"Authorities have a responsibility to encourage alternatives"
E-cigarettes and other smoke-free products would save the lives of many smokers. But the biggest tobacco companies still choose to focus on traditional cigarettes. This is shown by the new Tobacco Transformation Index.
Tobacco companies are doing a poor job of producing and marketing products that reduce the harm caused by smoking. This is according to a new barometer that measures how companies are investing in smoke-free nicotine products such as snus and e-cigarettes.
"Despite commitments and promises to move to less harmful products, 95% of sales are still traditional cigarettes among the top fifteen companies" says Derek Yach, President and Founder of the Foundation for a Smoke Free World, which is behind Tobacco Transformation Index.
Pensions drive tobacco companies
The Tobacco Transformation Index is launched as a way to influence the development of harm reduction in the tobacco and nicotine industry. It aims to provide investors, health organizations and policy makers with a clear picture of what tobacco companies are actually doing to reduce the harm caused by their products.
"Banks and pension funds account for 85% of investments in listed tobacco companies. They have a great opportunity to drive the development of harm reduction products that impact the health of the world's smoking population," says Derek Yach.
8 million die annually from smoking
According to the Foundation for a Smoke-Free World, 1.3 billion people worldwide use tobacco. And of these, 8 million die from smoking-related diseases. Every year.
"Smoking cessation and harm reduction products would greatly reduce the number of deaths over the next decades" says Derek Yach.
Authorities have a big responsibility
According to Derek Yach, the index list is part of a larger strategy to reduce smoking worldwide. But it is not enough for the tobacco industry to invest in less harmful products. Governments, especially signatories to the WHO tobacco convention, have an important responsibility.
"Real progress will only happen when all tobacco companies start phasing out cigarettes themselves. But for that to work, governments need to legislate smartly to promote the alternatives. The WHO can help by encouraging tobacco harm reduction," says Derek Yach.
Prohibition an obstacle
But as it stands today, the WHO and many other organizations a very negative attitude towards e-cigarettes. This affects all countries, but especially low-income countries where smoking is most prevalent. But also different forms of bans on e-cigarettes as in Denmark, The Netherlands, USA and India become direct obstacles to development. Something that only promotes cigarette sales, says Derek Yack.
"We need better strategies to tackle the harm caused by cigarettes and toxic tobacco products. With a common harm reduction strategy, we can change the tobacco industry's mindset. It would save many lives. But progress is frustratingly slow," says Derek Yach.
Snus and e-cigs are slowly increasing
Not surprisingly, the company that invests most in harm reduction, in terms of marketing and sales, is Swedish Match. Snus sales account for almost half of their sales. They are followed by Philip Morris International, whose sales of lower-risk products account for 19% of the total. British American Tobacco comes third with 5%.
The Tobacco Transformation Index is based on 35 different indicators provided by companies, including marketing, sales and research budgets. The list is updated every two years.
The Foundation for a Smoke Free World is a foundation with the aim of working towards a smoke-free world within a generation. The Foundation was established with the help of a grant from Philip Morris International in 2018, but operates and makes decisions independently of its donor.
