How Is PMI Building a Sustainable Tobacco Supply Chain?

The tobacco industry's environmental impact is significant with the World Health Organisation stating it produces more than 84 million tonnes of CO₂ annually.

A further environmental consequence is the pollution from an estimated 4.5 trillion cigarette filters every year which can contaminate water sources and harm marine life.

In response, Philip Morris International (PMI) has worked to consolidate its environmental risks and outline steps to lessen its impact.

PMI has produced a Sustainability Materiality Report to build a more sustainable supply chain by systematically mapping its impacts risks and opportunities (IROs).

The report also highlights the necessity of engaging partners throughout the supply chain including farmers manufacturers and contractors as important stakeholders.

Analysing supply chain risks and opportunities

Through its Sustainability Materiality Assessment PMI has identified several material risks that could affect its supply chain.

The report acknowledges that its current operational framework contributes to climate change through the emission of greenhouse gases.

Key areas within the value chain such as tobacco cultivation and the production of electronics place pressure on wildlife contributing to the fragmentation and loss of biodiversity.

A potential collapse of ecosystem services presents a further risk which could lead to shortages in raw materials.

This in turn could disrupt the supply chain by increasing sourcing costs and limiting the availability of essential natural resources.

“The insights gained through our SMA are more than just data points,” says Jennifer Motles, Chief Sustainability Officer for Philip Morris International.

“They are the bedrock on which PMI’s sustainability strategy for 2030 and beyond is being built.”

Jennifer explains that the findings have allowed PMI to define its material IROs at a global level.

“These findings have enabled us to clearly identify our material IROs at a global level, ensuring our strategic focus remains robust and relevant amid a rapidly evolving external landscape,” she says.

A move toward circularity and innovation

The report from PMI details solutions intended to help PMI move towards a more efficient and sustainable supply chain.

A primary issue identified is the noncircular design of its electronic products which includes disposable items.

These products contain valuable resources that are often not recycled or reused which can contribute to the depletion of finite natural resources.

To address this PMI is working toward a circular supply chain model.

This approach prioritises waste minimisation enhanced product durability and recyclability and responsible end-of-life product disposal.

By developing manufacturing technologies and processes with circularity in mind PMI believes it can decrease costs and increase its operational efficiency in the long term.

Product design and future sustainability

A specific innovation highlighted in the report is the development of plastic-free filters.

This development could lead to a significant reduction in plastic pollution and the degradation of ecosystems that can occur from improper disposal by consumers.

The insights provided by the report are set to inform PMI’s broader sustainability strategy and help future-proof its supply chain.

“As we look ahead our journey will be defined by ongoing improvement and innovation,” adds Jennifer.

“We remain committed to challenging ourselves to raise the bar for sustainability performance and to make informed choices that aim to generate positive change for our business society and the planet.”

PMI’s main priority in the supply chain remains its consumers and the end-of-life impact of its products.