Change in motion: Philip Morris International releases Value Report 2025 and new Value Plan 2030+

A strategy anchored in sustainable value creation

Built on the progress that we have made over the past decade, the report explains how we are securing the resources, capabilities, and stakeholder trust that will sustain our business for decades to come. This is PMI’s strategy; it is how we secure resources, manage risk, meet stakeholder expectations, and future-proof a business built to deliver results today—and tomorrow.

“Our approach to value creation is anchored in a simple conviction: Long-term financial success depends on the health of the resources and relationships that make it possible,” said Emmanuel Babeau, PMI’s Group Chief Financial Officer.

Delivering impact across products and operations

PMI achieved meaningful progress across both product and operational impact in 2025, as we closed our 2025 Roadmap.

PMI’s Business Transformation Metrics (BTMs) provide stakeholders with clear, comparable indicators of our progress toward a smoke-free future. These metrics go beyond traditional reporting frameworks to capture aspects unique to PMI’s change in motion. They include the following, as of December 31, 2025:

• Around 43.5 million adult consumers of smoke-free products worldwide.¹
• PMI’s smoke-free products available for sale in 106 markets.²
• PMI’s smoke-free business net revenues reached USD 16.9 billion and represented 41.5 percent of total annual net revenues.³

In addition, as of December 31, 2025, PMI celebrated progress on:

• 98 percent coverage of shipment volume with youth access prevention programs in our indirect retail channels.⁴
• 91 percent coverage of shipment volumes with PMI’s anti-littering programs for cigarette butts.⁵
• 76 percent of PMI employees globally had access to structured lifelong learning opportunities. ⁶
• 99.6 percent of contracted farmers supplying tobacco to PMI made a living income by year-end 2025. This was achieved through initiatives aimed at boosting farm productivity and encouraging income diversification.⁷
• 99.3 percent of tobacco purchased at no risk of net deforestation of managed natural forest and no conversion of natural ecosystems.⁸
• 46 percent decrease versus 2019 on absolute Scope 1 and 2 greenhouse gas (GHG) emissions, with the company achieving carbon neutrality in our direct operations⁹, and PMI’s absolute Scope 3 Forest, Land, and Agriculture (FLAG) GHG emissions decreased by 31 percent versus 2010.¹⁰

“We have identified six strategic priorities that reflect what matters most to our stakeholders and our business: Consumers and product health impact, circularity, climate change, nature and biodiversity, our own workforce, and workers throughout our value chain, which are consolidated in our Value Plan 2030+,” said Jennifer Motles, PMI’s Chief Sustainability Officer.

“Our plan is explicit about what we control directly and what requires the action of, and partnership with others, setting a strong foundation for effective action. That is the spirit with which we present our Value Plan 2030+, as an invitation to dialogue, a platform for collaboration, and a roadmap for the next chapter: Turning sustainability into lasting business value.”

Accelerating smoke-free growth and long-term resilience

PMI’s Value Plan 2030+ sets the course for our next chapter—a continuation of the change in motion that has defined PMI’s evolution over the past decade.

It focuses on accelerating the growth of our smoke-free product business, working to make cigarettes obsolete, and exploring adjacent avenues of growth in wellness, while maintaining responsible sales and marketing practices, investing in human and natural capital, and strengthening the operational resilience that underpins long-term, sustainable value creation.

PMI’s Value Report 2025 has been prepared with reference to the Global Reporting Initiative (GRI) Universal Standards (2021) and relevant topic-specific standards. This report follows guidance from the International Sustainability Standards Board (ISSB) of the IFRS Foundation, including SASB Standards, Integrated Thinking Principles, and the Integrated Reporting Framework.

The Value Report continues to build on the foundation established by previous Integrated Reports, providing a comprehensive and integrated view of PMI’s strategy, management, performance, and outlook in relation to its most significant sustainability-related topics.

Read the full 2025 Value Report, and learn more about the work our teams are doing in markets across the world.

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1 Total PMI smoke-free users is defined as the sum of total IQOS users, total oral smokeless users, and total e-vapor users of PMI products and considering poly-users across PMI's smoke-free product categories. For definitions, see Glossary in PMI’s Value Report 2025.

² For definition of available for sale, see Glossary in PMI’s Value Report 2025.

³ For definition of net revenues related to smoke-free, see Glossary in PMI’s Value Report 2025. This information should be read in conjunction with the Reconciliation of non-GAAP measures in PMI’s Value Report 2025.

⁴ Total shipment volume includes cigarettes, other tobacco products (OTPs), and smoke-free product consumables. See PMI’s Non-financial KPI hub for further details.

⁵ See PMI’s Non-financial KPI hub for further details.

⁶ See PMI’s Non-financial KPI hub for further details.

⁷ Excludes China, Thailand, Switzerland, and India (flue-cured). See PMI’s Non-financial KPI hub for further details on methodology.

⁸ For definitions, please see PMI’s Zero Deforestation Manifesto and PMI’s Non-financial KPI hub.

⁹ Ambition achieved in early 2026 against 2025 emissions; data refer to yearly gross emissions from the reporting year minus the retroactive offsetting of the previous year's emission. See PMI’s Non-financial KPI hub for further details.

¹⁰ For further details on scope 3 calculation, please refer to PMI's Value Chain Carbon Footprint Methodology Overview and PMI’s Non-financial KPI hub.