Philip Morris, at the forefront of technology, science and innovation

Miguel Coleta, international director of sustainability, presented the main advances in achieving the company's sustainability objectives in terms of ESG to accelerate the end of cigarettes

Director of Sustainability at Philip Morris International,
Michael Pigtailhas participated in Malaga this Thursday in the
Digital Enterprise Show 2022, the leading event for business digital transformation, to present the main data from the third edition of the company's Integrated Report. A document that collects both the
evolution of the company in the environmental, social and governance framework (ESG), as well as detailed information on the company's strategic vision, performance and value creation model.

As Coleta highlighted during his speech, this report not only reflects the progress made in achieving the company's sustainability objectives, it also offers a
update on his transformation with the aim of accelerating the end of cigarettes, as sustainability and business performance are completely interlinked and mutually reinforcing.

Coleta has exposed in Malaga that Philip Morris International must become a supplier of
effective alternatives for those adult smokers who are not quitting and to do so, they are positioning themselves at the forefront of consumer-focused technology, science and innovation, expanding their business beyond tobacco and nicotine, into areas related to well-being and health, with the aim of having a net positive impact on society in the long term.

A new PMI approach to sustainability

The report presents, in a robust and comparable way, data on the evolution of ESG, including those related to the transformation of the company, with the aim of providing visibility and transparency on the smoke-free future towards which it is working.

Following an assessment of the company's sustainability relevance in 2021, PMI has redesigned its ESG framework, recognizing two distinct thematic areas: those related to PMI products and those related to business operations. This distinction forms the basis of
PMI's new approach to sustainabilitywhich consists of eight clear strategies: four of them aimed at addressing the impact of PMI's products - among which are: accelerating the end of cigarettes, increasing the benefits of smokeless products, seeking the positive impact on health and reduce post-consumer waste - and the other four, aimed at addressing the company's operational impact -where they are: the promotion of an inclusive work environment, the improvement of the quality of life of the employees of the supply chain company supply, address climate change and nature conservation.

Consequently, Philip Morris International's 2025 roadmap has been revamped and now consists of
11 goals divided into those 8 strategies that clearly explain the social and environmental impacts that PMI intends to achieve. In addition, the company has introduced 19 concrete KPIs to show in full transparency how the company assesses progress, making its progress measurable and verifiable, and linking its progress to long-term compensation of its managers.

ESG Performance Highlights

Coleta has shown that progress cannot be stopped and its purpose as a company is to leave cigarettes behind. However, she insists on the importance of
listen and dialogue within the scientific framework that characterizes this transformation that Philip Morris is leading in the sector and, as its director of sustainability has asserted, "the past cannot be changed, but we can act on the present to improve the future, with the help of science".

Coleta has assured that its goal as a company "is that, by 2025, smokeless alternatives represent the
50% of total income of Philip Morris International» and, to achieve this, they have already invested more than nine billion dollars in research, of which more than half a million has been disbursed in 2021. An investment that, as reflected in the report, represents 14 % more than the previous year.

In line with this new roadmap, the Integrated Report reflects that, at the end of 2021, there are already
21.7 million adult users of smokeless products, of which 15 million have permanently switched to these alternatives and have quit smoking. These data allow the
29.1% of Philip Morris International's net income comes from smokeless products, present in 71 markets worldwide, while in 2020 this figure was
23.8%.

Under the premise of placing sustainability at the center of the company's strategy, in terms of the operational impact on diversity and female leadership in 2021, the
39.7% of managerial positions are occupied by women, reaching the objective of
42% for 2022 already in the first quarter of the year. In turn, the company is making progress towards achieving net carbon neutrality in its direct operations by 2025. According to data presented during the event, CO2 emissions have been reduced by
18% and emissions from direct operations have fallen by
33% compared to 2019, when the measurements began. In addition, he recalled that "all the tobacco purchased by Philip Morris International has not posed a risk of deforestation of primary or protected forests", which shows the organization's efforts to protect biodiversity.

Source link