PMI: Single Sustainable Development Report for 2023 – Greece is a model country in ESG

A milestone year for Papastratos was 2023 towards achieving the goal of a cigarette-free future. The total number of IQOS users exceeded 500 thousand, with non-burning products accounting for more than 70% of the company’s net revenue.

With a market share of over 20% nationwide (Source Nielsen), IQOS is the first Greek export product in Japan. It is noted that the Papastratos factory in Aspropyrgos exports 90% of the heated tobacco rods to 20 countries around the world.

The above data were recently presented at an information event held by Philip Morris International in Paris on the occasion of the presentation of the Single Sustainable Development Report for 2023 by Tommaso Di Giovanni, PMI Vice-President International Communications and Miguel Coleta, PMI Global Director Sustainability.

At the same time, approximately 33 million are the estimated users of alternative products of Philip Morris International (PMI), parent of Papastratos including 28.6 million IQOS users (2022: 24.9 million IQOS users) while 36.4% of the net the company’s revenue comes from alternative products (2022: 32.1%).

PMI’s alternative products are available for sale in 84 markets, of which 47% are in low and middle income markets (2022: 73, 42%) while in 25 markets alternative products represent more than 50% of annual net revenues (2022: 17).

Total investment in alternative products since 2008 amounts to $12.5 billion (2022: $10.7 billion) while 98% of total sales volume is covered by programs to prevent youth access to tobacco products, in indirect retail sales channels (2022: 91%).

According to the same sustainability report, 94% of tobacco is purchased without the risk of net deforestation of managed natural forests and without conversion of natural ecosystems (2022: 55%) while 8.14 million cubic meters of water were optimized in tobacco growing areas (cumulative from 2019) (2022: 4.94 million cubic meters)

Continuous investments by Papastratos in the factory in Aspropyrgos

Greece is a country where sustainability is put into practice, a model for Philip Morris International in all ESG pillars. Miguel Coleta, PMI’s General Manager of Sustainability referred specifically to the good practices of Papastratos in terms of the proper management of water resources with the international AWS certification, the extensive reforestation program with the planting and care of 70,000 trees as well as the continuous investments in factory in Aspropyrgos with the aim of reducing carbon dioxide emissions, making a special mention of the largest green investment of 10 million euros that is being implemented, in the context of PMI’s Zero Carbon Tech program.

The investment foresees the installation of new technologies to reduce energy consumption (photovoltaic systems on the roof of the factory, installation of heat pumps, as well as an industrial-type electric boiler) and is expected to be completed in 2025. The aim is to reduce carbon dioxide emissions by up to 30 % by 2025.

For the study of this particular investment, Papastratos collaborates with the National Technical University of Athens. This investment is part of PMI’s Zero Carbon Tech program, the total value of which reaches 120 million dollars (for corresponding implementations in the factories of its network).

At the same time, as part of the broader sustainable development strategy, Papastratos is implementing a large corporate reforestation program, under the supervision of the Reforestation Division. Reforestation is implemented in Agios Stefanos and Penteli. The number of trees to be planted is 70,000, while 50% have already been planted in the area of ​​Agios Stefanos. For the implementation of the projects, the company has financed all the relevant studies which have been drawn up by distinguished scientists with extensive experience in the field. Reforestation takes place exclusively in fragmented areas where natural regeneration is not possible. Thus, the company has identified and implemented the projects in areas where human intervention is required.

The total duration of each regeneration project is three years. The trees can then survive without further human intervention.

It is noted that in 2022, Papastratos proceeded to cover 100% of the electricity consumed by Guarantees of Origin from RES and reused 80% of the air from the air conditioning units, saving electricity and thermal energy.

No waste produced at the factory ended up in a landfill, while the company achieved a reduction in its environmental burden with 270,000 fewer single-use plastics through the Zero Plastic & Recycling Project initiative. It also received the re-certification of the “Alliance for Water Stewardship” standard for the proper management of water resources.