PMI: Can Sustainable Tobacco Supply Chains Reduce Risk?
The tobacco industry produces more than 84 million tonnes of CO2 every year according to the World Health Organisation.
It reveals roughly 4.5 trillion cigarette filters pollute the environment annually. This can contaminate oceans and rivers and harm marine wildlife.
To mitigate this, Philip Morris International (PMI) has consolidated risks and produced steps to reduce its impact and build a more sustainable supply chain through its Sustainability Materiality Report.
PMI’s report systematically maps impacts, risks and opportunities (IROs) throughout each stage of the supply chain.
The report stresses the importance of engaging supply chain partners as key stakeholders, such as farmers, manufacturers and contractors.
The company’s main priority in the supply chain is its consumers and end users with a focus on product health impact.
“The insights gained through our SMA are more than just data points,” says Jennifer Motles, Chief Sustainability Officer for Philip Morris International, “they are the bedrock on which PMI’s sustainability strategy for 2030 and beyond is being built.”
“These findings have enabled us to clearly identify our material IROs at global level, ensuring our strategic focus remains robust and relevant amid a rapidly evolving external landscape.”
Jennifer will be speaking at Sustainability LIVE's CSO Strategy Forum in New York on the 22 September.
Read more here!
Risks threatening the supply chain
Through its Sustainability Materiality Assessment, PMI has identified material risks that could impact the supply chain.
Its current system contributes to climate change as its activities produce greenhouse gas emissions.
Areas of the supply chain including tobacco cultivation and electronics lead to pressure on wildlife, fragmentation and loss of biodiversity.
There is a risk of ecosystem services collapsing which would lead to shortages in raw materials. This disrupts the supply chain with an increase in sourcing costs and limiting the supply of natural resources.
PMI employs a noncircular design for its electronic products which includes disposable products.
These contain valuable resources that are rarely recycled or reused which can contribute to the depletion of finite natural resources.
How PMI is working towards a sustainable future
In its report, PMI provides solutions to help them work towards a more efficient supply chain.
The company is developing plastic-free filters which could lead to a significant reduction of plastic pollution and degradation of ecosystems in case of improper disposal by consumers.
PMI is working towards a circular supply chain that prioritises waste minimisation, product durability and recyclability and responsible product disposal.
It is developing manufacturing technologies and processes in a circular way which can help decrease cost and increase operational efficiency in the long term.
“As we look ahead, our journey will be defined by ongoing improvement and innovation,” adds Jennifer.
“We remain committed to challenging ourselves to raise the bar for sustainability performance and to make informed choices that aim to generate positive change for our business, society and the planet.”
The insights provided by the report will inform PMI’s sustainability strategy and help future-proof its supply chain into 2030 and beyond.
