Transformation Across Our Value Chain

3 min read

Our transformation is reshaping our value chain

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Our transformation is not just about changing our product: it’s about completely adapting our value chain.

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    R&D

    We continue to shift resources toward achieving our transformation: 92% of our investment in R&D and 60% of our global commercial expenditure were dedicated to smoke-free products in 2018.

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    Sourcing

    As we decrease our tobacco leaf requirements, there is a need to support farmers’ profitability and livelihoods through diversified crops, such as soybean or groundnuts.

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    Manufacturing

    Changing means converting the way we work, from the factory machinery we use to the processes we follow. Seven of our factories, up from three in 2017, now produce smoke-free products.

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    Commercialization

    Customer-centric approaches – specialists who engage with adult smokers, flagship stores, help centers and digital platforms – are needed to make smoke-free products known and available to adult smokers.

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    Post-Consumer Waste

    We plan to play our part in the circular economy and that means designing products and using materials that can be recycled and / or reused – including the electronics we started selling in 2014.