TACKLE CLIMATE CHANGE
Achieve carbon neutrality in our operations and accelerate our decarbonization toward net zero across our value chain.
The right thing to do
The climate crisis, as acknowledged by the international community, threatens all livelihoods, but especially those who are most vulnerable, exacerbating inequalities.
The business case
For a business like ours—with a diversified agricultural supply chain sensitive to climate changes—abrupt climate variations can have a profound impact on the secure supply of our raw materials.
2021 performance highlights
- Total value chain CO2e emissions (scope 1+2+3) reduced by 18 percent, and emissions from our direct operations (scope 1+2) by 33 percent versus 2019 baseline
- Three additional manufacturing sites certified as carbon neutral, bringing the total to five
- 81 percent of electricity used in PMI’s factories came from renewable sources
- Creation of a Portfolio of Climate Investments (PCI) to standardize and provide transparency on our approach to investments in offsets and insets
Zero Deforestation Manifesto
Responsible Sourcing Principles
Good Agricultural Practices (GAP)
PMI CDP Climate Change 2021 Submission
PMI CDP Forests 2021 Submission
PMI CDP Water 2021 Submission
We are proud of the level of sophistication and ambition achieved to date by our climate strategy, and by the capabilities of our organization in this field, and aim to remain at the forefront of the climate neutral agenda.
Conditions today are uniquely favorable to accelerate decarbonization actions and projects, to reduce our overall carbon footprint and to increase our supply chain resilience by managing climate-related risks proactively and seizing increasing opportunities in the low-carbon economy. To achieve this, we believe in the power of strong ambitions, bold strategies, and investments in innovative technologies.
To bolster our efforts and create a sound governance context internally, we also plan to revise our shadow price and carbon levy in 2022 in order to better reflect the changes in risk and emission profiles.
We are highly committed to playing our role in the decarbonization of our society through actions guided by our science-based targets. We will continue to research and develop innovative solutions, explore new technologies, invest with impact to foster more and better innovation, and inspire all our people and our business partners to join us in this journey. Our learnings will be theirs to build upon, to drive a successful low-carbon transition, together.
Massimo Andolina, Senior Vice President, Operations
In 2022, we plan to reassess climate change-related risks and opportunities in line with a 1.5 degrees Celsius scenario and the recommendations of the Task Force on Climate-related Financial Disclosures, updating the assessment we conducted in 2018–2019.
We will also intensify our investment in developing tailored projects as part of the PCI strategy, in line with our expectation to trigger value on the ground by running carbon projects directly with partners in our supply chain. Through the PCI technological removal strategy initiative, we will explore the carbon tech space by investigating emerging solutions that could bring innovation and market access to carbon direct removal. Technological removals will be further expanded in our tobacco supply chain, where we aim to finalize the assessment of the potential and feasibility of biochar-based carbon sequestration within selected farming communities.
In our factories, we will continue to implement energy efficiency initiatives and increase the share of renewables in our energy mix. We plan to certify additional manufacturing sites as carbon neutral by the end of 2022. Building on results to date, we will continue to deploy digital and artificial intelligence solutions in our manufacturing sites to deliver additional carbon savings.
In our tobacco supply chain, we aim to further reduce emissions through continuous improvements in tobacco flue-curing (through efficiency efforts and further adoption of renewable fuels) and additional initiatives related to fertilizers and mechanization, to increase crop productivity and consequently reduce emissions intensity. We will monitor the implementation of our insetting projects and explore other opportunities to deploy high-quality nature-based solutions in other tobacco-growing geographies.
During the year, we will refine our approach to helping critical suppliers set science-based targets.
To further deploy fleet carbon neutrality programs, we plan to continue focusing on eco-driving behaviors through telematics and awareness campaigns and training. In 2022, we will continue to renew our fleet, accelerating the switch from internal combustion engines to more environmentally friendly powertrains such as hybrid and electric vehicles. We will also continue our efforts to minimize the carbon footprint of our offices and warehouses, and we expect to certify our first carbon neutral markets. In parallel, we will continue driving carbon reduction through diligent eco-design of our products.
Claudia Berardi, Director, Environmental Sustainability, PMI Operations
This online content about our Integrated Report should be read in conjunction with PMI’s 2021 Integrated Report. The information and data presented here cover the 2021 calendar year or reflect status at December 31, 2021, worldwide, unless otherwise indicated. Where not specified, data come from PMI estimates. Please also refer to 'This report at a glance' on page 5 of the 2021 Integrated Report 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 252. In the 2021 Integrated Report and in related communications, the terms “materiality,” “material,” and similar terms, when used in the context of economic, environmental, and social topics, 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.