Performance metrics overview

Unless otherwise stated, all applicable business transformation metrics include Swedish Match related data as of November 11, 2022 (acquisition date), as well as Vectura Fertin Pharma.

In 2023, we evaluated and republished a new set of aspirations for 2030 to ensure they remain ambitious, reasonable, and achievable in the context of a dynamic and evolving smoke-free industry, and impacts of our recent acquisitions.

¹ Figures pertain to total IQOS users. See Glossary.
² For definition of net revenues related to smoke-free products, see Glossary. Data excludes the impact related to termination of distribution arrangement in the Middle East in 2023 and the impact related to the Saudi Arabia customs assessments in 2021.
³ For definition of available for sale, see Glossary.
⁴ Excluding PMI Duty Free. World Bank report issued in 2023 is used on a comparative basis for income level classification. For definition of low- and middle-income markets, see Glossary.
⁵ For definition of Heated Tobacco Units and Combustible tobacco products see Glossary.
⁶ 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.
⁷ Direct spend focuses on materials used in the manufacture of our products; it includes tobacco leaf, direct materials, and electronic devices and accessories. Data excludes Swedish Match and Vectura Fertin Pharma.
⁸ Data reflects the number of factories operated and owned by PMI at the end of the respective year. As of 2023 “Smoke-free products factories” is defined as manufacturing facilities producing heated tobacco units and oral nicotine products. Additionally, in 2023, PMI evolved its approach to report the number of factories based on location instead of based on plant. If a facility is one location, but has several physical areas (plants) the facility is counted as one. To provide comparability, 2022 data has been restated on the same basis.

Unless otherwise stated, all applicable business transformation metrics include Swedish Match related data as of November 11, 2022 (acquisition date), as well as Vectura Fertin Pharma.

In 2023, we evaluated and republished a new set of aspirations for 2030 to ensure they remain ambitious, reasonable, and achievable in the context of a dynamic and evolving smoke-free industry, and impacts of our recent acquisitions.

¹ Figures pertain to total IQOS users. See [Glossary].
² For definition of available for sale, see [Glossary].
³ Excluding PMI Duty Free. World Bank report issued in 2023 is used on a comparative basis for income level classification. For definition of low- and middle-income markets, see [Glossary].
⁴ Investments reflect research, product and commercial development, production capacity, scientific substantiation, and studies on adult smoker understanding. Figures do not include Swedish Match.
⁵ Data reflects the number of factories operated and owned by PMI at the end of the respective year. As of 2023 “Smoke-free products factories” is defined as manufacturing facilities producing heated tobacco units and oral nicotine products. Additionally, in 2023, PMI evolved its approach to report the number of factories based on location instead of based on plant. If a facility is one location, but has several physical areas (plants) the facility is counted as one. To provide comparability, 2022 data has been restated on the same basis.
⁶ Direct spend focuses on materials used in the manufacture of our products; it includes tobacco leaf, direct materials, and electronic devices and accessories. Data excludes Swedish Match and Vectura Fertin Pharma.
⁷ 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.
⁸ 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.
⁹ IP5 jurisdictions are Europe (patents granted by the European Patent Office), China, South Korea, Japan, and the U.S.
¹⁰ Indicator introduced in 2021, replacing the indicator “number of compliance training sessions conducted on PMI’s Marketing Code,” following the release of new Marketing Codes. Data excludes Swedish Match and Vectura Fertin Pharma.
¹¹ Total shipment volume includes cigarettes, other tobacco products (OTPs), and smoke-free product consumables, See [PMI’s ESG KPI Protocol 2023] for further details. Data excludes Swedish Match and Vectura Fertin Pharma.

Unless otherwise stated, all applicable business transformation metrics include Swedish Match related data as of November 11, 2022 (acquisition date), as well as Vectura Fertin Pharma.

In 2023, we evaluated and republished a new set of aspirations for 2030 to ensure they remain ambitious, reasonable, and achievable in the context of a dynamic and evolving smoke-free industry, and impacts of our recent acquisitions.

¹ These indicators are calculated based on millions of units. For definition of smoke-free products and combustible tobacco products, see [Glossary]. Smoke-free products shipment volume includes volume of smoke-free products that can be converted into cigarette equivalent units, such as heat-not-burn, e-vapor, and oral nicotine. Total shipment volume includes the listed smoke-free products as well as combustible tobacco products: cigarettes and other tobacco products expressed in cigarette equivalent units. Data does not include wellness and healthcare products.
² For definition of net revenues related to smoke-free products, see [Glossary]. Data excludes the impact related to termination of distribution arrangement in the Middle East in 2023 and the impact related to the Saudi Arabia customs assessments in 2021.

¹ For definition of net revenues related to wellness and healthcare, see [Glossary]. 2021 figure includes portion of net revenues reported after acquisition of Fertin Pharma A/S, Vectura Group plc. and OtiTopic, Inc. that took place in the third quarter of 2021.

¹ For further details on the criteria used to determine if a market has a anti-littering program in place, please see [PMI’s Sustainability KPI Protocol 2023].
2 Shipment volume includes heated tobacco units, e-vapor cartridges, and e-vapor disposables. See [PMI’s Sustainability KPI Protocol 2023] for further details.
3 For further details please see [PMI’s Sustainability KPI Protocol 2023]. In 2023, 100 % of product project briefs in scope had eco-design certification requirements included.
4 For the definition of refreshed or repaired devices, please refer to [PMI’s Sustainability KPI Protocol 2023].
5 The effective recycling rate is calculated based on the proportion of device sales volume covered by the CIRCLE program multiplied by the actual recycling rate of devices recycled within the scope of the CIRCLE program (weighted average) excluding energy recovery. Excludes disposable products and non-PMI designed devices.
6 Excludes disposable products and non-PMI-designed devices. We recalibrated our 2025 aspiration to 90% during 2023 to account for regulatory and market developments. Collected devices are considered covered by the CIRCLE program if they are either processed at our centralized CIRCLE hubs or by validated local recycling partners.
7 Recycling rate: percentage of the weight of each device that is recycled, weighted-average depending on device type and processing facility. Reporting in 2023 includes CIRCLE hubs (Hungary and Japan) and validated local recycling vendors that started recycling activities, namely South Korea and Egypt.
8 Prior years' data have been restated for alignment with the principles of design for recyclability by format, as well as expanding coverage of the portfolio

As of 2023 PMI has advanced its data verification process to allow for timely publication of relevant sustainability metrics, including those related to OHS KPIs. With this advancement, metrics market with (◊) are based on actual data from 2023 (usually from January to September – some to August) and estimates for remaining months. This data will be restated with full-year actual figures and made available on our website during 2024.

Our diversity and inclusion data covers around 80% of PMI’s total workforce.

¹ Incorporating Vectura Fertin Pharma, as well as the 2022 acquisition of Swedish Match, PMI employed approximately 82,700 people worldwide at year-end 2023.
² For further details on how we measure progress on this KPI, please see [PMI’s Sustainability KPI Protocol 2023].
³ The calculation data based on a total of 56,527 employees maintained in PMI’s central HR system for a key date of November 1st, 2023.
⁴ We 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. 2023 and 2022 findings exclude Russia (2021 data excluding Russia is 34).
⁵ For definition of contracted employee and contractor, see [Glossary].
⁶ 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.
⁷ Scope covers PMI’s working-tool cars (representing 75% of PMI’s total fleet).
⁸ Scope covers manufacturing facilities producing more than three billion cigarette equivalents annually. 2023 excludes Russia, due to sanctions applied to the country.
⁹ For further details on how we measure progress on this KPI, please see [PMI’s Sustainability KPI Protocol 2023].
¹⁰ For definitions of management positions, managers, directors, senior roles, and senior leaders see [Glossary].
¹¹ For further details on how we measure progress on this KPI, please see [PMI’s Sustainability KPI Protocol 2023].
¹² Data as of March 11, 2024 (27 Company Management members, of whom 5 were women). See [PMI Annual Report 2023] for further details.
¹³ Data as of March xx, 2024 (13 members of PMI’s Board of Directors, of whom 4 were women). See PMI 2024 Proxy Statement for further details.
¹⁴ The mean gender pay gap is calculated as the percentage difference between the sum of annual base salary, bonus, and stock options.
¹⁵ This 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 (STEM). Historical data have been re-stated to remove fixed-term employees and those on salary continuation, aligned to other diversity and inclusion metrics.
¹⁶ Employees holding management roles in revenue-generating functions (i.e., functions responsible for core business objectives or profit and loss).
¹⁷ For the purposes of measuring progress against this indicator, PMI uses the nationality data of employees recorded in our HR systems. The determination of Asian nationalities is based on the regional groupings as listed by the United Nations and we consider the following regions: Central and Southern Asia, Eastern and South-Eastern Asia.
¹⁸ Considers Managing Directors and their direct reports within PMI markets and clusters who have local nationality registered in PMI HR systems. Excludes countries where employee national identity is not collected in PMI HR systems.

¹ Excludes China and Switzerland due to restrictions on farmer income data as well as benchmark development in China. In 2023, we applied new methodology which requires updated family size definitions for our farm profile data, and a resulting detailed and robust set of family size data for each farmer’s family. Considering this preparatory work, we were only able to implement this secondary layer of modelling for Indonesia in 2023. As of 2024, household dependency modelling will be applied for all markets/farmer segments below living income. See [PMI's Sustainability KPI Protocol 2023] for further details on methodology.
² For further details on how we calculate the prevalence of child labor in PMI’s tobacco supply chain please see [PMI’s Sustainability KPI Protocol 2023].
³ Includes children of any age found to be involved in hazardous work.
⁴ Includes light work only.
⁵ Estimated based on surveys that indicate whether the farmer has an improved drinking water source within 1 km or 30 minutes round trip. Excludes China.
⁶ Scope is limited to farmers who provide accommodation to workers (approximately 4 percent of the total farmer base in 2023).

¹  Intensity is measured per million Net revenues in USD (data is based on latest estimates used to run carbon footprint exercise). KPI values are provided as of 2023 to ensure comparability as prior years Net revenues figure does not fully include Swedish Match.
² Excludes electricity consumption from fleet.
³ Emissions from PMI-operated IQOS stores are partially excluded from scope 1+2 emissions, as de minimis. As of 2022 a portion of PMI’s retail stores (representing approx. 10% of total retail surface area) have been included in the scope 1+2 emissions.
⁴ Our 2023 figure includes carbon credit certificates retired in the name of our factories in Argentina, Brazil, Czech Republic, Greece, Indonesia, Jordan, Lithuania, Pakistan, Portugal, Romania, Senegal, Serbia, and Switzerland—in total 18 production centers—as well as our Operations Center in Switzerland and our markets in Australia, Costa Rica, Denmark, Finland, Greece, Mexico, New Zealand, Norway, Portugal, Sweden and Turkey.
⁵ The Net CO₂e scope 1+2 emissions excluding Swedish Match were equal to 265,518 metric tons in 2023 and 297,236 in 2022.
⁶ For further details on scope 3 calculation please refer to the [PMI Value Chain Methodology]. In 2023, we further improved our carbon footprint model and data accuracy; improvements relate to, for example, update of our representative products and improvements/updates on emission factors in several scope 3 categories. This led to previous years being restated accordingly.
⁷ The absolute CO₂e scope 3 reduction vs. 2019 excluding Swedish Match was equal to 11% in 2023, 8% in 2022 and 19% in 2021.
⁸ Intensity is measured in CO₂e per million shipped cigarette equivalent.
⁹ Excludes Swedish Match.

¹ For definitions, please see [PMI’s Zero Deforestation Manifesto] and [PMI’s Sustainability KPI Protocol 2023].
² Indicator is based on the World Resources Institute’s volumetric benefit accounting methodology and is verified by an external third party.
³ Blue water refers to water used for irrigation, excluding rainfall.
⁴ Refers to amount of freshwater withdrawn from municipal sources.
⁵ Water 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.
⁶ Aspiration pertains to priority manufacturing facilities identified based on site overall risk in relation to the watershed, water withdrawal, water consumption, product portfolio, and other strategic considerations. PMI sites that are in low- to medium water risk areas and below 2.5% of PMI manufacturing water footprint are excluded.
⁷ Virtually zero waste to landfill is achieved when the landfill diversion rate is equivalent to 99 percent or greater. Our calculation of zero waste to landfill does not include canteen and sanitary waste, which do not relate to our production processes. It also excludes the mandated waste, generally tobacco, that we are obliged to landfill to respect local regulations.
⁸ Disposal to landfill includes sanitary waste, canteen waste, and waste mandated by authorities to be disposed of in landfill. The number is 0.97%.
⁹ Scope: Manufacturing facilities producing more than three billion cigarette equivalents annually. 2023 excludes Russia, due to sanctions applied to the country.
¹⁰ Fines above USD 10,000 (or equivalent in converted currency).

¹ Suppliers refer to tier 1 suppliers, for definitions see [Glossary].
² Total supply chain spend includes procurement spend and tobacco leaf sourcing spend.
³ Suppliers’ criticality is evaluated considering spend segmentation and nature of component, as well as supply flexibility (single-source/not easily substitutable) as relevant. 2023 figure includes tier 1 suppliers of direct materials and electronics, tier 2 directly managed electronic suppliers, and tobacco leaf suppliers.
⁴ 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 with no open priority issues (electronics). All tobacco purchased by contracted farmers, thereby covered by PMI’s integrated production system, is considered sustainable.
⁵ Procurement spend excludes tobacco leaf sourcing.
⁶ EcoVadis score ranges from 0 to 100, with a minimum threshold score of 45 demonstrating satisfactory sustainability performance.
⁷ This figure includes 47 out of 48 of our electronic critical suppliers sites.
⁸ Following the introduction in 2022 of PMI's sustainable supply chain model, data on tobacco farmers contracted by PMI tobacco suppliers is not available.
⁹ Tobacco farmers whose tobacco are included in PMI packed products.
¹⁰ Data refer to parent companies.