Philip Morris International Publishes ESG KPI Protocol and ESG Highlights
June 08 2022 - 4:30AM
Business Wire
Linked to PMI’s newly introduced Sustainability
Index, the new ESG KPI Protocol and the ESG Highlights provide
data-driven insight into PMI’s ESG performance
Following the introduction of PMI’s Sustainability Index, Philip
Morris International Inc. (PMI) (NYSE: PM) made its ESG KPI
Protocol publicly available. This document describes how the
Sustainability Index will measure PMI’s progress toward reaching
the goals outlined in its 2025 Roadmap and provides details about
the 19 metrics that comprise PMI’s Sustainability Index. This
announcement follows the release of PMI’s Integrated Report 2021,
which includes details of the company’s Sustainability Index and
the 2022 Proxy Statement, which provides details on how long-term
executive compensation is linked to the company’s 2025 Roadmap
through the Sustainability Index.
The ESG KPI Protocol is a separate, dedicated explanation of the
Sustainability Index’s mechanics. It includes the definition,
methodology, and scope of each of the Sustainability Index’s KPIs
to provide measurable, verifiable, consistent, and accurate
reporting on progress.
Through publication of its ESG KPI Protocol, PMI aims to provide
further transparency on the key metrics used to measure how the
company is progressing towards achieving its purpose and creating
value for shareholders and other stakeholders. Further, the ESG KPI
Protocol establishes a framework, which is specific to the company,
and clearly defines KPIs that can provide the organization with a
method for making the connection between the company’s purpose,
strategic direction, financial performance, and environmental and
social considerations.
“As sustainability matures and gains importance inside and
outside our company, the question of how to measure ESG performance
is something many continue to grapple with. Accordingly, we
developed a clear process for establishing concrete definitions,
documentation, and controls for sustainability with the aim of
standardizing how we measure ESG performance,” said Jennifer
Motles, Chief Sustainability Officer. “We have long expressed our
support for more rigor in sustainability-related reporting—and not
just for companies, but also for ESG ratings and related products.
There is a need for greater transparency, more robust
methodologies, and better clarity on definitions and assumptions.
We certainly welcome recent developments leading to more
consistency in standards under strong governance frameworks.”
Additionally, PMI published its 2021 ESG Highlights—a
data-driven document based on the company’s 2021 Integrated Report
and tailored to complement investor relations materials. It aims to
further strengthen investor engagement and understanding of the
relevance and robustness of PMI’s sustainability strategy and
transformation.
Visit pmi.com/sustainability to view PMI’s ESG KPI Protocol, ESG
Highlights and its Integrated Report 2021.
Philip Morris International: Delivering a Smoke-Free
Future
Philip Morris International (PMI) is a leading international
tobacco company working to deliver a smoke-free future and evolving
its portfolio for the long term to include products outside of the
tobacco and nicotine sector. The company’s current product
portfolio primarily consists of cigarettes and smoke-free products,
including heat-not-burn, vapor, and oral nicotine products, which
are sold in markets outside the U.S. Since 2008, PMI has invested
more than USD 9 billion to develop, scientifically substantiate,
and commercialize innovative smoke-free products for adults who
would otherwise continue to smoke, with the goal of completely
ending the sale of cigarettes. This includes the building of
world-class scientific assessment capabilities, notably in the
areas of pre-clinical systems toxicology, clinical and behavioral
research, as well as post-market studies. The U.S. Food and Drug
Administration (FDA) has authorized the marketing of versions of
PMI’s IQOS Platform 1 devices and consumables as Modified Risk
Tobacco Products (MRTPs), finding that exposure modification orders
for these products are appropriate to promote the public health. As
of March 31, 2022, PMI’s smoke-free products were available for
sale in 71 markets, and PMI estimates that approximately 12.7
million adults around the world, excluding Russia and Ukraine, had
already switched to IQOS and stopped smoking. With a strong
foundation and significant expertise in life sciences, in February
2021, PMI announced its ambition to expand into the wellness and
healthcare areas and deliver innovative products and solutions that
aim to address unmet consumer and patient needs. For more
information, please visit www.pmi.com and www.pmiscience.com.
Forward-Looking and Cautionary Statements
This press release contains statements relating to future plans
and circumstances, including statements regarding our planned
strategies, programs, operations, and goals that are
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These statements may generally, but not always, be identified by
the use of words such as "anticipates," "intends," "expects,"
"believes," or similar expressions. By their nature,
forward-looking statements involve risk and uncertainty because
they relate to events and depend on circumstances that will occur
in the future. There can be no assurance that actual results will
not differ materially from those expressed or implied by these
forward-looking statements due to many factors, many of which are
outside the control of PMI. Any such forward-looking statements
speak only as of the date on which they are made and PMI has no
obligation (and undertakes no such obligation) to update or revise
any of them, whether as a result of new information, future events
or otherwise, except for in accordance with applicable laws and
regulations.
PMI's business risks include: excise tax increases and
discriminatory tax structures; increasing marketing and regulatory
restrictions that could reduce our competitiveness, eliminate our
ability to communicate with adult consumers, or ban certain of our
products in certain markets or countries; health concerns relating
to the use of tobacco and other nicotine-containing products and
exposure to environmental tobacco smoke; litigation related to
tobacco use and intellectual property; intense competition; the
effects of global and individual country economic, regulatory and
political developments, natural disasters and conflicts; the impact
and consequences of Russia's invasion of Ukraine; changes in adult
smoker behavior; lost revenues as a result of counterfeiting,
contraband and cross-border purchases; governmental investigations;
unfavorable currency exchange rates and currency devaluations, and
limitations on the ability to repatriate funds; adverse changes in
applicable corporate tax laws; adverse changes in the cost,
availability, and quality of tobacco and other agricultural
products and raw materials, as well as components and materials for
our electronic devices; and the integrity of its information
systems and effectiveness of its data privacy policies. PMI's
future profitability may also be adversely affected should it be
unsuccessful in its attempts to produce and commercialize
reduced-risk products or if regulation or taxation do not
differentiate between such products and cigarettes; if it is unable
to successfully introduce new products, promote brand equity, enter
new markets or improve its margins through increased prices and
productivity gains; if it is unable to expand its brand portfolio
internally or through acquisitions and the development of strategic
business relationships; or if it is unable to attract and retain
the best global talent, including women or diverse candidates.
Future results are also subject to the lower predictability of our
reduced-risk product category's performance. PMI is further subject
to other risks detailed from time to time in its publicly filed
documents, including PMI's Annual Report on Form 10-K for the
fourth quarter and year ended December 31, 2021, and the Form 10-Q
for the quarter ended March 31, 2022. PMI cautions that the
foregoing list of important factors is not a complete discussion of
all potential risks and uncertainties. PMI does not undertake to
update any forward-looking statement that it may make from time to
time, except in the normal course of its public disclosure
obligation.
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version on businesswire.com: https://www.businesswire.com/news/home/20220531005870/en/
David Fraser Philip Morris International T. +41 (0)58 242 4500
E. david.fraser@pmi.com
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