Performance metrics overview

¹R&D expenditure in wellness and healthcare is included in both smoke-free and total R&D expenditures. Adjusted R&D expenditure excludes asset acquisition cost related to OtiTopic, Inc. in 2021. Total reported R&D expenditure in 2021 including these items amounted to USD 617 million.

²R&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.

³IP5 jurisdictions are Europe (patents granted by the European Patent Office), China, South Korea, Japan, and the U.S.

⁴Direct spend focuses on materials used in the manufacture of our products; it includes tobacco leaf, direct materials, and electronic devices and accessories.

⁵Investments reflect research, product and commercial development, production capacity, scientific substantiation, and studies on adult smoker understanding. Figure does not include commercial deployment costs.

⁶Data reflect the number of factories operated and owned by PMI at the end of the respective year. Number of factories fully or partially dedicated to smoke-free products includes seven factories related to heated tobacco units production and one factory related to e-vapor consumables production. 2021 figures exclude one factory dedicated to wellness and healthcare products owned by Fertin. 

⁷“SKUs” stands for stock-keeping units. References to the number of SKUs are based on the latest available data and categorization of our product portfolio into SKUs, therefore a minor restatement in previous years’ data is reflected. The figures exclude China and the U.S. Note: As part of maintaining share in combustibles, remaining competitive on product range in line with consumer preferences best positions us to retain access to adult smokers and increase our capability to switch them to smoke-free products.

⁸Data reflects status by the end of respective year. 2021 data excludes Belarus and the U.S.

⁹Excluding PMI Duty Free. Data reflects status by the end of respective year. 2021 data excludes Belarus and the U.S. For definition of low- and middle-income markets, see glossary. ¹⁰Includes flagship stores and small, large, and temporary boutiques.

¹¹These indicators are calculated based on millions of units.

¹²These metrics are excluding PMI Duty Free and reflect the estimated number of legal age (minimum 18 years) users of PMI IQOS heat-not-burn product (see glossary). In 2021, we evolved our methodology to estimate the total number of users of PMI smoke-free products, in order to better reflect the number of users for which PMI HTU represented at least a portion of their daily tobacco consumption over the past seven days. 2020 data were restated accordingly. Unavailability of sufficiently granular data did not enable us to restate figures for years prior to 2020. We also fine-tuned our methodology to estimate the number of users who have switched to PMI smoke-free products and stopped smoking, in order to reflect the conversion rate of our total user base at year-end, and restated 2020 data accordingly.

¹³Data reflect the status by the end of the respective year. 2021 adjusted net revenues exclude the impact related to the Saudi Arabia customs assessments. 2021 revenues from wellness and healthcare (USD 101 million) are included in both smoke-free and total adjusted net revenues. See glossary.

¹In 2021 we defined the minimum criteria which must be met by each market to be considered as having an anti-littering program in place. We will begin reporting progress on this new indicator in 2022.

²Our aspiration is to have eco-design certifications for all smoke-free devices which are launched as of the end of 2025. Given the long-term nature of this aspiration, we have developed internal metrics based on key milestones that will allow us to track our progress in the interim years leading up to our 2025 aspiration.

³For the definition of refreshed or repaired devices, see glossary.

⁴In 2021, the effective recycling rate is calculated as the actual recycling rate in Hungary and Japan, multiplied by the IMS coverage of these hubs plus the theoretical recycling rate in the newly established Russian hub, multiplied by the IMS coverage of the Russian market.

⁵Recycling rate: Percentage of the weight of each device that is recycled, weighted-average depending on device type and processing facility (includes 78% recycling, 8% incineration with energy recovery). 2021 data covers CIRCLE hubs in Hungary and Japan.

⁶In 2021 we defined the minimum criteria which must be met by each market to be considered as having a take-back program in place. We will begin reporting progress on this new indicator in 2022.

⁷Includes portfolio/volume mix and inventory movement. Includes shipping cases.

¹In 2021 we updated our methodology to expand scope and cover employees on long-term leave (over 30 calendar days); we have restated historical data accordingly.

²We will begin reporting progress on this new indicator in 2022.

³2021 data based on a total of 55,276 employees maintained in PMI’s central HR system.

⁴We measure the engagement of our workforce using the employee Net Promoter Score (eNPS), following a methodology similar to that which we use to measure consumer engagement. The score can range from -100 to +100.

⁵For definition of contracted employee and contractor, see glossary.

⁶PMI employees and contracted employees: 1 fatality in 2021; contractors: zero fatalities in 2021.

⁷Scope covers PMI’s working tool cars (representing 75% of PMI’s total fleet).

⁸Scope covers manufacturing facilities producing more than three billion cigarette equivalents annually.

⁹Our gender diversity data cover around 95% of PMI’s total workforce.

¹⁰For definitions of managers, directors, and senior leaders see glossary.

¹¹Data as of March 11, 2022 (24 Company Management members, of whom 4 were women). See PMI Annual Report 2021 for further details.

¹²Data as of March 25, 2022 (13 members of PMI’s Board of Directors, of whom 3 were women). See PMI 2022 Proxy Statement for further details.

¹³The mean gender pay gap is calculated as the percentage difference between the sum of annual base salary, bonus, and stock options.

¹⁴This figure is an estimate based on the total headcount within functions where the primary skills required for employees in their daily responsibilities related to science, technology, engineering, or mathematics.

¹⁵Employees holding management roles in revenue-generating functions (i.e., functions responsible for core business objectives or profit and loss).

¹⁶The indicator represents the percentage of employees who responded “good” or “very good” to the question “How would you rate your current psychological or emotional well-being at present?” in our regular employee listening survey. The indicator was updated based on new information available, so a slight shift in previous years’ data is reflected.

¹As we progress with the independent analysis, the percentage of farmers achieving a living income is currently based on a combination of external living income benchmarks, farmer income studies, and PMI internal data.

²Includes all prompt actions raised and self-declared nonconformities reported for all contracted farms monitored for child labor. Read more on page 154 of the 2021 Integrated Report.

³The number of children estimated to be involved in these prompt actions is 1,609.

⁴Includes children of any age found to be involved in hazardous work.

⁵Includes light work only.

⁶Estimated data based on surveys that indicated that the farmer has an improved source within 1 km. Data excludes China.

⁷Scope is limited to farmers that provide accommodation to workers (approximately 8 percent of the total farmer base in 2021).

¹For definitions, please see PMI’s Zero Deforestation Manifesto.

²Blue water refers to water used for irrigation, excluding rainfall.

³Water intensity is measured in cubic meters per million cigarettes produced equivalent. In 2021, we updated our methodology to account for the conversion factor of heated tobacco units to conventional cigarettes of 5:1 and have restated historical data accordingly.

⁴The 2021 crop season data were not available at the time of the publication of PMI’s Integrated Report 2021.

⁵Disposal to landfill includes sanitary waste, canteen waste, and waste which mandated by authorities to be disposed of in landfill.

⁶Scope: Manufacturing facilities producing more than three billion cigarette equivalents annually.

⁷Fines above USD 10,000 (or equivalent in converted currency). 2021 figure is a provision for two administrative offenses related to failure to comply with water resource use permit and availability of financial guarantee in Portugal. In both cases, PMI has submitted its opposition.

¹Intensity is measured in CO2e per million shipped cigarette equivalent.

²Excludes electricity consumption from fleet.

³Emissions from PMI-operated IQOS stores are excluded from scope 1+2 emissions, as de minimis.

⁴2021 figure includes carbon offsetting certificates purchased in our factories in Czech Republic, Lithuania, Mexico, Portugal, Switzerland, and our Operations Center in Switzerland.

⁵For further details on Scope 3 calculation please see PMI Value Chain Methodology. In 2021, 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 2019 and 2020 data according to the new model. Other figures that include scope 3 emissions have also been restated.

¹Suppliers refer to tier 1 suppliers (parent companies).

²Total supply chain spend includes procurement spend and tobacco leaf sourcing spend.

³Indicator introduced in 2020. As of 2021, following the transition of our due diligence program, sustainable sourcing is determined based on a minimum threshold score of 45 out of 100 in EcoVadis (direct materials) or 125 out of 200 in RBA (electronics). All tobacco purchased by contracted farmers, thereby covered by PMI’s integrated production system is considered sustainable.

⁴Procurement spend excludes tobacco leaf sourcing.

⁵Suppliers’ criticality is evaluated considering spend segmentation and nature of component, as well as supply flexibility (single-source/not easily substitutable) as relevant. 2021 figure includes tier 1 suppliers of direct materials and electronics, tier 2 directly managed electronic suppliers, and tobacco leaf suppliers.

⁶In 2021, we transitioned our supply chain due diligence assessments to the EcoVadis and RBA platforms. This figure represents the number of completed assessments on these platforms to date. In 2022 we will work to expand the scope of the assessments to additional critical suppliers.

⁷Based on a score below 45 on the social or environmental theme of EcoVadis assessment, or the results of on-site audit from RBA. Comparable historic data not available due to transition of due diligence platforms in 2021.

⁸EcoVadis score ranges from 0 to 100, with a minimum threshold score of 45 demonstrating satisfactory sustainability performance.

⁹This figure includes 17 out of 23 of our electronic critical suppliers. In 2022 we will work to expand the scope of the assessments to additional critical suppliers.

¹⁰Due to COVID-19 restrictions, in 2021 it was not possible to complete on-site audits at each of the 42 sites.

¹¹Data refer to parent companies.

¹Full coverage equates to 95% tracking and tracing in our supply chain (excluding kretek business). 5% of master cases are not covered; these are destined for countries that are not identified as a source of potential diversion or where PMI sells to a single customer in the country.

²Excludes kretek business. While our internal rules mandate a unique code on every pack (hence 100% mentioned), some exceptions remain, which are managed and reviewed with the impacted markets on an annual basis.

³The number of training sessions delivered each year depends on specific needs and requests raised locally by law enforcement agencies. The significant increase in 2021 was driven by larger numbers of participants taking part in online training sessions.

⁴PMI pledged USD 100 million to PMI IMPACT. Goals related to PMI IMPACT are stated for the period 2016–2025.