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These controls are stated in the section below and serve as a base for the independent limited assurance run by PwC.

Index governance

Index governance

001 – Review and approval of the  Index structure

The control ensures that the  Index and its KPIs align with PMI’s Sustainability Strategy and Roadmap, and that the structure is approved by PMI Leadership and the Board of Directors. The control is tested by verifying documentation of the approval process, including the approval of the Board of Directors.

002 – Review and approval of the Index performance ranges

The control ensures that the performance ranges linked to every Index KPI are specific, measurable, achievable, and owned by the organization. The control is tested by reviewing approval records, and confirming final approval by the Board of Directors.

003 – Establishing Index KPI ownership

The control ensures that each Index KPI is overseen by a senior leader, prioritizing sustainability goals and integrating them into the strategic agenda. The control is tested by checking assignment records, verifying senior leader oversight, and reviewing KPI performance management documentation.

004 – Establishing and reviewing  Index KPI definitions as part of KPI standards

The control establishes well-defined rules for Sustainability Index KPIs documented in KPI standards, including key definitions, scope, calculation methodology, and data management. The control is tested by reviewing KPI standards documentation, validating alignment with external reporting standards, and confirming that updates are published.

Index preparation

Index preparation

005 – Regular reviews of the  Index projections for completeness and accuracy

The control ensures regular monitoring and review of KPI projections for completeness and accuracy, escalating deviations as needed. The control is tested by verifying regular forecast records, checking for updates and risk escalations, and reviewing communication to the Sustainability Committee.

006 – Individual  Index KPI values calculation and approval

The control ensures that KPI values accurately reflect performance, with standardized calculation methods and approval by KPI owners. The control is tested by reviewing calculation methodologies, validating KPI values against internal standards, and confirming approval by KPI owners.

007 – KPI values submission and validation as part of the Value Report submission process

The control ensures data consistency through a standard data submission, approval, and validation process. The control is tested by checking data submission records, verifying approval by KPI owners and teams, and reviewing consistency checks performed by Sustainability Controlling.

008 –  Index calculation and validation for applicable PSU vesting years

The control ensures consistency in  Index calculation using a standard method, and is tested by validating  Index calculations, checking data integrity, and confirming approval by the Group Chief Sustainability Officer.

009 – Sustainability Index result publication for applicable PSU vesting years 

The control ensures the provision of transparency to external stakeholders regarding the  Index results and PSU awards, and is tested by reviewing publication records, verifying the accuracy of published results, and linkage to PSU awards.

Independent verification 

Although not required by law, PMI has proactively subjected its VALUE Index to independent verification, recognizing the Index’s role in linking sustainability performance to executive compensation.

Our first index (2022–2024) had its governance and preparation processes externally assured by PwC. For the second index cycle (2023–2025), the index results were also externally assured by PwC, in accordance with the controls and procedures outlined in our  Index governance process.  (see independent limited assurance report here). 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. The independent assurance statements are available for review (see assurance statements here). This independent verification provides stakeholders with clear insight into our performance assessment methodology and demonstrates that KPI evaluation follows rigorous, well‑defined protocols. We plan to continue assuring our indexes in future cycles.

As part of our ongoing commitment to transparency and data quality, we are aligning our Sustainability Index KPIs with  regulations  such as CSRD. This alignment enhances comparability of non‑financial performance and strengthens data‑quality expectations. For example, our GHG emissions reporting methodology has been updated to meet CSRD requirements for 2025 reporting, ensuring consistency with the regulatory standards.

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.

 

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PMI reports sustainability performance primarily through its annual Value Report, and on an ad hoc basis in other external communications.

KPI definitions

Learn more about key definitions, KPI descriptions, scopes, calculation methods, data assumptions, collection and management processes, governance, and verification details for each KPI included in the PMI's VALUE index.