Water Stewardship Policy
For PMI, sustainability means creating long-term value for our shareholders and for society, while actively reducing thenegative externalities associated with our products, operations and value chain.
The scale of our business means that we can have significant impacts on water resources, even if the tobacco sector is
not particularly water intensive in comparison with other industries. Water is used in our factories, in the manufactureof raw materials such as filters, paper and packaging materials, and in tobacco agriculture. In addition, we also need toaddress the problem of litter that can impact watercourses, lakes and oceans.
In alignment with our Environmental Commitment, our vision is to preserve water resources and respect the natural
cycle of water wherever relevant to our business and in cooperation with our stakeholders.
To achieve this, we will:

Specifically, we are committed to:•Assess water use and water risks across our entire
value chain and understand how to use water
without negatively impacting the quality or quantityof water resources;

Optimize water consumption across our operations,
reduce the water footprint of our products andimplement appropriate wastewater treatment in ourfactories to protect water habitats.

•Identify, implement and share best water
stewardship practices across our operations andencourage our suppliers to do the same;•Ensure access to safe Water, Sanitation andHygiene (WASH) in all our facilities and provide
access to WASH services on farms and communities
in our tobacco supply chain;

Implement the Alliance for Water Stewardship (AWS)
standard in 100% of our factories by 2025 and workwith stakeholders in the watersheds of our factories toachieve the five outcomes of the AWS standard (goodwater governance, sustainable water balance, goodwater quality status, important water-related areas,and safe water, sanitation and hygiene for all (WASH)).

•Join multi-stakeholder initiatives and seek
partnerships to improve our water management
practices;•

Continuously improve water-related farming
practices in our tobacco supply chain, especially byworking with tobacco suppliers; and•Report on our progress, notably in our annual
Sustainability Report and third-party programs suchas CDP Water Security.

Implement Good Agricultural Practices by all contracted
farmers in our tobacco supply chain to preserve local
and global water resources, by safeguarding both water
quantity and quality; support growing practices thatenable the tobacco crop to be resilient to changing
water scenarios.
Roll-out anti-littering campaigns in cooperation withlocal stakeholders to reduce the amount of cigarettebutts reaching waterways and the oceans.

This Water Stewardship policy complements our Environmental Commitment and specifies water-related aspects.
Within PMI, the Sustainability Coordination Group and the Sustainability Committee are responsible for thecoordination of Water Stewardship programs under the oversight of the Nominating and Corporate GovernanceCommittee of the Board of Directors.

As Chief Executive Officer, I am asking everyone at PMI and all our business partners to uphold this Water Stewardship
Policy. - André Calantzopoulos, CEO, Philip Morris International.

PMI Water Stewardship Policy v1.1/17 Sept 2019