Philip Morris International’s ESG Performance Recognized by S&P Dow Jones Indices; Company Included in Dow Jones Sustainability Index North America for Second Consecutive Year
November 22 2021 - 06:30AM
Business Wire
Philip Morris International Inc. (PMI) (NYSE: PM) has been
included for the second consecutive year in the Dow Jones
Sustainability Index (DJSI) North America. The index recognizes the
top 20 percent of sustainability performers among the 600 largest
U.S. and Canadian companies in the S&P Global Broad Market
Index—those that exhibit best-in-class performance against
environmental, social, and governance (ESG) metrics, as assessed by
S&P Global.
Underpinning PMI’s inclusion in the index, the company scored 84
(out of 100) in the 2021 S&P Global Corporate Sustainability
Assessment, reflecting an improvement of 10 points over the prior
year and a top decile position in the tobacco industry.1
Importantly, PMI led the tobacco industry in 10 of the 24 criteria
assessed1, including Innovation Management, which evaluates
companies’ research and development spending, product innovations,
and portfolio of tobacco alternatives and smoke-free products.
“ESG ratings can spur greater transparency and incentivize
companies to improve their performance,” said Jennifer Motles,
Chief Sustainability Officer. “We are proud to again be part of the
Dow Jones Sustainability Index North America, which further
confirms the significant progress we’re making to transform our
business.”
“For many companies, the most material sustainability topics
relate to their products,” she continued. “At PMI, addressing the
impact of our products on public health, society and the
environment remains the focus and core of our strategy. 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. In the case
of our industry, this means successfully phasing out cigarettes to
accelerate the end of smoking.”
PMI is leading the industry transformation to smoke-free
products, which made up approximately 29% 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% of full-year
net revenues by 2025.
Manjit Jus, Global Head of ESG Research, S&P Global said:
“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."
PMI is also recognized by MCSI with an ESG Rating of BBB2 and by
Sustainalytics with an ESG Risk Rating Score of 22.93. Additional
information on PMI’s sustainability efforts and ESG performance is
available on the company’s sustainability webpage.
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.
1 Score date: November 12, 2021. 2 September 22, 2021 report. 3
October 19, 2021 report. Note: A Sustainalytics score of zero out
of 100 represents the lowest ESG risk.
Forward-Looking and Cautionary Statements
This press release contains projections of future results and
other forward-looking statements. Achievement of future results is
subject to risks, uncertainties and inaccurate assumptions. In the
event that risks or uncertainties materialize, or underlying
assumptions prove inaccurate, actual results could vary materially
from those contained in such forward-looking statements. Pursuant
to the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995, PMI is identifying important factors
that, individually or in the aggregate, could cause actual results
and outcomes to differ materially from those contained in any
forward-looking statements made by PMI.
PMI's business risks include: excise tax increases and
discriminatory tax structures; increasing marketing and regulatory
restrictions that could reduce our competitiveness, eliminate our
ability to communicate with adult consumers, or ban certain of our
products in certain markets or countries; health concerns relating
to the use of tobacco and other nicotine-containing products and
exposure to environmental tobacco smoke; litigation related to
tobacco use and intellectual property; intense competition; the
effects of global and individual country economic, regulatory and
political developments, natural disasters and conflicts; changes in
adult smoker behavior; lost revenues as a result of counterfeiting,
contraband and cross-border purchases; governmental investigations;
unfavorable currency exchange rates and currency devaluations, and
limitations on the ability to repatriate funds; adverse changes in
applicable corporate tax laws; adverse changes in the cost,
availability, and quality of tobacco and other agricultural
products and raw materials, as well as components and materials for
our electronic devices; and the integrity of its information
systems and effectiveness of its data privacy policies. PMI's
future profitability may also be adversely affected should it be
unsuccessful in its attempts to produce and commercialize
reduced-risk products or if regulation or taxation do not
differentiate between such products and cigarettes; if it is unable
to successfully introduce new products, promote brand equity, enter
new markets or improve its margins through increased prices and
productivity gains; if it is unable to expand its brand portfolio
internally or through acquisitions and the development of strategic
business relationships; or if it is unable to attract and retain
the best global talent. Future results are also subject to the
lower predictability of our reduced-risk product category's
performance.
PMI is further subject to other risks detailed from time to time
in its publicly filed documents, including the Form 10-Q for the
quarter ended September 30, 2021. PMI cautions that the foregoing
list of important factors is not a complete discussion of all
potential risks and uncertainties. PMI does not undertake to update
any forward-looking statement that it may make from time to time,
except in the normal course of its public disclosure
obligations.
Philip Morris International: Delivering a Smoke-Free
Future
Philip Morris International (PMI) is leading a transformation in
the tobacco industry to create a smoke-free future and ultimately
replace cigarettes with smoke-free products to the benefit of
adults who would otherwise continue to smoke, society, the company,
its shareholders and other stakeholders. PMI is a leading
international tobacco company engaged in the manufacture and sale
of cigarettes, as well as smoke-free products, associated
electronic devices and accessories, and other nicotine-containing
products in markets outside the U.S. In addition, versions of PMI's
IQOS Platform 1 device and consumables have received marketing
authorizations from the U.S. Food and Drug Administration (FDA)
under the premarket tobacco product application (PMTA) pathway; the
FDA has also authorized the marketing of a version of IQOS and its
consumables as a Modified Risk Tobacco Product (MRTP), finding that
an exposure modification order for these products is appropriate to
promote the public health. PMI is building a future on a new
category of smoke-free products that, while not risk-free, are a
much better choice than continuing to smoke. Through
multidisciplinary capabilities in product development,
state-of-the-art facilities and scientific substantiation, PMI aims
to ensure that its smoke-free products meet adult consumer
preferences and rigorous regulatory requirements. PMI's smoke-free
product portfolio includes heat-not-burn products,
nicotine-containing vapor products and oral nicotine products. As
of September 30, 2021, PMI's smoke-free products are available for
sale in 70 markets in key cities or nationwide, and PMI estimates
that approximately 14.9 million adults around the world have
already switched to IQOS and stopped smoking. For more information,
please visit www.pmi.com and www.pmiscience.com.
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Philip Morris International Investor Relations: New York: +1
(917) 663 2233 Lausanne: +41 (0)58 242 4666 Email:
InvestorRelations@pmi.com Media: Lausanne: +41 (0)58 242 4500
Email: David.Fraser@pmi.com
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