PMI Sustainability Index 2023-2025 Achievement

PMI Sustainability Index 2023-2025 Achievement

The transformation performance metric for the 2023-2025 performance cycle utilized the Company’s Sustainability Index and was based on two components:

• Product Sustainability (20% Weighting): The aggregate achievement with respect to eight key performance indicators (KPIs) pertaining to social and environmental impacts generated by the Company’s products, focused on measuring progress on the Company’s efforts to purposefully phase out cigarettes, maximizing the benefits of smoke-free products, and reducing post-consumer waste; and
• Operational Sustainability (10% Weighting): The aggregate achievement of eight KPIs pertaining to social and environmental impacts generated by the Company’s business activities, focused on measuring progress on the Company’s efforts to tackle climate change, preserve nature, improve the quality of life of people in its supply chain, and foster an empowered, and inclusive workplace.

For each KPI, the Compensation Committee measured performance against established goals to determine the result applicable to such KPI. Achievement for each KPI was scored on a scale of 0 to 3 with 0 (missed target) representing 0%, 1 (target partially achieved) representing 50%, 2 (target achieved) representing 100%, and 3 (target exceeded) representing 150%. The weighted average of the KPI scores was then calculated to determine the actual score for both Product Sustainability and Operational Sustainability, with a maximum possible result of 150% per Index component, and then converted into a final rating for each with a maximum possible result of 200% per Index component.

With respect to the Product Sustainability component of the metric, of the eight KPIs, performance for six KPIs exceeded the target goal and performance for two KPIs partially achieved the target goal, resulting in an aggregate achievement of 125%, which was converted into a final rating of 138%. With respect to the Operational Sustainability component of the metric, of the eight KPIs, performance for all eight KPIs exceeded the target goal, resulting in an aggregate achievement of 150%, which was converted into a final rating of 200%. Taken together the final rating for the 2023-2025 Sustainability Index was 133%.

Further details regarding performance against each KPI are provided in the tables below. The Company’s Value Report 2025 includes more granular information about the Company’s Sustainability performance and KPIs included in the Sustainability Index 2023-25. The overall results of the 2023–2025 Sustainability Index were externally assured by PricewaterhouseCoopers (PwC). In addition, all KPIs included in the 2023–2025 Index underwent external verification: climate-related KPIs were independently verified by SGS, while the remaining KPIs were assured by PwC. These independent assurance statements are also available for review at  Sustainability resources.

This online content about our Value Report should be read in conjunction with PMI’s Value Report 2025. This report includes metrics that are subject to uncertainties due to inherent limitations in the nature and methods for data collection and measurement. The precision of different collection and measurement techniques may also vary. This report includes data or information obtained from external sources or third parties. Unless otherwise indicated, the data contained herein cover our operations worldwide for the full calendar year 2025 or reflect the status as of December 31, 2025. Where not specified, data comes from PMI financials, nonfinancials, or estimates.

Unless explicitly stated, the data, information, and aspirations in this report do not incorporate PMI’s Wellness unit, Aspeya. Regarding the Swedish Match acquisition, completed late 2022, unless otherwise indicated, this report includes information pertaining to its sustainability performance.  Please also refer to "About this report" on page 3 of the PMI’s Value Report 2025 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 on page 142. In PMI’s Value Report 2025 and in related communications, the terms “materiality,” “material,” and similar terms are defined in the referenced sustainability standards and are not meant to correspond to the concept of materiality under the U.S. securities laws and/or disclosures required by the U.S. Securities and Exchange Commission.