LAPU-LAPU CITY, Cebu - Philip Morris International (PMI) plans to ramp up its sustainability initiatives in the Philippines as it looks to remain resilient in its push to promote a smoke-free future amid potential disruptions.

With sustainability at the core of its business operations, PMI Chief Sustainability Officer Jennifer Motles said the company has invested heavily in developing products that meet consumer demand while reducing harm.

Despite its leadership in the tobacco industry, she said PMI is aware of the health impacts of these products and is now addressing the issue through its vision of transitioning toward smoke-free alternatives.

Unlike cigarettes, PMI’s smoke-free products release nicotine without burning, offering an alternative to traditional smoking, which is laden with harmful chemicals known to cause diseases.

In the first quarter, smoke-free products accounted for 43 percent of PMI’s revenues. The company is targeting to expand this share to two-thirds by 2030.

Motles said these products are designed and produced with sustainability in mind, as part of the company’s efforts to create value across the supply chain.

For one, she said PMI has allocated nearly all of its capital spending in research and development (R&D) toward smoke-free products over the past five years.

“With our smoke-free products, the value proposition of the product itself is that they are significantly less harmful than smoking. This statement needs to be scientifically substantiated, so you need to invest billions in R&D and also billions in terms of facilitating different agencies around the world to validate and verify this statement,” she said on the sidelines of the 2026 ASEAN-EU Sustainability Forum here.

For PMI, developing smoke-free products sustainably also includes operating efficiently in a resource-constrained world, which requires the use of renewable energy instead of conventional fuel.

The company has invested more than $3.1 million to build a solar power plant at its manufacturing facility in Batangas to power its operations while helping reduce its environmental footprint.

At a time when the Philippines is grappling with instability in its energy resources, Motles said such an investment is crucial to keep the facility running without disruptions.

PMI, through its local unit PMFTC Inc., has also widened the electrification of its logistics fleet, which now comprises more than 550 electric and hybrid vehicles, representing 18 percent of its total fleet.

PMFTC has also demonstrated progress in circularity, implementing efforts to convert plastic waste into usable community products and achieving a 40-percent waste diversion target.

PMI’s sustainability initiatives are part of its Value Plan 2030+, which outlines priority areas focused on the broader objective of creating and preserving long-term value.

The strategy covers consumers, circularity, workforce, value chain workers, climate, and nature, anchoring the company’s ambition to deliver sustainable growth while accelerating its transformation toward a smoke-free future.

“You're not just accounting for business growth, but you're accounting for cost avoidance, you're accounting for prevention of disruption, you're accounting for having high-quality talent, and ultimately, all of this creates sustainable growth,” said Motles.