Preserve nature

Natural capital is a wealth we all share and depend on. There is broad scientific consensus on the urgent need to protect ecosystems’ biodiversity and halt and reverse nature loss, aligned with the Kunming-Montreal Agreement.

 

 

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Our 2025 Roadmap goal

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PRESERVE NATURE

Promote biodiversity, address critical water challenges, ensure no conversion of natural ecosystems, and halt deforestation in both our tobacco and pulp and paper supply chains.

Key performance indicators to track our progress

Promote biodiversity, address critical water challenges, ensure no conversion of natural ecosystems, and halt deforestation in both our tobacco and pulp and paper supply chains
Progress on track

In 2023, we achieved 94 percent of tobacco purchased at no risk of net deforestation of managed natural forest and no conversion of natural ecosystems, and 95 percent of paper, board, and pulp-based supplies purchased at no risk of gross deforestation of primary and protected forests.* Our water stewardship initiatives have contributed to optimizing a total of 8.1 million cubic meters of water in our tobacco-growing areas since 2019, putting us well on track to achieving our aspiration to optimize 25 million cubic meters of water by 2033.**

*For definitions, please see PMI’s Zero Deforestation Manifesto and PMI’s Sustainability KPI Protocol 2023.
**Indicator is based on the World Resources Institute’s volumetric benefit accounting methodology and is verified by an external third party.

fundamentals background

See full performance metrics

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Learn more about PMI’s Sustainability Index in our Integrated Report 2023. See the full performance metrics and related footnotes here.

The right thing to do

Our value chain involves a significant agricultural supply chain, that can have far-reaching effects on the environment, impacting various natural ecosystems.

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The right thing to do

Our value chain involves a significant agricultural supply chain, that can have far-reaching effects on the environment, impacting various natural ecosystems.

Deploying practices to halt deforestation, protect biodiversity, and manage water sustainably can contribute to the preservation of fundamental ecosystem services we collectively depend on, including soil fertility, clean air and water, protection from natural disasters, and recreational and cultural inspiration, and the potential subsequent loss of economic value. Moreover, a healthy natural ecosystem plays a vital role in tackling climate change, with land and oceans absorbing and storing carbon from the atmosphere.

Efforts to reduce our footprint on nature and operate within the boundaries of our planet’s ecological limits can also contribute to tackling environmental inequality, as the negative impacts of changes in climate, biodiversity, and ecosystem functions often disproportionately affect the world’s most impoverished communities.

The business case

Our business activities rely on natural resources and healthy ecosystems. The degradation and loss of natural capital can cause disruptions and increase production costs.

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The business case

Our business activities rely on natural resources and healthy ecosystems. The degradation and loss of natural capital can cause disruptions and increase production costs. The raw materials used in our products rely on fertile soil, strong biodiversity, stable climate conditions, and access to water. As a business with an agricultural supply chain, it is paramount that we contribute to protecting and preserving nature and the ecosystems where we operate. Even small changes to the balance of the natural environment can damage crop productivity, increase production costs linked to remediation and adaptation measures, and negatively impact farmers’ livelihoods, as well as those of communities living in the area.

Promoting the efficient use of natural resources and taking steps to protect, preserve, and improve them help manage risks and prepare us to respond to regulation that will norm our performance and disclosures related to ecosystem degradation and the cost of biodiversity loss.

Further, we understand the importance of working to halt the destruction of natural habitats, including avoiding and compensating for losses, in order to guard against potential financial and reputational risk.

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Our progress in 2023

Read more in our Integrated Report
Related articles, case studies, and videos
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Zoom in: Preserving Nature

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Supply chain landscape

Managing our supply chain sustainably

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Related reports, policies, and documents

Environmental Commitment

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Responsible Sourcing Principles

Download

Good Agricultural Practices (GAP)

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Zero Deforestation Manifesto

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Water Stewardship Policy

Download

Sustainability KPI protocol 2023

Download

Preserve nature report

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Looking ahead

We aim to complete the design of our biodiversity strategy in 2024, cascading the learnings and experience that we are building through our participation in the Science Based Targets Network preparer group. During the year, we plan to further strengthen our biodiversity footprint assessment. The objective will be to increase our visibility of impacts along our value chain. Importantly, as our company continues to transform, we will also account for changes related to the acquisition of Swedish Match, as well as the increasing shift into electronics supply chain—posing a new set of biodiversity challenges and opportunities. These efforts will help inform the design of impactful interventions moving forward and support our work towards establishing science-based targets for nature.

Building on our robust performance and transparency regarding how we manage natural capital—notably recognized by CDP, we welcome regulations such as the new European Union Deforestation Regulation (EUDR) that raise the bar on avoiding forest conversion and that further encourage companies to contribute to nature protection. We closely follow the development of such regulation and prepare for its application, particularly with suppliers and third-party partners in our supply chain. In this context, we will also seek to identify new meaningful opportunities to expand our Perfect ForestTM concept, a nature-based solution concept to preserve forest resources.

We will continue to thoroughly address nature-related risks connected to our value chain in order to minimize adverse impacts and protect natural ecosystems. The TNFD disclosure recommendations and guidance to report and act on evolving nature-related dependencies, impacts, risks, and opportunities, will help PMI strengthen its work and approach to preserve nature—aiming to achieve its 2033 and 2050 aspirations. As an early adopter of the TNFD framework, and building on our recent TCFD disclosures, we plan for TNFD-aligned disclosures for the 2025 financial year. To prepare for this, we will update our public commitment on water while developing and publishing a new one focused on biodiversity. These will be the backbone of our revamped Environmental Commitment, which we plan to publish before the end of 2024.

We are committed to continue strengthening our efforts to preserve nature by protecting biodiversity, halting deforestation, managing water responsibly, and reducing waste. We will continue to integrate learnings and progress of our water stewardship program, our forest positive program and our tobacco-focused good agriculture program under one approach, in line with our ambition to achieve no net loss on ecosystems connected to our supply chain by 2033, and, by 2050, to contribute toward a net positive impact on nature and a positive impact on water resources.

This online content about our Integrated Report should be read in conjunction with PMI’s Integrated Report 2023. This report includes metrics that are subject to measurement uncertainties due to inherent limitations in the nature and methods for data collection and measurement. The precision of different collection and measurement techniques may also vary. This report includes data or information obtained from external sources or third parties. Unless otherwise indicated, the data contained herein cover our operations worldwide for the full calendar year 2023 or reflect the status as of December 31, 2023. Where not specified, data comes from PMI financials, nonfinancials, or estimates. Unless explicitly stated, the data, information, and aspirations referenced in online content do not incorporate PMI’s wellness and healthcare business, Vectura Fertin Pharma. Regarding the Swedish Match acquisition, completed late 2022, unless otherwise indicated, online content does not include information pertaining to their sustainability performance. Please also refer to "This report at a glance" on page 2 of PMI's Integrated Report 2023 for more information. Aspirational targets and goals do not constitute financial projections, and achievement of future results is subject to risks, uncertainties and inaccurate assumptions, as outlined in our forward-looking and cautionary statements on page 214. In PMI's Integrated Report 2023 and in related communications, the terms “materiality,” “material,” and similar terms are defined in the referenced sustainability standards 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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