Philip Morris International (PMI), one of the world’s largest tobacco companies, announced that it is phasing out traditional cigarette production in favor of products that will be less harmful to health. In this respect declaration organization director Jacek Olczak in an interview with the Financial Times.
“This decision was driven by the desire to bring back investors, many of whom had begun to refuse to buy shares in a tobacco company on the backdrop of the spread of ESG standards,” Olchak said.
According to him, alternative vapor nicotine systems make it possible to comply with the company’s development strategy. At the same time, these products accounted for a third of last year’s revenue.
He added that with the change in company policy, several major funds have re-established relationships with Philip Morris, including Robeco and Candriam, which have given up their investments in tobacco stocks for the past few years.
February 22 Olçak declarationChoosing between keeping the business in Russia or selling it on unfavorable terms for shareholders, Philip Morris will choose the first option. According to him, even if a buyer for Philip Morris assets is found and the company approves the deal, after the conflict in Ukraine is over, the cigarette manufacturer will try to buy back its assets and return to the Russian market.
Source: Gazeta
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