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ESG Evaluation: Philip Morris International

PMI operates in a sector that is highly exposed to sustainability risks, and in which very few companies participate. We see PMI’s move into RRPs and efforts to mitigate risks in its supply chain as positively differentiating it from its tobacco peers. We recognize PMI’s strong management relative to other tobacco companies on issues of child labor, which the company plans to eradicate by 2025, and greenhouse gas (GHG) emissions from tobacco curing. Its near-term focus is to remain in combustibles and maintain market share, but its long-term ambition is to switch smokers to its RRPs.

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