Our performance at a glance

The ESG metrics on this page are explained in the relevant sections of our Integrated Report 2020 and in additional communications available on our website. Find out more in our ESG highlights, and please also refer to the glossary

The performance tables available on this page are extracted from our PMI Integrated Report 2020. Unless otherwise indicated, the scope of the data covers our operations worldwide for the full calendar year 2020 or reflects the status as of December 31, 2020. 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 available on page 145 of our Integrated Report 2020.

 

Financials

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Financials
Financials (in millions USD, except per share data) 1 2018 2019 2020
Revenues including excise taxes 79,823 77,921 76,047
Excise taxes on products2 50,198 48,116 47,353
Net revenues3 29,625 29,805 28,694
Operating income 11,377 10,531 11,668
Net earnings attributable to PMI 7,911 7,185 8,056
Earnings per share (EPS) 5.08 4.61 5.16
Operating cash flow4 9,478 10,090 9,812
Total assets 39,801 42,875 44,815
Total liabilities 50,540 52,474 55,446
Capital expenditures 1,436 852 602
R&D expenditure 383 465 495

1 The information is a summary and is qualified in its entirety by reference to the full texts of PMI’s Annual Reports for the years ended 2018 through 2020, available on PMI.com.

2 This indicator refers to the amount paid by PMI entities, and excludes excise tax paid in several markets where third-party operators collected taxes on PMI products. The total amount of excise tax paid by consumers on PMI products amounted to USD 72.4 billion in 2020.

3 The decline in 2020 full-year net revenues was partly driven by unfavorable currency and the impact of the deconsolidation of PMI’s Canadian subsidiary, Rothmans, Benson & Hedges, Inc. (RBH), effective March 22, 2019.

4 Net cash provided by operating activities.

 

 

Pillar 1 - Performance - Innovating for better products

Note:
The 2020 metrics marked with an asterisk (*) are subject to PwC’s Assurance Report (see page 146 of PMI Integrated Report 2020).
Aspirational goals, marked with two asterisks (**), do not constitute financial projections.

Download business transformation metrics

Business transformation metrics
2016 2017 2018 2019 2020 Goals
R&D expenditure (in millions USD)* 429 453 383 465 495
R&D expenditure (smoke-free/total)*1 72% 74% 92% 98% 99%
Number of R&D positions (FTEs)2 n/a n/a 764 942 934
Patents granted in IP5 jurisdictions relating to smoke-free products (cumulative)3 170 300 480 740 1,300
Number of studies completed by PMI on smoke-free products (cumulative, since 2015)

Toxicological assessment

36 57 82 109 146

Clinical assessment

11 12 19 19 22

Perception and behavior (premarket and post-market)4

7 (7+0) 8 (7+1) 12 (9+3) 13 (9+4) 30 (15+15)
Supply chain direct spend expenditure (smoke-free/total)5 n/a n/a n/a 35% 33%
Cumulative investments behind smoke-free products (since 2008, in billions USD)6 3.2 4.6 6.2 7.2 8.1
Number of factories producing smoke-free products out of total number of factories*7 3 out of 48 4 out of 46 8 out of 44 8 out of 38 8 out of 39
Year-on-year change in number of SKUs—combustible products8 -1.7% -6.5% -6.1% -5.5% -4.1%
Year-on-year change in number of SKUs—smoke-free products 78.2% 9.9% 37.1% 24.9% 38.2%
SKUs (smoke-free/total) 4.7% 5.5% 7.8% 10.1% 13.9%
Number of markets where IQOS is available for sale* 20 38 44 52 64
Proportion of markets where IQOS is available for sale that are outside the OECD*10 32% 41% 44% 45% 52%
Number of IQOS stores10 26 63 81 199 259
Number of retailers that sell PMI smoke-free product consumables (in thousands) 90 292 488 679 749
Commercial expenditure (marketing) (smoke-free/total)* 15% 39% 60% 71% 76%
Smoke-free product shipment volume (billion units)* 8 36 42 60 76 >250 Smoke-free products shipment volume (in billion units)
Combustible product shipment volume (billion units)* 845 791 767 732 654 <550 Combustible product shipment volume (in billion units)
Smoke-free product shipment ratio (smoke-free/total)*11 0.9% 4.4% 5.1% 7.6% 10.4% >30% Smoke-free product shipment ratio (smoke-free/total)
Total IQOS users (in millions)*12 2.1 6.9 9.6 13.5 17.5
Estimated users who have switched to IQOS and stopped smoking (in millions)*12 1.5 4.7 6.6 9.6 12.7 >40m Estimated users who have switched to PMI smoke-free products and stopped smoking
Estimated users outside the OECD countries who have switched to IQOS and stopped smoking (in millions)*9 0.0 0.2 1.1 2.9 4.3 >20m Estimated users outside the OECD countries who have switched to PMI smoke-free products and stopped smoking
Net revenues (smoke-free/total)*13 2.7% 12.7% 13.8% 18.7% 23.8% >50% Net revenues (smoke-free/total)**
Number of markets where net revenues from smoke-free products exceed 10% of total net revenues*14 1 5 19 31 38
Number of markets where net revenues from smoke-free products exceed 50% of total net revenues*14 0 1 3 4 6

1 Smoke-free products include heated tobacco units, devices, 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 IP5 jurisdictions are Europe (patents granted by the European Patent Office), China, South Korea, Japan, and the U.S.

4 Data related to perception and behavior studies were restated to include both premarket and post-market studies.

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

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

7 Production temporarily stopped at one of our factories in Germany in December 2019 and resumed early 2020.

8 “SKUs” stands for stock-keeping units. References to number of SKUs are based on the latest available data from a number of internal sources, and exclude People’s Republic of China and the U.S.

9 Excluding PMI Duty Free. Data are based on 2020 OECD country list.

10 Includes flagship stores, and small, large, and temporary boutiques

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

12 Excluding PMI Duty Free; see glossary.

13 Net of excise taxes.

14 Excluding PMI Duty Free and the U.S.

Pillar 2 - Operating with excellence

Download Responsible marketing and sales practices

Responsible marketing and sales practices
Indicators 2018 2019 2020
Total number of compliance training sessions conducted on PMI’s Marketing Code (employees/third parties) 23,438 14,500 (49%/51%) 28,569 (64%/36%)
Number of violations of the Marketing Code or Good Conversion Practices (GCP) resulting in substantiated cases of misconduct 8 42 29
Markets with youth access prevention programs in place (out of PMI’s total shipment volume)1 n/a n/a 94%

1 Total shipment volume includes cigarettes, heated tobacco units, other tobacco products, and e-cigarettes.

 

 

Download Sustainable supply chain management performance

Sustainable supply chain management
Indicators 2018 2019 2020 Goal
Total number of suppliers1 >36,000 >33,200 >28,000
Total supply chain spend (in billions USD)2 11.7 11.4 10.1
Supply chain direct spend expenditure (smoke-free/total)3 n/a 35% 33%
Percentage of critical supplier spend from whom PMI sources sustainably4 n/a n/a 67% 100% by 2025
Our non-tobacco supply chain:
Total procurement spend (in billions USD)5 10.0 9.9 8.9
Number of critical suppliers6 n/a 95 154
Critical suppliers, as a proportion of total procurement spend n/a 35% 35%
Critical suppliers’ procurement spend assessed in PMI’s supplier due diligence platform (STEP) n/a 84% 95%
Critical suppliers of direct materials assessed in STEP, expressed as a proportion of procurement spend on critical suppliers of direct materials n/a 73% 93%
Critical suppliers of electronics assessed in STEP, expressed as a proportion of procurement spend on critical suppliers of electronics n/a 100% 100%
Critical suppliers of direct materials assessed in STEP that demonstrated compliance with PMI’s Responsible Sourcing Principles n/a 50% 45%
Number of suppliers assessed for environmental and social impacts7 n/a 154 217
Number of suppliers identified as having significant actual and potential negative environmental impacts8 n/a 25 55
Number of suppliers identified as having significant actual and potential negative social impacts8 n/a 44 72
Our tobacco supply chain:
Number of tobacco farmers contracted by PMI and PMI tobacco suppliers >350,000 335,000 285,900
Number of third-party tobacco suppliers with whom PMI has a direct contractual relationship9 15 13 14
Number of PMI leaf operations that contract tobacco farmers directly 8 8 6
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) 2,610 2,875 2,675
Proportion of tobacco purchased through direct contracts by PMI and PMI tobacco suppliers 93% 96% 99% >95% (ongoing)
Number of contracts terminated due to ALP violations10 50 641 1,794

1 Suppliers refer to tier 1 suppliers, parent companies

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

3 Direct spend focuses on materials used in the manufacture of our products, it includes tobacco leaf, direct materials, electronic devices and accessories, and advanced procurement. This indicator was introduced in 2020.

4 Indicator introduced in 2020. Suppliers’ criticality is evaluated considering spend segmentation and nature of component, as well as supply flexibility (single-source/not easily substitutable) as relevant. 2020 figure includes tier 1 suppliers of direct materials and electronics, and tobacco leaf suppliers.

5 Pocurement spend excludes tobacco leaf sourcing.

6 In 2020, we expanded scope of our reporting to cover global and regional tier 1 suppliers of direct materials and electronics.

7 Including tier 1 and tier 2 critical and non-critical suppliers

8 Indicator based on results of self-assessment questionnaires and desktop audit results, where relevant.

9 Data refers to parent companies.

10 The increase can be attributed to the introduction (in 2019) of standardized guidelines related to our due diligence, consequence management, and rewards.

 

 

Download respect for human rights performance

Respect for human rights
Indicators 2018 2019 2020 Goals
Cumulative number of human rights impact assessments conducted 1 2 4 10 by 2025

 

 

Download responsible & transparent R&D performance

Responsible & transparent R&D
Indicators 2018 2019 2020
Cumulative number of scientific publications by PMI since 2008 340 365 418
Cumulative number of institutions which have taken part in sbv IMPROVER since 2011 450 500 520
Cumulative number of countries where institutions which have taken part in sbv IMPROVER since 2011 are located 63 65 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 9 40 66
Cumulative number of protocols published on INTERVALS platform since 2018 57 103 122
Cumulative number of data sets published on INTERVALS platform since 2018 144 354 556

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 2021.

 

 

Download business integrity performance

Business integrity
Indicators 2018 2019 2020
Proportion of employees participating in training sessions pertaining to PMI’s Guidebook for Success 86.9% 86.6% 77.7%
Total number of compliance training sessions on PMI’s Guidebook for Success completed (employees/third parties) 193,063 (82%/18%) 253,763 (88%/12%) 198,170 (88%/12%)
Total number of reports received, involving compliance allegations and other concerns 872 978 756
Number of closed cases involving compliance allegations (number of unsubstantiated cases/number of substantiated cases) 582 (245/337) 652 (283/369) 431 (198/233)
Proportion of substantiated claims, out of all closed cases involving compliance allegations 57.9% 56.6% 54.1%
Number of reports that did not involve a compliance allegation 283 325 330

Note: Training and cases are updated based on new information available, so a slight shift in previous years data was reflected.

 

 

Download illicit tobacco trade prevention performance

Illicit tobacco trade prevention¹
Indicators 2018 2019 2020 Goals
Coverage for tracking and tracing – master case level2 100% 100% 100% 100% (ongoing)
Tracking and tracing – proportion of packs sold with unique code applied3 85% 100% 100% 100% (ongoing)
Additional Framework Cooperation Agreements signed with law enforcement agencies/governments in a given year – number of countries 5 2 11 5 by 2021
Regional studies and country analysis to improve awareness of illicit trade – proportion of global consumption covered4 27% 20% 19% 15 by 2025
Number of law enforcement officers trained on how to authenticate PMI products5 500 6,617 4,981 500 by 2021
Number of countries with law enforcement agencies trained on how to authenticate PMI products 10 23 22 >10 per year
Anti-Counterfeiting Cooperation Agreements signed with our suppliers6 n/a n/a 57 100% by 2025
Number of PMI IMPACT projects selected per funding round7 29 0 0 90 in total by 2025
Number of countries from which PMI IMPACT projects were selected per funding round 22 0 0 n/a
PMI IMPACT grants allocated in USD million8 48 48 48 100

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). 5 percent 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.

3 Excludes 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 a yearly basis.

4 In 2020, we did not reach our target of 35 percent: PMI commissions regional studies and country analysis in order to improve awareness of illicit trade. In a number of regions and markets, the frequency of studies have changed from annual to bi-annual or every three years, reflecting the market dynamics and the existing level of awareness.

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. In 2020, physical training sessions were offset by online sessions due to lockdown measures and mobility restrictions as a result of the COVID-19 pandemic.

6 Signed Anti-Counterfeiting Cooperation Agreements based on current scope.

7 There were no funding rounds of PMI IMPACT in 2018–2020. Data for 2018 were restated. Other data related to PMI IMPACT were restated accordingly.

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

 

 

Pillar 3 - Caring for the people we work with

Download socio-economic well-being of tobacco-farming communities performance

Socio-economic well-being of tobacco-farming communities
Indicators 2018 2019 2020 Goals
Number of tobacco farmers contracted by PMI and PMI tobacco suppliers >350,000 335,000 285,900
Number of countries where farmers contracted by PMI and PMI tobacco suppliers are located 27 24 23
Number of farmers with whom PMI has direct contracts 21,000 16,500 13,600
Number of farmers who have direct contracts with PMI tobacco suppliers >329,000 318,500 272,300
Number of third-party tobacco suppliers with whom PMI has a direct contractual relationship1 15 13 14
Number of PMI leaf operations that contract tobacco farmers directly 8 8 6
Proportion of contracted tobacco farms for which labor practices have been systematically monitored (adherence to PMI’s ALP) 88% 92% 93% >90% (ongoing)
Number of contracts terminated due to ALP violations (per crop season) 50 641 1,794
Number of tobacco supplier locations (countries) assessed by Control Union on ALP topics2 3 3 1
Cumulative number of tobacco supplier locations (countries) assessed by Control Union since 2013 on ALP topics2 21 22 22
Percentage of contracted farmers who make a living income3 n/a n/a 48% 100% by 2025
Total number of ALP prompt actions recorded by field technicians 18,543 14,440 14,751
Proportion of ALP prompt actions recorded by field technicians:

Safe working environment

74% 73% 73%

Child labor4

25% 19% 16%

Income working hours

1% 8% 11%

Other

<1% <1% <1%
Total number of ALP prompt actions resolved 13,687 8,137 10,772
Number of ALP prompt actions recorded by field technicians relating to safe working environment 13,780 10,519 10,816
Number of ALP prompt actions recorded by field technicians relating to non-payment of minimum wage to farmworkers5 n/a 1,158 1,541
Number of ALP prompt actions recorded by field technicians relating to child labor6 4,587 2,712 2,352
Proportion of farms monitored found with child labor incidents7 1.3% 0.8% 0.8%
Prevalence of child labor among farms contracted by PMI directly or by PMI’s tobacco suppliers8 n/a n/a 3.5%
Proportion of ALP prompt actions recorded by field technicians relating to child labor that were resolved 89% 88% 75%
Proportion of tobacco farmworkers provided with safe and adequate accommodation9 n/a 80% 100%
Proportion of farmers and farmworkers having access to personal protective equipment for CPA application and GTS prevention10 n/a 99% 100% 100% (ongoing)

1 Data refer to parent companies.

2 Control Union assessment in Argentina was performed before COVID-19; others were postponed to 2021.

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

4 2020 onward, we report on all types of child labor (hazardous work performed by children, light work performed by children below 13, and children below 15 hired).

5 We introduced this category of prompt actions in 2019.

6 2020 onward, we report on all types of child labor (hazardous work performed by children, light work performed by children below 13, and children below 15 hired).

7 2020 onward, we report on all types of child labor. This indicator refers to incidents of child labor that were recorded by field technicians as prompt actions during the crop season.

8 This indicator was introduced in 2020, based on a new methodology giving us improved visibility on child labor across our sourcing markets. The 2020 data include all prompt actions raised and non-conformities reported for all contracted farms monitored for child labor. It also extends beyond hazardous tasks performed by children to cover all types of child labor (i.e., including light work performed by children below 13 and children below 15 hired). Furthermore, in the identified priority markets, the methodology combines internal monitoring data with external data (including from third party assessments) to calculate prevalence of child labor. As of 2021, we intend to use and report on this indicator, and stop reporting the proportion of farms monitored found with incidents of child labor.

9 We introduced this category of prompt actions in 2019. Scope is limited to farmers providing accommodation to workers (approximately 8 percent of the total farmer base).

10 We introduced this category of prompt actions in 2019.


Note: The farm-level data related to our tobacco supply chain reported in this report cover 21 out of the 23 countries we source from. It excludes Lebanon and Switzerland.

 

 

Download health, safety, and well-being at work performance

Health, safety, and well-being at work
Indicators 2018 2019 2020 Goals
Lost time incident (LTI) rate per 200,000 hours worked—PMI employees, contracted employees, and contractors1 n/a 0.14 0.08
LTI rate per 200,000 hours worked – PMI employees 0.13 0.12 0.07
LTI rate per 200,000 hours worked – contracted employees 0.08 0.10 0.03
LTI rate per 200,000 hours worked—contractors n/a 0.23 0.12
Integrated total recordable incidents rate (iTRIR) per 200,000 hours worked—PMI employees, contracted employees, and contractors2 n/a 0.22 0.12 <0.30 by 2025
TRIR per 200,000 hours worked – PMI employees 0.22 0.20 0.11
TRIR per 200,000 hours worked – contracted employees 0.30 0.17 0.06
TRIR per 200,000 hours worked—contractors n/a 0.32 0.16
Number of fatalities – PMI and contracted employees 2 1 1
Number of fatalities – contractors 1 0 1
Number of fatalities – members of the public 3 10 5
Occupational illness frequency rate (OIFR) per 200,000 hours worked – PMI and contracted employees 0.0013 0 0
Collision rate within PMI’s fleet of vehicles per year (collisions per million km driven) 0.91 0.87 0.53 <0.65 by end of 2022
Proportion of PMI fleet equipped with telematics3 n/a n/a 35% 100% by end of 2023
Proportion of manufacturing facilities with OHSAS 18001 and ISO 14001 certification4 97% 98% 100%
Number of markets with health and well-being committees >40 55 53
Employee self-assessment psychological well-being measure5 n/a n/a 58 63 by 2021

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. We define a contractor as a person employed or working on behalf of a thirdparty 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. The scope of our reporting on contractors in 2020 excludes our site in South Korea (representing less than 1 percent of the total contractor population), where local legislation does not permit this monitoring.

2 Integrated total recordable incident rate (iTRIR) covers PMI employees, contracted employees, and contractors.

3 Indicator introduced in 2020. Scope covers PMI’s working tool cars (representing 75 percent of PMI’s total fleet).

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

5 Indicator introduced in 2020. Based on answers from employees as part of our regular employee. The 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 2020 metrics for our health & safety indicators are subject to external verification by SGS (see the External verification Statement).

 

 

download fair working conditions performance

Fair working conditions
Indicators 2018 2019 2020
Number of PMI employees 77,435 73,542 70,849
Number of PMI full-time equivalent (FTE) positions 77,039 71,795 70,560
Proportion of employees covered by Collective Labor Agreements 65% 63% 62%
Total number of Collective Labor Agreements 81 80 79
Total number of countries with Collective Labor Agreements 35 35 34

 

 

PMI's workforce at year-end 2020

download Number of employees by employment contract (permanent and temporary) by gender performance

Number of employees by employment contract (permanent and temporary) by gender
Women employed on a permanent contract 28,401
Women employed on a temporary contract 1,109
Men employed on a permanent contract 39,835
Men employed on a temporary contract 1,504

 

 

Download Number of employees by employment contract (permanent and temporary), by region performance

Number of employees by employment contract (permanent and temporary), by region
Employees on a permanent contract in European Union region 18,292
Employees on a temporary contract in European Union region 1,637
Employees on a permanent contract in Middle East & Africa region, including PMI Duty Free 3,165
Employees on a temporary contract in Middle East & Africa region, including PMI Duty Free 145
Employees on a permanent contract in South & Southeast Asia region 28,294
Employees on a temporary contract in South & Southeast Asia region 128
Employees on a permanent contract in Eastern Europe region 6,743
Employees on a temporary contract in Eastern Europe region 196
Employees on a permanent contract in East Asia & Australia region 4,242
Employees on a temporary contract in East Asia & Australia region 99
Employees on a permanent contract in Latin America & Canada region, and U.S. 7,500
Employees on a temporary contract in Latin America & Canada region, and U.S. 408

 

 

download Number of employees by employment type (full-time and part-time), by gender performance

Number of employees by employment type (full-time and part-time), by gender
Women employed on a full-time contract 28,925
Women employed on a part-time contract 585
Men employed on a full-time contract 41,087
Men employed on a part-time contract 252

All data as of December 31, 2020. Presentation of information and data aligns with guidance of GRI standard 102-8 (2016).

 

 

download Diverse and inclusive working environment performance

Diverse and inclusive working environment
Indicators 2018 2019 2020 Goals
Proportion of female employees 42.1% 41.7% 41.7%
Proportion of management positions held by women1 35.1% 36.1% 37.2% At least 40% by 2022
Proportion of female employees at different managerial levels:1

managers

36.6% 37.5% 38.8%

directors

29.4% 31.2% 30.9%

senior leaders

15.2% 17.4% 20.3%
Proportion of women in senior roles2 27.5% 29.2% 29.4% 32% by 2023
Proportion of new hires in management positions that are women1 40.6% 40.7% 38.8% 50%
Proportion of new hires at junior levels that are women1 40.4% 43.8% 42.2% 50%
Proportion of new hires that are women1 n/a 41.6% 40.7%
Proportion of promotions in management positions that are women1 37.8% 37.4% 38.9%
Number of women on PMI’s Company Management2 2 (out of 22) 2 (out of 25) 4 (out of 25)
Proportion of women on PMI’s Company Management 9% 8% 16%
Number of women on PMI’s Board of Directors3 3 (out of 12) 3 (out of 12) 2 (out of 13)
Proportion of women on PMI’s Board of Directors3 25% 25% 15%
Mean gender pay gap4 n/a 34.6 33.0
Proportion of employees at different age groups:

Below 25

n/a 3% 3%

Between 25 and 34

n/a 31% 31%

Between 35 and 54

n/a 61% 62%

Above 55

n/a 4% 4%
Number of nationalities among PMI’s employees5 >100 126 131
Number of countries with affiliates with LGBTQ+ initiatives or networks 25 27 28

1 Our gender diversity data cover around 95 percent of PMI’s total workforce.

2 See glossary available on page 143 of PMI Integrated Report 2020

3 Based on PMI’s Company Management composition as of March 16, 2021.

4 The mean gender pay gap calculation is the sum of annual base salary, bonus, and equity awards. See PMI.com for further detail on our gender pay gap, including breakdown by pay quartile.

5 In 2020, we expanded the scope of our reporting on employee nationalities to cover 100% of our workforce.

 

 

Download Talent attraction, retention, and employability performance

Talent attraction, retention, and employability
Indicators 2018 2019 2020 Goals
Employee overall turnover rate 11.51% 14.10% 9.80%
Women employee overall turnover rate 10.80% 15.54% 9.90%
Employee voluntary turnover rate 4.12% 4.53% 3.13%
Spend for learning per FTE (in USD) total n/a 513 551
Average hours of training spend per FTE1 12.1 15.5 11.2
Proportion of employees covered by performance review2 77.0% 79.4% 90%
Employee Net Promoter Score3 n/a +16 +33 At least +30 by 2025

1 In 2020, we experienced a decrease in the average hours per FTE of training due to the time required to shift many face-to-face learning to virtual learning (in adaptation to COVID-19 circumstances), and the consequent increase in virtual learning sessions that are typically shorter than live sessions

2 2020 data based on a total of 55,393 employees in salaried grades.

3 We measure 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.

 

 

Download Community support performance

Community support
Indicators 2018 2019 2020
Number of social contributions supported by PMI (charitable donations/community investments) 280 170 (145/25) 702 (681/21)
Number of partner organizations supported by PMI’s social contributions 239 147 600
Number of countries where projects supported by PMI’s social contributions were implemented 63 43 78
Number of direct beneficiaries of projects supported by PMI’s social contributions >300,000 >467,000 >2,700,000
Value of cash contributions (in millions USD) (charitable donations/community investments) 28.3 17.0 (14.8/2.2) 47.8 (46.0/1.8)
Approximate value of in-kind donations (in ’000 USD) 260 205 12,190
Approximate value of management costs of PMI’s social contributions (in ’000 USD) n/a 650 769
Approximate total number of volunteer hours by PMI employees3 18,000 16,700 15,272
Approximate value of employee time spent on volunteering (in ’000 USD) 500 430 440

Note: In 2020, when the COVID-19 pandemic emerged as a major crisis, we reassessed our priorities and shifted our focus toward providing support in a quick and effective manner, setting a global corporate donation fund.

Pillar 4 - Protecting the environment

 

Download Climate protection protection

Climate protection
Indicators 2018 2019 (baseline) 2020 Goals Scope
CO2e scope 1 (metric tons)1 408,162 397,210 322,633 PMI factories, offices, and fleet2
CO2e scope 2 (metric tons)1 175,785 158,672 90,366 PMI factories and offices
CO2e scope 1+2 (metric tons)1 583,947 555,882 412,999 Carbon neutrality by 2030 PMI factories, offices, and fleet
CO2e scope 1 from fleet (metric tons) 114,936 111,400 79,457 PMI fleet
CO2e emissions from fleet (Kg CO2e per km driven) 221 222 216 PMI fleet
CO2e absolute reduction in PMI fleet versus 2019 baseline n/a n/a 29% PMI fleet
Proportion of hybrid or electrical vehicles in our fleet n/a n/a 4.7% PMI fleet
CO2e scope 3 (’000 metric tons) 4,714 4,309 3,590 PMI value chain
CO2e scope 1+2+3 (’000 metric tons) 5,298 4,865 4,003 Carbon neutrality by 2050 PMI value chain
Carbon offsetting certificates (metric tons)3 956 1,242 3,297 PMI factories, offices, and fleet
CO2e scope 1+2 absolute reduction versus 2019 baseline n/a n/a 26% 50% by 2030 (SBT) PMI factories, offices, and fleet
CO2e scope 3 absolute reduction versus 2019 baseline n/a n/a 17% 50% by 2030 (SBT) PMI value chain
Number of carbon-neutral factories 0 1 2 All by 2030 PMI factories
CO2e scope 1+2+3 intensity (kg per million cigarettes equivalent)4 6,552 6,148 5,482 PMI value chain
CO2e scope 1+2 intensity (kg per million cigarettes equivalent)4 722 702 556 PMI factories, offices, and fleet
CO2e scope 3 biogenic emissions (’000 metric tons) 3,442 2,419 2,139 PMI value chain
CO2e scope 1+2+3 absolute reduction versus 2019 baseline n/a n/a 18% PMI value chain
CO2e scope 1+2+3 intensity reduction versus 2019 baseline n/a n/a 11% PMI value chain
CO2e absolute emissions reduction in PMI tobacco supply chain versus 2019 baseline n/a n/a 28% 35% by 2025 50% by 2030 PMI tobacco supply chain
CO2e intensity reduction in tobacco curing versus 2019 baseline n/a n/a 44% 75% by 2025 PMI tobacco supply chain
Proportion of flue-cured tobacco purchased cured with renewable fuel sources (self-sufficient firewood and biomass adoption) 46% (33% + 13%) 51% (36% + 15% 67% (45% +22%) 70% by 2021 PMI tobacco supply chain
Proportion of Virginia tobacco purchased cured with coal 15% 16% 11% PMI tobacco supply chain
Approximate total number of curing barns upgraded since 2014 (cumulative) 76,000 80,800 82,500 PMI tobacco supply chain
Total energy consumption (gigajoules) 9,353,222 9,456,576 7,909,157 PMI factories, offices, and fleet
Proportion of total energy consumed that is from renewable sources 23% 27% 29% PMI factories, offices, and fleet
Energy intensity (gigajoules per million cigarettes equivalen 11.57 11.95 10.83 PMI factories, offices, and fleet
Fuel consumption from non- renewable sources (gigajoules) 5,988,022 5,819,072 4,719,647 PMI factories, offices, and fleet
Fuel consumption from renewable sources (gigajoules) 61,163 128,967 91,680 PMI factories, offices, and fleet
Total electricity consumed (MWh) 899,706 959,723 832,292 PMI factories and offices
Total electricity consumed that is from renewable sources (MWh) 546,944 623,940 621,620 PMI factories and offices
Proportion of electricity used and purchased that is from renewable sources 61% 65% 75% PMI factories and offices
Proportion of electricity used and purchased that is from renewable sources 65% 72% 78% 100% by 2025 PMI factories
CDP Climate Change rating A A A A

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

2 We include warehouses in PMI offices.

3 In 2020, 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 data according to the new model. Other figures that include scope 3 emissions have also been restate

4 2020 figure includes carbon off-setting certificates purchased in our factories in Lithuania and Switzerland, as well as our Operations Center in Switzerland.

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


Note: Our inventory of GHG emissions (scope 1, 2, and 3) in 2020 is subject to external verification by SGS. In 2020, we achieved significant reductions in emissions, partially driven by COVID-19 impact (page 102 of PMI Integrated Report 2020) but also by accelerated efforts toward our carbon neutrality ambition.

 

 

Download Littering prevention performance

Littering prevention
Indicators 2019 2020
Number of anti-littering initiatives conducted 54 33
Number of affiliates with an anti-littering strategy 31 47
Number of affiliates participating in litter cleanup initiatives1 31 n/a
Number of participants in litter cleanup initiatives (PMI employees and other volunteers)1 3,962 n/a
Number of cigarette butts collected during litter cleanup initiatives1 827,160 n/a

1 In 2020, due to the COVID-19 restrictions, we did not initiate a global mobilization among our employees to participate in cleanup events and did not track this data even though some affiliates were able to conduct some targeted activities.


Note: These indicators were introduced in 2019.

 

 

download Product eco-design and circularity performance

Product eco-design and circularity
Indicators 2018 2019 2020 Goals
Effective recycling rate of IQOS devices1 30% 29% 40% 70% by 2023 80% by 2025
Proportion of IQOS device sales volume covered by the CIRCLE program2 66% 39% 48% 100% by 2025
Recycling rate of IQOS devices at the CIRCLE hubs (weighted average)3 45% 74% 84% >80% (ongoing)
Total volume of materials recycled at the CIRCLE hubs (in tons) n/a 153 191
Proportion of packaging material that is recyclable4 94.9% 94.9% 94.7% 100% by 2025
Proportion of packaging material that is from renewable source4 90.0% 89.6% 89.8% 95% by 2025
Reduction of packaging materials used versus 2018 baseline5 Baseline -1% -5% -15% by 2025

1 The effective recycling rate is calculated based on the proportion of IQOS device sales volume overed by the CIRCLE program multiplied by the recycling rate of IQOS devices at the CIRCLE hubs (weighted average).

2 Recycling rate: Percentage of the weight of each device that is recycled, weighted-average depending on device type and processing facility (figures provided for PMI-developed products processed through CIRCLE hubs, varied by device type, zero landfill, remainder to energy recovery or material loss).

3 We established our two recycling CIRCLE hubs in 2018. We expanded the number of markets covered by CIRCLE in 2019 and 2020, the decrease in coverage of sales volume is explained by IQOS growth in markets not yet covered by the program.

4 2018–2020 volume has been restated to include shipping cases.

5 Includes portfolio/volume mix and inventory movement. Includes shipping cases.2019 figure restated due to revised actual figures on amounts of board purchased.

 

 

download Forest protection performance

Forest protection
Indicators 2018 2019 2020 Goals
Proportion of tobacco purchased cured at no risk of deforestation of primary and protected forests1 90% 97% 100%
Proportion of flue-cured tobacco purchased cured with renewable sources (self-sufficient firewood and biomass adoption) 46% (33% + 13%) 51% (36%+15% 67% (45% + 22%) 70% by 2021
Approximate cumulative number of curing barns upgraded since 2014 76,000 80,800 82,500
CDP forest rating B A- A

1 To align to most-widely accepted definitions and metrics on measuring forest protection impacts, we decided to adopt the definition of “high conservation value” forests coming from the Accountability Framework Initiative. Please see our Zero Deforestation Manifesto for definitions.

 

 

Download Water stewardship performance

Water stewardship
Indicators 2010 baseline 2018 2019 2020 Goals Scope
Total amount of water withdrawn (’000 m3) 3 4,998 4,371 4,008 3,375 PMI factories
Total amount of water consumed (withdrawn minus discharged) (’000 m3) 2,449 1,958 1,883 1,619 PMI factories
Water ratio (water withdrawn in m3 per million cigarettes equivalent)1 5.35 5.14 4.74 4.20 3.1 by 2022 PMI factories
Number of fines2 0 1 1 PMI factories
Cumulative number of local water risk assessments performed 8 15 23 100% coverage Tobacco supply chain
Quantity of blue water used per ton of tobacco produced (m3)3 266 330 307 Tobacco supply chain
Total amount of water used (’000 m3) 119,600 138,200 115,000 Tobacco supply chain
CDP water security rating B A A A PMI

1 Water intensity is measured in m3 per million cigarettes produced equivalent.

2 Fines above USD 10,000 (or equivalent in converted currency). 2020 fine pertained to sewage water contamination exceeding national limitations in our factory in Ukraine

3 Blue water refers to water used for irrigation.

 

 

Download Biodiversity performance

Biodiversity
Indicators 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% 100%
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% 97% 100% by crop year 2020

1 The 2020 crop season data were not available at the time of the publication of PMI's Integrated Report 2020

 

 

Download Waste reduction performance

Waste reduction
Indicators 2010 baseline 2018 2019 2020
Total amount of waste generated (metric tons) 143,596 134,367 131,104 119,750
Proportion of total waste generated that is recycled n/a 84% 84% 85%
Proportion of total waste generated that is incinerated with energy recovery n/a 12% 12% 11%
Proportion of total waste generated that is disposed to landfill n/a 4% 4% 3%
Proportion of total waste generated that is incinerated without energy recovery n/a <1% <1% <1%
Amount of hazardous waste generated (metric tons) n/a 1,423 1,486 1,266
Proportion of hazardous waste generated that is recycled n/a 41% 33% 38%
Proportion of hazardous waste generated that is incinerated with energy recovery n/a 44% 49% 43%
Proportion of hazardous waste generated that is disposed to landfill n/a 6% 8% 7%
Proportion of hazardous waste generated that is incinerated without energy recovery n/a 9% 10% 13%
This online content about our Integrated Report should be read in conjunction with PMI’s 2020 Integrated Report. The information and data presented here cover the 2020 calendar year or reflect status at December 31, 2020, worldwide, unless otherwise indicated. Where not specified, data come from PMI estimates. Please also refer to 'About this report' on page 3 of the 2020 Integrated Report 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 145. In the 2020 Integrated Report and in related communications, the terms “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 U.S. securities laws and/or disclosures required by the U.S. Securities and Exchange Commission.