Stakeholder engagement
PMI regards stakeholder engagement as fundamental to the creation of shared and sustainable value. Actively seeking open to dialogue with our stakeholders allows us to understand their expectations and respond accordingly. Continuous engagement also enables us to build a shared understanding of contingency issues, proactively respond to concerns, identify potential areas of compromise, stay abreast of global trends and market expectations, and find solutions that are good for our stakeholders and business.
While PMI’s commitment to its transformation is unwavering, we recognize that we cannot complete the journey alone. Signed by every member of our Board of Directors, PMI’s Statement of Purpose articulates our company’s purpose and transparently specifies those stakeholders most critical to long-term value creation and sustainability.
Our periodic sustainability materiality assessments provide valuable insights and allow us to gauge the relevance of various topics among key stakeholder groups.
How we are engaging with our stakeholders
Our stakeholder engagement incorporates both structured and ad hoc interactions. Above all, it is guided by transparency, integrity, and respect, and governed by our Code of Conduct and its accompanying policies (Principles and Practices), summarized in this overview of our engagement principles.
Engaging with internal and external stakeholders is critical to achieving our purpose. Our ability to successfully transform requires that we work together with various segments of society to create a paradigm shift in which cigarettes become obsolete.
The following section features our approach and engagement with key stakeholder groups, the most significant topics discussed, and our responses to them.
ConsumersAdult smokers and other adult nicotine product users |  |
Why we engage
Adults who smoke and otherwise would not quit are at the heart of our business transformation. The best choice a smoker can make is to quit tobacco and nicotine altogether. For adult smokers who don’t quit, we aim to ensure their full awareness of the existence of smoke free products and of the benefits of switching to these alternatives, versus continued smoking, and support them in this conversion journey so that as many adult smokers who would otherwise continue to smoke as possible will switch to them and never return to cigarettes. We do this by taking a consumer-centric approach to developing scientifically-substantiated nicotine-containing products, and commercializing these better alternatives that aim to meet adult smokers’ preferences and needs.
How we engage
- Digital interfaces
- Surveys, questionnaires, and focus groups
- Hotlines and call centers
- Consumer events and awareness-raising campaigns
- Stores and e-commerce
Key topics discussed
- Access to and benefits of smoke-free products compared with continued smoking
- Scientifically substantiated claims
- Product innovation and circularity
- Quality and services
How we are responding
- Investing in R&D and strategic acquisitions to propel our smoke-free vision and meet consumer needs
- Moving from a business-to-business (B2B) to an increasingly consumer-centric model to commercialize smoke-free products and support users in their conversion journey
- Broadening access to smoke-free products for adult smokers and nicotine users by working to improve consumer awareness and product availability, affordability, and acceptability
- Embedding eco-design and circularity principles in product development and launching take-back services for our products’ end-of-life
EmployeesEmployees, management, work councils, trade unions |  |
Why we engage
Our employees are drivers of change and the ambassadors of our purpose. Their engagement and dedication are essential to making PMI’s vision and strategic goals a reality. We continuously communicate with and listen to our employees and strive to provide them with opportunities for growth and development within an inclusive workplace
How we engage
- Regular surveys
- Group-wide intranet and other internal platforms
- Performance and development reviews
- Internal events and conferences
- Training programs
- Recognition schemes
- Employee resource groups
Key topics discussed
- Company culture and purpose
- Diversity, equality, equity, and inclusion
- Health, safety, and well-being (including work–life balance)
- Job security, talent attraction, lifelong learning opportunities, retention
- Protection of employee data
How we are responding
- Consistently and clearly embedding our purpose across our company culture
- Promoting living wages, equal pay for equal work, and equal access to opportunities
- Providing flexible work, paid parental leave, and volunteer time
- Raising awareness around mental health and supporting employee well-being via a variety of programs and initiatives
- Upholding workplace health and safety
- Fostering an inclusive environment that unlocks the potential of diversity among our workforce
- Promoting global employee resource groups, on a variety of diversity dimensions
- Expanding employee access to lifelong learning programs to promote upskilling and reskilling
Supply chain and business partnersFarmers and farmworkers, farmers’ associations, contractors, suppliers, wholesalers, business partners, third-party-operated manufacturers |
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Why we engage
Many of the people working in our supply chain rely on PMI for a substantial portion of their income. PMI aims to treat its suppliers fairly and ethically and is dedicated to acting as a good partner to other companies, large and small, that help us achieve our ambitions. Collaborating with others across our supply chain helps us address social and environmental challenges and progress against our strategic goals.
How we engage
- Compliance, audits, and risk assessments
- Strategic partnerships
- Supplier forums and events
- Meetings, workshops, and training sessions
- On-site visits
- Digital retailer interfaces
Key topics discussed
- Supply and delivery challenges
- Opportunities for growth and innovation
- Working conditions (including wages, health and safety, and other labor-related matters)
- Responsible commercialization
- ESG performance and expectations
How we are responding
- Grounding supply chain strategy in our Responsible Sourcing Principles
- Transitioning to an increasingly diversified supply chain
- Promoting safe and fair working conditions throughout our supply chain
- Seeking science-based reduction of our scope 3 greenhouse gas emissions and collaborating with our suppliers to address other environmental challenges
- Assessing, monitoring, and helping improve the sustainability performance of our critical suppliers
Finance communityPMI shareholders, equity and fixed-income investors, lending institutions, insurance companies, financial analysts, rating agencies |  |
Why we engage
Engaging with the finance community is key to promoting a comprehensive understanding of PMI’s unique value proposition, strategy, and performance. Furthermore, investment decisions increasingly integrate ESG criteria, and we are confident that our transformation is creating value for PMI and for society
How we engage
- Annual shareholder meeting
- Events, conferences, and roadshows
- Earnings calls, Investor Day, and ESG webcasts
- Presentations, reports, and publications
- ESG ratings and rankings
- Financing instruments
- Perception studies
Key topics discussed
- Future-proofed business model
- Growth and returns from smoke-free transformation
- Regulatory and fiscal environment
- Governance and remuneration
- Capital allocation
- ESG priorities, risks, and performance
- Technological advancements to drive product innovation, commercialization, and operational efficiency
- Quality of reporting on ESG and business transformation
How we are responding
- Continuing to grow our smoke-free business while staying competitive in the cigarette category during our transition
- Periodically refreshing our sustainability materiality assessment
- Reporting progress via our Integrated Report and Business Transformation Metrics
- Linking executive compensation to ESG performance, including via our Sustainability Index
- Integrating our smoke-free transformation into our financing strategy
- Supporting PMI’s smoke-free and wellness and healthcare ambitions via disciplined investments
RegulatorsPolicymakers, intergovernmental organizations, regulatory bodies, standard setters, government authorities (including legislators), customs organizations |  |
Why we engage
Dialogue with national and local governments and regulators allows us to understand their priorities and concerns and share our views, objectives, and scientific findings. We engage with policymakers in developing proposed legislation and regulations that may impact a smoke-free future and differentiate smoke-free products from combustible products. We advocate for regulation that would accelerate the end of smoking, foster innovation, and minimize unintended consequences.
How we engage
- Ongoing dialogue
- Forums and events
- Public consultations
- Reports and publications
- Trade associations
- Training and presentations
Key topics discussed
- Risk-proportionate regulatory framework for smoke-free products
- Responsible marketing and commercialization, including youth access prevention
- Illicit trade prevention
- Environmental and social welfare
- Fiscal and regulatory compliance
- Data protection and cybersecurity
- Standards for transparency and quality reporting
How we are responding
- Transparently publishing our scientific findings on smoke-free products PMIscience.com
- Paying taxes commensurate with our economic activities
- Deploying youth access prevention safeguards across retail channels
- Implementing and monitoring compliance with internal codes and standards, especially PMI’s Code of Conduct
- Preventing illicit trade via tracking and tracing processes and technologies and funding PMI IMPACT
- Improving the sophistication and standardization of our ESG reporting
Public health communityScientific community, academia, researchers, public health agencies |  |
Why we engage
Engaging with the public health community is of utmost importance. Our business transformation and expanded purpose present an immense opportunity to advance public health. By conducting our R&D with scientific rigor, sharing our findings, and asking the community to scrutinize our products and the growing body of scientific evidence surrounding them, we aim to engage constructively on this topic and collectively seize the immense opportunity smoke-free products present for the current generation of adult smokers. By leveraging our expertise and investment in aerosol chemistry and physics, device technology, clinical research, and best-in class preclinical safety and inhalation models, we aim to move from a value proposition of doing less harm toward one where we can seek to have a net positive impact on society in the longer term.
How we engage
- Conferences, forums, and events
- Reports, publications, articles, white papers, and studies
- Dedicated scientific website PMIscience.com
- Online platforms for data transparency and reproducibility in science
- Applications and submissions
Key topics discussed
- Product innovation to reduce health impacts at the individual and population levels
- Scientific research, including scientific methods and protocols, data and results
- Business transformation strategy and progress in phasing out cigarettes
- Youth access prevention
- Research transparency and data
- Product environmental impact
How we are responding
- Developing science-based, less harmful alternatives to smoking and expanding our smoke-free product portfolio
- Investing in smoke-free product innovation R&D
- Publishing findings and other scientific publications on PMIscience.com
- Acquiring like-minded, science-driven companies to continue evolving into a broader lifestyle, consumer wellness, and healthcare company
- Initiating studies such as real-world evidence studies analyzing the impact at the population level of the introduction of smoke-free products
Civil societyAcademia, local communities, civil society organizations, nongovernmental organizations (NGOs), multistakeholder organizations and initiatives, media |  |
Why we engage
From exchanging information and best practices to forging close partnerships, engaging with civil society actors helps inform our strategy, define our priorities, and advance sustainable solutions to common challenges.
How we engage
- Partnerships and memberships
- Social contributions
- Open dialogue
- Independent academic case studies
- Media interviews, opinion pieces, social media, and articles
Key topics discussed
- ESG performance
- Sustainability strategy and reporting
- Business transformation
- Product innovation
How we are responding
- Partnering with leading civic organizations to improve our ESG performance and implement impactful solutions
- Joining leading corporate sustainability membership organizations (see here)
- Sharing data and progress with academic organizations, enabling them to write case studies analyzing our progress, challenges, and opportunities
- Leveraging a range of media channels to promote open dialogue and discussions about business impacts and corporate strategy
- Transparently disclosing our ESG performance, sustainability materiality assessments, progress, challenges, opportunities, and aspirations
Memberships and alliances
