Philip Morris International estimates that climate change could save the company millions of dollars, according to a blog by Kyla Mandel published at Think Progress.
In a newly-released corporate disclosure document, PMI said the higher temperatures and increased rainfall that came with climate change would save the company millions of dollars.
Thousands of corporate disclosures were published by UK-based non-profit CDP (formerly known as the Carbon Disclosure Project) detailing how companies are preparing for a warmer world and how they expect climate change will impact their bottom lines.
‘According to its disclosure, Philip Morris International expects heavier rains will save the company an estimated $10 million,’ said Mandel. ‘This is because steady rainfall is the ideal environment for growing tobacco; the longer the soil is moist, the longer tobacco’s life cycle. In turn, the company says it would be able to increase production and potentially improve the quality of its cigarettes.
‘Meanwhile, the tobacco giant expects higher temperatures – which will help with drying out, or curing, the tobacco leaves – will save the company an additional $1 million each year since it won’t have to use as much firewood to dry the leaves.
‘Extreme rainfall and drought could also negatively impact tobacco production in several ways, the company notes in its disclosure, from the need to pump excess water to disruptions to its distribution.’
PMI reportedly told CDP that, to help combat climate change, the company was working on reducing its carbon footprint by cutting energy usage and greenhouse gas emissions.
And it said that by advertising its sustainability initiatives it might gain better consumer recognition, enhance its brand image, and increase the company’s competitive advantage.
CDP gave PMI an ‘A’ grade for its efforts on climate change.