This is encapsulated in PMI’s sustainability strategy, given that the health impact of cigarette smoking is the most significant negative externality that it aims to address. By phasing out cigarettes and replacing these with smoke-free products, the company aims to play its part and contribute to societal well-being.

“At Philip Morris, we have been working for many years to make our business more sustainable, often focused on specific challenges across our supply chain, such as in tobacco growing and tackling the illicit trade of tobacco products,” says Philip Morris Malaysia managing director Naeem Shahab Khan.

“Today, we are taking a more holistic, comprehensive approach to sustainability because it lays the foundations for our vision of creating a smoke-free future. We know we cannot succeed in the long term without making our business more sustainable, and sustainability cannot be achieved without transformation.” Philip Morris Malaysia (PMM) is also guided by the sustainability vision set out by PMI, especially in addressing its product and operational impacts.

To address the health impact of cigarette smoking, PMM provides non-combustible products that do not burn tobacco, thus producing no smoke or ash. This results in dramatically lower levels of harmful chemicals.

“While nicotine is addictive and not risk free, it is not the primary cause of smoking-related disease. Rather, it is the harmful chemicals found in cigarette smoke and mostly generated by the burning of tobacco,” says Naeem.

“Hence, education and awareness are essential to raising the understanding of how harmful a burning cigarette is and the alternative options available to adult smokers that are better than continuing smoking.”

The key milestone in this journey was a portfolio of scientifically substantiated smoke-free products that deliver nicotine without burning tobacco, driven by its continuous innovation process. For example, PMM’s IQOS “heats the tobacco just enough to release nicotine-containing vapour without burning. When there is no combustion, no smoke is created. Therefore, it generates significantly lower levels of toxic substances compared to cigarettes,” says Naeem.

According to PMI’s financial results report for the third quarter of 2024, the offtake share of heated tobacco products (HTP) in Kuala Lumpur grew to 12.7% during the quarter, representing a 2.3 percentage point increase from the previous year. Globally, the smoke-free business now accounts for 38% of PMI’s total net revenues and 40% of gross profit.

As at June 30, 2024, PMI estimated, there were 36.5 million adult users of its smoke-free products, reflecting an additional 3.2 million in the first half of the year in comparison to full-year 2023.

PMM emphasises that youth should not smoke or use any products containing nicotine, including electronic products like IQOS. It ensures health warnings are included in consumer packaging and runs a Youth Access Prevention programme in Malaysia.

Cigarette butt litter is a common sight in Malaysia. It is not just an eyesore but is a form of pollution and environmental hazard. PMM acknowledges this problem and has engaged in awareness-raising campaigns to encourage behaviour change. It is also investing in research and development to replace filters with plastic-free alternatives.

The company has end-of-life take-back programmes for consumers to return the smoke-free consumables. For smoke-free electronic devices, PMI has integrated eco-design principles to improve product recyclability and reparability.

“At Philip Morris Malaysia, we believe we can and should play a role in reducing waste from our products and address the issue of littering by helping to develop and scale up innovative solutions. We believe we can drive behavioural change and encourage the correct disposal of cigarette butts, with the ultimate goal of reducing littering,” says Naeem.

In Malaysia, PMM initiated a programme in 2021 to tackle cigarette butt littering by installing over 200 canisters at littering hotspots nationwide. As of August 2024, over 453kg of cigarette butts were collected, that’s an equivalent to 2,265,000 butts, and PMM continues to explore circular programmes for recycling and upcycling. Last year, PMM launched a programme to allow consumers to dispose of their smoke-free devices at its brand retail outlets. Although the programme is still in its early stages, the company has collected more than 27,000 devices.

These are just part of the sustainability initiatives that PMM is focusing on to chart its path forward. For instance, it is also working with suppliers and vendors to be aligned with its zero-deforestation manifesto and responsible sourcing practices, and is continuously exploring opportunities to collaborate with others on its sustainability initiatives.

“We want to remain focused on shaping a smoke-free future for Malaysia. The benefits it can bring to people who would otherwise continue to smoke, and hence to global public health, are significant,” says Naeem.

PMM is also focused on improving its operational impacts through the tagline “We are gamechangers”. It has organised various activities to engage employees in learning and volunteering, such as in tree planting programmes. “However, this ambition will be achieved more rapidly if all stakeholders play their role. Governments and civil society can maximise the opportunity offered by innovation and science by encouraging smokers to switch to smoke-free alternatives.”

https://www.theedgemarkets.com/content/advertise/progressing-together-towards-a-smoke-free-malaysia