Message from our Chief Financial Officer

Nearly seven years ago, when our company announced its smoke-free vision and related intention to stop selling cigarettes, some responded with skepticism, arguing that if we were serious about it, we would stop selling cigarettes immediately.  

Over the years, we have tried to explain the complexity of our endeavor. First, we estimate that approximately 130 million adults smoke our cigarette brands. Considering that there are over a billion smokers worldwide, if we were to stop selling cigarettes overnight and those brands suddenly became unavailable, other manufacturers and vendors (both legal and illicit) would quickly step in to meet the demand. Consequently, just as many people as before would smoke, and we would have accomplished nothing from a public health perspective.  

Second, and perhaps most important, our intention is not only to make our company smoke-free—we want to make cigarettes obsolete. This requires system-level change. This requires that we work with multiple stakeholders to address root causes, build collective responses, and craft permanent solutions that involve a change not just in attitudes and behaviors but also in laws and policies. Only in this way can we create a paradigm shift to a new system in which cigarettes no longer exist. A clear roadmap agreed upon by political, regulatory, and public health stakeholders, and supported by both civil society and business, offers the best prospect for further accelerating the end of smoking. 

As I reflect on the magnitude of the challenge, I see parallels with many facets of our sustainability efforts. Tackling climate change, promoting biodiversity and protecting natural ecosystems, minimizing post-consumer waste, reducing all forms of inequality, and advancing human rights demand the same kind of systemic approach—and are among the many issues we are working to address within our value chain, both upstream and downstream. 

The pace of our progress on all fronts is influenced by factors beyond our immediate control. We operate on a global scale in a fast-paced world. Global trends intersect with our strategies and initiatives and inform how we interact with the external environment. Safeguarding our long-term success requires that we monitor, anticipate, and respond to the challenges and opportunities shaping our reality today and in the future, ever mindful that the change we seek cannot be achieved in silos. 

Recent and current events—from the pandemic to the ongoing war in Ukraine—have deeply impacted the everyday life of people across the globe, economic systems, and business operations. They have exacerbated various environmental, economic, political, and social trends, providing even more evidence of the urgent need to build resilience by pivoting and adapting together. Sustainability is a cornerstone of our corporate strategy, and we work hard to address ESG issues that are material to PMI. We acknowledge, however, that there is a limit to how much we can do or influence on our own. To create long-standing, impactful, and sustainable solutions, we must partner and work with other parts of society—just as we do in our work to achieve a smoke-free future.