Philip Morris International included in Dow Jones Sustainability World Index for the first time12 Dec 2023
Philip Morris International (PMI) has been included in the Dow Jones Sustainability World Index for the first time.1 The World Index is one of the most reputable benchmarks for measuring the sustainability performance of companies worldwide.
The World Index includes the top 10 percent of the largest 2,500 companies in the S&P Global Broad Market Index based on long-term economic, environmental, and social criteria.
“Investors and other financial stakeholders place increasing value on reliable, robust, and timely measures of sustainability performance,” said Emmanuel Babeau, Chief Financial Officer, PMI. “ESG ratings are one part of the input dataset for many institutional investors.
“Through our annual Integrated Report, and the ever-strengthening processes and initiatives that underpin it, we aim to provide a holistic and extensive view of our performance across the most material sustainability issues for our business.”
PMI scored 85 out of 100 in the 2023 S&P Global CSA2 reflecting a significant increase of 21 points since it first began engaging with the ranking in 2018. This is the first year PMI has recorded the highest CSA score out of 13 companies assessed in the tobacco industry by S&P.3
It’s not only S&P that has recognized PMI’s best-in-class performance—earlier this month, ISS ESG Corporate Rating awarded PMI “Prime” status according to its rating methodology.4 Prime status is awarded to companies with an ESG performance above a sector-specific threshold, meaning that they fulfil ambitious absolute performance requirements. According to ISS, the Prime rating classification qualifies companies for responsible investment. To date, PMI is the only company in the tobacco industry to ever receive this qualification.
“A reflection of hard work, perseverance, deep commitment to sustainability, impactful performance, and best-in-class reporting allows PMI to be recognized externally for its leadership in sustainability performance and transparency,” said Jennifer Motles, PMI’s Chief Sustainability Officer. “We are the only company in our sector included in the Dow Jones Sustainability World Index, leading the tobacco industry in this rating for the first time.
“Our north star is to create a net positive impact that benefits our company, shareholders, consumers, and society. This recognition signals we are on the right track. Our approach to sustainability is deeply embedded in our corporate strategy and is a true opportunity for innovation, growth, and purpose-led, impact-driven, long-term value creation. I look forward to the journey ahead as we remain committed to transform for good.”
1 Index inclusion announced on Dec. 8, 2023, effective as of Dec. 18, 2023
2 CSA Score as of Nov. 24, 2023
3 Sector ranking based on CSA Score as of Nov. 24, 2023
4 ISS ESG Rating as of Nov. 21, 2023