Philip Morris International (PMI) (NYSE: PM) today released its fourth annual comprehensive report.
The report is based on a formal sustainability importance assessment and aims to give an objective picture of the company’s business model, governance and management, strategy and performance.
Jacek Olczak, CEO of PMI, said: Despite many trials, 2022 was an extraordinary year that brought our employees closer together and saw us make measurable progress towards our goals. We are well on our way to becoming a majority smoke-free company by 2025 and eventually phasing out cigarettes. You can check xros 2 vs xros 3 here. While a transformation of this scale and complexity cannot happen overnight, we are committed to making it happen as soon as possible. Through constructive engagement, we will accelerate the pace of meaningful and impactful change and complete our transformation once and for all.
PMI’s latest comprehensive report conveys the company’s progress towards its goals — the company’s Statement of objectives clarifies PMI’s goal to achieve a smoke-free future that is less harmful than smoking by focusing its resources on the development, by the way, you can also check xros 3 vs xros 2 here. scientifically proven and responsible commercialization of smoke-free products, with the aim of completely replacing cigarettes as soon as possible, And grow into a broader lifestyle, consumer health and healthcare company in the long term.
Based on its ESG framework, PMI has developed eight strategies that target companies’ most pressing areas of impact.
In conjunction with the eight strategies, PMI has set 11 targets that form the basis of its roadmap to 2025, as well as 19 key performance indicators (KPIs) to measure progress through its Sustainability Index. Each KPI is also aligned with one of two drivers: product sustainability (11 KPIs) or operational sustainability (8 KPIs).
“Non-financial information is increasingly used by external stakeholders to evaluate a company’s performance and compare it to others, including the performance of the financial community in their analysis and investment decisions. It is critical to the integrity of PMI reporting that our publicly disclosed information and data accurately reflect our company’s progress following clear calculations.” Emmanuel Babeau, PMI’s chief financial officer, explains. Vaporesso vape vaporesso xros 2 vs xros 3 you can check here.
Last year, PMI also released its first ESG KPI agreement, which includes the definition, methodology and scope of each Sustainability Index KPI to provide measurable, verifiable, consistent and accurate progress reports. In conjunction with its latest synthesis report, the company has also released an updated agreement that specifically addresses efforts to make these KPIs more robust in 2022.
Through 2022, much of PMI’s progress on its sustainability aspirations continues apace as it tries to address the impact of its products (what it produces) and operations (how it produces it).
The company continues to transform and achieve its goals in terms of the social impact of its products; In addition, it continues to implement youth exposure prevention programmes in its direct and indirect retail channels. Given the importance of reducing post-consumer waste, it has made progress in implementing smokeless equipment and consumable recycling programmes, as well as improving its electronic equipment maintenance capacity.
Product influence
Social aspects:
24.9 million: Estimated total adult users of PMI smokeless products (2021:21.7 million)
32.1% : Net revenue from smokeless products (2021:29.5%)
73: Markets where PMI smokeless products can be sold, 42% of which are in low – and middle-income countries (2021:71, 42%)
$10.7 billion: Cumulative investment in smokeless products since 2008 (2021: $9.2 billion)
91% : Of total shipments covered by youth access prevention programmes in indirect retail channels (2021:91%)
$300 million: Annual net revenue of health and wellness products (2021: $100 million)
Environmental aspects:
86% : IQOS equipment recovery rate returned to the central collection Center (weighted average percentage per collection unit) (2021:86%)
68% : Shipments covered by markets that have litter-prevention plans for combustible cigarettes
8.5% : Shipments from markets covered by the smokeless consumer goods Recycling program
On the social side of PMI’s operations, the company has expanded PMI employees’ access to structured lifelong learning opportunities, issued an enhanced commitment to human rights, and completed its sixth and seventh human rights impact assessments in Brazil and Malaysia. On the environmental front, it continues to decarbonize its direct operations, with validation of its science-based goal of achieving net zero greenhouse gas emissions in its value chain by 2040. In conjunction with the United Nations Conference on Biological Diversity (COP15) in December 2022, the company is announcing new long-term biodiversity and water goals and strategies, in line with the post-2020 biodiversity framework adopted by the Parties to the Convention.
Operational impact
Social aspects:
40.7% of management positions are held by women, exceeding our 2022 target of 40% (2021:39.7%)
Seven human rights impact assessments conducted in highest-risk countries since 2018 (2021:5)
Environmental aspects:
55% Proportion of tobacco purchased without managing the risk of net deforestation of natural forests and without natural ecosystem transformation (2021:37%)
For the third year in A row, CDP received a triple-A score for climate, forest and water security
As a strong complement to the content and data contained in PMI’s 2022 comprehensive report, the company has developed 12 case studies and market stories that demonstrate impact and highlight how PMI affiliates around the world are driving sustainability. All case studies and market stories are available online ina dedicated section at pmi.com/sustainability.
We recognize the need to continue to build legitimacy and trust among our stakeholders, who are the foundation of our company’s goals and can accelerate the pace at which we reach them, said Jennifer Motles, PMI’s chief Sustainability Officer. Our latest comprehensive report is designed to meet their demand for more detailed and comparable information on our risks and performance. As we continue to learn, transform, and discover better ways to develop solutions that have a meaningful impact, we hope that our transparency and willingness to engage will inspire dialogue with those who can help accelerate the pace of our change.
The PMI 2022 Synthesis Report was prepared taking into account the guidance of international standards and frameworks, These include some recommendations from the Global Reporting Initiative (GRI), the United Nations Global Compact (UNGC), the United Nations Sustainable Development Goals, the International Financial Reporting Standards Foundation – including the use of its SASB standards, Integrated Thinking Principles and Integrated Reporting Framework – and the Working Group on Climate-Related Financial Disclosure (TCFD).
Philip Morris International: Building a Smoke-free Future
Philip Morris International (PMI) is a leading international tobacco company committed to building a smoke-free future and developing its product portfolio over the long term to include products outside the tobacco and nicotine industries. The Company’s current product portfolio consists primarily of cigarettes and smokeless products. Since 2008, PMI has invested more than $10.5 billion to develop, scientifically proven and commercialize innovative smokeless products for adults who would otherwise continue to smoke, with the goal of ending the sale of cigarettes altogether. This includes building world-class scientific evaluation capabilities, particularly in the areas of preclinical systems toxicology, clinical and behavioural research, and post-marketing research. November 2022, IQOS and ZYN brands. The U.S. Food and Drug Administration (FDA) has licensed PMI’s IQOS Platform 1 devices and consumables and Swedish MATch’s General snus as Modified Risk Tobacco Products (MRTP). PMI smokeless products are available in 73 markets as of December 31, 2022, and PMI estimates that approximately 17.8 million adults worldwide have switched to IQOS and stopped smoking. Smokeless products accounted for about 32 percent of PMI’s total annual net revenue in 2022. With a solid foundation and a wealth of expertise in the life sciences sector, PMI announced its ambition in February 2021 to enter the health and healthcare sector, and through its subsidiary Vectura Fertin Pharma aims to improve lives by providing a seamless health experience.