Philip Morris Expands Green Strategy With Updated Climate Transition Plan Focused on Renewable Energy and Supply Chain Efficiency

Author: Benzinga Newsdesk | November 03, 2025 05:10am

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

Posted In: PM