Distinction represents continued progress in PMI’s transformation for good and follows inclusion on Forbes’ Net Zero Leaders list as one of the companies best positioned to transition to a low-carbon economy
STAMFORD, CT--(BUSINESS WIRE)--Philip Morris International Inc. (PMI) (NYSE: PM) announced today that the Science Based Targets initiative (SBTi) has verified its Forest, Land, and Agriculture (FLAG) emissions reductions targets. PMI is one of very few companies so far to achieve this recognition.
Land use and agricultural sectors offer vast opportunities for GHG removals, including agroforestry, soil carbon sequestration, and forest restoration, for example. Adopting a science-based target for Forest, Land, and Agriculture will support PMI to further accelerate its efforts to reduce greenhouse gas (GHGs) emissions arising from land use.
According to the Science Based Targets initiative, “SBTi’s FLAG guidance provides the world’s first standard method for companies in land-intensive sectors to set science-based targets that include land-based emission reductions and removals. The guidance enables companies to reduce the 22% of global greenhouse gas emissions from agriculture, forestry, and other land use.”
PMI maintains its science-based target to reach net-zero emissions for scopes 1, 2, and 3 by 2040, which was validated by SBTi in July 2022. As part of its ongoing net-zero commitment, PMI has now pledged to reduce absolute scope 3 emissions related to forestry, land, and agriculture (FLAG) by 33.3% by 2030 in line with SBTi best practice. PMI aspires to reducing all other scope 3 emissions by 27.5% within the same timeframe. PMI’s 2040 net-zero target remains in line with a 1.5-degree scenario, aligned with leading edge target-setters across business industries. PMI outlines comprehensive plans to achieving net-zero by 2040 in its Low-Carbon Transition Plan.
“We renew and continue our effort to direct our activities toward decarbonizing our value chain and are committed to aligning our work with relevant updates on international methodologies, such as the Science Based Targets for Nature (SBTN) and guidance from the SBTi on forest, land, and agriculture (FLAG) science-based targets,” said Scott Coutts, Senior Vice President of Operations at PMI.
“The SBTi’s science-based targets on forestry, land use, and agriculture will become the gold standard for companies within the agricultural sector to accelerate emissions reductions, and we are pleased to be early adopters,” said Jennifer Motles, Chief Sustainability Officer at PMI. “The SBTi’s validation demonstrates that our targets are rooted in science and aligned with the Paris Climate Agreement’s goal to keep global warming to the 1.5°C threshold that is considered the limit beyond which climate-related impacts will be catastrophic.”
Ahead of the validation, PMI was included in Forbes’ first-ever Net Zero Leaders ranking,1 which highlights the 100 U.S. public companies that are best positioning themselves to reduce their greenhouse-gas emissions and ultimately offset them by 2050. On the inaugural ranking, which considered initiatives to reduce carbon emissions from the company’s own operations and that of its suppliers, vendors, and customers, PMI ranked seventh overall, and first within its peer group. The ranking also considered the company’s management structure around risk assessment, governance, strategy, and metrics for achieving its decarbonization goals and its financial strength to withstand industry competition and economic turmoil.
Read PMI’s Low-Carbon Transition Plan, PMI’s Integrated Report 2022, or visit pmi.com/sustainability to learn more. Additional information about the SBTi and PMI’s approved targets are available at https://sciencebasedtargets.org.
Science Based Targets initiative
The Science Based Targets initiative (SBTi) is a global body enabling businesses to set ambitious emissions reductions targets in line with the latest climate science. It is focused on accelerating companies across the world to halve emissions before 2030 and achieve net-zero emissions before 2050. The initiative is a collaboration between CDP, the United Nations Global Compact, World Resources Institute (WRI), and the World Wide Fund for Nature (WWF) and is one of the We Mean Business Coalition commitments. The SBTi defines and promotes best practice in science-based target setting, offers resources and guidance to reduce barriers to adoption, and independently assesses and approves companies’ targets. www.sciencebasedtargets.org @sciencetargets.
Philip Morris International: Delivering a Smoke-Free Future
Philip Morris International (PMI) is a leading international tobacco company working to deliver a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products. Since 2008, PMI has invested more than USD 10.5 billion to develop, scientifically substantiate, and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. In November 2022, PMI acquired Swedish Match—a leader in oral nicotine delivery—creating a global smoke-free champion led by the companies’ IQOS and ZYN brands. The U.S. Food and Drug Administration (FDA) has authorized versions of PMI’s IQOS Platform 1 devices and consumables and Swedish Match’s General snus as modified risk tobacco products (MRTPs). As of June 30, 2023, PMI's smoke-free products were available for sale in 78 markets, and PMI estimates that approximately 19.4 million adults around the world had already switched to IQOS and stopped smoking. Smoke-free products accounted for approximately 35.4% of PMI’s total 2023 second-quarter net revenues. With a strong foundation and significant expertise in life sciences, PMI announced in February 2021 its ambition to expand into wellness and healthcare areas and, through its Vectura Fertin Pharma business, aims to enhance life through the delivery of seamless health experiences. For more information, please visit www.pmi.com and www.pmiscience.com.
Philip Morris International: SBTi Near- and Long-Term Targets
Overall Net-Zero Target: Philip Morris International commits to reach net-zero GHG emissions across the value chain by 2040.
Near-Term Targets Energy/industrial: Philip Morris International commits to reduce absolute scopes 1 and 2 GHG emissions 50% by 2030 from a 2019 base year.
Philip Morris International also commits to reduce absolute scope 3 GHG emissions 27.5% within the same timeframe.*
*The target boundary includes land-related emissions and removals from bioenergy feedstocks. FLAG: Philip Morris International commits to reduce absolute scope 3 FLAG GHG emissions 33.3% by 2030 from a 2019 base year.* Philip Morris International also commits to no deforestation across its primary deforestation-linked commodities with a target date of FY2025. *The target includes FLAG emissions and removals.
Long-Term Targets Energy/industrial: Philip Morris International commits to reduce absolute scopes 1, 2, and 3 GHG emissions 90% by 2040 from a 2019 base year.*
*The target boundary includes land-related emissions and removals from bioenergy feedstocks. FLAG: Philip Morris International commits to reduce absolute scope 3 FLAG GHG emissions 72% by 2040 from a 2019 base year.*
*The target includes FLAG emissions and removals.
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