NEW YORK -- A newly released sustainability report from Philip Morris International (PMI) outlines how the largest tobacco manufacturer in the world plans to shift its business from cigarettes to smoke-free tobacco and nicotine products, with the report touching on topics ranging from factory-investment plans to future labor practices.
Since 2008, New York City-based PMI has invested more than $3 billion in research, product and commercial development, production capacity, scientific substantiation and studies on adult smokers’ understanding of smoke-free products, the company said.
Last year, the company announced a bold shift to a smoke-free future. This year, PMI expects more than 70% of its global research and development expenditure and over 30% of its global commercial budget to be allocated to smoke-free products.
Here’s a summary of the many goals and targets laid out in PMI's report …
PMI has announced planned investments of more than $1.7 billion to build or convert its factories for the production of smoke-free products.
More than 3 million adult smokers globally have switched to iQOS, the first of PMI’s smoke-free products. By 2025, the company expects that at least 40 million consumers who would have otherwise continued smoking will have switched to its smoke-free alternatives. The company indicates, as an aspirational goal, that by 2025 at least 30% of its volume will come from smoke-free products, assuming constant PMI market share.
(Editor's note: Richmond, Va.-based Altria Group has commercialization rights for PMI’s iQOS heat-not-burn device in the United States. Altria said it supports PMI’s commitment to further inform the important scientific dialogue around tobacco harm reduction and noted its own work engaging with FDA to support tobacco harm reduction efforts.)
The company will initiate programs to fight illicit tobacco trade, including PMI Impact, a global funding initiative to support organizations in developing and implementing projects dedicated to fighting illegal trade and related crimes. PMI recently announced 32 projects selected for funding with approximately $28 million in the initiative’s first round.
PMI’s status as a top employer will become a priority, including equal-salary certification, women-in-management initiatives and health and well-being programs.
With the adoption of science-based targets for greenhouse-gas emissions, PMI achieved a 23% reduction in 2016 compared to 2010, and targets a 40% reduction by 2030 across the company’s entire value chain.
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