Tackling climate change is an important part of our sustainability strategy. Our long-term commitment is to realize a 20% reduction in energy and CO2 from our manufacturing operations by 2015*, and a 30% reduction in our carbon footprint across our whole value chain by 2020.
To understand more about our carbon footprint, we undertook an assessment of our entire supply chain between 2008 and 2010. We found that more than 70% of our carbon footprint comes from carbon emissions in our supply chain; in particular around 40% comes from tobacco agriculture. This information has helped us develop a targeted strategy to reduce our carbon emissions.
We report our progress towards these targets through CDP (formerly The Carbon Disclosure Project). CDP is an international, not-for-profit organization providing a key independent global system for companies to measure, disclose, manage and share vital environmental information. As such, CDP ratings provide companies with a credible, trusted benchmarking system for environmental information at the global level. Increasingly, CDP ratings provide a tool for institutional investors and stakeholders to assess corporate efforts to mitigate climate change. Click here to see an example.
In the 2015 CDP results, PMI was recognized on the ‘Climate “A” List’ representing the top 5% of companies assessed by CDP for their efforts to tackle climate change in the reporting year 2014. This makes us a leader for Carbon Performance, recognizing our positive actions to address climate change in our value chain, and we also received top marks with 100% for Carbon Disclosure, a measure of the completeness and transparency of our reporting to CDP for their survey. This is PMI’s best ever score in the CDP results and means that we are listed as a Global Climate Leader in the CDP report for the second consecutive year. Moreover, PMI is also recognized as a leader in the S&P 500 Leadership Index for our efforts to address climate change. You can view the report and our detailed 2014 submission via the links on the right.
Energy and CO2 Management
We have developed a global Energy Management Program (EMP), which consists of more than 20 energy reduction initiatives. These initiatives have led to the implementation of more than 100 global projects since 2010 to decrease energy use and related CO2 emissions in our manufacturing facilities worldwide.
Some examples of PMI’s efforts to reduce energy use include:
- One key energy reduction project involves installing variable speed drives on the fan motors of air handling units. In 2011, we implemented this project in 23% of our manufacturing facilities and a further 13% in 2012. This project is estimated to have saved more than 9000 metric tons of CO2 per year.
- We have already installed energy efficient lighting in 10 of our manufacturing facilities around the world and plan to do the same in another 20 in the short term.
- Our two data centers located in Switzerland are powered by 100% renewable electricity, generated from local hydro power.
As a result of projects like these around the world, assessment of our energy use, metering in our manufacturing facilities, and continual new innovations; we are confident that we will continue to increase opportunities for renewable energy, reducing our fossil fuel related energy use and associated carbon footprint.
Other key contributors to our carbon footprint are farmers' use of wood as a fuel for tobacco curing and for tobacco farming infrastructure, and the production of other wood based materials such as paper/board and acetate tow (cigarette filter material) that are part of the process of making cigarettes.
In collaboration with nature conservation experts, we are addressing the use of wood in tobacco farming, beginning with a pilot study in Brazil that will help us identify how best to address this issue and measure our progress. This study will provide recommendations for:
- Reducing wood use in tobacco curing,
- Promoting sustainable forest management, wood consumption and production, and
- Alternative fuel sources to wood.
In addition to this pilot study, we are working in tobacco growing countries to support reforestation and sustainable tobacco production.
For us to meet our targets, it is critical to monitor our progress through regular reviews of our supply, manufacturing and distribution chains, and also our products and packaging material. Starting with the review conducted in 2012, we will continue to assess our carbon footprint in detail every three years.
* Against a 2010 baseline, per million units of product equivalent.
Find out more in this video .