Strategy and approach
In late November, Philip Morris Holland Holdings B.V., an affiliate of Philip Morris International Inc. (PMI), announced that it had acquired more than 90 percent of the Swedish Match shares and the Swedish Match share was subsequently delisted from Nasdaq Stockholm on December 30, 2022. As a result of the new ownership, the work to integrate Swedish Match into PMI’s global sustainability structure, strategy and policies has started. During 2023 we will work on integrating our two businesses and look forward to communicating on our performance as one company going forward.
Our 2022 management approach
Our sustainability work in 2022 is based on the sustainability strategy set in 2016. This strategy was founded on two basic principles – focus and organizational ownership. Through this strategy, we emphasize five focus areas – Improve public health, Ensure ethical business practices, Reduce environmental impact, Human rights in our supply chain, and Equal opportunity – areas where we believe we have the ability to directly or indirectly influence meaningful outcomes or where adverse developments could have a negative impact on our businesses. These focus areas have been the basis for our common roadmap and where we have put extra effort and coordinated our external reporting. We have had a series of tangible commitments and goals for each of the focus areas and the Company have continuously measured and reported on its progress. Our Code of Conduct has been the foundation for our sustainability approach and efforts throughout the Company. It has represented the commitment of Swedish Match and all our employees to conduct business activities in a responsible manner, demonstrating integrity and respect to our stakeholders and society as a whole.
Swedish Match has been a global company made up of largely autonomous divisions. We have continuously ensured that the ownership and action in our sustainability work has been strongly supported at the local operating level within each division, where efficient and creative ideas and solutions have been most likely to come up and best followed through. While Swedish Match has been taking a common approach in the focus areas, a number of sustainability initiatives have also been maintained above and beyond these focus areas, with tailored targets and actions at the divisional levels.
Sustainability has been embedded in our value proposition and a significant driver of our long-term success. It has been managed and driven from the highest levels of our organization. The management of the Company has had the overall responsibility for Swedish Match’s efforts on sustainability. The management and other leaders within the Group have been committed to and involved in the process to define and further develop the strategy. Divisional heads have been responsible for implementing the strategy in their respective operating units.
Swedish Match has addressed sustainability with the same priority and management approach as the rest of its strategic priorities. It has been fully integrated into the business reviews, strategic planning, and risk management process. Each quarter the divisions have been responsible to provide progress updates for each sustainability focus area, which has created a positive forum for discussion of opportunities and risks. The controlling function at group level, headed by the CFO, has ensured a consistent approach to sustainability reporting across the Company, and has followed up on our sustainability goals and KPIs in the same rigid manner as the financial targets. The CFO has reported to the Board of Directors on progress for our common sustainability focus areas on a regular basis.
1) The data scope of this report excludes the recently acquired company Fire-Up International B.V. (February 3, 2021), and partly excludes Swedish Match Denmark, previously V2 Tobacco, (August 31, 2017), House of Oliver Twist (April 3, 2018), and Gotlandssnus (August 22, 2018). The Company continues its efforts to integrate data with Swedish Match protocols and standards.