Our performance in 2019 at a glance

The ESG metrics on this page are explained in the relevant sections of our Integrated Report 2019 and in this online supplement. Find out more about this online supplement and please also refer to the glossary

Our Integrated Report and online supplement cover the 2019 calendar year, but the aspirations, goals and forward-looking plans they contain may be impacted by COVID-19 and its effects on our business, which are currently unknown. Aspirational targets and goals do not constitute financial projections, and achievement of future results is subject to risks, uncertainties and inaccurate assumptions, as outlined in our forward-looking and cautionary statements

 

Pillar 1 - Performance - Innovating for better products

Download Product health impacts performance
2016 2017 2018 2019
R&D expenditure (smoke-free/total)1 72% 74% 92% 98%
Total R&D expenditure (in millions USD) 429 453 383 465
Number of R&D positions (FTEs)2 n/a n/a 764 942
Patents granted relating to smoke-free products (cumulative) 1,800 2,900 4,600 5,800
Patents granted in IP5 jurisdictions relating to smoke-free products (cumulative)3 170 300 480 740
Number of studies completed by PMI on smoke-free products (cumulative, since 2015)

Toxicological assessment

36 57 82 109

Clinical assessment (short-term, focused on biomarkers)

11 12 19 19

Perception and behavior

7 7 9 9

1 Smoke-free products include heated tobacco units and e-cigarettes. Total products include smoke-free products, cigarettes, and other combustible products.

2 R&D positions: include scientists, engineers, technicians, and support staff. Comparable data for years prior to 2018 are not available, as the scope of R&D positions changed following company organizational changes.

3 Includes published international(PCT) patent applications. IP5 jurisdictions include Europe (patent applications published and patents granted by the European Patent Office), China, South Korea, Japan, and the U.S.

 

 

Download access to smoke-free products performance
2016 2017 2018 2019 2025 aspirations 2
Number of factories producing smoke-free products out of total number of factories3 3 out of48 4 out of46 8 out of44 8 out of 38
Total SKU count – cigarettes4 4,421 4,201 3,968 3,799
Total SKU count – heated tobacco units 62 145 253 414
Number of markets where PMI smoke-free products are available for purchase 20 38 44 52
Proportion of markets where PMI smoke-free products are available, which are outside the OECD5 32% 43% 47% 47%
Number of IQOS stores 26 63 81 199
Number of retailers that sell PMI smoke-free product consumables (in thousands) 90 292 488 679
Commercial expenditure (smoke-free/total) 15% 39% 60% 71%
Net revenues (smoke-free/total)6 2.7% 12.7% 13.8% 18.7% 38% - 42%
Number of markets where net revenues from smoke-free products exceed 10% of total net revenues 1 5 19 31
Number of markets where net revenues from smoke-free products exceed 50% of total net revenues 0 1 3 4
Smoke-free product shipment volume (billion units) 7.7 36 42 60 >250
Combustible product shipment volume (billion units) 845 791 767 732 <550
Smoke-free product shipment ratio (smoke-free/total)7 0.9% 4.4% 5.1% 7.6% >30%
Total users of PMI smoke-free products (in millions)8 2.1 6.9 9.6 13.6
Estimated users who have stopped smoking and switched to PMI smoke-free products – non-OECD (in millions)8 0.0 0.2 1.1 3.0 >20
Estimated users who have stopped smoking and switched to PMI smoke-free products – worldwide (in millions)8 1.5 4.7 6.6 9.7 >40

1 Smoke-free products: include heated tobacco units and e-cigarettes.Total products: include smoke-free products, cigarettes, and other combustible products.

2 Aspirations: assuming constant PMI marketshare. We do not set aspirational targets for commercial expenditure, but expect ratio to continue increasing to enable the stated outcome in terms of shipment volume. Note: Aspirational targets and goals do not constitute financial projections.

3 Previous years’ data were restated to account for our second manufacturing facility in Italy, Bologna, that started producing heated tobacco units in 2016.

4 “SKU” stands for stock keeping unit.

5 Excluding PMI Duty Free

6 Excluding excise taxes. Forfuture periods, at today’s pricing and excise tax assumptions.

7 The smoke-free product shipment ratio is compiled based on millions of units.

8 See glossary on page 188.

Pillar 2 - Operating with excellence

Download Responsible marketing and sales practices
2017 2018 2019
Total number of compliance training sessions conducted on PMI’s Marketing Code (employees/third parties) 37,903 23,438 14,500 (49%/51%)
Number of violations of the Marketing Code or Good Conversion Practices (GCP) resulting in substantiated cases of misconduct 2 8 42

 

 

Download Sustainable supply chain management performance
2017 2018 2019 Goal
Total number of suppliers1 50,000 >36,000 >33,200
Total procurement spend (in billion USD)2 n/a 10 9.9
Number of critical suppliers3 n/a n/a 95
Critical suppliers, as a proportion of total procurement spend n/a n/a 35%
Critical suppliers’ procurement spend assessed in PMI’s supplier due diligence platform (STEP)4 n/a n/a 84% 90% by 2020
Critical suppliers of direct materials assessed in STEP, expressed as a proportion of procurement spend on critical suppliers of direct materials n/a n/a 73%
Critical suppliers of electronics assessed in STEP, expressed as a proportion of procurement spend on critical suppliers of electronics n/a n/a 100%
Number of tobacco farmers contracted by PMI and PMI tobacco suppliers >350,000 >350,000 335,000
Number of third-party tobacco suppliers with whom PMI has a direct contractual relationship5 15 15 13
Number of PMI leaf operations that contract tobacco farmers directly 9 8 8
Number of field technicians providing support to contracted farmers and monitoring the implementation of PMI’s Good Agricultural Practices (GAP) and Agricultural Labor Practices (ALP) 2,790 2,610 2,875
Proportion of tobacco purchased through direct contracts by PMI and PMI tobacco suppliers 90% 93% 96% >90% (ongoing)
Proportion of tobacco purchased for which labor practices have been systematically monitored 77% 88% 92%
Proportion of tobacco purchased assessed by AB Sustain (cumulative, since 2016)6 55% 100% n/a
Number of tobacco supplier locations (countries) assessed by Control Union on ALP topics 6 3 3
Cumulative number of tobacco supplier locations (countries) assessed by Control Union since 2013 on ALP topics7 19 21 22 24 by 2020

1 Suppliers: refers to tier1 suppliers, parent companies.

2 Procurement spend excludes tobacco leaf sourcing.

3 Suppliers’ criticality is evaluated taking into account spend segmentation and nature of component, aswell as supply flexibility (single source/not easily substitutable) as relevant. 2019 figure includes tier1 suppliers of direct materials and electronics managed by PMI’s central procurement team, and excludes tobacco leaf sourcing.

4 We started to formally onboard critical suppliers into our supplier due diligence platform (STEP) in July 2019.

5 Data refers to parent companies

6 In 2019, the industry did not run collective assessments with AB Sustain as it focused on the development of a new Sustainable Tobacco Production (STP) 2.0 program, but PMI continued to assess conformity to the GAP standards through annual self-assessments completed by all our suppliers. Between 2016 and 2018, AB Sustain had conducted formal assessments in 100% of our sourcing countries.

7 Cumulative number since 2013 excludes locations covered more than once by Control Union assessments over this period

 

 

Download respect for human rights performance
2017 2018 2019 2025
Cumulative number of human rights impact assessments conducted 0 1 2 10

 

 

Download responsible & transparent R&D performance
2017 2018 2019
Cumulative number of scientific publications by PMI since 2008 <200 340 365
Cumulative number of institutions which have taken part in sbv IMPROVER since 2011 400 450 500
Cumulative number of countries where institutions which have taken part in sbv IMPROVER since 2011 are located 60 63 65
Cumulative number of peer-reviewed publications issued as a result of sbv IMPROVER challenges since 20111 16 16 16
Cumulative number of studies published on INTERVALS platform since 2018 n/a 9 40
Cumulative number of protocols published on INTERVALS platform since 2018 n/a 57 103
Cumulative number of data sets published on INTERVALS platform since 2018 n/a 144 354

1 Peer-reviewed publications issued as a result of sbv IMPROVER challenges conducted in the past three years are currently under preparation or validation, and are expected to be published in 2020

 

 

Download business integrity performance
2017 2018 2019
Proportion of employees participating in training sessions pertaining to PMI’s Guidebook for Success 93.5% 86.9% 86.6%
Total number of compliance training sessions on PMI’s Guidebook for Success completed (employees/third parties) 189,696 (75%/25%) 193,063 (82%/18%) 253,763 (88%/12%)
Total number of reports received, involving compliance allegations and other concerns 714 872 977
Number of closed cases involving compliance allegations (number of unsubstantiated cases/number of substantiated cases) 505 (188/317) 582 (246/338) 653 (284/369)
Proportion of substantiated claims, out of all closed cases involving compliance allegations 62.8% 57.7% 56.5%

 

 

Download illicit tobacco trade prevention performance
2017 2018 2019 Goal
Coverage for tracking and tracing – master case level2 100% 100% 100% 100%
Tracking and tracing – proportion of packs sold with unique code applied3 75% 85% 100% 100%
Additional Framework Cooperation Agreements signed with law enforcement agencies/governments in a given year – number of countries 10 5 2 +5 by 2021 +12 by 2025
Regional studies and country analysis to improve awareness of illicit trade – proportion of global consumption covered4 25% 27% 20% 35% by 2020
Number of law enforcement officers trained on how to authenticate PMI products5 717 500 6,617 500 by 2021 + 2,500 by 2025
Number of countries with law enforcement agencies trained on how to authenticate PMI products 15 10 23 10 per year
Anti-Counterfeiting Cooperation Agreements signed with our suppliers 100% by 2025
Number of PMI IMPACT projects selected per funding round6 31 29 0 90 by 2021
Number of countries from which PMI IMPACT projects were selected per funding round6 16 22 0 60 by 2021
Number of applications (project proposals) received by PMI IMPACT per funding round6 157 0 0 540 by 2021
Number of countries from which applications were received by PMI IMPACT per funding round6 56 0 0 140 by 2021
PMI IMPACT grants allocated in USD million7 28 20 0 100

1 Data cover PMI combustible tobacco products and smoke-free product consumables and devices.

2 Full coverage equates to 95 percent tracking and tracing in our supply chain (excluding kretek business). Five percent of master cases are not covered; these are destined to countries that are not identified as a source of potential diversion or where PMI sells to a single customer in the country.

3 Excludes kretek business

4 In 2019, we did not reach our target of 35 percent, as one study was not carried out.

5 The number of training sessions delivered each year depends on specific needs and requests raised locally by law enforcement agencies.The significant increase in 2019 was mainly driven by additional training sessions delivered in Latin America & Canada to better tackle the nature of illicit trade in the region, where smuggled “Illicit White” cigarettes are predominant whereas counterfeiting of PMI cigarettes remains low within the illicit trade of cigarettes.

6 There were no funding rounds of PMI IMPACT in 2018-2019. Data for 2017 and 2018 were restated: one project in 2017 was implemented without PMI IMPACT funding, and two projects in 2018 were not implemented. Other data related to PMI IMPACT were restated accordingly.

7 PMI pledged USD 100 million to PMI IMPACT. Goals related to PMI IMPACT are stated for the period 2016-2021.

 

 

Pillar 3 - Caring for the people we work with

Download socio-economic well-being of tobacco-farming communities performance
2017 2018 2019 Goal
Number of tobacco farmers contracted by PMI and PMI tobacco suppliers >350,000 >350,000 335,000
Number of countries where farmers contracted by PMI and PMI tobacco suppliers are located 28 27 24
Number of farmers with whom PMI has direct contracts 23,000 21,000 16,500
Number of farmers who have direct contracts with PMI tobacco suppliers 332,000 >329,000 318,500
Number of third-party tobacco suppliers with whom PMI has a direct contractual relationship2 15 15 13
Number of PMI leaf operations that contract tobacco farmers directly 9 8 8
Number of field technicians providing support to contracted farmers and monitoring the implementation of PMI’s Good Agricultural Practices (GAP) and Agricultural Labor Practices (ALP) 2,790 2,610 2,875
Proportion of tobacco purchased for which labor practices have been systematically monitored 77% 88% 92%
Number of terminated contracts due to ALP violations (per crop season) 36 50 641
Total number of ALP prompt actions recorded by field technicians 12,749 18,543 14,440
Proportion of ALP prompt actions recorded by field technicians:

safe working environment

63% 74% 73%

hazardous work performed by children

35% 25% 19%

other

2% 1% 8%
Total number of ALP prompt actions resolved 10,154 13,687 8,137
Number of ALP prompt actions recorded by field technicians relating to safe working environment 8,087 13,780 10,519
Number of ALP prompt actions recorded by field technicians relating to non-payment of minimum wage to farmworkers3 n/a n/a 1,158
Number of ALP prompt actions recorded by field technicians relating to child labor4 4,417 4,587 2,712
Proportion of farms monitored found with child labor incidents4 1.2% 1.3% 0.8%
Proportion of ALP prompt actions recorded by field technicians relating to child labor that were resolved4 67% 89% 88%
Proportion of tobacco farmworkers provided with safe and adequate accommodation5 n/a n/a 80% 100% by 2020
Proportion of farmers and farmworkers having access to personal protective equipment6 n/a n/a 99% 100% by 2020

1 The farm-level data related to our tobacco supply chain reported in this report cover 22 countries we source from. It excludes Ecuador and Lebanon.

2 Data refers to parent companies.

3 We introduced this category of prompt actions in 2019.

4 Our monitoring and reporting of child labor refer to situations of hazardous work performed by children below 18 years old.

5 We introduced this category of prompt actions in 2019. Scope is limited to farmers providing accommodation to workers (approximately 6% of the total farmer base)..

6 We introduced this category of prompt actions in 2019.

 

 

Download health, safety, and well-being at work performance
2017 2018 2019 Goal
Lost time incident (LTI) rate per 200,000 hours worked – PMI and contracted employees1 0.10 0.13 0.12 <0.10
LTI rate per 200,000 hours worked – PMI employees 0.10 0.13 0.12
LTI rate per 200,000 hours worked – contracted employees 0.07 0.08 0.10
Total recordable incidents rate (TRIR) per 200,000 hours worked – PMI and contracted employees 0.22 0.22 0.20 <0.30
TRIR per 200,000 hours worked – PMI employees 0.22 0.22 0.20
TRIR per 200,000 hours worked – contracted employees 0.20 0.30 0.17
Number of fatalities – PMI and contracted employees 2 2 1 0
Number of fatalities – contractors2 1 1 0 0
Number of fatalities – members of the public3 9 3 10 0
Collision rate within PMI’s fleet of vehicles per year (collisions per million km driven) 1.01 0.91 0.87 <0.80 by 2022
Proportion of manufacturing facilities with OHSAS 18001 and ISO 14001 certification4 91% 97% 98% 100% by 2020
Occupational illness frequency rate (OIFR) per 200,000 hours worked – PMI and contracted employees 0.0027 0.0013 0
Number of markets with health and well-being committees 36 >40 55

1 We define a contracted employee as an employee who is under the direct supervision of PMI employees but employed by a temporary employment agency

2 We define a contractor as a person employed or working on behalf of a third-party company contracted by PMI, who remains under the direct supervision of their employer rather than PMI and are often involved in project-specific or outsourcing arrangements.

3 It is to our deep regret that we endured road traffic fatalities in 2019, including one PMI employee and 10 members of the public (read more on page 125).

4 Scope: manufacturing facilities producing more than three billion cigarette equivalents annually. The 2018 figure has been adjusted due to an internal reporting error.

 

 

download fair working conditions performance
2017 2018 2019
Number of PMI employees 80,591 77,435 73,542
Number of PMI full-time equivalent (FTE) positions n/a 77,039 71,795
Proportion of employees covered by Collective Labor Agreements 67% 65% 63%
Total number of Collective Labor Agreements 80 81 80
Total number of countries with Collective Labor Agreements 35 35 35

 

 

PMI's workforce at year-end 2019

download Number of employees by employment contract (permanent and temporary) by gender performance
Women employed on a permanent contract 29,137
Women employed on a temporary contract 1,494
Men employed on a permanent contract 40,965
Men employed on a temporary contract 1,946

 

 

Download Number of employees by employment contract (permanent and temporary), by region performance
Employees on a permanent contract in European Union region 18,167
Employees on a temporary contract in European Union region 2,272
Employees on a permanent contract in Middle East & Africa region, including PMI Duty Free 3,239
Employees on a temporary contract in Middle East & Africa region, including PMI Duty Free 186
Employees on a permanent contract in South & Southeast Asia region 29,646
Employees on a temporary contract in South & Southeast Asia region 137
Employees on a permanent contract in Eastern Europe region 6,786
Employees on a temporary contract in Eastern Europe region 171
Employees on a permanent contract in East Asia & Australia region 4,365
Employees on a temporary contract in East Asia & Australia region 154
Employees on a permanent contract in Latin America & Canada region, and U.S. 7,899
Employees on a temporary contract in Latin America & Canada region, and U.S. 520

 

 

download Number of employees by employment type (full-time and part-time), by gender performance
Women employed on a full-time contract 30,028
Women employed on a part-time contract 603
Men employed on a full-time contract 42,667
Men employed on a part-time contract 244

 

All data as of December 31, 2019. Presentation of information and data aligns with guidance of GRI standard 102-8 (2016).

 

 

download Diverse and inclusive working environment performance
2017 2018 2019 Goal
Proportion of female employees 41.6% 42.1% 41.7%
Proportion of management positions held by women1 34.4% 35.1% 36.1% At least 40% by 2022
Proportion of female employees at different managerial levels:1

managers

36.1% 36.6% 37.5%

directors

27.9% 29.4% 31.2%

senior management

13.7% 15.2% 17.4%
Proportion of new hires in management positions that are women1 42.8% 40.6% 40.7% 50%
Proportion of new hires at junior levels that are women1 40.6% 40.4% 43.8% 50%
Proportion of promotions in management positions that are women1 37.4% 37.8% 37.4%
Number of women on PMI’s Company Management 2 (out of 20) 2 (out of 22) 2 (out of 25)
Proportion of women on PMI’s Company Management 10% 9% 8%
Number of women on PMI’s Board of Directors 2 (out of 13) 3 (out of 12) 3 (out of 12)
Proportion of women on PMI’s Board of Directors 15% 25% 25%
Proportion of employees at different age groups:

below30 n/a 18.6%

n/a 18.6% 17.3%

between 30 and 50

71.6% 72.0%

above 50 years old 9.8%

9.8% 10.7%
Number of nationalities among PMI’s employees n/a >100 126
Number of countries with affiliates with LGBTQ+ initiatives or networks n/a 25 27

1 We have expanded the scope of our gender diversity data to cover approximately 95% of PMI’s total workforce. Other related data and previous years’ data have been restated accordingly.

 

 

Download Talent attraction, retention, and employability performance
2017 2018 2019 Goal
Employee overall turnover rate1 9.37% 11.51% 14.10%
Women employee overall turnover rate 7.72% 10.80% 15.54%
Employee voluntary turnover rate 3.96% 4.12% 4.53%
Spend for learning per employee (in USD)2 n/a n/a 464
Proportion of employees covered by performance review3 77.3% 77.0% 79.4%
Employee Net Promoter Score4 n/a n/a +16 At least +30 by 2025

1 Our transformation journey as we mobilized to deliver our vision of a smoke-free future resulted in higher turnover in 2019. This, combined withour business strategy to close our skills gap, a number of planned restructures and closure of some factories, contributed to the increase observed.

2 2019 figure only covers external vendor spend.

3 Data cover approximately 75% of PMI’s total workforce.

4 In 2019, we conducted a global survey to which over 34,000 employees (close to half our total workforce) responded.We measured the engagement of our workforce using the employee Net Promoter Score (eNPS), following a methodology similar to that we use to measure consumer engagement. The score can range from -100 to +100. The 2019 Transformation survey will serve as a baseline through which to track employee engagement.

 

 

Download Community support performance
2017 2018 2019
Number of social contributions supported by PMI (charitable donations/community investments)1 275 280 170 (145/25)
Number of partner organizations supported by PMI’s social contributions1 242 239 147
Number of countries where projects supported by PMI’s social contributions were implemented 63 63 43
Number of direct beneficiaries of projects supported by PMI’s social contributions n/a >300,000 >467,000
Value of cash contributions (in millions USD) (charitable donations/community investments) 29.5 28.3 17.0 (14.8/2.2)
Approximate value of in-kind donations (in ’000 USD) 175 260 205
Approximate value of management costs of PMI’s social contributions (in ’000 USD)2 n/a n/a 650
Approximate total number of volunteer hours by PMI employees3 n/a 18,000 16,700
Approximate value of employee time spent on volunteering (in ’000 USD)3 n/a 500 430

1 The decline in value and number of social contributions in 2019 resulted from the decentralization of our policy approach and the elimination of the central budget that was previously allocated to the markets on a yearly basis. As part of our policy changes we also introduced a distinction between charitable donations and community investments. Our charitable donations are now funded and initiated by the markets while the community investments, focused on sustainability issues associated with our value chain, are now funded and managed by the business function leading the efforts to address the issue (e.g. child labor prevention programs in tobacco growing communities are now managed by our Leaf department). While these changes led to a reduction in both charitable donations and community investments in this first year, we do expect to see an increase in community investments in coming years.

2 This indicator was introduced in 2019

3 Data was initially collected in 2018 and covers volunteering during paid working hours. The decrease in 2019 is mainly driven by changes in Japan and Russia: PM Japan had a large volunteering event in 2018 that did not take place in 2019, and PM Russia conducted a higher number of activities outside of working hours (with the purpose of involving employees’ family). We are currently finalizing a PMI wide volunteering guideline which will be rolled out in 2020 and that we expect will significantly boost employee volunteering.

Pillar 4 - Protecting the environment

 

Download Climate protection protection
2010 baseline 2017 2018 2019 Goal Scope
CO2e scope 1 (metric tons) 443,186 388,384 408,162 397,210 PMI factories, offices, and fleet1
CO2e scope 2 (metric tons) 470,864 241,355 175,785 158,672 PMI factories and offices
CO2e scope 1+2 (metric tons) 914,050 629,739 583,947 555,882 Carbon neutrality by 2030 PMI factories, offices, and fleet
CO2e scope 1 from fleet (metric tons) 143,148 119,588 114,936 111,400 PMI fleet
CO2e emissions from vehicles (g CO2e per km driven) 296 226 221 222 PMI fleet
CO2e scope 3 (’000 metric tons)2 7,148 4,906 4,714 4,127 PMI value chain
CO2e scope 1+2+3 (’000 metric tons) 8,062 5,536 5,298 4,682 Carbon neutrality by 2050 PMI value chain
Carbon in-setting credits (metric tons) 0 0 0 PMI factories, offices, and fleet
Carbon off-setting certificates (metric tons)3 0 956 1,242 PMI factories, offices, and fleet
Number of carbon-neutral factories 0 0 1 All by 2030 PMI factories
CO2e scope 1+2+3 intensity (kg per million cigarettes equivalent)4 8,706 6,687 6,552 5,917 PMI value chain
CO2e scope 3 biogenic emissions (’000 metric tons) n/a 3,442 2,438 PMI value chain
CO2e scope 1+2 absolute reduction versus 2010 baseline5 31% 36% 39% 30% by 2020 40% by 2030 60% by 2040 PMI factories, offices, and fleet
CO2e scope 1+2+3 absolute reduction versus 2010 baseline5 31% 34% 42% 40% by 2030 PMI value chain
CO2e scope 1+2+3 intensity reduction versus 2010 baseline 22% 25% 32% 30% by 2020 PMI value chain
CO2e intensity reduction in tobacco curing versus 2010 baseline 38% 47% 61% 70% by 2020 PMI tobacco supply chain
Proportion of flue-cured tobacco purchased cured with renewable fuel sources (self-sufficient firewood and biomass adoption) 36% (29% + 7%) 46% (33% + 13%) 51% (36% + 15% 70% by 2020 PMI tobacco supply chain
Proportion of Virginia tobacco purchased cured with coal 20% 15% 16% 0% by 2020 PMI tobacco supply chain
Approximate total number of curing barns upgraded since 2014 (cumulative) 57,000 76,000 80,800 80,000 by 2020 PMI tobacco supply chain
Total energy consumption (gigajoules)6 8,025,559 8,896,274 9,353,222 9,456,576 PMI factories, offices, and fleet
Energy intensity (gigajoules per million cigarettes equivalent)7 8.60 10.75 11.57 11.95 PMI factories, offices, and fleet
Fuel consumption from non- renewable sources (gigajoules) 5,597,766 5,988,022 5,819,072 PMI factories, offices, and fleet
Fuel consumption from renewable sources (gigajoules) 44,389 61,163 128,967 PMI factories, offices, and fleet
Total electricity consumed (MWh)8 885,385 899,706 959,723 PMI factories and offices
Total electricity consumed that is from renewable sources (MWh) 443,837 546,944 623,940 PMI factories and offices
Proportion of electricity used and purchased that is from renewable sources 50% 61% 65% PMI factories, offices, and fleet
Proportion of electricity used and purchased that is from renewable sources 0% 53% 65% 72% 100% by 2025 PMI factories
CDP Climate Change rating A A A A

1 We include warehouses in PMI offices

2 In 2019, we reviewed our carbon footprint model, taking into account more primary data from suppliers and updating our methodology, leading to more accurate figures for our scope 3 emissions. We have restated our 2017 and 2018 data according to the new model. Other figures that include scope 3 emissions have also been restated.

3 2019 figure includes carbon off-setting certificates purchased in our factory in Klaipėda (seepage143) and our Operations Center in Lausanne (see page 68).

4 From 2019 onwards, intensity is measured in CO{_2_}e per million shipped cigarettes equivalent. Our baseline and previous years’ data have been restated accordingly.

5 We report on our progress against our current science-based targets which align with a 2-degree scenario: we committed to achieve an absolute reduction of our scope1+2 emissions of 30% by 2020, 40% by 2030, and 60% by 2040; and to achieve an absolute reduction of our scope 1+2+3 emissions of 40% by 2030.

6 The 2018 figure has been adjusted due to an internal reporting error

7 From 2019 onwards, energy intensity is reported in gigajoules per million shipped cigarettes equivalent. Previous years’ data have been restated accordingly.

8 We have reviewed the calculation methodology for our electricity consumption to account for the electricity produced in our facilities and we have restated previous years’ data accordingly. Other figures that include electricity have also been restated.

 

 

Download Littering prevention performance
2019
Number of anti-littering initiatives conducted 54
Number of affiliates with anti-littering strategy developed 31
Number of affiliates participating in World Cleanup Day 31
Number of participants to World Cleanup Day (PMI employees and other volunteers) 3,962
Number of cigarette butts collected during World Cleanup Day 827,160

1 These indicators were introduced in 2019

 

 

download Product eco-design and circularity performance
2017 2018 2019 Goal
Recycling rate of IQOS devices (weighted average)1 n/a 45% 61-79% 80% by 2025
Proportion of IQOS device sales volume covered by the CIRCLE program2 n/a 66% 39% 100% by 2025
Carbon footprint of PMI smoke-free products per user (kgCO2e/year)3 n/a n/a QOS 3.0: 43.5 IQOS 3 MULTI: 47.5 IQOS MESH: 21.5
Proportion of packaging material that is recyclable4 94.4% 93.6% 93.5% 100% by 2025
Proportion of packaging material that is renewable4 88.9% 88.3% 87.7% 95% by 2025
Reduction of packaging materials used versus 2018 baseline n/a n/a 3% 15% by 2020

1 We established our two recycling CIRCLE hubs in 2018. Recycling rate: Depending on device type and processing facility (figures provided for product processed through CIRCLE hubs, varied by device type, zero landfill, remainder to energy recovery or material loss).

2 WeestablishedourtworecyclingCIRCLEhubsin2018.WhileweexpandedthenumberofmarketscoveredbyCIRCLEin2019, the decrease in coverage of sales volume is explained by IQOS growth in markets not yet covered by the program.

3 Depends on device and assumes 20 heated tobacco units/day. Scope includes materials, manufacturing, use, and end-of-life, but excludes logistics.

4 While we continued our efforts to substitute or reduce the use of materials from non-renewable sources and non-recyclable materials in our packaging, the slightly decreasing trend in the past years is driven by the volume mix evolution over this period of time.

 

 

download Forest protection performance
2017 2018 2019 Goal
Proportion of tobacco purchased cured at no risk of deforestation of old-growth forests1 94% 90% 97% 100% by 2020
Proportion of flue-cured tobacco purchased cured with renewable sources (self-sufficient firewood and biomass adoption) 36% (29% + 7%) 46% (33% + 13%) 51% (36%+15% 70% by 2020
Approximate cumulative number of curing barns upgraded since 2014 57,000 76,000 80,800 80,000 by 2020
CDP forest rating n/a B A- A

1 The category “old-growth forests” includes both primary (untouched) forests and secondary high conservation value forests. Old-growth forests are living, functional ecosystems which need protection. We use our Monitoring and Verification Framework for Sustainable Curing Fuel to systematically monitor the sustainability of all fuel types used in our tobacco supply chain.

 

 

Download Water stewardship performance
2010 baseline 2017 2018 2019 Goal Scope
Total amount of water withdrawn (’000 m3) 4,998 4,152 4,371 4,008 PMI factories
Total amount of water consumed (withdrawn minus discharged) (’000 m3) 2,449 1,672 1,958 1,883 PMI factories
Water ratio (water withdrawn in m3 per million cigarettes equivalent)1 5.35 4.83 5.14 4.74 4.4 by 2020 3.1 by 2022 PMI factories
Number of fines2 0 0 1 PMI factories
Number of spills2 0 0 1 PMI factories
Cumulative number of local water risk assessments performed n/a 8 15 22 by 2020 Tobacco supply chain
Quantity of water used per ton of tobacco produced (m3) n/a 266 330 Tobacco supply chain
Total amount of water used (’000 m3) n/a 119,600 138,200 Tobacco supply chain
CDP water rating A B A A

1 From 2019 onwards, water intensity is measured in m3 per million cigarettes produced equivalent .Our base line and previous years’ data have been restated accordingly.

2 Last year in the waste water treatment plant in Yangsan Factory of Philip Morris Korea, some of the waste water was accidentally drained to rain water due to operational mistake of the contracted service provider. PMI informed the authorities, implemented preventive measures and paid the corresponding fine.

 

 

Download Biodiversity performance
2017 2018 2019 Goal
Proportion of tobacco purchased without detection of residues attributable to the use of WHO Toxicity Class 1 crop protection agents1 99% 100% n/a 100% by crop year 2018
Proportion of tobacco purchased without detection of residues attributable to the use of HHPs, as defined by FAO and WHO guidelines in 20161 88% 89% n/a 100% by crop year 2020

1 The 2019 crop season data were not available at the time of the publication of this report

 

 

Download Waste reduction performance
2010 baseline 2017 2018 2019 Goal
Total amount of waste generated (metric tons) 143,596 140,316 134,367 131,104
Proportion of total waste generated that is recycled 79% 81% 84% 84% 85%
Proportion of total waste generated that is incinerated with energy recovery 9% 12% 12% 12%
Proportion of total waste generated that is disposed to landfill 6% 4% 4%
Proportion of total waste generated that is incinerated without energy recovery <1% <1% <1%
Amount of hazardous waste generated (metric tons) 1,357 1,423 1,486
Proportion of hazardous waste generated that is recycled 37% 41% 33%
Proportion of hazardous waste generated that is incinerated with energy recovery 44% 44% 49%
Proportion of hazardous waste generated that is disposed to landfill 9% 6% 8%
Proportion of hazardous waste generated that is incinerated without energy recovery 10% 9% 10%

1 The scope of waste data covers factory waste but excludes marketing and project waste

This online supplement to our integrated report should be read in conjunction with PMI’s Integrated Report 2019. The information and data presented in this online supplement cover the 2019 calendar year or reflect status at December 31, 2019, worldwide, unless otherwise indicated. Where not specified, data come from PMI estimates. See About this online supplement for more information. Aspirational targets and goals do not constitute financial projections, and achievement of future results is subject to risks, uncertainties and inaccurate assumptions, as outlined in our forward-looking and cautionary statements.