The CEO of Phillip Morris International (PMI), Jacek Olczak says the maker of Marlboro cigarettes is aiming to redirect the company towards ESG stock to win back investors that have stepped away from the stock because of tobacco exclusion policies.

PMI’s redirection from cigarettes towards what The Financial Times calls “less harmful vapor-based nicotine alternatives” accounted for about a third of its revenues last year, placing the tobacco group’s new product line on the front line when it came to environmental, social and governance impact, according to Olczak.

“I’m not saying that they are building a position in Phillip Morris…but the asset managers will not spend the time on talking with you if they don’t have in mind that one day is coming that they should reconsider the exclusion [policy],” he said.

ESG mandates have prompted European asset managers to sell billions of dollars’ worth of tobacco stocks within their actively managed funds in recent years. This form of investment is now the fastest-growing segment of the asset management industry.

According to Olczak, “10 percent of his long-term pay was now linked to ESG targets, but he railed against the ESG conventions which had frozen PMI out in recent years.”

In relation to its products, Olczak said PMI was “on the forefront of the reporting on the methodology…on the transparency and on the materiality assessment,” but acknowledged that other areas including child labor in tobacco supply chains brought significant financial harm to PMI’s ESG rating.

According to tobacco analyst Gaurav Jain, PMI has the best narrative around ESG transitions in the sector and that the bar at which ESG funds will start looking them is very high. However, the company has a long journey before convincing many people that this is a net positive to global society.

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