Philip Morris International Releases 2021 Integrated Report, Introducing New Sustainability Strategy and Sustainability Index - Seite 2

PMI’s 2025 Roadmap was revamped accordingly, and it now consists of 11 goals directly linked to these eight strategies, clearly explaining the social and environmental impacts PMI aims to achieve. Further, to clearly assess progress toward achieving these goals, PMI introduced 19 concrete KPIs to transparently showcase how the company defines success and evaluates progress, making its improvement both measurable and verifiable. Altogether, these KPIs make up the company’s new Sustainability Index, which explicitly links 30% of the company’s long-term compensation program to ESG performance.

Said Emmanuel Babeau, Chief Financial Officer of PMI, “I’m proud to be able to say that our executive compensation program now reflects our commitment to put sustainability at the core of our corporate strategy. PMI’s Sustainability Index aligns us even further with the interests of shareholders and other stakeholders, forming a strong link between our executive compensation practices and the company’s short- and long-term ESG performance.”

In its 2021 Integrated Report and aligned with its new strategy, PMI organized its description of progress into two categories: the impact of its products and the impact of its operations. Highlights include the following:

Product impact*

• 21.7 million* total adult users of PMI’s smoke-free products as of December 31, 2021, of whom 15.3 million* have switched and stopped smoking; up from 18.3 million* and 13.0 million*, respectively, in 2020.
• 29.1%* of adjusted net revenues derived from smoke-free products, which were available for sale in 71 markets worldwide by year end; up from 23.8%* and 64, respectively, in 2020.
• 99% of adjusted R&D expenditure on smoke-free products totaling USD 566 million, consistent in proportion but 14% higher in dollar terms than the USD 495 million spent in 2020.
• 86% recycling rate of IQOS devices returned to our centralized recycling hubs, weighted-average percentage of each device that is recycled, vs. 84% in 2020.

Operational impact*

• 39.7% of management positions held by women, on track to achieve 2022 target of 40%.
• Five human rights impact assessments conducted since 2018 in highest-risk countries and action plans being implemented, up from four in 2020.
• 67% of contracted farmers supplying tobacco to PMI who make a living income, up from 48% in 2020.
• Reduced total value chain CO2e emissions (scope 1+2+3) by 18% and emissions from direct operations (scope 1+2) by 33% vs. 2019 baseline.
• 100% of tobacco purchased at no risk of deforestation of primary and protected forests.

“Our 2021 Integrated Report aims to address demands for more robust, comparable, and reliable