S&P Global Ratings Recognizes PMI’s Business Transformation as Industry Differentiator
Philip Morris International Inc. (PMI) (NYSE:PM) is transforming its business to deliver a smoke-free and sustainable future. Today, the company announced that S&P Global Ratings’ ESG Evaluation report has assessed PMI’s approach to environmental, social, and governance (ESG) topics and confirmed that PMI has positively differentiated itself within the tobacco sector.
The S&P Global Ratings ESG evaluation assesses a company’s ESG strategy and ability to prepare for potential future risks and opportunities, and provides a forward-looking, long-term opinion of a company’s readiness for disruptive ESG risks and opportunities. It provides an overall score that allows comparison with other entities globally, including sector peers, and consists of a combined sector/region score, an entity-specific score, and a preparedness score. Based on entity-specific scores — designed to indicate how a company is actively and effectively managing its exposure to ESG risks and opportunities compared with its industry peers—PMI is placed third in the E-entity specific score, 8th in the S-entity specific score, and 15th in the G-entity specific score among all 25 current publicly available ESG evaluations.
“I am proud that our dedication to sustainability, which is fundamental to the transformation of our company, has been recognized externally by S&P Global Ratings,” said Emmanuel Babeau, Chief Financial Officer, PMI. “It is our firm belief that sustainability and business performance do not follow separate paths—they are fully interrelated and mutually reinforcing, and should be organized and presented to all stakeholders, including shareholders, in an integrated way.”
In February 2021, PMI announced an increased ambition for the contribution of its smoke-free products to total net revenues to more than 50 percent in 2025, meaning that in five years, cigarettes would account for less than half of PMI’s total net revenues. The company also stated its aspiration to commercialize its smoke-free products in a total of 100 markets by the end of 2025, from 64 at the end of 2020. Additionally, PMI announced an aspirational target of at least USD 1 billion in annual net revenues from “beyond nicotine” products by 2025. This new aspiration reflects additional growth potential and further acceleration of the company’s transformation, leveraging PMI’s significant capabilities within life sciences, device technology, consumer expertise and more.
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