PMI ZERO DEFORESTATION MANIFESTO AND COMMITMENTSBACKGROUNDFor PMI, sustainability means creating long-term value while minimizing the negative externalities associated with our
products, operations, and value chain. From the hundreds of thousands of tobacco farmers from which we source tobacco
to the millions of consumers of our products, we have an important impact on society and the environment—Impact that
we are committed to addressing.
Our environmental strategy, as outlined in our Environmental Commitment and described in our annual Integrated Report aims
to engage with employees, suppliers,1 customers, communities, and other stakeholders to minimize negative environmental
impacts on climate, water, biodiversity, and forests.
Forests provide key ecosystem services among which are watershed protection, habitats for biodiversity, livelihoods forcommunities, and climate regulation. Forests store carbon, and their conversion to other land uses releases greenhousegas emissions. The United Nations estimates that forests are home to 80 percent of the world’s terrestrial biodiversity, andthey provide a livelihood for approximately 70 million indigenous people.2
International, multi-stakeholder initiatives are in place to combat deforestation,3 yet forest coverage continues to decreaseat an alarming pace: The area of primary forest worldwide has decreased by over 80 million hectares since 1990, and therate of deforestation was estimated between 2015 and 2020 at still 10 million hectares per year.4
Deforestation and the progressive degradation of forest are global issues largely driven by palm oil, industrial wood fiber,
beef and soy productions. As highlighted in our CDP Forests submissions, wood fiber is the commodity of relevance for PMI.
We have set ambitious environmental targets, and we acknowledge that we cannot achieve them alone. The engagement
beyond our own operations is key, as the supply chain is where the most significant sustainability impacts occur, especiallywhen it comes to deforestation, forest degradation, and loss of ecosystem services. Combating forest loss is a significant
part of our environmental management efforts devoted to halting deforestation and to playing an active role in protecting
the forest capital in our entire value chain.
We evaluated the environmental impact of our manufacturing facilities to set priorities and define actions to minimize it.
As of today, our analysis shows that deforestation and forest degradation are not salient risks linked to our facilities. Our
periodic risk assessment highlighted, however, two raw material supply chains that present a risk of deforestation: (i) tobacco
leaf, and (ii) paper and pulp-based products. Given the differences between these supply chains and the need to develop
tailor-made responses, we have defined within the Zero Deforestation Manifesto specific commitments for tobacco leaf
and paper and pulp-based products.
In our value chain, from tobacco growing to manufacturing and distribution of cigarettes and smoke-free products, we consider
the risk related to deforestation to be represented by the use of wood fiber materials. In tobacco cultivation, deforestation
risks are indirect and relate to wood fuel provision, land use change, and use of timber for barn construction. We believethat land use and construction materials-related risks are however very limited for the following two main reasons: i) thevolumes of tobacco we need are decreasing as we increase our share of smoke-free products in our product portfolio (theproduction of smoke-free products needs less tobacco and, based on evidence, makes the conversion of natural ecosystem
to tobacco farms unlikely); and ii) the mitigation activities we have implemented within our sustainability initiatives haveresulted in a minimal exposure to deforestation risks related to barn construction materials.
These relevant wood fiber materials are mainly:•

Wood fuel5 for curing tobacco leaf; and•Paper and pulp-based materials:-

Board and paper for primary packaging6;-

Board and paper for secondary6 packaging;-Marketing materials;-

Fine paper for cigarettes and heated tobacco units; and-Cellulose acetate tow for filters.

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PMI ZERO DEFORESTATION MANIFESTO AND COMMITMENTSOUR COMMITMENTS
We are committed to sourcing wood-based materials from traceable, sustainable, and legal sources, while protecting therights and livelihoods of local communities. Specifically, we are committed to:• Zero gross3 deforestation of primary7 and protected8 forest associated with the tobacco supply chain by 2020;• Zero net9 deforestation of managed natural forest8 and no conversion of natural ecosystems10 in the tobacco supply
chain by 2025;• Net positive impact on forests associated with the tobacco supply chain by 2025;• Zero gross deforestation of primary and protected forest associated with the supply chain of paper and pulp-basedmaterials by 2025; and• Zero net deforestation of managed natural forest and no conversion of natural ecosystems in the paper and pulpbased products supply chain by 2030.

This Zero Deforestation Manifesto complements and details the deforestation-related aspects
described in our environmental commitment. Our work to combat deforestation leverages
our company’s governance and management structures for sustainability, which are detailed
in our annual Integrated Report.
As Chief Executive Officer, I am asking everyone at PMI and all our business partners to uphold
this Zero Deforestation Manifesto. —André Calantzopoulos, CEO, Philip Morris International

OUR APPROACH
To achieve these commitments, we follow a three-step approach:• Annual risk assessment of the status of forest cover and deforestation risk assessment for tobacco and paper andpulp-based materials supply chains where we operate with our suppliers. This aims to define priorities and target
areas for action. We will update and adjust our management of forest-related risks based on the results of the risk
assessment on a regular basis.
• Supplier and farmer engagement: We design and deploy activities with suppliers and farmers of tobacco and paper
and pulp-based products to traceable and sustainable raw material sourcing.
• Third-party verification: To deliver on these commitments, we will either source materials that are certified to aninternationally recognized standard, or we will use third-party verification systems that specifically address tobaccoand paper and pulp-based products.
Monitoring and verification mechanisms are referred to in the specific tobacco and paper and pulp commitments further
in this document. Human rights and especially the rights of local communities that are linked to forest for their livelihoods
are a centerpiece of our strategy. For this reason, we aim to a free, prior, and informed consent (FPIC)11 when engaging
directly or through our commercial partners with indigenous people and local communities linked to forests playing a rolein our supply chain.
We will publish progress against our zero deforestation commitments and related targets in our annual Integrated Reportand other channels. PMI commits to completing the CDP Forest program submission on a yearly basis.

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PMI ZERO DEFORESTATION MANIFESTO AND COMMITMENTS
ZERO DEFORESTATION COMMITMENT: TOBACCO SUPPLY CHAIN
Each year, PMI purchases tobacco from farmers contracted by PMI and our third-party leaf suppliers in various countries
around the world.
Our ambition is to maintain a sustainable tobacco supply chain based on three key activities:
1. Fair treatment and safe working and living conditions for the farmers and farm workers that grow the tobacco crops
and the suppliers involved in crop production.
2. Responsible stewardship of the environment in the farms where the tobacco is grown and the associated naturalareas through specific actions guided by our environmental policies on climate, water, and biodiversity.
3. Continuous improvement of the crop quality and farm productivity to ensure farm profitability; sustainable intensificationof tobacco productivity to reduce land requirements, releasing pressure on natural ecosystems—all conforming to
PMI quality requirements and the law.
We recognize that the production of tobacco we purchase poses potential risk to forests, mainly:• Wood fuel from forests that are harvested to provide a source of energy for curing of a tobacco type known as flue
cured Virginia;• Construction where forests are harvested to provide wood as construction material for curing barns for the tobacco
type Burley; and• Land use change from tobacco farming where forests are cleared to open space for growing tobacco.

OUR COMMITMENTS
developed principles, guidelines, and tools for the sustainable
management of fuel sources including sustainable forest• Zero gross deforestation of primary and protected forest management practices, awareness of risk associated withassociated with the tobacco supply chain by 2020;
forest losses, and use of alternative renewable biomass. We• Zero net deforestation of managed natural forest and have reached at the end of 2020 the target of no harvesting
no conversion of natural ecosystems in the tobacco of primary and protected forests, and we aim to maintain andverify this result on an annual basis. We are on target to meet
supply chain by 2025; andthe following by 2025:• Net positive impact on forests associated with the• Wood fuel self-sufficiency (this includes renewability
tobacco supply chain by 2025.
attributes of the source and forest degradation avoidance);
PMI’s long-term approach has been based on our Good Agriculture
andPractices Program (GAP) program, in place since 2002.The• Wood fuel traceability to the source of harvest.
GAP program defines the principles and standards we expect
to be met by all those who grow and supply tobacco to PMI. To achieve our targets, we have developed a monitoring
Additionally, in 2017 we developed our Responsible Sourcing framework for sustainable curing fuels (called the “Monitoring
Principles (RSP), laying out the approach and performance Framework”) that we apply to all relevant suppliers. The
requirements PMI expects all its suppliers to adopt in the areas Monitoring Framework is structured around four principles:of human rights, environmental management, and business
1. Know your fuel source—by recording and verifying the
integrity. Through GAP and RSP application and monitoring,fuels used to cure our tobacco and their sources;
we aim to achieve tangible and measurable improvements inour supply chain to prevent deforestation and biodiversity loss.
2. Be sustainable—by demonstrating the sustainability of
In our tobacco supply chain, we are committed to:

Our progress has involved engaging with suppliers andfarmers setting clear goals, working with them to implement
dedicated programs and tackling the three main areas of risk
to ultimately achieve a net positive impact. We measure ourprogress through specific monitoring arrangements.
To address the risk from using wood fuel for curing, we havethe source of all fuels to cure tobacco;
3. Be transparent and replicable—by implementing robust
processes to fulfill auditing and reporting requirements;
and
4. Engage stakeholders—by training and raising awarenesson monitoring activities.

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PMI ZERO DEFORESTATION MANIFESTO AND COMMITMENTS
The practical delivery of these principles is governed byoperating criteria, indicators, and underlying requirements.
The Monitoring Framework is currently being implemented
by all suppliers of flue cured Virginia tobacco. A third-party
audit assesses conformity with the Monitoring Framework toascertain sustainability and traceability of 100 percent of thefuel used to cure tobacco by contracted farmers.
• To address the risk of deforestation from using wood forbarn construction, we have focused on the two countries
with the most significant risks to forest: Malawi andMozambique. We will continue to work with suppliers
to improve the lifespan of curing barns and to enforce
the use of sustainable timber materials.

• To go beyond zero deforestation and support a forest
positive future, we work on forest-land restoration andenhancement with our suppliers. By 2025, we aim to go
beyond sustainable wood fuel12 sourcing for tobacco
curing to enhance biodiversity and natural habitat byrestoring forestland in our supply chain.
• To address the risks resulting from land-use change, wemonitor the impact of land-use changes due to tobacco
cultivation and design mitigation actions when needed.
Mitigation actions aim to avoid, minimize, and restore
any negative impact from land-use change.

ZERO DEFORESTATION COMMITMENT:PAPER AND PULP-BASED MATERIALS SUPPLY CHAIN
PMI purchases paper and pulp-based materials that are used in the manufacture of our products. Our sourcing includes:• Board and paper for packaging;• Board and paper for secondary packaging;• Marketing materials;• Fine paper for cigarettes and heated tobacco units; and• Cellulose acetate tow for filters.
The production of paper and pulp-based products leads to deforestation when forests are cleared for plantation expansion
or when pulp and paper are sourced from unsustainable sources leading to disturbances that compromise the natural cycles
of a forest. Halting deforestation is a global challenge, and we have a role to play by ensuring the products we source comefrom sustainable sources. To do this, we will meaningfully engage with our suppliers and their suppliers and involve otherrelevant stakeholders to contribute to halt deforestation.

OUR COMMITMENTS
We are committed to:• Zero gross deforestation of primary and protected forest associated with PMI’s paper and pulp-based materials
supply chain by 2025; and• Zero net deforestation of managed natural forest in the paper and pulp-based products PMI’s supply chain and noconversion of natural ecosystems by 2030.
Our risk assessment shows that suppliers of different material categories present various degrees of maturity in relation to
managing country-based deforestation risks. PMI therefore has an opportunity to lead the shift toward a more environmentally
sustainable pulp-based material sector deploying our strategy based on the risks in the various geographies where we source
our materials.

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PMI ZERO DEFORESTATION MANIFESTO AND COMMITMENTS
Over the next few years we will:• Engage with our suppliers to communicate our expectations, gain their commitments on our Manifesto, increase ourunderstanding of their current practices and collaborate to set and achieve targets for the materials they supply;• Evaluate suppliers through self-assessment and a risk-based due diligence process that will allow us to identify risk
exposure and areas where our support is needed;• Conduct baseline studies to establish requirements for low-, medium-, and high-risk scenarios, including traceability
requirements for virgin fiber back to the source of harvest;• Develop action plans with relevant suppliers to track and measure progress in achieving the objectives;• Increase where appropriate the use of recycled materials and/or the share of third-party certified product suchas Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC) andequivalents or rely on third-party verification by reputable organizations; and• Include deforestation risk as a criterion for supplier selection and adjust our sourcing strategy if required.

END NOTES
1.

Supplier—When referring to the tobacco supply chain, “supplier” refers to PMI affiliates with tobacco leaf operations
or leaf entities contracted by PMI for the supply of tobacco. 
When referring to the pulp and paper supply chain, “supplier” refers to the entities contracted by PMI for the supply of
pulp and paper products.

2.

UN SDG. SDG 15 Life on Land. 2019. https://www.un.org/sustainabledevelopment/biodiversity/

3.

Deforestation—Loss of natural forest as a result of: i) conversion to agriculture or other non-forest land use; ii) conversion
to a tree plantation; or iii) severe and sustained degradation.
•

This definition pertains to no-deforestation supply chain commitments, which generally focus on preventing theconversion of natural forests.

•

Severe degradation (scenario iii in the definition) constitutes deforestation even if the land is not subsequently
used for a non-forest land use.

•

Loss of natural forest that meets this definition is considered to be deforestation regardless of whether or not it
is legal.

Accountability Framework, Definitions | Accountability Framework 2020 (accountability-framework.org)
4.

FAO and UNEP. 2020. The State of the World’s Forests 2020. Forests, biodiversity and people. Rome.
https://doi.org/10.4060/ca8642en

5.

Wood fuel—All types of biofuels derived directly and indirectly from trees and shrubs grown on forest and non-forest
lands, from silvicultural activities, harvesting and logging, as well as industrial byproducts.
FAO, Biomass Energy in the Asia-Pacific Region: Current Status, Trends and Future Setting, 2009. (This document is based on
FAO. UBET. Unified Bioenergy Terminology. 2004).

6.

Primary packaging - A primary packaging component means a packaging component that is or may be in direct contact
with the final product.

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PMI ZERO DEFORESTATION MANIFESTO AND COMMITMENTS
Secondary packaging - A secondary packaging component means a packaging component that is not and will not be indirect contact with the final product, i.e. up to shipping cases and case labels.
PMI internal definition
7.

Natural forest—Natural forests possess many or most of the characteristics of a forest native to the given site, including
species composition, structure, and ecological function. Natural forests include:a)Primary forests that have not been subject to major human impacts in recent history.

b) Regenerated (second-growth) forests that were subject to major impacts in the past (for instance by agriculture,
livestock raising, tree plantations, or intensive logging) but where the main causes of impact have ceased or greatly
diminished and the ecosystem has attained much of the species composition, structure, and ecological function ofprior or other contemporary natural ecosystems.
c)Managed natural forests where much of the ecosystem’s composition, structure, and ecological function exist in
the presence of activities such as: harvesting of timber or other forest products, including management to promote
high-value species; low-intensity, small-scale cultivation within the forest, such as less-intensive forms of swidden
agriculture in a forest mosaic.

d) Forests that have been partially degraded by anthropogenic or natural causes (e.g., harvesting, fire, climate change,
invasive species, or others) but where the land has not been converted to another use and where degradation does
not result in the sustained reduction of tree cover below the thresholds that define a forest or sustained loss ofother main elements of ecosystem composition, structure, and ecological function.
The categories “natural forest” and “tree plantation” are mutually exclusive.
Accountability Framework, Definitions | Accountability Framework 2020 (accountability-framework.org)
8.

Protected forest—A protected area is a clearly defined geographical space, recognised, dedicated, and managed, throughlegal or other effective means, to achieve the long-term conservation of nature with associated ecosystem services andcultural values. (IUCN Definition 2008) About - Protected Areas | IUCN

9.

Zero net deforestation—No net loss in forest area between two points in time, taking into account both losses fromdeforestation and gains from forest regeneration and restoration. Zero net deforestation would typically be assessedwith reference to a given geographic area (e.g., a district, state, nation, or globe) and a given timeframe.
Accountability Framework, Definitions | Accountability Framework 2020 (accountability-framework.org)

10. Natural Ecosystem—An ecosystem that substantially resembles—in terms of species composition, structure, and ecological
function—one that is or would be found in a given area in the absence of major human impacts. This includes humanmanaged ecosystems where much of the natural species composition, structure, and ecological function are present.
a)Natural ecosystems include: Largely “pristine” natural ecosystems that have not been subject to major humanimpacts in recent history.

b) Regenerated natural ecosystems that were subject to major impacts in the past (for instance by agriculture, livestockraising, tree plantations, or intensive logging) but where the main causes of impact have ceased or greatly diminishedand the ecosystem has attained species composition, structure, and ecological function similar to prior or othercontemporary natural ecosystems.
c)Managed natural ecosystems (including many ecosystems that could be referred to as “semi-natural”) where muchof the ecosystem’s composition, structure, and ecological function are present; this includes managed natural forests
as well as native grasslands or rangelands that are, or have historically been, grazed by livestock.

d) Natural ecosystems that have been partially degraded by anthropogenic or natural causes (e.g., harvesting, fire,

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PMI ZERO DEFORESTATION MANIFESTO AND COMMITMENTS
climate change, invasive species, or others) but where the land has not been converted to another use and wheremuch of the ecosystem’s composition, structure, and ecological function remain present or are expected to regenerate
naturally or by management for ecological restoration.
Accountability Framework, Definitions | Accountability Framework 2020 (accountability-framework.org)
11. Free Prior Informed Consent (FPIC)—A collective human right of indigenous peoples and local communities to give
and withhold their consent prior to the commencement of any activity that may affect their rights, land, resources,
territories, livelihoods, and food security. It is a right exercised through representatives of their own choosing and in amanner consistent with their own customs, values, and norms.
Accountability Framework, Definitions | Accountability Framework 2020 (accountability-framework.org)
12. Sustainable wood fuel—Sustainable wood fuels cover wood from:a)

Legal plantations that are sustainably managed, including on-farm planting;b) A sustainably managed secondary forest or degraded forest with no measurable deforestation; andc)

Identified invasive exotic species that have not been planted and require removal.

Sustainable wood-fuels exclude wood fuels derived from:d) Unsustainable managed natural forests where deforestation is measurable;e)Plantations resulting from conversion of natural forests; andf)Primary and protected forests where exploitation is forbidden under any management practices.

FAO, n.d. Sustainable Forest Management (modified).

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