Philip Morris International Received Fourth Consecutive CDP ‘Triple-A’ Rating for Climate, Forest, and Water
Philip Morris International Inc. (PMI) has received a 'triple-A' rating from CDP for its disclosures on climate change, forests, and water security, positioning the company among the world’s leading companies in environmental transparency and action. PMI has also been recognized for its efforts to halt deforestation and achieve carbon neutrality by 2025. Additionally, the company has committed to advancing the adoption of the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations and intends to publish its first TNFD-aligned report for financial year 2025.
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PMI received a 'triple-A' rating from CDP for its disclosures on climate change, forests, and water security.
The company has maintained a position on CDP’s Climate A List for the past 10 years.
PMI has been recognized for its efforts to halt deforestation and achieve carbon neutrality by 2025.
PMI has been included in an inaugural cohort of organizations that intend to become TNFD Early Adopters.
Philip Morris International's achievement of a 'triple-A' rating from CDP for the fourth consecutive year underscores the company's dedication to environmental sustainability, particularly in the areas of climate change, forests and water security. Such recognition can influence investor perception, potentially making PMI a more attractive investment for those prioritizing environmental, social and governance (ESG) criteria. PMI's commitment to carbon neutrality for scope 1 and 2 emissions by 2025 and net-zero by 2040 for scope 1, 2 and 3, aligns with the increasing demand for corporate responsibility in mitigating climate change impacts.
The company's inclusion in the inaugural cohort of TNFD Early Adopters further reflects its proactive approach to integrating nature-related financial disclosures into its business strategy. This can be seen as a strategic move to anticipate and manage risks associated with biodiversity and natural resources, which are becoming increasingly material to companies' financial performance and resilience. PMI's transparent reporting and alignment with TCFD recommendations may also provide it with a competitive edge, as it can help preempt regulatory changes and enhance stakeholder trust.
Philip Morris International's 'triple-A' CDP rating and its strategic focus on sustainability initiatives have the potential to impact its financial performance positively. Investors are increasingly using ESG scores, like those provided by CDP, to screen investments. A strong ESG performance can lead to a lower cost of capital, as it is often associated with lower risks and better resilience. Moreover, PMI's efforts to optimize water usage in its tobacco growing areas and to halt deforestation, could lead to operational cost savings and mitigate supply chain risks, which can have a direct impact on the bottom line.
PMI's plans to report on TNFD recommendations by 2025 could also affect its long-term financial health. By addressing nature-related risks, PMI may avoid future costs associated with resource scarcity, regulatory compliance and reputational damage. Investors and analysts should monitor PMI's progress on these commitments, as they could influence the company's future earnings and market valuation.
Philip Morris International's alignment with the CDP's disclosure standards and its proactive stance on environmental sustainability are indicative of its risk management strategy. By aiming for carbon neutrality and net-zero emissions, PMI is addressing climate-related risks that can have significant financial implications due to regulatory penalties, operational disruptions and shifts in consumer preferences. The company's strategy to manage its water resources and protect forests also mitigates operational risks, particularly in agriculture-dependent supply chains.
PMI's commitment to TNFD's recommendations represents an understanding of the financial risks associated with biodiversity loss and ecosystem degradation. As nature-related risks become more prominent, PMI's early adoption of the TNFD framework positions it to better identify, assess and manage these risks, which is crucial for long-term business resilience. Stakeholders should consider how PMI's risk mitigation strategies contribute to its overall risk profile and the implications for the company's stability and sustainability.
02/06/2024 - 06:00 AM
Announcement comes on the heels of PMI becoming Early Adopter of the Taskforce on Nature-related Financial Disclosures (TNFD)
STAMFORD, CT --(BUSINESS WIRE)--
For the fourth consecutive year, Philip Morris International Inc. (PMI) (NYSE: PM) has received a “triple-A” rating from CDP for its disclosures on climate change, forests, and water security—placing PMI among the world’s leading companies in environmental transparency and action.
PMI has maintained a position on CDP’s Climate A List for the past 10 years, reflecting its commitment to transparency and performance as the company progresses toward achieving its science-based targets, as well as carbon neutrality for scope 1+2 by 2025, and net zero by 2040 for scope 1+2+3. PMI’s efforts to halt deforestation, moving to zero net deforestation in managed forests by 2030, have further been recognized by CDP, which placed the company on its Forests A List for the fourth consecutive year. This is the fifth year that PMI has been featured on CDP’s Water A List as the company works toward its water optimization targets, which include optimization of 10 million cubic meters of water in its tobacco growing areas by 2030.
“External recognition from organizations like CDP encourages us to continue our transformation journey and commitment to sustainability. We are pleased PMI has received CDP’s ‘triple-A’ distinction for the fourth consecutive time,” said Scott Coutts, Senior Vice President of Operations. “Clear and transparent reporting of our progress helps us find new opportunities for action, identify and tackle growing risks, and get ahead of regulatory and policy changes.”
PMI is also committed to advancing the adoption of the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations and intends to publish its first TNFD-aligned report for financial year 2025. Accordingly, PMI has been included in an inaugural cohort of organizations that intend to become TNFD Early Adopters .
“We recognize the urgency to address climate change and protect biodiversity, and this is why our decarbonization strategy and progress are closely tied to preserving natural ecosystems,” said Jennifer Motles, Chief Sustainability Officer. “We are proud to be an early adopter of the TNFD framework and will be reporting on it in 2025, which builds on the work we have already done to incorporate climate-related risk and opportunities into our overall business strategy and disclosure efforts, following the Taskforce on Climate-related Financial Disclosures (TCFD) recommendations.”
To access PMI’s latest reports such as PMI’s TCFD Report 2022 , PMI’s Low-Carbon Transition Plan , PMI’s Water & Biodiversity Ambitions 2022 , as well as additional information on its approach to sustainability, please visit pmi.com/sustainability .
CDP
CDP is a global nonprofit that runs the world’s environmental disclosure system for companies, cities, states, and regions. Founded in 2000 and working with more than 680 financial institutions with over $130 trillion cdp.net to find out more.
The Taskforce on Climate-related Financial Disclosures (TCFD)
The Financial Stability Board (FSB) created the Taskforce on Climate-related Financial Disclosures (TCFD) in 2015 to improve and increase reporting of climate-related financial information. Following the release of the taskforce’s 2023 Status Report, upon request of the FSB, the TCFD has been disbanded. The FSB has asked the IFRS Foundation to take over the monitoring of the progress of companies’ climate-related disclosures.
For more information, please visit About | Taskforce on Climate-Related Financial Disclosures (TCFD) (fsb-tcfd.org) .
The Taskforce on Nature-related Financial Disclosures (TNFD)
The Taskforce on Nature-related Financial Disclosures (TNFD) is a market-led, science-based, and government-backed initiative providing organizations with the tools to act on evolving nature-related issues. The TNFD has developed a set of disclosure recommendations and guidance for organizations to report and act on evolving nature-related dependencies, impacts, risks, and opportunities. The recommendations and guidance will enable business and finance to integrate nature into decision-making, and ultimately support a shift in global financial flows away from nature-negative outcomes and toward nature-positive outcomes. After two years of design and development in partnership with 20 knowledge partners and the benefit of extensive consultation with market participants and other stakeholders, the TNFD launched its final recommendations on September 18, 2023. With the recommendations released, the taskforce now focuses its efforts on encouraging and supporting voluntary market adoption and supporting efforts to address the knowledge, capacity-building, and data needs of market participants. Launched in 2021, the TNFD comprises of 40 senior executives drawn from leading financial institutions, corporates, and market service providers, with combined assets of over US$20 trillion . Twenty core knowledge partners from leading science, standards, and data bodies feed into the work of the taskforce. A group of over 1,300 organizations support the work of the taskforce as institutional members of the TNFD Forum. For more information, please visit The Taskforce on Nature-related Financial Disclosures (tnfd.global) .
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 has authorized versions of PMI’s IQOS Platform 1 devices and consumables and Swedish Match’s General snus as modified risk tobacco products. As of September 30, 2023, PMI’s smoke-free products were available for sale in 82 markets, and PMI estimates that approximately 19.7 million adults around the world had already switched to IQOS and stopped smoking. Smoke-free products accounted for approximately 36.2% of PMI’s total third-quarter 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 .
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Philip Morris International
david.fraser@pmi.com
Source: Philip Morris International
What rating did PMI receive from CDP for its disclosures on climate change, forests, and water security?
PMI received a 'triple-A' rating from CDP for its disclosures on climate change, forests, and water security.
How long has PMI maintained a position on CDP’s Climate A List?
PMI has maintained a position on CDP’s Climate A List for the past 10 years.
What is PMI's commitment regarding deforestation and carbon neutrality?
PMI has been recognized for its efforts to halt deforestation and achieve carbon neutrality by 2025.
What is PMI's plan regarding the adoption of the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations?
PMI has been included in an inaugural cohort of organizations that intend to become TNFD Early Adopters.
