Dow Jones Sustainability Index North America recognizes, once again, PMI’s sustainability performance20 Sep 2021
The Dow Jones Sustainability Index (DJSI) has acknowledged PMI’s environmental, social, and governance (ESG) performance by including the company in its North America index for the second year in a row.
Widely regarded as one of the most respected sustainability ranking systems, the index is generated through the S&P Global Corporate Sustainability Assessment (CSA). It recognizes the top 20 percent of sustainability performers among the 600 largest U.S. and Canadian companies across 61 industries in the S&P Global Broad Market Index. These are the organizations that exhibit best-in-class performance against DJSI’s ESG metrics, as assessed by S&P Global.
As of November 12, 2021, PMI scored 84 (out of 100) in the 2021 S&P Global Corporate Sustainability Assessment. This score reflects an improvement by 10 points compared to the previous year, and places PMI in a top decile position within its industry.
PMI led the tobacco industry in 10 out of 24 criteria assessed and achieved a full score in the Materiality, Environmental Reporting, and Operational Eco-Efficiency criteria (score date: November 12, 2021). Importantly, recognizing PMI’s transformation and unique value proposition, the company also led in the Innovation Management criteria, which evaluates a company’s research and development spending, product innovations, and portfolio of tobacco alternatives and smoke-free products.
Addressing the health impacts of its products is at the core of PMI’s corporate strategy, as is where the company can have the greatest societal impact.
“We believe that going beyond company operations to purposefully address product impacts can encourage business model transformations that lead to a more sustainable economy—and a better future,” said Jennifer Motles, PMI’s Chief Sustainability Officer. “In the case of our industry, this means successfully phasing out cigarettes to accelerate the end of smoking.”
“ESG ratings can spur greater transparency and incentivize companies to improve their performance,” Motles continued. “Being once again included in the Dow Jones Sustainability Index North America further confirms the significant progress we’re making in our business transformation.”
We believe that going beyond company operations to purposefully address product impacts can encourage business model transformations that lead to a more sustainable economy—and a better future.
Manjit Jus, Global Head of ESG Research, S&P Global, welcomed the news: “We congratulate Philip Morris International for being included in the Dow Jones Sustainability Index for North America. A DJSI distinction is a reflection of being a sustainability leader in your industry. The record number of companies participating in the 2021 S&P Global Corporate Sustainability Assessment is testament to the growing movement for ESG disclosure and transparency.”
The full results of the 2021 S&P Global Corporate Sustainability Assessment can be viewed on S&P Global’s website.
PMI is leading the industry transformation to smoke-free products, which made up approximately 29 percent of the company’s net revenues in the third quarter of 2021. The company’s ambition is for smoke-free products to account for more than 50 percent of full-year net revenues by 2025.
Note: The term “material,” when used in the context of economic, environmental and social topics, is defined in the referenced sustainability standards, and is 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.