Philip Morris Progresses Toward the End of Smoking

LAUSANNE, Switzerland—Philip Morris International Inc. (PMI) recently published its Integrated Report, a comprehensive overview of the company’s environmental, social and governance (ESG) performance and its progress toward delivering a smoke-free future.

The ESG plan includes its 2025 ambitions to switch more than 40 million adult smokers to its smoke-free products, with half from non-OECD countries, and for smoke-free products to account for more than 50% of PMI’s total net revenue.

Further accelerating PMI’s transformation, this year the company introduced two new 2025 goals linked to its Business Transformation Metrics: Smoke-free products will be available in 100 markets and at least $1 billion in annual net revenue will come from “beyond nicotine” products. The Integrated Report also outlines case studies of early indications of PMI’s smoke-free products’ impacts in markets where such products have a significant presence.

“I present this report with pride in what we have already achieved in just five years, such as smoke-free products accounting for nearly one-quarter of our total net revenues in 2020, from essentially zero in 2015. I also have a deep recognition of the immense work ahead. Our new ambitious goals signal our confidence in our ability to monumentally change our company’s long-term future,” said CEO Jacek Olczak, in a press release.

PMI’s said its Integrated Report 2020 demonstrates how the organization’s strategy, governance and performance create value. To showcase impact, the company reports on progress in various ESG areas, including toward achieving its ambitious 2025 Roadmap—a set of forward-looking targets pertaining to all Tier 1 topics from PMI’s sustainability materiality assessment.

Focus on ESG is of growing importance, both for companies and consumers. To learn more about ESGs, listen to Convenience Matters Episode No. 272, “Why ESG Is Becoming Important to Retailers.”

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