Sustainable Product Transition
Transitioning Our Product Portfolio Away From Plastic
Sustainable Product Transition
Our ECO Range already represents 24% of our product portfolio. The target is 25% plastic-free by 2030, 50% by 2040, and 100% by 2050 — backed by SBTi-validated targets for reducing lifecycle emissions.
Our Sustainable Product Transition pillar focuses on developing plastic-free, biodegradable and lower-carbon alternatives that help customers respond to evolving sustainability expectations while maintaining product quality, performance and commercial viability.
What We Have Done…
Innovation and Product Development is the foundation of Filtrona’s product transition journey. It covers the way we research, design, test and commercialise lower-impact filtration solutions, including products that reduce dependence on conventional cellulose acetate and support customers in meeting emerging regulatory expectations.
At the centre of this work is our ECO Range — plastic-free, biodegradable filter solutions with lower lifecycle carbon impact, customised to customer specifications. This is underpinned by our Filtrona Innovation Centre and ISO 17025-accredited Scientific Services — providing independent testing, validation and regulatory support for new filter materials.
Product Carbon Footprint — ECO Range
Filtrona’s ECO Range filter products are manufactured from plastic-free, biodegradable materials — primarily cellulose fibres — replacing conventional cellulose acetate. Cellulose fibre carries significantly lower embedded carbon than cellulose acetate, which requires an energy-intensive chemical conversion process.
Based on carbon footprint calculations aligned with the GHG Protocol Product Standard, our ECO Mono filter generates approximately 80% lower CO2e per kilogram than a conventional cellulose acetate mono filter of equivalent specification. Across the broader ECO Range, carbon reductions range from 36% to 80% compared to their cellulose acetate equivalents, depending on product type and complexity.
Calculations use a cradle-to-customer gate system boundary, incorporating raw material production, upstream transport, manufacturing, packaging and outbound logistics. Figures are internally calculated using recognised secondary emission factor databases and have not yet been independently verified by a third party.
Product-level carbon footprint data is available to customers on request to support Scope 3 reporting.
Our Achievements
In 2025, we formally adopted and embedded our Climate Transition Plan, creating a structured pathway to deliver its approved science-based greenhouse gas reduction targets. The Company’s near-term and long-term targets were validated by the Science Based Targets initiative (SBTi).
We continued to expand and commercialise the ECO Range across multiple product applications, while strengthening the role of the Filtrona Innovation Centre and Scientific Services in material evaluation, product validation and regulatory testing. This progress also supports broader value chain transformation. As purchased raw materials represent a significant share of lifecycle and Scope 3 emissions, product design and material innovation remain among the most important levers in reducing long-term environmental impact.
Achieved 24% sustainable / plastic-free product portfolio in 2025
Climate Transition Plan formally adopted and integrated into capital allocation and procurement planning.
Outlook
Filtrona will expand the ECO Range toward the 2030 target of 25% plastic-free portfolio, supported by lifecycle assessment, customer collaboration and material qualification through the Innovation Centre. We will continue strengthening environmental data quality, while prioritising emissions reduction initiatives that are both high-impact and commercially viable.
Product Innovation and Intellectual Property supports Filtrona’s ability to create, protect and commercialise differentiated solutions. It covers innovation governance, patents, proprietary technologies, confidential information, product validation and responsible collaboration.
Our Achievements
Filtrona continued strengthening innovation governance and IP protection.
ISO 17025 accreditation maintained for testing and validation activities.
Structured IP protection processes and internal controls maintained.
Innovation governance aligned with strategic priorities, regulatory expectations and sustainability objectives.
Continued investment in reduced-risk and sustainable product innovation for heated tobacco systems.
Internal controls strengthened to protect patents, proprietary technologies and confidential information.
Outlook
Filtrona will continue focusing on innovation that supports customer needs, regulatory expectations and sustainability goals. Future priorities include stronger global IP governance, expanded innovation partnerships, ESG integration into innovation processes and greater use of advanced IP analytics.
Our people are the key to our success. With a steadfast commitment to nurturing talent and safeguarding well-being, our workforce initiatives underscore our dedication to fostering a thriving, inclusive, and secure workplace environment.
Our Approach
Our talent management strategy safeguards against risks from key departures, especially in senior roles, ensuring stability and continued success. We have an employee development plan in place that encompasses performance management, talent management, and development and training programmes.
In FY2025, employees completed an average of 36 hours of training per person.
Outlook
A more focused performance development approach consisting of driven goals, behaviours aligned to our values and people development plan.
A structured learning plan to support employee’s professional and personal growth in the company.
An effective talent map to grow talent from within and at leadership level.
At Filtrona, the commitment to diversity and inclusion is a core part of who we are and how we operate. Our goal is to build not only a fair and inclusive culture but also a diverse talent pipeline that mirrors the communities in which we operate. We strive to establish a workplace where every employee feels valued and respected.
Our Approach
Our dedication to creating an equitable workplace is integrated into every aspect of our human resources policies, shaping a culture where everyone is encouraged to be their authentic selves and where opportunities are equally accessible to all.
Women represent 29% of Filtrona’s leadership and management roles (FY2025), progressing toward our target of 40% by 2040.
Women represent 26% of the total workforce.
Outlook
To further promote equity, we are establishing forums and committees dedicated to driving these values throughout the workplace A key focus of our diversity efforts is gender representation, particularly in leadership positions.
We aim for 40% women representation in senior management by 2040 enhance gender diversity.
Employee health, well-being and safety stand as critical pillars of Filtrona’s corporate ethos. We understand that ensuring the physical and mental well-being of our team is essential to fostering an environment where everyone can thrive and grow.
Our Approach
Our health, safety, and environmental (HSE) strategy is built on four foundational pillars: People, Standardisation, Risk Reduction, and Environmental Sustainability.
Outlook
In FY2025, 100% of Filtrona employees are covered by an ISO 45001-certified occupational health and safety management system. Filtrona recorded 1 lost time injury in FY2025 with no fatalities or permanent disability. Filtrona Thailand received an honorary plaque from the Social Security Office for exemplary performance in reducing work-related injuries.
Through this integrated approach, we can actively shape industry standards and foster a safer, healthier, and more sustainable future for all our stakeholders.
We aim to achieve a workplace with Zero Injuries and Zero Lost Time Incidents (LTIs). This goal reflects our commitment to not just adhere to health and safety standards, but to set new benchmarks for excellence in workplace safety. We also aim to ensure that all of our suppliers align with our approach for health and safety programmes.
Human rights serve as a benchmark for assessing how we treat our people, essential to the well-being of individuals and the health and advancement of our workplace community.
Our Approach
We are firmly committed to non-discrimination, equal opportunity, fair wages, safe working conditions, and the freedom of association, alongside the stringent prohibition of child and forced labour in compliance with labour laws and regulations.
Outlook
We aim to align policies with the UN Sustainable Development Goals and ILO human rights standards. This indicates that our operations contribute to sustainable development and uphold principles of inclusivity, labour rights, and diversity. We seek to impact society positively while fostering responsible corporate responsibility.
Our community contributions enhance social cohesion, spur economic growth, and affirm our commitment to collective responsibility and ethics, highlighting the intertwined success of individuals, our company, and society.
Our Approach
Filtrona’s dedication to social responsibility extends beyond the scope of our business operations, reaching into the heart of the communities where we operate.
Our Achievements
In FY2025, Filtrona’s community programmes reached approximately 5,000 children and students through long-term initiatives in India (2017–2025). Site-level community engagement was delivered across all operating regions.
Total CSR investment in India for FY2025 amounted to approximately USD 196K. Over 40 life-saving heart surgeries were supported through the Niramai community health programme, which received the Rotary India National CSR Award 2025 (Healthcare, Large Category).
Sustainability Report 2025
Our 2025 Sustainability Report marks a significant step forward. Going beyond our previous reporting to offer a more complete, transparent picture of how we operate and where we stand on our ESG commitments.
This year’s report introduces broader disclosures across our environmental impact, social performance, and governance practices. We’ve deepened our data coverage, added new metrics, and provided greater context around the progress on our sustainability journey.
To further validate our commitments, the report has been independently assured by SGS under the AA1000 Assurance Standard v3 (Type 2, Moderate Assurance).
Sustainability Report 2024
The Filtrona Sustainability Report 2024 demonstrates our unwavering commitment to sustainable, efficient, and socially responsible business practices.
It serves as a vital communication platform, fostering meaningful engagement with our stakeholders, including employees, customers, investors, regulatory bodies, suppliers, and the broader public.
This report outlines our strategic roadmap for achieving our ESG goals, with clear metrics to monitor the progress on our sustainability journey.
Sustainability Report 2023
Our 2025 Sustainability Report marks a significant step forward. Going beyond our previous reporting to offer a more complete, transparent picture of how we operate and where we stand on our ESG commitments.
This year’s report introduces broader disclosures across our environmental impact, social performance, and governance practices. We’ve deepened our data coverage, added new metrics, and provided greater context around the progress on our sustainability journey.
To further validate our commitments, the report has been independently assured by SGS under the AA1000 Assurance Standard v3 (Type 2, Moderate Assurance).