GRI content index 2020

GRI content index 2020
PMI's Integrated Report 2020 has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option. This Index cross-references ourcompany's tier 1 sustainability topics (as per our 2019 materiality assessment) with applicable GRI Standards, relevant UN Sustainable Development Goals and UN
Global Compact Principles. A separate index for SDGs, further elaborates and goes in deeper detail as to how we contribute to each goal and target.
This summary should be read in conjunction with the Philip Morris International Inc. Form 10-K for the year ended 2020, PMI’s Proxy Statement
2021, PMI’s Integrated Report 2020, and the additional sustainability-related communications available on www.pmi.com/sustainability. 1

Disclosure title

UNSDGs

UNGC
Principles

102- GENERAL DISCLOSURES (2016)
102-1
Name of the organization

Location of information in
PMI’s Integrated Report 2020

Other materials published

Front cover

102-2

Activities, brands, products, services

102-3

Location of headquarters

102-4

Location of operations

Our global footprint (p.8)

102-5

Ownership and legal form

About PMI (p.2)

2020 PMI Form 10-K (p.1)

102-6Markets served

Our global footprint (p.8)

Our markets (PMI.com)

102-7

Scale of the organization

Our global footprint (p.8)
PMI’s Business Transformation
Metrics (p.15)

Who we are (PMI.com);

102-8

Information on employees andother workers

About PMI (p.2)
Our global footprint andtransforming our business (p.811)
Our global footprint (p. 8)
Back cover8

62020 PMI Form 10-K (p.13, 16-18)

Additional information
Philip Morris International
Inc.

2020 PMI Form 10-K (p.1618, 25-27)

PMI’s workforce diversity (p.8)
PMI’s workforce at year-end 2020
(p.137)

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 pillarsof action and two 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 andperformance 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 conceptof materiality under the U.S. securities laws and/or disclosures required by the U.S. Securities and Exchange Commission.

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GRI content index 2020

Disclosure title

UNSDGs

UNGC
Principles
3, 4, 5, 6,
8, 10

Location of information in
PMI’s Integrated Report 2020
Sustainable supply chain
management (p.60-61)

Other materials published102-9

Supply chain

102-10Significant changes to theorganization and its supply chain

102-11

Precautionary principle or approach102-12External initiatives

17

1

UN Guiding Principles for Businessand Human Rights (p.69), Science
Based Targets initiative (p.104),
UN Sustainable Development
Goals (p.25), the International
Labor Organization Declaration on
Fundamental Principles and Rights
at Work (PMI’s Commitment to
Human Rights), the Paris Climate
Agreement (p.101), the Alliancefor Water Stewardship (Water
stewardship), CDP (p.128)

102-13

Membership of associations

17

1, 8

World Business Council for
Sustainable Development (p.100),
the Sustainable Tobacco Program(p.67), Value Balancing Alliance(pg. 24), Responsible Business
Alliance (p. 64).

Responsible engagement;
PMI’s Participation in
Business and Trade
Associations in 2020;
London Benchmarking
Group (Community
support)102-14

Statement from senior decisionmaker

Letter from the Chief Executive
Officer (p.5)
Letter from the Executive
Chairman (p.4)

PMI’s Statement of
Purpose2|P a g e

1,2,8,12,15,16

7

Additional information

About PMI (p.2)
Transforming our business (p.916)
Production capacity (p.47)
Sustainable supply chain
management (p.60-61)
Protecting the environment (p.98126)
Connectivity and trade-offs (p.26)
We provide here examples ofkey external initiatives, andadditional information can befound throughout ourIntegrated Report andadditional communications
on PMI.com.

Sustainable Brands, BSR,
CECP

GRI content index 2020

Disclosure title

UNSDGs

UNGC
Principles

Location of information in
PMI’s Integrated Report 2020
Megatrends (p.20-21)
Sustainability at PMI (p.22-24)
Risk management (p.32)
Connectivity and trade-offs (p.26)
Our performance (p.129-142)

102-15Key impacts, risks, andopportunities

102-16

Values, principles, standards andnorms of behavior

16102-17

Mechanisms for advice andconcerns about ethics

16

102-18Governance structure102-19Delegating authority

Sustainability governance andmanagement (p.30-32)

102-20Executive-level responsibility foreconomic, environmental, andsocial topics
Composition of the highest
governance body and its
committees
Chair of the highest governancebody

Sustainability governance andmanagement (p.30-32)

102-22102-23102-24

Nominating and selecting thehighest governance body102-25

Conflict of interest

102-26

Role of highest governance body insetting purpose, values and strategy

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1, 2, 3, 4,
5, 6, 8, 10

Other materials publishedSustainability Materiality
Report;2020 PMI Form 10-K (p. 114)

PMI’s Guidebook for
Success; Business integrity
Our performance – Businessintegrity (p.133)
Respect for human rights (p.69)
Sustainability governance andmanagement (p.30-32)

PMI’s Guidebook for
Success; Business integrity
2021 PMI Proxy Statement(p.9-13)

5,16

Sustainability governance andmanagement (p.30-32)

2021 PMI Proxy Statement(p.10-11, 16-17, 19-26)

5Letter from the Executive
Chairman (p.4)

2021 PMI Proxy Statement
(p.8)

16

Sustainability governance andmanagement (p.30-32)

2021 PMI Proxy Statement(p.15-16, 18)
Corporate governanceguidelines
Corporate governanceguidelines

Letter from the Chief Executive
Officer (p.5)
Governance and management(p.30-32)

2021 PMI Proxy Statement(p.1-2, 8)
PMI’s Statement of
PurposeAdditional information

GRI content index 2020

Disclosure title

UNSDGs

UNGC
Principles

Location of information in
PMI’s Integrated Report 2020
About this report (p.3)
Governance and management(p.30-31)

Other materials published102-32Highest governance body’s role insustainability reporting

102-35

Remuneration policy

102-36

Process for determining
remuneration

102-38Annual total compensation ratio

102-40

List of stakeholder groups

17102-41

Collective bargaining agreements

8102-42

Identifying and selecting
stakeholders

Transforming our business andstakeholder engagement (p. 9-13)

102-43

Approach to stakeholder
engagement

Transforming our business andstakeholder engagement (p. 9-13)
Sustainability at PMI (p.22-24)

102-44

Key topics and concerns raised

Transforming our business andstakeholder engagement (p. 9-13)
Sustainability at PMI (p.22-24)
Response to COVID-19 (p. 7)

Sustainability Materiality
Report102-45

Entities included in the consolidated
financial statements

About this report (p.3)

2020 PMI Form 10-K
(Exhibit 21)

102-46

Defining report content and topic
boundaries

About this report (p.3)
Sustainability at PMI (p.22-24)

102-47

List of material topics

Sustainability at PMI (p.22-24)

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2021 PMI Proxy Statement(p.27-28,31-64)
Governance and management(p.30-32)

2021 PMI Proxy Statement(p. 31-64)
2021 PMI Proxy Statement(p. 63)

3

Transforming our business andstakeholder engagement (p. 9-13)

PMI’s Statement of
PurposeOur performance – Fair working
conditions (p.136-137)

Fair working conditions
ALP Code
Guidebook for Success
Overview of ourEngagement Principles
PMI’s Statement of
PurposeSustainability Materiality
ReportAdditional information

GRI content index 2020

Disclosure title

UNSDGs

UNGC
Principles

Location of information in
PMI’s Integrated Report 2020

Other materials published

Additional information

102-48

Restatements of information

102-49Changes in reporting

About this report (p.3)

102-50

Reporting period

About this report (p.3)

January 1 to December 31,
2020

102-51

Date of most recent report

About this report (p.3)

The previous report was
published on June 30, 2020

102-52

Reporting cycle

About this report (p.3)

Annual102-53

About this report (p.3)

102-55

Contact point for questions
regarding the report
Claims of reporting in accordancewith the GRI Standards
GRI content index

About this report (p.3)

GRI Index 2020

102-56External assurance

About this report (p.3)
Business transformation metrics(p.15)
External assurance report (p.146)

Environmental and health& safety data verification
statements: scope 1&2,
scope 3

Sustainability at PMI (p.22-24)

Sustainability Materiality
Report102-54103 - MANAGEMENT APPROACH (2016)
103-1
Explanation of the material topic
and its boundaries

About this report (p.3)

103-2

The management approach and its
components

Sustainability at PMI (p.22-24)
Our 2025 roadmap (p.27-28)
Sustainability governance andmanagement (p.30-32)

103-3

Evaluation of the management
approach

Sustainability at PMI (p.22-24)
Sustainability governance andmanagement (p.30-32)
Our performance (p.129-142)

416 – CUSTOMER HEALTH AND SAFETY (2016)

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Where data has been
restated from previous
reports, it is noted in an
appropriate footnote in thereport.
No significant changes.

We describe ourmanagement approach foreach tier 1 material
sustainability topic under
specific sections throughout
our Integrated Report.

GRI content index 2020

Disclosure title

UNSDGs

UNGC
Principles

Location of information in
PMI’s Integrated Report 2020
Product health impacts (p.15, 3440)

416-1

Assessment of the health and safety
impacts of product and service
categories

3

416-2

Incidents of non-complianceconcerning the health and safety
impacts of products and services

3

Product health impacts (p.34-40)

417 – MARKETING AND LABELING (2016)
417-1
Requirements for products andservice information and labeling3, 12, 16

417-2

Incidents of non-complianceconcerning product and service
information and labeling3, 16

Responsible marketing and sales
practices (p.52-54)
Access to smoke-free products(p.42-44)
Responsible marketing and sales
practices (p.55-56)

417-3

Incidents of non-complianceconcerning marketing
communications

3

204 – PROCUREMENT PRACTICES (2016)

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Responsible marketing and sales
practices (p.55-56)

Other materials published

Product reliability;
Responsible andtransparent R&D

Additional information
PMI is investing in thedevelopment and rigorous
scientific assessment of aportfolio of potentiallyreduced-risk alternatives tocigarette smoking. Smokefree products represented
23.8% of PMI’s net revenues
in 2020.
PMI’s Annual Report on Form
10-K includes certain legal
proceedings.

We report on number ofviolations by PMI employees
of our Marketing Code andGood Conversion Practices
resulting in substantiatedcases of misconduct in ourIntegrated Report.
PMI’s Annual Report on Form
10-K includes certain legal
proceedings.
We report on number ofviolations by PMI employees
of our Marketing Code andGood Conversion Practices
resulting in substantiatedcases of misconduct in ourIntegrated Report.
PMI’s Annual Report on Form
10-K includes certain legal
proceedings.

GRI content index 2020

Disclosure title
204-1

Proportion of spending on local
suppliersUNSDGs12

UNGC
Principles

Location of information in
PMI’s Integrated Report 2020

SUPPLIER ENVIRONMENTAL ASSESSMENT (2016)308-1
New suppliers that were screenedusing environmental criteria

12

7, 8

Sustainable supply chain
management (p.59-68)

308-2

12

7, 8

Sustainable supply chain
management (p.63-64)

Negative environmental impacts inthe supply chain and actions taken

414 – SUPPLIER SOCIAL ASSESSMENT (2016)414-1
New suppliers that were screenedusing social criterial

414-2

Negative social impacts in the
supply chain and actions taken

412 – HUMAN RIGHTS ASSESSMENT (2016)7|P a g e

1, 2, 3, 4, 5,
6

1, 2, 3, 4, 5,
6

Sustainable supply chain
management (p.63-64)
Socio-economic well-being of
tobacco-farming communities(p.86,89)

Other materials published

Additional information
We currently do not aggregate
this information centrally for
all our procurement
categories. We plan to reportin our 2021 report, subject toevaluation of technical andexecution capabilities.
We report on suppliers
assessed against our
Responsible Sourcing
Principles. We currently do
not report on new suppliers
screened. We plan onreporting in our 2021 report,
subject to evaluation oftechnical and execution
capabilities.
See Note 1.

We report on suppliers
assessed against our
Responsible Sourcing
Principles. We currently do
not report on new suppliers
screened. We plan onreporting in our 2021 report,
subject to evaluation oftechnical and execution
capabilities.
See Note 2.

GRI content index 2020
UNGC
Principles
1, 2, 3, 4, 5,
6

Location of information in
PMI’s Integrated Report 2020
Respect for human rights (p.7375)

1, 2, 3, 4, 5,
6

Respect for human rights (p.71)

1, 2, 3, 4, 5,
6

Sustainable supply chain
management (p. 59-68)

5Socio-economic well-being of
tobacco-farming communities(p.78-81, 86-88, 90)

We expanded our reporting in2020 to include data onchildren under 15 hired andchildren under 13 doing any
tobacco related tasks

403 – OCCUPATIONAL HEALTH AND SAFETY (2018)403-1
Occupational health and safety
3, 8
management system

1, 2Health, safety, and well-being at
work (p.91-96)

403-2

100% of manufacturing
facilities producing more than
3 billion cigarette equivalents
per year certified OHSAS
18001 and ISO 14001

Disclosure title
412-1
412-2

412-3

Operations that have been subject
to human rights reviews or impact
assessments
Employee training on human rights
policies or procedures

Significant investment agreements
and contracts that include humanrights clauses or that underwent
human rights screening

408 – CHILD LABOR (2016)
408-1
Operations and suppliers at
significant risk for incidents of child
labor

403-3
403-4
403-5
403-6

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UNSDGs2, 8, 16

Hazard identification, risk
assessment, and incident
investigation
Occupational health services

3, 8

1, 2

Health, safety, and well-being at
work (p.91-96)

3, 8

1, 2

Health, safety, and well-being at
work (p. 91-96)

Worker participation, consultation,and communication on health andsafetyWorker training on occupational
health and safety

3, 8

1, 2

Health, safety, and well-being at
work (p. 91-96)

3, 8

1, 2

Health, safety, and well-being at
work (p. 91-96)

Promotion of worker health

3, 8

1, 2

Health, safety, and well-being at
work (p.93,95-96)

Other materials published

Responsible Sourcing
Principles

PMI’s Guidebook for
Success

Additional information

We plan to report on numberof training hours andpercentage of employees
trained in 2022. In 2020, 100%of PMI security personnel wastrained on Human Rights
Our suppliers are required toadhere to PMI’s Responsible
Sourcing Principles (RSP),
which cover human rights
aspects.

GRI content index 2020

403-7

Prevention and mitigation ofoccupational health and safety
impacts directly linked by business
relationships

3, 8

UNGC
Principles
1, 2

403-8

Workers covered by an occupational
health and safety management
system3, 8

1, 2

Health, safety, and well-being at
work (p.91)

Our safety management
system enables us to monitor
health and safety
performance for employees,
contracted employees, andcontractors across all our
manufacturing facilities.

403-9

Work-related injuries

3, 8

1, 2

Health, safety, and well-being at
work (p.93-94)

403-10Work-related ill health

3, 8

1, 2

Health, safety, and well-being at
work (p.93-94)

We report number of fatalities
and TRIR and LTIR. The
number and rate of highconsequence injuries is notreported.
We report on occupational
illness frequency rate. We
currently do not reportaccording to the format
required.

302 – ENERGY (2016)
302-1
Energy consumption within theorganization

7, 8, 12, 13

7, 8, 9Climate protection (p.105-106)

PMI’s submission to CDP
Climate Change

We do not sell any electricity,
heating, cooling, or steam.
Types of energy included in
the energy consumption: fuel,electricity, district heating andrenewable energy.

302-2

Energy consumption outside of theorganization

7, 8, 12, 13

7, 8

Climate protection (p.103)

PMI’s submission to CDP
Climate Change

.

302-3

Energy intensity

7, 8, 12, 13

8Climate protection (p. 140)

PMI’s submission to CDP
Climate Change

302-4

Reduction of energy consumption

7, 8, 12, 13

7, 8, 9Climate protection (p.100-102,
104-106)

PMI’s submission to CDP
Climate Change

Types of energy included in
the energy intensity ratio:
fuel, electricity, district
heating and renewableenergy.

Disclosure title

9|P a g e

UNSDGsLocation of information in
PMI’s Integrated Report 2020
Socio-economic well-being of
tobacco-farming communities(p.82, 89)
Sustainable supply chain
management (p. 60-61)

Other materials published

Additional information

GRI content index 2020

302-5

UNGC
Principles
7, 8, 9Location of information in
PMI’s Integrated Report 2020
Product eco-design and circularity(p.119)3, 12, 13, 14,
15

7, 8

Climate protection (p.99-101,
111)

PMI’s submission to CDP
Climate Change;
PMI’s submission to CDP
Climate Change;
Greenhouse gas
Verification Statement
scope 1&2
PMI’s submission to CDP
Climate Change;
Greenhouse gas
Verification Statement
scope 1&2

IPCC Fifth Assessment Report(AR5 – 100 year)

PMI’s submission to CDP
Climate Change;
Greenhouse gas
Verification Statement
scope 1&2
PMI’s submission to CDP
Climate Change

IPCC Fifth Assessment Report(AR5 – 100 year)

Disclosure title

UNSDGsReductions in energy requirements
of products and services

7, 8, 12, 13

305 – EMISSIONS (2016)
201-2
Risks and opportunities due toclimate change

Other materials published

Additional information

305-1

Direct (Scope 1) GHG emissions

3, 12, 13, 14,
15

7, 8

Climate protection (p.99-106,
111)

305-2

Energy indirect (Scope 2) GHG
emissions3, 12, 13, 14,
15

7, 8

Climate protection (p.99-106,
111)

305-3

Other indirect (Scope 3) GHG
emissions3, 12, 13, 14,
15

7, 8

Climate protection (p.99-104,
107-111)305-4

GHG emissions intensity

13, 14, 15

8Climate protection (p. 141-155)

305-5

Reduction of GHG emissions

13, 14, 15

7, 8, 9Climate protection (p. 99-111)

305-6

Emissions of ozone-depleting
substances (ODS)

12,13, 14, 15

7, 8, 9Not applicable due to thenature of our business; we do
not produce, import, or export
ODS.

305-7

Nitrogen oxides, sulfur oxides, andother significant air emissions

3, 12, 13, 14,
15

7, 8, 9Currently not reported. We
plan on reporting in our 2021
report.

301 – MATERIALS (2016)10 | P a g e

PMI’s submission to CDP
Climate Change

IPCC Fifth Assessment Report(AR5 – 100 year)

2020 report reports intensity
for both scope 1+2 and scope
1+2+3.
Reduction in CO2 intensity of
tobacco curing by 44% versus
2019 baseline
Carbon Shadow price andCarbon Levy introduced in2020 (p. 148).

GRI content index 2020

301-1

Materials used by weight or volume

8, 12

UNGC
Principles
7, 8, 9301-2

Recycled input materials used

8, 12

7, 8, 9Product eco-design and circularity(p. 122,125)Not applicable for
consumables and combustible
cigarettes due to nature of the
products. For packaging,recycled content is currently
used in shipping cases.

301-3

Reclaimed products and theirpackaging materials

8, 12

7, 8, 9Product eco-design and circularity(p.119-120)
Littering prevention (p.112-115)

See Note 3.

Disclosure title

UNSDGsLocation of information in
PMI’s Integrated Report 2020
Product eco-design and circularity(p.125)
Littering prevention (pg. 113)

Other materials published

Additional information

Note 1Since the launch of our supplier due diligence platform (STEP) in July 2019 until year end 2020, 217 suppliers (tier 1 and tier 2) have been assessed for environmental impacts; and 55
suppliers were identified as having significant actual and potential negative environmental impacts based on supplier self-assessments and the results of 5 desktop audits. In addition, in
our tobacco supply chain, we monitor and address environmental impacts through our Good Agricultural Practices (GAP) program and assess conformity through the industry-wide
Sustainable Tobacco Program (STP).
Note 2Since the launch of our supplier due diligence platform (STEP) in July 2019 until year end 2020, 217 suppliers (tier 1 and tier 2) have been assessed for social impacts; and 72 suppliers
were identified as having significant actual and potential negative social impacts based on supplier self-assessments and the results of 10 desktop audits. In addition, in our tobacco
supply chain we monitor and address social impacts through our Agricultural Labor Practices (ALP) program. In 2019, 641 contracts with farmers were terminated due to ALP violations.
Note 3
With respect to our smoke-free products, our 2025 eco-design and circularity ambitions extend to electronic devices, accessories, consumables, and packaging (see PMI’s Integrated
Report 2020, p. 116-125). Regarding our electronic devices, we have established reverse logistic hubs under the CIRCLE program in 2018. In 2020, 48% of our IQOS market volume wascovered by the CIRCLE take-back service, via retail stores or mail, and the recycling rate of IQOS devices at the hubs was at 84%. For combustible cigarettes, our efforts focus on reducing
littering at its source by encouraging and enabling smokers to dispose properly of their cigarette butts (see PMI’s Integrated Report 2020, p. 112-115).

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