Demonstrates Strong Progress Toward Delivering a Smoke-Free Future; Reaffirms and Broadens 2025 Aspirational Targets
PMI’s Integrated Report 2019 demonstrates the role of the organization's strategy, governance, and performance in the creation of value over the short, medium, and long terms. Further, the report shows PMI’s approach and important progress in various ESG areas, while setting new and ambitious targets for 2025 that complement the company’s prior aspirations. The Integrated Report also highlights the company’s most material sustainability topics, including the health impacts of the company’s products, an aspect often not captured by external ESG assessments. The report focuses on this key area, and describes how the company is working to reduce the harm caused by tobacco use by replacing combustible products with scientifically substantiated reduced-risk alternatives.
PMI’s evolution from sustainability reporting to integrated reporting helps investors make the connection between our product-focused sustainability initiatives, which form the core of our ESG strategy, and our financial performance over time. The report also enables the company’s stakeholders to better evaluate the company’s progress in achieving its purpose. PMI’s Statement of Purpose, adopted by the company’s Board of Directors earlier this year and published in its 2020 proxy statement, is also available in the Integrated Report.
“Clarity of purpose is essential for the internal alignment of any company. Since we announced our smoke-free commitment in 2016, we have made enormous progress in terms of organizational capabilities, the integration of sustainability into every aspect of our transformation, and our business,” said
The Integrated Report 2019 demonstrates how PMI is focusing its resources on developing, scientifically substantiating, and responsibly commercializing smoke-free products that are a better choice than continued smoking, with the aim of completely replacing cigarettes as soon as possible. The company believes that, with the right regulatory encouragement and support from civil society, cigarette sales can end within 10 to 15 years in many countries.
In 2016, PMI introduced a set of Key Performance Indicators (KPIs), referred to as Business Transformation Metrics, to transparently measure and verify its progress toward a world without cigarettes. In 2019, we continued to expand this set of metrics.
Highlights from our 2019 performance across these metrics include:
ESG highlights from the Integrated Report 2019 include:
Huub Savelkouls, Chief Sustainability Officer, said: “Our Integrated Report aims to provide a comprehensive overview of what PMI is about, combined with a holistic set of metrics that go beyond our financial disclosures, covering our business transformation, as well as environmental, social, and governance topics. We support and seek to align with GRI, SASB, and TCFD disclosure standards, enabling all stakeholders to benchmark our strategy and performance.”
Download the full Integrated Report 2019 at PMI.com/IntegratedReport2019. Additional information on the company’s sustainable actions, aspirational targets, and commitments are available on PMI.com/Sustainability.
Aspirational targets and goals do not constitute financial projections, and achievement of future results are subject to risks, uncertainties, and inaccurate assumptions, as outlined in the forward-looking and cautionary statements on page 189 of the Integrated Report 2019. Key terms, definitions, and explanatory notes are set forth in the Integrated Report 2019. In the 2019 Integrated Report and in related communications, the term “materiality,” “material,” and similar terms, when used in the context of economic, environmental and social topics, are defined in the referenced sustainability standards, and are not meant to correspond to the concept of materiality under the