Philip Morris Lists Climate among Biggest ESG Topics in New Materiality Report

Philip Morris Sustainability

(Credit: Philip Morris)

by | Feb 16, 2022

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Philip Morris Sustainability

(Credit: Philip Morris International)

The sustainable focuses of Phillip Morris International are materials and product design, water use, biodiversity, operational discharge and post-consumer waste, the company announced in its new sustainability report. The report listed climate as one of its biggest ESG sustainability topics.

The company used the report to study the overall impacts of its operations and to account for the expectations of its stakeholders. Philip Morris International (PMI) will use the information to continually build its sustainability strategy, the company says.

PMI also looked at the significance of areas like product design, water use and biodiversity throughout its value chain from production to distribution. The company wants to understand how impactful each area is, the scope of the impact and how to mitigate negative situations.

Philip Morris included in the report how its efforts will align with the United Nation’s Sustainable Development Goals. Those included responsible consumption and production and climate action. The company also says it will meet Global Reporting Initiative Standards and the Sustainability Accounting Standards Board as well as other investor-initiated frameworks.

The company says the sustainability materiality assessment is the foundation of its sustainability strategy. It last produced the report in 2018 with an update in 2019. The 2021 report accounted for goals to transition the business beyond tobacco and nicotine products and to update on its 2025 sustainability roadmap.

PMI also says it hopes the information helps it adapt to changing sustainability trends and show its commitment to sustainability efforts to investors and other stakeholders.

Last year PMI updated its low-carbon transition plan, which includes accelerating its carbon neutral plan by 2025 and being net zero by 2040, which is 10 years earlier than an original target. It says it has cut Scope 1, 2, and 3 emissions by at least 50% based on 2010 numbers.

Additionally, PMI intends to be transparent in the process of making sustainable changes and has created the Portfolio of Climate Investments, which it says will show transparency on its emission compensation activities.

Those types of efforts have helped the PMI be recognized on CDP’s A-list for tackling climate and sustainability issues. PMI received A ratings for its efforts in climate change, forests and water security in 2021.

The company says it will continue to update the materiality report and conduct further analyses every three to four years.

“As we continue to strengthen the integration of ESG-related risks into our integrated enterprise risk assessment, conducting periodic sustainability materiality assessments allows us to monitor and adapt our business and long-term strategy to social, environmental, economic, political, and technological changes,” says Jennifer Motles, chief sustainability officer of PMI. “With every assessment, we are able to further embed sustainability into corporate strategy strengthening processes, understanding PMI’s impacts, and delivering decision-useful reporting to our stakeholders.”

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