Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Approximately 5,000 tons CO2e annually through MACC projects.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Environmental and Health & Safety data verification statement

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Product health impact
• Climate
• Business integrity
• Human capital development
• Diversity and inclusion
• Economic contribution
• Materials and product eco-design
• Water
• Labor standards
• Post-consumer waste
• Health and safety at work
• Socioeconomic well-being of tobacco-farming communities
• Operational discharge
• Privacy
• Employee well-being
• Stakeholder engagement
• Innovation in wellness and healthcare

Environmental Achievements

• Partnership between Philip Morris Mexico and Ecofilter, including the opening of the first factory in Latin America to recycle cigarette butts.
• Philip Morris FTC’s factory in Batangas became the first factory in the Philippines to obtain Alliance for Water Stewardship certification.

Social Achievements

• Cross-industry human rights impact assessment conducted in Turkey.
• Improved youth access prevention (YAP) programs in indirect retail channels.

Governance Achievements

• PMI’s Board of Directors enhanced the company’s compensation practices, explicitly linking long-term executive compensation to ESG performance.
• Published Business Transformation–Linked Financing Framework, integrating the company’s smoke-free transformation into its financing strategy.

Climate Goals & Targets

Environmental Challenges

• Health impact of cigarette smoking
• Transforming the company's entire value chain and the way it engages with society.

Mitigation Strategies

• Developing alternatives to cigarettes that are scientifically substantiated to be a better choice for adult smokers than continued smoking.
• Transforming every step of PMI’s value chain to serve the company’s purpose.
• Changing the way PMI engages with external stakeholders.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Alternatives to cigarettes

Environmental Metrics

ESG Focus Areas

• Product health impact
• Sales, marketing, and consumer communications
• Innovation in wellness and healthcare
• Climate
• Water
• Biodiversity
• Diversity and inclusion
• Socioeconomic well-being of tobacco-farming communities
• Human capital development
• Business integrity
• Respect for human rights
• Sustainable supply chain management
• Operational discharge
• Animal welfare
• Labor standards
• Health and safety at work
• Employee well-being
• Philanthropy
• Stakeholder engagement
• Data privacy
• Fair fiscal practices

Environmental Achievements

• Triple A Score from CDP for climate, forest, and water security for the third consecutive year
• 55% of tobacco purchased at no risk of net deforestation of managed natural forest and no conversion of natural ecosystems
• 86% of total shipment volume covered by youth access prevention programs in indirect retail channels
• 8.5% Recycling rate of IQOS devices returned to our centralized recycling hubs

Social Achievements

• 40.7% of management positions held by women, exceeding our 2022 target of 40%
• 157 Cumulative number of human rights impact assessments conducted since 2018, with findings addressed
• 80% of PMI employees who have access to structured lifelong learning offers
• Annual net revenue from wellness and healthcare products: USD 0.3 billion

Governance Achievements

• Executive compensation explicitly linked to ESG performance through PMI’s Sustainability Index

Climate Goals & Targets

Environmental Challenges

• Climate change presents an increasing range of risks to all of PMI’s operations
• Transforming the company's entire value chain and the way it engages with society poses challenges

Mitigation Strategies

• Committed to decarbonizing direct and indirect operations—in line with the Paris Climate Agreement
• Actively helping all those impacted (in direct and indirect operations) to best manage the transition
• Working together with various segments of society to create a paradigm shift in which cigarettes become obsolete

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ensure all contracted farmers make a living income, and partner with our direct suppliers to promote a living wage for their workers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Smoke-free products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Health impacts of products
• Smoke-free alternatives
• Responsible marketing and sales
• Waste reduction
• Empowered and inclusive workplace
• Supply chain quality of life
• Decarbonizing operations and value chain
• Preservation of nature and biodiversity

Environmental Achievements

• 18 factories & 11 markets declared carbon neutral
• 76% of shipment volume covered by markets with anti-littering programs for combustible cigarettes
• 17.6% of shipment volume covered by markets with smoke-free consumables take-back programs
• 94% proportion of tobacco purchased at no risk of net deforestation of managed natural forest and no conversion of natural ecosystems
• 8.14 million cubic meters of water optimized in tobacco-growing areas (cumulative since 2019)

Social Achievements

• Approximately 33 million estimated users of PMI’s smoke-free products
• 41.8% of management positions held by women
• 8 human rights impact assessments conducted since 2018 in highest-risk countries
• 0.1% prevalence of child labor among contracted farmers supplying tobacco to PMI
• 98% of total shipment volume covered by youth access prevention programs in indirect retail channels

Governance Achievements

• Achievement of CDP’s Triple A rating for the fourth consecutive year
• Inclusion in CDP’s Supplier Engagement Leader Board for the seventh year
• Inclusion in Dow Jones Sustainability World Index for the first time and the Dow Jones Sustainability North America Composite Index for the fourth consecutive year
• awarded “Prime” status in the ISS ESG Corporate Rating
• Validation from the Science Based Targets initiative (SBTi) on its Forest, Land, and Agriculture (FLAG) emissions reduction targets
• Named an Early Adopter for having committed to advancing the adoption of the Taskforce on Nature-related Financial Disclosures (TNFD) recommendations

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UN Global Compact, UN Sustainable Development Goals, IFRS Foundation—including use of its SASB Standards, Integrated Thinking Principles, and Integrated Reporting Framework

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• IQOS and ZYN brands

Awards & Recognition

• Not disclosed