Philip Morris International Sustainability Report Shows Relentless Business Shift Towards Smoke-Free Future

Philip Morris International Sustainability Report Shows Relentless Business Shift Towards Smoke-Free Future

Philip Morris International Inc. (“PMI”) (NYSE: PM) today published its third Sustainability Report (2017), outlining the concrete steps being taken to fundamentally transform its business by putting smoke-free products at the core of PMI’s sustainability efforts to address wider societal challenges, drive operational excellence, manage its social impact and reduce its environmental footprint. PMI’s commitment and ambition is to replace cigarettes as soon as possible with better alternatives to smoking for the millions of men and women who would otherwise continue to smoke.

In its report, PMI provides a more comprehensive picture of its sustainability activities. With the aim of achieving greater transparency and facilitating the assessment of its progress, PMI has included a fuller set of metrics and data trends. In addition, the company has provided more contextual information on its business and how sustainability is managed, taking into account feedback received on its 2016 report.

Last year, PMI introduced a set of Business Transformation Metrics to track progress against its goal of a smoke-free future. Key 2017 milestones included:

  • PMI’s resource allocation continues to shift to smoke-free products, which accounted for 74 percent of global R&D expenditure and 39 percent of global commercial spend.
  • Smoke-free products1represented approximately 4.4 percent of PMI’s shipment volume and around 13 percent of net revenues, excluding excise taxes.
  • PMI estimates that, by the end of 2017, over 4.7 million adult smokers had stopped smoking cigarettes and made the change to IQOS2(PMI’s main smoke-free product), while approximately 10,000 more consumers are switching every day.

The report also provides an overview of PMI’s wider sustainability efforts to create long-term value, from how it is addressing social and environmentalImpacts to managing the impact of transformation on PMI’s value chain and excelling in how it operates. Key progress in 2017 included:

  • More than one-third, 34.4 percent, of the management positions at PMI held by women, showing progress against the company’s goal of reaching 40 percent by 2022.
  • PMI’s rollout of Responsible Sourcing Principlesto help identify and manage labor issues in its non-agricultural supply chain.
  • Environmental milestones include being recognized for the fourth consecutive year on CDP’s Climate A-List, and for the first time its water programs achieved the CDP Water A-list ranking.3

As for operational excellence, PMI remains focused on securing the integrity of its supply chain through its efforts to tackle illicit trade in tobacco products, while also pushing transparency further by publishing its approach to corporate tax and data privacy, as well as an overview of its Marketing Principles and Principles for Engagement with third parties.

The progress PMI has made is an indication of its sustainability ambitions. PMI is on course with its business transformation, delivering on its CO₂ reduction targets, improving in the area of inclusion and diversity to meet key goals and strengthening the governance of its sustainability management.

The report also highlights how, going forward, reducing the environmental footprint of the smoke-free products’ manufacturing process, promoting crop diversification among tobacco farmers and equipping PMI employees to successfully transform the company are essential.

The report in full is available here on www.PMI.com.

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Dilek Bil spent 33 years in both corporate and entrepreneurial ventures.

Worked 10 years in banking for American Express Bank, BNP-Ak-Dresdner Bank and Société Générale. Her years in financial industry were mostly concentrated on introducing new and innovative financial instruments to help grow volume of trade finance, especially for food and  agricultural products to catalyze  a shared value economy.

Co-founded Kangaroo İletişim in 1994, a brand strategy and advertising agency, worked with international brands such as Volvo, VW and Garanti. End of 2011, spun-off advertising and re-structured her business as  a sustainability consultancy and communications agency. She currently advises companies in creating, defining, building, measuring more purposeful businesses, strategies, brands and compelling communications.

Dilek Bil also serves on the Board of Akmerkez Gayrimenkul Yatirim Ortakligi AS., where she leads the ‘Risk’ and ‘Corporate Governance’ committees.

Dilek Bil created and anchored a weekly TV show on Cnbc-e, named  “Sürsün Bu Dünya”. She interviewed more than 40 opinion leaders  -corporate CEO’s, policy makers, academicians, NGO presidents-  to encourage and show them a new direction of  a sustainable economic model with market opportunities and profitabilty.

Dilek Bil is among inspirational leaders in women empowerment and sustainability, in pursing her task, she also presents at conferences  as well as to students.

Dilek Bil has been actively working in civil society:

Recipient of the “2017 Women of the Decade in Media and Social Change” award by the Women Economic Forum.

Honorary board member and former president of KAGIDER (Women Entrepreneurs Association of Turkey).

Founding member and the Vice-President of FODER (Financial Literacy and Inclusion Association of Turkey).

Member of the board of trustees WWF-Turkey.

Member of the Strategic Advisory Group for International Council on Women’s Business Leadership.

Former board member of Turkish-British Business Council of DEIK.

Works closely with many civil society organizations: UNSDSN
German Bioeconomy Council, ALL Ladies League

Dilek Bil is an amateur in gastronomy and oenology.

Board member of Accademia Italiana della Cucina.

Founding member of 28-year-old Wine Association of Turkey,

Dilek Bil graduated from Northport High School-New York and has a BA degree from University of North Texas U.S.A., married and has a son.