PMI's report details progress towards its smoke-free vision
DUBAI: Philip Morris International Inc recently published its sixth annual Integrated Report, marking the company's 10th year of business transformation and sustainability disclosures. The document details PMI's continued progress in delivering long-term value to shareholders and other stakeholders while advancing its purpose of having its smoke-free alternatives make cigarettes obsolete as soon as possible.
'Our 2024 Integrated Report celebrates a milestone year that marked the 10th anniversary of the commercialization of IQOS, VEEV and ZYN and our journey toward achieving one of the most ambitious business transformations in modern history,' said Jacek Olczak, Chief Executive Officer of PMI. 'By the end of 2024, our efforts to expand access to smoke-free products allowed us to reach 95 markets with an estimated 38.6 million adult users, demonstrating our deep commitment to sustainability and business transformation.
These achievements fill me with profound optimism as we continue to create long-term value while addressing our product and operational impacts, not only sustaining but accelerating our momentum, accomplishing a number of goals that only a few years ago seemed too ambitious.' The Integrated Report describes the company's strategy, business model, and both product-related ('what' the Company produces) and operational-related ('how' the Company operates) performance.
The report explains the Company's performance and approach to sustainability in the context of a comprehensive five-pillar framework that includes compliance and risk mitigation as well as operational efficiency, innovation, and purposeful impact. It emphasizes how regulatory compliance serves as the foundation while risk management ensures business resilience.
It highlights how this approach streamlines processes for enhanced productivity and profitability, aligns sustainability with long-term business goals to drive innovation and competitive value, and ultimately aims to lead a significant industry transformation by influencing standards, shaping policy, and driving systemic change that redefines market expectations.
'The path to transformation is rarely linear, and our experience in 2024 reinforces a crucial truth: Achieving a smoke-free future requires collective effort beyond our direct control. Our smoke-free business accounted for approximately 39 percent of PMI's total net revenues for the full year 2024, with an acceleration in top- and bottom-line growth. Competing in the cigarette market while simultaneously working to transform it is not a contradiction but a necessary phase in our journey,' said Emmanuel Babeau, Chief Financial Officer of PMI. 'Our integrated approach—linking financial success with positive impact—positions us well to continue investing in the future. We remain confident that our financial strength, combined with our sustainability leadership, is the right path forward.'
Product and Operational Impact: Performance Highlights
* Six markets where more than 75% of net revenues are generated from smoke-free.
* Over $14 billion cumulative investment behind smoke-free products since 2008 (2023: $12.5)
* 99% of total shipment volume covered by youth access prevention programs in indirect retail channels (2023: 98%)
* 99% of contracted farmers supplying tobacco to PMI who make a living income (2023: 96%)
* 10 human rights impact assessments completed since 2018 in highest-risk countries (2023: 8)
* 61% of PMI manufacturing facilities certified as carbon neutral (2023: 43%)
* First pre-certified environmental product declarations (EPD) published on IQOS ILUMA i series of devices
'We understand the importance of setting ambitious yet realistic targets that drive our business success. Our Sustainability Index has proven instrumental in ensuring our ambitions are balanced and our metrics are objective, while our enhanced nonfinancial data governance helps us report with precision and consistency,' said Jennifer Motles, Chief Sustainability Officer of PMI.
'Our commitment to sustainability is inseparable from future-proofing our business, creating tangible impacts within our control and sphere of influence, and contributing to a transformation that extends beyond our company.' The Integrated Report 2024 has been prepared with reference to the Global Reporting Initiative (GRI) Universal Standards (2021) and relevant topic-specific standards. The report takes into account guidance from the International Sustainability Standards Board (ISSB) of the IFRS Foundation, including using its SASB Standards, Integrated Thinking Principles, and Integrated Reporting Framework.
PMI's SASB Index and GRI Index, which also maps the principles and standards of the UN Global Compact (UNGC), is available on PMI.com. The report is accompanied by the PMI Sustainability KPI Protocol 2024, which provides a transparent explanation of how we define and measure progress for each Sustainability Index KPI. Please visit pmi.com/sustainability to learn more and read the full Integrated Report 2024, as well as case studies and market stories and the Sustainability KPI Protocol 2024.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Kuwait Times
28-05-2025
- Kuwait Times
PMI's report details progress towards its smoke-free vision
DUBAI: Philip Morris International Inc recently published its sixth annual Integrated Report, marking the company's 10th year of business transformation and sustainability disclosures. The document details PMI's continued progress in delivering long-term value to shareholders and other stakeholders while advancing its purpose of having its smoke-free alternatives make cigarettes obsolete as soon as possible. 'Our 2024 Integrated Report celebrates a milestone year that marked the 10th anniversary of the commercialization of IQOS, VEEV and ZYN and our journey toward achieving one of the most ambitious business transformations in modern history,' said Jacek Olczak, Chief Executive Officer of PMI. 'By the end of 2024, our efforts to expand access to smoke-free products allowed us to reach 95 markets with an estimated 38.6 million adult users, demonstrating our deep commitment to sustainability and business transformation. These achievements fill me with profound optimism as we continue to create long-term value while addressing our product and operational impacts, not only sustaining but accelerating our momentum, accomplishing a number of goals that only a few years ago seemed too ambitious.' The Integrated Report describes the company's strategy, business model, and both product-related ('what' the Company produces) and operational-related ('how' the Company operates) performance. The report explains the Company's performance and approach to sustainability in the context of a comprehensive five-pillar framework that includes compliance and risk mitigation as well as operational efficiency, innovation, and purposeful impact. It emphasizes how regulatory compliance serves as the foundation while risk management ensures business resilience. It highlights how this approach streamlines processes for enhanced productivity and profitability, aligns sustainability with long-term business goals to drive innovation and competitive value, and ultimately aims to lead a significant industry transformation by influencing standards, shaping policy, and driving systemic change that redefines market expectations. 'The path to transformation is rarely linear, and our experience in 2024 reinforces a crucial truth: Achieving a smoke-free future requires collective effort beyond our direct control. Our smoke-free business accounted for approximately 39 percent of PMI's total net revenues for the full year 2024, with an acceleration in top- and bottom-line growth. Competing in the cigarette market while simultaneously working to transform it is not a contradiction but a necessary phase in our journey,' said Emmanuel Babeau, Chief Financial Officer of PMI. 'Our integrated approach—linking financial success with positive impact—positions us well to continue investing in the future. We remain confident that our financial strength, combined with our sustainability leadership, is the right path forward.' Product and Operational Impact: Performance Highlights * Six markets where more than 75% of net revenues are generated from smoke-free. * Over $14 billion cumulative investment behind smoke-free products since 2008 (2023: $12.5) * 99% of total shipment volume covered by youth access prevention programs in indirect retail channels (2023: 98%) * 99% of contracted farmers supplying tobacco to PMI who make a living income (2023: 96%) * 10 human rights impact assessments completed since 2018 in highest-risk countries (2023: 8) * 61% of PMI manufacturing facilities certified as carbon neutral (2023: 43%) * First pre-certified environmental product declarations (EPD) published on IQOS ILUMA i series of devices 'We understand the importance of setting ambitious yet realistic targets that drive our business success. Our Sustainability Index has proven instrumental in ensuring our ambitions are balanced and our metrics are objective, while our enhanced nonfinancial data governance helps us report with precision and consistency,' said Jennifer Motles, Chief Sustainability Officer of PMI. 'Our commitment to sustainability is inseparable from future-proofing our business, creating tangible impacts within our control and sphere of influence, and contributing to a transformation that extends beyond our company.' The Integrated Report 2024 has been prepared with reference to the Global Reporting Initiative (GRI) Universal Standards (2021) and relevant topic-specific standards. The report takes into account guidance from the International Sustainability Standards Board (ISSB) of the IFRS Foundation, including using its SASB Standards, Integrated Thinking Principles, and Integrated Reporting Framework. PMI's SASB Index and GRI Index, which also maps the principles and standards of the UN Global Compact (UNGC), is available on The report is accompanied by the PMI Sustainability KPI Protocol 2024, which provides a transparent explanation of how we define and measure progress for each Sustainability Index KPI. Please visit to learn more and read the full Integrated Report 2024, as well as case studies and market stories and the Sustainability KPI Protocol 2024.
Kuwait Times
12-05-2025
- Kuwait Times
Fed holds rates steady and adopts ‘wait-and-see' stance on trade war
US-UK trade deal eases auto/agricultural tariffs, signaling cautious de-escalation KUWAIT: The US services sector expanded in April with the ISM PMI coming in at 51.6, lifted by new orders and inventories, though employment contracted, and tariff-driven price pressures hit a 27-month high. The Federal Reserve held rates steady at 4.25 percent-4.50 percent, citing trade uncertainty as aggressive tariffs risk stagflationary pressures, while unemployment claims dipped to 228,000. A preliminary US and UK trade deal eased auto/agricultural tariffs, signaling cautious de-escalation, though existing China tariffs remain. The Bank of England cut rates to 4.25 percent to counter slow growth, while China's services sector came in at 50.7 amid weak exports and rising costs. Japan's services PMI rose to 52.4 on stronger demand, but input costs surged and optimism declined. Globally, central banks tread carefully as trade tensions inflame inflation risks while suppressing growth, leaving markets balancing fragile optimism against looming stagflation threats. The ISM Services PMI in the US rose to 51.6 in April 2025, up from 50.8 in March and beating expectations of 50.2, signaling a stronger expansion in the services sector. Growth was driven by faster increases in new orders and inventories, while business activity remained positive despite a slight slowdown. Employment continued to shrink, though at a slower rate, and supplier delivery times lengthened. Price pressures surged to their highest level since February 2023. Concerns over tariff-related price impacts and federal budget cuts persist, but overall conditions are improving, according to ISM's Steve Miller. Federal funds rate In its latest policy meeting last Wednesday, the Federal Reserve opted to keep interest rates unchanged at 4.25 percent to 4.50 percent, emphasizing a cautious 'wait-and-see' approach as trade tensions cloud the economic outlook. Chair Jerome Powell highlighted that while the economy and labor market remain broadly solid, the Fed will refrain from adjusting rates until it gathers more clarity on the evolving impact of recent tariff policies. The decision comes amid a surge in imports aimed at beating new tariffs, a trend that may have distorted Q1 GDP figures. Powell pointed to the Trump administration's aggressive trade measures as a major source of economic uncertainty, warning that rising tariffs risks pushing inflation higher while simultaneously slowing growth, an unfavorable scenario that could leave the Fed's dual mandate out of reach. Meanwhile, President Donald Trump hinted that there will be a deal with a 'big' country announced on Thursday, adding that he would not lower tariffs on China as a condition to begin negotiations. Markets reacted positively on Wednesday with the Dow Jones, S&P 500, and Nasdaq indices ending the trading day with positive gains. Unemployment claims US jobless claims decreased by 13,000 to a seasonally adjusted 228,000 for the week ending May 3rd, following a prior week surge partly due to a 15,089 jump in unadjusted claims in New York. This previous increase was linked to layoffs across transportation, warehousing, hospitality, public administration, and education sectors. President Trump's tariffs include a significant hike to 145 percent on some Chinese imports. Federal Reserve Chair Jerome Powell noted that these 'significantly larger than anticipated' tariff increases could lead to a rise in inflation, a slowdown in economic growth, and an increase in unemployment, with the current Fed benchmark interest rate remaining in the 4.25 percent-4.50 percent range. Trump speaks President Trump announced a trade agreement framework with the UK, seen as a potential model for easing US tariffs. While details are still being finalized, the deal includes reduced tariffs on UK cars and agricultural products, and a joint tariff on steel and aluminum, with pharmaceutical exemptions. However, it's more of a 'letter' of understanding than a comprehensive deal, and existing universal tariffs remain. The announcement, which surprised some UK officials, was met with positive market reactions, though analysts note the limited scope and potential for only small economic gains for the UK. Trump emphasized that this is the first of many upcoming trade deals. Simultaneously, the US is engaging with China, with upcoming meetings aimed at de-escalating trade tensions, despite Trump's refusal to lower existing tariffs beforehand. These developments are viewed as potential signs of de-escalation in Trump's broader trade policies, which have drawn criticism from economists and global institutions concerned about their negative impact on the global economy and potential for a US recession. The greenback was last seen trading at 100.339. UK official bank rate Amidst a sluggish economy and concerns over President Trump's trade policies, the Bank of England (BoE) lowered its main interest rate from 4.5 percent to 4.25 percent on Thursday. This decision, anticipated due to easing inflation (down to 2.6 percent in March), aims to ease financial pressures for borrowers, businesses, and consumers. While five of the nine policymakers supported the 0.25 percent cut, some favored a larger reduction, and others preferred no change. The BoE highlighted the increasing uncertainty in global trade due to tariffs, noting a weakened outlook for global growth, though expecting a smaller impact on the UK. This rate cut is expected to stimulate investment, spending, and housing activity, benefiting those with loans but potentially disadvantaged savers. The GBP/USD currency pair was last seen trading at 1.3304 China services PMI China's Caixin Services PMI fell to 50.7 in April 2025 from 51.9 in March, missing expectations and marking the weakest growth since September. New orders rose at the slowest pace in over two years, hindered by US tariffs affecting goods trade. Export growth was minimal, while employment fell for the second month amid rising cost pressures. Input costs rose sharply due to higher wages and materials, but output prices declined for the third straight month as firms tried to stay competitive. Business confidence dropped to its second-lowest level since records began in 2005, reflecting concerns over trade policy shifts. The USD/CNY currency pair was last seen trading at 7.2364 Japan services PMI The au Jibun Bank Japan Services PMI for April 2025 was revised up to 52.4 from 52.2, indicating continued expansion for the sixth straight month and improving from March's neutral 50.0. New orders rose at the fastest rate in nearly a year, supported by ongoing, though slower, overseas demand. Hiring accelerated to its quickest pace since January, while backlogs increased modestly. Input costs surged at the fastest rate since February 2023, and output prices rose as firms passed on some costs. Despite this growth, business optimism dropped to its lowest since January 2021 due to concerns over global trade, labor shortages, and inflation. The USD/JPY currency pair was last seen trading at 145.34 Kuwait Kuwaiti dinar USD/KWD closed last week at 0.30645
Kuwait Times
08-05-2025
- Kuwait Times
Kuwait economy to grow at 3.3% in 2026 despite global challenges
KUWAIT: The outlook for Kuwait economy in 2025-2026 remains broadly positive, with GDP projected to expand by 3.3 percent by 2026, following several years of below-trend growth that reflected both lower oil production due to OPEC+ cuts and the fading of the post-pandemic consumer spending bounce. Pressures from deteriorating international trade relations and weakening global growth could be transmitted, we think, via potentially lower oil prices, rising uncertainty and reduced prospects for interest rate cuts by the US Fed. Still, even though the downside risks to the outlook have risen due to external factors, they are not yet assumed to have a large impact on non-oil activity due to a) oil prices holding up at $70/bbl in our existing base case, b) an already conservative growth forecast and c) a view that domestic trends will be increasingly shaped by government reform and investment initiatives where execution rates should rise. We expect output gains in the oil sector of 2.4 percent per year in 2025-26 on average, in-line with the expansion in Kuwait's crude output (+135 kb/d to 2.54 mb/d by 2026) following the beginning of the unwinding of OPEC+ voluntary supply cuts in April 2025. Non-oil growth is seen averaging 2.8 percent per year, as consumer spending growth stabilizes after recent declines while corporate and projects activity start to move higher. Indeed, high frequency indicators suggest that this dynamic may already be underway, with the PMI notching its best ever reading in Q4 2024, bank lending to corporate expanding at its fastest pace in more than two years (4.9 percent y/y) in February and project awards in 2024 reaching a 7-year-high of KD 2.8 billion. The pipeline of Vision 2035 strategic projects in the energy, water, housing and transportation sectors remains very strong and faster-than-expected execution is a key upside risk to the economic outlook. Progress on reform agenda Delivery of the government's legislative and reform agenda is gradually progressing, with various important measures implemented over the last six months. These include the uncapping of government service fees, the 15 percent top-up tax on multinationals, moves to boost public sector efficiency, streamline regulation for SMEs and approval of the long-delayed public debt law. A housing finance law to address the housing shortage is close to being finalized. A new economic framework is expected to flesh out further development measures including enhancing the role of the private sector, attracting FDI and raising labor force productivity. Critical to achieving Vision 2035 diversification and infrastructure goals will be reversing Kuwait's historically low investment rate, which has lagged GCC peers, and reconfiguring the economy to rely less on consumption as well as the oil sector. Inflation has trended lower (2.4 percent in March) since peaking in 2022 at 4.0 percent, helped by moderating price rises in the food and clothing categories especially. We project it to settle at around 2.5 percent on average in 2025-26. The domestic policy interest rate stands at 4.0 percent and our working assumption is for the Central Bank of Kuwait to lower rates more gradually over the course of the cycle than the Fed, given the less aggressive hikes seen in 2022-23 as US policy was tightened. Fiscal deficits projected Further fiscal deficits are expected over the forecast period (averaging KD3.5 billion, 7.1 percent of GDP) amid lower-ranging oil prices ($70/bbl), and consolidation will remain a multi-year theme. Expenditures in the FY25/26 budget were held at previous-year levels (with wages up a well-below trend 2 percent), and we factor-in growth of only 1 percent on average over 2025-26 with pressure especially on discretionary spending items and subsidies. We expect a rebalancing of spending to allow for higher capital outlays. On the revenue side, measures such as the tax on multinationals, higher fees for government services and penalties and fines could yield around 0.8 percent of GDP per year, with potential excise duties in 2026 (0.4 percent of GDP) and VAT (up to 2 percent of GDP) later on. The IMF have recommended fiscal consolidation at a pace of 1-2 percent of GDP per year. The new debt law passed in March 2025 provides crucial flexibility on deficit financing going forward and alleviates pressure on the government's liquid reserves. We expect both local and foreign currency debt issuance over the next two years. Even so, debt levels will remain very low by international standards: if the projected deficits in 2025-26 were 50 percent debt-financed, government debt would only rise to 10 percent of GDP from 3 percent now. Oil, global trade, local reforms Lower oil prices, regional geopolitical insecurity and deteriorating global trade relations are major downside risks. On the upside, the rollout of a new government work agenda with high conviction would upgrade the growth and investment outlook. The forthcoming housing law especially could result in much stronger residential investment over time. Separately, successful fiscal consolidation steps could contribute to a sovereign ratings upgrade.
