LAUSANNE, Switzerland – (COMMERCIAL THREAD) – As the urgency to adapt and take action to address the climate change crisis grows, Philip Morris International Inc. (PMI) (NYSE: PM) today released its Low carbon transition plan (LCTP), which provides a transparent and detailed view on how we plan to achieve our climate ambitions, measure success and report on progress.
The plan advances PMI’s ambitions to achieve carbon neutrality in its direct operations (scopes 1 + 2) within five years, by 2025, and to achieve carbon neutrality across its entire value chain (1 + 2 + 3 scopes) within 10 years, to 2040. In addition, it introduces a new target for critical PMI suppliers to adopt science-based targets (SBT) in line with the SBTs to which PMI has already committed , aligned with the 1.5 Â° C trajectory necessary to achieve the objectives of the Paris Convention. Agreement. The importance of this new target is linked to the relevance attributed to supplier engagement, which is essential to support the achievement of PMI’s CO.2 reduction targets for scope 3 over time, allowing the company to maintain its leadership role in climate actions. The LCTP links these considerable ambitions to the raison d’Ãªtre of the company and to the even greater fundamental ambition to rid the world of cigarettes, while seeking a net positive impact on society.
“By showcasing our low carbon transformation strategy, we hope to encourage change and foster engagement with investors and other stakeholders who will be able to assess whether our company is appropriately adapting its business model to be successful in a net zero economy. carbon, âsaid Jennifer. Motles, Director of Sustainability. “The LCTP shows how our goals are underpinned by detailed operational metrics and a strong business strategy, which are essential to translate ambition into action, achievement and impact, and most importantly, the only way to preserve the sustainability of our company and help contribute to broader societal action.
Achieve climate ambitions to create long-term value
PMI has adopted a three-step approach to meeting its emissions targets: 1) reduce consumption and optimize efficiency to reduce greenhouse gas (GHG) emissions, 2) minimize the use of fossil fuels and promote the switch to renewable energies, and 3) offset inevitable emissions by favoring insetting projects (nature-based solutions) and the purchase of high quality carbon credits.
“Strong action must be taken to reduce the risks of climate change and stop the destruction of nature. We believe that PMI must play its role in protecting vulnerable ecosystems and communities around the world by reducing our environmental impact across our entire value chain, and by defining and implementing strategies and initiatives to achieve our long-term goals, âsaid Massimo Andolina, SVP, Operations. “Along with growing momentum, our business and sustainability strategies advance, and we invest in innovative programs and take a multidisciplinary approach to reduce the environmental impact of our products, operations and value chain. ”
Investing in Nature-Based Solutions: Climate Investment Portfolio
Recognizing that with today’s technologies some emissions are inevitable, PMI’s approach to carbon pricing announced last year includes the introduction of two complementary internal carbon prices: a shadow price of 65 USD per tonne of CO2e and a carbon tax of 8 USD per tonne of CO2e. Shadow pricing helps prioritize business cases for investing in activities to structurally reduce carbon emissions, while carbon tax helps assess the investments needed today to reduce GHG emissions through carbon reduction initiatives. compensation and insertion.
Guiding these initiatives, PMI has created its Climate Investment Portfolio (PCI), which will ensure the transparency of the activities necessary to continue the company’s decarbonization efforts. The PCI advisory committee is responsible for managing and allocating the budget for climate investment solutions according to three main areas of intervention: purchases of high quality carbon credits to support short-term neutrality objectives, investments in insertion of projects in the PMI value chain to support long-term net zero ambitions and investments in innovative technologies that can help to permanently remove carbon from the atmosphere.
Social and environmental connectivity
Climate change has an impact not only on the environment but also on people’s livelihoods. PMI’s efforts to fight climate change are not limited to working for carbon neutrality in its operations and throughout its value chain. The company is also working to adapt to the impact of climate change and increase the resilience of its business and the communities in which it operates. Recognizing that sustainability challenges do not exist in a vacuum but are often interrelated and must be considered in developing appropriate solutions, PMI commissioned Article One to prepare a background paper entitled: “Climate Justice in Global Supply Chains: A Perspective for the Private Sector. The paper will discuss the connectivity between environmental and social issues, drawn from the impacts of climate change, as well as the ability to shape mutually reinforcing solutions.
Recognition of PMI’s progress in climate action
In the S&P Global Ratings’ ESG assessment report, PMI has been recognized not only as a leader in the transition to carbon neutrality, but also as an industry differentiator for its approach to carbon pricing. The company was also included for the first time last year in the Dow Jones Sustainability Index (DJSI) North America, scoring the highest of 100 in the categories climate strategy, environmental reporting and environmental policies and systems. management. In 2020, PMI was one of 10 companies globally to receive the prestigious “Triple A” score for leadership in environmental sustainability by CDP, and maintained its position on CDP’s A list for climate change. for the seventh consecutive year. Additionally, CDP placed PMI in its supplier engagement ranking for the fourth consecutive year.
To access PMI’s LCTP report, as well as additional information on PMI’s approach to sustainability, please refer to LCTP Report and PMI sustainability. To review the integrated performance of the PMI, please refer to the PMI 2020 Integrated report, which includes progress on the company’s efforts to reduce its carbon footprint. The report addresses some recommendations from the Climate-Related Financial Disclosures Task Force (TCFD), while others are covered by the company’s report to CDP.
Philip Morris International: Providing a Smoke-Free Future
Philip Morris International (PMI) is leading a transformation of the tobacco industry to create a smoke-free future and ultimately replace cigarettes with smokeless products for the benefit of adults who would otherwise continue to smoke, the company, the company, its shareholders , and other stakeholders. PMI is a leading international tobacco company engaged in the manufacture and sale of cigarettes, as well as smokeless products, related electronic devices and accessories, and other nicotine-containing products in out-of-state markets. -United. IQOS Platform 1 device and consumables have received marketing authorizations from the United States Food and Drug Administration (FDA) under the Pre-Market Tobacco Product Application (PMTA) process ; the FDA has also cleared a version of IQOS and its consumables as a modified risk tobacco product (MRTP), believing that an exposure modification order for these products is appropriate to promote public health. PMI is building a future on a new category of smoke-free products which, while not without risk, are a much better choice than continuing to smoke. Through multidisciplinary capabilities in product development, state-of-the-art facilities and scientific rationale, PMI aims to ensure that its smoke-free products meet the preferences of adult consumers and meet stringent regulatory requirements. PMI’s smoke-free product portfolio includes products that do not burn, vapor products containing nicotine, and oral nicotine products. As of September 30, 2021, PMI’s smoke-free products are available for sale in 70 markets in key cities or nationwide, and PMI estimates that approximately 14.9 million adults worldwide have already switched to IQOS and quit smoking. For more information, please visit www.pmi.com and www.pmiscience.com.