Author: Taco Tuinstra

Companies Strengthen Sustainability Creds

Photo: Deemerwha studio
Leading cigarette makers are strengthening their sustainability credentials.
Philip Morris International, for example, recently announced new ambitions to “preserve nature” via biodiversity and water stewardship.
These ambitions include protecting nature by achieving no net loss on ecosystems connected to PMI’s value chain by 2033; contributing toward a net positive impact on nature by 2050; scaling solutions toward a positive impact on water resources, measured as volume of water optimized and restored, by 2033; and contributing toward a positive impact on water resources by 2050.
“As our new ambitions demonstrate, PMI understands that decarbonization, biodiversity protection, forestry management and water stewardship are deeply connected. We aspire to lead by example in the responsible and sustainable management of natural resources that can allow the promotion and protection of natural ecosystems,” said Jennifer Motles, chief sustainability officer, in a statement.
PMI’s strategies to “tackle climate change” and “preserve nature” have been recognized by CDP, a not-for-profit charity that runs a global disclosure system for investors, companies, cities and regions to manage their environmental impacts. On Dec. 13, 2022, PMI received the Triple A score for its efforts across climate, forests and water stewardship.
Imperial Brands, meanwhile, recently received a CDP Climate A score for a fourth successive year. The company has committed to reaching science-based net zero emissions by 2040 through a five-step approach outlined in its 2022 annual report. Earlier this year, the business was named as a Supplier Engagement Leader by CDP for a third successive year and as a Climate Leader by the Financial Times.
“There is no other path than for all companies, all governments and all of society to pull together and get behind the decarbonization commitments that have been made,” said Tony Dunnage, global ESG (environmental, social and governance) director at Imperial, in a statement. “Our A score reflects our commitment to reducing our impact on the climate throughout our value chain, and we know that we can make a meaningful contribution.”
Imperial was also rated A- by CDP for water security—an improvement on the B rating achieved a year earlier—and a C for its first response in a number of years to the forests survey.
Japan Tobacco, too, has strengthened its commitment to sustainability. The company has been included in the Dow Jones Sustainability Asia-Pacific Index (DJSI Asia-Pacific) for the ninth consecutive year.
The DJSI is a globally recognized ESG stock index and sustainability benchmark that tracks the stock performance of the world’s leading companies in terms of governance and economic, environmental and social dimensions, with constituents selected on the basis of the S&P Global Corporate Sustainability Assessment. The DJSI Asia-Pacific is an index of companies in the Asia-Pacific region, which is reviewed once a year and whose constituents are selected from approximately 600 major companies in the region.
“We are honored that this year, again, JT has been selected in the DJSI Asia-Pacific,” said JT Senior Vice President and Chief Sustainability Officer Hisato Imokawa in a statement. “We believe that our inclusion in the index for the ninth consecutive year is the recognition of our earnest efforts to address ESG issues across our value chain. We are committed to promoting transparent and accurate disclosure of nonfinancial information, which has been a vital part of our agenda in recent years, and we recognize
that this is an important initiative to promote stakeholder engagement and dialogue.”
December 14, 2022
Swedish Match Calls Post-Takeover Meeting

Photo Swedish Match
Swedish Match will hold an extraordinary general meeting on Jan. 16 in Stockholm following Philip Morris International’s takeover of the company.
Shareholders can register online.
The total number of shares and votes in Swedish Match at the time of notice to the general meeting amounts to 1,525,000,000, of which 4,285,810 shares are repurchased own shares, which may not be represented at the general meeting.
The entrance to the venue for the general meeting will open at 10:30 CET.
December 14, 2022
Dual Users Likely to Keep Smoking: Study

Photo: Teo
Most adults who both smoke and vape are likely to carry on smoking or continue dual use over the long term, according to new research published in Tobacco Control.
Researchers looked at 545 dual users in waves one through five (2013/2014 to 2018/2019) of the U.S. Population Assessment of Tobacco and Health Study.
Over the six years of data, quitting vaping early but continuing to smoke was the most common pattern for almost half of participants (42 percent). Only 10 percent of participants quit both vaping and smoking early, and 15 percent of dual users continued to use both products.
The frequency of vaping and smoking, nicotine dependence, use of cannabis and other tobacco products at wave one were all influential. Dual users who smoked less frequently at wave one were more likely to quit both products early or to gradually quit smoking.
This is an observational study, and product use was based on self-report and not biochemically verified. No information was available for product use between waves.
“Our findings suggest that smoking reduction could help dual users to quit using both products; additionally, for those smokers unable or unwilling to quit using nicotine, cutting down on smoking could help them switch to exclusive [vape] use,” wrote the authors.
Their results also suggest that “before 2019, [vaping] did not contribute to substantial smoking cessation at the population level.”
“Continued monitoring of trajectories and their predictors is warranted considering the rapid evolution of the [vaping] marketplace,” the authors wrote in a press release.
December 14, 2022
Indonesia to Raise Tobacco Tax

Photo: Taco Tuinstra
The Indonesian government plans to raise tobacco excise rates by 10 percent in 2023 and 2024 for hand-rolled cigarettes, with the maximum increase capped at 5 percent per year, reports Antara.
Excise rates for electric cigarettes of all types will be increased by 15 percent, and other tobacco products will be increased by 6 percent every year for the next five years.
The minimum retail price for tobacco products has been adjusted considering the developments in market prices and the average increase in cigarette excise duty.
The goal of the increase in tax is to decrease smoking and tobacco use among the population.
“With excise as a fiscal instrument to control consumption, we hope that the excise will increase prices, which will then reduce the number of smokers,” said Finance Minister Sri Mulyani Indrawati during a working meeting with Commission XI of the Indonesian House of Representatives in Jakarta.
Indonesia currently ranks first in the world for adult male smoker prevalence and fifth in the world for adult smokers.
December 13, 2022
Study Shows Velo Offers Reduced Risk

Photo: BAT
Users of BAT’s Velo modern nicotine pouch showed significant reduced risk of smoking-related diseases compared to smokers, according to a new cross-sectional clinical study published in Biomarkers.
The study included participants who had been using Velo exclusively for over six months as well as current smokers, former smokers and never-smokers. For the Velo consumers and current cigarette smokers, usage patterns and overall consumption were not controlled under the study protocol as the aim was to assess the impact among people using the products in their “normal” way rather than in a controlled way. Four different groups were enrolled and studied.
The results showed that the levels for the biomarkers of exposure, based on priority toxicants as defined by the World Health Organization, were substantially lower in Velo consumers compared with smokers. The data also showed favorable differences between the Velo consumers and smokers in the majority of the biomarkers of potential harm, with four achieving statistical significance and the others having similar levels across the Velo consumers, former and never smoker groups.
A single set of samples of blood, urine and other clinical measurements was tested for certain toxicants and a range of biomarkers thought to be linked to the development of diseases such as cancer and cardiovascular disease.

“These results add further evidence that supports the important contribution Velo can make to tobacco harm reduction.”
David O’Reilly, director of scientific research, BAT
“These results are very important for Velo and the modern oral nicotine product category,” said David O’Reilly, director of scientific research at BAT, in a statement.
“They build on the extensive scientific evidence, including epidemiological data, that already exists for oral tobacco and add to the weight of evidence that supports our belief that Velo is a reduced-risk product for smokers who completely switch from cigarettes as compared to continued smoking. We have already generated data that shows Velo has a toxicant profile better than snus and comparable to nicotine-replacement therapy. These results add further evidence that supports the important contribution Velo can make to tobacco harm reduction.”
Based on the biomarkers measured, compared to smokers, Velo consumers who had been using the product exclusively showed significantly lower levels in biomarkers of exposure to priority tobacco toxicants; significant favorable differences in a biomarker of potential harm relevant to lung cancer risk; significant favorable differences in a number of biomarkers of potential harm relevant to cardiovascular disease; and significant favorable differences in a biomarker of potential harm relevant to general inflammation.
For the biomarkers that showed no significant difference between the Velo consumers and smokers, similar levels were observed between the Velo and former and never-smoker groups.
Participants were based in Denmark and Sweden, aged 19–55 years old and in good general health.
December 13, 2022
India Mulls Ban on Single Cigarette Sales

Photo: Africa Studio
The Standing Committee of Parliament has proposed a ban on the sale of single cigarettes in India to help curb tobacco use, according to reports by DNA India and Latestly.
The government should also implement a 75 percent goods and services tax (GST) on tobacco products in accordance with World Health Organization recommendations, according to DNA India. India currently imposes GSTs of 22 percent on bidis, 53 percent on cigarettes and 64 percent on smokeless tobacco. However, tax on tobacco goods has not increased significantly despite the GST, according to the committee.
Smoking is prohibited in public places in the country, with those caught breaking the law facing a fine of up to INR200 ($2.41). Tobacco product advertisements are also banned.
December 13, 2022
FDA Fails in Enforcement: Report

Photo: Postmodern Studio
The U.S. Food and Drug Administration has failed to follow through after issuing warning letters to online tobacco products and vapor product sellers, according to a report by the Health and Human Services Office of the Inspector General (OIG).
Between 2010 and 2020, the FDA issued warning letters to 899 online retailers but “took no enforcement actions,” according to the report.
The FDA enforcement schedule, as of March 2022, calls for the following actions: first violation—warning letter; second violation within a 12-month period—fine of up to $320; third violation within a 24-month period—fine of up to $638; fourth violation within a 24-month period—fine of up to $2,559; fifth violation within a 36-month period—fine of up to $6,398; sixth violation within a 48-month period—fine of up to $12,794; and five or more repeated violations within 36 months—no-tobacco-sale order of 30 calendar days or six months or permanent.
The OIG report criticizes the FDA’s lack of transparency, which it says makes it hard to track the FDA’s performance. The report suggests that the FDA collaborate with the Bureau of Alcohol, Tobacco, Firearms and Explosives on oversight of online tobacco retailers; complete its rulemaking on non-face-to-face sales of tobacco products as required by the Tobacco Control Act; collect data to support process and outcome measures for its oversight of online tobacco retailers; and publish information and performance data on its oversight of online tobacco retailers.
In a response, the FDA did not dispute a lack of enforcement actions and agreed with the first and fourth suggestions, stating it is in the process of making those changes. The organization was noncommittal regarding the other two suggestions.
The OIG report is separate from the Reagan-Udall Foundation review of the FDA’s Center for Tobacco Products.
December 13, 2022
KT&G Recognized for Sustainability

Photo: KT&G
KT&G received the Prime Minister’s commendation in the general environmental, social and governance (ESG) sector at the 2022 Sustainable Management Government Award ceremony at the Korea Chamber of Commerce and Industry.
The Government Award for Sustainable Management is the only government award in the sustainable management sector given by the Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups. It is awarded to institutions or organizations that have contributed to the expansion and leadership of sustainable management, thereby enhancing industrial competitiveness, creating social values and generating achievements.
KT&G was recognized for its efforts to establish and execute a mid-term to long-term vision of environmental management that extends throughout the value chain; for receiving the Equal Salary Certification from the European Commission for the first time for a listed company in South Korea; and for evaluating and supporting the ESG of partner companies to build partnership.
“We are actively promoting the ESG management at the group level to enhance long-term corporate value,” said Kim Jin-han, director of KT&G’s strategic planning, in a statement. “We will continue to strive for mutual growth with our shareholders and other stakeholders through various sustainability management activities.”
December 13, 2022
Kiwi Lawmakers Pass Generational Ban

Photo: sezerozger
Lawmakers in New Zealand passed legislation today that makes it illegal to sell tobacco to anyone born on or after Jan. 1, 2009, reports the South China Morning Post.
“There is no good reason to allow a product to be sold that kills half the people that use it,” Associate Health Minister Ayesha Verrall told Parliament, adding that New Zealand’s healthcare system would save billions of dollars in the cost of treating sick smokers.
New Zealand’s pioneering law means that the minimum age for buying cigarettes will increase year after year. For example, somebody trying to buy a pack of cigarettes 50 years from now would need to prove they were at least 63 years old.
In addition to its age provision, the law will also cut the number of retailers allowed to sell tobacco by 90 percent and require companies to reduce the level of nicotine in combustible products.
The new legislation is part of New Zealand’s drive to become “smoke-free” by 2025, a situation in which fewer than 5 percent of the population smokes, according to the government definition.
Opponents of the legislation said the bill would force many small corner shops, known in New Zealand as dairies, out of business because they would no longer be able to sell cigarettes. They also predicted it would boost illicit tobacco sales.

“Denying adults the right to buy cigarettes legally will infantilize future generations and could make cigarettes more [and] not less desirable.”
Simon Clark, director, Forest
Smokers’ rights group Forest called the generational tobacco ban “absurd.”
“Banning younger adults from buying cigarettes legally won’t stop people smoking. It will merely drive the sale of cigarettes underground with consumers buying unregulated cigarettes on the black market, like any other prohibited product,” said Forest Director Simon Clark.
“Absurd policies like this are what happens when governments set targets for countries to become smoke-free,” he added. “Denying adults the right to buy cigarettes legally will infantilize future generations and could make cigarettes more [and] not less desirable.”
The share of people in New Zealand who smoke cigarettes daily has dropped to an all-time low of 8 percent, down from 9.4 percent this time last year, the annual NZ Health Survey revealed in November. By comparison, OECD data shows 25 percent of French adults smoked in 2021.
The decline in smoking has been accompanied by a rise in vaping. Some 8.3 percent now use e-cigarettes daily compared with 6 percent 12 months ago.
22nd Century Group, an agricultural biotechnology company that has invested heavily in reduced-nicotine cigarettes, applauded New Zealand’s plan to lower nicotine levels. “This policy is exactly what we were hoping for and more, particularly considering the inclusion of ‘testing variance’ in evaluating nicotine content,” said John D. Pritchard, vice president of regulatory science at 22nd Century, in a statement.
By including testing variance in the maximum permitted nicotine content of smoked tobacco products, New Zealand is compelling cigarette makers to target an average value of approximately 0.5 mg of nicotine per gram of tobacco content, which, according to Pritchard, also happens to be the level achieved by 22nd Century Group’s VLN products.
December 13, 2022
Avail Loses MDO Case

Photo: Avail Vapor
A U.S. court rebuffed Avail Vapor’s appeal of the Food and Drug Administration’s refusal to allow its products on the market, reports Reuters. The ruling is the latest in a series of court orders upholding the agency’s regulation of the e-cigarette industry.
The 4th U.S. Circuit Court of Appeals on Dec. 12 found that the FDA had acted within its authority in rejecting Avail Vapor’s premarket tobacco product applications.
In 2016, the FDA determined that e-cigarettes were subject to its regulation and gave manufacturers until 2020 to apply for approval of vapor products.
Avail Vapor sought approval for its products in 2020, telling the FDA that they could help smokers quit by switching to e-cigarettes. The company said it had measures in place that would ensure that its liquids would not be sold to minors.
The FDA denied the application in 2021, saying that the company had not presented long-term studies supporting its claim that its products, which included fruit flavors, were more effective at helping smokers quit than tobacco-flavored liquids, which the agency has said are less appealing to minors.
Avail lost an administrative appeal and then petitioned the 4th Circuit to overrule the agency. The company argued that the FDA failed to inform applicants in 2019 that they would need long-term studies. It also said the agency was obligated to consider the sales plan.
Circuit Judge J. Harvie Wilkinson wrote that Avail “encourages us to neglect the forest for the trees” by focusing on procedural objections rather than the FDA’s mandate to protect public health.
The FDA has denied more than 55,000 applications from e-cigarette products. Those denials have been previously upheld by the D.C. Circuit, 3rd Circuit and 7th Circuit.
December 13, 2022