Commercial, GHG Emissions - November 1, 2021
Philip Morris Unveils Plan for Carbon Neutral Operations by 2025
Philip Morris International announced Oct. 27 with the launch of its Low-Carbon Transition Plan its new ambition to achieve carbon neutrality in its direct operations by 2025.
This is an acceleration of the cigarette company’s previous target by five years. PMI is also targeting net-zero emissions across its entire value chain by 2040, an increase from its previous goal of 2050.
PMI plans to establish science-based targets with the SBTi to ensure that its goals meet the criteria of the Paris Agreement. An essential component will be engaging its suppliers to ensure a reduction of Scope 3 emissions.
The company, which is pursuing a long-term goal to eliminate combustible cigarettes from its portfolio and society, is targeting three priority climate areas: reducing energy consumption and optimizing efficiency, promoting the switch to renewable energy and compensating for unavoidable emissions by supporting carbon offsetting projects. PMI adopted two internal carbon costs that will incentivize investments aimed at structurally reducing carbon emissions and plans to invest in carbon credits, reforestation project and carbon removal technologies.
“By presenting our low-carbon transformation strategy, we hope to encourage change and foster engagement with investors and other stakeholders who will be able to evaluate whether our company is appropriately adapting its business model for success in a net-zero carbon economy,” Jennifer Motles, chief sustainability officer, said in a statement. “The LCTP showcases how our targets are underpinned by detailed operational measures and a solid business strategy that are vital to translate ambition into action, achievement, impact, and most important, the only way to safeguard the sustainability of both our business and humanity.”