Philip Morris International Publishes Updated Climate Transition Plan to Achieve Net Zero by 2040

(BUSINESS WIRE)--Philip Morris International Inc. (PMI) (NYSE: PM) today announced the release of its second Climate Transition Plan (CTP 2025), presenting an updated and integrated strategy to achieve net-zero greenhouse gas (GHG) emissions across its value chain by 2040.

The new plan reflects PMI’s continued commitment to a low-carbon future while aligning with science, regulatory frameworks, and stakeholder expectations, and builds on its 2021 Low-Carbon Transition Plan. Further, building on its 2022 Task Force on Climate-related Financial Disclosures (TCFD) report, the CTP 2025 details the results of a comprehensive climate change risks and opportunities (CCRO) assessment PMI conducted in 2024.

“This Climate Transition Plan reinforces our commitment to sustainability as a fundamental business driver at PMI—one that is integrated, performance-based, and economically grounded," said Jacek Olczak, Chief Executive Officer. "By focusing on material climate risks and opportunities, implementing cost-effective interventions, and maintaining robust disclosure practices, we are strengthening PMI’s ability to deliver sustained, long-term value."

Looking toward 2030, CTP 2025 outlines PMI’s key levers for driving decarbonization and resilience:

• Direct operations (scope 1+2): Energy efficiency initiatives, transition to renewable energy, and low-carbon fleet.
• Broader value chain (scope 3): Nature-based solutions, supplier engagement, sustainability by design, and logistics optimization.

“Our focus is on building resilience while managing climate-related risks through both mitigation and adaptation measures. This integrated approach allows us to mitigate our environmental impact, adapt our operations to climate realities, and unlock new sources of value across our supply chain,” said Scott Coutts, Senior Vice President, Operations. “This is not just about reducing our own emissions—it is about leveraging our position to catalyze broader decarbonization."

PMI remains on track to achieve carbon neutrality for its direct operations (scope 1+2) by year-end 2025.

PMI highlighted near- and long-term science-based targets, revalidated by the Science Based Targets initiative (SBTi), using a 2019 baseline. By 2040, the company targets to achieve a:

• 72% reduction in scope 3 Forest, Land, and Agriculture (FLAG) GHG emissions
• 90% reduction in scope 1+2+3 industrial GHG emissions
• Net-zero GHG emissions in our value chain (scope 1+2+3)

By 2030, PMI targets to achieve a:

• 50% reduction in absolute scope 1+2 GHG emissions
• 33.3% reduction in scope 3 FLAG GHG emissions
• 27.5% reduction in scope 3 industrial GHG emissions

“By pioneering solutions that address climate challenges while at the same time unlocking new market opportunities, we are demonstrating that environmental leadership and business excellence are not competing priorities. The innovations we develop, the partnerships we forge, and the standards we champion will shape a more resilient and prosperous business,” said Jennifer Motles, Chief Sustainability Officer. “This is our commitment: to lead boldly at the intersection of purpose and profit, striving to create the most value for shareholders, society, and our shared environment.”

The CTP was prepared following the guidance of the Transition Plan Taskforce (TPT) Disclosure Framework and integrating PMI’s response to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). It provides an update to both PMI’s Low-Carbon Transition Plan issued in 2021 and the company’s 2022 TCFD Report. It also features an index referencing the applicable requirements of IFRS S2 Climate-related Disclosures.

For more information, please visit www.pmi.com/sustainability or download PMI's full Climate Transition Plan 2025. Progress updates are provided annually in PMI’s Integrated Report.

Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods 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, including heat-not-burn, nicotine pouch and e-vapor products. Our smoke-free products are available for sale in 100 markets, and as of June 30, 2025 PMI estimates they were used by over 41 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for 41% of PMI’s first-nine months 2025 total net revenues. Since 2008, PMI has invested over $14 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. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness and healthcare areas and aims to enhance life through the delivery of seamless health experiences. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. 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 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 and/or nicotine 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 natural disasters and pandemics 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 introduce, commercialize, and grow smoke-free 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; 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 smoke-free products’ 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 fourth quarter and year ended December 31, 2024 and the Quarterly Report on Form 10-Q for the third quarter and nine months ended September 30, 2025. 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.

In this release, the term “materiality,” “material,” and similar terms are defined in the referenced sustainability standards and certain regulatory requirements, as may be applicable to us, and are not meant to correspond to the concept of materiality under the U.S. securities laws and/or disclosures required by the U.S. Securities and Exchange Commission.

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