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