How preserving nature adds business value
Nature-related initiatives create business value and support our transition to a smoke-free future by reducing related risks, strengthening operational and supply‑chain resilience, boosting efficiency, and supporting regulatory compliance.
As we work toward our aspiration of no net loss on ecosystems across our value chain, we’ll drive business value by focusing on three key pillars:
Water circularity in manufacturing to promote resilience, mitigate local water-related risks, ensure business continuity, increase efficiency, and contribute to water stewardship by restoring our water use at priority sites.
Regenerative agriculture and water optimization in our tobacco supply chain to support climate adaptation and the resilience of our agricultural supply chain. These efforts also generate co-benefits, including carbon removal and storage, improved water stewardship, and gains in biodiversity.
Zero deforestation in priority forest areas to safeguard forest capital, prevent land‑use change, mitigate scope 3 emissions, and prepare for regulations such as the EU Deforestation Regulation.
Why is “Nature” a strategic priority?
Strategic approach
We ground our approach to the responsible use and management of natural resources and ecosystem services on an understanding of the close connections between biodiversity protection, forestry management, effective water stewardship, and climate resilience.
Through consistent methodologies, the use of reliable data, and strong cross‑team collaboration, we strengthen regulatory readiness, improve adaptability and supplier engagement, meet investor expectations, and continually identify ways to improve.
Guided by the Kunming‑Montreal Global Biodiversity Framework (GBF), our long‑term ambition is to contribute to a positive impact on nature by 2050. This drives us to address environmental pressures holistically so that progress in one area reinforces benefits across others.
Our nature-related strategy considers international accords and recognized frameworks, including the AR3T approach (Avoid, Reduce, Restore & Regenerate, and Transform) from the Science Based Targets Network (SBTN) and the International Finance Corporation (IFC) Performance Standard 6. These guide our actions to avoid and reduce impacts, restore and regenerate ecosystems, transform systems to tackle root causes of nature loss, and compensate for remaining effects. This structure enables us to move beyond mitigation toward striving for lasting positive outcomes.
Similar to our approach to climate change-related risk, we integrate biodiversity, forest, and water risks into our company‑wide processes and adjust our actions based on these assessments. Medium‑ and long‑term targets help us measure progress and refine our approach.
Much of our nature agenda extends beyond our direct control, and we view protecting nature as a collective responsibility. We collaborate with organizations such as the World Business Council for Sustainable Development (WBCSD), the Taskforce on Nature-related Financial Disclosures (TNFD), The Biodiversity Consultancy, World Sustainability Organization (WSO), Valuing Impact, the Alliance for Water Stewardship (AWS), and SBTN. We work with local partners to design conservation initiatives tailored to regional needs. We also guide suppliers in adopting nature‑related objectives.
Biodiversity management plans
We have started to develop Biodiversity Management Plans (BMPs) tailored to local conditions. These operational documents translate biodiversity risk assessments into actionable, evolving plans. Our process starts with mapping sourcing areas and assessing local risks and opportunities to ensure our actions address the most relevant pressures.
Our policies
2030+ aspirations
Protecting biodiversity
- No net loss on ecosystems connected to PMI’s value chain by 2033.
- Implement regenerative agriculture practices in all priority tobacco growing areas by 2033.*
Halting deforestation
Zero deforestation of priority forest area in PMI tobacco and paper and pulp-based product supply chain by 2026.
Managing water responsibly
- Maintain AWS certification for all priority manufacturing sites.
- Achieve circular water use in priority manufacturing locations by 2033, achieving at least 60 percent by 2030.*
- Tobacco supply chain: Optimize at least 25 million cubic meters of water (cumulative since 2019) in our tobacco-growing areas (TGAs) by 2033.
* We will begin reporting performance towards newly established targets in our next annual Value Report and will provide methodological details in our Non-financial KPI Hub.
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Soil restoration: Fostering farming resilience and sustainable supply chains in Malawi
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This online content about our Value Report should be read in conjunction with PMI’s Value Report 2025. This report includes metrics that are subject to uncertainties due to inherent limitations in the nature and methods for data collection and measurement. The precision of different collection and measurement techniques may also vary. This report includes data or information obtained from external sources or third parties. Unless otherwise indicated, the data contained herein cover our operations worldwide for the full calendar year 2025 or reflect the status as of December 31, 2025. Where not specified, data comes from PMI financials, nonfinancials, or estimates.
Unless explicitly stated, the data, information, and aspirations in this report do not incorporate PMI’s Wellness unit, Aspeya. Regarding the Swedish Match acquisition, completed late 2022, unless otherwise indicated, this report includes information pertaining to its sustainability performance. Please also refer to "About this report" on page 3 of the PMI’s Value Report 2025 for more information. Aspirational targets and goals do not constitute financial projections, and achievement of future results is subject to risks, uncertainties and inaccurate assumptions, as outlined in our forward-looking and cautionary statements on page 142. In PMI’s Value Report 2025 and in related communications, the terms “materiality,” “material,” and similar terms are defined in the referenced sustainability standards and are not meant to correspond to the concept of materiality under the U.S. securities laws and/or disclosures required by the U.S. Securities and Exchange Commission.
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