Tackle climate change

Addressing greenhouse gas (GHG) emissions is not just an environmental imperative but a strategic business priority that directly impacts our long-term viability, regulatory compliance, and competitive positioning. Considering the Paris Agreement’s 1.5°C target in our efforts helps mitigate supply chain disruptions and capitalize on emerging market opportunities, and meet increasing stakeholder expectations.

Purposefully phase out cigarettes

Purposefully phase out cigarettes
Maximize the benefits of smoke-free products

Maximize the benefits of smoke-free products
Seek net positive impact in wellness and healthcare

Seek net positive impact in wellness and healthcare
Reduce post-consumer waste

Reduce post-consumer waste
Foster an empowered and inclusive workplace

Foster an empowered and inclusive workplace
Improve the quality of life of people in our supply chain

Improve the quality of life of people in our supply chain
Tackle climate change

Tackle climate change
Preserve nature

Preserve nature

tackle climate change roadmap goals

Our 2025 Roadmap goal

see our full 2025 roadmap

TACKLE CLIMATE CHANGE

Achieve carbon neutrality in our operations and accelerate our decarbonization toward net zero across our value chain.

Key performance indicators to track our progress

Achieve carbon neutrality in our operations and accelerate our decarbonization toward net zero across our value chain

In 2024 , our CO₂e scope 1+2 emissions decreased by 39 percent (2023: 40 percent) versus our 2019 baseline and our net CO₂e scope 1+2+3 emissions decreased by 15 percent within the same time frame.

fundamentals background

See full performance metrics

Learn more about PMI’s Sustainability Index in our Integrated Report 2024. See the full performance metrics and related footnotes here.

The right thing to do

The effects of climate change impact human rights, biodiversity, water access, global health, and food security, and intensifies environmental threats such as ecosystem degradation, drought, flooding, and desertification.

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The right thing to do

The effects of climate change impact human rights, biodiversity, water access, global health, and food security, and intensifies environmental threats such as ecosystem degradation, drought, flooding, and desertification. While science tells us that climate change is irrefutable and unavoidable, it also tells us it is not too late to limit global warming to the 1.5oC threshold which is considered the point beyond which climate-related impacts will be catastrophic.

Achieving this goal requires fundamentally transforming how we grow food crops, use land, transport goods, and power our economies. Implementing GHG emissions reduction initiatives throughout our direct and indirect operations can contribute to the mitigation of global climate change and its effects, especially in regions most vulnerable to climate-related disruptions. Our commitment to climate action can also serve as a catalyst and encourage others—especially those connected to our value chain—to adopt strategies that can amplify the overall impact of efforts deployed to contribute to climate mitigation, enable climate adaptation, and advance climate resilience.

The business case

Climate change and its effects can threaten our business continuity and endanger our supply chain—especially our agricultural supply chain which is particularly sensitive to abrupt climate variations.

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The business case

Climate change and its effects can threaten our business continuity and endanger our supply chain—especially our agricultural supply chain which is particularly sensitive to abrupt climate variations. Furthermore, it can present risks with direct impacts on our physical infrastructure, in particular our manufacturing sites, as well as transition risks such as energy price increases. It can also imperil business growth by exacerbating systems-level disruptions affecting various stakeholders, including customers, employees, and communities.

For that, we put in place policies and practices that allow us to identify climate-related risks, anticipate and respond to climaterelated regulation in a timely way, support climate policies, and seize climate-related economic opportunities.

Developing and implementing robust mitigation and adaptation strategies can minimize the extent to which climate change impacts our business. One fundamental strategy is to reduce our GHG emissions, which allows us to increase efficiency, deliver energy savings, and boost profitability by promoting fewer inputs used over outputs.

tackle climate change roadmap goals

Our progress in 2024

Read more in our Integrated Report

low carbon transition plan thumbnail

Environmental sustainability—PMI’s climate strategy

CARBON NEUTRAL SH THUMB 1780x1200 - CLEAN

How do you make a carbon-neutral factory?

Pakistani woman on tobacco farm

Preserve nature

How PMI is working on a zero emissions office

My name is Frederic Voegele.

My current position is Manager Engineering Department,

here in Neuchâtel at PMP SA factory.

Every day I'm pleased to discover new things that are happening here at PMP SA.

Last year we were proud to receive the carbon-neutral factory label.

In order to run a facility like our facility, you mainly need electricity,

you need heat, and you need steam.

For the electricity, we are using green power.

It's a sustainable source of electricity.

Then, for the cold, we make use

of our beautiful location beside the lake so we are pumping the lake water

at 60-meter depth at 6 degrees to cool our entire facility.

The cool water that we use to cool down our installation is being heated.

So prior to ejecting it in the lake, we re-use the calories in that water.

We are able to heat our entire facility without burning natural gasses anymore.

The last source of energy where we need to burn natural gas is to generate steam.

This project is there

to use our organic waste, paper, wood, cigarettes, tobacco, to convert them into combustible gas

that will be used to generate steam, instead of using natural gas.

With those two projects, more or less nine million investment,

we'll be in a position not only to be certified carbon-neutral,

but to really have zero emission.

As a big company we have to pioneer and show the way for others to follow.

Reduce post-consumer waste

Managing our supply chain sustainably

PMI Corporate - Sustainability - LCTP - Infographics-Master_LITE2-01

Decarbonizing our value chain 7 min read

Forest with vector lines placed over it

Sustainability and Geospatial Analysis: A recipe for informed decisions

PMI receives fourth consecutive CDP “triple-A” rating for its sustainability leadership

A field with rows of tobacco plants and mountains in the background.

Promoting climate justice in global supply chains 5 mins to read

Environmental Commitment

Responsible Sourcing Principles

Zero Deforestation Manifesto

Low-Carbon Transition Plan

Good Agricultural Practices

2 min read Read More

Code of Conduct

Climate Justice Briefing Paper

Sustainability KPI protocol 2024

PMI CDP Climate Change Questionnaire 2023

2025 will mark an important milestone in our decarbonization journey, as we aim to achieve carbon neutrality in our direct operations by the end of the year. In this context, and accounting for the learnings we gathered over the past years, we plan to update and publish our Low Carbon Transition Plan (LCTP), encompassing Swedish Match’s GHG footprint, while including adaptation and nature considerations in our decarbonization strategies, confirming the ambition behind our communicated targets. Our initiative in Mozambique is expected to deliver its first carbon credits in 2025 and support the achievement of our scope 1 and 2 carbon neutrality aspiration. Additionally we remain focused on deploying our decarbonization plans to reduce Scope 3 emissions.

As we revise our LCTP, we will also update our Environmental Commitment, ensuring alignment between our strategy, policies, and practices. We will continue to strive for accurate, consistent, and transparent environmental reporting.

Our actions showcase our strategic thinking and understanding of climate resilience, mitigation, and adaptation. The steps we are taking help us anticipate regulatory requirements and plan for the long term.

Partnering with our suppliers is crucial to driving industry-wide change and ensuring that our supply chain aligns with our sustainability goals. As we work to address challenges and drive reductions across our scope 3 emissions, we will ensure that opportunities and business continuity decisions are assessed promptly, and potential trade-offs (e.g. new sourcing origins or material substitutions) are evaluated as they may impact our progress. For example, some material changes may signify improvements in industrial emissions but may be unfavorable in terms of FLAG emissions. Furthermore, as we continue the integration of Swedish Match’s and PMI’s operations, it is important to note that both supply chains share some synergies that we are seeking to leverage in order to align and further accelerate decarbonization efforts. Similarly, the deployment of best practices and decarbonization plans well established in PMI’s direct operations will continue to be assessed for Swedish Match scope.

We plan to continue our work to empower our suppliers with knowledge by expanding our Sustainability Accelerator program. This expansion is designed to enhance our suppliers’ capabilities and drive the implementation of sustainable practices throughout our supply chain. In terms of logistics, we have made considerable progress and have ambitious plans for 2025. We continue to closely collaborate with our direct materials suppliers on value chain optimization projects to deliver supplier intensity reductions that will further contribute to PMI’s scope 3 commitments. We anticipate formalizing our strategy for indirect materials and services and electronic components, which will further support our suppliers conducting necessary due diligence within their supply chains. Moreover, we are actively engaging with cross-industry partners and suppliers, including benchmarking efforts, to identify new opportunities, unlock fruitful collaborations, and build capabilities. These efforts are crucial to fostering innovation and driving collective action.

This online content about our Integrated Report should be read in conjunction with PMI’s Integrated Report 2024. 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 2024 or reflect the status as of December 31, 2024. 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 and healthcare business, 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 "This report at a glance" on page 2 of the PMI’s Integrated Report 2024 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 206. In PMI’s Integrated Report 2024 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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