Sustainability is a highly complex concept that, at times, might be hard to integrate in a business environment. However, even companies that were not built with a sustainable focus in mind can turn the leaf and make a real change. A great example illustrating sustainable change is Philip Morris International, which BSL’s Master in International Business students visited on 16th January 2018.
The morning started with warm greetings from Huub Savelkouls, Vice President of Social and Economic Affairs. After a short coffee break, Mr. Savelkouls took us through what the future might hold for PMI’s stakeholders in our first presentation: “Transformation and Sustainability within Philip Morris International”. An interesting fact he mentioned was that, while the world population is growing, the number of smokers remains constant. This represents a great opportunity for Philip Morris to reevaluate their strategic focus. Mr. Savelkouls also tackled common misconceptions, suggesting that contrary to what people think, the tobacco industry can have an important role in solving the smoking problem. This is one of the main points within PMI’ sustainability strategy – convincing people to switch to less harmful products, such as the newly released IQOS device.
The release of this “reduced risk product” allowed Philip Morris International to publish their first ever Sustainability Report in 2016. One of the striking figures in the report is the fact PMI now allocates approx. 70% of their R&D spending on the development of smoke-free products, even though this segment currently only represents 12% of their net revenues. Their overall emphasis on the development of technology-driven, smoke-free products is a great example of sustainability being at the core of a major company’s strategic pivot.
Numbers aside, most students that attended the visit at the Philip Morris International Headquarters in Lausanne were pleasantly surprised by the overall work environment and culture. The free of charge gym, with provided gym attires, and motorsport-themed “Paddock” smoking area were the two favorite workplace perks among the BSL Master students.
To conclude, we would like to thank the people that made this visit possible and PMI for sharing with us their long-term vision on sustainability – hoping it will allow them to leave their competition in a cloud of smoke.