PMI’s ESG Performance Recogn

PMI Named in Dow Jones Sustainability North American Index; the Company Continues to Demonstrate Progress Toward Delivering a Smoke-Free World

LAUSANNE, Switzerland -- (BUSINESS WIRE) --

Philip Morris International Inc. (PMI) (NYSE: PM) has been included for the first time in the Dow Jones Sustainability Index (DJSI) North America, recognizing its exemplary sustainability performance. Moreover, for the third year in a row, PMI leads the industry in DJSI’s innovation management category, which assesses companies’ research and development spending, product innovations, and portfolio of tobacco alternatives and reduced-risk products. The DJSI North America Index includes the Dow Jones Indices’ top 20 percent of ESG performers across 61 industries—those that exhibit best-in-class performance against DJSI’s environmental, social, and governance (ESG) metrics.

“Integrating ESG into our business is at the core of our smoke-free strategy,” said PMI Chief Sustainability Officer Jennifer Motles. “Indeed, for us to be a truly sustainable company we must continue to relentlessly address the health impacts of our products by focusing our efforts and resources on phasing out cigarettes as quickly as possible. As the only cigarette manufacturer committed to removing cigarettes from our business, we are proud to be part of the Dow Jones Sustainability North America Index, confirming the significant progress we’re making to transform our business.”

To make its transformation measurable and transparent, PMI reports regularly on its progress toward achieving its purpose—first announced in 2016—to deliver a smoke-free future by focusing resources on developing, scientifically substantiating, and responsibly commercializing smoke-free products that are less harmful than smoking, with the aim of completely replacing cigarettes with smoke-free alternatives for those adults who would otherwise continue to smoke as soon as possible. In 2016 PMI introduced a set of bespoke key performance indicators (KPIs), Business Transformation Metrics, to clearly showcase the pace and scale of the company’s transformation. These allow stakeholders to assess the actions, resource allocation, and outcomes achieved in PMI’s rapid advancement toward a smoke-free future. In 2019, the company continued to expand these metrics, to 25 indicators, such as the availability of PMI’s smoke-free products worldwide, including in non-OECD countries.

To further demonstrate PMI’s clarity of purpose, in March 2020 the company’s Board of Directors issued its Statement of Purpose, published in PMI’s Proxy Statement, reaffirming its commitment to delivering a smoke-free future. In June 2020 PMI released its first Integrated Report, helping stakeholders and investors make the connection between product-focused sustainability initiatives, which form the core of PMI’s ESG strategy, and financial performance over time. Informed by PMI’s sustainability materiality assessment, the report describes the company’s performance in addressing its most pressing ESG issues and enables company stakeholders to better evaluate PMI’s progress in achieving its purpose of delivering a smoke-free future. In October, PMI reinforced its commitment to addressing ESG issues by integrating the Sustainability team within the company’s Finance organization.

“We congratulate Philip Morris International for being included in the DJSI North America Index,” said Manjit Jus, global head of ESG Research and Data, S&P Global. “A DJSI distinction is a reflection of being a sustainability leader in your industry. With a record number of companies participating in the 2020 Corporate Sustainability Assessment and more stringent rules for inclusion this year, this sets your company apart and rewards your continued commitment to people and planet.”

Additional information on the company’s sustainability efforts and ESG performance are available at PMI.com/Sustainability.

Notes: The term “materiality,” “material,” and similar terms, when used in the context of economic, environmental, and social topics, are defined in the referenced sustainability standards, and are not meant to correspond to the concept of materiality under the U.S. securities laws and/or disclosures required by the U.S. Securities and Exchange Commission.

Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International (PMI) is leading a transformation in the tobacco industry to create a smoke-free future and ultimately replace cigarettes with smoke-free products to the benefit of adults who would otherwise continue to smoke, society, the company, and its shareholders. PMI is a leading international tobacco company engaged in the manufacture and sale of cigarettes, as well as smoke-free products and associated electronic devices and accessories, and other nicotine-containing products in markets outside the U.S. In addition, PMI ships a version of its IQOS Platform 1 device and its consumables to Altria Group, Inc. for sale under license in the U.S., where the U.S. Food and Drug Administration (FDA) has authorized their marketing as a modified risk tobacco product (MRTP), finding that an exposure modification order for these products is appropriate to promote the public health. PMI is building a future on a new category of smoke-free products that, while not risk-free, are a much better choice than continuing to smoke. Through multidisciplinary capabilities in product development, state-of-the-art facilities, and scientific substantiation, PMI aims to ensure that its smoke-free products meet adult consumer preferences and rigorous regulatory requirements. PMI’s smoke-free product portfolio includes heat-not-burn and nicotine-containing vapor products. As of September 30, 2020, PMI estimates that approximately 11.7 million adult smokers around the world have already stopped smoking and switched to PMI’s heat-not-burn product, available for sale in 61 markets in key cities or nationwide under the IQOS brand. For more information, please visit www.pmi.com and www.pmiscience.com.

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