PMI Releases New Integrated Report
Philip Morris International released its third annual Integrated Report, which includes an updated Statement of Purpose, a new environmental, social and governance (ESG) framework as well as detailed information about PMI’s strategic vision, performance, governance and value creation model. The content was informed by a formal sustainability materiality assessment conducted in 2021.
“Sustainability and business performance are fully interrelated and mutually reinforcing. 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. 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,” said Jacek Olczak, CEO of PMI, in a company press release.
The company’s 2021 sustainability materiality assessment helped identify the ESG issues on which PMI should prioritize and focus its resources. PMI subsequently redesigned its ESG framework, recognizing two distinct topic areas: those related to PMI’s products and those related to its business operations. This distinction forms the basis of PMI’s new approach to sustainability, which consists of eight clear impact-driven strategies that aim to address its most material ESG topics. These eight strategies—four aimed to address the impact of PMI’s products and four aimed to address the company’s operational impact—are accompanied by a robust framework of nine governance-related factors.
“I’m proud to be able to say that our executive compensation program now reflects our commitment to put sustainability at the core of our corporate strategy,” said Emmanuel Babeau, chief financial officer at PMI. “PMI’s Sustainability Index aligns us even further with the interests of shareholders and other stakeholders, forming a strong link between our executive compensation practices and the company’s short-[term] and long-term ESG performance.”