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Philip Morris International

Philip Morris International Tops Forbes’ 2024 Net Zero Leaders List

No. 1 ranking marks PMI’s second consecutive year among top 10 U.S. companies driving the transition to a low-carbon economy

2024-06-05 10:23
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STAMFORD, CT--()--Philip Morris International Inc. (PMI) (NYSE: PM) has ranked first in Forbes’ 2024 Net Zero Leaders ranking,1 which highlights the 100 U.S. public companies best positioned to reduce their greenhouse gas (GHG) emissions.

Forbes used data from firms Sustainalytics and Morningstar to rank companies’ commitment to a net zero future. It also considered each company’s management structure to aid in risk assessment, governance, strategy, metrics for achieving decarbonization goals for scopes 1+2+3, as well as financial strength to withstand industry competition and economic turmoil.

“As we transform our company toward a smoke-free future, we strive to do so in the most sustainable way possible, including by leading in decarbonization,” said Jacek Olczak, Chief Executive Officer of PMI. “We are honored to be recognized by Forbes as the highest-ranked company among businesses at the forefront of working toward net zero.”

“Our approach to sustainability goes beyond minimizing negative externalities and mitigating risks. Deeply connected to our transformation strategy, sustainability has always been intended to embody a profound opportunity for innovation, growth, and long-term value creation,” explained Jennifer Motles, Chief Sustainability Officer at PMI. “Our dedication reflects our response to the concerns of our shareholders and other stakeholders alike, and our climate strategy aims to address pertinent climate change-related risks and build resilience while seizing opportunities presented by a low-carbon future.”

“We thank Forbes for its recognition of our efforts to tackle climate change as we remain steadfast in our commitment to accelerating progress toward a net zero future,” said Scott Coutts, Senior Vice President, Operations, at PMI. “Reducing our scope 3 emissions will continue to be a priority. Our efforts will remain focused on reducing GHG emissions from our value chain as we continue progressing toward our SBTi-validated target to reach net zero emissions for scopes 1+2+3 by 2040.”

This distinction complements growing external recognition of PMI’s sustainability performance and reporting, including:

  • Inclusion in CDP’s Supplier Engagement Leader Board for the seventh year (announced March 2024)
  • Achievement of CDP’s Triple A rating for the fourth consecutive year—placing PMI among the world’s leading companies in environmental transparency and action (announced February 2024)
  • Early Adopter of the Taskforce on Nature-related Financial Disclosures (TNFD) framework (as of January 2024)
  • Inclusion in the Dow Jones Sustainability World Index (DJSI) for the first time and the Dow Jones Sustainability North America Composite Index for the fourth consecutive year (index inclusion effective as of Dec. 18, 2023), in addition to being awarded “Prime” status in the ISS ESG Corporate Rating (ISS ESG Rating as of Nov. 21, 2023)
  • Validation from the Science Based Targets initiative (SBTi) on its Forest, Land, and Agriculture (FLAG) emissions reduction targets, making PMI one of very few companies to achieve this recognition (as of August 2023)

Please visit pmi.com/sustainability to learn more about sustainability at PMI and for access to additional sustainability resources, including PMI’s Integrated Report 2023TCFD ReportPreserve Nature ReportReduce Post-Consumer Waste Strategy ReportSustainability Materiality Report, and Low-Carbon Transition Plan.

Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International (PMI) is a leading international tobacco company, actively delivering 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 over $12.5 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 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 has authorized versions of PMI’s IQOS devices and consumables and Swedish Match’s General snus as Modified Risk Tobacco Products. As of December 31, 2023, PMI's smoke-free products were available for sale in 84 markets, and PMI estimates that approximately 33 million adults around the world use PMI's smoke-free products. Smoke-free business accounted for approximately 37% of PMI’s total full-year 2023 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.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and goals and other forward-looking statements, including statements regarding expected financial or operational performance and business plans and strategies. Achievement of future results is subject to risks, uncertainties, and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.

PMI’s business risks include: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; the impact and consequences of Russia’s invasion of Ukraine; changes in adult smoker behavior; the impact of COVID-19 on PMI’s business; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as components and materials for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies.

PMI’s future profitability may also be adversely affected should it be unsuccessful in its attempts to produce and commercialize reduced-risk products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; if it is unable to attract and retain the best global talent, including women or diverse candidates; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our reduced-risk product category’s performance.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI’s Annual Report on Form 10-K for the year ended December 31, 2023 and the Quarterly Report on Form 10-Q for the first quarter ended March 31, 2024. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

1 © 2024 Forbes Media LLC. used with permission.

Contacts

Philip Morris International
David Fraser
T. +41 (0)58 242 4500
E. david.fraser@pmi.com

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