PMI Leaf curing fuel monitoring framework
Monitoring, Verification, and Reporting (MVR) Framework for Sustainable Curing Fuels

BackgroundOur business activities rely on healthy ecosystems. The raw materials used in our products rely on fertile soil, stableclimate conditions, and access to water. As a business with an agricultural supply chain, it is paramount that we takeneeded steps to protect and preserve the ecosystems where we operate.
Promoting the efficient use of natural resources and taking steps to protect and preserve them help manage risks andprepare us for the future by granting us license to operate and compliance with upcoming regulation.
Tracking and reporting on our progress is a critical component of success – which is why we are so focused onenhancing traceability across our supply chain.
Which is why, as part of our Forest Positive program, we seek to use sustainable and traceable curing fuels in our flue
cured tobacco supply chain. PMI engages with key stakeholders in the tobacco supply chain with a strong focus on
fuelwood traceability and the implementation of sustainable management practices to protect forests fromdeforestation risk.
Our Monitoring Framework for Sustainable Leaf Curing Fuel was launched in 2016 and since then it has been our main
initiative to address deforestation risks in the tobacco supply chain. As part of this, we leverage our Zero Deforestation
Manifesto (ZDM) and related sustainability programs to drive decisions at all levels to establish sustainability practices
in our value chain.
Monitoring Principles for Sustainable Leaf Curing Fuel:
The monitoring principles for sustainable curing fuel are the basis for a harmonized and verifiable monitoring
framework that PMI applies to all of its flue cured tobacco suppliers. The framework consists of four principles, eachof which contains criteria, indicators, guidance on the indicators and underlying requirements to fulfill the principles:1.

Know Your Fuel:To quantify fuel usage and source of all fuels used for tobacco curing.

2.

Be Sustainable:

3.

Be transparent and replicable:

4.

Include Stakeholders:

Ensure that all origins switch to use fuels of a demonstrated sustainable source suchas biomass from waste agricultural residues or wood fuel from sources which areproven to be sustainably managed (in accordance with the PMI defined criteria ofsustainable forest management). No coal should be used as a fuel to cure tobacco.
Have a clear and accessible process and communication that facilitate coordination
between PMI and tobacco suppliers to facilitate accomplishment of PMI’s objectives.
Transparency of internal processes to enable auditing requirements and replicability
to ensure that data collection and reporting is consistent locally and globally.
To include various Stakeholders involved in the flue cured tobacco curing process, tounderstand their specific characteristics and local context differences. This will allow
to adjust monitoring activities according to the local situation to ensure proper
implementation of activities and data collection.

Requirements and Indicators per Principle:
Principle

Requirement

Indicators

Monitoring, Verification, and Reporting (MVR) Framework for Sustainable Curing Fuels /21.09.2023

Supporting Documentations

PMI Leaf curing fuel monitoring framework
1.

Know Your Fuel••

Measure Consumption
Monitor fuel sources

1.1. Total amount of purchased
cured tobacco (Kg)
1.2. Total fuel for curing tobaccopurchased by fuel source (kg orm3)
1.3. Number of curing barns used
per barn type•••Tobacco survey
Barn survey
Fuel- usage survey/Farmersurvey

2.

Be Sustainable•

Report sustainability of woodfuels
Report sustainability ofagrofuels
Forest risk mitigation plan forPrimary and Protected Forest•••••

Clear reporting
Knowledge sharing
Standardize processes
Quality assurance
Documentation

2.1. Amount of purchased tobacco
cured with sustainable andunsustainable source of fuels
supported by documentation
2.2. Number of initiatives to reachself- sufficiency and quantity offirewood that is self-sufficient2.3. Curing fuel is fully traceable tothe source supported bydocumentation
2.4. Forest risk maps developed forcountries using firewood
2.5. Forest risk mitigation plan
design and implemented by risk
categories
3.1 SOP developed for data reported
in the monitoring framework

•••
•
•

Indicate percentage of verified
sustainable fuel types
Zero gross deforestation
Zero net deforestation
No coal usage
Proof of self sufficiency•Understand Stakeholders andlocal context
Engage Stakeholders in theprocess
Stakeholders’ capacity building.
Improve awarenessCommunicating

3.

4.

Be transparent andreplicable

Include Stakeholders••••

4.1 Stakeholder engagement plan
implemented.
4.2 Capacity building activities
provided to Stakeholders.
4.3 Communication
strategy
implemented.

••

•
•
•

Standard Operating Procedure
Quality checkprocess
Provision of documentation••••

Understand local context
Stakeholder engagement plan
Capacity building activities
Communication strategy

Supply Chain Types:
Different types of supply chains have different requirements in the Monitoring Framework. Reporting processes anddocumentation in the Monitoring Framework may vary according to the type of supply chain. PMI works withsuppliers and directly with farmers in its vertically integrated operations for specific markets. The approach of theMVR changes based on the stakeholders to be engaged for on the ground compliance to be implemented.

Assurance Process:Since 2016 PMI annually deploys its Monitoring Framework for Sustainable Curing Fuels across the entire tobaccoflue-cured supply chain and covered by an external verification assurance process since 2018. The MVR requires
wood fuel traceability to ensure it originates from sustainable sources and it fully embeds the requirements andambitions of our ZDM which are communicated to our tobacco suppliers through a set of tailored implementation
guidelines. Through the application of the Monitoring Framework for Sustainable Curing Fuel, we systematicallymonitor the sustainability of all fuel types used in our tobacco supply chain, including a requirement to maintain afull chain of custody for the wood-based fuels used in the curing process. Data gathered is verified by a third party
annually, and onsite audits are carried out according to a three-year cycle to cover all our tobacco suppliers.
It is our aim that this Framework help to inspire the practices needed to halt deforestation and reduce emissions toaddress the climate challenge.

Monitoring, Verification, and Reporting (MVR) Framework for Sustainable Curing Fuels /21.09.2023