Following the introduction of PMI’s Sustainability Index, Philip Morris International made its ESG KPI Protocol publicly available. This document describes how the Sustainability Index will measure PMI’s progress toward reaching the goals outlined in its 2025 Roadmap and provides details about the 19 metrics that comprise PMI’s Sustainability Index. This announcement follows the release of PMI’s Integrated Report 2021, which includes details of the company’s Sustainability Index and the 2022 Proxy Statement, which provides details on how long-term executive compensation is linked to the company’s 2025 Roadmap through the Sustainability Index.
The ESG KPI Protocol is a separate, dedicated explanation of the Sustainability Index’s mechanics. It includes the definition, methodology and scope of each of the Sustainability Index’s KPIs to provide measurable, verifiable, consistent and accurate reporting on progress.
Through publication of its ESG KPI Protocol, PMI aims to provide further transparency on the key metrics used to measure how the company is progressing toward achieving its purpose and creating value for shareholders and other stakeholders. Further, the ESG KPI Protocol establishes a framework, which is specific to the company, and clearly defines KPIs that can provide the organization with a method for making the connection between the company’s purpose, strategic direction, financial performance and environmental and social considerations.
“As sustainability matures and gains importance inside and outside our company, the question of how to measure ESG performance is something many continue to grapple with. Accordingly, we developed a clear process for establishing concrete definitions, documentation and controls for sustainability with the aim of standardizing how we measure ESG performance,” said Jennifer Motles, chief sustainability officer, in a statement.
Additionally, PMI published its 2021 ESG Highlights—a data-driven document based on the company’s 2021 Integrated Report and tailored to complement investor relations materials. It aims to further strengthen investor engagement and understanding of the relevance and robustness of PMI’s sustainability strategy and transformation.