SDG content index 2020

Sustainable Development Goals (SDGs) index
The 2030 Agenda for Sustainable Development is a universal call for action to address global challenges. At PMI, we are committed to doing our part to make the UN SDGs areality. In this index, we have mapped our reporting with the SDGs and their respective targets, referencing where supporting information on our contribution can be found.
Accounting for the SDGs into our reporting helps bring context to our own sustainability ambitions.
This summary should be read in conjunction with PMI’s Integrated Report 2020, and the additional sustainability-related communications available atwww.pmi.com/sustainability. 1

1 The content of PMI’s Integrated Report 2020 content is shaped by a formal sustainability materiality assessment, refreshed in 2019. We have structured our sustainability topics around four strategic pillars of action andtwo tiers. PMI’s Integrated Report 2020 provides information on context, relevance, management approach, targets, and performance for each tier 1 topic. Details about our management and performance on tier 2 topics,
as well as case studies that shed light on our work at country level, are available on www.PMI.com/sustainability. In this summary and in related communications, the term “materiality,” “material,” and similar terms,
when used in the context of economic, environmental and social topics, are defined in the referenced sustainability standards, and are 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.
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SDG content index 2020

SDGs and related targets

Goal 1 – End poverty in all its forms everywhere

1.1.

By 2030, eradicate extreme poverty for all people
everywhere, currently measured as people living on
less than $1.25 a day

1.2

By 2030, reduce at least by half the proportion ofmen, women and children of all ages living in poverty
in all its dimensions according to national definitions

1.4

1.5

2.1

References in PMI 2020 Integrated Report (for tier 1 topics) and
Additional PMI disclosureson PMI.com (for tier 2 topics)
We aim to contribute to reducing poverty and strengthening the welfare of the countries in which we operate. In particular, weseek to improve the livelihoods of the farmers who supply us with tobacco and other agricultural products, their workers andcommunities. Enhancing their socioeconomic well-being is fundamental to prevent child labor and other labor abuses in our
tobacco supply chain.
• Socioeconomic well-being of tobacco farming communities (Contributing to alleviating
poverty; Minimum wages for workers; Case study: Advancing income levels of farmers andfarmworkers in Argentina)• Sustainable supply chain management (Sourcing tobacco responsibly)• Respect for human rights (Assessing human rights impacts in our tobacco supply chain in
Mozambique)• Fair working conditions (Living wage)

Agricultural Labor Practices(ALP) CodeGood Agricultural Practices(GAP)

By 2030, ensure that all men and women, in particular
the poor and the vulnerable, have equal rights toeconomic resources, as well as access to basic
services, ownership and control over land and otherforms of property, inheritance, natural resources,
appropriate new technology and financial services,
including microfinance• Socioeconomic well-being of tobacco farming communities (Contributing to alleviating
poverty; Empowering women in tobacco farming)• Sustainable supply chain management (Sourcing tobacco responsibly)• Respect for human rights (Case study: Assessing human rights impacts in our tobacco supply
chain in Mozambique)By 2030, build the resilience of the poor and those invulnerable situations and reduce their exposure andvulnerability to climate-related extreme events andother economic, social and environmental shocks anddisasters• Climate protection (Driving carbon reduction in our tobacco supply chain)• Sustainable supply chain management (Sourcing tobacco responsibly)• Forest conservation (Protecting forests in our tobacco supply chain)• Community support (Charitable contributions: Addressing local needs of global problems)

Goal 2 - End hunger, achieve food security andimproved nutrition and promote sustainableagriculture

Our efforts to sustainably manage our supply chain and promote good agricultural practices can help improve the livelihoodand food security of the farmers who supply us with tobacco and other agricultural products.

By 2030, end hunger and ensure access by all people,
in particular the poor and people in vulnerable
situations, including infants, to safe, nutritious andsufficient food all year round• Socioeconomic well-being of tobacco farming communities (Contributing to alleviating
poverty)

ALP Quarterly Progress Updates
Human Rights Commitment
Responsible Sourcing Principles(& Implementation Guidance)
2020 List of Social Contributions

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Agricultural Labor Practices(ALP) Code

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2.3

2.4

By 2030, double the agricultural productivity andincomes of small-scale food producers, in particular
women, indigenous peoples, family farmers,
pastoralists and fishers, including through secure andequal access to land, other productive resources andinputs, knowledge, financial services, markets andopportunities for value addition and non-farm
employment
By 2030, ensure sustainable food production systems
and implement resilient agricultural practices that
increase productivity and production, that help
maintain ecosystems, that strengthen capacity foradaptation to climate change, extreme weather,drought, flooding and other disasters and that
progressively improve land and soil quality

Goal 3 – Ensure healthy lives and promote wellbeing for all at all ages

• Socioeconomic well-being of tobacco farming communities (Contributing to alleviating
poverty; Empowering women in tobacco farming)• Sustainable supply chain management (Sourcing tobacco responsibly)

ALP Quarterly Progress Updates
Zero Deforestation Manifesto• Socioeconomic well-being of tobacco farming communities• Sustainable supply chain management (Sourcing tobacco responsibly)• Climate protection (Driving carbon reduction in our tobacco supply chain)• Forest conservation• Biodiversity• Water stewardship

Water stewardship Policy
Environmental Commitment
Responsible Sourcing Principles(& Implementation Guidance)

Cigarette smoking causes serious disease. We believe that product innovation has the potential to benefit adult smokers who
wouldn’t otherwise quit and consequently have a positive impact on public health. We aim to develop and commercialize
scientifically substantiated better alternatives to cigarettes, provide broad access to adult smokers who will not quit, and work
to ensure these products ultimately replace cigarettes. We are also committed to the health, safety, and well-being of our over
70,000 employees.
• Product health impacts• Access to smoke-free productsv
PMIscience.com• Case study: Can innovative products like IQOS accelerate the decline of smoking?
PMI’s Statement of Purpose• Transforming our business• Health, safety, and well-being at work (Employee well-being)

3.4

By 2030, reduce by one third premature mortality
from non-communicable diseases through prevention
and treatment and promote mental health and wellbeing

3.6

By 2020, halve the number of global deaths andinjuries from road traffic accidents• Health, safety, and well-being at work (Focus on fleet safety)

3.9

By 2030, substantially reduce the number of deaths
and illnesses from hazardous chemicals and air, waterand soil pollution and contamination• Socioeconomic well-being of tobacco farming communities (Enhancing access to water
sanitation and hygiene)• Water stewardship (Water quality)

Strengthen the implementation of the World HealthOrganization Framework Convention on Tobacco
Control in all countries, as appropriate• Transforming our business• Product health impacts• Access to smoke-free products• Case study: Can innovative products like IQOS accelerate the decline of smoking?
• Responsible marketing and sales practices (Our commitment to youth access prevention)• Business environment (Regulation and taxation)

3.aGood Agricultural Practices
(GAP)

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Water stewardship Policy
Good Agricultural Practices(GAP)

Our views and standards

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Goal 4 – Ensure inclusive and equitable quality
education and promote lifelong learning
opportunities for all

Attracting, retaining, and developing employees is increasingly important in a time of demographic shifts, disruptions in theworld of work, and business transformation. We are providing PMI’s employees with opportunities to learn, grow, andcontribute to great results while at the same time adapting to employees’ changing expectations of their employers.

4.1

By 2030, ensure that all girls and boys complete free,equitable and quality primary and secondary
education leading to relevant and effective learning
outcomes• Socioeconomic well-being of tobacco farming communities (Child labor)• Community support

4.4

By 2030, substantially increase the number of youth
and adults who have relevant skills, including
technical and vocational skills, for employment,
decent jobs and entrepreneurship• Talent attraction, retention, and employability (Employee development, Employability—Fit
for the future)• Responsible and transparent R&D (PMI’s fellowship program)• Community support

Goal 5 – Achieve gender equality and empower
all women and girls

We aim to promote an inclusive and diverse working environment, where equality, equity, and fair treatment are upheld, andwe expect our suppliers to do the same. In our tobacco supply chain, we support initiatives to empower women, as key agentsof change We also strive to empower women in our tobacco supply chain, taking into account their instrumental role in
improving household economic conditions, while also addressing child labor and other social challenges

5.5

Ensure women’s full and effective participation andequal opportunities for leadership at all levels ofdecision-making in political, economic and public life

• Our global footprint: PMI’s workforce diversity at a glance• Diverse and inclusive working environment (Focus on gender)• Governance and management

5.a

Undertake reforms to give women equal rights toeconomic resources, as well as access to ownershipand control over land and other forms of property,
financial services, inheritance and natural resources,in accordance with national laws

• Socioeconomic well-being of tobacco farming communities (Empowering women in

tobacco farming)

Agricultural Labor Practices(ALP) CodeALP Step Change
Q1 2020 ALP Progress Update

Goal 6 – Ensure availability and sustainable
management of water and sanitation for all

We aim to responsibly managing water along our value chain. Our vision is to preserve water resources and respect the natural
cycle of water, working in close cooperation with our stakeholders.

6.1

By 2030, achieve universal and equitable access tosafe and affordable drinking water for all• Socioeconomic well-being of tobacco farming communities (Enhancing access to water,

6.2

By 2030, achieve access to adequate and equitable
sanitation and hygiene for all and end open
defecation, paying special attention to the needs ofwomen and girls and those in vulnerable situations

sanitation, and hygiene)

Good Agricultural Practices(GAP)
Q3 2020 ALP Progress Update• Socioeconomic well-being of tobacco farming communities (Enhancing access to water,
sanitation, and hygiene)

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PMI’s 2020 submission to CDP
Water Security

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6.3

By 2030, improve water quality by reducing pollution,
eliminating dumping and minimizing release ofhazardous chemicals and materials, halving the
proportion of untreated wastewater and substantially
increasing recycling and safe reuse globally

6.4

By 2030, substantially increase water-use efficiency
across all sectors and ensure sustainable withdrawals
and supply of freshwater to address water scarcity
and substantially reduce the number of people
suffering from water scarcity

6.5

By 2030, implement integrated water resourcesmanagement at all levels, including throughtransboundary cooperation as appropriate

6.6

By 2020, protect and restore water-related
ecosystems, including mountains, forests, wetlands,
rivers, aquifers and lakes

Water Stewardship Policy• Water stewardship (Water stewardship in our tobacco supply chain, Water efficiency inmanufacturing)• Biodiversity (Protection through integrated pest management)

Good Agricultural Practices(GAP)
PMI’s 2020 submission to CDP
Water Security• Water stewardship (Water stewardship in our tobacco supply chain, Water efficiency inmanufacturing)• Water stewardship (Water stewardship in our tobacco supply chain, Water efficiency inmanufacturing, Alliance for Water Stewardship)

Water Stewardship Policy
PMI’s 2020 submission to CDP
Water Security• Water stewardship (Water stewardship in our tobacco supply chain)

Water Stewardship Policy

6.bSupport and strengthen the participation of local
communities in improving water and sanitation
management• Socioeconomic well-being of tobacco farming communities (Enhancing access to water,

Good Agricultural Practices(GAP)• Water stewardship (Alliance for water stewardship)

Q3 2020 ALP Progress Update

sanitation, and hygiene)

PMI’s 2020 submission to CDP
Water Security

Goal 7 – Ensure access to affordable, reliable,
sustainable and modern energy for all

7.2

Promoting the switch to renewable energy is a key element of our strategy to decarbonize our operations and value chain.

By 2030, increase substantially the share of
renewable energy in the global energy mix• Climate protection (Decarbonizing our operations, Driving carbon reduction in our tobacco

supply chain)

7.3

By 2030, double the global rate of improvement inenergy efficiency

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PMI’s 2020 submission to CDP
Climate Change

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Goal 8 – Promote sustained, inclusive andsustainable economic growth, full andproductive employment and decent work for all

We strive to provide good working conditions for all our employees and expect our suppliers to do the same for the benefit ofover 1 million workers throughout our value chain.

8.2

Achieve higher levels of economic productivity
through diversification, technological upgrading andinnovation, including through a focus on high-value
added and labour-intensive sectors• Socioeconomic well-being of tobacco farming communities (Contributing to alleviating
poverty)• Sustainable supply chain management (PMI’s Good Agricultural Practices Program)• Climate protection (Driving carbon reduction in our tobacco supply chain)• Internal transformation: A new organization and value chain

8.4

Improve progressively, through 2030, global resource
efficiency in consumption and production andendeavour to decouple economic growth fromenvironmental degradation, in accordance with the
10-year framework of programmes on sustainableconsumption and production, with developed
countries taking the lead

• Climate protection• Forest conservation• Product eco-design and circularity• Sustainable supply chain management

By 2030, achieve full and productive employment anddecent work for all women and men, including foryoung people and persons with disabilities, and equalpay for work of equal value• Fair working conditions (Labor relations)• Talent attraction, retention, and employability (Rewarding employees, Employee
development, Employability—Fit for the future)• Diverse and inclusive working environment (Focusing on gender, Advancing disability
inclusion)• Socioeconomic well-being of tobacco farming communities (Empowering women in tobacco
growing)

8.7

Take immediate and effective measures to eradicate
forced labour, end modern slavery and humantrafficking and secure the prohibition and eliminationof the worst forms of child labour, including
recruitment and use of child soldiers, and by 2025 end
child labour in all its forms• Socioeconomic well-being of tobacco farming communities (Promoting PMI’s Agricultural
Labor Practices, Child labor)

8.8

Protect labour rights and promote safe and secure
working environments for all workers, including
migrant workers, in particular women migrants, andthose in precarious employment• Fair working conditions (Labor relations)• Socioeconomic well-being of tobacco farming communities (Promoting PMI’s Agricultural
Labor Practices, Safe work environment)• Health, safety, and well-being at work
• Sustainable supply chain management

8.5

Good Agricultural Practices(GAP)

Good Agricultural Practices
(GAP)

6

Responsible Sourcing Principles(& Implementation Guidance)
Zero Deforestation Manifesto
PMI’s submissions to CDP
Climate Change, Water Security,and Forest

Our Guidebook for Success(PMI’s Code of Conduct)
ALP Step Change
Inclusion & Diversity

Agricultural Labor Practices(ALP) Code

Agricultural Labor Practices(ALP) CodeResponsible Sourcing Principles(& Implementation Guidance)

SDG content index 2020

Goal 9 – Build resilient infrastructure, promote
inclusive and sustainable industrialization andfoster innovation

We are in a position to be a vector for growth, promoting sustainable industrialization fostering natural resource efficiency.
PMI’s submissions to CDP
Climate Change, Water Security,and Forest

By 2030, upgrade infrastructure and retrofit industries
to make them sustainable, with increased resourceuse efficiency and greater adoption of clean andenvironmentally sound technologies and industrial
processes, with all countries taking action inaccordance with their respective capabilities• Climate protection (Decarbonizing our operations, Driving carbon reduction in our tobacco
supply chain)• Forest conservation (Sustainable curing fuel in tobacco production)• Water stewardship (Irrigation in agriculture, Water efficiency in manufacturing, Zero-loss
mindset)Enhance scientific research, upgrade the technologicalcapabilities of industrial sectors in all countries, inparticular developing countries, including, by 2030,
encouraging innovation and substantially increasing
the number of research and development workers per
1 million people and public and private research anddevelopment spending• Responsible and transparent R&D

Goal 10 – Reduce inequality within and among
countries

We pay our employees equally for equal work, and we aim to provide them with equal opportunities regardless of sex, gender
identity, country of origin, age, or other personal characteristics. Our efforts to address income inequality extend to our supply
chain, as we aim for the farmers from whom we source tobacco to make a living income

10.1

By 2030, progressively achieve and sustain income
growth of the bottom 40 per cent of the population at
a rate higher than the national average• Socioeconomic well-being of tobacco farming communities (Contributing to alleviating
poverty)10.2

By 2030, empower and promote the social, economic
and political inclusion of all, irrespective of age, sex,
disability, race, ethnicity, origin, religion or economicor other status• Socioeconomic well-being of tobacco farming communities• Diverse and inclusive working environment

Ensure equal opportunity and reduce inequalities ofoutcome, including by eliminating discriminatory
laws, policies and practices and promoting
appropriate legislation, policies and action in thisregard• Diverse and inclusive working environment• Business integrity

Goal 11 – Make cities and human settlements
inclusive, safe, resilient and sustainable

We aim to enhance the living and working conditions for farmers supplying tobacco to PMI and their workers. In line with ourAgricultural Labor Practices (ALP) Code, when a farmer provides a worker with accommodation, we require it to be clean andsafe, and meet basic standards.

9.4

9.5

10.3

Zero Deforestation Manifesto
Good Agricultural Practices(GAP)
Water Stewardship Policy

Our Guidebook for Success(PMI’s Code of Conduct)
ALP Step Change
Agricultural Labor Practices(ALP) Code
Inclusion & Diversity

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SDG content index 2020

11.1

By 2030, ensure access for all to adequate, safe andaffordable housing and basic services and upgrade
slums

Goal 12 – Ensure sustainable consumption andproduction patterns• Socioeconomic well-being of tobacco farming communities (Promoting a safe working

environment)

ALP Step Change
Agricultural Labor Practices(ALP) CodeWe seek to use the natural resources necessary to produce our products efficiently, and to source them sustainably.
Responsible Sourcing Principles(& Implementation Guidance)

12.2

By 2030, achieve the sustainable management andefficient use of natural resources• Sustainable supply chain management• Product eco-design and circularity• Forest conservation• Water stewardshipGood Agricultural Practices(GAP)
Zero Deforestation Manifesto
Water Stewardship Policy
PMI’s Environmental
Commitment

12.4

By 2020, achieve the environmentally soundmanagement of chemicals and all wastes throughout
their life cycle, in accordance with agreed
international frameworks, and significantly reduce
their release to air, water and soil in order tominimize their adverse impacts on human health andthe environment• Waste reduction• Product eco-design and circularity (Circularity)• Biodiversity (Protection through integrated pest management)

12.5

By 2030, substantially reduce waste generation
through prevention, reduction, recycling and reuse• Waste reduction• Product eco-design and circularity (Circularity)• Littering prevention

PMI’s Environmental
Commitment

12.6

Encourage companies, especially large andtransnational companies, to adopt sustainable
practices and to integrate sustainability information
into their reporting cycle• PMI Integrated Report 2020 (as well as previous reports and additional resources andcommunications, available on PMI.com)

PMI 2019 Sustainability
Materiality Report

12.7

Promote public procurement practices that are
sustainable, in accordance with national policies andpriorities• Sustainable supply chain management

Responsible Sourcing Principles(& Implementation Guidance)

Goal 13 – Take urgent action to combat climatechange and its impacts

Climate change is among the greatest threat society faces. As a business with a multinational environmental footprint, we aim
to play a role in contributing to addressing this crisis. Our climate strategy aims to address pertinent climate change risks andbuild resilience while seizing opportunities presented by a low-carbon future.

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PMI’s Environmental
Commitment
Good Agricultural Practices(GAP)

SDG content index 2020

13.1

13.3

14.1

15.1

15.2

Strengthen resilience and adaptive capacity to
climate-related hazards and natural disasters in all
countries

Improve education, awareness-raising and human andinstitutional capacity on climate change mitigation,
adaptation, impact reduction and early warning

PMI’s Environmental
Commitment
Zero Deforestation Manifesto• Climate protection• Forest conservation• Biodiversity• Sustainable supply chain management• Case study: An integrated approach to our environmental impacts in Malawi

PMI’s submissions to CDP
Climate Change, Water Security,and Forest
Good Agricultural Practices(GAP)
Responsible Sourcing Principles(& Implementation Guidance)

Goal 14 – Conserve and sustainably use theoceans, seas and marine resources forsustainable development

Littering spoils the environment and pollutes the land and the waters. While many consumers dispose of their waste properly,
sadly still too much waste ends up in the environment. We seek to help change behavior to prevent cigarette butt littering andto encourage proper waste disposal.

By 2025, prevent and significantly reduce marine
pollution of all kinds, in particular from land-based
activities, including marine debris and nutrient
pollution• Littering prevention• Product eco-design and circularity (Circularity, Consumables, Packaging)

Goal 15 – Protect, restore and promotesustainable use of terrestrial ecosystems,
sustainably manage forests, combat
desertification, and halt and reverse landdegradation and halt biodiversity loss

A significant portion of our environmental management efforts is devoted to protecting forests. To PMI, this means preventing
deforestation linked to our operations and sourcing activities. To accomplish this, we seek to use sustainable and traceable
curing fuels in our tobacco supply chain and responsibly source paper and pulp-based products.

By 2020, ensure the conservation, restoration andsustainable use of terrestrial and inland freshwater
ecosystems and their services, in particular forests,
wetlands, mountains and drylands, in line withobligations under international agreements
By 2020, promote the implementation of sustainable
management of all types of forests, halt
deforestation, restore degraded forests andsubstantially increase afforestation and reforestation
globally

15.3

By 2030, combat desertification, restore degraded
land and soil, including land affected bydesertification, drought and floods, and strive toachieve a land degradation-neutral world

15.5

Take urgent and significant action to reduce thedegradation of natural habitats, halt the loss of
biodiversity and, by 2020, protect and prevent theextinction of threatened species

PMI’s Anti-Littering Policy

Good Agricultural Practices(GAP)• Forest conservation• Climate protection• Biodiversity• Water stewardship• Product eco-design and circularity (Packaging)• Case study: An integrated approach to our environmental impacts in Malawi• Littering prevention

Responsible Sourcing Principles(& Implementation Guidance)
PMI’s Environmental
Commitment
Zero Deforestation Manifesto
PMI’s submissions to CDP
Climate Change, Water Security,and Forest
Water Stewardship Policy
PMI’s Anti-Littering Policy

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16.2

Goal 16 – Promote peaceful and inclusive
societies for sustainable development, provide
access to justice for all and build effective,
accountable and inclusive institutions at alllevelsResponsible business practices, such as preventing labor abuses, combating illicit trade and promoting sound businessintegrity, are critical to PMI’s long-term success.

End abuse, exploitation, trafficking and all forms ofviolence against and torture of children• Socioeconomic well-being of tobacco-farming communities (Eliminating child labor,
Minimum wages for workers)• Sustainable supply chain management• Illicit tobacco trade prevention

ALP Step Change
Agricultural Labor Practices(ALP) CodeResponsible Sourcing Principles(& Implementation Guidance)
PMI IMPACT

16.4

By 2030, significantly reduce illicit financial and arms
flows, strengthen the recovery and return of stolen
assets and combat all forms of organized crime• Illicit tobacco trade prevention

PMI IMPACT
Our Guidebook for Success(PMI’s Code of Conduct)

16.5

Substantially reduce corruption and bribery in all theirforms• Business integrity• Responsible engagement• Illicit tobacco trade prevention

Overview of engagement
principles
Transparency
PMI IMPACT

16.b

Our Guidebook for Success(PMI’s Code of Conduct)

Promote and enforce non-discriminatory laws andpolicies for sustainable development• Fair working conditions (Workplace integrity)• Diverse and inclusive working environment

Goal 17 – Strengthen the means of
implementation and revitalize the global
partnership for sustainable development

From best practices and information exchanges to close partnerships, engaging with others can help inform our strategy,
define our priorities, and advance sustainable solutions to common challenges.

17.16

Enhance the global partnership for sustainable
development, complemented by multi-stakeholder
partnerships that mobilize and share knowledge,
expertise, technology and financial resources, tosupport the achievement of the sustainable
development goals in all countries, in particulardeveloping countries

17.17

17.17 Encourage and promote effective public, publicprivate and civil society partnerships, building on theexperience and resourcing strategies of partnerships
Data, monitoring and accountability• External transformation: Changing the way we engage with stakeholders• Throughout PMI Integrated Report 2020 and additional communications available on PMI.com, we provide examples
describing how we:- Contribute to debates on policy issues that affect our business and stakeholders, and being transparent about ourapproach and progress- Partner with others to implement projects across our sustainability topics, and participate in multistakeholder
initiatives, organizations, and/ or programs to further advance the achievement of the SDGs, overall collective goals- Support external voluntary codes and initiatives that promote sustainable business practices (e.g., UN Guiding
Principles on Business and Human Rights, International Labour Organization Declaration on Fundamental Principles andRights at work, Transparency International, CDP submissions, Science-Based Targets initiative, The Valuable 500, etc.)- Join calls for action that support policy development that contribute towards the achievement of the SDGs
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