Philip Morris International "A Smoke-Free Future... Expanding Non-Combustible Sales Share to 50%"

[Asia Economy Reporter Seungjin Lee] Philip Morris International (PMI) announced on the 7th that it has published an integrated report containing its future management roadmap and ESG (Environmental, Social, and Governance) management goals. In this report, PMI specified three newly set management goals with the keywords ‘50%’, ‘100 countries’, and ‘1 billion dollars’ respectively.

First, PMI raised the target for the net sales ratio of non-combustible products, which was previously set at 38-42% of total sales by 2025, to 50% earlier this year. This reflects a strong commitment to achieving the vision of a ‘smoke-free future’ more quickly. To this end, PMI plans to focus all its capabilities on enabling the sale of non-combustible products in 100 countries worldwide.

In addition, PMI set a goal to become a leader not only in tobacco products but also in new industries based on science and technology. Leveraging PMI’s unique scientific and technological capabilities in biotechnology and device technology, the company aims to generate net sales exceeding 1 billion dollars through the development of new products beyond nicotine products.

PMI intends to focus on ESG management to realize these management goals. Specifically, by 2025, PMI plans to convert 100% of the electricity consumed in its factories to renewable energy and reduce plastic waste generated during product manufacturing and consumption processes by 50%. Furthermore, the company aims to achieve ‘carbon neutrality’ by 2050, effectively reducing net carbon dioxide emissions to zero.

PMI also plans to work hard to prevent youth smoking and promote coexistence with tobacco farming communities. It has established goals to realize organizational diversity, equality, and inclusion, aiming to increase the proportion of women in senior positions to around 32% by 2023. The company also plans to expand the proportion of newly hired women to about 50% by 2023.

Jacek Olczak, CEO of Philip Morris International, stated, “Non-combustible products accounted for one-quarter of PMI’s total net sales in 2020. This achievement was made within five years since introducing non-combustible products to the market in 2015.” He added, “PMI is doing its best to lead positive change and value, and through our innovation, we will create a sustainable future that benefits the company, consumers, and society.”