Inside PMI's Smoke-Free Sustainable Supply Chain Pivot

Philip Morris International (PMI) is known for producing tobacco products, but the company is now directing its strategy towards a future without cigarettes.

The company supplies smoke-free products to 97 markets, aiming to curb tobacco’s impact not just on consumers, but on the planet.

At the heart of this shift lies a deep focus on transforming its supply chain, from farming and production to packaging and distribution, with a clear goal: sustainability from end to end.

Tobacco's environmental toll is stark. The World Economic Forum (WEF) highlights that tobacco production contributes to water and soil contamination, beach and street pollution, and even microplastic dispersion.

The WEF links the industry to the annual destruction of 3.5 million hectares of land, the felling of six billion trees and the use of 22 billion tonnes of water.

These figures have prompted the transformation PMI wants to lead.

PMI’s Chief Sustainability Officer Jennifer Motles is one of the key figures steering this transformation.

With more than a decade at PMI, she stepped into the CSO role in 2020 after working in the legal sector. She also holds a diploma in Behavioural Economics from Harvard Business School. In 2025, she received the CSO Peer Award, a recognition given by sustainability professionals acknowledging those who lead impactful work in difficult sectors.

On LinkedIn, she writes: “Recognising sustainability teams working in challenging industries speaks to something we all understand: how difficult it is to drive change from within complex systems.

"True transformation requires people willing to navigate doors that more often than not are closed, skeptical stakeholders, and the inevitable ‘one step forward, two steps back’ moments that come with systemic change.”

This mindset is essential, especially when PMI’s entire supply chain, from agriculture to distribution, is interwoven with deep-rooted issues. Transforming it means more than producing new products. It requires addressing labour, carbon emissions, water usage and waste generation at every step.

The company begins its shift by redesigning its products. PMI reports that 38.6 million adults now use its smoke-free alternatives, which are devices designed to heat tobacco instead of burning it.

Since 2021, more than 867,000 of these devices are either repaired or refurbished, aligning with a circular economy model - an approach that focuses on reuse and waste reduction. This design principle is key in reducing the environmental footprint of consumer use.

Building better systems from the farm up

Supply chain transformation starts at the source.

PMI says that 99% of the farmers it contracts now earn a living income—a threshold ensuring that they can afford a decent standard of living. PMI links this effort directly to its sustainability commitments, aiming to eliminate systemic labour issues while also raising economic standards in tobacco-producing regions.

Carbon neutrality also features prominently in PMI’s operations. As of now, 61% of its manufacturing sites hold carbon neutral certifications.

The company’s broader environmental agenda includes halving deforestation across its tobacco, pulp and paper supply chains, promoting biodiversity and taking on major water usage challenges.

Jacek Olczak, CEO of PMI, makes the connection between business transformation and sustainability clear: “I’m pleased to report substantial progress in advancing the sustainability of our business, which is inextricably linked to our business transformation.

"Our drive toward a smokefree future and our commitment to sustainability are deeply integrated. Both reflect our purpose to create long-term value while addressing our products’ impacts on society and the environment.”

Goals tied to science and accountability

PMI sets its long-term ambition on becoming mostly smoke-free by 2030. The company outlines this path through developing and scaling up science-based alternatives to cigarettes, along with deploying youth access prevention programmes to control how and where these products are sold.

Tackling litter also plays a role. PMI adopts eco-design principles for its smoke-free products to discourage consumer littering and to support product circularity. That includes using materials and design features that promote reuse, repair or recycling, and minimising single-use components.

Internally, PMI continues to pursue fairness and inclusivity across its operations.

From eliminating exploitative labour practices to building resilience into its farming communities, the company ties human rights and environmental responsibility directly into its supply chain.

Jennifer adds: “Change requires us to listen across differences, find areas of compromise, and create solutions that work for everyone involved. It means staying in the room even when it’s uncomfortable and recognizing that meaningful work can emerge from the most unexpected places.”

As PMI continues to move away from cigarettes, its supply chain becomes the engine of this shift - not just in how products are made, but in how they affect people, communities and ecosystems.