Advancing responsible water stewardship across our operations and value chain  

Powerful sustainability stories often begin where business, nature, and community meet—in this case, at the water’s edge. Tabaqueira is the Portuguese subsidiary of Philip Morris International (PMI), and its factory sits at the base of the Sintra mountain—a region recognized by UNESCO for its rich biodiversity and ecological value. With three natural streams running through its grounds, this location is more than symbolic. It underscores Tabaqueira’s comprehensive approach to water stewardship.ⁱ 

Founded in 1927, Tabaqueira has been part of PMI since 1997, growing into the largest tobacco company in Portugal today. In 2019, Tabaqueira’s factory became the first entity in Portugal to achieve Alliance for Water Stewardship (AWS) certification, directly contributing to PMI’s goal of minimizing its environmental footprint and strengthening climate resilience across its operations. This ongoing work culminated in renewed success in 2025, when the site achieved recertification by the Alliance for Water Stewardship (AWS). 

Rehabilitating natural waterways to reduce flood risks and water-use challenges 

A cornerstone of Tabaqueira’s water stewardship journey was the restoration of a flood control channel in the Marmelo stream to address flooding risks in the highly urbanized area surrounding its factory. With approval from the Portuguese Environment Agency, Tabaqueira developed a retention basin to manage stormwater and protect both the local population and biodiversity.  

The project also included the construction of a cobbled drainage channel around a new high-voltage (60/10 kV) substation, directing water to the stream. This was key to preventing localized flooding and minimizing operational disruptions. By improving the area’s capacity to absorb rainfall and supporting the return of native biodiversity, the work also strengthened Tabaqueira’s overall water management—benefiting both the factory and the community in which it operates. In 2025, Tabaqueira captured 14,600 m³ of groundwater that had accumulated in the subsoil and used it to generate steam for manufacturing, while also helping to prevent flooding. The company also reduced the amount of water required for production and essential supporting activities, including steam generation, chilled water for air conditioning, hot sanitary water, cleaning operations, and the canteen. Since launching its water stewardship journey under the AWS, Tabaqueira reduced total water consumption by 48.3 percent between 2019 and 2025. This reduction has been underpinned by the Open+ system, a lean manufacturing approach, which supports continuous improvement through daily deviation analysis, rapid correction of losses, and the active involvement of employees and partners in identifying opportunities. Real-time monitoring through smart meters helps control consumption and prevent waste across processes. 

Rethinking water in operations from efficiency to reuse

“Beyond safeguarding local ecosystems, Tabaqueira has prioritized operational efficiency,” explains Joao Brigido, Director of Manufacturing, Portugal. In 2022 and 2023, the company replaced two aging refrigeration systems with a single, more efficient unit that uses advanced technology to produce cold water for air conditioning. The upgrade significantly reduced energy and water consumption, meeting AWS requirements for improved water efficiency and supporting PMI’s broader efforts to modernize factory infrastructure. Building on this progress, Tabaqueira began implementing an adiabatic humidification system in production areas in 2024. In 2025, the factory adjusted humidity setpoints—an improvement which is expected to deliver annual savings of 1,130 m³ of water and 5,000 GJ of energy from 2026 onward.

Tabaqueira also operates an on-site wastewater treatment plant, which treated 27,000 m³ of water in 2025 alone. Of that total, 310 m³ was reused for industrial cleaning, an important step toward more circular water management. The company obtained a new license for the reuse of treated water, enabling the irrigation of the factory’s gardens to resume from 2026, further reducing reliance on fresh water and closing the loop on reuse. Tabaqueira continuously monitors treated water quality to ensure that all discharges into the Marmelo stream meet the highest environmental standards, a core requirement of AWS certification.

Cultivating awareness, connection, and collaboration

Water stewardship is not just a technical exercise—it is a cultural one. That spirit of connection continued in 2024 with the first Water Forum, and again in 2025, when Tabaqueira hosted a second Water Forum at its factory alongside the Municipal Water and Sanitation Services of Sintra (SMAS Sintra), business partners, and other stakeholders. The event created space for knowledge exchange, advanced regional dialogue on sustainable water management, and reinforced the collaborative spirit at the heart of the AWS certification. Discussions highlighted the importance of managing water resources responsibly, as well as the challenges and opportunities facing both the industry and local communities.

Regarding the responsible management of water resources, Brigido reinforces the importance of collaboration and joint work by all stakeholders: “We cannot achieve this goal alone. That is why Tabaqueira and Philip Morris International have invested significantly in this area.”

Participating in collective community clean-up activities

“Tabaqueira’s attention to local impact extends well beyond the factory walls,” said Marcelo Nico, Managing Director of Tabaqueira. In 2024 and 2025, the company helped lead the cleanup campaign ‘Sintra is not an ashtray’ in partnership with Sintra Municipality, SMAS Sintra, the Rio de Mouro Parish Council, and the Aga Khan Foundation. Employees, local partners, and community members helped remove litter from streets and nearby watercourses. These cleanups strengthened ties with the community, promoted proper waste disposal, and helped raise public awareness of the importance of protecting waterways.

Looking ahead, Tabaqueira will continue to expand water reuse, deepen partnerships, and strengthen public engagement—helping ensure sustainability is not just an aspiration, but a reality in Sintra. By fostering collective action and maintaining open dialogue with local stakeholders, the company is embedding water stewardship into daily operations and community life.

¹ Water scarcity conditions in Europe, European Environment Agency (Published 28 November 2025)