Philip Morris International Accelerates Path to Carbon Neutrality

As the urgency to adapt and take action to tackle the climate change crisis becomes more pressing, Philip Morris International Inc. (PMI) (NYSE: PM) today releases its Low Carbon Transition Plan (LCTP), which provides a transparent and detailed view on how we plan to achieve our climate ambitions, measure success, and report on progress.

The plan brings forward PMI’s ambitions to achieve carbon neutrality in its direct operations (scopes 1+2) by five years, to 2025, and to achieve carbon neutrality across its entire value chain (scopes 1+2+3) by 10 years, to 2040. In addition, it introduces a new goal for PMI’s critical suppliers to adopt science-based targets (SBTs) in line with the SBTs that PMI has already committed to, aligned with the 1.5°C pathway necessary to meet the goals of the Paris Agreement. The importance of this new target is linked to the relevance attributed to supplier engagement, which is essential to support the achievement of PMI’s CO₂ reduction targets for scope 3 over time, allowing the company to maintain its leadership role in climate actions. The LCTP links these considerable ambitions to the company’s purpose and even greater fundamental ambition of ridding the world of cigarettes, while further seeking a net-positive impact on society.

“By presenting our low-carbon transformation strategy, we hope to encourage change and foster engagement with investors and other stakeholders who will be able to evaluate whether our company is appropriately adapting its business model for success in a net-zero carbon economy,” said Jennifer Motles, Chief Sustainability Officer. “The LCTP showcases how our targets are underpinned by detailed operational measures and a solid business strategy, which are vital to translate ambition into action, achievement, and impact, and most important, the only way to safeguard the sustainability of our business and to help contribute to wider societal action.”

Delivering on climate ambitions to create long-term value

PMI has adopted a three-step approach to achieving its emissions targets: 1) reducing consumption and optimizing efficiency to cut greenhouse gas (GHG) emissions, 2) minimizing the use of fossil fuels and promoting the switch to renewable energy, and 3) compensating unavoidable emissions by prioritizing insetting projects (nature-based solutions) and purchasing high-quality carbon credits.