from an external expert organization and in line with TCFD’s recommendations, to identify relevant climate-related risks and opportunities.
“Stakeholder expectations of businesses are shifting, and regulatory developments are moving forward at pace,” explained Emmanuel Babeau, Chief Financial Officer. “Companies are expected to demonstrate commendable behavior and transparency, providing trustworthy information on their impacts along the value chain and meeting mandatory reporting requirements in a range of jurisdictions. Accordingly, PMI continues to promote transparency by reporting against the most relevant and widely used sustainability standards.”
“For a business like ours—with a diversified agricultural supply chain that is sensitive to climate change—abrupt climate variations can endanger physical infrastructure and supply chains,” said Scott Coutts, Senior Vice President, Operations. “However, addressing the global challenge of climate change also presents opportunities. To realize these opportunities, PMI, alongside many of our suppliers, is working within a global context which is aiming to stabilize the global temperature rise to below the internationally agreed 1.5°C scenario. We understand the potential impacts of climate change across all areas of our operations, particularly upstream in our supply chain.”
PMI has been a supporter of the TCFD since 2021. In recent years, various elements of the company’s publicly available disclosure—such as its annual Integrated Report, CDP Climate disclosure, or annual report on Form10-K—already aligned with much of TCFD’s recommendations. Building on its CCRO assessment completed in 2022, PMI’s TCFD Report now compiles relevant information in one place and will continue to strengthen the company’s capacity to mitigate climate-related risks.
“We are proud to publish this report, which presents how we are implementing TCFD’s recommendations. It outlines the progress made to date toward our goal of incorporating climate-related risk and opportunity identification and management into our overall business strategy and disclosure efforts,” said Jennifer Motles, Chief Sustainability Officer. “It complements our Low-Carbon Transition Plan, published in 2021, which provides a transparent and detailed view on how we plan to achieve our climate ambitions, measure success, and report on progress, as we adapt our business model to succeed in a net-zero carbon economy.”
PMI’s strategies to Tackle Climate Change and Preserve Nature have been recognized by CDP, a not-for-profit charity that runs a global disclosure system for investors, companies, cities, and regions to manage their environmental impacts. In March 2023 and for the sixth consecutive year, PMI was included in CDP’s Supplier Engagement Leaderboard, distinguishing it as a global leader for engaging with suppliers on climate change and recognizing the effort PMI has put toward decarbonization, a key component in achieving its scope 3 ambitions. Additionally, in December 2022, for the third successive year, CDP awarded PMI the prestigious “Triple A” rating for the company’s performance in tackling climate change, protecting forests, and ensuring water security—placing it among the world’s most pioneering companies in environmental transparency and performance.
Earlier this month, PMI published its fourth annual Integrated Report 2022, which aims to provide an objective description of the company’s business model, strategy, performance, governance, and prospects in relation to its priority economic and ESG topics. To access PMI’s latest reports, as well as additional information on its approach to sustainability, please visit pmi.com/sustainability.
Philip Morris International: Delivering a Smoke-Free Future
Philip Morris International (PMI) is a leading international tobacco company working to deliver a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products. Since 2008, PMI has invested more than USD 10.5 billion to develop, scientifically substantiate, and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. In November 2022, PMI acquired Swedish Match—a leader in oral nicotine delivery—creating a global smoke-free champion led by the companies’ IQOS and ZYN brands. The U.S. Food and Drug Administration (FDA) has authorized versions of PMI’s IQOS Platform 1 devices and consumables and Swedish Match’s General snus as modified risk tobacco products (MRTPs). As of December 31, 2022, PMI’s smoke-free products were available for sale in 73 markets, and PMI estimates that approximately 17.8 million adults around the world had already switched to IQOS and stopped smoking. Smoke-free products accounted for approximately 32% of PMI’s total full-year 2022 net revenues. With a strong foundation and significant expertise in life sciences, PMI announced in February 2021 its ambition to expand into wellness and healthcare areas and, through its Vectura Fertin Pharma subsidiary, aims to enhance life through the delivery of seamless health experiences. For more information, please visit www.pmi.com and www.pmiscience.com.
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