PMI's 2021 Integrated Report introduces new sustainability strategy to advance smoke-free and ESG goals

Published on: 17 May 2022
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The report describes PMI's progress toward achieving its sustainability goals, providing stakeholders with a comprehensive update as the company works to fulfill its mission.

Philip Morris International (PMI) released its third annual Integrated Report, highlighting its 2021 performance and redesigned sustainability strategy.

The report includes a new ESG framework, strategy, and PMI's aspirations, performance, governance, and value-creation model. The 2021 assessment informed the content.

“Sustainability and business performance are fully interrelated and mutually reinforcing,”

said Jacek Olczak, Chief Executive Officer of PMI.

“Our actions—grounded in data, science, and facts—speak louder than words. PMI is committed to serving as an agent of change and advocate of positive values. We understand that our business must become a provider of effective alternatives to continued smoking for adult smokers who don’t quit,”

he added.

“To achieve this, we are positioning ourselves at the forefront of consumer-centricity, technology, science, and innovation. With an eye to the long-term, we are also expanding our business into areas beyond tobacco and nicotine, such as wellness and healthcare.” 

PMI has expanded its social, human, intellectual, and manufactured capital, allowing it to be more ambitious. Its long-term goal has shifted from doing less harm to having a net positive impact on society.

This includes becoming a lifestyle, wellness, and healthcare company and achieving a smoke-free future.

PMI's 2021 sustainability materiality assessment helped prioritize ESG issues.

PMI redesigned its ESG framework to recognize two distinct topic areas: products and operations.

This distinction forms the basis of PMI's new sustainability approach, which consists of eight impact-driven strategies to address ESG topics.

Four product-focused and four business-operation-focused strategies are accompanied by nine governance-related factors.

PMI's 2025 Roadmap has 11 goals directly linked to these eight strategies, explaining the social and environmental impacts PMI aims to achieve.

PMI has introduced 19 KPIs to transparently show how the company defines success and evaluates progress. PMI's progress will be measurable and verifiable.

19 KPIs make up the company's new Sustainability Index, which links 30% of long-term compensation to ESG performance.

PMI's CFO, Emmanuel Babeau, said the program reflects the company's commitment to sustainability.

"PMI's Sustainability Index aligns us with shareholders and other stakeholders, forming a strong link between executive compensation and short- and long-term ESG performance."

“The 2021 Integrated Report aims to address demands for more robust, comparable, and reliable information on our ESG risks and performance, including data related to our company’s transformation, offering our stakeholders visibility into the future we are working toward,”

said Jennifer Motles, PMI’s Chief Sustainability Officer.

“2021 was a year full of achievements, but challenges remain. As we continue to transform, learn, and discover better ways to develop solutions that have meaningful impact, we hope our transparency and willingness to engage will spark dialogue with those who can help accelerate the pace of change.” 

The preparation of the 2021 Integrated Report considers guidance from sustainability reporting standards and frameworks, including the Global Reporting Initiative (GRI), UN Global Compact (UNGC), UN Sustainable Development Goals, The Value Reporting Foundation (VRF), including its SASB Standards, Integrated Thinking Principles, and Integrated Reporting Framework, and the Task Force on Climate-related Financial Disclosures (TCFD).

Source: PMI news

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