Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Welcome to your CDP Climate Change
Questionnaire 2023

C0. Introduction
C0.1(C0.1) Give a general description and introduction to your organization.
Philip Morris International (PMI) is a leading international tobacco company working to deliver asmoke-free future and evolving its portfolio for the long term to include products outside of thetobacco and nicotine sector. The company’s current product portfolio primarily consists ofcigarettes and smoke-free products. Since 2008, PMI has invested more than USD 10.5 billion
to develop, scientifically substantiate and commercialize innovative smoke-free products for
adults who would otherwise continue to smoke, with the goal of completely ending the sale ofcigarettes. This includes the building of world-class scientific assessment capabilities, notably
in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as postmarket studies. In November 2022, PMI acquired Swedish Match – a leader in oral nicotinedelivery – creating a global smoke-free champion led by the companies’ IQOS and ZYN
brands. The U.S. Food and Drug Administration (FDA) has authorized versions of PMI’s IQOS
Platform 1 devices and consumables and Swedish Match’s General snus as Modified Risk
Tobacco Products (MRTPs). As of December 31, 2022, PMI’s smoke-free products wereavailable for sale in 73 markets, and PMI estimates that approximately 17.8 million adults
around the world had already switched to IQOS and stopped smoking. Smokefree products
accounted for approximately 32% of PMI’s total full-year 2022 net revenues. With a strong
foundation and significant expertise in life sciences, PMI announced in February 2021 its
ambition to expand into wellness and healthcare areas and, through its Vectura Fertin Pharma
subsidiary, aims to enhance life through the delivery of seamless health experiences.
Our approach to sustainability focuses on developing strategies that can successfully address
the environmental, social, and governance topics identified as a priority by our sustainability
materiality assessment. From an environmental standpoint, we focus on reducing postconsumer waste from our products, tackling climate change, and preserving nature.
Engagement beyond our own operations—in particular in our supply chain—is key, as this iswhere a significant portion of our sustainability impacts occurs. We are working with business
partners to proactively identify, manage, and reduce risks, and create shared value.
Our business has a significant, global supply chain organized in two main streams: direct spend
focused on materials used in the manufacture of our finished products (e.g., tobacco leaf,

1Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

packaging materials, electronic devices and accessories) and indirect spend focused on goods
and services necessary to operate our business.
The description above is a summary and is qualified in its entirety by reference to the full text of
PMI’s Annual Report on Form 10-K for the year ended December 31, 2022, 2023 Proxy
Statement dated March 23, 2023 filed with the U.S. Securities and Exchange Commission on
the same date, and the full text of PMI’s Integrated Report 2022. Certain terms, definitions andexplanatory notes, as well as reconciliations of the applicable non-GAAP financial measures,are set forth in the materials referenced above.
In this submission:-“PMI,” “we,” “us,” and “our” refer to Philip Morris International Inc. and its subsidiaries;-Trademarks and service marks in this submission are the registered property of, or licensed
by, the subsidiaries of PMI and are italicized;-Aspirational targets and goals set forth in this submission do not constitute financial
projections, and achievement of future results is subject to risks, uncertainties, and inaccurate
assumptions, as outlined in our forward-looking and cautionary statements on page 210 of PMI
Integrated Report 2022;-Materiality: In this submission and in related communications, the terms “materiality,” “material”
and similar terms, when used in the context of economic, environmental, and social topics, aredefined in the referenced sustainability standards, and are not meant to correspond to theconcept of materiality under the U.S. securities laws and/or disclosures required by the US
Securities and Exchange Commission.
-Unless otherwise indicated, the data contained herein cover our operations worldwide for thefull calendar year 2022 or reflect the status as of December 31, 2022. Where not specified,data comes from PMI financials, nonfinancials, or estimates. Unless explicitly stated, the data,
information, and aspirations in this report do not incorporate PMI’s Vectura Fertin Pharma
business (consolidating the 2021 acquisitions of wellness and healthcare companies Fertin
Pharma A/S, Vectura Group plc., and OtiTopic, Inc.), nor the late 2022 acquisition of Swedish
Match AB. As we evolve and continue to integrate these business acquisitions, we will, wherematerial and feasible, include them into our ESG reporting in future reporting periods.

C0.2(C0.2) State the start and end date of the year for which you are reporting data andindicate whether you will be providing emissions data for past reporting years.
Reporting year
Start date
January 1, 2022

End date
December 31, 2022

Indicate if you are providing emissions data for past reporting years
Yes

Select the number of past reporting years you will be providing Scope 1
emissions data for2

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Not providing past emissions data for Scope 1

Select the number of past reporting years you will be providing Scope 2
emissions data for
Not providing past emissions data for Scope 2

Select the number of past reporting years you will be providing Scope 3
emissions data for
2 years

C0.3(C0.3) Select the countries/areas in which you operate.
Albania
Algeria
Argentina
Armenia
Aruba
Australia
Austria
Bangladesh
Belgium
Bosnia & Herzegovina
BrazilBulgaria
CanadaChile
China
China, Macao Special Administrative Region
Colombia
Costa Rica
CroatiaCuraçao
Czechia
Denmark
Dominican Republic
EcuadorEgypt
El Salvador
Estonia
FinlandFranceGeorgia
Germany
GreeceGuatemalaHong Kong SAR, China
3

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Hungary
India
Indonesia
IsraelItaly
JamaicaJapan
JordanKazakhstan
KuwaitLatviaLebanonLithuania
Luxembourg
MalawiMalaysia
MexicoMoroccoMozambique
Netherlands
New Zealand
Nicaragua
Nigeria
North Macedonia
NorwayPakistan
PanamaParaguay
Peru
Philippines
PolandPortugal
Republic of Korea
Republic of Moldova
RéunionRomania
Russian Federation
SenegalSerbiaSingapore
Slovakia
Slovenia
South Africa
Spain
Sri Lanka
Sweden4

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Switzerland
Taiwan, China
ThailandTunisia
TurkeyUkraineUnited Arab Emirates
United Kingdom of Great Britain and Northern Ireland
United Republic of Tanzania
United States of America
Uruguay
Venezuela (Bolivarian Republic of)Viet Nam

C0.4(C0.4) Select the currency used for all financial information disclosed throughout yourresponse.
USD

C0.5(C0.5) Select the option that describes the reporting boundary for which climaterelated impacts on your business are being reported. Note that this option shouldalign with your chosen approach for consolidating your GHG inventory.
Operational control

C-AC0.6/C-FB0.6/C-PF0.6(C-AC0.6/C-FB0.6/C-PF0.6) Are emissions from agricultural/forestry,
processing/manufacturing, distribution activities or emissions from the consumptionof your products – whether in your direct operations or in other parts of your value
chain – relevant to your current CDP climate change disclosure?
Relevance
Agriculture/Forestry

Elsewhere in the value chain only
[Agriculture/Forestry/processing/manufacturing/Distribution only]

Processing/Manufacturing Both direct operations and elsewhere in the value chain[Processing/manufacturing/Distribution only]
Distribution

Both direct operations and elsewhere in the value chain[Processing/manufacturing/Distribution only]

Consumption

Yes [Consumption only]

5Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C-AC0.6b/C-FB0.6b/C-PF0.6b(C-AC0.6b/C-FB0.6b/C-PF0.6b) Why are emissions from agricultural/forestry activities
undertaken on your own land not relevant to your current CDP climate change
disclosure?
Row 1
Primary reason
Do not own/manage land

Please explain
We don’t own the tobacco farms or the land that supply us with tobacco leaf, but thefarmers who run them are a crucial part of our economic, environmental, and social
footprint. We are working directly with them and our suppliers to promote sustainable
farming and climate change mitigation initiatives as part of our Good Agricultural
Practices (GAP) program.

C-AC0.7/C-FB0.7/C-PF0.7(C-AC0.7/C-FB0.7/C-PF0.7) Which agricultural commodity(ies) that your organization
produces and/or sources are the most significant to your business by revenue?
Select up to five.

Agricultural commodity
Tobacco% of revenue dependent on this agricultural commodity
More than 80%

Produced or sourced
SourcedPlease explain
The vast majority of consumables manufactured and commercialized by PMI (including
cigarettes and smoke-free product consumables such as heated tobacco units) require
tobaccoAgricultural commodity
Timber% of revenue dependent on this agricultural commodity
More than 80%

Produced or sourced
6

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

SourcedPlease explain
100% of PMI heated tobacco units, cigarettes and other nicotine-containing products
require timber derivative products. Additionally, PMI uses board and paper for
packaging of the majority of PMI’s products.

C0.8(C0.8) Does your organization have an ISIN code or another unique identifier (e.g.,
Ticker, CUSIP, etc.)?
Indicate whether you are able to provide a unique identifier foryour organization

Provide your unique
identifier

Yes, an ISIN code

7181721090

C1. GovernanceC1.1(C1.1) Is there board-level oversight of climate-related issues within yourorganization?
Yes

C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on theboard with responsibility for climate-related issues.
Position ofindividual orcommittee

Responsibilities for climate-related issues

Board-levelcommittee

Environmental, social, and governance (ESG) factors are part of the responsibilityof certain committees of the Board and considered in the evaluation of the annual
performance of the company and its management. As part of their responsibilities,
the Board and its committees review and approve PMI’s annual budget based on
the company’s performance and targets. This includes those resources required to
deploy carbon emission reduction initiatives to achieve our climate action targets.
The Nominating and Corporate Governance Committee (NCGC) oversees thecompany’s ESG and sustainability strategies and performance, and reports to theBoard on sustainability matters including climate-related topics, several othercommittees are tasked with oversight responsibility for specific sustainability topics.
For instance, the Audit Committee reviews with management, the internal andindependent auditors, any sustainability information to be included in the
Company’s financial reporting framework and the internal controls and procedures
related to sustainability disclosures, while the Compensation and Leadership

7Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Development Committee (CLDC) is responsible for executive compensation
matters which consists of, among others, evaluating the Company’s performancein relation to the PMI Sustainability Index.

C1.1b(C1.1b) Provide further details on the board’s oversight of climate-related issues.
Frequency withwhich climaterelated issues area scheduled
agenda item

Governancemechanisms into
which climaterelated issues areintegrated

Please explain

Scheduled – some Reviewing and guiding The Board of Directors (BoD) oversees PMI’s full range
meetings
annual budgetsof activities incl. establishing broad corporate policies,
setting strategic direction and overseeing management.
Overseeing major
The BoD is responsible for the day-to-day operations ofcapital expenditures
the company and considers climate-related issues as
Overseeing
acquisitions, mergers, part of their oversight process. Part of the BoD’s
oversight is focused on management’s efforts toand divestituresenhance shareholder value responsibly andOverseeing andsustainably. Environmental, social and governanceguiding employee
factors (ESG) are part of the responsibility of the BoD
incentives
and considered in the evaluation of the annual
Reviewing and guiding
performance of the company and its management.
strategy
The BoD approves the company’s annual budget andOverseeing andreceives updates on the company’s performance andguiding thetargets against the budget throughout the year incl.
development of athose related to achievement of sustainability, climatetransition planchange and implementation of PMI’s Low Carbon
Monitoring theTransition Plan.
implementation of atransition plan
The BoD has established various standing Committees
Overseeing andguiding scenario
analysisto assist with the performance of its responsibilities andis regularly informed on plans, and significant issues
affecting our business, incl. information related toOverseeing the setting climate change. The BoD held 8 regular meetings in
2022. The BoD is advised on climate change-relatedof corporate targets
issues by the Nominating and Corporate GovernanceMonitoring progress
Committee (NCGC) of the BoD, which oversees thetowards corporate
Company’s policies, programs and related risks to thetargets
Company that concern certain environmental, social
Overseeing value
and governance, or ESG, matters and sustainability
chain engagement
strategies and performance, including those related toclimate change. The committee met 5 times in 2022.
The BoD oversees management of risks relating to the8Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Reviewing and guiding Company’s business. Risk oversight is conducted both
the risk management by Committees of the BoD as well as by the full BoD.
process
Management has identified and prioritized a number ofkey enterprise risks and, as part of the risk
management process, has established a Corporate
Risk Governance Committee (“CRGC”) that comprises
senior executive officers. The CRGC identifies andmonitors the evolution of key risk areas both strategicand operational (critical) in nature, oversees theongoing development and deployment of bothEnterprise Risk Management practices andGovernance, Risk & Compliance capabilities. ESGrelated risks and opportunities are considered within
our enterprise risk management practices. Ownershipof each of the prioritized risks is assigned to a memberof senior management, and oversight of the
management of each risk is assigned to a particularcommittee of our Board or to the full Board.
Management reports on these risks to the appropriate
committee and to the full Board throughout the year. A
member of the Company Management, the Senior Vice
President Operations, was tasked with the
responsibility to address the climate change risk,
including physical climate and water related risks.

C1.1d(C1.1d) Does your organization have at least one board member with competence on
climate-related issues?
Board member(s)have competence
on climate-related
issuesRow Yes1

Criteria used to assess competence of board member(s) on
climate-related issues

PMI assesses competence of the Board on sustainability related
issues, including climate change-related issues, based on its members’
relevant professional experience, academic background or otherprofessional trainings on climate science, environmental science orengineering, sustainability, or other related subjects.
Several members of PMI’s BoD have expertise in sustainability and
ESG matters, including climate change. Particularly, one of our Board
Directors brings unique understanding of ESG strategy, as thismember has served as CEO to the Global Adaptation Institute (afoundation dedicated to the understanding of climate change) and as

9Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Co-Chair to the World Economic Forum’s Global Agenda Council on
Climate Change. Professional biographies for each Board member are
disclosed in our annual Proxy Statement available on PMI.com.

C1.2(C1.2) Provide the highest management-level position(s) or committee(s) withresponsibility for climate-related issues.

Position or committee
Other C-Suite Officer, please specify
Senior Vice President Operations

Climate-related responsibilities of this position
Managing annual budgets for climate mitigation activities
Providing climate-related employee incentives
Developing a climate transition plan
Implementing a climate transition plan
Integrating climate-related issues into the strategy
Conducting climate-related scenario analysis
Setting climate-related corporate targets
Monitoring progress against climate-related corporate targets
Managing value chain engagement on climate-related issues
Assessing climate-related risks and opportunities
Managing climate-related risks and opportunities

Coverage of responsibilities
Reporting line
CEO reporting line

Frequency of reporting to the board on climate-related issues via thisreporting line
Quarterly

Please explain
Reporting directly to the CEO, PMI’s Senior Vice President Operations (SVP
Operations), a member of Company Management, is strategically positioned within thecompany’s structure to be able to effectively engage the Board and specific departments
on climate issues. This member periodically holds discussions with separate Board
members on climate-related issues and risks.
PMI’s SVP Operations is delegated with operational responsibility, including:• Assessing and managing climate-related risks and opportunities in relation to theactivities deployed by PMI’s Operations function. The SVP Operations also periodically
10Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

consults with the CRGC to highlight any significant climate-related risks.
• Addressing climate-related risks and opportunities—both physical and transition(including scenario analysis) —across the company’s activities that could impact PMI’s
ability to operate which are considered during the Climate Change Risk and Opportunity
Assessment (CCROA) process.
• Maintaining robust business resiliency, risk assessment processes aligned withcorporate-wide risk management practices, and strategies to support business
continuity.
• Ensuring that climate change risks and opportunities are assessed, managed,
monitored, and integrated into long-range plan (including PMI’s climate transition plan)and budget review processes.
• Setting business direction, objectives (including targets) and performance appraisal
processes.
The SVP Operations leads the Operations Sustainability function headed by the VP
Operations Sustainability, which drives environmental strategies and their full integration
into the business, due to the strategic importance of environmental issues, including
climate-related issues, within our operations. The SVP Operations receives updates on
progress toward objectives and their achievement in monthly meetings with the
Operations Management Team reporting to him.

C1.3
(C1.3) Do you provide incentives for the management of climate-related issues,
including the attainment of targets?
Provide incentives
for the managementof climate-related
issuesRow Yes1

Comment

Our executive compensation program reflects our commitment to put
sustainability, including the management of climate-related issues, atthe core of our corporate strategy. The three components of total
direct compensation for our executive officers are base salary, annual
performance-based incentive compensation awards, and long-term
variable equity awards. Sustainability performance (including progresson tackling climate change) is incorporated in both annual incentive
awards and equity awards.

C1.3a(C1.3a) Provide further details on the incentives provided for the management ofclimate-related issues (do not include the names of individuals).

Entitled to incentive
11

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Chief Executive Officer (CEO)Type of incentive
Monetary reward

Incentive(s)Bonus - % of salary

Performance indicator(s)Achievement of climate transition plan KPIProgress towards a climate-related target
Achievement of a climate-related target
Implementation of an emissions reduction initiative
Reduction in absolute emissions
Increased share of renewable energy in total energy consumption
Increased supplier compliance with a climate-related requirement
Company performance against a climate-related sustainability index (e.g., DJSI, CDP
Climate Change score etc.)

Incentive plan(s) this incentive is linked to
Both Short-Term and Long-Term Incentive Plan

Further details of incentive(s)PMI’s Board of Directors (BoD) decided to better reflect PMI’s commitment tosustainability, which is the core of its corporate strategy, by including the Sustainability
Index as one of our performance metrics under equity awards. We use Performance
Share Units (PSUs) as the three-year incentive in our executive compensation program,which is intended to motivate our executives to produce results that enhancesustainable shareholder value and strengthen the company over the long term. For a fulllist of individuals comprising the corporate executive team, please refer to Item 10 of theAnnual Report on Form 10-K for the year ended December 31, 2022.
As set out in PMI’s Proxy Statement 2023, for the 2022-2024 PSUs, the BoD introduced
PMI’s Sustainability Index as one of the three performance metrics. The Sustainability
Index, weighted 30%, consists of two drivers: Product Sustainability (PS), defined as anaggregation of key performance indicators pertaining to social and environmental
impacts generated by the company’s products (measuring progress on its efforts tomaximize the benefits of smoke-free products, purposefully phase out cigarettes, seek
net positive impact in wellness and healthcare, and reduce post-consumer waste); andOperational Sustainability (OS), defined as an aggregation of key performanceindicators pertaining to social and environmental impacts generated by the company’sbusiness activities (measuring progress on its efforts to tackle climate change, preserve
nature, improve the quality of life of people in its supply chain, and foster an empowered
and inclusive workplace). Amongst the OS, PMI’s carbon emission reduction targets,
both in Scopes 1 and 2, and Scope 3, which contribute to our Science Based Targets by
2030 and 2040 and form part of PMI’s Low Carbon Transition Plan, make part of the key
performance indicators.

12Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Explain how this incentive contributes to the implementation of yourorganization’s climate commitments and/or climate transition plan
Tying sustainability indicators, including climate-related indicators, to a formal
Sustainability Index that impacts executive compensation has helped align ESG-related
efforts with outcomes of PMI’s 2021 sustainability materiality assessment and provide abasis for tracking and implementing our sustainability commitments, including withrespect to those in our climate-related strategy and outlined in our Low Carbon
Transition Plan. Members of Company Management are responsible for driving
progress and delivering on our sustainability targets within their respective functions(e.g., mitigate climate change and decarbonizing our value chain to SVP Operations).
PMI’s Sustainability Committee, composed of members of Company Management,
including our Chief Executive Officer, and chaired by our Chief Financial Officer (CFO),
meets at least four times per year. In 2022, quarterly Sustainability Committee meetings
focused on, among other topics, assessing PMI’s performance on the Sustainability
Index and discussing efforts to further embed sustainability, including our strategies totackle climate change, within PMI, effectively manage ESG risks, including climatechange risks and opportunities, and enhance ESG data reliability. The Sustainability
Index helps frame ESG priorities and action points.

Entitled to incentive
Corporate executive teamType of incentive
Monetary reward

Incentive(s)Bonus - % of salary

Performance indicator(s)Achievement of climate transition plan KPIProgress towards a climate-related target
Achievement of a climate-related target
Implementation of an emissions reduction initiative
Reduction in absolute emissions
Increased share of renewable energy in total energy consumption
Increased supplier compliance with a climate-related requirement
Company performance against a climate-related sustainability index (e.g., DJSI, CDP
Climate Change score etc.)

Incentive plan(s) this incentive is linked to
Both Short-Term and Long-Term Incentive Plan

Further details of incentive(s)PMI’s Board of Directors decided to better reflect PMI’s commitment to sustainability,
which is the core of its corporate strategy, by including the Sustainability Index as one of
our performance metrics under equity awards. We use Performance Share Units (PSUs)
13

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

as the three-year incentive in our executive compensation program, which is intended tomotivate our executives to produce results that enhance sustainable shareholder value
and strengthen the company over the long term. For a full list of individuals comprising
the corporate executive team, please refer to Item 10 of the Annual Report on Form 10K for the year ended December 31, 2022.
As set out in PMI’s Proxy Statement 2023, for the 2022-2024 PSUs, the Board
introduced PMI’s Sustainability Index as one of the three performance metrics. The
Sustainability Index, weighted 30%, consists of two drivers: Product Sustainability (PS),defined as an aggregation of key performance indicators pertaining to social andenvironmental impacts generated by the company’s products (measuring progress on its
efforts to maximize the benefits of smoke-free products, purposefully phase out
cigarettes, seek net positive impact in wellness and healthcare, and reduce postconsumer waste); and Operational Sustainability (OS), defined as an aggregation of key
performance indicators pertaining to social and environmental impacts generated by thecompany’s business activities (measuring progress on its efforts to tackle climatechange, preserve nature, improve the quality of life of people in its supply chain, andfoster an empowered and inclusive workplace). Amongst the OS, PMI’s carbon emission
reduction targets, both in Scopes 1 and 2, and Scope 3, which contribute to our Science
Based Targets by 2030 and 2040 and form part of PMI’s low carbon transition plan,make part of the key performance indicators.

Explain how this incentive contributes to the implementation of yourorganization’s climate commitments and/or climate transition plan
Tying sustainability indicators, including climate-related indicators, to a formal
Sustainability Index that impacts executive compensation has helped align ESG-related
efforts with outcomes of PMI’s 2021 sustainability materiality assessment and provide abasis for tracking and implementing our sustainability commitments, including withrespect to those in our climate-related strategy and outlined in our Low Carbon
Transition Plan. Members of Company Management are responsible for driving
progress and delivering on our sustainability targets within their respective functions(e.g., climate change mitigation and decarbonization of our value chain assigned to SVP
Operations). PMI’s Sustainability Committee, composed of members of Company
Management, including our Chief Executive Officer, and chaired by our Chief Financial
Officer (CFO), meets at least four times per year. In 2022, quarterly Sustainability
Committee meetings focused on, among other topics, assessing PMI’s performance on
the Sustainability Index and discussing efforts to further embed sustainability, including
our strategies to tackle climate change, within PMI, effectively manage ESG risks,
including climate change risks and opportunities, and enhance ESG data reliability. The
Sustainability Index helps frame ESG priorities and action points.

14

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C2. Risks and opportunities
C2.1(C2.1) Does your organization have a process for identifying, assessing, andresponding to climate-related risks and opportunities?
Yes

C2.1a
(C2.1a) How does your organization define short-, medium- and long-term time
horizons?
From(years)To
Comment(years)Shortterm

05

We evaluate as short-term the risks and opportunities that may
materialize within the next five years. Short-term risks are identified
and assessed through a variety of internal processes including,among others:• As part of our quarterly financial reporting where short-term profits
and losses are evaluated.
• Our annual long-range planning process is updated annually andreviews and sets business direction over a 3–to–5 year horizon.

Mediumterm

510Those risks and opportunities that may materialize by the 2030-time
horizon used for scenario analysis in our Climate Change Risks andOpportunities Assessment (CCROA). This time period aligns with
PMI’s external commitment of carbon emission
reductions for scope 1+2+3 emissions as approved by the Science
Based Targets initiative. It is also a reference date for mostinternational policies and regulations (e.g., EU 2030 climate targetplan).

Longterm

10

20

Those risks and opportunities that may materialize until the 2040-time
horizon used for scenario analysis in our CCROA. This time periodaligns with PMI’s external commitment of net zero emissions as
approved by the Science Based Targets initiative. It is also anintermediate step toward internationally agreed policy commitments to2050 (e.g., EU climate law). Under this time-horizon, physical risks
aremore likely to occur because climate extremes are expected tointensify as climate change worsens.

C2.1b(C2.1b) How does your organization define substantive financial or strategic impact
on your business?
15

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Alongside physical impacts such as rising sea-levels and changing weather patterns, there aretransition risks such as new carbon-related regulations and taxes, changes in manufacturing
technology and evolving consumer preferences, which can affect business units or theorganization due to stakeholder or customer concerns. Being at the forefront of addressing the
global challenge of climate change also presents opportunities. Some correlate to goodpractices such as energy-use reduction and the protection of forests and waterways; others
arise through product eco-design and adaptation measures. PMI, alongside many of its
suppliers, is working within a context of stabilizing the global temperature rise to below theinternationally agreed 1.5-degree Celsius scenario. We understand the potential impacts ofclimate change across all areas of our operations, particularly upstream in our supply chain.
The climate crisis, as acknowledged by the international community, threatens livelihoods, inparticular the most vulnerable people around the world. It impacts human population
movement, biodiversity, access to water, global health, food security, and other environmental
changes such as soil degradation and desertification. Beyond its human repercussions, climatechange could threaten business continuity. This is especially the case for businesses involving
an agricultural supply chain. For PMI, costs of raw materials such as tobacco leaf and cloves
may rise, and both consumers and our employees are becoming increasingly sensitized to theenvironmental impact of corporate actions. Upfront expenditures with longer-term returns are
required. At the same time, PMI’s efforts to reduce its GHG emissions, such as throughincreased energy efficiency, could alleviate potential costs and create a competitive advantage
by meeting or exceeding the expectations of consumers, employees, and other stakeholders.
A substantive financial or strategic impact can vary depending on which of the above aspects ofthe business are considered as impacted and the potential combination of them. The level ofcriticality will have different threshold when comparing, for example, impact within our
agricultural supply chain (engagement with hundreds of thousands of farmers) and thedevelopment of new products or the compliance with regulations on carbon emissions in ourfactories. Therefore, in PMI, as explained in the below paragraph, we refer to a variety offactors that independently or in combination may affect the achievement of our smoke-freevision.
PMI evaluates a “substantive impact” (e.g.: financial or strategic impact) based on a variety offactors and quantitative indicators including but not limited to the potential impact on financial
performance as well as other strategic factors that may affect PMI’s efforts and/or delivery
towards a smoke-free future, ultimately replacing cigarettes with smoke-free products. The
impacts reported as substantive strategic or financial impacts are defined as those identified
and prioritized by management in our value chain, through key enterprise risks based on four
risk dimensions: the impact a risk could have on the organization if it occurs, the likelihood arisk will occur, the velocity with which a risk would affect the organization if it occurs, and theinterconnectivity of a risk with other risks, that exceed defined thresholds at the corporate level.
As part of the Company’s annual Integrated Risk Assessment (IRA) process, we have in place
an extensive risk control program by which we assess the climate change physical andtransition risks. Specifically, in our operations, locations with values (among others, buildings,
machinery & equipment, stock & supplies, inventory, and business interruption exposure)exceeding USD30 million range are surveyed by engineers from our property insurer, whoprovide recommendations to us on the magnitude of environmental risks, for example risk offlooding that could cause reduction or disruption in production capacity in specific locations,and the cost of management. A survey threshold of USD 30 million is used to focus
16

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

assessments and mitigation efforts to sites likely to present beneficial cost to risk improvement
ratios. Recommendations for risk management are given if the expected reduction in thefinancial impact of the risk exceeds the cost to meet the recommendations by a factor of 10 ormore. Internally, we focus on recommendations above the USD50 million range as
management of identified risks can involve substantial capital investment and disruption tooperations including our supply chain.
In 2020+ risk forecasting terms, in relation to our tobacco supply chain, we assumed as
substantive risks those with a potential impact in excess of USD5 million or a raw material
impact in excess of 1000 metric tons of tobacco leaves. This definition is applicable to PMI’s
agricultural supply chain.

C2.2(C2.2) Describe your process(es) for identifying, assessing and responding to climaterelated risks and opportunities.

Value chain stage(s) covered
Direct operations
Upstream
Downstream

Risk management process
Integrated into multi-disciplinary company-wide risk management process

Frequency of assessment
More than once a year

Time horizon(s) covered
Short-term
Medium-termLong-term

Description of process
1) PMI’s Enterprise Risk Management practices (ERM) is a three-step, interconnected
process designed to identify, assess and manage/ respond to multidisciplinary risks andopportunities that can have a substantive financial or strategic impact on the company's
ability to achieve our strategic business objectives and create value over time. The ERM
takes place periodically, with reporting on quarterly basis, covering short, medium- andlong-term time horizons. Each step involves multiple stakeholders and results indifferent types of actions. We identify and prioritize key risk areas based on the impactof a risk on PMI were it to occur, its likelihood, its velocity, and its interconnectivity withother risks. PMI assigns ownership of each prioritized key risk area to a member of ourCompany Management, with oversight from the Board of Directors or a particular Board
committee. With support and insights provided by the risk management and Corporate
Audit functions, our Company Management reports regularly on these risks to theappropriate Board committees and to the entire Board of Directors throughout the year.
17Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

As part of its risk management practices, the company has established a Corporate Risk
Governance Committee (CRGC) made up of senior executive officers. At the request of
the CRGC, the Risk & Controls function defines the company’s approach to risk
management and coordinates a periodic enterprise risk assessment. The risk
assessment process includes risk identification and evaluation at market, regional andcentral level, risk prioritization, risk responses definition and deployment and theaggregation of risks into defined risk landscape categories. Outcomes of risk
assessments are reported to internal stakeholders at multiple levels and across thecompany, for an improved decision-making, as well as to external stakeholders (such as
regulators and shareholders). Reporting requirements, including frequency, aredetermined based on report user needs, and the level at which reporting is done. In
general, most of ERM related reporting is done quarterly, which is also driving theunderlying activities and practices. ESG-related risks and opportunities are consideredwithin our enterprise risk assessment which also leverages the company’s sustainability
materiality assessment process. More specifically, the priority ESG topics identified by
the latest sustainability materiality assessment determine which ESG risks andopportunities are considered in the enterprise risk assessment.
In this context, our enterprise risk landscape addresses climate-related risks in two keyrisk areas, namely “ESG” risk and “Business Disruption” risk. The key risk area “ESG”
informs about the risk of being unable to implement an effective sustainability strategy
prioritizing relevant ESG-related risks, progress against set aspirations, and reportresults. The key risk area “Business Disruption” refers to the risk of potential disruptionof our supply chains and logistics as well as the inability to operate due to, among
others, an inadequate climate-proofing strategy along the value chain. The key risk area
“Business Disruption” is owned by our Senior Vice President Operations, whereas the
key risk area “ESG” is owned by our Chief Financial Officer.
2) Integrated Risk Assessments (IRA) are tailored to the priority ESG issues in direct
operations and supply chains previously identified, including climate change,
deforestation, and water management. Since 2015, we periodically (every 3-4 years)
carry out a Climate Change Risk and Opportunity Assessment (CCROA) to understandthe exposure to climate-related physical and transition risks over time under different
climate scenarios and time horizons (short, medium and long term), following therecommendations of the TCFD. We have performed a CCROA in 2015, 2019 and 2022.
Contents of the PMI’s TCFD report published in 2023 have been shaped by the 2022
CCROA results. We have identified and quantified a range of physical and transition
risks and opportunities across our value chain to 2030 (mid-term, 5-10 years) and 2040
(long term, >10 years) under different climate scenarios in line with the 1.5°C, 2°C, and
3°C global warming scenarios.
The physical risk assessment covered around 600 assets (such as tobacco crops,
factories, warehouses) around the world with a spatially explicit approach based on the
IPCC definition of climate risk (hazards, asset exposure and vulnerability). Climate
variables and extremes were simulated by using multiple outputs from 30 different
climate models participating in the Climate Model Intercomparison Project (CMIP5) for
the time period 2010–2040.
Transition risks have been assessed under two NGFS mitigation pathways consistent18

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

with the 1.5°C Paris Agreement target and beyond (+3°C) until 2040: The Net Zero 2050
scenario, aligned to SSP2-1.9 (1.5°C), and the Current Policies scenario, aligned to
SSP2-4.5 (3°C). These scenarios are built on the Integrated Assessment Models (IAMs)
whose results for prioritized (according to their velocity, likelihood and materiality) risks
and opportunities have been compared with a business-as-usual scenario to estimate
the value at stake.
To prevent climate-related impacts from materializing, PMI is already adopting or hasplanned several mitigation and adaptation measures, as described by PMI’s 2022 TCFD
report and in our Low Carbon Transition Plan.
PMI developed an extensive risk control program to assess and mitigate physical risks
from climate change; locations exceeding USD30 million range are surveyed byengineers from our property insurer, who provide risk management recommendations.
3) While IRAs are stand-alone projects developed on periodical basis to tackle specificenvironmental issues, the Environmental Risk Analysis (ERA) is PMI's main process to
identify and manage substantial risks and opportunities at the operational level on amonthly basis for short and medium term. The ERA builds on the IRA to further analyze
operational implications from the identified risks and opportunities. Results from the
ERA are used by PMI's stakeholders to develop programs, roadmaps, action plans,
targets, and budgets to either prevent substantial risks from materializing, or to seize
opportunities. Results are monitored by each of PMI's relevant department andcommunicated to the relevant stakeholder monthly.

C2.2a(C2.2a) Which risk types are considered in your organization's climate-related risk
assessments?
Relevance & Please explain
inclusion
Current
regulation

Relevant,
alwaysincluded

We are subject to international, national and local environmental andclimate-related laws and regulations in the countries where we operate.
Relevant regulations are considered in our climate-related transition
risk/opportunity assessment process.
In 2022, we conducted our most recent evaluation of climate changerisks aligned with TCFD recommendations. This allowed theidentification of transition risks for PMI related, e.g., to an increase incarbon pricing and taxation affecting operations manufacturing andlogistics.
We particularly monitor countries with a local ETS scheme already inplace, i.e., Canada, Switzerland, South Africa and Republic of Korea. In
those countries the risk is rather moderate at the moment due to theemission profile of our manufacturing sites vs. the minimum thresholdneeded to have a significant financial impact. We closely monitor
regulations on minimum threshold and signals of changes in theseschemes, and we consider those aspects in the strategic deployment ofour manufacturing and supply chain networks including investments to19

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

increase energy efficiency.
We monitor current regulations in those markets also due to potential
risk they can pose in case we would decide to expand the production
capacity of our manufacturing sites located there; especially in relation
to our SFP products which are more energy intensive compared toconventional products and resulting in increased GHG emissions.
Increased carbon prices and carbon taxation could result in higher
costs for manufacturing emissions.
Emerging
regulation

Relevant,
alwaysincluded

There is a clear international trend towards stricter climate-related
regulations which could increase our operational costs.
In 2022, we conducted our most recent evaluation of climate changerisks aligned with TCFD recommendations. This exercise allowed theidentification of mid- and long-term transition risks for PMI business
related to emerging regulations, such as the implementation of the
Carbon Border Adjustment Mechanism (CBAM) to put a fair price on
the carbon emitted during the production of carbon intensive goods thatare entering the EU. We estimated that CBAM tax on imported N
fertilizers could result in increased N fertilizer procurement costs for
PMI in EU markets.
We also assessed the potential risks related to an increase in carbon
prices and taxation to pulp and paper suppliers due to implementationof more stringent international regulations on land use change andtraded commodities.

Technology

Relevant,
alwaysincluded

In 2022, we conducted our most recent evaluation of climate changerisks aligned with TCFD recommendations, which allowed to further
identify mid- and long-term transition risks for PMI business related totechnology. The identified risks relate to technology improvements
resulting in existing equipment becoming either non-compliant withupcoming energy regulations and/or too expensive to run due to thehigher costs of fossil-fuel within our own operations and supply chains.
Existing equipment would need to be replaced with associated costs ofadopting new tech, exposing our operations to requirements forincreased capital expenditures.
In 2022 we submitted our net zero emissions Science Based Target(SBT) aligned with a 1.5°C scenario, which were approved by SBT
initiative. PMI’s decarbonization path to achieve new SBTs will need tobe more aggressive, while SFP production growth will drive increase inenergy consumption and related GHG emissions. A strong investment
in new tech will be needed to achieve the decarbonization path that wehave committed to, with the risk that despite our investments we may
not be able to achieve our SBT commitments due to increased energy
required to produce the consumables for our SFPs.
PMI’s risks also relate to not following technological advancements(e.g. low energy efficiency equipment), investing in obsolete
20

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

technologies (e.g. non-regenerative agricultural practices) and higher
costs/polluting technologies (e.g. fossil-fuel based tech) whendeveloping new drivetrain technologies, new farming and curing
techniques and equipment, new tech in retail and new product design.
All these risks exist, and PMI needs to ensure neither it nor its suppliers
invest in obsolete technology to remain up to date with technologicaldevelopment within its own operations and supply chains. This can be
costly and potentially impact operating costs if not mitigated.
We continuously assess risks related to technological improvementsthat support the transition to a lower-carbon and energy-efficientbusiness model.
An example of this risk is related to our electronics manufacturing
suppliers which are key to achieve our smoke-free future goal. We
assessed through LCAs the risk of carbon footprint increase due to newelectronics suppliers and the impact if they would not invest in low
carbon technologies to mitigate the emissions in their processes andresulting in PMI potentially not being able to meet its carbon reduction
SBT commitments.
Legal

Relevant,
alwaysincluded

We are subject to international, national and local environmental laws
and regulations in the countries we operate. We have specificprograms across our business units designed to meet applicable
environmental compliance requirements to reduce our carbon footprint,
wastage, water and energy consumptions and prevent any climaterelated mitigation claims.
Our subsidiaries expect to continue and/or increase expenditures inorder to drive improved performance and maintain compliance withenvironmental laws and regulations, as first of all, compliance whichsuch policies and regulations are core to the way PMI operates;
moreover as non-compliance could results in fines, or even in partial or
total withdrawal of the operation permit. We assess and report thecompliance status of all our legal entities on a regular basis. Based on
the management and controls we have in place and our review ofclimate change risks (both physical and regulatory), environmental
expenditures have not had, and are not expected to have, a significant
adverse effect on our consolidated results of operations, capital
expenditures, financial position, earnings or competitive position.
In 2022, we conducted our most recent evaluation of climate changerisks aligned with TCFD recommendations. This exercise allowed theidentification of mid and long-term legal transition risks for PMI
business, including those triggered by changes in climate policy or
regulations. Legal compliance to such policies and regulations changes
are core to the way PMI operates but may result in increased
operational costs for PMI, such as:- increasing procurement costs linked to higher cost of raw materials
and the cost of production;

21

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

- impacting logistics and operations through increased carbon pricing;- affect mechanized farming processes through new regulation onenergy efficiency requirements; and- impacting tobacco curing activities through additional regulation on
fuel type, such as more stringent regulation on biomass production andwood harvesting from forest areas
PMI has not been subject to significant fines in the reporting year
related to environmental regulations specific to climate change.
MarketRelevant,
alwaysincluded

In 2022, we conducted our most recent evaluation of climate changerisks aligned with TCFD recommendations, which confirmed theidentification of transition risks for PMI business related to market
changes, such as increase in energy prices for fossil fuels used in our
curing barns, manufacturing and logistics, or shifts in supply anddemand for certain commodities, products and services. For PMI thisincludes risks of increasing costs of sourcing (including materials suchas water and diesel) and increasing costs for suppliers, resulting inhigher procurement costs. It also includes increasing competition for
agricultural land, leading to less available or more expensive land for
tobacco growing. Other market risks are related to PMI’s investors andfinancial performance and include climate risk metrics by credit rating
agencies, affecting PMI’s score, and a general trend of investors
moving away from carbon-intensive sectors. Finally, downstream
market risks are associated with shifting consumer demands for lowercarbon products.
Concrete examples of how risks are assessed are described below:
1. Diesel is widely used in farming practices. Energy is a significant
cost in farming practice within PMI’s agricultural supply chain in relation
to the mechanical equipment used. If diesel prices increase, the overall
cost of producing raw tobacco at directly contracted farms, as well as
the cost of sourcing tobacco from third-party leaf suppliers, will increase
as a result. This would cause an associated indirect increase inprocurement costs as the price of tobacco will respond to upward
pressure on the cost of production. 2. We track commodities (pulp,
aluminum, glycerin, ethylene, mint crystals, guar seeds, coconut shellto name a few) through market indicators (RISI, ICIS, IHS or MCX) thatprovide directional pricing, its volatility and supply chain scenario
analysis of the commodities allowing PMI to provide visibility on thesource of its product and ensure suppliers comply with relevant(industry, regional, international) regulation(s).
3. A market risk associated to the increase in costs of input materials
and fuels (both fossil fuels and biomass) for farmers in relation totobacco curing process, which could indirectly impact PMI’s
procurement expenditure.

22

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Reputation

Relevant,
alwaysincluded

Stakeholder interest and expectations in climate change adaptation are
increasing as the effects of climate change become more apparent,
society is asking businesses to become part of the solution changing
their practices. NGOs campaigns can impact companies’ reputationand have business consequences on license to operate and bottomline.
PMI aims to combat climate change and set actions to act upon it.
Those actions are conducive to substantiate PMI’s leadership insustainability as integral part of the success of its business
transformation.
Thus climate-related reputational risk is included into PMI’s risk
assessments considering the potential risk it could have on the longterm success of the company.
In 2022, we conducted our most recent evaluation of climate changerisks aligned with TCFD recommendations and identified transition risks
related to the reputation of PMI as a sustainability leader in the area ofclimate change; this evaluation included a survey of opinions of certain
PMI stakeholders on how PMI contributed to or detracted from thetransition to a lower-carbon economy.
PMI identified that reputational risks can be driven by multiple factors
including financial performance, investors’ priorities, reporting requests,
internal workforce concerns around sustainability, and challenges
related to raising capital for the agriculture sector as a carbon intensive
one.
E.g., PMI identified failure to address enhanced reporting requests as apotential reputational risk for the company. Increased reporting not only
requires additional internal resources, but also exposes the company toa broader stakeholder community and sectoral benchmarking. PMI
manages this risk by having an internal reporting team that coordinates
reporting initiatives, as well as engagement with external consultants toensure consistency through multiple reports, transparent
communication, effective benchmarking against relevant sustainability
ratings and the use of best practice methodologies and standards. We
also conduct periodically a sustainability materiality assessment with abroad range of stakeholders. We strengthened our communication
through our reporting.

AcutephysicalRelevant,
alwaysincluded

Extreme weather events due to climate change have the potential tosignificantly impact our operations, buildings and suppliers, therefore
having a substantive impact on our supply chain and on our business
continuity plan. Flooding and storms can damage our buildings andgoods, as well as the crops of our farmers and our logistics networks.
In 2022, we conducted our most recent evaluation of climate changerisks whose outcomes shaped PMI’s TCFD Report, published in early2023. The physical risk assessment covered around 600 assets (suchas tobacco crops, factories, warehouses) around the world with a23

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

spatially explicit approach based on the IPCC definition of climate risk.
Climate variables and extremes were simulated by using multiple
outputs from 30 different climate models participating in the Climate
Model Intercomparison Project (CMIP5) for the time period 2010–2040.
These variables were used to assess the exposure of each site toclimate hazards including heatwave, and flooding, classified as acutephysical risks. By comparing against baseline conditions (1980–2010),
we estimated the change in frequency and intensity (moderate, severe,
extreme) of climate-related physical hazards for each location. Some of
the risks identified in our tobacco supply chain were those resulting
from flooding e.g. in. Brazil, Philippines, and Indonesia, which could
lead to relevant crop losses to our farmers and disruptions to ourlogistics networks. In our manufacturing sites in Asia Pacific, Latin
America and Middle East, cumulative potential losses due to extreme
flood events ranges from USD24 million to USD138 million dependingon the time horizon and climate scenario absent additional mitigation
actions. I This information is reviewed regularly with top management; itenables risk/opportunity identification and management at the company
and asset level, and includes regulatory climate change aspects andgeopolitical risk. Our substantial tobacco leaf inventories can help
mitigate short to medium term impacts.
Chronic
physicalRelevant,
alwaysincludedLonger term weather shifts due to climate change have the potential tosignificantly impact our operations, assets and supply chain therefore
having a substantive impact on our supply chain and on our business
continuity plan.
In 2022, we conducted our most recent evaluation of climate changerisks whose outcomes shaped the PMI’s TCFD published during 2023.
The physical risk assessment covered around 600 assets (such as
tobacco crops, factories, warehouses) around the world with a spatially
explicit approach based on the IPCC definition of climate risk. Climate
variables and extremes were simulated by using multiple outputs from30 different climate models participating in the Climate Model
Intercomparison Project (CMIP5) for the time window 2010–2040.
These variables were used to assess the exposure of each site toclimate hazards including drought and sea level rise, classified as
chronic physical risks. Results show that water stress could directly
impact six factories across Africa, Europe, Latin America, and the
Middle East, with cumulative potential losses due to persistent drought
ranges from USD12 million to USD252 million depending on the time
horizon and climate scenario absent additional mitigation actions. Sea
level rise could limit port operations in Asia Pacific regions, resulting inincreasing logistics costs for PMI and supply chain disruption.

24

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C2.3
(C2.3) Have you identified any inherent climate-related risks with the potential to havea substantive financial or strategic impact on your business?
Yes

C2.3a
(C2.3a) Provide details of risks identified with the potential to have a substantive
financial or strategic impact on your business.

Identifier
Risk 1

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk driver
Current regulation
Carbon pricing mechanisms

Primary potential financial impact
Increased direct costs

Company-specific description
Our operations throughout the globe are subject to various climate-related regulations.
There is a clear international trend towards increasing and stricter climate-related
regulations which could increase our operational costs.
These include but are not limited to CO2 related trading schemes such as the EU
Emission Trading Scheme (EU ETS). As of December 31, 2022, PMI owned andoperated a total of 3 factories in the Netherlands, Italy and Romania covered by the EU
ETS, with total verified emissions of over 54,000 metric tons of CO2e. PMI doesn’t have,for the time being, other factories in the EU and EU accession countries which could
become subject to EU ETS. Although the cost of EU ETS carbon credits has been lower
in the past several years due to a large surplus of allowances, the cost of allowances
has increased lately and is expected to further rise.
According to the European Commission, allocation to industrial installations received
80% of the free allowances in the 2013. This proportion has been decreasing gradually
year-on-year, down to 30% in 2020.
The revision for phase 4 (2021-2030) of the revised EU ETS directive will trigger more
stringent greenhouse gas emissions reduction target with a mix of interlinked measures,among which, an increase of the pace of emissions cuts at an annual rate of 2.2% as of
2021.
This could lead to an increase in PMI’s operating costs of purchasing allowances in the
future, particularly in high emission locations in EU markets.
The potential identified risk is to see the production prices increase impacting operating
25

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

costs.
We closely monitor if regulations on minimum threshold in these schemes are changing
and signals of new emerging regulations and we consider those aspects in the strategic
deployment of our manufacturing and supply chain networks including investments toincrease efficiency.
If this impact reveals to be substantial, we would focus our efforts to increase energy
efficiency in those factories.

Time horizon
Short-term

Likelihood
Very likely

Magnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
5,400,000

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure
Although the cost of EU ETS carbon credits has been lower in the past several years
due to a large surplus of allowances, the cost of allowances is expected to increase due
to stricter regulations and more significant long-term reforms to reduce oversupply.
According to the European Commission allocation to industrial installations received
80% of the free allowances in 2013. This proportion has been decreasing year-on-year,
which could lead to an increase in our operating costs of purchasing allowances in the
future. Based on a comprehensive review of policies and methodologies (price corridor
from ICPC), we recognize the importance of defining a carbon price per ton of CO2ethat will remain stable over time and ensures that climate transition risks are embedded
in capital expenditure decisions (i.e., in order to allocate capital for the best return interms of carbon reduction and cost-effectiveness). Since 2020, as we step up our
ambition to reduce carbon emissions, aligned with the 1.5-degree trajectory, we apply
an internal methodology to model a Shadow Carbon Price integrating in today’s shadow
carbon price evaluation, the transition risks 10 years in advance for a forward-looking
approach. In the 2022 exercise, for example, the PMI’s shadow carbon price wasrevised to USD 105 per ton of CO2e (from USD65).
We estimate the potential financial impact to be USD5.4 million considering:- the above and a worst-case scenario of constant emissions as of 2022 (whereas
emissions due to the growth of production capacity are evened out by improvements in
26

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

energy efficiency and other mitigation measures);- the carbon footprint profiles of our 3 factories in EU ETS scheme in 2022 and applying
an annual cost of emissions allowances forecast to be on an average of USD100/tCO2
in the short to medium term.
The calculation applied is the following:
54,000 t/CO2e (representing the emissions of the 3 factories) * $100 = USD 5,400,000

Cost of response to risk
20,400,000

Description of response and explanation of cost calculation
Our plants have undergone an energy efficiency program to ensure that the carbon tax
will be kept as minimal as possible, further aiming to reduce below threshold in the
future and be exempted from the scheme.
We manage the risk through our Energy Management Program (EMP), which consistsof energy consumption monitoring (EMS) and investments in energy conservation andefficiency improvement projects. We have an energy monitoring and targeting system inplace, with an annual cost of USD200 thousand. Drivers like EU ETS and EU EED led
us to consider process changes (e.g., replacement of combustion equipment to more
efficient ones that can potentially reduce our energy load to below the 20MW regulatory
threshold). From 2014-2018 we delisted certain sites from EU ETS as they fell below thetotal combustion capacity threshold. Our EMP enables us to analyze consumptions andserve as basis for potential carbon tax exemptions and “cost to comply” reductions with
the EU ETS and has an annual set budget of around USD10 million.
During the year, we integrated our shadow carbon price (SCP) into the preparation andfinancial evaluation of business proposals aimed at structurally reducing our carbon
emissions, supporting the approval of 121 carbon emission-reduction projects in 2022 –115 under our Energy Savings Initiatives Program (expected to be implemented by2026), as well as 6 projects under our Zero Carbon Technology (ZCT) program. The
adjustment of our shadow price from USD 65 to USD 105 per ton of CO2e in the lastquarter of the year supported the approval of two projects under our ZCT program.
E.g., in our manufacturing site in Italy, a complex solution space has been approved in
2022, incl. the site’s electrification plans to enable exiting EU ETS and de-risking
externalities related to energy and ETS price volatility. A mix of technologies fromthermal electrification via heat pumps, electric boiler and in-house PV plants are
expected to be operational by 2025. Such system will deliver 62 GWh thermal energy
annually (approx. 44% of site’s 2022 consumption profile), improving at the same time
the overall heat generation efficiency by 6%, against an investment of approx. USD10.2
million.
Our average annual cost of management is the sum of investments in energy
conservation and efficiency initiatives (approx. USD10million), investment in ZCT(approx. USD10.2million) and the EMS operating costs (USD200 thousand).

Comment
The EU ETS scheme has been an additional driver for the implementation of our energy
efficiency program at global scale to anticipate the clear international trend towards
27

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

increasing and stricter climate-related regulations which could increase our operationalcosts. Our activities in this area fall under the scope of our Drive 4 Zero program, whichaims to eliminate economic losses caused by inefficient energy use. Under the program,
we look for industrial and manufacturing solutions such as heat recovery andmanufacturing-process optimization. We also promote behavioral change through our
Zero Loss Mindset program to eliminate energy losses. Design standards include low
GHG building practices, e.g., for materials and efficient lighting.

Identifier
Risk 2

Where in the value chain does the risk driver occur?
Upstream

Risk type & Primary climate-related risk driver
Acute physicalHeavy precipitation (rain, hail, snow/ice)Primary potential financial impact
Increased direct costs

Company-specific description
In the short- to long-term most of PMIs sourcing regions face risks due to physicalclimate change events, such as cyclones, floods and others, potentially affecting ourtobacco suppliers’ capability to deliver on contracted volumes globally, e.g., in Brazil,
which is among PMI’s top 15 tobacco origins. Changes in precipitation patterns andextreme variability in weather patterns could affect the yield, quality and availability ofthe tobacco crops, triggering a substantive risk in case the potential financial impact isabove our threshold (1000 metric tons of tobacco leaves), resulting in sourcing plansmodification and increasing operational costs. A substantive impact in Brazil could havethe potential to delay deliveries of tobacco, significantly affecting the production cycle all
the way to the product. In 2022 hailstorms, droughts and other climate related events in
Brazil impacted tobacco farmers, causing important crop losses; around 7,900 ha ofproduction in the South regions were impacted due to extreme weather events mainly
hail and drought. The volume losses experienced by tobacco farmers were volumes
already contracted by PMI. We had to work on a contingency plan with our suppliers tofulfil our volume requirements. The volumes had to be booked in a short time window
thus reducing the power of negotiation that is typical of pre-booked volumes andpotentially impacting the price above the substantive impact threshold of USD5 million.
Extreme rainfall in the fields may require pumping of excess water; while extreme
droughts could require long-term irrigation, both of which would increase tobacco
production costs above our substantive financial impact threshold. Changes inprecipitation patterns could also affect local logistics, with extreme precipitation events
potentially leading to inaccessibility of road networks, disrupting the delivery of tobacco.

Time horizon
28

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Medium-term

Likelihood
More likely than not

Magnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
6,600,000

Potential financial impact figure – maximum (currency)
26,700,000

Explanation of financial impact figure
The potential financial impact range is based on a long-term assessment of costs fromphysical climate change risks related to extreme weather events in our tobacco origins
in Brazil in a given year. The range of potential financial impact is derived from previous
years’ data on crop losses due to extreme weather events, which could lead to increase
tobacco production costs as PMI has to look for alternative volumes to be purchased ina short time window, combined with our comprehensive climate change risk assessment
tool. Setting the basis as PMI threshold for substantive financial impact (1,000 metrictons of tobacco leaves) for the specific case of Brazil, the lower range results in an
estimate 3% (of the sourced volume or spend). The upper range reflects an estimationof 10% (of the sourced volume or spend) based on historical crop loss data (actual
impacts reported) and our modelling projection. We estimated the relative magnitude ina range of around USD 6.6 -26.7 million per year while we foresee this risk in the short
to long-term (>6 years) for the Brazilian growers due to supply chain disruptions arisingfrom extreme weather events such as excessive rain fall, hail and drought, andcombining estimated costs due to disruption from crop losses, quality impacts andsupply chain restrictions.
The costs’ estimation takes into account the above factors, however, due to their intercorrelation, our modelling provides a bottom and top range.

Cost of response to risk
382,000

Description of response and explanation of cost calculation
The cost of response is based on the set yearly budget allocated in 2022 toenvironmental projects under the Good Agricultural Practices (GAP) program
implementation in Brazil. GAP program is PMI’s main initiative to tackle physical climate
risks within the company's tobacco supply chain, as identified through our StrategicEnterprise Risks and Company’s Integrated Risk Assessment processes. Under GAP,
29

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

projects are implemented within the timeframe to achieve environmental targets onannual basis and short to medium-term objectives to 2025 and 2030. In Brazil’s
southern region in 2022, near PMI’s manufacturing facility in Santa Cruz do Sul, projects
focusing on increasing the resilience of natural ecosystems to better protect local
communities and their economic activities in tobacco growing areas were implemented.
Around 21,337 contracted farmers supply tobacco to PMI (directly or via third-party
suppliers) within the region and GAP initiatives focus on water source protection andlandscape conservation practices related to tobacco farming incl. monitoring andtraining at farm level. In Brazil around 412 field technicians work year-round with thecontracted farmers and suppliers of tobacco to PMI, visiting the farms on average fivetimes during the crop season to monitor projects implementation. Additionally,
technology is also being deployed, e.g., PMI is using drones to map and scout tobacco
fields in North-East Brazil, generating live data for decision making on crop
management.
In 2022, the cost of these initiatives was around USD 382,000, approx. 75% allocated tocost of on farm water management and water stewardship activities (e.g., spring
protection projects) at landscape level, together with the roll out of a specific “on farmand next to the farm” biodiversity conservation program. The remainder 25% was
allocated to implementation of forest protection, renewable fuels and good agricultural
practices programs incl. training, stakeholder engagement and verification of reported
results. PMI’s investment in these initiatives is included in the cost of response andrepresented approx. 5% of the global 2022 expenditure in environmental projects,
similar yearly expenditure is expected over the next 10 years to support mitigating short
to medium term impacts.

Comment
PMI plans to maintain similar level of investment over the next 10 years.

Identifier
Risk 3

Where in the value chain does the risk driver occur?
Upstream

Risk type & Primary climate-related risk driverMarketIncreased cost of raw materials

Primary potential financial impact
Increased direct costs

Company-specific description
Increased production costs for farmers in the supply chain can be due to changing input
prices, specifically diesel costs. For PMI this has an impact on procurement expenditure
on tobacco from third-party leaf suppliers and directly contracted farmers. Due to fuelcost relevant weight over the other cost components, an increased cost of fuel for
30

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

agriculture could result in an increase of the final tobacco price.
Diesel is widely used in many farming practices, including transportation and theoperation of mechanical equipment. PMI and its supply chain purchases of tobacco are
influenced by the cost of production for farmers, whereas energy used to runmechanical equipment represents a significant part of that cost. Approximately 94% of
our purchased volume comes from mechanized farms consuming on average 123 litersof diesel per hectare of tobacco, depending on the mechanized activities and the soil
type.
If diesel prices increase, the overall cost of producing raw tobacco at directly contracted
farms, as well as the cost of sourcing tobacco from third-party leaf suppliers, will
increase as a result. Based on data collected though surveys in farms where diesel
expenditure represented up to 10% of the overall cost of production, this in turn would
cause an associated indirect increase in procurement costs as the price of tobacco
would respond to upward pressure on the cost of production. Specific markets may be
more susceptible to fuel price fluctuations as they are characterized by farms more
dependent on mechanized activities, for example in tobacco farming in Argentina and
Italy where the adoption of mechanized activities is above the global average; the twomarkets are within PMI’s top 10 sourcing markets causing the sourcing strategy to be
likely affected by a significant fluctuation in diesel price for agriculture. A key factor indiesel prices is global oil prices, which are expected to have different developments
depending on the transition pathway taken at a global level. Under transition pathwaysaligned to 2 degrees scenario or below, the oil demand will be lower than underscenarios associated with greater temperature increases. As such the expected
increase in oil prices and indirectly tobacco prices paid by PMI is lower in a 2-degree
scenario.

Time horizon
Long-term

Likelihood
More likely than not

Magnitude of impact
Medium-low

Are you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
110,000,000

Potential financial impact figure – maximum (currency)
225,000,000

Explanation of financial impact figure

31Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Diesel price was modelled between 2017 and 2030 using the International Energy
Agency (IEA) scenario data for projected oil price, and the assumption that the ratio
between oil and diesel price would remain constant. The cost of diesel to farmers as a
portion of total cost of production was estimated using an internal model and a proxybased on diesel and oil prices from public data sources on typical cost shares for similar
agricultural commodities applied to the mechanization profile of PMI’s farmer base (prorata based on volumes sourced yearly).
This share was then applied to the current and future forecasted procurement spend on
tobacco by PMI each year. It was then assumed that the PMI tobacco procurement
expenditure would remain constant in a business-as-usual scenario and increase by thesame rate as diesel price under climate change scenarios. The result after theapplication of the aforementioned calculation methodology, and factoring farmers’
uptake of new technologies, renewables and future forecasted tobacco requirements,
was that the potential financial impact of the risk is estimated in a range of $110 million
to $225 million per year if not mitigated, while we foresee this risk in the short to longterm (> 10 years). PMI’s response and mitigation strategy are described below.

Cost of response to risk
3,705,000

Description of response and explanation of cost calculation
Since 2002 PMI has implemented the Good Agricultural Practices (GAP) program. GAP
is a program with mandatory requirements for our tobacco suppliers and their contracted
farmers, which provides specific guidance on initiatives to mitigate tobacco growing risks
and impacts related to climate change.
The cost of response is based on the yearly budget allocated to environmental projects
in 2022 (mainly related to climate change, water security and biodiversity) and crop
efficiency improvement projects under the GAP program implementation across all
regions, accounting for approx. a set annual budget of USD 3.7 million in expenditures
globally for initiatives within our tobacco supply chain including but not limited to theadoption of improved and innovative practices by the farmers. Within the GAP budget
we work on a timeframe that matches our SBT to reduce Scope 3 by 50% by 2030 andcarbon net zero target by 2040 with initiatives that aim at decreasing the use of crop
inputs without influencing negatively farm outputs (e.g., yield per hectare). Our effort to
reduce dependency from fossil fuels has led our contracted farmers, especially in Brazil,
to significantly decrease tillage practice. The achievement does not only impact
positively on CO2 emissions and cost of production but supports our biodiversity
program by protecting soil and contributing to stabilize ecological relations in local
microfauna. In 2022, gradual switch to renewable sources and barn efficiency
improvements led to:- 74% of flue-cured tobacco we purchased was cured using renewable and traceable
fuels (mainly in Pakistan, the Philippines, Spain, Malawi, Mozambique, Brazil);- 43% of the fuel was sustainably sourced firewood (and 31% other biomass);- flue-curing GHG emissions intensity was 57% lower in 2022 (vs. 2019 baseline)- reduction of 281,224 tons of CO2e vs. 2019 baseline- the improvement of tobacco curing barn efficiency lowering fuel consumption throughstructural and thermodynamic interventions;32

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

- increased collaboration with PMI Leaf suppliers fostering additional collaboration on
climate change related risks, and in other areas with potential positive impact on ourbusiness and share value with society.

Comment
PMI plans to maintain similar level of investment over the next 10 years.

Identifier
Risk 4

Where in the value chain does the risk driver occur?
Upstream

Risk type & Primary climate-related risk driver
Acute physical
Other, please specify
Drought, flooding and cyclones

Primary potential financial impact
Increased direct costs

Company-specific description
Based on GermanWatch’s annual Climate Risk Index (2021), the Philippines is in the
top 5 countries (4th) most affected by climate change impacts (including cyclones andflooding) resulting in an average loss of $3.2 billion in purchasing power parity to thecountry from 1999 - 2019. The supplies of tobacco leaf in Philippines (one of PMI’s top
15 tobacco sourcing countries), coupled with negative impacts on tobacco crop quality,
and supply chain manufacturing restrictions due to increased severity and frequency of
extreme weather events could impact PMI’s production and tobacco sourcing strategy,
leading to increase in direct costs for PMI, suppliers and farmers. Tobacco leaf growing
can be strongly affected by small changes in physical climate conditions such aschanges in temperature and precipitation. Yield, quality and availability of tobacco crops
could be negatively impacted by changes in precipitation and periods of drought, whichhave increased in frequency in recent years. This could affect PMI´s access to tobacco
supplies, impacting crop buying patterns and operational costs, affecting PMI
manufacturing operations and business directly. We consider a range for the increase in
our operational cost between 16 and 32% given by our modelling and estimation of
medium-long term impact of adverse extreme climate events on our supply chain in thePhilippines. In case of significant damage to the crop we would be forced to look foralternative sourcing areas within the country in a short time, significantly impacting ourpower of negotiation. This would also cause additional efforts in defining supply chain
logistics and approaches, thus driving up the total cost of tobacco sourcing andunfavorably impacting the market budget for Philippines.

Time horizon
Medium-term

33

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Likelihood
LikelyMagnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
2,800,000

Potential financial impact figure – maximum (currency)
5,700,000

Explanation of financial impact figure
The potential financial impact range is based on a long-term assessment of costs fromphysical climate change risks related to drought, flooding and cyclones for the specificcase of the Philippines. The lower range derives from our comprehensive climatechange risk assessment tool combined with the threshold defined for the substantive
financial impact, resulting in a 16% estimate (applied either to the sourced volume orspend). The upper range reflects an estimation of 32% based on our modelling
projection of the expected change for this country with climate change (worst casescenario). We estimated the relative magnitude between USD 2.8 - USD 5.7 million peryear while we foresee this risk in the medium-term (5-10 years) for the Filipino growers
due to supply chain disruptions arising from physical risks such as drought, flooding andcyclones, and combining estimated costs due to disruption from crop losses, quality
impacts and supply chain restrictions.

Cost of response to risk
16,000Description of response and explanation of cost calculation
We implement globally our Local Risk Assessment (LRA) methodology utilizing granularlocal data to highlight water-related risks and engaging local stakeholders including local
Leaf suppliers. PMI utilizes the LRA results to implement initiatives with farmers to
improve agricultural resiliency to flooding and drought such as the case in thePhilippines where the results of the LRA performed in 2021 will lead to the planning andimplementation of interventions in 2022. An example of interventions carried out throughprevious LRAs in the Philippines is the irrigation viability project, which prevents
negative impacts from water discharges after irrigation during the growing stage oftobacco cultivation. This project addresses water availability and quality at local level,
mitigating potential negative impacts due to drought, flood and cyclones. Anotherexample is the identification of moderate risks of flooding and seasonal variability in thelocal risk assessment, which has resulted in interventions focused on mulching andcover crops and training farmers to be proactive in adapting to the annual variability by
34

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

utilizing weather forecast data. The cost of response is based on the yearly budget
allocated to the Philippines in 2022 for environmental projects under the Good
Agricultural Practices program, accounting for approx. USD 16,000 in internal
investment. The engagement with tobacco suppliers to drive improvements in crop
management and environmental protection practices in the Philippines are included in
the cost of response and represented approx. 0.2% of the global expenditure insustainability projects for tobacco from our 2022 GAP budget. In 2022, we continued to
implement projects focused on water source protection, water management practices
and landscape conservation practices related to tobacco farming, contributing toincreasing the resilience of the local agricultural system, in response to increasing
physical risks such as drought, flood and cyclones.
The expected timeframe of completion of this response is 2025, following our updated
sustainability roadmap which includes PMI’s targets to optimize water usage across our
supply chain. This timeframe is revised annually as part of our risk assessment process
and adjusted to reflect any changes arising from additional water interventions that areneeded to mitigate these risks.

Comment
PMI plans to maintain similar level of investment over the next 10 years.

Identifier
Risk 5

Where in the value chain does the risk driver occur?
Direct operations

Risk type & Primary climate-related risk driver
Chronic physical
Other, please specify
Increase water stress, droughts and riverine flood

Primary potential financial impact
Increased indirect (operating) costs

Company-specific description
In 2022 we updated our water related physical risks, that are also integrated in our
TCFD Climate Change Risks and Opportunities Assessment (CCROA). This water risk
assessment was performed with the use of WRI Aqueduct.
The identified water risks related to climate change were physical (chronic & acute).
Throughout the overall portfolio of the manufacturing sites, 4 strategically significant
factories were identified at “high risk” or “extremely high risk” toward water stress,
droughts and/or flood (by flood we mean riverine flood), as result to the shift on the
precipitation patterns. At our manufacturing sites, high quality freshwater is used for
WASH (Water Access Sanitation and Hygiene) services, and for manufacturing
processes including the preparation of flavors, liquid products, in several stages of thetobacco processing, among others. Good quality fresh water is also an ingredient in the
35

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

manufacturing process of our SFP products which are expected to have an increased
importance in PMI’s strategy in the future. PMI expects its direct dependency on water
to increase in the short term (up to 5 years), as the company will transition to SFP which
are more water-intensive in their manufacturing processes.
More specifically, our manufacturing facilities in:a) Italy, 2 sites, are directly exposed to potential disruptions in production capacity due
to water stress and drought. One site was responsible for about 45% of PMI’s total
production of heated tobacco units (HTUs). Our second site is important in PMI
operations, not for its manufacturing capacity, but for the capability to evaluate
manufacturing optimization practices.
b) Indonesia, one site responsible to produce around 15% PMI’s total cigarettes
production, is exposed to riverine flood.
c) Poland, one site, responsible to produce around 14% of PMI’s total cigarettes
production, is exposed to drought.
Several water efficiencies, reuse, recycling and conservation projects have been
implemented in order to increase resilience in drought and water stress and inIndonesia, our insurance and business continuity management plans are designed tomitigate the impacts from short and medium-term flooding events.

Time horizon
Medium-term

Likelihood
More likely than not

Magnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
3,317,000

Potential financial impact figure – maximum (currency)
29,860,000

Explanation of financial impact figure
We estimate the relative magnitude at the range of USD 3.3 million to USD 29.86 million
in the medium term (5-10 years) for our operations based on potential disruptions in
production capacity and current production data, as well as per our insurance’s
estimations (i.e.: in case of a minor event to all four sites, the sum of the cost of
disruption is about USD 3.3 million and in case of a major event to all four sites the sumof the cost of disruption is about USD 29.86 million; the financial impact was estimatedbased on the size of each one of the four manufacturing sites and the respective
36

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

business disruption period, in the case of minor and a major event; the impact in eachsite ranges from USD 0.47million for minor event in the smaller site in Reno, Italy, up to
USD 15.57 million for a major event in the biggest of these manufacturing sites, again in
Italy in Samoggia river basin), not having experienced yet such an event. This impact is
split 65% in our facilities in Italy, 13% in our facility in Indonesia and 23% in our facility in
Poland.
PMI's range of potential financial impacts related to water impacts is developed byestimating potential losses related to minor and major business interruptions. This
assessment is carried out on a per facility basis considering the total cost of businessinterruption per day based on production costs (excluding raw materials). These costs
mainly represent labor costs from business disruption, as production would not be able
to continue. PMI's estimated range of financial impacts can be broken down as in theformula below; the actual number of days of business interruption will depend on thesite’s ability to recover from an event:
Minimum financial impact = Number of interruption days in minor event * non avoidable
operating cost per day
Maximum financial impact = Number of interruption days in major event * non avoidable
operating cost per day

Cost of response to risk
4,813,000

Description of response and explanation of cost calculation
PMI’s response is already underway and has been primarily focused on reducing water
dependency on withdrawals through the implementation of water saving initiatives in ourfactories. The cost response to the water risks, is calculated separately in each site andreported here as a sum of around USD 4.813 million, allocated as 77% in Italy, 21% inIndonesia and 2% in the facility in Poland.
PMI implemented several technologies, aiming to reduce water withdrawals in ourfacilities in Italy during 2022, which are expected to reduce water withdrawals by morethan 20,000 m3 per year. The cost of response related to the design andimplementation of these interventions was USD 3.711 million. Some of the key
interventions included:- standardization of primary washing- collection and reuse of firefighting water through installation of water tank- installation of water saving liquid pump
- boiler blowdown cooling with re-used water
The cost of response (USD1 million) for our facility in Indonesia is estimated based onrecurring cost of external providers used to assess flood and business continuity risk
annually, and related staff costs. Flood risk assessments are undertaken at the site levelto understand how vulnerable sites are to cyclones/local flooding events. These
assessments provide a better understanding on the scale and nature of this risk and our
insurance and business continuity management plans are designed to mitigate theimpacts from short term (0-5 years) flooding events.
37

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

In Poland, since 2013, several water efficiency, reuse/recycling and conservation
projects have been implemented including several modernization initiatives. In 2022
around USD 102,000 was invested, for example in projects aiming at integrating steam
and adiabatic humidifying systems and -reducing water use for steam production were
implemented and are expected to reduce water withdrawals by 6,000 m3 per year.
The expected timeframe of completion of this response is 2025, following our updated
sustainability roadmap which includes PMI’s targets to optimize water usage across ouroperations. This timeframe is revised annually as part of our risk assessment process
and adjusted to reflect any changes arising from additional water interventions that areneeded to mitigate these risks.

Comment
PMI plans to assess and invest in similar projects aiming at addressing such risks in thenext years.

Identifier
Risk 6

Where in the value chain does the risk driver occur?
Upstream

Risk type & Primary climate-related risk driver
Acute physicalDrought

Primary potential financial impact
Increased direct costs

Company-specific description
Physical climate change risks could adversely impact quality and yield of the crops weuse, such as tobacco leaf and cloves. Indonesia tobacco leaf suppliers are exposed tophysical climate change risks (drought and flooding being most critical). Tobacco
growing is strongly influenced by climate change such as changes in temperature andprecipitation. Specifically, in the markets where we source from located in the tropics
and subtropics that are more vulnerable to climate change, precipitation pattern shifts(too much/ too little rain) could impact PMI’s sourcing strategy due to crop losses,
quality degradation and disrupted supply chains.
Clove is an essential raw material for PMI to use in our local kretek brands. Indonesia
produces over 70% of the world’s cloves and PMI purchases 100% of clove supplies
from Indonesian farms (PMI purchases on average 25% of total Indonesian clove
production), making it a substantial market. Clove production is 100% rainfed, making it
highly reliant on well distributed rainfall during the growing season. Clove yields
fluctuate historically, with harvests varying up to 60% over a 4-year cycle and climate
38

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

change might increase these fluctuations if dry seasons are prolonged or rain events
become more extreme. These fluctuations can cause yield volatility, resulting in crop
losses/ decreased yields for suppliers and farmers. Without mitigation measures inplace, these fluctuations in availability could threaten PMI´s largest clove source,
impactful also because PMI is one of the largest kretek cigarettes producer in Indonesia.
To help mitigate potential impacts of El Niño/ La Niña events or other climatic extremes,
the duration of PMI’s stock is extended over a number of years to prepare for any
variations in yields. In the past, these weather shifts have typically only impacted 1
season of clove production, making stocks sufficient but the magnitude andunpredictability of climate change events can now affect more than 1 crop year in a row.
Market price dynamics are very reactive to clove production fluctuations when impacted
by El Niño and La Niña events, making planning extremely difficult for suppliers andfarmers that become more linked to speculative approaches, thus keeping more than
one year of stock becomes a critical action for PMI.

Time horizon
Medium-term

Likelihood
LikelyMagnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
4,800,000

Potential financial impact figure – maximum (currency)
17,700,000

Explanation of financial impact figure
The potential financial impact range is based on a long-term assessment of costs fromphysical climate change risks related to drought for the specific case of Indonesia. The
lower range derives from our comprehensive climate change risk assessment tool
combined with the threshold defined for the substantive financial impact, resulting in an
8% estimate (applied either to the sourced volume or spend). The upper range reflects
an estimation of 28% based on our modelling projection, that feeds our climate change
risk assessment tool (CCRA based on the the on the Representative Concentration
Pathways RCP 2.6, RCP 4.5 and RCP8.5), of the expected impact due to climatechange (worst case scenario) for this country. We estimated the relative magnitude
between USD 4.8-17.7 million per year while we foresee this risk in the short to longterm (>6 years) for the Indonesian growers due to supply chain disruptions arising from39

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

drought and flood events during the growing season and combining estimated costs due
to disruption from crop losses (based on the cost of production, considering potential
production fluctuations), quality impacts, and supply chain restrictions (a critical event,for example, can inhibit farmers from accessing their crops during an event). The rangethat we have calculated is based on the number of days in which activities could not be
performed at farm level, therefore constituting a delay/ loss in production.

Cost of response to risk
80,000Description of response and explanation of cost calculation
As part of our tobacco and clove procurement strategy, we require all tobacco and clove
suppliers to follow our Good Agricultural Practices (GAP), which provide water relatedrisks mitigation through the adoption of climate smart agriculture practices. We
implement globally our Local Risk Assessment (LRA) methodology utilizing granularlocal data to highlight water-related risks and engaging local stakeholders including
tobacco suppliers. PMI utilizes the LRA results to work with farmers to improve
agricultural resiliency to flooding and drought like in Indonesia where the results of our2020 LRA led to planning and implementation of interventions that continued in 2022.
Focus trial projects to mitigate the effects of drought impacts on cultivated crops were
deployed in clove and tobacco growing areas. Drip irrigation systems have been tested
with farmers in clove production to increase resiliency, reduce dependency on rainfall
and avoid productivity losses. As a result, the physiology of the crop has been better
understood and the water relationship including stress thresholds and optimal water
uptake have been systematically tested and more efficient irrigation protocols, for moreconsistent productivity, derived. To ensure business continuity, PMI has substantial
inventories of tobacco leaf which can help mitigate short term impacts (up to 5 years).
The expected timeframe of completion of this response is 2025, following our updated
sustainability roadmap which includes PMI’s targets to optimize water usage across our
supply chain. This timeframe is revised annually as part of our risk assessment process
and adjusted to reflect any changes arising from additional water interventions that areneeded to mitigate these risks.
The cost of response is based on a USD 80,000 budget allocated to environmental
projects in 2022 (related to climate change, water security and biodiversity) under the
GAP program implementation in Indonesia. The engagement with tobacco and clove
suppliers in crop management practices in Indonesia it is included in the cost of
response. The expenditures represent approx. 1% of the 2022 global GAP budget.

Comment
Similar investment is expected over the next 10 years considering projected climatechange and the potential scale-up of current projects.

40

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C2.4
(C2.4) Have you identified any climate-related opportunities with the potential to havea substantive financial or strategic impact on your business?
Yes

C2.4a
(C2.4a) Provide details of opportunities identified with the potential to have asubstantive financial or strategic impact on your business.

Identifier
Opp1

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Resilience

Primary climate-related opportunity driverParticipation in renewable energy programs and adoption of energy-efficiency measures

Primary potential financial impact
Reduced direct costs

Company-specific description
By mapping energy consumption profiles of our manufacturing sites worldwide –currently representing 80% of our overall energy consumption - and available
technologies, PMI has identified the opportunity to switch to renewables and implement
renewable energy (RE) self-generation. The opportunity includes leverage onparticipation in RE programs and adoption of energy-efficiency measures supported bynational policy and incentive schemes. From the mega trends, electrification andthrough the various stimuli to accelerate the transition to a low carbon economy it isanticipated that policy levers to reduce cost barriers for deployment of renewable
technologies will be required. This is likely to include subsidies for energy generation
which have already been a feature in many markets and used successfully to support
the commercialization of renewable technologies making them cost competitive vs.
conventional alternatives. Subsidies for RE self-generation in different countries arefactored into our cost-benefit analyses for pertinent projects so that improved return on
investment can potentially be delivered. Cost-Benefit analysis and RE assessments
have been performed in several of our facilities (e.g., Italy and Turkey). These analyses
proved that not only PMI was able to decarbonize its energy needs by self-generatingenergy, e.g., through photovoltaic technology, use of sustainable fuel like biomass, butalso to drive variability of energy costs and dependency down, and ultimately support
our transition toward a low-carbon business model.
41

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

PMI assesses opportunities to access subsidies for RE generation in its operations indifferent countries, e.g. in Italy and Turkey, and any unused energy could be withdrawn
back from the grid or sold, creating additional benefits supporting the business cases. In
addition, we assess the potential for self-generation through REs, increasing resilienceof the energy supply to our factories and creating a significant savings on energy costs.
Latest internal analysis indicates a global potential for RE capacity through PV within
our facilities to cover around 25% of our current consumption profile, out of whicharound 11% is untapped (not covered by any ongoing investments/programs).
This is embedded into our environmental strategy, annual and long range plans toincrease the use of RE in our manufacturing sites, increasing either self-generation
and/or purchases.

Time horizon
Long-term

Likelihood
Very likely

Magnitude of impact
Medium-high

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
103,000,000

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure
The levelized cost of energy (LCOE) for renewable and non-renewable sources wasmodelled between 2017-2020, drawing from scenario data under 2-degree scenario.
This LCOE metric is a useful summary of the lifetime cost of energy incorporating a
range of factors (IEA's Fuel input electricity and heat generation (PJ), for biomass,hydro, geothermal, wind, solar PV, solar CSP and hydrogen) associated with the type ofgenerating asset including subsidies. The LCOE has been used to compare the benefit
of moving to renewables for energy generation, such as photovoltaic and biomass, withthe current operational expenditure on energy at PMI sites assumed to remain constantin business as usual (BAU) scenario. This LCOE is applied to the current PMI
operational energy spend to compare the cost of energy of the BAU scenario with a fully
renewable uptake over the time horizon considered. The approximate financial impact of
this analysis is based on PMI’s global operations study results and estimations included
in our 2019 Climate Change Risks and Opportunities Assessment. In the assessment
PMI focused on the evaluation of physical and transition risks as per recommendation of
the Taskforce on Climate-Related Financial Disclosures and the approximate potential
42

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

financial impact estimated for this opportunity, in a 2DS, was that PMI would have asaving up to USD 97 million.
We also estimate the overall impact of subsidies for renewable energy generation to ourvarious locations throughout the globe to be around USD 6 million based on the
incentives considered in the renewable projects planned.

Cost to realize opportunity
121,000,000

Strategy to realize opportunity and explanation of cost calculation
Self-generation of renewable energy (RE) is part of PMI’s “carbon neutrality in
manufacturing” strategy, which includes the increase in:- operational efficiency and elimination of losses;- use of RE;- self-generation through investment in RE.
We apply technologies to generate RE across our manufacturing sites, such as
photovoltaic (PV) panels, biomass boilers, heat pumps, and tri-generation processes(combining cooling, heat, and power). Options to self-generate and/or purchaserenewables are evaluated based on analysis of local facilities data, our Energy
Management Program and regulatory radar screen. Decisions to mitigate climaterelated transition risk due to increased cost to source energy for our operations is takenwith the support of an internal shadow carbon price (SCP) ($USD105 per ton CO2e).
PMI’s SCP is an internal lever designed to accelerate carbon emissions reduction by
ensuring that company’s investment decisions reflect all costs, incl. environmental ones.
PMI’s SCP is integrated into financial evaluation and preparation of business cases thatwill impact our carbon emissions.
As an example, in our manufacturing site in Italy, where grid dependency (highly
dependent on natural gas) and ETS price increases are expected, PMI is and continues
to invest in the next 3-4 years in opportunities to reduce direct costs through the site’s
thermal electrification via heat pumps, e-boiler and in-house PV, which in turn is
expected to deliver 62GWh of thermal energy per year and improve overall heatgeneration efficiency by 6%, enabling ETS exit and covering approx. 44% of site’s 2022
consumption profile. Today the site already counts with an operational PV plant, which
generated more than 3% of total energy used on the site in 2022.
These projects enabled PMI to increase share of self-generated energy and to drive
variability of energy costs and dependency down.
The cost to realize the opportunity is a range reflective of the average investment
between USD 42 million (USD 14M*3 years) and USD 200 million (USD 50M*4years).
We estimate a cost of management of USD 121 million – this is based on annual budget
for CAPEX approved by the PMI’s Operations Management Team ranging between
USD 14-50 million over a 3-4 years’ timeframe), based on previous investments andnumber of facilities to switch to RE. The calculation considers the lowest CAPEX budget
in shortest timeframe (3y) and highest CAPEX budget in longest timeframe (4y) to43Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

estimate the range.

Comment
In 2022, self-generation of electricity in our factories reached 5% (vs. 7% in 2021) fromthe total PMI consumption while we reached a 42% of total energy consumption (incl.
fuels and electricity) from renewable sources (vs. 39% in 2021). This will contribute toachieve our target to use 100% of green electricity in our factories by 2025. We are on
track on this target having reached 87% in 2022. PMI plans to maintain similar level ofinvestment over the next 10 years

Identifier
Opp2

Where in the value chain does the opportunity occur?
Upstream

Opportunity type
Resilience

Primary climate-related opportunity driverParticipation in renewable energy programs and adoption of energy-efficiency measures

Primary potential financial impact
Other, please specify
Reduced dependency from fossil fuel and favorably impact farmers profitability andincreased their resiliency

Company-specific description
As cost competitive alternatives to fossil fuels become more readily available, it
becomes attractive for tobacco farmers to switch to low carbon energy sources. Farms
may become more efficient thanks to new technologies; if PMI continues to invest in
programs to improve agricultural practices and encourage uptake of low carbon
equipment, farmers’ expenditure on fuel and energy inputs will fall. The speed of fall incosts will depend on global trends in fossil fuel prices due to oil markets andimplementation of carbon pricing mechanisms. A fall in costs of production should reflectincreased revenues for farmers. The reduced dependency of our tobacco supply chain
on fossil fuels is an opportunity in the short term for tobacco farmers and supports PMI’s
GHG emissions reduction targets in medium to long term. A reduction in cost of fuelmay have an impact on cost of production for tobacco considering that 94% of ourcontracted tobacco volumes are mechanized with an average fuel use ranging 123
liters/ha of farm.
For PMI’s the opportunity lies in enhancing its corporate performance on supply chain
environmental impact, CO2 emissions related to mechanization in tobacco would be
reduced supporting PMI’s SBT target of reducing by 50% its Scope 3 emissions by2030. PMI has set an internal carbon price for its investment in direct operations(Scopes 1 and 2); a work is underway to assess the applicability of the carbon price to44Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 3 emissions allowing to price the positive externalities generated by aprogressive reduction in fossil fuel due to switch to more sustainable and renewable
alternatives.
An example is the implementation of PMI’s Renewable Curing Fuel Program, which
defines a best-practice approach applicable to all flue-cured markets (approx. 51% fromtotal tobacco volume sourced in 2022), with a focus on the transition from fossil to low
carbon fuels. The program results are globally monitored annually by a third-party,
focusing on compliance with our internal standard and fostering continuous
improvements. Where fuel transition results in a switch towards woody biomass, ourstandard prescribes fuel sustainability and traceability (i. from a sustainably managed
forest). With progressive implementation suppliers have effectively transitioned to low
carbon fuels for curing in many countries. Focus remains in countries where curing
practices are still heavily dependent on fossil fuels.

Time horizon
Long-term

Likelihood
LikelyMagnitude of impact
MediumAre you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
110,000,000

Potential financial impact figure – maximum (currency)
225,000,000

Explanation of financial impact figure
The potential financial impact range represents an opportunity for suppliers and farmers
in our tobacco supply chain due to decrease in farmers’ costs of production and reflects
the estimates of their potential increased revenues.
The benefit sought by PMI is not financial, but rather to build stronger resilience within
our supply chain by supporting farmers to switch from fossil to low-emission fuels and it
is designed to remain with the farmers as part of the Good Agricultural Practiceprogram.
Through investment, engagement and collaboration in programs to improve agricultural
practices, PMI is expecting to ameliorate farmers’ conditions and resilience to climatechange risks.
The reduced dependency of our tobacco supply chain on fossil fuels is an opportunity inthe short term for tobacco farmers and supports PMI’s GHG emissions reduction targets
in the medium to long term.
45

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

The range for the potential financial impact figures has been estimated as follows.
Diesel price was modelled between 2017 and 2030 using the International Energy
Agency (IEA) scenario data for projected oil price, and the assumption that the ratio
between oil and diesel price will remain constant. According to an internal model, thecost of diesel to farmers as a portion of total cost of production was estimated on a predetermined cost allocation used for similar agricultural commodities and using a proxybased on the diesel and oil prices from public data sources. The cost output was applied
to the mechanization profile of PMI’s farmer base (pro-rata based on volumes sourced
yearly).
This share was then applied to the current and future forecasted cost of production of
tobacco farmers based on annual PMI purchased volumes. It was then assumed that
tobacco farmers’ cost of production would remain constant in a business-as-usual
scenario and increase by the same rate as diesel price under climate change scenarios.
The result after the application of the aforementioned calculation methodology, andfactoring farmers’ uptake of new technologies, renewables and future forecasted
tobacco requirements, was that the potential financial impact of the opportunity for our
tobacco suppliers and farmers globally could be in a range of $110 to $225 million per
year.
Taking in account our ambition to net zero carbon value chain by 2040, all emissions
reduction within our Scope 3 may have a potential financial impact in time. It has notbeen estimated due to the timeframe of the objective.

Cost to realize opportunity
3,705,000

Strategy to realize opportunity and explanation of cost calculation
Since 2002 PMI implements its Good Agricultural Practices (GAP), a program withmandatory requirements for tobacco suppliers and their farmers, which provides specificguidance on initiatives to mitigate tobacco growing risks and impacts related to climatechange.
Strategic initiatives include the Renewable Curing Fuel Program with focus on curing
efficiency and switching to low carbon curing fuels, making tobacco suppliers and their
farmers more resilient to price increments on fossil fuels. The program started over 10
years ago and is set to deliver on its max. potential by end of 2023 when 100% of ourregular purchased tobacco from China is expected to be cured with renewable fuels (at80% in 2022) after conversion of former curing barns fueled with coal. The reduced
dependency on fossil fuels is an opportunity in the short term for tobacco farmers andsupports PMI’s GHG emissions reduction targets in the medium to long term. The costof response of approx. USD 3.7 million based on a set yearly budget allocated toinitiatives to promote the adoption of improved and innovative practices by farmers inour supply chain (e.g., 15% allocated to our sourcing origins in Asia). Within GAP,
budget is approved on a yearly basis by the sustainable agriculture steering committee
and to be accepted it needs to demonstrate clear impacts on the climate footprint of thecompany in line with the strategy to decrease the use of crop inputs without influencing
negatively farm outputs. PMI plans to maintain similar level of investment over the next
10 years. The focus of incentivizing best practice in PMI’s supply chain responds toincreasing interest for environmental issues from our stakeholders and could enhance46Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

PMI’s reputation and create corporate value. Moreover, through investment in programs
to improve agricultural practices, PMI is expecting to ameliorate farmers’ conditions andresilience to climate change risks, strengthening our engagement and collaboration withthem. In 2022, gradual switch to renewable sources and improved barn efficiency led to:- 74% of flue-cured tobacco we purchased was cured using renewable and traceable
fuels (mainly in PK, PH, ES, PL, CN, MW, MZ, BR)- 43% of the fuel was sustainably sourced firewood (31% other biomass)- flue-curing GHG emissions intensity was 57% lower in 2022 (vs. 2019 baseline)- reduction of 281,224 tons of CO2e vs. 2019 baseline

Comment
PMI plans to maintain similar level of investment over the next 10 years.

Identifier
Opp3

Where in the value chain does the opportunity occur?
Upstream

Opportunity type
Resilience

Primary climate-related opportunity driver
Other, please specify
Insetting represents the actions taken by an organization to fight climate change
within its own value chain in a manner which generates multiple positive
sustainable impacts.

Primary potential financial impact
Other, please specify
Benefit to operating cost and supply chain value creation.

Company-specific description
PMI’s carbon levy is used to virtually charge selected business units for their respective
GHG emissions and establish an internal fund to finance the strategy of the Portfolio ofclimate investments that focuses on high quality GHG emission reduction projects within
PMI’s supply chain (insetting projects) as well as purchasing of quality offsets, tocompensate for the unavoidable emissions from our direct operations (Scopes 1 and 2),
enabling our 2025 carbon neutrality goal. Carbon credits generated through insetting
projects will be primarily used by PMI to compensate unavoidable Scopes 1 and 2
emissions (e.g., which are not currently possible to reduce due to technical or financial
viability). Insetting projects have a lead time of generally two years to generate carbon
credits, in the interim time and to cover offsetting needs, PMI is purchasing carbon
offsets on the voluntary carbon market. The volume required exposes PMI to market
volatility, particularly in the context of the limited availability of high-quality Nature Based
Solutions credits that are the ones preferred by our strategy. The insetting projects
represent an opportunity for PMI to be more resilient to market volatility, potentially47

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

harvesting benefit in terms of operating cost, as well as to generate co-benefits in the
supply chain. In 2021, we identified an insetting project opportunity in our supply chain
in Mozambique. In 2022, we kicked off this project with the objective of increasing
access to potable water to farmers in PMI’s tobacco supply chain by drilling 20
boreholes and distributing 15,000 highly efficient cook stoves. Those interventions will
result in a decreased pressure on natural forests that are typically used as a source of
biomass for water potabilization and cooking purposes, thus allowing the generation ofcarbon credits. We expect the project will benefit between 80,000 and 95,000 people
and will deliver significant co-benefits for the farming communities where PMI operates.

Time horizon
Long-term

Likelihood
Very likely

Magnitude of impact
Medium-low

Are you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
1,050,000

Potential financial impact figure – maximum (currency)
10,500,000

Explanation of financial impact figure
We aim to reduce our absolute GHG emissions through efficiency improvements andinvesting in renewable energy sources and use compensation measures as a lastresort.
Based on our estimation, for PMI to become carbon neutral for Scopes 1 and 2 by 2025,
a consistent amount of credits on an annual basis will be necessary.
For this reason and to provide a pool of projects to use for offsetting of Scopes 1 and 2
in the medium term, a sustainable business strategy was first defined in 2019 leveraging
on the implementation of insetting projects.
PMI’s 2022 direct emissions accounted for 340,084 tCO2e. Based on our emissions
reduction strategy scenarios and simulations, we calculated our potential financial
impact on 210,000 tCO2e/year by 2025. PMI is not willing to invest in large scale
renewable projects generating millions of credits (e.g., hydro or large size wind farms)
due to their reduced relevance our tobacco supply chain environmental strategy andespecially in terms of rural community benefits. Attention will be focused more to smallmedium scale ecosystem interventions in the field of Voluntary Emission Reduction
scheme, with credit prices ranging between $5 and $50 depending on the biodiversity
and social benefits embedded in the project outcomes.
48

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

To fulfil our carbon neutrality commitment in 2025, we would need to invest between
USD 1.05 million (210k * USD5) and USD 10.5 million (210k * USD50), taking into
account the likelihood of price inflation and considering future volatility of the market withthe steadily increasing demand for high quality Nature Based Solutions (NBS) credits.
By investing in a portfolio of insetting projects, PMI aims to generate the credits required
at a fixed price. The strategy will be based on three main strategic initiatives, NBS,
Supply chain and Community projects and Technological climate solutions. Eachinitiative is different in complexity, execution time and quantity of credits generated per
dollar of investment. The objective of the portfolio is to design the investment mix to fulfil
the offsetting needs for Scopes 1 and 2 while promoting technological evolution in thefield of carbon removal cascading the co-benefits as much as possible on PMI’s supply
chain and especially its rural communities.
It is important to note that the financial impact mentioned here doesn’t take into accountall the co-benefits related to reputation, compliance, supply chain resilience to name afew of them.

Cost to realize opportunity
7,800,000

Strategy to realize opportunity and explanation of cost calculation
To realize this opportunity, in 2022 we kicked off an insetting project that aims to provide
access to clean and safe drinking water to rural communities within the tobacco growing
areas of Mozambique, where tobacco farmers part of PMI supply chain are located. The
project is in line with our water access, sanitation, and hygiene (WASH) program, andwill also distribute improved efficiency cookstoves to rural households to further curb therisk of deforestation on the natural forest that surrounds villages and communities. We
determined that the best approach would be to create and manage 20 water accesssites, building or rehabilitating boreholes with solar pump technology, to determine how
well the selected technology works within the local context and its potential to scale up.
The project will qualify for certification by the Gold Standard Foundation, thereby
generating internationally recognized verified emission reductions, which over time willcompensate our residual direct emissions and contributing to achieve PMI’s carbonneutrality target for Scopes 1 and 2 by 2025. According to our feasibility assessment,
the installation of 20 boreholes and the distribution of up to 15,000 improved efficiency
cookstoves could benefit around 100,000 people and avoid over 1.2 million tons of CO2
emissions over 10 years, providing safe drinking water on a daily basis and with
reduced walking distance for the beneficiaries.
The co-benefits of the project are:- to strengthen our supply-chain not only by providing co-benefits to rural communities
but also by being more resilient toward water related issues;- to align our strategy with international expectation such as the Paris Agreement, by
taking ownership of our carbon neutrality ambitions, by being progressively selfsufficient in carbon credit generated and cost-efficient;- to demonstrate leadership by internalizing the cost of externality due to climatechange.

49

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

The project cost is set at USD 7.8 million which includes the cost of building theboreholes (geological survey, pilot drilling, preparation work and construction), the solar
pump technology, the cookstoves, the management, monitoring and certification fees.
The overall budget is broken down in 22% allocated to project development and 78% toproject maintenance.

Comment
PMI aims to continue assessing, and where feasible, investing in opportunities throughinsetting projects in its value chain within the next 10 years. Our insetting projects follow
a specific strategy based on value generation where we collect data and measure theimpact of the activities related to carbon sequestration in three areas: impact on natural,
human and social capital. In our project evaluation process, benefits generated byinsetting activities are accounted and monetized in societal benefit as well as using thesocial return on investment (SROI) index calculated through the ratio between societal
value ($)/Input value ($). We commit to develop insetting projects and more projects ingeneral that remove, sequester and store carbon only with positive SROI. In the case of
the insetting project in Mozambique, the calculated SROI is positive and the main
impact pathways generated with the project are direct health benefits for projectstakeholders that led to positive income effects, education benefits and avoided
deforestation for the forests in the project area.

Identifier
Opp4

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Products and services

Primary climate-related opportunity driver
Development and/or expansion of low emission goods and services

Primary potential financial impact
Reduced direct costs

Company-specific description
PMI has a history of successful packaging innovation, and packaging is an important
aspect of sustainable design (i.e.: eco-design). With respect to our smoke-free products,
our 2025 eco-design and circularity ambitions related to packaging, aim reducing thecarbon footprint of smoke-free products in line with our science-based targets.
In packaging, around 92% of our materials were paper and cardboard in 2022. The
primary function of packaging is to contain and protect products from the point of
manufacture to the retail store or end user, as well as to provide product information.
We are addressing our packaging strategy with a multipronged approach, including
awareness-raising training for our Pack developers, ongoing research into alternatives
to plastic based packaging, and improved design of packaging.
50

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Governance of eco-design and circularity is guided by our design and development
teams and is fully embedded within our innovation process, including regularcheckpoints with senior management. We are committed to evaluating sustainability
characteristics and making design choices that will continually enhance the performanceof all our products and packaging. Life cycle assessment (LCA) and/or other relevant
environmental assessments are performed prior to launch of any new product andresults presented in internal decision-making forums, in accordance with our sustainable
design governance programs.
Research are constantly performed on packaging design to identify new technologies
and materials that could enhance the overall sustainability of our smoke-free productportfolio as well as conventional portfolio. Internal cross-functional teams are alreadyhard at work establishing these innovation pipelines.
As an example, we are actively working in developing an innovative packaging design
solution for our smoke free products addressing material consumption by lowering theweight and the number of secondary packaging components in use, through packaging
material substitution. This initiative estimates a potential magnitude of packaging
components reduction in weight of 55% (about 6.5grams less per pack). This include a
reduction in weight of plastic of 56% (580 tons of plastic less) by the time the solution is
fully implemented. In return, by lowering the total consumption of secondary packaging
requirements through complete redesign, we shall reduce the CO2 footprint of our
packaging for smoke free products by approx. 4% (320 tons of CO2e).

Time horizon
Short-term

Likelihood
About as likely as not

Magnitude of impact
Medium-low

Are you able to provide a potential financial impact figure?
Yes, a single figure estimate

Potential financial impact figure (currency)
8,900,000

Potential financial impact figure – minimum (currency)
Potential financial impact figure – maximum (currency)
Explanation of financial impact figure
As we are reducing the total amount of packaging requirements to produce the sameamount of smoke free products, we are generating financial savings. The yearly
potential financial impact of the opportunity relies on the SVC (Standard Variable Cost in
USD per thousand of smoke-free product units) variation between current solution andinnovation applied to the market contemplated number of smoke free product units.
51

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Based on volumetric price of materials involved in both new and current solutions
factored by the yearly consumption of smoke-free products Stock Keeping Unit (SKU)
selected, we modelled expected savings resulting in a magnitude of USD8.9 million. [(current material price per Kg * current material quantity per SKU – new material priceper Kg * new material quantity per SKU) * SKU volume = savings i.e.: USD8.9 million.
Formula example with generic numbers: [ (USD10/Kg*100Kg) – (USD9/Kg*80Kg) * 100
000 SKU = USD28,000,000]

Cost to realize opportunity
7,000,000

Strategy to realize opportunity and explanation of cost calculation
Following Management validation of the proposed innovation solution and associatedbusiness case that is expected within the next 6 months, our engineering, procurement
and manufacturing solutions teams, as well as our suppliers of direct material andpacking machinery, will collaborate to realize this project following our standard stagegate process. PMI will implement the standard Industrialization Stage Gate process
which includes: detailed specifications creation, involvement of supply chain partners,
Capex activation and machine park upgrade, manufacturing and quality deployment
process through quality and machinability tests and last but not least validation
protocols.
When it comes to Capex, investigations were conducted by our Engineering Solutions
teams in collaboration with OEMs [Original Equipment Manufacturers] which packing
machines are used for the production of our smoke-free products to identify themagnitude of machine modification required to implement this packaging change
ensuring the highest level of quality, runability and machine efficiency.
The results of these costs investigations at machine level in the ideation stage isestimated at an average of USD100 thousand per machine and is then multiplied by the
number of respective machines in use [70] in our affiliates for the packing process of oursmoke-free products which would be part of the project (i.e.: at the moment estimated
70 machines * USD100 thousand in average per machine resulting in about USD7
million).
Through all these preparation and machinery upgrade actions, we shall then be in theposition to deploy the new innovative secondary packaging solution, bringing estimatedpackaging components reduction in weight of 55%, reduction of plastic packaging
weight of 56%, cost optimization of USD8.9 million, and CO2 emissions reduction byapprox. 320 tons of CO2e.
In 2022 the solution was validated for one machine technology, with pilot plans being
postponed to 2023. Additionally, further stability tests were conducted in 2022. The
project deployment is expected to be completed within 2 years and be fully operationalby end 2024.

Comment
PMI strives to minimize packaging materials and improve their circularity by increasing
their recyclability and promoting the use of materials made from renewable resources.
52

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Identifier
Opp5

Where in the value chain does the opportunity occur?
Direct operations

Opportunity type
Resource efficiency

Primary climate-related opportunity driver
Use of more efficient production and distribution processes

Primary potential financial impact
Reduced direct costs

Company-specific description
Driving energy efficiency is core to our strategy. Transition toward a low-carbon
business model is a priority within PMI strategy to achieve our carbon neutrality
objective and deliver financial productivities.
Our activities in this area center on our Drive for Zero (D4Ø) global program, which aims
to eliminate economic losses caused by inefficient energy use and is expected to deliver
2% improvement YoY. Under the program, we look for industrial and manufacturingsolutions such as heat recovery and manufacturing-process optimization. We also
promote behavioral change through our Zero Loss Mindset program.
To support our D4Ø program, an Energy Saving Initiatives (ESIs) program started in
2019, triggering more than 700 projects worldwide to date (executed and planned)
including amongst others LED lighting, HVAC upgrade, chilled water optimization andheat recovery projects.
In line with the implementation of our internal carbon pricing approach, the application of
an internal shadow carbon price improves the ROI of the project, making a stronger
business case for the investment, facilitating the approval when presented to senior
management.
The opportunity of embracing new technologies and discontinue obsolete ones present
several benefits, among which but not limited to:- improved financial productivity in the medium-long term, even more considering theincreasing energy requirements due to the ramp up of production of our smoke-free
products which are more energy intensive than conventional products;- enhanced opportunity in trading schemes.
New technologies are fast evolving and requires thorough and continuous monitoring toseize opportunities.
We recognize that more energy is required to produce heated tobacco units compared53

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

with conventional cigarettes, with a consequent increase in greenhouse gas emissions.
We are seeking to reduce this impact through these appropriate investments.

Time horizon
Medium-term

Likelihood
Very likely

Magnitude of impact
Medium-high

Are you able to provide a potential financial impact figure?
Yes, an estimated range

Potential financial impact figure (currency)
Potential financial impact figure – minimum (currency)
23,280,000

Potential financial impact figure – maximum (currency)
28,400,000

Explanation of financial impact figure
The PMI’s energy dashboard tool includes more than 700 energy saving projects withthe potential to be implemented in our factories. In order to evaluate relevant financial
saving as well as capital and operational expenditures, prior project implementation, we
take under consideration data input and assumptions such as costs of energy in the
countries where we operate and expected reduction in energy consumption, estimationof technical performance for equipment and/or intervention and cost of technologies
and/or intervention. The enhanced productivity in our manufacturing sites triggers
savings related to energy and other utilities’ annual consumption costs.
The financial impact of such opportunity considers 1) the financial savings of the
projects’ implementation calculated in the PMI’s energy dashboard tool, which has been
estimated at USD 23.28 million (lower range), and 2) the expected energy saving in GJ
by the average energy cost relevant to the various jurisdictions where PMI operates in
2022 (ΣGJ saved x average cost $/GJ), resulting in USD 28.4 million (upper range). In
2026 we expect to save approx. 1.19 TJ from these initiatives.
Both financial and energy savings from the more than 700 projects are taken form theindividual business cases and added to comprise the above reported figures.
The potential of trading surplus of carbon credits allocated to PMI in Cap & Tradeschemes (such as EU ETS for example) has not been quantified due to the upcomingchanges with phase IV of the EU-ETS and has not been accounted for in that case.
The financial impact is the result of the lower and upper ranges USD 23.28 million USD 28.4 million.
54

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Cost to realize opportunity
58,000,000

Strategy to realize opportunity and explanation of cost calculation
Under D4Ø program, and the Energy Saving Initiatives (ESIs) program, each PMI
factory have been reviewed and prioritized.
The ESIs program started in 2019 and includes 3 waves:- Wave 1 focuses on the top 15 factories with the highest energy footprint and ESIs withreturn on investments (ROI) below 3 years to leverage on quick win projects;- Wave 2 covers all factories and ESIs with ROI below 3 years and include every
projects subject to save energy within our manufacturing sites portfolio;- Wave 3 looks at energy savings and energy efficiency technologies with a longer ROI(generally between 3 and 8 years), e.g., process heat recovery, and disruptive
technology.
The ESIs wave 1 and 2 include more than 500 projects globally, e.g., LED lighting,
HVAC upgrade, chilled water optimization and heat recovery. The cost to realize thisopportunity is based on the deployment forecast of the 3 waves for the next 3 to 4 years
and delivers substantial energy saving equivalent to 37,000 t/CO2e reduction.
The USD58 million cost to realize the opportunity (out of which 30% had been alreadyallocated by end of 2022) is a set budget, which covers the full ESIs program for all the
PMI’s manufacturing sites, and behavioral change trainings to empower every worker tolook for losses and recommend and implement solutions. This is a set budget for thesum of all projects. The cost is revised periodically by the Operations management teamdue to the routinely assessment of several parameters such as specification changes,
prioritization, re-estimation based on technology evolution and fuel prices.
We applied the PMI’s shadow carbon price (USD105 per ton CO2e) to assess andprioritized 8 projects to drive the implementation of technologies with the higher impact
in CO2 emissions reduction.
The ESIs program is expected to be implemented by 2026. In 2022, the program
triggered around 90 projects worldwide, ranging from chilled water optimization, heatrecovery projects, and LED lighting to heating, ventilation, and air conditioning system
upgrades. E.g., PMI invested USD 0.37million in our site in Turkey for a project toexchange air handling units (AHU) belt driven fan motors with high efficiency motors,
expected to save approx. 790 GJ and 640 tCO2e per year. Overall, our efficiency
initiatives and behavioral changes helped drive around 14% reduction in carbon
emissions across our manufacturing facilities in 2022 versus 2021.

Comment
We recognize that more energy is required to produce heated tobacco units comparedwith cigarettes, with a consequent increase in greenhouse gas emissions. We are
seeking to reduce this impact through these appropriate investments.
Our initiatives don’t apply solely to our manufacturing sites, in our tobacco supply chain
we focus on three areas: reducing fuel consumption by improving curing-barn efficiency,
promoting the switch from fossil fuels to biomass fuels, and ensuring sustainable andtraceable firewood (leading to an absolute reduction in 2022 of 281,224 tons of CO2e55

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

versus our 2019 baseline); in this opportunity here we only accounted the impact in our
direct operations.

C3. Business Strategy
C3.1(C3.1) Does your organization’s strategy include a climate transition plan that aligns
with a 1.5°C world?
Row 1
Climate transition planYes, we have a climate transition plan which aligns with a 1.5°C world

Publicly available climate transition plan
Yes

Mechanism by which feedback is collected from shareholders on your climatetransition plan
We have a different feedback mechanism in place

Description of feedback mechanism
PMI makes our CDP Climate responses publicly available alongside our Low Carbon
Transition Plan (2021), inaugural PMI TCFD Report 2022, and climate-related content in
our annual integrated report and associated case studies and market stories online.
Beyond public disclosure, we explicitly tie portions of executive compensation to
performance against our Sustainability Index, including progress against climate-related
targets as described in our annual Proxy Statement to shareholders ahead of our
Annual General Meeting (AGM). In 2023, we accelerated the release of our annual
integrated report to enable shareholders to understand the progress we have made andask informed questions and provide informed feedback on ESG topics, including
climate-related topics, ahead of the AGM. Beyond investor calls, we organize an ESG
investor day at least annually to allow shareholders to provide feedback on our strategy
and performance.
Composed of members of Company Management, including our Chief Executive
Officer, and chaired by our Chief Financial Officer (CFO), PMI’s Sustainability
Committee meets at least four times per year. In 2022, quarterly Sustainability
Committee meetings focused on assessing PMI’s performance on the Sustainability
Index, receiving updates on various sustainability initiatives as well as external
developments, reviewing the company’s disclosures, and discussing efforts to further
embed sustainability within PMI, effectively manage ESG risks, and enhance ESG datareliability. The Sustainability Committee is regularly briefed on sustainability ratings,
which are among a range of factors considered by the investment community in theiranalysis of companies from an ESG perspective.

Frequency of feedback collection
56

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

More frequently than annually

Attach any relevant documents which detail your climate transition plan
(optional)
pmi_lctp_211026.pdf

C3.2(C3.2) Does your organization use climate-related scenario analysis to inform its
strategy?
Use of climate-related scenario analysis to inform strategy
Row 1

Yes, qualitative and quantitative

C3.2a(C3.2a) Provide details of your organization’s use of climate-related scenario analysis.
Climaterelated
scenario

Scenario
analysiscoverage

Physicalclimatescenarios
RCP 8.5

Companywide

Temperaturealignment of
scenarioParameters, assumptions, analytical choices

PMI’s TCFD report was shaped by the 2022 Climate
Change Risk and Opportunity Assessment(CCROA) that projected potential acute and chronic
physical risks under climate scenarios based on the
Representative Concentration Pathways RCP 2.6,
RCP 4.5 and RCP 8.5. Climate data are assessed toanalyze the impact on around 600 PMI assets (suchas factories, warehouses and tobacco growing
areas) and areas of interest at specific global
warming levels with scenarios in line with thesuccessful achievement of the Paris Agreement’s
goal (1.5°C and 2.0°C warming compared topreindustrial level), and another scenario shaped on
its failure (3°C warming). The RCP 8.5 - which
combines assumptions about high population andrelatively slow income growth with modest rates oftechnological change and energy intensity
improvements, leading in the long term to highenergy demand and GHG emissions in absence ofclimate change policies - has been used to modelclimate hazards under the worst global warming
scenario (3°C). The spatially explicit database used
is based on the analysis of multiple outputs fromseven Regional Circulation Models (site-specificclimate variables) and 23 General Circulation
57

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Models (regional climate variables) participating in
the Climate Model Intercomparison Project (CMIP5).
By comparing against baseline conditions (1980–2010), we estimated the change in frequency andintensity (moderate, severe, extreme) of climaterelated physical hazards (flood, drought andheatwave) for each location and their projected
trends over time until 2040, to calculate a final
hazard risk index for each asset and quantify
exposed hotspots’ value and potential losses anddamages.
Transition
scenarios
Customized
publicly
availabletransition
scenario

Companywide

1.5ºC

Transition risks have been assessed under two
NGFS mitigation pathways until 2040 consistent withthe 1.5°C Paris Agreement target and beyond(+3°C). The Net Zero 2050 scenario, aligned to
SSP2-1.9 (1.5°C), is an ambitious scenario that
limits global warming to 1.5°C through stringent
climate policies and technology innovation
introduced immediately, reaching net zero CO₂emissions around 2050. The Current Policies
scenario, aligned to SSP2-4.5 (3°C), assumes that
only currently implemented policies are preserved
but they are not sufficient to achieve official climate
commitments, emissions grow until 2080 leading toabout 3°C of warming by 2100.
These scenarios are built on the Integrated
Assessment Models (IAMs) which form the basis of
the Intergovernmental Panel on Climate Change(IPCC) reports and are considered best practiceglobally. The results of the climate scenarios forprioritized risks and opportunities (according to theirvelocity, likelihood and materiality) have been
compared with a business-as-usual scenario(representing a future in which no extra international
efforts are made to adapt to or mitigate climaterelated risks) to estimate the value at stake.

C3.2b(C3.2b) Provide details of the focal questions your organization seeks to address byusing climate-related scenario analysis, and summarize the results with respect tothese questions.
Row 1
Focal questions
58

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

A forward-looking approach is widely used for assessing potential climate-related risks
and opportunities (R&O) under different future scenarios. However, since R&O arecontext-specific issues and differ across temporal and spatial scales, it brings
uncertainty in the risk assessment process especially for large corporations like PMIwith complex and global value chain. The use of climate scenarios allowed us toaccount for the uncertainties arising from potential decarbonization pathways and global
warming trends, socioeconomic growth and new policies, market trends and society
behaviors, among others. TCFD recommends that the range of scenarios should reflect
the underlying drivers and assumption relevant for the risks a company will face in site
and time-specific contexts. The use of climate-related scenarios helped us to map our
exposure to physical and transition risks to 2030 and 2040 by answering focal
questions, under diverse climate scenarios aligned with i) the Paris Agreement goal
(1.5°C and 2°C global warming) with more stringent decarbonization measures in place(RCP 2.6 and RCP 4.5 for physical risks; NGFS Net Zero pathway for transition risks ; ii)
the Paris agreement failure (3°C) under the worst-case high-emission scenario,(RCP
8.5 for physical risks; NGFS Current Policies scenario for transition risks). Keeping the
1.5° target alive will demand stringent climate policies and innovation to cut emissions,leading to high transition risks due to, for example, increased carbon and energy prices.
On the contrary, the largest physical risks are observed under the worst global warming
scenario (3°C) that shows a rapid increase of severe and extreme drought, flood andheatwave instances in different regions.
- Which are the most vulnerable components of PMI Operation to climate change?
Which will be the company’s exposure to physical and transition risks under different
scenarios vs. the business as usual?
In particular, we tried to understand:- Which are the potential physical impacts of weather-related extremes on the company
capacity to operate? Which are PMI facilities and logistics at risk? Which are theexpected losses and damages?
- Are the PMI tobacco supply regions at risk due to climate change impacts? Which are
the expected losses in tobacco crop yields across the diverse supply regions? Whichare the vulnerable hotspots calling for adaptation measures?
- Which are the transition R&O in PMI Operations? Which are the priority risks with thehighest certainty and materiality, calling for a proactive response?
- Which are the financial impacts (positive and negative) of prioritized transition risks?
- Is PMI already managing these risks by reducing the vulnerability of the systems at
stake?

Results of the climate-related scenario analysis with respect to the focal
questions
PMI’s 2022 TCFD Report discloses all key-findings of the 2022 Climate Change Risk
and Opportunity Assessment (CCROA) in Operations, amongst others:- MANUFACTURING: Climate change may present chronic and acute physical risks
with direct impacts on our factories. Cumulative potential losses due to persistent
drought ranges from USD12 million to USD252 million - depending on time horizon andclimate scenario absent additional mitigation actions - in six factories across Africa,
59

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Europe, Latin America, and the Middle East- due to business interruption costs. Climatechange may present high transition risks with direct impacts on our factories. Increased
prices of energy sources in manufacturing sites could result in increased energy
procurement costs for PMI. Growing carbon prices and carbon taxation could result inhigher costs for manufacturing emissions. Both are classified as high risk in the 1.5°C
scenario, with expected cumulative impacts above USD1,200 Mio by 2040.
- LEAF: Climate change may present chronic and acute physical risks with indirect
impacts in our tobacco sourcing activities. Cumulative potential losses due to extreme
flood events ranges from USD68 million to USD162 million depending on time horizonand climate scenario absent additional mitigation actions in 16 sourcing areas across
Africa, Europe, and Latin America. Climate change may present transition risks withindirect supply chain impacts in our tobacco sourcing activities. Increased prices forfuels used in curing barns could result in increased costs for PMI's suppliers andconsequently higher procurement costs for PMI in sourcing areas across Africa, Asia
Pacific, and Latin America. Increased price of natural gas used in fertilizer products
could result in increased production cost for PMI's suppliers and consequently higher
procurement costs for PMI. Both are classified as medium risks in the 1.5°C scenario
with cumulative impacts in the range USD100-1,200 Mio
Many of the substantive risks identified, particularly in Leaf, are being managed throughour Good Agricultural Practices program, since 2002 and expected to continue the next
5-10y, where initiatives to increase farmer resiliency are put in place e.g., we invested
to support farmers in drought-prone areas of Brazil, Philippines, and Indonesia withmore efficient technologies (e.g., drip irrigation), minimizing tillage operations toconserve soil moisture and increase soil infiltration. We continue to certify all our priority
factories to the Alliance for Water Stewardship (AWS) to mitigate the water scarcity risk
in our water catchment areas. Current and planned investments in insetting projects will
ensure long-term reliable supply of carbon credits, minimizing our exposure to carbon
price volatility in the open market. PMI’s Sourcing Risk Management framework
facilitates the identification of mid- and long-term business disruption risks–including
climate-related ones–and supports the supplier selection process

C3.3(C3.3) Describe where and how climate-related risks and opportunities haveinfluenced your strategy.
Have climate-related Description of influencerisks andopportunities
influenced yourstrategy in this area?
Products and Yes
services

For PMI, sustainability means creating long term value while
minimizing the negative externalities associated with our
products, e.g., through Lifecycle Assessments (LCAs), newproduct and packaging design. Following a more in-depth
Climate Change Risk and Opportunity Assessment

60Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

(CCROA) aligned with the TCFD recommendations, weevaluated climate risks and opportunities in relation to our
Products & Services, such as shifts in supply & demand anddownstream market risks associated with shifting consumer
demands for lower-carbon products.
In 2022 PMI carried out 7 surveys with over 5,000 users in
10 key Smoke Free Product (SFP) markets. Results
provided valuable insights on our consumers’ view andevaluation, with positivity towards the brand increasing by
20% when consumers were exposed to relevant
communications of our company’s efforts in the sustainability
space. This feedback enabled PMI to design mechanics,
assets and campaigns for programs and, thus, integratethem in the design of our SFP roadmap and branding
campaign, e.g. continued focus on scaling our end-of-lifetake-back programs for smoke-free consumables, with 8.5%
shipment volumes covered in 2022 and a commitment toreach 80% by 2025.
Climate-change influences setting of sustainability targets forour products and services at short and medium term. To
control environmental and social impacts across the life
cycle of our SFP, we set our 2025 eco-design and circularity
ambitions, which extend to electronic devices, accessories,
consumables, and packaging, incl.:- Provide access to collection and recovery for device and its
consumables to all IQOS users- Continue to reduce the carbon footprint of our SFP in linewith our science-based targets- Achieve eco-certification for all our PMI smoke-freeelectronic devices introduced on the market as of end of2025
Potential benefits incl. energy savings, reduced use ofnatural resources, waste reduction, and a longer productlifespan.
In 2022, as part of our plastic reduction program, we reduced
and optimized our current film solutions on our heated
tobacco packaging portfolio, removing 385 tons of plastic
film, representing an estimated 1.4 kt CO2eq reduction.
Supply chain Yes
and/or valuechain

Physical climate change risks could affect, with a medium
impact, our own operations and those of our suppliers
globally. Changes in precipitation patterns and extreme
variability in weather patterns could affect the yield, quality
and availability of key crops, such as tobacco leaves andcloves, changing our buying patterns and increasing
operational costs. Increased drought/flooding could disturb

61

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

the tobacco leaf life cycle stages in several countries from
where we sourced from in 2022, driving strategy
interventions in impacted areas. Flooding may require
pumping of excess water; similarly, extreme droughts may
require long-term irrigation, increasing energy consumption
and production costs. The financial implications of theserisks vary depending on the impacted asset. E.g., in our
tobacco growing areas in Brazil and Philippines they could
cause interruptions in our supply chain with a financial
impact ranging from USD2.8 million to USD26.7 million. To
prevent these impacts from materializing, PMI has adapted
its management strategy at the short-medium term.
We consider those risks in the strategic decision and annual
planning of our tobacco leaf inventories which can help
mitigate short to medium term impacts. To support
addressing these risks PMI embedded environmental
sustainability considerations in Good Agricultural Practices(GAP) and Responsible Sourcing Principles (RSP) since
2002 and 2017 and required suppliers to comply with them.
PMI actively engages with its suppliers, and we plan toembed the elements of our carbon neutrality strategy in the
programs with our suppliers as we move to theachievements of PMI’s targets for 2030.
In the strategic decision and annual planning of our tobacco
leaf inventories we include consideration on the impact thatGAP initiatives had since its implementation to mitigate thoserisks and its increasing influence over time in the short tomedium term. E.g., PMI has invested around USD 450, 000
in 2022 to support farmers in Brazil, the Philippines and inIndonesia with more efficient technologies (e.g., drip
irrigation) contributing to climate change mitigation efforts.
In the long-term our business strategy focuses on physicaladaptation and long-term emissions reduction in accordancewith our approved Science-Based Targets, based on 1.5°C
pathway, to reduce our value chain absolute carbon
footprint.
Investment in Yes
R&D

Increasing climate change risks consumers’ awareness cangenerate fluctuations in supply & demand and create
downstream market risks and opportunities associated withshifting consumer demands for lower-carbon products.
In 2022 PMI carried out 7 surveys with over 5,000 users in
10 key SFP markets. Results provided valuable insights on
our consumers’ view and evaluation, with positivity towards
the brand increasing by 20% when consumers were exposed
to relevant communications of our company’s efforts in the62Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

sustainability space. This feedback enabled PMI to design
mechanics, assets and campaigns for programs and, thus,
integrate them in the design of our SFP roadmap andbranding campaign, e.g. continued focus on scaling our endof-life take-back programs for smoke-free consumables, with
8.5% shipment volumes covered in 2022 and a commitment
to reach 80% by 2025.
Product eco-design and circularity is now integral part of our
R&D work and embedded in our long-term strategy tosupport our smoke-free future vision. With respect to oursmoke-free products, in 2020 we set our 2025 eco-designand circularity ambitions, which extend to electronic devices,
accessories, consumables, and packaging.
In the area of product innovation, we aim to have all our new
electronic devices commercialized as of end 2025 certified tovalidated standards for eco-design. We are also working
toward the inclusion of recycled content in all devices by2025.
In our operations, eco-design principles inform how we use
life-cycle analysis (LCA) to assess the comparative carbon
footprint of our products, from tobacco sourcing to end-of-life
impacts. We have analyzed IQOS devices, heated tobacco
units, and packaging.
We are working to close the gap between combustible andsmoke-free products, in terms of carbon emissions intensity,
through intensive R&D in improved manufacturing
processes, extending the usable life of our electronic
devices, and decreasing the total CO2 footprint throughinnovative material selection guided by the application of
LCAs and eco-design practices. Over the past four years, wehave reduced the overall CO2 impact of our smoke-free
products through improvements in manufacturing processes
and in our tobacco supply chain.
Operations

Yes

Beyond its human repercussions, climate change threatens
business continuity, especially where businesses involve
agricultural supply chains. For PMI, raw material costs suchas tobacco leaf and cloves may rise, with consumers and our
employees becoming increasingly sensitized toenvironmental impact of corporate actions. Upfront
investments with longer-term returns are required asconsequences of climate risk could expose investors tochanges in corporate stock value.
PMI’s efforts to reduce GHG, e.g., through increased energy
efficiency, could alleviate potential costs and create

63Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

competitive advantage by meeting/exceeding consumers,
employees, and other stakeholders expectations.
In 2021, our assessment results on current updated societal
expectations, made us confirm our ambitious targets to guideon decarbonization:- Achievement of carbon neutrality of PMI’s direct operations(Scopes 1and 2) anticipated to 2025 (from 2030);- Achievement of net zero in PMI’s value chain (Scopes 1, 2
and 3) by 2040
- reduction in absolute CO2 emissions consistent with SBTi
for a 1.5-degree submitted and validated in 2020.
Our climate change strategy has a key role in the medium
and long term to enable efficiencies in our operations, tokeep us ahead of our competitors, increase our resilienceand fulfil our reduction targets for a better strategic position
when customers/investors assess our performance. Our
business strategy focuses on physical adaptation and longterm emissions reduction including:- long-term sourcing strategies integrating CCROA
considerations- customer and supplier sustainability strategies aligned withours to ensure support to our objectives.
Our strategy and decisions are influenced by understanding
and adapting to potential future climate change issues andby minimizing our environmental impact. We integrate
climate related physical and transition risks and opportunities
related to regulation, reputation and market by implementing
carbon emission reduction projects with longer payback
period in our facilities, sourcing voluntary green electricity todecrease our dependence from fossil fuels and reduce ourcarbon footprint, among others. One example is the decision
to implement energy saving and CO2 reduction projects in
our facilities delivering close to 14% reduction on Scope 1
and 2 emissions of our manufacturing sites between 2021
and 2022.

C3.4(C3.4) Describe where and how climate-related risks and opportunities haveinfluenced your financial planning.
Financial planning Description of influence
elements that havebeen influenced
Row Direct costs
1
Indirect costs

Climate-related regulations are expanding and becoming more stringent.
Compliance with such regulations is core to the way PMI operates. While64

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Capitalexpenditures
Capital allocation
Assetsnew legislation may trigger additional costs when implementing new
programs and initiatives, it can also provide us with the opportunity to
reduce energy consumption, carbon emissions, and operational costs.
We have adapted our financial planning to address climate risks andseize opportunities related to direct and indirect costs, capital
expenditure and allocation, and assets over the short-, medium-, andlong-term time horizons, aligned with the strategies set out in PMI’s Low
Carbon Transition Plan.
Some examples of how financial planning has been influenced byclimate-related risks and opportunities include:• Renewable energy generation subsidies are factored into our costbenefit analyses to improve return on investment• The expansion of schemes such as the EU Emission Trading Scheme(EU ETS) to include EU accession countries where PMI has facilities has
influenced our investments with energy saving initiatives, our Drive4Zero
Program, and our portfolio of zero-carbon technologies• Energy taxes have incentivized us to implement an Energy
Management Program according to ISO 50001, contributing to savings
from energy tax reductions
PMI’s supply chain and its purchases of tobacco leaf are influenced by
the cost of production for farmers. If the overall cost of producing raw
tobacco at directly contracted farms and third-party leaf suppliers
increases, it would lead to an indirect increase in procurement costs as
the price of tobacco would respond to upward pressure on the cost of
production.
Since 2002, we have been implementing the Good Agricultural Practices(GAP) program. GAP is a program with mandatory requirements for our
tobacco suppliers and their contracted farmers, which provides specificguidance on initiatives to mitigate tobacco growing risks and impacts
related to climate change such as transition market risks related to fuelprice increases. A set annual budget is allocated to initiatives to promote
the adoption of improved and innovative practices by the farmers in our
supply chain lowering fuel consumption, dependency on fuel and overall
production costs.
Based on our financial planning PMI allocates an annual budget toinvestments in climate risk mitigation practices under the GAP programworldwide, which is expected to continue over the next decade. We haveincreased the annual budget to support farmers in our supply chain to
improve their resiliency and seize opportunities in the low carbon
economy over the past several years. Strategic initiatives include
improving efficiency and reducing mechanized activities at field stage,
improving tobacco curing efficiency, and switching to low-carbon
energies, thus making tobacco suppliers, their farmers, and PMI more
resilient to price increments on diesel and diesel products, for instance.
We also use carbon pricing mechanisms and revise our internal carbon
prices annually. Carbon pricing helps us to identify where to act by65

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

comparing and ranking relevant GHG reduction projects globally basedon their cost-effectiveness in reducing emissions and drive theexpenditures needed for prioritizing our list of initiatives.
We have an extensive risk control program whereby locations withvalues exceeding USD 30 million are surveyed by engineers from ourproperty insurer including physical risks. We have several locations that
do have natural catastrophe exposures including flood risk. This isaddressed through risk improvement recommendations for physicalmitigation solutions or the implementation and reinforcement ofmanagement controls such as protecting openings, raising equipment,
and implementing Flood Emergency Response Plans. Information on our
exposure and responses is reviewed regularly. It enables risk andopportunity identification and management at the company and asset
level.
Based on the results of our most recent CCROA, revenues and accessto capital are currently not impacted by climate change, and acquisitions
and divestments are not expected to materially impact PMI.

C3.5
(C3.5) In your organization’s financial accounting, do you identify spending/revenue
that is aligned with your organization’s climate transition?
Identification of spending/revenue that is aligned with your organization’s climatetransitionRow
1

Yes, we identify alignment with our climate transition plan

C3.5a
(C3.5a) Quantify the percentage share of your spending/revenue that is aligned withyour organization’s climate transition.

Financial Metric
CAPEX

Type of alignment being reported for this financial metric
Alignment with our climate transition plan

Taxonomy under which information is being reported
Objective under which alignment is being reported

66

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Amount of selected financial metric that is aligned in the reporting year (unitcurrency as selected in C0.4)
14,000,000

Percentage share of selected financial metric aligned in the reporting year (%)
1.2

Percentage share of selected financial metric planned to align in 2025 (%)
3.8

Percentage share of selected financial metric planned to align in 2030 (%)
4.5

Describe the methodology used to identify spending/revenue that is aligned
PMI’s climate strategy aims to address pertinent climate change risks and build
resilience while seizing opportunities presented by a low-carbon future. To deliver on
our climate ambition, PMI relies on robust carbon footprint accounting, analysis ofclimate change–related risks and opportunities, ambitious targets, clear management
and governance structures, and key enablers such as the establishment of ourSustainability Index – linking sustainability performance, including achievement ofclimate related ambitions, to executive compensation –, as well as internal carbon
pricing.
Led by climate change awareness, PMI is targeting to reduce emissions and deliver
carbon-neutral operations by 2025 and net-zero emissions across the entire value chain
by 2040. To meet these goals, a broad range of climate and energy targets have beenset, including emission reduction aligned with the goals of the Paris Agreement,
transition to renewable energy, forest protection through sustainable management,
product eco-design, manufacturing process improvements, and the reduction of waste.
Our new goals can be reached through intermediate targets such as the one PMI has
set for its direct operations to be certified as carbon neutral by 2025.
To achieve our ambition of carbon neutrality in our direct operations (scope 1+2) by
2025, we combine good management practices with strategic energy-related
investments. We invest in optimizing energy and process efficiencies and replacing
fossil fuel-based energy with renewable sources. We compensate for our unavoidable
emissions as a last resort—once we have maximized our emissions reduction.
Specifically, investments (CAPEX) associated with energy efficiency, increasing inhouse energy generation through renewable technologies and carbon emission
reductions in our manufacturing facilities – namely our Drive4Zero, Energy Savings
Initiatives and Zero Carbon Technology programs are accounted for in the figure
reported above. These programs are currently planned at least until 2026, and we
expect additional similar investments to take place by 2030 to further contribute to PMI’s
mid and long-term carbon emission reduction commitments.
As difficult to foresee, forward looking estimates were calculated assuming overall PMICAPEX to remain similar in 2025 and 2030.

67

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C4. Targets and performance
C4.1(C4.1) Did you have an emissions target that was active in the reporting year?
Absolute target

C4.1a(C4.1a) Provide details of your absolute emissions target(s) and progress madeagainst those targets.

Target reference number
Abs 1

Is this a science-based target?
Yes, and this target has been approved by the Science Based Targets initiative

Target ambition
1.5°C aligned

Year target was set
2020

Target coverage
Company-wide

Scope(s)Scope 1
Scope 2

Scope 2 accounting method
Market-based

Scope 3 category(ies)Base year
2019

Base year Scope 1 emissions covered by target (metric tons CO2e)397,210Base year Scope 2 emissions covered by target (metric tons CO2e)
158,67268

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target (metric tons CO2e)
Base year Scope 3, Category 2: Capital goods emissions covered by target(metric tons CO2e)
Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target (metric tons CO2e)
Base year Scope 3, Category 4: Upstream transportation and distribution
emissions covered by target (metric tons CO2e)
Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target (metric tons CO2e)
Base year Scope 3, Category 6: Business travel emissions covered by target(metric tons CO2e)
Base year Scope 3, Category 7: Employee commuting emissions covered bytarget (metric tons CO2e)
Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget (metric tons CO2e)
Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target (metric tons CO2e)
Base year Scope 3, Category 10: Processing of sold products emissions
covered by target (metric tons CO2e)
Base year Scope 3, Category 11: Use of sold products emissions covered bytarget (metric tons CO2e)
Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target (metric tons CO2e)69

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target (metric tons CO2e)
Base year Scope 3, Category 14: Franchises emissions covered by target(metric tons CO2e)
Base year Scope 3, Category 15: Investments emissions covered by target(metric tons CO2e)
Base year Scope 3, Other (upstream) emissions covered by target (metric tons
CO2e)Base year Scope 3, Other (downstream) emissions covered by target (metrictons CO2e)
Base year total Scope 3 emissions covered by target (metric tons CO2e)
Total base year emissions covered by target in all selected Scopes (metrictons CO2e)555,882

Base year Scope 1 emissions covered by target as % of total base year
emissions in Scope 1
100

Base year Scope 2 emissions covered by target as % of total base year
emissions in Scope 2
100

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target as % of total base year emissions in Scope 3, Category 1:
Purchased goods and services (metric tons CO2e)
Base year Scope 3, Category 2: Capital goods emissions covered by target as% of total base year emissions in Scope 3, Category 2: Capital goods (metrictons CO2e)
Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target as % of total base year70

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

emissions in Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) (metric tons CO2e)
Base year Scope 3, Category 4: Upstream transportation and distribution
covered by target as % of total base year emissions in Scope 3, Category 4:
Upstream transportation and distribution (metric tons CO2e)
Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target as % of total base year emissions in Scope 3, Category 5:
Waste generated in operations (metric tons CO2e)
Base year Scope 3, Category 6: Business travel emissions covered by target
as % of total base year emissions in Scope 3, Category 6: Business travel(metric tons CO2e)
Base year Scope 3, Category 7: Employee commuting covered by target as %of total base year emissions in Scope 3, Category 7: Employee commuting(metric tons CO2e)
Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget as % of total base year emissions in Scope 3, Category 8: Upstream
leased assets (metric tons CO2e)
Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target as % of total base year emissions in Scope 3,
Category 9: Downstream transportation and distribution (metric tons CO2e)
Base year Scope 3, Category 10: Processing of sold products emissions
covered by target as % of total base year emissions in Scope 3, Category 10:
Processing of sold products (metric tons CO2e)
Base year Scope 3, Category 11: Use of sold products emissions covered bytarget as % of total base year emissions in Scope 3, Category 11: Use of soldproducts (metric tons CO2e)
Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target as % of total base year emissions in Scope 3,
Category 12: End-of-life treatment of sold products (metric tons CO2e)71

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target as % of total base year emissions in Scope 3, Category 13:
Downstream leased assets (metric tons CO2e)
Base year Scope 3, Category 14: Franchises emissions covered by target as %of total base year emissions in Scope 3, Category 14: Franchises (metric tons
CO2e)Base year Scope 3, Category 15: Investments emissions covered by target as% of total base year emissions in Scope 3, Category 15: Investments (metrictons CO2e)
Base year Scope 3, Other (upstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (upstream) (metric tons CO2e)
Base year Scope 3, Other (downstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (downstream) (metric tons CO2e)
Base year total Scope 3 emissions covered by target as % of total base year
emissions in Scope 3 (in all Scope 3 categories)
Base year emissions covered by target in all selected Scopes as % of total
base year emissions in all selected Scopes
100

Target year
2030

Targeted reduction from base year (%)
50

Total emissions in target year covered by target in all selected Scopes (metrictons CO2e) [auto-calculated]
277,941

Scope 1 emissions in reporting year covered by target (metric tons CO2e)297,602

Scope 2 emissions in reporting year covered by target (metric tons CO2e)42,48272

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 3, Category 1: Purchased goods and services emissions in reporting
year covered by target (metric tons CO2e)
Scope 3, Category 2: Capital goods emissions in reporting year covered bytarget (metric tons CO2e)
Scope 3, Category 3: Fuel-and-energy-related activities (not included in
Scopes 1 or 2) emissions in reporting year covered by target (metric tons
CO2e)
Scope 3, Category 4: Upstream transportation and distribution emissions inreporting year covered by target (metric tons CO2e)
Scope 3, Category 5: Waste generated in operations emissions in reporting
year covered by target (metric tons CO2e)
Scope 3, Category 6: Business travel emissions in reporting year covered bytarget (metric tons CO2e)
Scope 3, Category 7: Employee commuting emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 8: Upstream leased assets emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 9: Downstream transportation and distribution emissions
in reporting year covered by target (metric tons CO2e)
Scope 3, Category 10: Processing of sold products emissions in reporting
year covered by target (metric tons CO2e)
Scope 3, Category 11: Use of sold products emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 12: End-of-life treatment of sold products emissions inreporting year covered by target (metric tons CO2e)73

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 3, Category 13: Downstream leased assets emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 14: Franchises emissions in reporting year covered bytarget (metric tons CO2e)
Scope 3, Category 15: Investments emissions in reporting year covered bytarget (metric tons CO2e)
Scope 3, Other (upstream) emissions in reporting year covered by target(metric tons CO2e)
Scope 3, Other (downstream) emissions in reporting year covered by target(metric tons CO2e)
Total Scope 3 emissions in reporting year covered by target (metric tons
CO2e)Total emissions in reporting year covered by target in all selected scopes(metric tons CO2e)
340,084

Does this target cover any land-related emissions?
Yes, it covers land-related and non-land related emissions (e.g. SBT approved before
the release of FLAG target-setting guidance)% of target achieved relative to base year [auto-calculated]
77.6416577619

Target status in reporting year
Underway

Please explain target coverage and identify any exclusions
As per SBTi Submission guidance, the target boundary also includes biogenic
emissions and removals (reported separately from the scopes), and which accounted in
the base year for:
Direct CO2 emissions from combustion of biofuels and/or biomass feedstocks for the fullvalue chain: 2,431,162 tCO2
Estimated CO2 removals related to the use of biofuels and/or biomass feedstocks forthe full value chain: -2,321,922 tCO2

Plan for achieving target, and progress made to the end of the reporting year74Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

To achieve our target, we combine good management practices with strategic energyrelated investments in our direct operations. We invest in optimizing energy and process
efficiencies and replacing fossil fuel-based energy with renewable sources. To reducecarbon emissions in our fleet, we invest in sustainable powertrains and effective driving
to optimize energy consumption and improve operational efficiency.
In 2022, we achieved a 39% reduction versus our 2019 baseline. This achievement has
been possible thanks to programs to increase energy efficiency in our factories, on-site
renewable investments, sourcing power from renewable resources as well as a program
to reduce emissions in our vehicles fleet.

List the emissions reduction initiatives which contributed most to achieving
this target

Target reference number
Abs 2

Is this a science-based target?
Yes, and this target has been approved by the Science Based Targets initiative

Target ambition
1.5°C aligned

Year target was set
2020

Target coverage
Company-wide

Scope(s)Scope 3

Scope 2 accounting method
Scope 3 category(ies)Category 1: Purchased goods and services
Category 2: Capital goods
Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
Category 4: Upstream transportation and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 9: Downstream transportation and distribution
Category 11: Use of sold products
75Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Category 12: End-of-life treatment of sold products

Base year
2019

Base year Scope 1 emissions covered by target (metric tons CO2e)
Base year Scope 2 emissions covered by target (metric tons CO2e)
Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target (metric tons CO2e)3,451,556

Base year Scope 3, Category 2: Capital goods emissions covered by target(metric tons CO2e)147,902

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target (metric tons CO2e)114,703

Base year Scope 3, Category 4: Upstream transportation and distribution
emissions covered by target (metric tons CO2e)496,745

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target (metric tons CO2e)
3,726

Base year Scope 3, Category 6: Business travel emissions covered by target(metric tons CO2e)
111,283

Base year Scope 3, Category 7: Employee commuting emissions covered bytarget (metric tons CO2e)41,470Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget (metric tons CO2e)
Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target (metric tons CO2e)
58,648Base year Scope 3, Category 10: Processing of sold products emissions
covered by target (metric tons CO2e)76

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year Scope 3, Category 11: Use of sold products emissions covered bytarget (metric tons CO2e)
107,319

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target (metric tons CO2e)
87,568Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target (metric tons CO2e)
Base year Scope 3, Category 14: Franchises emissions covered by target(metric tons CO2e)
Base year Scope 3, Category 15: Investments emissions covered by target(metric tons CO2e)
Base year Scope 3, Other (upstream) emissions covered by target (metric tons
CO2e)Base year Scope 3, Other (downstream) emissions covered by target (metrictons CO2e)
Base year total Scope 3 emissions covered by target (metric tons CO2e)
4,620,920

Total base year emissions covered by target in all selected Scopes (metrictons CO2e)
4,620,920

Base year Scope 1 emissions covered by target as % of total base year
emissions in Scope 1
Base year Scope 2 emissions covered by target as % of total base year
emissions in Scope 2
Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target as % of total base year emissions in Scope 3, Category 1:
Purchased goods and services (metric tons CO2e)10077Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year Scope 3, Category 2: Capital goods emissions covered by target as% of total base year emissions in Scope 3, Category 2: Capital goods (metrictons CO2e)100

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target as % of total base year
emissions in Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) (metric tons CO2e)100

Base year Scope 3, Category 4: Upstream transportation and distribution
covered by target as % of total base year emissions in Scope 3, Category 4:
Upstream transportation and distribution (metric tons CO2e)100

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target as % of total base year emissions in Scope 3, Category 5:
Waste generated in operations (metric tons CO2e)100

Base year Scope 3, Category 6: Business travel emissions covered by target
as % of total base year emissions in Scope 3, Category 6: Business travel(metric tons CO2e)100

Base year Scope 3, Category 7: Employee commuting covered by target as %of total base year emissions in Scope 3, Category 7: Employee commuting(metric tons CO2e)100

Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget as % of total base year emissions in Scope 3, Category 8: Upstream
leased assets (metric tons CO2e)
Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target as % of total base year emissions in Scope 3,
Category 9: Downstream transportation and distribution (metric tons CO2e)100

Base year Scope 3, Category 10: Processing of sold products emissions
covered by target as % of total base year emissions in Scope 3, Category 10:
Processing of sold products (metric tons CO2e)78

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year Scope 3, Category 11: Use of sold products emissions covered bytarget as % of total base year emissions in Scope 3, Category 11: Use of soldproducts (metric tons CO2e)100

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target as % of total base year emissions in Scope 3,
Category 12: End-of-life treatment of sold products (metric tons CO2e)100

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target as % of total base year emissions in Scope 3, Category 13:
Downstream leased assets (metric tons CO2e)
Base year Scope 3, Category 14: Franchises emissions covered by target as %of total base year emissions in Scope 3, Category 14: Franchises (metric tons
CO2e)Base year Scope 3, Category 15: Investments emissions covered by target as% of total base year emissions in Scope 3, Category 15: Investments (metrictons CO2e)
Base year Scope 3, Other (upstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (upstream) (metric tons CO2e)
Base year Scope 3, Other (downstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (downstream) (metric tons CO2e)
Base year total Scope 3 emissions covered by target as % of total base year
emissions in Scope 3 (in all Scope 3 categories)
100

Base year emissions covered by target in all selected Scopes as % of total
base year emissions in all selected Scopes
100

Target year
2030

Targeted reduction from base year (%)
50

79

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Total emissions in target year covered by target in all selected Scopes (metrictons CO2e) [auto-calculated]
2,310,460

Scope 1 emissions in reporting year covered by target (metric tons CO2e)
Scope 2 emissions in reporting year covered by target (metric tons CO2e)
Scope 3, Category 1: Purchased goods and services emissions in reporting
year covered by target (metric tons CO2e)
3,003,490

Scope 3, Category 2: Capital goods emissions in reporting year covered bytarget (metric tons CO2e)
93,699.9

Scope 3, Category 3: Fuel-and-energy-related activities (not included in
Scopes 1 or 2) emissions in reporting year covered by target (metric tons
CO2e)86,259.6

Scope 3, Category 4: Upstream transportation and distribution emissions inreporting year covered by target (metric tons CO2e)756,551.6

Scope 3, Category 5: Waste generated in operations emissions in reporting
year covered by target (metric tons CO2e)
3,726.4

Scope 3, Category 6: Business travel emissions in reporting year covered bytarget (metric tons CO2e)42,509.2

Scope 3, Category 7: Employee commuting emissions in reporting year
covered by target (metric tons CO2e)36,108.6

Scope 3, Category 8: Upstream leased assets emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 9: Downstream transportation and distribution emissions
in reporting year covered by target (metric tons CO2e)46,381.5

Scope 3, Category 10: Processing of sold products emissions in reporting
year covered by target (metric tons CO2e)80

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 3, Category 11: Use of sold products emissions in reporting year
covered by target (metric tons CO2e)
106,498.8

Scope 3, Category 12: End-of-life treatment of sold products emissions inreporting year covered by target (metric tons CO2e)
82,050.6

Scope 3, Category 13: Downstream leased assets emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 14: Franchises emissions in reporting year covered bytarget (metric tons CO2e)
Scope 3, Category 15: Investments emissions in reporting year covered bytarget (metric tons CO2e)
Scope 3, Other (upstream) emissions in reporting year covered by target(metric tons CO2e)
Scope 3, Other (downstream) emissions in reporting year covered by target(metric tons CO2e)
Total Scope 3 emissions in reporting year covered by target (metric tons
CO2e)4,257,276.2

Total emissions in reporting year covered by target in all selected scopes(metric tons CO2e)4,257,276.2

Does this target cover any land-related emissions?
Yes, it covers land-related and non-land related emissions (e.g. SBT approved before
the release of FLAG target-setting guidance)% of target achieved relative to base year [auto-calculated]
15.7390216667

Target status in reporting year
Underway

Please explain target coverage and identify any exclusions

81

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

As per SBTi Submission guidance, the target boundary also includes biogenic
emissions and removals (reported separately from the scopes), and which accounted in
the base year for:
Direct CO2 emissions from combustion of biofuels and/or biomass feedstocks for the fullvalue chain: 2,431,162 tCO2
Estimated CO2 removals related to the use of biofuels and/or biomass feedstocks forthe full value chain: -2,321,922 tCO2

Plan for achieving target, and progress made to the end of the reporting year
In 2022, we achieved an 8% reduction versus our 2019 baseline (19% in 2021).
Although our planned programs delivered reductions to expectation – thanks toinitiatives to reduce emissions in our supply chain, for example initiatives related tomechanized activities in our tobacco supply chain, combined with other initiatives
throughout our value chain - we faced unforeseen challenges in 2022 due tounfavorable business conditions. The geopolitical situation in Europe, war in Ukraine,
and adverse impact of supply chain disruption have impacted our decarbonization plans,
especially those focused on scope 3, requiring us at times to assume trade-offs between
financial and natural capital to ensure business continuity.
Plan for achieving the target includes addressing scope 3 emissions through multiple
initiatives, such as the Good Agriculture Practices program, the Zero Deforestation
Manifesto, engagement with our direct material and electronics suppliers, and our ecodesign and circularity program, which applies circular economy concepts and productlife-time optimization.

List the emissions reduction initiatives which contributed most to achieving
this target

Target reference number
Abs 3

Is this a science-based target?
Yes, and this target has been approved by the Science Based Targets initiative

Target ambition
1.5°C aligned

Year target was set
2022

Target coverage
Company-wide

Scope(s)Scope 1
Scope 2
Scope 382

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 2 accounting method
Market-based

Scope 3 category(ies)Category 1: Purchased goods and services
Category 2: Capital goods
Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
Category 4: Upstream transportation and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 9: Downstream transportation and distribution
Category 11: Use of sold products
Category 12: End-of-life treatment of sold products

Base year
2019

Base year Scope 1 emissions covered by target (metric tons CO2e)397,210Base year Scope 2 emissions covered by target (metric tons CO2e)
158,672

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target (metric tons CO2e)3,451,556

Base year Scope 3, Category 2: Capital goods emissions covered by target(metric tons CO2e)147,902

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target (metric tons CO2e)114,703

Base year Scope 3, Category 4: Upstream transportation and distribution
emissions covered by target (metric tons CO2e)496,745

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target (metric tons CO2e)
3,726

Base year Scope 3, Category 6: Business travel emissions covered by target(metric tons CO2e)
111,283

83

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year Scope 3, Category 7: Employee commuting emissions covered bytarget (metric tons CO2e)41,470Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget (metric tons CO2e)
Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target (metric tons CO2e)
58,648Base year Scope 3, Category 10: Processing of sold products emissions
covered by target (metric tons CO2e)
Base year Scope 3, Category 11: Use of sold products emissions covered bytarget (metric tons CO2e)
107,319

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target (metric tons CO2e)
87,568Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target (metric tons CO2e)
Base year Scope 3, Category 14: Franchises emissions covered by target(metric tons CO2e)
Base year Scope 3, Category 15: Investments emissions covered by target(metric tons CO2e)
Base year Scope 3, Other (upstream) emissions covered by target (metric tons
CO2e)Base year Scope 3, Other (downstream) emissions covered by target (metrictons CO2e)
Base year total Scope 3 emissions covered by target (metric tons CO2e)
4,620,920

Total base year emissions covered by target in all selected Scopes (metrictons CO2e)84

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

5,176,802

Base year Scope 1 emissions covered by target as % of total base year
emissions in Scope 1
100

Base year Scope 2 emissions covered by target as % of total base year
emissions in Scope 2
100

Base year Scope 3, Category 1: Purchased goods and services emissions
covered by target as % of total base year emissions in Scope 3, Category 1:
Purchased goods and services (metric tons CO2e)100

Base year Scope 3, Category 2: Capital goods emissions covered by target as% of total base year emissions in Scope 3, Category 2: Capital goods (metrictons CO2e)100

Base year Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) emissions covered by target as % of total base year
emissions in Scope 3, Category 3: Fuel-and-energy-related activities (notincluded in Scopes 1 or 2) (metric tons CO2e)100

Base year Scope 3, Category 4: Upstream transportation and distribution
covered by target as % of total base year emissions in Scope 3, Category 4:
Upstream transportation and distribution (metric tons CO2e)100

Base year Scope 3, Category 5: Waste generated in operations emissions
covered by target as % of total base year emissions in Scope 3, Category 5:
Waste generated in operations (metric tons CO2e)100

Base year Scope 3, Category 6: Business travel emissions covered by target
as % of total base year emissions in Scope 3, Category 6: Business travel(metric tons CO2e)100

Base year Scope 3, Category 7: Employee commuting covered by target as %of total base year emissions in Scope 3, Category 7: Employee commuting(metric tons CO2e)100

85

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year Scope 3, Category 8: Upstream leased assets emissions covered bytarget as % of total base year emissions in Scope 3, Category 8: Upstream
leased assets (metric tons CO2e)
Base year Scope 3, Category 9: Downstream transportation and distribution
emissions covered by target as % of total base year emissions in Scope 3,
Category 9: Downstream transportation and distribution (metric tons CO2e)100

Base year Scope 3, Category 10: Processing of sold products emissions
covered by target as % of total base year emissions in Scope 3, Category 10:
Processing of sold products (metric tons CO2e)
Base year Scope 3, Category 11: Use of sold products emissions covered bytarget as % of total base year emissions in Scope 3, Category 11: Use of soldproducts (metric tons CO2e)100

Base year Scope 3, Category 12: End-of-life treatment of sold products
emissions covered by target as % of total base year emissions in Scope 3,
Category 12: End-of-life treatment of sold products (metric tons CO2e)100

Base year Scope 3, Category 13: Downstream leased assets emissions
covered by target as % of total base year emissions in Scope 3, Category 13:
Downstream leased assets (metric tons CO2e)
Base year Scope 3, Category 14: Franchises emissions covered by target as %of total base year emissions in Scope 3, Category 14: Franchises (metric tons
CO2e)Base year Scope 3, Category 15: Investments emissions covered by target as% of total base year emissions in Scope 3, Category 15: Investments (metrictons CO2e)
Base year Scope 3, Other (upstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (upstream) (metric tons CO2e)
Base year Scope 3, Other (downstream) emissions covered by target as % of
total base year emissions in Scope 3, Other (downstream) (metric tons CO2e)86Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year total Scope 3 emissions covered by target as % of total base year
emissions in Scope 3 (in all Scope 3 categories)
100

Base year emissions covered by target in all selected Scopes as % of total
base year emissions in all selected Scopes
100

Target year
2040

Targeted reduction from base year (%)
90

Total emissions in target year covered by target in all selected Scopes (metrictons CO2e) [auto-calculated]
517,680.2

Scope 1 emissions in reporting year covered by target (metric tons CO2e)297,602

Scope 2 emissions in reporting year covered by target (metric tons CO2e)42,482

Scope 3, Category 1: Purchased goods and services emissions in reporting
year covered by target (metric tons CO2e)
3,003,490

Scope 3, Category 2: Capital goods emissions in reporting year covered bytarget (metric tons CO2e)
93,699.9

Scope 3, Category 3: Fuel-and-energy-related activities (not included in
Scopes 1 or 2) emissions in reporting year covered by target (metric tons
CO2e)86,259.6

Scope 3, Category 4: Upstream transportation and distribution emissions inreporting year covered by target (metric tons CO2e)756,551.6

Scope 3, Category 5: Waste generated in operations emissions in reporting
year covered by target (metric tons CO2e)
3,726.4

Scope 3, Category 6: Business travel emissions in reporting year covered bytarget (metric tons CO2e)42,509.2

87

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 3, Category 7: Employee commuting emissions in reporting year
covered by target (metric tons CO2e)36,108.6

Scope 3, Category 8: Upstream leased assets emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 9: Downstream transportation and distribution emissions
in reporting year covered by target (metric tons CO2e)46,381.5

Scope 3, Category 10: Processing of sold products emissions in reporting
year covered by target (metric tons CO2e)
Scope 3, Category 11: Use of sold products emissions in reporting year
covered by target (metric tons CO2e)
106,498.8

Scope 3, Category 12: End-of-life treatment of sold products emissions inreporting year covered by target (metric tons CO2e)
82,050.6

Scope 3, Category 13: Downstream leased assets emissions in reporting year
covered by target (metric tons CO2e)
Scope 3, Category 14: Franchises emissions in reporting year covered bytarget (metric tons CO2e)
Scope 3, Category 15: Investments emissions in reporting year covered bytarget (metric tons CO2e)
Scope 3, Other (upstream) emissions in reporting year covered by target(metric tons CO2e)
Scope 3, Other (downstream) emissions in reporting year covered by target(metric tons CO2e)
Total Scope 3 emissions in reporting year covered by target (metric tons
CO2e)4,257,276.2

88Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Total emissions in reporting year covered by target in all selected scopes(metric tons CO2e)
4,597,360.2

Does this target cover any land-related emissions?
Yes, it covers land-related and non-land related emissions (e.g. SBT approved before
the release of FLAG target-setting guidance)% of target achieved relative to base year [auto-calculated]
12.4367171513

Target status in reporting year
New

Please explain target coverage and identify any exclusions
In 2021 PMI released its Low Carbon Transition Plan (LCTP), which included updated
targets as well as a detailed strategy to decarbonize its direct operations by 2025, andto achieve net-zero emissions across its entire value chain by 2040. The plan brings
forward PMI’s ambitions to achieve carbon neutrality in its direct operations (scopes
1+2) by five years, to 2025, and to achieve net-zero across its entire value chain(scopes 1+2+3) by 10 years, to 2040. PMI’s net-zero target is aligned with a 1.5 °C
scenario and was submitted to Science Based Targets initiative for validation in late2021, being approved in 2022. During 2021, PMI also committed to Business ambition
for 1.5 °C by, signing the pledge (https://sciencebasedtargets.org/companies-takingaction#table) and joining the visionary corporate leaders taking ambitious climate action.

Plan for achieving target, and progress made to the end of the reporting year
In 2022, we achieved an 11% reduction versus our 2019 baseline. Although our planned
programs delivered reductions to expectation – thanks to initiatives to reduce emissions
in our directs operations and our supply chain, for example through programs toincrease energy efficiency in our factories, on-site renewable investments, sourcing
power from renewable resources, program to reduce emissions in our vehicles fleet aswell as initiatives related to mechanized activities in our tobacco supply chain, combinedwith other initiatives throughout our value chain - we faced unforeseen challenges in
2022 due to unfavourable business conditions. The geopolitical situation in Europe, war
in Ukraine, and adverse impact of supply chain disruption have impacted ourdecarbonization plans, especially those focused on scope 3, requiring us at times toassume trade-offs between financial and natural capital to ensure business continuity.
Plan for achieving the target includes addressing scope 3 emissions through multiple
initiatives, such as the Good Agriculture Practices program, the Zero Deforestation
Manifesto, engagement with our direct material and electronics suppliers, and our ecodesign and circularity program, which applies circular economy concepts and productlife-time optimization.
Once we have maximized our emissions reductions, we compensate the remaining
unavoidable emissions. In 2020, PMI developed a targeted study to map the potential ofnature-based solutions (NBS) for insetting in our tobacco supply chain and evaluatednatural carbon sinks in the context of our carbon neutrality ambition. We prioritize89

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

insetting projects in our supply chain when possible and purchase certified carbon
credits when needed. Our Portfolio of Climate Investments (PCI) brings bothstandardization and sophistication to our approach to compensation. PMI will graduallyshift from relying on offsets (emissions avoidance/reduction) toward developing andmaking use of emissions removals, including nature-based and innovative technologicalcarbon sequestration projects.
PMI believes that limiting the use of market approaches (offsetting) in the short term byprioritizing direct investment in our supply chain in the medium and long term will
support the cost effectiveness of our actions and will assure transparency, consistency,and quality of our climate investment strategy.

List the emissions reduction initiatives which contributed most to achieving
this target

C4.2(C4.2) Did you have any other climate-related targets that were active in the reportingyear?
Target(s) to increase low-carbon energy consumption or production
Net-zero target(s)Other climate-related target(s)C4.2a(C4.2a) Provide details of your target(s) to increase low-carbon energy consumption
or production.

Target reference number
Low 1

Year target was set
2019

Target coverage
Business activity

Target type: energy carrier
Electricity

Target type: activity
Consumption

Target type: energy source
Renewable energy source(s) only

Base year90Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

2010

Consumption or production of selected energy carrier in base year (MWh)0% share of low-carbon or renewable energy in base year
0

Target year2025

% share of low-carbon or renewable energy in target year100

% share of low-carbon or renewable energy in reporting year87

% of target achieved relative to base year [auto-calculated]
87

Target status in reporting year
Underway

Is this target part of an emissions target?
This target is directly linked with our scopes 1 and 2 SBT absolute reduction target (Abs1).

Is this target part of an overarching initiative?
Science Based Targets initiative

Please explain target coverage and identify any exclusions
This target covers the amount of electricity consumed (purchased and self-generated)from renewable sources in PMI factories. Our initial target, set in 2016, aimed at 100%
renewable by 2030. This target was amended in 2019 for 100% by 2025 to reflect ourincreased ambition level.

Plan for achieving target, and progress made to the end of the reporting year
In 2022, 87% of our manufacturing facilities’ electricity consumption was sourced fromrenewable sources versus PMI’s 2010 baseline where we were not sourcing/generatingany.
We will continue sourcing more renewable electricity as it becomes available in the
countries where we operate and in addition to self-generated renewable electricity
production, we continue to consider opportunities to source electricity through powerpurchase agreements (PPAs) in the future.
The 100% green electricity target covers all our factories and is part of PMI strategy to
first and foremost drive toward a low-carbon economy by promoting the renewableenergy industry as an alternative to fossil fueled energy and subsequently reduce ourscope 2 emissions.
To achieve our ambitious Science Based Targets, PMI uses all the strategic tools andmechanisms that have been identified as good practices by the recognized international
91

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

standards, including RE100 and EP100 guidelines to manage our company’s energy
consumption.

List the actions which contributed most to achieving this target

C4.2b
(C4.2b) Provide details of any other climate-related targets, including methane
reduction targets.

Target reference number
Oth 1

Year target was set
2019

Target coverage
Business division

Target type: absolute or intensity
Absolute

Target type: category & Metric (target numerator if reporting an intensity
target)Land use change
Percent of supply chain compliant with zero gross deforestation

Target denominator (intensity targets only)
Base year
2019

Figure or percentage in base year
0

Target year
2022

Figure or percentage in target year
100

Figure or percentage in reporting year100

% of target achieved relative to base year [auto-calculated]
100

92

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Target status in reporting year
Achieved

Is this target part of an emissions target?
No

Is this target part of an overarching initiative?
Remove deforestation

Please explain target coverage and identify any exclusions
This target covers all our tobacco supply chain and assesses the proportion of tobaccopurchased at no risk of gross deforestation of primary and protected forests.
To address the risks resulting from land-use change, we monitor the impact of land-use
changes due to tobacco cultivation and design actions based on mitigation hierarchy
when needed.
When reporting "Quantitative progress (in percent) towards the full implementation ofyour commitment in the recent financial year:" we have calculated and reported thequantitative progress related to the implementation of the zero gross deforestation target
in 2022 for primary and protected forests. In 2022 our commitment of tobaccopurchased at no risk of gross deforestation reached 100% and was validated by an
external auditor against our Zero Deforestation Manifesto guidelines for suppliers.
In the short term (up to 5 years) PMI expects this target to be aligned with the GHG
Protocol’s ‘Land Sector and Removals Guidance’, which will allow us to account andreport emissions and removals from land use, land use change, and our progress
towards achieving our Zero Deforestation Manifesto commitments. This target is also
expected to be integrated into PMI’s approach to develop Forest, Land and Agriculture(FLAG) targets as part of the company’s commitments to the Science Based Targets
initiative.

Plan for achieving target, and progress made to the end of the reporting year
List the actions which contributed most to achieving this target
Main actions/initiatives that contributed to achieving this target were two: geospatial
analysis and the deployment of our Monitoring, Verification, and Reporting (MVR)
Framework for Sustainable Curing Fuels across our entire flue-cured supply chain. Our
geospatial analysis is based on the digitalization of our contracted tobacco farmers
supply chain through the generation of shapefiles that include their farms and a buffer
area where the impact on natural forest (primary and protected forest categories) could
potentially happen; we monitor with analytical tools such as Global Forest Watch thewhole area for all our shapefiles where wood-based fuels are used in the curing
process. We calculate the risk of forest cover loss and where the indicator is above acertain threshold typical of each shapefile, we proceed to the ground truthing of theinformation by requesting an MVR audit on the ground to be executed.
The MVR audit, carried out by a third-party auditor, requires the traceability of firewood
to ensure it originates from sustainable sources in line with the guidelines included in
our Zero Deforestation Manifesto that defines our commitment to zero gross e zero net
deforestation for the entire tobacco supply chain.
93

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Target reference number
Oth 2

Year target was set
2022

Target coverage
Company-wide

Target type: absolute or intensity
Absolute

Target type: category & Metric (target numerator if reporting an intensity
target)Engagement with suppliers
Percentage of suppliers (by procurement spend) with a science-based target

Target denominator (intensity targets only)
Base year
2022

Figure or percentage in base year
35

Target year
2025

Figure or percentage in target year
15

Figure or percentage in reporting year35

% of target achieved relative to base year [auto-calculated]
0

Target status in reporting year
New

Is this target part of an emissions target?
No

Is this target part of an overarching initiative?
Science Based Targets initiative – approved supplier engagement target

Please explain target coverage and identify any exclusions

94

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

With over 30,000 tier 1 suppliers globally, our supply chain spend amounted toapproximately USD 12.6 billion in 2022. Our global supply chain is organized into two
main streams—direct spend (tobacco leaf, direct materials, electronic devices andadvanced procurement) and indirect spend (technical procurement, R&D expenditure,indirect materials and services). From a sustainability standpoint, the supply chain
categories exposed to the highest risks pertain to our direct spend. Likewise, our mostcarbon-intensive supplies are the direct materials used in the manufacturing of our
products, such as cellulose acetate tow, pulp and paper, and our smoke-free electronic
devices; together direct spend suppliers represent 56% of our Scope 3 emissions.
Due to the relevance of direct spend suppliers in terms of carbon emissions, spend andexposure to climate risks, PMI is engaging these suppliers as part of a Science Based
Target for supplier engagement. Through this target, we are working upon and expectthat up to 40% of PMI’s direct spend suppliers representing 15% of our total spend, will
be adopting Science Based Targets by 2025. Over the next years, PMI is expecting tomaintain and expand the scope and coverage of this target to include additional
suppliers, despite expected changes in spend allocation due to volume reallocation andchange of suppliers as part of the company’s transition to smoke-free products.

Plan for achieving target, and progress made to the end of the reporting year
As part of our science-based approach to climate action, we engage with our criticalsuppliers to adopt science-based targets. Specifically, PMI’s target is for 15 percent
of suppliers by spend (covering purchased goods and services) to have science-basedtargets by 2025.
During the year, we further increased our visibility on supply chain spend covered bysuppliers that are either committed to science-based targets or have targets validated by
the Science-Based Target initiative in place. In 2022, this represented 35 percent of our
total direct and indirect spend. In the years to come, we will continue engaging with
suppliers and monitoring this figure, taking into consideration a fast evolving external
environment and expected changes in supplier mix in line with our expanding portfolio of
products.

List the actions which contributed most to achieving this target

C4.2c(C4.2c) Provide details of your net-zero target(s).

Target reference number
NZ1

Target coverage
Company-wide

Absolute/intensity emission target(s) linked to this net-zero target
Abs1
95

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Abs2
Abs3

Target year for achieving net zero2040

Is this a science-based target?
Yes, and this target has been approved by the Science Based Targets initiative

Please explain target coverage and identify any exclusions
In 2021 PMI released its Low Carbon Transition Plan (LCTP), which included updated
targets as well as a detailed strategy to decarbonize its direct operations by 2025, andto achieve net-zero emissions across its entire value chain by 2040. The plan brings
forward PMI’s ambitions to achieve carbon neutrality in its direct operations (scopes
1+2) by five years, to 2025, and to achieve net-zero across its entire value chain(scopes 1+2+3) by 10 years, to 2040. PMI’s net-zero target is aligned with a 1.5 °C
scenario and was submitted to Science Based Targets initiative for validation in late2021, being approved in 2022. During 2021, PMI also committed to Business ambition
for 1.5 °C by, signing the pledge (https://sciencebasedtargets.org/companies-takingaction#table) and joining the visionary corporate leaders taking ambitious climate action.

Do you intend to neutralize any unabated emissions with permanent carbon
removals at the target year?
Yes

Planned milestones and/or near-term investments for neutralization at target
year
We reduce energy consumption and optimize efficiency to cut emissions. We minimize
the use of fossil fuels and promote switching to renewable energy including: 1) phasingout coal in manufacturing by 2020 (results PMI already achieved and is planning tomaintain) 2) reaching 100% of electricity used and purchased in our factories derived
from renewable sources by 2025. In our operations, we are reducing emissions andincreasing efficiency with two main programs: Zero Carbon Technology (ZCT) andDrive4Zero (D4Zero). ZCT involves initiatives such as biomass burners combined withthermal storage and solar photovoltaics for carbon emissions reduction and carbon
capture and storage.
PMI’s activities in improving efficiency are categorized in our D4Zero program, whichaims to eliminate economic losses caused by inefficient energy use. Under the program,
we look for industrial and manufacturing solutions such as heat recovery andmanufacturing-process optimization. We also promote behavioral change through our
Zero Loss Mindset program.
Once we have maximized our emissions reductions, we compensate the remaining
unavoidable emissions. In 2020, PMI developed a targeted study to map the potential ofnature-based solutions (NBS) for insetting in our tobacco supply chain and evaluatednatural carbon sinks in the context of our carbon neutrality ambition. We prioritize
insetting projects in our supply chain when possible and purchase certified carbon
credits when needed. Our Portfolio of Climate Investments (PCI) brings both96

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

standardization and sophistication to our approach to compensation. PMI will graduallyshift from relying on offsets (emissions avoidance/reduction) toward developing andmaking use of emissions removals, including nature-based and innovative technologicalcarbon sequestration projects.
To support decarbonization efforts and net-zero targets, the PCI was created in line withinternationally recognized practices, such as International Carbon Reduction andOffsetting Alliance (ICROA) code of Best Practice, the report of the Taskforce on
Scaling Voluntary Carbon Markets (TFVCM), and GHG protocol Land Sector andRemovals Initiative. PMI believes that limiting the use of market approaches (offsetting)in the short term by prioritizing direct investment in our supply chain in the medium andlong term will support the cost effectiveness of our actions and will assure transparency,
consistency, and quality of our climate investment strategy.

Planned actions to mitigate emissions beyond your value chain (optional)
PMI addresses scope 3 emissions through multiple initiatives, including engaging with
suppliers to work on solutions and programs to reduce the full GHG footprint. Our workis guided by the Good Agriculture Practices program, the Zero Deforestation Manifesto,
and the eco-design and circularity program, which applies circular economy concepts
and product life-time optimization.
We aim at reducing emissions of our supply chain, focusing first on larger contributors toaddress their gaps while also considering performance of virtuous suppliers withefficient processes in place as an element in the allocation of business and volumes.
D4Zero program applies beyond our direct operations where the zero-loss mindset is
key to reduce the use of materials starting from the design of our products andbenefiting productivity while reducing overall carbon emissions. As for the upstream
emissions reductions, PMI aims at reducing the emissions from packaging incollaboration with suppliers leveraging technological improvements and improved
packaging design to minimize the use of packaging materials without compromisingprotection and convenience.
PMI tackles emissions from upstream transportation with a strategy to proactively
assess and select lower-carbon transportation carriers and transport routes. PMI will set
targets to drive a successful roadmap including engaging with suppliers to promoteemissions reduction strategies in line with carbon objectives while investigating
improved/ alternative technologies to transport goods.
PMI is making efforts to minimize the waste generated by our manufacturing facilities
and offices, promoting materials reuse and recycling, and striving for responsible
disposal. PMI achieved its commitment of virtually zero waste to landfill across all our
manufacturing operations by 2022 – meaning a landfill diversion rate of 99 percent or
greater.
To sustain the results achieved with further action and continuously improve ourenvironmental practices, we are constantly working on projects to create circularity ofmaterials in the supply chain to reduce waste generation to the bare minimum.
Downstream, emissions generated by the transport and distribution, use, and end-of life
management of the products represented 5.1% of PMI’s total footprint in 2022. PMI is
reducing the emissions from these sources through improvements in the heated tobacco
units as well as the adoption of eco-system design standards.
97

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C4.3
(C4.3) Did you have emissions reduction initiatives that were active within thereporting year? Note that this can include those in the planning and/or
implementation phases.
Yes

C4.3a
(C4.3a) Identify the total number of initiatives at each stage of development, and for
those in the implementation stages, the estimated CO2e savings.
Number of
initiatives

Total estimated annual CO2e savings in metrictonnes CO2e (only for rows marked *)Under investigation

81

To be implemented*

22

28,306

Implementationcommenced*

66

11,378Implemented*

90

61,483.3

Not to be implemented 85

C4.3b
(C4.3b) Provide details on the initiatives implemented in the reporting year in the tablebelow.

Initiative category & Initiative type
Energy efficiency in buildings
Heating, Ventilation and Air Conditioning (HVAC)

Estimated annual CO2e savings (metric tonnes CO2e)
1,159

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1
Scope 2 (location-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
502,360

Investment required (unit currency – as specified in C0.4)
983,66398

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Payback period
1-3 years

Estimated lifetime of the initiative
6-10 years

Comment
4 initiatives in AHU systems optimization and modernizations in existing units in our
manufacturing centers.
1 initiative for adiabatic humidification in our manufacturing site.

Initiative category & Initiative type
Energy efficiency in buildings
Lighting

Estimated annual CO2e savings (metric tonnes CO2e)2

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (location-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
316,494

Investment required (unit currency – as specified in C0.4)
782,171

Payback period
1-3 years

Estimated lifetime of the initiative
6-10 years

Comment
These are initiatives mainly focused on installation of LED lighting in our factories. In
total 16 initiatives in 2022.

Initiative category & Initiative type
Energy efficiency in production processes
Compressed air

Estimated annual CO2e savings (metric tonnes CO2e)1199Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (location-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
179,247

Investment required (unit currency – as specified in C0.4)
353,409

Payback period
1-3 years

Estimated lifetime of the initiative
6-10 years

Comment
10 initiatives implemented in our factories compressed air systems, mainly focusing on
the decrease of pressure, equipment modernization, leakages prevention.

Initiative category & Initiative type
Energy efficiency in production processes
Cooling technology

Estimated annual CO2e savings (metric tonnes CO2e)
2,179.3

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (location-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
706,766

Investment required (unit currency – as specified in C0.4)
1,345,421

Payback period
1-3 years

Estimated lifetime of the initiative
6-10 years

Comment
13 initiatives in central cooling systems implemented in our factories in 2022.
100

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Initiative category & Initiative type
Energy efficiency in production processes
Automation

Estimated annual CO2e savings (metric tonnes CO2e)636.3

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1
Scope 2 (location-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
435,662

Investment required (unit currency – as specified in C0.4)
1,011,875

Payback period
1-3 years

Estimated lifetime of the initiative
6-10 years

Comment
20 automation related initiatives were implemented in our factories in 2022.

Initiative category & Initiative type
Energy efficiency in production processes
Reuse of water

Estimated annual CO2e savings (metric tonnes CO2e)0

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (market-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
26,400Investment required (unit currency – as specified in C0.4)
30,000101

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Payback period
1-3 years

Estimated lifetime of the initiative
6-10 years

Comment
In 2022 we implemented 1 initiative aiming to optimize reuse of water, resulting in water
consumption reduction, electricity consumption reduction and cost savings. The initiative
was implemented in one of our manufacturing sites already sourcing 100% of renewableelectricity, reason why CO2 emissions (market based) savings are zero.

Initiative category & Initiative type
Energy efficiency in production processes
Waste heat recovery

Estimated annual CO2e savings (metric tonnes CO2e)
1,537.3

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
628,859

Investment required (unit currency – as specified in C0.4)
1,148,424

Payback period
1-3 years

Estimated lifetime of the initiative
6-10 years

Comment
In 2022 we implemented 17 initiatives in our manufacturing sites to recover heat fromour steam system.

Initiative category & Initiative type
Energy efficiency in production processes
Motors and drives

Estimated annual CO2e savings (metric tonnes CO2e)0102Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (market-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
16,115Investment required (unit currency – as specified in C0.4)
37,393

Payback period
1-3 years

Estimated lifetime of the initiative
6-10 years

Comment
In 2022 we implemented 2 initiatives aiming to optimize our drives systems resulting inelectricity consumption reduction and cost savings. The initiatives were implemented in
one of our manufacturing sites already sourcing 100% of renewable electricity, reason
why CO2 emissions (market based) savings are zero.

Initiative category & Initiative type
Energy efficiency in buildings
Heating, Ventilation and Air Conditioning (HVAC)

Estimated annual CO2e savings (metric tonnes CO2e)
213

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (market-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
48,902

Investment required (unit currency – as specified in C0.4)
102,649

Payback period
1-3 years

Estimated lifetime of the initiative
6-10 years

103Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Comment
2 initiatives relevant to climatic condition optimization were implemented in our
manufacturing sites.

Initiative category & Initiative typeTransportation
Company fleet vehicle replacement

Estimated annual CO2e savings (metric tonnes CO2e)3,801.3

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
1,331,020

Investment required (unit currency – as specified in C0.4)
0Payback period<1 year

Estimated lifetime of the initiative
3-5 years

Comment
This initiative reflects the CO2e saved through the replacement of older vehicles withgreener vehicles (both benefit vehicles and working tools) within the PMI fleet.
The monetary savings were calculated on the amount of fuel saved multiplied by anaverage worldwide price for fuel in 2022.

Initiative category & Initiative typeNon-energy industrial process emissions reductions
Process material substitution

Estimated annual CO2e savings (metric tonnes CO2e)6,222.5

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 1

Voluntary/Mandatory
104

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
0Investment required (unit currency – as specified in C0.4)
24,045

Payback period
No payback

Estimated lifetime of the initiative
1-2 years

Comment
The initiative is related to the substitution of one of our process inputs, moving to a
product sourced and produced by sustainable sources.

Initiative category & Initiative typeLow-carbon energy consumption
Low-carbon electricity mix

Estimated annual CO2e savings (metric tonnes CO2e)
10,168.7

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 2 (market-based)

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
0Investment required (unit currency – as specified in C0.4)
38,647

Payback period
No payback

Estimated lifetime of the initiative
1-2 years

Comment
This initiative is related to the procurement of renewable energy (certified green
electricity) for most of our manufacturing facilities. This program started in 2014 and in
2022 it expanded to new countries like Jordan and offices & warehouses facilities in

105

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Indonesia. Certificates are available for 2022. Investment is the current additionalamount paid for green electricity.

Initiative category & Initiative typeCompany policy or behavioral change
Resource efficiency

Estimated annual CO2e savings (metric tonnes CO2e)35,552.9

Scope(s) or Scope 3 category(ies) where emissions savings occur
Scope 3 category 1: Purchased goods & services

Voluntary/Mandatory
Voluntary

Annual monetary savings (unit currency – as specified in C0.4)
32,400,000

Investment required (unit currency – as specified in C0.4)
0Payback period
No payback

Estimated lifetime of the initiative
3-5 years

Comment
This initiative is relevant to a productivity program co-lead by PMI procurement andproduct development teams focusing on Direct Materials (DIMs) to identify andimplement opportunities for: specification harmonization, specification optimization thru
down gauging, material usage optimization and reduction, material substitution, waste
optimization/reduction and reuse, and material removal. No investment is required since
the further deployed specifications are already existing and running on our productionlines and do not require capex.
The Program was initiated at the beginning of 2019, with the first deployment on our
production lines of certain projects in 2019, following quality and machinability tests.
Some other initiatives, requiring more extensive testing procedures and/or production
capacity planning on supplier’s side, were also commenced in 2020.
Scope 3: category 1 purchased goods

C4.3c(C4.3c) What methods do you use to drive investment in emissions reduction
activities?
MethodComment
106

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Dedicated budget for energy
efficiency

Our Energy Management Program (over $100 million in
investments since 2010) aims to reduce our factories’ energy
consumption and help achieve greenhouse gas emissions
reduction targets. In 2022 we achieved a reduction of 39% of our
Scope 1 and 2 compared to our 2019, and are well on track tomeet our SBTi-validated target for a 50 percent reduction by 2030
versus our baseline.
Our Drive 4 Zero program, which aims to eliminate economic
losses caused by inefficient energy use. Under the program, welook for industrial and manufacturing solutions such as heatrecovery and manufacturing-process optimization. We also
promote behavioral change through our Zero Loss Mindset
program.
To support our Drive 4 Zero program, an Energy Saving Initiatives(ESIs) program has been in place since 2019, triggering more than
700 projects worldwide including among many others LED lighting,
HVAC upgrade, chilled water optimization and heat recovery
projects.

Dedicated budget for otheremissions reduction activities

We have developed a renewable energy strategy with an initial
focus on low-carbon electricity uptake in the EU. We commenced
the program in 2012 and continued to implement it in more
facilities in 2022. We continue to seek new opportunities topurchase and/or self-generate green energy. In order to drive theadoption of low-carbon electricity sources within our entire
organization, we set the more stringent target to reach 100% ofelectricity used and purchased in our factories derived fromrenewable sources by 2025. We are progressing well as we havealready reached 87% in 2022.

Compliance with regulatory
requirements/standards

Compliance with policies and regulations are core to the way PMI
operates. In some circumstances compliance with regulatory
requirements and standards also provides PMI with the opportunity
to achieve energy/emissions reductions and particularly wheninvesting in new processes (e.g., requirements for renewableenergy or energy efficiency) for new or upgraded facilities in Italy,
Netherlands and Romania, under EU ETS scheme.
This has allowed us to delist sites in Germany and Portugal fromthe EU ETS scheme in previous years.

Employee engagement

Employee engagement is implemented through our objective
setting, Long-Range Planning process and via employee
communications, sharing of tools, guidance, and best practices. In
2022, all PMI Operations employees (more than 27,000 people)
had the opportunity to learn about sustainability topics, such as
Climate Change, carbon footprint, renewable energies, throughcommunications and engagement activities such as weeklyinternal-media posts, function-wide newsletters, special events and107

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

function-specific events. Furthermore, local market Sustainability
managers and Sustainability coordinators run specific focus days
and campaigns in all markets where we operate.
Other
Dedicated budget toincentivize other emissions
reduction initiative in our
agricultural supply chain

GAP is a broad program with 4 sustainability-related pillars –governance, people, crop and environment – implemented by ourleaf suppliers and contracted farmers. It promotes an Integrated
Production System which supports farmers in improving yield andfarm efficiency on a variety of crops (particularly food crops) andnot only tobacco. Through GAP, environmental improvement
programs are implemented in all the countries where we source
tobacco around the world; these programs include among others:
curing barn efficiency improvements; curing fuel switching to low
GHG emitting fuels; eliminating the use of coal; increasing the useof biomass; and helping farmers become wood self-sufficient andseeking traceable sources of sustainable wood.

Internal price on carbon

In line with our ambition to reduce carbon emissions aligning withthe 1.5-degree target since 2020 we have applied a shadow
carbon price (SCP) to help ensure that business decisions reflect
environmental costs by putting a price on carbon emissions. We
have modelled what an adequate internal shadow carbon priceshould be for PMI following a robust methodology, bestinternational practices, and a worst-case scenario analysis oftransition risks projected by 2030 and specific to our emission
profile and the geographies where we operate. In 2022 we
conducted a carbon
pricing benchmark assessment, and evaluated external factors,
such as inflation rates and developments in emissions trading
schemes, adjusting our shadow price from USD 65 to USD 105
per ton of CO2e. This will continue to be used in all businesscases preparation when they entail an impact (favorable orunfavorable) on our carbon emissions.

Internal finance mechanisms

Carbon reduction and compensation projects are stimulated andpromoted at PMI through the adoption of an internal financial
mechanism that uses an internal virtual carbon levy to support
adoption of new technology and invest in impactful projects in
GHG reduction/avoidance/removal. PMI carbon levy enables us tointernalize external costs by virtually charging our business
functions or affiliates for their respective emissions. With the aim ofusing calculated virtual revenue to size and fund investments that
contribute to the decarbonization of the business and support
behavioral change. The levy is collected in a climate fund (the PMI
Portfolio of Climate Investments) to finance high quality carbon
credits and removal projects aligning with the demanding
additional attributes PMI has set for them.

108

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Dedicated budget for lowcarbon product R&D

Amongst others, our 2025 eco-design and circularity ambitions are
to provide access to collection and recovery for device and its
consumables to all IQOS users and continue to reduce the carbon
footprint of our smoke-free products in line with our science-basedtargets.
The way we work is guided by the principles of eco-design andcircularity, which account for impacts related to materials sourcing,product function and design, manufacturing, use, and end-of-life.
In our operations, eco-design principles inform how we use lifecycle analysis (LCA) to assess comparative carbon footprint of our
products, from tobacco sourcing to end-of-life impacts.
Our long-term vision remains to recycle any waste that we collectwhile minimizing our CO2 footprint. In 2022, we advanced our
discussion with waste management and recycling partners on
potential second life that we could give to our recycled HTUs. Our
exploration is primarily focused on recycling of cellulose acetate,
one of the materials our filters are made from. Our investigations todate show chemical properties of cellulose acetate enable thematerial to be upcycled into a variety of applications: spinning offibers into fabrics, creation of pellets that can then bepressed/injection molded into a variety of hard goods. Thoughthese results are promising, the recycling of cellulose acetate –unlike recycling for many metals or plastics – is not a widely
available and developed waste stream across the globe that we
can leverage. When IQOS users return broken or end-of service
devices, our reverse-logistics program CIRCLE helps to cycle
materials back into the economy. In 2022, we continued the rolloutof our CIRCLE program, achieving 61% market volume coverage(vs. 63% in 2021, aspiration is 100% by 2025), with around
157,000 devices repaired and refreshed, and received by markets
for remarketing in 2022 (vs. 62,000 in 2021).
In addition to developing services to reduce the end-of-life impactof our products, our innovation and design teams are also
exploring low carbon, recyclable, and biodegradable options forfilters and cartridges. We are committed to significant investment
into continued research on biodegradability of filters, and we areworking toward a viable solution that meets strict international
standards, satisfies market requirements, and works with highvolume manufacturing.

C4.5(C4.5) Do you classify any of your existing goods and/or services as low-carbon
products?
No

109

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C5. Emissions methodology
C5.1(C5.1) Is this your first year of reporting emissions data to CDP?
No

C5.1a
(C5.1a) Has your organization undergone any structural changes in the reporting year,
or are any previous structural changes being accounted for in this disclosure ofemissions data?
Row 1
Has there been a structural change?
No

C5.1b
(C5.1b) Has your emissions accounting methodology, boundary, and/or reporting year
definition changed in the reporting year?
Change(s) in methodology,
boundary, and/or reporting
year definition?

Details of methodology, boundary, and/or reporting year
definition change(s)Row Yes, a change in methodology In 2022, we further improved our carbon footprint model and1data accuracy; improvements relate to, forexample, increased coverage of primary data collected fromdirect materials suppliers and integration of emissions related
to fleet purchase. This led to previous years being restatedaccordingly.

C5.1c(C5.1c) Have your organization’s base year emissions and past years’ emissions beenrecalculated as a result of any changes or errors reported in C5.1a and/or C5.1b?
Base year
Scope(s)Base year emissions recalculation policy,
recalculation recalculated including significance threshold
Row Yes1

Scope 3In line with the GHG protocol, PMI has arecalculation policy. Our threshold forrecalculation is +/- 5% for Scope 1 and 2 and
10% for Scope 3, which can be triggered bymultiple factors including organizationalchanges, or changes in the methodology, orPast years’
recalculation
Yes

110

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

identification of reporting errors, whose impact
is significant. PMI also utilizes the +/- 5% todefine materiality, in line with SBTi
recommendations, and applies it when
determining exclusions.
In 2022, we further improved our carbon
footprint model and data accuracy;
improvements relate to, for example, increased
coverage of primary data collected from directmaterials suppliers and integration ofemissions related to fleet purchase. Even
though this impact was below our recalculation
policy we integrated these improvements, andthis led to previous years being restatedaccordingly.

C5.2(C5.2) Provide your base year and base year emissions.
Scope 1
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)397,210

Comment
In 2020 we updated our baseline year, moving it from 2010 to 2019, to account forchanges in our footprint and business model. The rapid expansion of smoke freeproducts in our portfolio has made it necessary to set a new baseline in 2019 to reflect
the different emission profile created by the new product portfolio. We believe with amore recent and updated baseline PMI can be more incisive and transparent on the
decarbonization journey in alignment with the recommendations from the Science Base
Target initiative and better incorporating inputs from the models published byIntergovernmental Panel on Climate Change.

Scope 2 (location-based)
Base year start
January 1, 2019

Base year end
December 31, 2019111

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year emissions (metric tons CO2e)447,322

Comment
In 2020 we updated our baseline year, moving it from 2010 to 2019, to account forchanges in our footprint and business model. The rapid expansion of smoke freeproducts in our portfolio has made it necessary to set a new baseline in 2019 to reflect
the different emission profile created by the new product portfolio. We believe with amore recent and updated baseline PMI can be more incisive and transparent on the
decarbonization journey in alignment with the recommendations from the Science Base
Target initiative and better incorporating inputs from the models published byIntergovernmental Panel on Climate Change. Scope 2 (market-based)

Scope 2 (market-based)
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)
158,672

Comment
In 2020 we updated our baseline year, moving it from 2010 to 2019, to account forchanges in our footprint and business model. The rapid expansion of smoke freeproducts in our portfolio has made it necessary to set a new baseline in 2019 to reflect
the different emission profile created by the new product portfolio. We believe with amore recent and updated baseline PMI can be more incisive and transparent on the
decarbonization journey in alignment with the recommendations from the Science Base
Target initiative and better incorporating inputs from the models published byIntergovernmental Panel on Climate Change.

Scope 3 category 1: Purchased goods and services
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)3,451,556

Comment
Purchased goods and services includes:a) product related purchased goods and services which contains two major
subcategories: 1) tobacco, which is a key ingredient in PMI’s products and accounts for112

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

the largest carbon footprint of all raw materials. For each kilogram of green tobaccopurchased the value chain model calculates the emissions from all upstream associatedemissions (e.g., agricultural practices, curing, processing in stemmeries, and upstream
transport, etc.); and 2) other product related materials, e.g., filter, paper and packaging
materials. PMI engages with suppliers to gather their materials’ cradle-to-gate emissions
factors, and their plans for further reductions. Where this is not possible, industry
average emission factors are being used.
b) non-product related emissions which cover categories 1b includes emissions related
for example to professional services, marketing activities, facility services & supplies
among others and is mainly calculated using environmental extended input-output(EEIO) analysis, and GHG emissions factors that convert spend into GHG emissions.
In 2022, we further improved our carbon footprint model and data accuracy;
improvements relate to, for example, increased coverage of primary data collected fromdirect materials suppliers which led to previous years being restated accordingly.

Scope 3 category 2: Capital goods
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)147,902

Comment
This category includes emissions related to capital goods and is calculated using
environmental extended input-output (EEIO) analysis, and GHG emissions factors thatconvert spend into GHG emissions. In 2022, we further improved our carbon footprint
model and data accuracy; improvements relate to, for example, integration of emissions
related to fleet purchase. This led to previous years being restated accordingly.

Scope 3 category 3: Fuel-and-energy-related activities (not included in Scope 1 or
2)
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)114,703

Comment
These are GHG emissions associated with the production of fuels and energy
purchased and consumed by PMI (category 3) and not included under scope 1 and 2. It

113

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

is mainly calculated using activity data and emission factors from the UK’s Department
for Business, Energy & Industrial Strategy (BEIS).

Scope 3 category 4: Upstream transportation and distribution
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)496,745

Comment
The upstream transport and distribution of goods (category 4) includes emissions fromall purchased inbound and outbound logistics, transport between PMI facilities, andwarehousing.
Air and ocean transport emissions are mostly calculated by the carriers, based on theirown consumption and itinerary data. Road and mixed transport emissions are calculated
based on the volume of goods transported and the travelled distance where possible.
When no other information is available, environmental extended input-output (EEIO)
analysis is used, and GHG emissions factors that convert spend into GHG emissions.

Scope 3 category 5: Waste generated in operations
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)
3,726

Comment
GHG emissions from waste (category 5) includes all emissions from the third-party
disposal and treatment of waste generated by PMI’s owned or controlled operations andare calculated based on the weight and type of waste and the treatment method, using
the UK’s Department for Business, Energy & Industrial Strategy (BEIS) emissions
factors.

Scope 3 category 6: Business travel
Base year start
January 1, 2019

Base year end
December 31, 2019114

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year emissions (metric tons CO2e)
111,283

Comment
PMI’s employee business travel (category 6) is split into flights (calculated using primary
flight data), hotel stays (calculated from the number of night stays), taxis (calculated
from distance), and train (calculated from number of trips). Other business travel (which
is very minimal) is not directly collected by PMI and therefore emissions are calculated
based upon an expert assumption on the size of the emissions relative to PMI’s air
travel.

Scope 3 category 7: Employee commuting
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)41,470Comment
PMI’s employee commuting emissions (category 7) are calculated using headcount by
country and commuting profiles related to each country’s economic development andquality of public transport infrastructure. In this category, the optional impact of remote
work is included.

Scope 3 category 8: Upstream leased assets
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)0

Comment
PMI do lease some warehouse space from third parties with emissions that are notaccounted for in scope 1 and 2. However, for this scope 3 model, this warehouse spaceis included within category 4 – upstream transportation and distribution. Therefore
category 8 has been excluded to avoid double counting

Scope 3 category 9: Downstream transportation and distribution
Base year start
January 1, 2019115

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)
58,648Comment
The GHG emissions associated with the transportation and distribution of sold finishedgoods to retailers and end consumers that is not controlled and paid for by PMI(category 9) is calculated by defining profiles for a number of distribution channels(differing between transport mode, distances travelled, etc.) and allocating thepercentage of distributed products between each of the distribution channels.

Scope 3 category 10: Processing of sold products
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)0

Comment
PMI only sells final products to end-users, and no intermediate products which could befurther processed, transformed or included into other products; therefore, this category
has been excluded.

Scope 3 category 11: Use of sold products
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)
107,319

Comment
The associated impact of consumer use of PMI’s products (category 11) primarily
comes from the electricity used in charging PMI’s smoke free products, devices andemissions from lighters to light the cigarette. The use phase emissions are calculatedusing the International Energy Agency’s (IEA) emissions factors for charging smoke freeproducts devices in consumer countries / regions. In this category, the optional impact ofindirect emissions from the use of lighters for combustible products like cigarettes, isbeing calculated based on sales values and emissions assumptions.

Scope 3 category 12: End of life treatment of sold products
116

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)
87,568Comment
For each product PMI sells, there are associated emissions in their end of life (category12). Emission factors for the end-of-life treatment for combustible products and smokefree products (consumables and devices) were taken from life cycle analyses (LCAs).

Scope 3 category 13: Downstream leased assets
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)0

Comment
PMI does lease some office floor-space in certain offices around the world, but this has
been confirmed as extremely small, and regarded as de minimis, therefore this category
has been excluded.
In order to act as a guideline to determine which scope 3 categories should be
excluded, PMI has defined a suitable level of de minimis of 0.2% to guide inclusion/
exclusion decisions.

Scope 3 category 14: Franchises
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)0

Comment
There are currently no franchises emissions.

Scope 3 category 15: Investments
Base year start
January 1, 2019117

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)0

Comment
Emissions associated with investments (category 15) were estimated based on each of
the investee organizations (full value chain), allocating the emissions to PMI based onownership share, and eliminating any double counting if the emissions are alreadyreported elsewhere.
These emissions are currently excluded from the value chain inventory since theircontribution to the PMI’s scope 3 emissions is below the materiality threshold.

Scope 3: Other (upstream)
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)0

Comment
There are currently no other (upstream) emissions.

Scope 3: Other (downstream)
Base year start
January 1, 2019

Base year end
December 31, 2019

Base year emissions (metric tons CO2e)0

Comment
There are currently no other (downstream) emissions.

C5.3(C5.3) Select the name of the standard, protocol, or methodology you have used tocollect activity data and calculate emissions.
European Union Emission Trading System (EU ETS): The Monitoring and Reporting Regulation(MMR) – General guidance for installations
IEA CO2 Emissions from Fuel Combustion
ISO 14064-1
118

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised
Edition)
The Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Standard
Other, please specify
Ecoinvent to estimate the CO2 embedded in products in certain products within our value chain;
Defra Voluntary 2020 Reporting Guidelines

C6. Emissions data
C6.1
(C6.1) What were your organization’s gross global Scope 1 emissions in metric tons
CO2e?
Reporting year
Gross global Scope 1 emissions (metric tons CO2e)297,602.09

Start date
January 1, 2022

End date
December 31, 2022

Comment
Our scope 1 emissions correspond to manufacturing, offices, warehouses and sales
fleet.

C6.2(C6.2) Describe your organization’s approach to reporting Scope 2 emissions.
Row 1
Scope 2, location-based
We are reporting a Scope 2, location-based figure

Scope 2, market-based
We are reporting a Scope 2, market-based figure

Comment
Our scope 2 emissions correspond to manufacturing, offices and warehouses
emissions.

119Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C6.3
(C6.3) What were your organization’s gross global Scope 2 emissions in metric tons
CO2e?
Reporting year
Scope 2, location-based
358,475.39

Scope 2, market-based (if applicable)
42,481.87

Start date
January 1, 2022

End date
December 31, 2022

Comment
Our scope 2 emissions correspond to manufacturing, offices and warehouses
emissions.

C6.4(C6.4) Are there any sources (e.g. facilities, specific GHGs, activities, geographies,etc.) of Scope 1, Scope 2 or Scope 3 emissions that are within your selected reporting
boundary which are not included in your disclosure?
Yes

C6.4a
(C6.4a) Provide details of the sources of Scope 1, Scope 2, or Scope 3 emissions thatare within your selected reporting boundary which are not included in yourdisclosure.

Source of excluded emissions
Emissions from PMI operated IQOS stores

Scope(s) or Scope 3 category(ies)
Scope 1
Scope 2 (location-based)
Scope 2 (market-based)

Relevance of Scope 1 emissions from this source
Emissions are not relevant

120Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Relevance of location-based Scope 2 emissions from this source
Emissions are not relevant

Relevance of market-based Scope 2 emissions from this source
Emissions are not relevant

Relevance of Scope 3 emissions from this source
Date of completion of acquisition or merger
Estimated percentage of total Scope 1+2 emissions this excluded source
represents
0.6

Estimated percentage of total Scope 3 emissions this excluded source
represents
Explain why this source is excluded
As our IQOS stores activities are growing, we performed an analysis to estimate theiremissions. These activities are performed by PMI entities (no Franchises). We based
our calculation on the 2022 IQOS stores footprint (m2) and BEIS ND-NEED and DEFRA
emissions factors. Our calculations indicated that theses emissions are standing for
0.6% of our 2022 Scope 1 and 2 emissions (<5% materiality level). Based on this, PMI
understands that these business activities will remain in its watch list, though excluded
from our inventory for the time being.

Explain how you estimated the percentage of emissions this excluded source
represents
We based our calculation on the 2022 IQOS stores footprint (m2) and BEIS ND-NEEDand DEFRA emissions factors.

Source of excluded emissions
Emissions from business activities

Scope(s) or Scope 3 category(ies)
Scope 1
Scope 2 (location-based)
Scope 3: Purchased goods and services
Scope 3: Capital goods
Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)
Scope 3: Upstream transportation and distribution
Scope 3: Waste generated in operations
Scope 3: Business travel
Scope 3: Employee commuting
121

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 3: Downstream transportation and distribution
Scope 3: Processing of sold products
Scope 3: Use of sold products
Scope 3: End-of-life treatment of sold products

Relevance of Scope 1 emissions from this source
Emissions are not relevant

Relevance of location-based Scope 2 emissions from this source
Emissions are not relevant

Relevance of market-based Scope 2 emissions from this source
Relevance of Scope 3 emissions from this source
Emissions are not relevant

Date of completion of acquisition or merger
Estimated percentage of total Scope 1+2 emissions this excluded source
represents
1.6

Estimated percentage of total Scope 3 emissions this excluded source
represents
2.1

Explain why this source is excluded
The data and information in this submission do not incorporate PMI’s Vectura Fertin
Pharma business (consolidating the 2021 acquisitions of wellness and healthcarecompanies Fertin Pharma A/S, Vectura Group plc., and OtiTopic, Inc.). These emissions
represented 1.6 percent of PMI’s scope 1+2 emissions and 2.1 percent of scope 3
emissions in 2022 and were calculated in line with PMI’s methodology. They are
currently excluded from the inventory as they are below our materiality threshold set at 5
percent for scope 1 and 2, and 10 percent for scope 3 and are therefore not consideredmaterial. GHG emissions from Vectura Fertin Pharma will continue to be calculated on
an annual basis and will be integrated into the inventory if they become material.

Explain how you estimated the percentage of emissions this excluded source
represents
These emissions were calculated in line with PMI’s methodology.

Source of excluded emissions
Emissions excluded due to a recent acquisition or merger

Scope(s) or Scope 3 category(ies)
Scope 1
122

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 2 (market-based)
Scope 3: Purchased goods and services
Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)
Scope 3: Upstream transportation and distribution
Scope 3: Waste generated in operations
Scope 3: Business travel
Scope 3: Employee commuting
Scope 3: Downstream transportation and distribution
Scope 3: Use of sold products
Scope 3: End-of-life treatment of sold products
Scope 3: Downstream leased assets

Relevance of Scope 1 emissions from this source
Emissions excluded due to a recent acquisition or merger

Relevance of location-based Scope 2 emissions from this source
Relevance of market-based Scope 2 emissions from this source
Emissions excluded due to a recent acquisition or merger

Relevance of Scope 3 emissions from this source
Emissions excluded due to a recent acquisition or merger

Date of completion of acquisition or merger
November 28, 2022

Estimated percentage of total Scope 1+2 emissions this excluded source
represents
Estimated percentage of total Scope 3 emissions this excluded source
represents
Explain why this source is excluded
The data and information in this submission also do not incorporate PMI’s acquisition of
Swedish Match made at the end of 2022. Emissions related to this recent acquisition
represented 4.9 percent of PMI's total value chain emissions in 2022. PMI anticipates
this data to be fully included in our reporting by 2024.

Explain how you estimated the percentage of emissions this excluded source
represents

C6.5(C6.5) Account for your organization’s gross global Scope 3 emissions, disclosing
and explaining any exclusions.
123

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Purchased goods and services
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
3,003,490

Emissions calculation methodology
Supplier-specific method
Hybrid method
Average data method
Spend-based method
Fuel-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
68

Please explain
Includes emissions that are product-related (i.e., the materials purchased to make eachproduct) and those emissions non-product-related (i.e., everything else, officestationery, advertising etc.). More than half of this category has been calculated using
data received from our suppliers. The rest has been calculated based on material
weights sourced or spending and specific emissions factors for each of the materials
from international databases like BEIS (DEFRA) and Ecoinvent.

Capital goods
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
93,699.9

Emissions calculation methodology
Spend-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
Capital goods include emissions from goods that are used to manufacture/distribute
PMI’s products, or other office buildings and includes for example machinery, buildings
or facilities.

Fuel-and-energy-related activities (not included in Scope 1 or 2)
Evaluation status
124

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Relevant, calculated

Emissions in reporting year (metric tons CO2e)
86,259.6

Emissions calculation methodology
Average data method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
This category includes the emissions related to the production of fuels and electricity
consumed by PMI. i.e., for all fuel-related emissions calculated as its scope 1&2
emissions, such as associated emissions to extract gas, coal and oil, transport andprocess prior to combustion, and losses in supplying electricity. All these emissions areaccounted for in this category.

Upstream transportation and distribution
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)756,551.6

Emissions calculation methodology
Supplier-specific method
Hybrid method
Spend-based method
Distance-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
48

Please explain
This category includes emissions from all purchased (non-owned) transport anddistribution services. This includes inbound logistics, outbound logistics (i.e., soldproducts, if PMI has paid for/purchased the service) by land, sea and air freight,
transport between PMI facilities and energy consumed in third party warehouses.

Waste generated in operations
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
3,726.4
125

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Emissions calculation methodology
Waste-type-specific method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
This category includes emissions from the third-party disposal and treatment of waste
generated by PMI’s owned or controlled operations.

Business travel
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)42,509.2

Emissions calculation methodology
Supplier-specific method
Average data method
Distance-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
78

Please explain
This category includes estimates of emissions from the transportation of employees forbusiness-related activities in vehicles owned or operated by third parties. This includes
emissions generated by employees travelling by air, road, rail and boat. It also includes
the emissions due to stays in hotels.

Employee commuting
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)36,108.6

Emissions calculation methodology
Average data method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
126

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

This category includes emissions arising from the transportation of employees between
their homes and their worksites. Typically, this may include emissions from: automobile
travel, bus travel, rail travel, air travel and other modes including subway, cycling andwalking.

Upstream leased assets
Evaluation status
Not relevant, explanation provided

Please explain
This category includes emissions from the operation of assets that are owned by otherentities and leased to the reporting company (acting as a lessee) and are not alreadyincluded in scope 1 and 2.
PMI does lease some warehouse space from third parties with emissions that are notaccounted for in scope 1 and 2. However, this warehouse space is included within
category 4 – upstream transportation and distribution. The GHG Protocol refers totransportation and distribution, and for PMI the warehouses are part of the distribution
network, leading to its reporting combined with transportation. Therefore category 8 has
been excluded to avoid double counting.

Downstream transportation and distribution
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)46,381.5

Emissions calculation methodology
Distance-based method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
This category covers the transport of sold finished goods (FG) to the retailers and endconsumers. Transport relating to the end-consumer travelling to the retailer is generally
not included under value chain or product footprinting standards.
PMI fleet transportation is included in Scope 1&2 emissions; therefore, only non-PMI
fleet transport is included in this category. Any transport / storage of sold products paid
for by PMI is included in category 4, and excluded from this category.
Therefore, all transport distances input for Category 9 calculations should exclude PMIowned and operated transport (Scope 1 & 2) and any Third Party (TP) services
procured by PMI (Category 4). Some transport legs will have a mixture of two or three of127Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

these types of transport services, but Category 9 emissions relate to transport of soldgoods paid for by independent external parties only.

Processing of sold products
Evaluation status
Not relevant, explanation provided

Please explain
This category includes customer’s emissions relating to the processing of intermediate
products sold by a reporting company, such as the conversion of aluminum ingots into
aluminum injection molded products.
This category was reviewed in 2018 and it has been concluded that PMI sold only final
products to end-users, and no intermediate products which could be further processed,transformed or included into other products, therefore this category has been excluded.

Use of sold products
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)
106,498.8

Emissions calculation methodology
Methodology for direct use phase emissions, please specify
The direct impact of consumer use of PMI’s products (category 11) primarily comesfrom the electricity used in charging PMI’s smoke free products
Methodology for indirect use phase emissions, please specify
The indirect impact of consumer use of PMI’s products (category 11) primarily
comes from lighters to light the cigarette.

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
22

Please explain
This category refers to emissions from the use of goods and services sold by PMI to end
users, i.e., consumers that use these final products. Emissions from the P1 SFP productare predominantly caused by the electrical charging of the product. This category also
includes emissions arising from the use of lighters with conventional cigarettes, cigars
and Other Tobacco Products (OTP).

End of life treatment of sold products
Evaluation status
Relevant, calculated

Emissions in reporting year (metric tons CO2e)128

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

82,050.6

Emissions calculation methodology
Average data method

Percentage of emissions calculated using data obtained from suppliers orvalue chain partners
0Please explain
This category refers to emissions from the waste disposal and treatment of products
sold by PMI at the end of their life (EoL).

Downstream leased assets
Evaluation status
Not relevant, explanation provided

Please explain
To act as a guideline to determine which scope 3 categories should be excluded, PMI
has defined a suitable level of de minimis of 0.2% to guide inclusion/exclusion decisions.
While PMI does lease some office floor-space in certain offices around the world, thishas been confirmed as extremely small, and regarded as de minimis, therefore thiscategory has been excluded.

Franchises
Evaluation status
Not relevant, explanation provided

Please explain
Whilst PMI pays other entities to manufacture finished goods (accounted for in category1a) from materials purchased by PMI (also accounted for in category 1a), as ownershipof finished goods always returns to PMI, there are no examples of franchise operations
to account for, therefore this category has been excluded.

Investments
Evaluation status
Not relevant, explanation provided

Please explain
Emissions associated with investments were estimated based on each of the investeeorganizations (full value chain), allocating the emissions to PMI based on ownershipshare, and eliminating any double counting if the emissions are already reported
elsewhere.
Investments related emissions are beyond our level of de minimis (0.2%), neverthelessare currently excluded from the value chain inventory as their contribution to PMI’s
scope 3 emissions are below materiality threshold (<10%).
These emissions are closely monitored and calculated yearly to validate that they are
129

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

still below materiality and based on 2022 exercise emissions related to Investments
represents around 1% of total scope 3 emissions.

Other (upstream)
Evaluation status
Not relevant, explanation provided

Please explain
There are currently no other (upstream) emissions.

Other (downstream)
Evaluation status
Not relevant, explanation provided

Please explain
There are currently no other (downstream) emissions.

C6.5a(C6.5a) Disclose or restate your Scope 3 emissions data for previous years.
Past year 1
Start date
January 1, 2020

End date
December 31, 2020

Scope 3: Purchased goods and services (metric tons CO2e)2,875,624

Scope 3: Capital goods (metric tons CO2e)
98,593

Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)(metric tons CO2e)87,113

Scope 3: Upstream transportation and distribution (metric tons CO2e)505,414

Scope 3: Waste generated in operations (metric tons CO2e)
4,825

Scope 3: Business travel (metric tons CO2e)17,265

Scope 3: Employee commuting (metric tons CO2e)130

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

35,024

Scope 3: Upstream leased assets (metric tons CO2e)0

Scope 3: Downstream transportation and distribution (metric tons CO2e)50,510

Scope 3: Processing of sold products (metric tons CO2e)0

Scope 3: Use of sold products (metric tons CO2e)100,072

Scope 3: End of life treatment of sold products (metric tons CO2e)
79,583

Scope 3: Downstream leased assets (metric tons CO2e)0

Scope 3: Franchises (metric tons CO2e)0

Scope 3: Investments (metric tons CO2e)0

Scope 3: Other (upstream) (metric tons CO2e)0

Scope 3: Other (downstream) (metric tons CO2e)0

Comment
In line with the GHG protocol, PMI has a recalculation policy. Our threshold forrecalculation is +/- 5% for Scope 1 and 2 and 10% for Scope 3, which can be triggeredby multiple factors including organizational changes, or changes in the methodology, or
identification of reporting errors, whose impact is significant. PMI also utilizes the +/- 5%
to define materiality, in line with SBTi recommendations, and applies it when
determining exclusions.
In 2022, we further improved our carbon footprint model and data accuracy;
improvements relate to, for example, increased coverage of primary data collected fromdirect materials suppliers and integration of emissions related to fleet purchase. Even
though this impact was below our recalculation policy we integrated these
improvements, and this led to previous years, in this case 2020, being restatedaccordingly.

Past year 2
Start date
January 1, 2021
131

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

End date
December 31, 2021

Scope 3: Purchased goods and services (metric tons CO2e)2,698,160

Scope 3: Capital goods (metric tons CO2e)
106,161

Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)(metric tons CO2e)95,277

Scope 3: Upstream transportation and distribution (metric tons CO2e)560,779

Scope 3: Waste generated in operations (metric tons CO2e)4,255

Scope 3: Business travel (metric tons CO2e)17,406

Scope 3: Employee commuting (metric tons CO2e)32,981

Scope 3: Upstream leased assets (metric tons CO2e)0

Scope 3: Downstream transportation and distribution (metric tons CO2e)48,260

Scope 3: Processing of sold products (metric tons CO2e)0

Scope 3: Use of sold products (metric tons CO2e)
105,286

Scope 3: End of life treatment of sold products (metric tons CO2e)80,420

Scope 3: Downstream leased assets (metric tons CO2e)0

Scope 3: Franchises (metric tons CO2e)0

Scope 3: Investments (metric tons CO2e)0

Scope 3: Other (upstream) (metric tons CO2e)0132Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 3: Other (downstream) (metric tons CO2e)0

Comment
In line with the GHG protocol, PMI has a recalculation policy. Our threshold forrecalculation is +/- 5% for Scope 1 and 2 and 10% for Scope 3, which can be triggeredby multiple factors including organizational changes, or changes in the methodology, or
identification of reporting errors, whose impact is significant. PMI also utilizes the +/- 5%
to define materiality, in line with SBTi recommendations, and applies it when
determining exclusions.
In 2022, we further improved our carbon footprint model and data accuracy;
improvements relate to, for example, increased coverage of primary data collected fromdirect materials suppliers and integration of emissions related to fleet purchase. Even
though this impact was below our recalculation policy we integrated these
improvements, and this led to previous years, in this case 2021, being restatedaccordingly.

C-AC6.8/C-FB6.8/C-PF6.8(C-AC6.8/C-FB6.8/C-PF6.8) Is biogenic carbon pertaining to your direct operations
relevant to your current CDP climate change disclosure?
Yes

C-AC6.8a/C-FB6.8a/C-PF6.8a(C-AC6.8a/C-FB6.8a/C-PF6.8a) Account for biogenic carbon data pertaining to yourdirect operations and identify any exclusions.
CO2 emissions from biofuel combustion (processing/manufacturing machinery)Emissions (metric tons CO2)
8,208.6

Methodology
Default emissions factors

Please explain
These are biogenic emission for the consumption of biomass in our factories. The
emission factor used come from DEFRA2022 database.

CO2 emissions from biofuel combustion (other)
Emissions (metric tons CO2)
761.6

Methodology
Default emissions factors

Please explain
133

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

These are biogenic emission for the consumption of biodiesel and bioethanol in our
fleet. The emission factor used come from DEFRA2022 database.

C-AC6.9/C-FB6.9/C-PF6.9(C-AC6.9/C-FB6.9/C-PF6.9) Do you collect or calculate greenhouse gas emissions foreach commodity reported as significant to your business in C-AC0.7/FB0.7/PF0.7?

Agricultural commodities
TobaccoDo you collect or calculate GHG emissions for this commodity?
Yes

Reporting emissions by
Total

Emissions (metric tons CO2e)
887,811

Denominator: unit of production
Change from last reporting year
HigherPlease explain
In 2022, emissions in our tobacco supply chain increased by 83,687 tCO2e. Our total
emissions in the previous year were 804,124 tCO2e, resulting in a 10% increase. This
increase was linked to unforeseen challenges faced in 2022 due to unfavorable
business conditions and the execution of business continuity plans. For example, we
had to put plans in place to mitigate the adverse impact of supply chain disruption andgeopolitical shifts resulting from the war in Ukraine. Some of these decisions demandedchanges that resulted in unavoidable trade-offs which, while ensuring security of supply
and business continuity, compromised natural capital. These included for example
change in sourcing, purchasing more tobacco from geographies with higher carbon
footprints.
Total emissions for tobacco include all activities performed and inputs used by farmers
and related to tobacco seedling production, fertilizers, pesticides, transport,mechanization and curing. A significant percentage of the total GHG emissions
attributed to our tobacco purchases result from the curing process of Virginia flue-cured
tobacco. With our Renewable Curing Fuel program, we have focused on minimizing therisk by supporting a sustainable firewood sourcing system validated by the application of
an internal protocol and also the shift from use of non-renewable fuel to biomass that is
audited on a yearly basis by a third party. Overall, the audit results recognize
compliance for the contracted Virginia flue cured tobacco volume purchased by PMI in
2022. Compared to our 2019 baseline, in 2022 we have reached 56.9% CO2e intensity
134Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

reduction in emissions from curing. The efforts on the ground with our suppliers and thestrong assurance process we carry out on a yearly basis allowed to validate that 100%of our standard flue cured tobacco in 2022 was purchased at no risk of deforestation ofprimary and protected forests bringing the risk for land use change related to tobacco
curing to the minimum.

Explain why you do not calculate GHG emission for this commodity and yourplans to do so in the future

Agricultural commodities
Timber

Do you collect or calculate GHG emissions for this commodity?
Yes

Reporting emissions by
Total

Emissions (metric tons CO2e)909,446

Denominator: unit of production
Change from last reporting year
HigherPlease explain
In 2022, we accounted for 909,446 tCO2e of emissions originating from timber that ispart of our supply chain, more than 95% of which came from our timber-based materials
supply chain and the remainder from the timber based curing fuels for our tobacco leaf
supply chain. In 2022 timber related emissions increased by 11% versus the previous
year. This was linked to unforeseen challenges faced in 2022 due to unfavorable
business conditions and the execution of business continuity plans. For example, we
had to put plans in place to mitigate the adverse impact of supply chain disruption andgeopolitical shifts resulting from the war in Ukraine. Some of these decisions demandedchanges that resulted in unavoidable trade-offs which, while ensuring security of supply
and business continuity, compromised natural capital. These included for example,
purchasing additional materials as part of business continuity plans to build up our stockof raw materials and semifinished products to ensure finished products were available inspecific markets. We keep engaging with other direct materials suppliers using timber as
raw material and inviting them to participate in our CDP supply chain; we collect primarydata (e.g., emissions allocated) and collaborate with them to reduce carbon footprint. In
the tobacco leaf supply chain, we could reduce the curing emissions related to timbermaterials by more than 50% from our 2019 baseline proving that the firewood used by

135

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

our farmers is sustainable and therefore does not cause land use change of forest
degradation consequently lowering significantly the emissions for the whole process.

Explain why you do not calculate GHG emission for this commodity and yourplans to do so in the future

C6.10(C6.10) Describe your gross global combined Scope 1 and 2 emissions for thereporting year in metric tons CO2e per unit currency total revenue and provide any
additional intensity metrics that are appropriate to your business operations.

Intensity figure
0.0000107072

Metric numerator (Gross global combined Scope 1 and 2 emissions, metrictons CO2e)
340,084

Metric denominator
unit total revenue

Metric denominator: Unit total
31,762,000,000

Scope 2 figure used
Market-based% change from previous year
9.86

Direction of change
Decreased

Reason(s) for change
Other emissions reduction activities

Please explain
The decrease in our Scope 1 and 2 emissions in 2022 is a result of the reduction
initiatives as reported in question C4.3b.
Namely the reasons for change are the decrease in absolute CO2e emissions by
8.8%% from 373,040 tons in 2021 to 340,084 tons in 2022, driven by nearly 90 carbon
reduction activities in our manufacturing facilities including on-site renewable projects
and energy efficiency projects. In 2022 more than 60 projects related to production
process efficiency were implemented across our manufacturing sites such as more
efficient compressed air systems, process automation eliminating losses, waste heat136

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

recovery, etc. which yielded more than 4,300 tons of CO2 reduction per year; in addition
to increased green electricity sourcing.
The term “net revenues” refers to operating revenues from the sale of our products,
excluding excise taxes, and net of sales and promotion incentives. We believe that themost appropriate basis of disclosure is net revenue (as defined) and in line with CDP
guidance.

C7. Emissions breakdowns
C7.1(C7.1) Does your organization break down its Scope 1 emissions by greenhouse gas
type?
Yes

C7.1a
(C7.1a) Break down your total gross global Scope 1 emissions by greenhouse gas
type and provide the source of each used greenhouse warming potential (GWP).
Greenhousegas

Scope 1 emissions (metric tons of
CO2e)

GWP ReferenceCO2

296,419.96

IPCC Fourth Assessment Report (AR4 100 year)

CH4

413.77IPCC Fourth Assessment Report (AR4 100 year)

N2O

768.36IPCC Fourth Assessment Report (AR4 100 year)

C7.2(C7.2) Break down your total gross global Scope 1 emissions by country/area/region.
Country/area/region

Scope 1 emissions (metric tons CO2e)

Albania

95.41

Algeria492.43

Argentina

7,885.94

Armenia118.24Australia

351.64

Bangladesh

18.45

Bosnia & Herzegovina

105.86

Brazil

4,719.5

137

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Bulgaria

141.99Canada1,286.9

Chile

42.84

China

30.06

Hong Kong SAR, China

15.76

China, Macao Special Administrative Region

0.35

Colombia

573.98

Costa Rica

476.36

Croatia249.82

Czechia

4,063.67

Denmark

192.3

Dominican Republic

796.56

Ecuador514.62Egypt

475.69El Salvador

61.93

Finland44.91

France1,179.76

Georgia

157.4

Germany

15,978.38

Greece10,095.78

Guatemala165.52

Hungary944.66

India

49.78

Indonesia

28,139.69

Italy

31,831.2

Jamaica

2.97

Japan

3,119.79

Jordan308.36

Kazakhstan

3,907.78

Kuwait32.2

Lebanon

45.39

Malaysia

10,394.83

Mexico5,098.98

Morocco269.03

Netherlands

27,440138

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Lithuania

1,279.04

New Zealand

128.15

Nicaragua

50.13

Norway21.96

Pakistan

4,558.75

Panama43.9

Paraguay

27.14

Peru

41.69

Philippines

18,605.57

Poland14,225.51

Republic of Korea

8,475.71

Republic of Moldova

94.19

Réunion84.54

Romania

13,980.29

Russian Federation

27,183.22

Senegal879.23

Serbia4,876Singapore

198.66

Slovakia

386.83

Slovenia

90.5

South Africa

975.58Spain

886.59Sweden308.17

Switzerland

3,837.88

Taiwan, China

136.7

North Macedonia

81.66

Thailand

1,189.95

Tunisia185.51

Turkey20,423.76

Ukraine1,859.09

United Arab Emirates

507.36

United Kingdom of Great Britain and Northern Ireland

637.77

Uruguay

14.8

Venezuela (Bolivarian Republic of)

4.18

Viet Nam

101.73139

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

United States of America

1,914.76

Israel926.16

Portugal

5,755.45

Nigeria

22.23

Aruba

12.78

Belgium

585.87

Curaçao

26.91

Estonia18.18

Latvia23.15

Luxembourg

18.15

C7.3
(C7.3) Indicate which gross global Scope 1 emissions breakdowns you are able toprovide.
By activity

C7.3c(C7.3c) Break down your total gross global Scope 1 emissions by business activity.
Activity

Scope 1 emissions (metric tons CO2e)

Manufacturing

214,483.23

Offices and Warehouses

3,575.39

Company's fleet

79,543.47

C-AC7.4/C-FB7.4/C-PF7.4(C-AC7.4/C-FB7.4/C-PF7.4) Do you include emissions pertaining to your businessactivity(ies) in your direct operations as part of your global gross Scope 1 figure?
Yes

C-AC7.4b/C-FB7.4b/C-PF7.4b(C-AC7.4b/C-FB7.4b/C-PF7.4b) Report the Scope 1 emissions pertaining to yourbusiness activity(ies) and explain any exclusions. If applicable, disaggregate youragricultural/forestry by GHG emissions category.

Activity
Processing/Manufacturing

Emissions (metric tons CO2e)140

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

214,483.23

Methodology
Default emissions factor

Please explain
This category regroups all activities related to manufacturing.
The emission factor used come from DEFRA2022 database.

Activity
Distribution

Emissions (metric tons CO2e)83,118.86

Methodology
Default emissions factor

Please explain
This category regroups all activities related to distribution (including offices, warehouses
and company's fleet).
The emission factor used come from DEFRA2022 database.

C7.5(C7.5) Break down your total gross global Scope 2 emissions by country/area/region.
Country/area/region

Scope 2, location-based(metric tons CO2e)

Scope 2, market-based(metric tons CO2e)

Albania

28.25

28.25

Algeria

21.52

21.52

Argentina

7,106.42

285.12

Armenia

7.71

7.71

Aruba

21.25

21.25

Australia

281.31

281.31

Austria

11.84

11.84

Lithuania

3,453.56

24.24

Bangladesh

14.39

14.39

Netherlands

9,238.09

0Bosnia & Herzegovina

76.55

76.55

Brazil

1,493.48

19.92

Bulgaria

63.99

63.99

141

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Canada1,684.57

329.58

Chile

10.13

10.13

China

29.29

29.29

Colombia252.03252.03

Costa Rica

0.98

0.98

Croatia33.62

0Curaçao

38.3

38.3

Czechia

10,867.3

98.64

Denmark

8.15

8.15

Dominican Republic

194.25194.25

Ecuador

61.99

61.99

Egypt

37.1

37.1

El Salvador

4.86

4.86

Finland1.37

0France

11.45

11.45

Georgia

6.08

6.08

Germany

7,001.47

461.68Greece11,171.29

0Guatemala

22.14

22.14

Hong Kong SAR, China

251.84251.84

Hungary

62.87

62.87

India

122.69122.69Indonesia

81,486.37

0Israel343.58343.58Italy

18,468.55

0Jamaica

4.88

4.88

Japan

212.07109.09Jordan1,377.6

0

Kazakhstan

6,407.66

758.38

Republic of Korea

14,021.19

137.04

Kuwait

24.27

24.27

Lebanon

40.1

40.1

China, Macao Special Administrative
Region

1.47

1.47

Malaysia

7,438.17

148.76142

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Mexico12,612.7

529.93

Republic of Moldova

20.16

20.16

Morocco

53.12

53.12

New Zealand

8.34

0

Nicaragua

3.84

3.84

Nigeria

8.72

8.72

Norway5.55

5.55

Pakistan

2,754.27

195.78

Panama4.77

4.77

Paraguay

23.62

23.62

Peru

6.17

6.17

Philippines

32,358.88

2,336.76

Poland44,754.29

3,930.53

Portugal

4,133.15

0Romania

10,161.95

58.28

Senegal2,274.59

48.31

Serbia16,990.56

101.92Singapore

1,472.76

1,472.76

Slovakia

6.91

6.91

Slovenia

48.07

28.61

South Africa

2,578.2

239.93

Spain

87.09

87.09

Sweden

10.49

9.25

Switzerland

954.52

55.72

Thailand

62.04

62.04

Tunisia

23.05

23.05

Turkey15,072.86

324.42

Ukraine1,260.76

1,260.76

United Arab Emirates

137.19137.19

United Kingdom of Great Britain andNorthern Ireland

53.68

53.68

Uruguay

0.26

0.26

United States of America

472.97472.97

Viet Nam

25.58

25.58

Russian Federation

26,224.69

26,224.69

143

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Taiwan, China

140.08140.08Venezuela (Bolivarian Republic of)

55.52

5.76

North Macedonia

19.3

19.3

Réunion

38.42

38.42

Belgium

26.22

26.22

Estonia

5.97

5.97

Latvia4.99

4.99

Luxembourg

0.44

0.44

United Republic of Tanzania

0.61

0.61

C7.6
(C7.6) Indicate which gross global Scope 2 emissions breakdowns you are able toprovide.
By activity

C7.6c(C7.6c) Break down your total gross global Scope 2 emissions by business activity.
Activity

Scope 2, location-based (metrictons CO2e)

Scope 2, market-based (metrictons CO2e)

Manufacturing333,552.61

27,909.04

Offices andWarehouses

24,922.78

14,572.83

C7.7(C7.7) Is your organization able to break down your emissions data for any of thesubsidiaries included in your CDP response?
Yes

C7.7a
(C7.7a) Break down your gross Scope 1 and Scope 2 emissions by subsidiary.

Subsidiary nameMassalin Particulares S.R.L.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
144

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)7,146.4

Scope 2, location-based emissions (metric tons CO2e)
6,821.3

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing facilities & fleet emissions.

Subsidiary namePhilip Morris Brasil Industria e Comercio Ltda.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity

145

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
2,867.46

Scope 2, location-based emissions (metric tons CO2e)
1,473.56

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing facility & fleet emissions.

Subsidiary nameRothmans, Benson & Hedges Inc.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code

146

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
1,286.91

Scope 2, location-based emissions (metric tons CO2e)
1,684.57

Scope 2, market-based emissions (metric tons CO2e)329.58Comment
These emissions correspond to manufacturing, offices & fleet emissions.

Subsidiary namePhilip Morris Products S.A.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)976.65147

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 2, location-based emissions (metric tons CO2e)329.19

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing emissions.

Subsidiary namePhilip Morris CR a.s.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
ISIN code - equity

ISIN code – bond
ISIN code – equity
CS0008418869

CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
4,063.68

Scope 2, location-based emissions (metric tons CO2e)
10,867.3

Scope 2, market-based emissions (metric tons CO2e)
98.64

Comment
These emissions correspond to manufacturing, offices, warehouses & fleet emissions.
148

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Subsidiary namef6 Cigarettenfabrik GmbH & Co.KG

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)389.95

Scope 2, location-based emissions (metric tons CO2e)
2,054.36

Scope 2, market-based emissions (metric tons CO2e)
79.29

Comment
These emissions correspond to manufacturing emissions.

Subsidiary namePhilip Morris Manufacturing GmbHPrimary activity
Tobacco products

149

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
13,708.11

Scope 2, location-based emissions (metric tons CO2e)4,324.64

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing emissions.

Subsidiary name
Papastratos Cigarettes Manufacturing Company Single Member S.A.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity

150

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
10,095.79

Scope 2, location-based emissions (metric tons CO2e)
11,171.29

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing facility, offices, warehouses & fleet
emissions.

Subsidiary name
PT Sampoerna Indonesia Sembilan

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code151

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
19.05

Scope 2, location-based emissions (metric tons CO2e)671.99

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing emissions.

Subsidiary namePT Hanjaya Mandala Sampoerna Tbk.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
ISIN code - equity

ISIN code – bond
ISIN code – equity
ID1000074008

CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier

152

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 1 emissions (metric tons CO2e)13,950.63

Scope 2, location-based emissions (metric tons CO2e)
72,023.26

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing facilities & fleet emissions.

Subsidiary namePhilip Morris Manufacturing & Technology Bologna S.p.A.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)29,371.58

Scope 2, location-based emissions (metric tons CO2e)18,165.13

Scope 2, market-based emissions (metric tons CO2e)0153Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Comment
These emissions correspond to manufacturing facilities & fleet emissions.

Subsidiary namePhilip Morris Investments B.V./Jordan Ltd.Co.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)308.36

Scope 2, location-based emissions (metric tons CO2e)
1,377.6

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing, offices & fleet emissions.

Subsidiary namePhilip Morris Korea Inc.

154

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)8,475.75

Scope 2, location-based emissions (metric tons CO2e)
14,021.19

Scope 2, market-based emissions (metric tons CO2e)
137.04

Comment
These emissions correspond to manufacturing facility, offices, retail stores & fleet
emissions.

Subsidiary namePhilip Morris Kazakhstan LLP

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
155

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
3,907.79

Scope 2, location-based emissions (metric tons CO2e)6,407.65

Scope 2, market-based emissions (metric tons CO2e)758.37

Comment
These emissions correspond to manufacturing facility, offices, warehouses, retail stores& fleet emissions.

Subsidiary name
UAB Philip Morris Lietuva

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number

156

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
1,130.2

Scope 2, location-based emissions (metric tons CO2e)3,429.32

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing emissions.

Subsidiary namePhilip Morris Mexico Productos Y Servicios, Sociedad de Responsabilidad Limitada deCapital Variable

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
157

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Other unique identifier
Scope 1 emissions (metric tons CO2e)
3,137.72

Scope 2, location-based emissions (metric tons CO2e)
12,082.75

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing facility & fleet emissions.

Subsidiary namePhilip Morris (Malaysia) Sdn. Bhd.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)10,394.83

158

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 2, location-based emissions (metric tons CO2e)7,438.17

Scope 2, market-based emissions (metric tons CO2e)148.76

Comment
These emissions correspond to manufacturing facility, offices & fleet emissions.

Subsidiary name
PHILIP MORRIS INVESTMENTS B.V.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)26,990.524

Scope 2, location-based emissions (metric tons CO2e)9,238.09

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing emissions.
159

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Subsidiary name
PMFTC Inc.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)8,239.5

Scope 2, location-based emissions (metric tons CO2e)
30,022.12

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing facilities & fleet emissions.

Subsidiary namePhilip Morris (Pakistan) Limited

Primary activity
Tobacco products

160

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)4,558.75

Scope 2, location-based emissions (metric tons CO2e)
2,754.27

Scope 2, market-based emissions (metric tons CO2e)195.78Comment
These emissions correspond to manufacturing, offices, warehouses & fleet emissions.

Subsidiary namePhilip Morris Polska Społka Akcyjna

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity

161

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
9,877.646

Scope 2, location-based emissions (metric tons CO2e)42,665.78

Scope 2, market-based emissions (metric tons CO2e)
1,842.02

Comment
These emissions correspond to manufacturing emissions.

Subsidiary name
Tabaqueira - Empresa Industrial de Tabacos, S.A.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code

162

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)4,169.72

Scope 2, location-based emissions (metric tons CO2e)3,999.03

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing facility & fleet emissions.

Subsidiary namePhilip Morris Romania S.R.L.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)13,295.67
163

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 2, location-based emissions (metric tons CO2e)10,103.68

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing facility & fleet emissions.

Subsidiary namePhilip Morris Operations a.d. Nis

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)4,502.8

Scope 2, location-based emissions (metric tons CO2e)
16,888.64

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing facility & fleet emissions.
164

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Subsidiary name
AO Philip Morris Izhora

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)23,242.137

Scope 2, location-based emissions (metric tons CO2e)24,966.16

Scope 2, market-based emissions (metric tons CO2e)24,966.16

Comment
These emissions correspond to manufacturing facilities & fleet emissions.

Subsidiary namePhilip Morris Manufacturing Senegal S.A.R.L.

Primary activity
Tobacco products

165

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)306.81

Scope 2, location-based emissions (metric tons CO2e)2,226.28

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing facility & fleet emissions.

Subsidiary namePhilip Morris Tutun Mamulleri Sanayi ve Ticaret A.S.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity

166

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)18,591.09

Scope 2, location-based emissions (metric tons CO2e)
14,748.44

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing facility & fleet emissions.

Subsidiary name
PRJSC Philip Morris Ukraine

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code

167

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)582.18

Scope 2, location-based emissions (metric tons CO2e)
1,021.59

Scope 2, market-based emissions (metric tons CO2e)
1,021.59

Comment
These emissions correspond to manufacturing facility & fleet emissions.

Subsidiary name
C.A. Tabacalera Nacional

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
4.18
168

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 2, location-based emissions (metric tons CO2e)
55.52

Scope 2, market-based emissions (metric tons CO2e)
5.76

Comment
These emissions correspond to manufacturing, offices & fleet emissions.

Subsidiary nameLeonard Dingler (Proprietary) Limited

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)257.72

Scope 2, location-based emissions (metric tons CO2e)2,338.27

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to manufacturing facility & fleet emissions.
169

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Subsidiary namePhilip Morris Albania Sh.p.k.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
95.41

Scope 2, location-based emissions (metric tons CO2e)28.25

Scope 2, market-based emissions (metric tons CO2e)
28.25

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Algeria Sarl

Primary activity
Tobacco products

170

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)492.43

Scope 2, location-based emissions (metric tons CO2e)
21.52

Scope 2, market-based emissions (metric tons CO2e)
21.52

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary name
PMI Argentina Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity

171

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)739.53

Scope 2, location-based emissions (metric tons CO2e)285.12

Scope 2, market-based emissions (metric tons CO2e)285.12

Comment
These emissions correspond to offices, warehouses & fleet emissions. Emission related
data is collected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Armenia Limited Liability Company

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
172

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)118.24

Scope 2, location-based emissions (metric tons CO2e)
7.71

Scope 2, market-based emissions (metric tons CO2e)
7.71

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary nameSuperior Tobacco Co N.V.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier

173

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 1 emissions (metric tons CO2e)
12.78

Scope 2, location-based emissions (metric tons CO2e)
21.25

Scope 2, market-based emissions (metric tons CO2e)
21.25

Comment
These emissions correspond to offices, warehouses & fleet emissions.

Subsidiary name
PMI Australia Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)351.64

Scope 2, location-based emissions (metric tons CO2e)281.31

Scope 2, market-based emissions (metric tons CO2e)281.31
174

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Austria GmbHPrimary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)0

Scope 2, location-based emissions (metric tons CO2e)
11.84

Scope 2, market-based emissions (metric tons CO2e)
11.84

Comment
These emissions correspond to offices emissions.

Subsidiary name175

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Philip Morris Bangladesh Limited

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
18.45

Scope 2, location-based emissions (metric tons CO2e)
14.39

Scope 2, market-based emissions (metric tons CO2e)
14.39

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Benelux B.V.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

176

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)585.87

Scope 2, location-based emissions (metric tons CO2e)
26.22

Scope 2, market-based emissions (metric tons CO2e)
26.22

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris BH d.o.o. za trgovinu Sarajevo

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number

177

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)105.86

Scope 2, location-based emissions (metric tons CO2e)76.55

Scope 2, market-based emissions (metric tons CO2e)
76.55

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary name
PMI Brazil Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number

178

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Other unique identifier
Scope 1 emissions (metric tons CO2e)
1,852.04

Scope 2, location-based emissions (metric tons CO2e)
19.92

Scope 2, market-based emissions (metric tons CO2e)
19.92

Comment
These emissions correspond to offices, warehouses & fleet emissions. Emission related
data is collected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Bulgaria EOOD

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)141.99

Scope 2, location-based emissions (metric tons CO2e)179

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

63.99

Scope 2, market-based emissions (metric tons CO2e)
63.99

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Chile Comercializadora Limitada

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
42.84

Scope 2, location-based emissions (metric tons CO2e)
10.12

Scope 2, market-based emissions (metric tons CO2e)
10.12

Comment
These emissions correspond to offices, warehouses & fleet emissions.

180

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Subsidiary name
PMI China Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
30.06

Scope 2, location-based emissions (metric tons CO2e)29.29

Scope 2, market-based emissions (metric tons CO2e)
29.29

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary name
PMI Colombia Market

Primary activity
181

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)573.98

Scope 2, location-based emissions (metric tons CO2e)252.03

Scope 2, market-based emissions (metric tons CO2e)252.03

Comment
These emissions correspond to offices, warehouses & fleet emissions. Emission related
data is collected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Costa Rica, Sociedad Anonima

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond

182

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)476.36

Scope 2, location-based emissions (metric tons CO2e)
0.98

Scope 2, market-based emissions (metric tons CO2e)
0.98

Comment
These emissions correspond to offices, warehouses & fleet emissions.

Subsidiary namePhilip Morris Zagreb d.o.o. za vanjsku i unutarnju trgovinu

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol

183

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)249.82

Scope 2, location-based emissions (metric tons CO2e)
33.62

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary nameSuperior Tobacco Company Curacao N.V.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier

184

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 1 emissions (metric tons CO2e)
26.91

Scope 2, location-based emissions (metric tons CO2e)
38.3

Scope 2, market-based emissions (metric tons CO2e)
38.3

Comment
These emissions correspond to offices, warehouses & fleet emissions. Emissions
related to PMI Curacao Market.

Subsidiary namePhilip Morris ApS

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
192.3

Scope 2, location-based emissions (metric tons CO2e)
8.15

Scope 2, market-based emissions (metric tons CO2e)185

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

8.15

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Dominicana, S.A.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)796.56

Scope 2, location-based emissions (metric tons CO2e)
194.25

Scope 2, market-based emissions (metric tons CO2e)
194.25

Comment
These emissions correspond to offices, warehouses & fleet emissions.

Subsidiary name186

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

PMI Ecuador Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)514.62

Scope 2, location-based emissions (metric tons CO2e)62

Scope 2, market-based emissions (metric tons CO2e)62

Comment
These emissions correspond to offices, warehouses & fleet emissions. Emission related
data is collected and reported on country level (not subsidiary level).

Subsidiary name
PMI Egypt Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier
187

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)475.69

Scope 2, location-based emissions (metric tons CO2e)
37.1

Scope 2, market-based emissions (metric tons CO2e)
37.1

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris El Salvador Sociedad Anonima de Capital Variable

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
188

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
61.93

Scope 2, location-based emissions (metric tons CO2e)
4.86

Scope 2, market-based emissions (metric tons CO2e)
4.86

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Eesti Osauhing

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code

189

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
18.18

Scope 2, location-based emissions (metric tons CO2e)
5.97

Scope 2, market-based emissions (metric tons CO2e)
5.97

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Finland Oy

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
44.91
190

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 2, location-based emissions (metric tons CO2e)
1.37

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris France S.A.S.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
1,179.76

Scope 2, location-based emissions (metric tons CO2e)
11.45

Scope 2, market-based emissions (metric tons CO2e)
11.45

Comment
These emissions correspond to offices & fleet emissions.
191

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Subsidiary name
Limited Liability Company Philip Morris Georgia

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
157.4

Scope 2, location-based emissions (metric tons CO2e)
6.08

Scope 2, market-based emissions (metric tons CO2e)
6.08

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris GmbHPrimary activity
Tobacco products

192

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
1,880.32

Scope 2, location-based emissions (metric tons CO2e)622.47

Scope 2, market-based emissions (metric tons CO2e)382.39Comment
These emissions correspond to offices & fleet emissions.

Subsidiary nameTabacalera Centroamericana Sociedad Anonima

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity

193

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)165.52

Scope 2, location-based emissions (metric tons CO2e)
22.14

Scope 2, market-based emissions (metric tons CO2e)
22.14

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePMI Hong Kong Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code194

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
15.76

Scope 2, location-based emissions (metric tons CO2e)251.84

Scope 2, market-based emissions (metric tons CO2e)251.84

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Hungary Cigarette Trading Ltd.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
195

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

944.66

Scope 2, location-based emissions (metric tons CO2e)62.87

Scope 2, market-based emissions (metric tons CO2e)62.87

Comment
These emissions correspond to offices, warehouses & fleet emissions.

Subsidiary name
PMI India Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
49.78

Scope 2, location-based emissions (metric tons CO2e)122.69

Scope 2, market-based emissions (metric tons CO2e)122.69196

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary name
PMI Indonesia Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
14,170.02

Scope 2, location-based emissions (metric tons CO2e)
8,791.11

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to offices, warehouses & fleet emissions. Emission related
data is collected and reported on country level (not subsidiary level).

197

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Subsidiary namePhilip Morris Ltd

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)926.16

Scope 2, location-based emissions (metric tons CO2e)343.58

Scope 2, market-based emissions (metric tons CO2e)343.58Comment
These emissions correspond to offices, warehouses & fleet emissions.

Subsidiary name
PMI Italy Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier
198

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)2,459.62

Scope 2, location-based emissions (metric tons CO2e)303.43

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Jamaica Limited

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
199

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
2.97

Scope 2, location-based emissions (metric tons CO2e)
4.88

Scope 2, market-based emissions (metric tons CO2e)
4.88

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Japan Godo-Kaisha

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code

200

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
3,119.79

Scope 2, location-based emissions (metric tons CO2e)
212.07

Scope 2, market-based emissions (metric tons CO2e)109.09Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Kuwait Company W.L.L.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
32.2
201

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 2, location-based emissions (metric tons CO2e)
24.27

Scope 2, market-based emissions (metric tons CO2e)
24.27

Comment
These emissions correspond to offices & fleet emissions. Emissions related to PMI
Kuwait Market. Emission related data is collected and reported on country level (notsubsidiary level).

Subsidiary name
SIA Philip Morris Latvia

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
23.15

Scope 2, location-based emissions (metric tons CO2e)
4.99

Scope 2, market-based emissions (metric tons CO2e)
4.99
202

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Management Services (Middle East) Limited (Lebanon branch)Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)45.38

Scope 2, location-based emissions (metric tons CO2e)
40.1

Scope 2, market-based emissions (metric tons CO2e)
40.1

Comment
These emissions correspond to offices & fleet emissions. Emissions related to PMI
Lebanon Market. Emission related data is collected and reported on country level (notsubsidiary level).

203

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Subsidiary name
PMI Lithuania Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)148.85

Scope 2, location-based emissions (metric tons CO2e)
24.24

Scope 2, market-based emissions (metric tons CO2e)
24.24

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Luxembourg S.a.r.l.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
204

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
18.15

Scope 2, location-based emissions (metric tons CO2e)
0.44

Scope 2, market-based emissions (metric tons CO2e)
0.44

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Asia Limited

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity

205

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
0.35

Scope 2, location-based emissions (metric tons CO2e)
1.47

Scope 2, market-based emissions (metric tons CO2e)
1.47

Comment
These emissions correspond to offices & fleet emissions. Emissions related to PMIMacau Market. Emission related data is collected and reported on country level (notsubsidiary level).

Subsidiary namePhilip Morris Tutunski Kombinat Prilep LLC Skopje

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol

206

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
81.66

Scope 2, location-based emissions (metric tons CO2e)
19.3

Scope 2, market-based emissions (metric tons CO2e)
19.3

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary name
PMI Mexico Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier

207

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 1 emissions (metric tons CO2e)
1,961.27

Scope 2, location-based emissions (metric tons CO2e)529.92

Scope 2, market-based emissions (metric tons CO2e)529.92

Comment
These emissions correspond to offices, warehouses & fleet emissions. Emission related
data is collected and reported on country level (not subsidiary level).

Subsidiary name
Limited Liability Company Philip Morris Sales & Marketing

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
94.2

Scope 2, location-based emissions (metric tons CO2e)
20.16

Scope 2, market-based emissions (metric tons CO2e)
208

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

20.16

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Maghreb SARL

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)269.03

Scope 2, location-based emissions (metric tons CO2e)
53.12

Scope 2, market-based emissions (metric tons CO2e)
53.12

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary name209

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

PMI Netherlands Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)449.48

Scope 2, location-based emissions (metric tons CO2e)0

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to fleet emissions. Emission related data is collected andreported on country level (not subsidiary level).

Subsidiary namePhilip Morris (New Zealand) Limited

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier
210

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
128.15

Scope 2, location-based emissions (metric tons CO2e)
8.34

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Nicaragua Sociedad Anonima

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number

211

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
50.13

Scope 2, location-based emissions (metric tons CO2e)
3.84

Scope 2, market-based emissions (metric tons CO2e)
3.84

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Limited

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number

212

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Other unique identifier
Scope 1 emissions (metric tons CO2e)
22.23

Scope 2, location-based emissions (metric tons CO2e)
8.72

Scope 2, market-based emissions (metric tons CO2e)
8.72

Comment
These emissions correspond to offices & fleet emissions. Emissions related to PMI
Nigeria Market.

Subsidiary name
PMI Norway Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
21.96

Scope 2, location-based emissions (metric tons CO2e)213

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

5.55

Scope 2, market-based emissions (metric tons CO2e)
5.55

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Panama Sociedad en Comandita por Acciones

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
43.9

Scope 2, location-based emissions (metric tons CO2e)
4.77

Scope 2, market-based emissions (metric tons CO2e)
4.77

Comment
These emissions correspond to offices & fleet emissions.
214

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Subsidiary namePhilip Morris Paraguay S.A.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
27.14

Scope 2, location-based emissions (metric tons CO2e)
23.62

Scope 2, market-based emissions (metric tons CO2e)
23.62

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Peru, Sociedad Anónima

Primary activity
Tobacco products

215

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
41.69

Scope 2, location-based emissions (metric tons CO2e)
6.17

Scope 2, market-based emissions (metric tons CO2e)
6.17

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary name
PMI Philippines Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity

216

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)10,366.07

Scope 2, location-based emissions (metric tons CO2e)2,336.76

Scope 2, market-based emissions (metric tons CO2e)2,336.76

Comment
These emissions correspond to offices, warehouses & fleet emissions. Emission related
data is collected and reported on country level (not subsidiary level).

Subsidiary name
PMI Poland Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code217

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)4,347.85

Scope 2, location-based emissions (metric tons CO2e)
2,088.51

Scope 2, market-based emissions (metric tons CO2e)
2,088.51

Comment
These emissions correspond to offices, warehouses, retail stores & fleet emissions.
Emission related data is collected and reported on country level (not subsidiary level).

Subsidiary name
PMI Portugal Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier

218

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 1 emissions (metric tons CO2e)
1,585.73

Scope 2, location-based emissions (metric tons CO2e)134.12

Scope 2, market-based emissions (metric tons CO2e)0

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Reunion S.A.R.L.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
84.54

Scope 2, location-based emissions (metric tons CO2e)
38.42

Scope 2, market-based emissions (metric tons CO2e)219

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

38.42

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary name
PMI Romania Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)684.62

Scope 2, location-based emissions (metric tons CO2e)58.28

Scope 2, market-based emissions (metric tons CO2e)58.28

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

220

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Subsidiary name
PMI Russia Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
3,941.08

Scope 2, location-based emissions (metric tons CO2e)
1,258.54

Scope 2, market-based emissions (metric tons CO2e)
1,258.54

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary name
PMI Senegal Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
221

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)572.42

Scope 2, location-based emissions (metric tons CO2e)
48.31

Scope 2, market-based emissions (metric tons CO2e)
48.31

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary name
PMI Serbia Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity

222

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)373.2

Scope 2, location-based emissions (metric tons CO2e)101.92

Scope 2, market-based emissions (metric tons CO2e)101.92

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary name
PMI Singapore Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code223

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)198.66

Scope 2, location-based emissions (metric tons CO2e)
1,472.76

Scope 2, market-based emissions (metric tons CO2e)
1,472.76

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Slovakia s.r.o.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier

224

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 1 emissions (metric tons CO2e)386.84

Scope 2, location-based emissions (metric tons CO2e)
6.91

Scope 2, market-based emissions (metric tons CO2e)
6.91

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Ljubljana, storitveno podjetje, d.o.o.

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
90.5

Scope 2, location-based emissions (metric tons CO2e)
48.07

Scope 2, market-based emissions (metric tons CO2e)
28.61
225

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary name
PMI South Africa Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)717.87

Scope 2, location-based emissions (metric tons CO2e)239.93

Scope 2, market-based emissions (metric tons CO2e)239.93

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary name226

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

PMI Spain Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)886.59

Scope 2, location-based emissions (metric tons CO2e)
87.09

Scope 2, market-based emissions (metric tons CO2e)
87.09

Comment
These emissions correspond to offices, retail stores & fleet emissions. Emission related
data is collected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Aktiebolag

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier
227

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)308.17

Scope 2, location-based emissions (metric tons CO2e)
10.49

Scope 2, market-based emissions (metric tons CO2e)
9.25

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary name
PMI Switzerland Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number

228

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
2,861.23

Scope 2, location-based emissions (metric tons CO2e)625.34

Scope 2, market-based emissions (metric tons CO2e)
55.72

Comment
These emissions correspond to offices, retail stores & fleet emissions. Emission related
data is collected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Taiwan SA

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
229

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Other unique identifier
Scope 1 emissions (metric tons CO2e)
136.7

Scope 2, location-based emissions (metric tons CO2e)140.08

Scope 2, market-based emissions (metric tons CO2e)140.08Comment
These emissions correspond to offices & fleet emissions. Emissions related to PMI
Taiwan Market. Emission related data is collected and reported on country level (notsubsidiary level).

Subsidiary namePhilip Morris Tanzania Limited

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)230

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

0

Scope 2, location-based emissions (metric tons CO2e)
0.61

Scope 2, market-based emissions (metric tons CO2e)
0.61

Comment
These emissions correspond to offices emissions.

Subsidiary namePhilip Morris Trading (Thailand) Company Limited

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
1,189.95

Scope 2, location-based emissions (metric tons CO2e)
62.04

Scope 2, market-based emissions (metric tons CO2e)
62.04

231

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris North Africa SARL

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)185.51

Scope 2, location-based emissions (metric tons CO2e)
23.05

Scope 2, market-based emissions (metric tons CO2e)
23.05

Comment
These emissions correspond to offices & fleet emissions.

Subsidiary name
PMI Turkey Market

232

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
1,832.66

Scope 2, location-based emissions (metric tons CO2e)324.42

Scope 2, market-based emissions (metric tons CO2e)324.42

Comment
These emissions correspond to offices & fleet emissions. Emission related data iscollected and reported on country level (not subsidiary level).

Subsidiary name
PMI Ukraine Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
233

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
1,276.91

Scope 2, location-based emissions (metric tons CO2e)239.17

Scope 2, market-based emissions (metric tons CO2e)239.17

Comment
These emissions correspond to offices, warehouses & fleet emissions. Emission related
data is collected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Management Services (Middle East) Limited

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number

234

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)507.36

Scope 2, location-based emissions (metric tons CO2e)
137.19

Scope 2, market-based emissions (metric tons CO2e)
137.19Comment
These emissions correspond to offices & fleet emissions.

Subsidiary namePhilip Morris Limited

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number

235

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Other unique identifier
Scope 1 emissions (metric tons CO2e)637.77

Scope 2, location-based emissions (metric tons CO2e)
53.68

Scope 2, market-based emissions (metric tons CO2e)
53.68

Comment
These emissions correspond to offices & fleet emissions. Emissions related to PMI
United Kingdom Market.

Subsidiary name
PMI Uruguay Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
14.8

Scope 2, location-based emissions (metric tons CO2e)236

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

0.26

Scope 2, market-based emissions (metric tons CO2e)
0.26

Comment
These emissions correspond to offices, warehouses & fleet emissions. Emission related
data is collected and reported on country level (not subsidiary level).

Subsidiary name
PMI USA Market

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)
1,914.76

Scope 2, location-based emissions (metric tons CO2e)472.97

Scope 2, market-based emissions (metric tons CO2e)472.97

Comment

237

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

These emissions correspond to offices & company's fleet emissions. Emission related
data is collected and reported on country level (not subsidiary level).

Subsidiary namePhilip Morris Vietnam Limited Liability Company

Primary activity
Tobacco products

Select the unique identifier(s) you are able to provide for this subsidiary
No unique identifier

ISIN code – bond
ISIN code – equity
CUSIP number
Ticker symbol
SEDOL code
LEI number
Other unique identifier
Scope 1 emissions (metric tons CO2e)101.73

Scope 2, location-based emissions (metric tons CO2e)
25.58

Scope 2, market-based emissions (metric tons CO2e)
25.58

Comment
These emissions correspond to offices & fleet emissions.

C7.9(C7.9) How do your gross global emissions (Scope 1 and 2 combined) for thereporting year compare to those of the previous reporting year?
238

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Decreased

C7.9a(C7.9a) Identify the reasons for any change in your gross global emissions (Scope 1
and 2 combined), and for each of them specify how your emissions compare to theprevious year.
Change inemissions(metric
tons CO2e)

Directionof changeinemissions

Emissionsvalue(percentage)

Please explain calculation

Change inrenewableenergyconsumption

10,264

Decreased

2.75

The change in renewable energy
consumption comes from the purchased
renewable electricity in our
manufacturing facilities and markets plus
the produced renewable energy. Our
total Scope 1 and 2 emissions in the2021 was 373,040 tCO2e, therefore a
2.75% reduction (10,264/373,040)*100 =
2.75%

Other
emissions
reduction
activities

38,573

Decreased

10.34

The 38,573 tCO2e reduction comes fromthe relentless drive of our energy saving
and efficiency team implementing
processes through our Drive for Zero
program. Compared to our scope 1 and
2 in 2021, this represents a 10.34%
taking in consideration the increased
energy demand from our Smoke-FreeProducts (the process to manufacture
heated tobacco units is more energy
intensive than for conventional
cigarettes, due to the production of thecast leaf tobacco in the magnitude ofthree times more energy thanconventional products). Our total Scope
1 and 2 emissions in the 2021 was
373,040 tCO2e, therefore a 10.34%
reduction (38,573/373,040)*100 =10.34%Divestment0

No change

0

PMI did not have any changes due tochange in divestment in 2022.

Acquisitions

0

No change

0

PMI did not have any changes due tochange in acquisition in 2022.

239

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

GHG emissions from wellness andhealthcare acquisitions made in 2021
are currently excluded from the inventory
as they are below our materiality
threshold (These emissions represented
1.6 percent of PMI’s scope 1+2
emissions and 2.1 percent of scope 3
emissions in 2022 and were calculated
in line with PMI’s methodology). GHG
emissions from Swedish Match AB
acquisition made in late 2022 are notincluded either. For this last, PMI
anticipates this data to be fully included
in our reporting by 2024.
Mergers0

No change

0

PMI did not have any changes due tochange in mergers in 2022.
GHG emissions from wellness andhealthcare acquisitions made in 2021
are currently excluded from the inventory
as they are below our materiality
threshold (These emissions represented
1.6 percent of PMI’s scope 1+2
emissions and 2.1 percent of scope 3
emissions in 2022 and were calculated
in line with PMI’s methodology). GHG
emissions from Swedish Match AB
acquisition made in late 2022 are notincluded either. For this last, PMI
anticipates this data to be fully included
in our reporting by 2024.

Change in
output15,881

Increased

4.26

The main driver for this increase isdriven by product portfolio impact(increase of our smoke free products,
which process is more energy intensive
than conventional cigarettes due to the
production of cast leaf tobacco). It has
been also impacted by the increase of
km driven of our fleet. In 2022, 15,881
tCO2e increased in our scope 1 and 2,
compared to a total of 373,040, therefore
a 15,881/373,040*100 = 4.26% increase.

Change inmethodology0

No change

0

PMI did not have any changes due tochange in methodology in 2022.

240

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Change inboundary0

No change

0

PMI did not have any changes due tochange in boundary in 2022.

Change inphysicaloperatingconditions

0

No change

0

PMI did not have any changes due tochange in physical operating conditionsin 2022.

Unidentified0

No change

0

PMI did not have any changes due tochange unidentified in 2022.

Other

0

No change

0

PMI did not have any changes due tochange in other in 2022.

C7.9b(C7.9b) Are your emissions performance calculations in C7.9 and C7.9a based on alocation-based Scope 2 emissions figure or a market-based Scope 2 emissions
figure?
Market-based

C8. Energy
C8.1(C8.1) What percentage of your total operational spend in the reporting year was onenergy?
More than 0% but less than or equal to 5%

C8.2(C8.2) Select which energy-related activities your organization has undertaken.
Indicate whether your organization undertook this energyrelated activity in the reporting year
Consumption of fuel (excluding
feedstocks)

Yes

Consumption of purchased or
acquired electricity

Yes

Consumption of purchased or
acquired heat

Yes

Consumption of purchased or
acquired steam

Yes

Consumption of purchased or
acquired cooling

No

241

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Generation of electricity, heat,steam, or cooling

Yes

C8.2a
(C8.2a) Report your organization’s energy consumption totals (excluding feedstocks)
in MWh.
Heatingvalue

MWh from
renewable
sources

MWh from nonrenewablesources

Total (renewable
and non-renewable)
MWh

LHV (lower
heatingvalue)

26,454.51

1,246,542.1

1,272,996.61

Consumption ofpurchased or acquired
electricity

715,256.54

103,106.55

818,363.09

Consumption ofpurchased or acquiredheat

0

23,457.55

23,457.55

Consumption ofpurchased or acquired
steam

0

12.12

12.12

Consumption of selfgenerated non-fuelrenewable energy

12,364.85

Total energy
consumption

754,075.9

Consumption of fuel(excluding feedstock)

12,364.85

1,373,118.32

2,127,194.22

C8.2b
(C8.2b) Select the applications of your organization’s consumption of fuel.
Indicate whether your organization undertakes thisfuel application
Consumption of fuel for the generation ofelectricity

Yes

Consumption of fuel for the generation of
heat

Yes

Consumption of fuel for the generation of
steam

Yes

Consumption of fuel for the generation ofcoolingNo

242

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Consumption of fuel for co-generation or
tri-generation

Yes

C8.2c
(C8.2c) State how much fuel in MWh your organization has consumed (excluding
feedstocks) by fuel type.
Sustainable biomass
Heating value
LHV

Total fuel MWh consumed by the organization
9,961.56

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat0

MWh fuel consumed for self-generation of steam
9,961.56

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment
This includes sustainable biomass and agro-waste used in some factories supported bydocumentation/certification. For example: our factory in Lithuania is using biomass
certified by FSC, while other factory is using agro-waste (i.e., sunflower husk).
Sustainability criteria is in line with PMI Monitoring Framework (MF) for Sustainable Leaf
Curing Fuels developed in 2016. Following this internal standard, main requirements tobe met are:1. No Old Growth Forest cut
2. Renewable sources/Self-sufficient firewood
3. Full traceability.
Examples of documentation to evidence fulfilment of requirements mentioned above canbe receipts of purchased fuels, including the name of the vendor and the amount of fuelpurchased and a verification of the source of the fuel.

Other biomass
Heating value
LHV

Total fuel MWh consumed by the organization
243

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

13,531.34

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat
83.03

MWh fuel consumed for self-generation of steam
13,448.31

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment
This refers to biomass in only one factory and one office.

Other renewable fuels (e.g. renewable hydrogen)Heating value
LHV

Total fuel MWh consumed by the organization
2,961.61

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat
2,961.61

MWh fuel consumed for self-generation of steam0

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment
This mainly refers to bioethanol and biodiesel used for our fleet.

Coal
Heating value
LHV

Total fuel MWh consumed by the organization
249.65

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat244

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

249.65

MWh fuel consumed for self-generation of steam0

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment
This refers to coal consumption in one market.

Oil
Heating value
LHV

Total fuel MWh consumed by the organization
334,252.98

MWh fuel consumed for self-generation of electricity
22,177.22

MWh fuel consumed for self-generation of heat
310,913.32

MWh fuel consumed for self-generation of steam
1,162.44

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment
This includes fuel oil, diesel & petrol consumed in our direct operations.

Gas
Heating value
LHV

Total fuel MWh consumed by the organization
904,708.4

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat
216,341.69

MWh fuel consumed for self-generation of steam
524,879.62

MWh fuel consumed for self- cogeneration or self-trigeneration
245

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

163,487.09

Comment
This refers to natural gas and LPG consumed in our direct operations.

Other non-renewable fuels (e.g. non-renewable hydrogen)Heating value
LHV

Total fuel MWh consumed by the organization
7,331.07

MWh fuel consumed for self-generation of electricity0

MWh fuel consumed for self-generation of heat
7,331.07

MWh fuel consumed for self-generation of steam0

MWh fuel consumed for self- cogeneration or self-trigeneration
0

Comment
This corresponds to aviation fuel.

Total fuelHeating value
LHV

Total fuel MWh consumed by the organization
1,272,996.61

MWh fuel consumed for self-generation of electricity
22,177.22

MWh fuel consumed for self-generation of heat
537,880.37

MWh fuel consumed for self-generation of steam
549,451.93

MWh fuel consumed for self- cogeneration or self-trigeneration
163,487.09

Comment
This refers to the sum of all fuel consumed for reporting year 2022.

246

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C8.2d
(C8.2d) Provide details on the electricity, heat, steam, and cooling your organization
has generated and consumed in the reporting year.
Total Gross
generation(MWh)

Generation that isconsumed by theorganization (MWh)Gross generationfrom renewablesources (MWh)Generation fromrenewable sources that isconsumed by theorganization (MWh)Electricity 65,280.8

65,248.17

12,058.82

12,026.19

Heat

196,483.65

196,483.65

304.79304.79Steam

494,506.74

494,506.74

21,068.88

21,068.88

Cooling736,526.78

736,526.78

643,730.89

643,730.89

C8.2e(C8.2e) Provide details on the electricity, heat, steam, and/or cooling amounts thatwere accounted for at a zero or near-zero emission factor in the market-based Scope
2 figure reported in C6.3.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)25,225Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
247

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
1969

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)795

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2008

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)
248

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)821

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2016

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)639

Tracking instrument usedGO

249

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2020

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Small hydropower (<25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)414

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2008

Comment
Refers to our factory in Poland.
250

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Small hydropower (<25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)6,957Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2009

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Small hydropower (<25 MW)

251

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)14,992

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2010

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Small hydropower (<25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)1,111Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
252

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2011

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Small hydropower (<25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)1,123Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2012

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)
253

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Energy carrier
Electricity

Low-carbon technology type
Small hydropower (<25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)737

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2013

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Small hydropower (<25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)1,084Tracking instrument usedGO

254

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2014

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Small hydropower (<25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)2,875Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2015

Comment
Refers to our factory in Poland.
255

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Small hydropower (<25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)1,988Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2016

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Small hydropower (<25 MW)

256

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)997

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2019

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Small hydropower (<25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)325

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
257

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2020

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
PolandSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Small hydropower (<25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)5,145Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
PolandAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2021

Comment
Refers to our factory in Poland.

Country/area of low-carbon energy consumption
JordanSourcing method
Unbundled procurement of energy attribute certificates (EACs)
258

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Energy carrier
Electricity

Low-carbon technology typeSolar

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)3,522Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
JordanAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2018

Comment
Refers to our factory in Jordan.

Country/area of low-carbon energy consumption
Pakistan

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)6,464Tracking instrument used
I-REC

259

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of origin (generation) of the low-carbon energy or energy
attribute
India

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2006

Comment
Refers to our factories in Pakistan.

Country/area of low-carbon energy consumption
Philippines

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)42,166

Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Philippines

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2003

Comment
Refers to our factories in Philippines.
260

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of low-carbon energy consumption
Romania

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)36,862

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
NorwayAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2008

Comment
Refers to our factory in Romania.

Country/area of low-carbon energy consumption
Senegal

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Solar

261

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)3,980

Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
South Africa

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2014

Comment
Refers to our factory in Senegal.

Country/area of low-carbon energy consumption
South Africa

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology typeSolar

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)2,518Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
South Africa

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
262

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2006

Comment
Refers to our factory in South Africa.

Country/area of low-carbon energy consumption
Venezuela (Bolivarian Republic of)Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Other biomass

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)519

Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
BrazilAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2010

Comment
Refers to our factory in Venezuela.

Country/area of low-carbon energy consumption
BrazilSourcing method
Unbundled procurement of energy attribute certificates (EACs)
263

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Energy carrier
Electricity

Low-carbon technology type
Other biomass

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)15,777

Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
BrazilAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2010

Comment
Refers to our factory in Brazil.

Country/area of low-carbon energy consumption
Malaysia

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Other biomass

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)11,068Tracking instrument used
I-REC

264

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Malaysia

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2017

Comment
Refers to our factory in Malaysia.

Country/area of low-carbon energy consumption
Argentina

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)16,413

Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attributeArgentina

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
1972

Comment
Refers to our factories in Argentina.
265

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of low-carbon energy consumption
Argentina

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)8,518Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attributeArgentina

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
Refers to our factories in Argentina.

Country/area of low-carbon energy consumption
Czechia

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

266

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)26,291

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Czechia

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
Refers to our factory in Czechia.

Country/area of low-carbon energy consumption
Germany

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)20,277

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
NorwayAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
267

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2008

Comment
Refers to our factories in Germany.

Country/area of low-carbon energy consumption
Kazakhstan

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)9,820Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Kazakhstan

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
Refers to our factory in Kazakhstan.

Country/area of low-carbon energy consumption
MexicoSourcing method
Unbundled procurement of energy attribute certificates (EACs)
268

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Energy carrier
Electricity

Low-carbon technology typeSolar

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)2,486Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
MexicoAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2021

Comment
Refers to our factory in Mexico.

Country/area of low-carbon energy consumption
MexicoSourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology typeWind

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)27,744

Tracking instrument used
I-REC

269

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of origin (generation) of the low-carbon energy or energy
attribute
MexicoAre you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
Refers to our factory in Mexico.

Country/area of low-carbon energy consumption
SerbiaSourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)22,016

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
SerbiaAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
1970

Comment
Refers to our factory in Serbia.
270

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of low-carbon energy consumption
Italy

Sourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)3,480Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Italy

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
Refers to our factories in Italy.

Country/area of low-carbon energy consumption
Italy

Sourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology type
Solar

271

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)20,239Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Italy

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
Refers to our factories and offices in Italy

Country/area of low-carbon energy consumption
Italy

Sourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology typeWind

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)45,791

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Italy

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No272

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
Refers to our factories in Italy.

Country/area of low-carbon energy consumption
CanadaSourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)11,282

Tracking instrument used
Contract

Country/area of origin (generation) of the low-carbon energy or energy
attribute
CanadaAre you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
Refers to our factory in Canada.

Country/area of low-carbon energy consumption
GreeceSourcing method
Project-specific contract with an electricity supplier
273

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Energy carrier
Electricity

Low-carbon technology type
Renewable energy mix, please specify
Solar / Wind / HydropowerLow-carbon energy consumed via selected sourcing method in the reporting
year (MWh)29,863

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
GreeceAre you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
Refers to our factory and warehouse in Greece.

Country/area of low-carbon energy consumption
New Zealand

Sourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology type
Renewable energy mix, please specify
Wind / Hydropower / Geothermal

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)64

Tracking instrument used
Contract274

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of origin (generation) of the low-carbon energy or energy
attribute
New Zealand

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
Refers to our office in New Zealand.

Country/area of low-carbon energy consumption
Switzerland

Sourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)35,975Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Switzerland

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
This refers to our factory, offices and data center in Switzerland.
275

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of low-carbon energy consumption
TurkeySourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)35,173

Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
TurkeyAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
1992

Comment
Refers to our factory in Turkey.

Country/area of low-carbon energy consumption
Lithuania

Sourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

276

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)7,497Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Iceland

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
1977

Comment
Refers to our factory in Lithuania.

Country/area of low-carbon energy consumption
Lithuania

Sourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology type
Small hydropower (<25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)1,538Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
GreeceAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes
277

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
1949

Comment
Refers to our factory in Lithuania.

Country/area of low-carbon energy consumption
Lithuania

Sourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology typeWind

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)1,736Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
GreeceAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2001

Comment
Refers to our factory in Lithuania.

Country/area of low-carbon energy consumption
Lithuania

Sourcing method
Project-specific contract with an electricity supplier
278

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Energy carrier
Electricity

Low-carbon technology typeWind

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)1,587Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
GreeceAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2009

Comment
Refers to our factory in Lithuania.

Country/area of low-carbon energy consumption
Lithuania

Sourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology typeWind

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)5,380Tracking instrument usedGO

279

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of origin (generation) of the low-carbon energy or energy
attribute
GreeceAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2012

Comment
Refers to our factory in Lithuania.

Country/area of low-carbon energy consumption
Lithuania

Sourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology type
Other biomass

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)3,173Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Czechia

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2013

Comment
Refers to our factory in Lithuania.
280

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of low-carbon energy consumption
Lithuania

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)377

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
NorwayAre you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2008

Comment
Refers to our factory in Lithuania.

Country/area of low-carbon energy consumption
Netherlands

Sourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology type
Wind

281

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)30,509Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Netherlands

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
Refers to our factory in Netherlands.

Country/area of low-carbon energy consumption
Portugal

Sourcing method
Project-specific contract with an electricity supplier

Energy carrier
Electricity

Low-carbon technology type
Renewable energy mix, please specify
Hydropower / Wind

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)22,293

Tracking instrument used
GO

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Portugal

Are you able to report the commissioning or re-powering year of the energy
generation facility?
282

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
Refers to our factory and offices in Portugal.

Country/area of low-carbon energy consumption
Republic of Korea

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)1,628Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
China

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2003

Comment
Refers to our factory in Korea.

Country/area of low-carbon energy consumption
Republic of Korea

Sourcing method283

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Large hydropower (>25 MW)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)28,097

Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
China

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
2006

Comment
Refers to our factory in Korea.

Country/area of low-carbon energy consumption
Indonesia

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Geothermal

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)12,894

Tracking instrument used
I-REC

284

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Indonesia

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
This refers to our offices and warehouses in Indonesia.

Country/area of low-carbon energy consumption
Indonesia

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology typeHydropower (capacity unknown)

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)10,117

Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Indonesia

Are you able to report the commissioning or re-powering year of the energy
generation facility?
No

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
Comment
This refers to our factories in Indonesia.
285

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area of low-carbon energy consumption
Indonesia

Sourcing method
Unbundled procurement of energy attribute certificates (EACs)

Energy carrier
Electricity

Low-carbon technology type
Geothermal

Low-carbon energy consumed via selected sourcing method in the reporting
year (MWh)86,758Tracking instrument used
I-REC

Country/area of origin (generation) of the low-carbon energy or energy
attribute
Indonesia

Are you able to report the commissioning or re-powering year of the energy
generation facility?
Yes

Commissioning year of the energy generation facility (e.g. date of firstcommercial operation or repowering)
1997

Comment
This refers to our factories in Indonesia.

C8.2g(C8.2g) Provide a breakdown by country/area of your non-fuel energy consumption in
the reporting year.

Country/area
Argentina

Consumption of purchased electricity (MWh)24,931.64

Consumption of self-generated electricity (MWh)286Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
24,931.64

Country/area
BrazilConsumption of purchased electricity (MWh)15,776.85

Consumption of self-generated electricity (MWh)120.62

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
15,897.47

Country/area
CanadaConsumption of purchased electricity (MWh)11,282.15

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0287Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Total non-fuel energy consumption (MWh) [Auto-calculated]
11,282.15

Country/area
Croatia

Consumption of purchased electricity (MWh)200.5

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
200.5Country/area
Czechia

Consumption of purchased electricity (MWh)26,175.64

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
26,175.64

Country/area
Finland288

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Consumption of purchased electricity (MWh)18.79

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
18.79

Country/area
Germany

Consumption of purchased electricity (MWh)20,913.95

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
20,913.95

Country/area
GreeceConsumption of purchased electricity (MWh)29,861.79

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0289Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Consumption of self-generated heat, steam, and cooling (MWh)25.95

Total non-fuel energy consumption (MWh) [Auto-calculated]
29,887.74

Country/areaIndonesia

Consumption of purchased electricity (MWh)105,075.92

Consumption of self-generated electricity (MWh)1,048.6

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
106,124.52

Country/area
Italy

Consumption of purchased electricity (MWh)69,509.04

Consumption of self-generated electricity (MWh)6,872.22

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
76,381.26

290

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/areaJapan

Consumption of purchased electricity (MWh)215.35

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
215.35Country/area
JordanConsumption of purchased electricity (MWh)3,521.48

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
3,521.48

Country/area
Kazakhstan

Consumption of purchased electricity (MWh)9,819.72

Consumption of self-generated electricity (MWh)0291Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
9,819.72

Country/area
Malaysia

Consumption of purchased electricity (MWh)11,151

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
11,151Country/area
MexicoConsumption of purchased electricity (MWh)30,229.55

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
30,229.55
292

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area
Netherlands

Consumption of purchased electricity (MWh)30,508.89

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
30,508.89

Country/area
Lithuania

Consumption of purchased electricity (MWh)22,938.6

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
22,938.6

Country/area
New ZealandConsumption of purchased electricity (MWh)64.37

Consumption of self-generated electricity (MWh)293

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
64.37

Country/area
Pakistan

Consumption of purchased electricity (MWh)6,462.47

Consumption of self-generated electricity (MWh)727.23

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
7,189.7

Country/area
Philippines

Consumption of purchased electricity (MWh)42,165.9

Consumption of self-generated electricity (MWh)1,703.19

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0294Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Total non-fuel energy consumption (MWh) [Auto-calculated]
43,869.09

Country/area
PolandConsumption of purchased electricity (MWh)65,224.09

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
65,224.09

Country/area
Republic of Korea

Consumption of purchased electricity (MWh)29,724.14

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
29,724.14

Country/area
Romania295

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Consumption of purchased electricity (MWh)36,861.28

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
36,861.28

Country/area
SenegalConsumption of purchased electricity (MWh)3,979.77

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
3,979.77

Country/area
SerbiaConsumption of purchased electricity (MWh)22,010.48

Consumption of self-generated electricity (MWh)50.26

Consumption of purchased heat, steam, and cooling (MWh)0296Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
22,060.74

Country/area
Slovenia

Consumption of purchased electricity (MWh)84.98

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
84.98

Country/area
South Africa

Consumption of purchased electricity (MWh)2,518.33

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
2,518.33

297

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area
SwedenConsumption of purchased electricity (MWh)119.41

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)1.27

Total non-fuel energy consumption (MWh) [Auto-calculated]
120.68Country/area
Switzerland

Consumption of purchased electricity (MWh)35,974.75

Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)311.44

Total non-fuel energy consumption (MWh) [Auto-calculated]
36,286.19

Country/area
TurkeyConsumption of purchased electricity (MWh)35,123.7

Consumption of self-generated electricity (MWh)176.13298

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
35,299.83

Country/area
Venezuela (Bolivarian Republic of)Consumption of purchased electricity (MWh)518.88Consumption of self-generated electricity (MWh)0Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
518.88Country/area
Portugal

Consumption of purchased electricity (MWh)22,293.16

Consumption of self-generated electricity (MWh)1,327.95

Consumption of purchased heat, steam, and cooling (MWh)0Consumption of self-generated heat, steam, and cooling (MWh)0Total non-fuel energy consumption (MWh) [Auto-calculated]
23,621.11
299

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C9. Additional metrics
C9.1(C9.1) Provide any additional climate-related metrics relevant to your business.

Description
Waste

Metric value
1.13

Metric numerator
Waste landfilled or incineration w/o heat recovery

Metric denominator (intensity metric only)
Total waste generated% change from previous year
0.3

Direction of change
Decreased

Please explain
The start-up of our new smoke free products (SFP) facilities in Italy, impacted our
disposal ratio in 2017. Since 2018 we solved this issue and we are back on track,including in 2022, to maintain our long-term target to reduce and keep our disposal tolandfill ratio below 5%.

C10. Verification
C10.1(C10.1) Indicate the verification/assurance status that applies to your reported
emissions.
Verification/assurance status
Scope 1

Third-party verification or assurance process in place

Scope 2 (location-based or market-based)

Third-party verification or assurance process in place

Scope 3

Third-party verification or assurance process in place

300

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C10.1a(C10.1a) Provide further details of the verification/assurance undertaken for your
Scope 1 emissions, and attach the relevant statements.

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Type of verification or assurance
Reasonable assurance

Attach the statement
PMI Scopes 1&2 GHG Verification Statement 2022 external -140323.pdf

Page/ section reference
Page 1: standard used
Page 2 and 3: method and scope, period covered, type of verification and level ofassurance
Page 3: total Scope 1 and assurance conclusion

Relevant standard
ISO14064-3

Proportion of reported emissions verified (%)
100

C10.1b
(C10.1b) Provide further details of the verification/assurance undertaken for your
Scope 2 emissions and attach the relevant statements.

Scope 2 approach
Scope 2 market-based

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Type of verification or assurance
Reasonable assurance
301

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Attach the statement
PMI Scopes 1&2 GHG Verification Statement 2022 external -140323.pdf

Page/ section reference
Page 1: standard used
Page 2 and 3: method and scope, period covered, type of verification and level ofassurance
Page 3: total Scope 2 market-based, total Scope 2 location-based and assurance
conclusion

Relevant standard
ISO14064-3

Proportion of reported emissions verified (%)
100

Scope 2 approach
Scope 2 location-based

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Type of verification or assurance
Reasonable assurance

Attach the statement
PMI Scopes 1&2 GHG Verification Statement 2022 external -140323.pdf

Page/ section reference
Page 1: standard used
Page 2 and 3: method and scope, period covered, type of verification and level ofassurance
Page 3: total Scope 2 market-based, total Scope 2 location-based and assurance
conclusion

Relevant standard
ISO14064-3

Proportion of reported emissions verified (%)
100

302

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C10.1c(C10.1c) Provide further details of the verification/assurance undertaken for your
Scope 3 emissions and attach the relevant statements.

Scope 3 category
Scope 3: Purchased goods and services
Scope 3: Capital goods
Scope 3: Fuel and energy-related activities (not included in Scopes 1 or 2)
Scope 3: Upstream transportation and distribution
Scope 3: Waste generated in operations
Scope 3: Business travel
Scope 3: Employee commuting
Scope 3: Downstream transportation and distribution
Scope 3: Use of sold products
Scope 3: End-of-life treatment of sold products

Verification or assurance cycle in place
Annual process

Status in the current reporting year
Complete

Type of verification or assurance
Limited assurance

Attach the statement
PMI Scope 3 GHG Verification Statement 2022 - v1.0.pdf

Page/section reference
Page 1: total Scope 3
Page 1: standard used
Page 2: method and scope, period covered, type of verification and level of assurance
Page 3: assurance conclusion

Relevant standard
ISO14064-3

Proportion of reported emissions verified (%)
100

C10.2
(C10.2) Do you verify any climate-related information reported in your CDP disclosure
other than the emissions figures reported in C6.1, C6.3, and C6.5?
303

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Yes

C10.2a(C10.2a) Which data points within your CDP disclosure have been verified, and which
verification standards were used?
Disclosure
moduleverification
relates toData verified

Verification
standard

C6. Emissions
data

Year on year
ISO14064-3
change inemissions (Scope
1 and 2)

Please explain

PMI has chosen to verify this data in order tocertify our year-on-year progress on carbon
emission reductions in all our operations(factories, offices, warehouses and fleet).
1

C6. Emissions
data

Year on year
ISO14064-3
change inemissions (Scope
3)

PMI has chosen to verify this data from ourcarbon footprint model in order to certify our
year-on-year progress on carbon emission
across our value chain.
2

1PMI

Scopes 1&2 GHG Verification Statement 2022 external -140323.pdf

2PMI Scope 3 GHG Verification Statement 2022 - v1.0.pdf

C11. Carbon pricing
C11.1(C11.1) Are any of your operations or activities regulated by a carbon pricing system(i.e. ETS, Cap & Trade or Carbon Tax)?
Yes

C11.1a(C11.1a) Select the carbon pricing regulation(s) which impacts your operations.
EU ETSSwitzerland carbon tax

C11.1b
(C11.1b) Complete the following table for each of the emissions trading schemes you
are regulated by.
EU ETS

304

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

% of Scope 1 emissions covered by the ETS
23% of Scope 2 emissions covered by the ETS
0Period start date
January 1, 2022

Period end date
December 31, 2022

Allowances allocated54,389Allowances purchased
26,093

Verified Scope 1 emissions in metric tons CO2e54,389Verified Scope 2 emissions in metric tons CO2e0

Details of ownership
Facilities we own and operate

Comment
The “% scope 1 emissions covered”, covers emissions from our manufacturing sites in
Italy, the Netherlands and Romania.
Additional information: only scope 1 included.

C11.1c(C11.1c) Complete the following table for each of the tax systems you are regulatedby.
Switzerland carbon tax
Period start date
January 1, 2022

Period end date
December 31, 2022

% of total Scope 1 emissions covered by tax
0.33

Total cost of tax paid
130,748305

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Comment
This refers to our factory in Switzerland.

C11.1d(C11.1d) What is your strategy for complying with the systems you are regulated by or
anticipate being regulated by?
European Union Allowances (EUA)’s prices have shown a steady up-moving trend in 2022. The
main reason behind this uptrend is an expectation of an unbalanced market on the demandside mainly due to the activity of the EU ETS system to reduce the oversupply number ofcredits in the market and thus low prices in the past and a high demand of credits on thevoluntary market. In order to mitigate this impact reducing energy consumption throughincreasing energy efficiency in our factories is a priority. At PMI, we started in 2012 our Global
Energy Management Program paired with local reduction initiatives, targeting energy and CO2
savings to minimize the need for purchasing EUAs. This program represents PMI’s main
component of its strategy to comply with the relevant ETS. We balance our allowancespurchased over a 3-year timeframe. As a result of the efforts, energy reductions have enabled
our factories in Portugal, Germany and Lithuania to be removed from the EU ETS scheme inthe last 6 years (moving below total combustion capacity thresholds). Regarding emerging
regulations, we are monitoring closely and anticipating the strategic position of ourmanufacturing plant vs. the potential impact of such cap-and-trade mechanism or carbon tax.
E.g., within the Korea ETS, it is our understanding that a company will be included in thescheme if the average CO2 emission of the last three years is over 125,000 tons/yr. South
Korea is a strategic market where we launched our smoke-free products and we may increase
production capacity in the future. Considering that currently our activities resume to an average
21,000tons/year CO2 emissions, we could increase the capacity without immediate threats
from such carbon tax. Moreover, through the implementation of our global program “Drive forZero” and “Energy Savings Initiatives”, we aim to improve efficiency in our manufacturing
facilities and eliminate losses, reducing emissions intensity to further mitigate the impact of
emerging regulations in South Korea.
Furthermore, we use internal carbon pricing to incentivize and drive reductions in GHG
emissions. Through the Internal Carbon Pricing we implement 1) a shadow price (SP) tointernalize environmental costs and factor them into investment decisions, and 2) an internalcarbon levy (CL) as an incentive to reduce GHG emissions and a way to generate funding forsolutions to compensate for unavoidable emissions. While SC helps prioritize the businesscase for investments in activities aimed at structurally reducing carbon emissions, our CL helps
determine the investments required to abate our emissions through offsetting or insetting
initiatives.

C11.2(C11.2) Has your organization canceled any project-based carbon credits within thereporting year?
Yes

306

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C11.2a(C11.2a) Provide details of the project-based carbon credits canceled by yourorganization in the reporting year.

Project type
Peatland protection and restoration

Type of mitigation activity
Emissions reduction

Project description
Credits cancelled from this project have allowed the carbon neutrality of the Scope 1
and 2 emissions (excluding manufacturing operations) under the direct operational
control of Philip Morris Mexico Productos y Servicios, S de R.L de C.V and Philip Morris
Mexico S de R.L de C.V. sales offices, warehouses and fleet operations.
Project name: Katingan Peatland Restoration and Conservation Project
Project type: Agriculture Forestry and Other Land Use
Project location: Central Kalimantan- Indonesia
Project standard: VERRA
Project ID: VCS1477

Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
1,926

Purpose of cancellation
Voluntary offsetting

Are you able to report the vintage of the credits at cancellation?
Yes

Vintage of credits at cancellation
2016

Were these credits issued to or purchased by your organization?
Purchased

Credits issued by which carbon-crediting program
VCS (Verified Carbon Standard)

Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Investment analysis
Barrier analysis
Market penetration assessment
307

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation

Potential sources of leakage the selected program requires this project tohave assessed
Upstream/downstream emissions
Activity-shifting
Market leakage
Ecological leakage

Provide details of other issues the selected program requires projects toaddress
The Katingan Restoration and Conservation Project protects and restores 149,800
hectares of peatland ecosystems, to offer local communities sustainable sources ofincome, and to tackle global climate change. The project lies within the districts of
Katingan and Kotawaringin Timur in Central Kalimantan Province and covers one of thelargest remaining intact peat swamp forests in Indonesia.

Comment
PMI applies a set of mechanisms and rules—the Portfolio of Climate Investments (PCI)
quality criteria and due diligence protocol—to efficiently evaluate which climate solutions
are most appropriate to pursue. In 2022 we continued investing in nature-based
solutions that focus on protecting nature by (1) avoiding deforestation, (2) improving
nature through community projects, and (3) fostering natural ecosystems beyond
forests. To assess whether an investment will meet our quality criteria and generate apositive impact, we employ an external due diligence process managed with aproprietary methodology developed with PMI’s carbon finance adviser, Clarmondial.
This methodology considers GHG mitigation, biodiversity conservation, and community
benefits. Clarmondial also supported PMI in establishing relationships that can support
the company’s long-term climate, community, and nature-related targets in priority
countries.

Project type
Biomass energy

Type of mitigation activity
Emissions reduction

Project description
Credits cancelled from this project have allowed the carbon neutrality of the Scope 1
and 2 emissions (excluding manufacturing operations) under the direct operational
control of: Massalin Particulares SRL, Philip Morris Brasil Industria e Comercia Ltda., PT
Hanjaya, Mandala Sampoerna, Tbk.; Sukorejo plant, Philip Morris Mexico Productos yServicios, S de R.L de C.V..

308

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Project name: Electricity from FSC Wood Waste in the Amazon
Project type: Biomass
Project location: Brazil
Project standard: Gold Standard
Project ID: GS765

Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
20,000Purpose of cancellation
Voluntary offsetting

Are you able to report the vintage of the credits at cancellation?
Yes

Vintage of credits at cancellation
2016

Were these credits issued to or purchased by your organization?
Purchased

Credits issued by which carbon-crediting programGold Standard

Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Investment analysis
Barrier analysis
Market penetration assessment

Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation

Potential sources of leakage the selected program requires this project tohave assessed
Upstream/downstream emissions
Activity-shifting
Market leakage

Provide details of other issues the selected program requires projects toaddress
The project generates electricity with a thermoelectric power plant using wood wastefrom an FSC1 certified forest and a wood processing company in the city of Itacoatiara,in the State of Amazonas, Brazil. The electricity is generated with a high-pressure boiler(42 bar – 420° C) and a multiple stage condensing steam turbine coupled with a 9
MWelt generator. The power plant replaces several diesel generators and supplies the309

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

local grid of the town of Itacoatiara (approx. 80,000 inhabitants) in a region supplied by
100% diesel fuelled electrical electricity generators.

Comment
PMI applies a set of mechanisms and rules—the Portfolio of Climate Investments (PCI)
quality criteria and due diligence protocol—to efficiently evaluate which climate solutions
are most appropriate to pursue. In 2022 we continued investing in nature-based
solutions that focus on protecting nature by (1) avoiding deforestation, (2) improving
nature through community projects, and (3) fostering natural ecosystems beyond
forests. To assess whether an investment will meet our quality criteria and generate apositive impact, we employ an external due diligence process managed with aproprietary methodology developed with PMI’s carbon finance adviser, Clarmondial.
This methodology considers GHG mitigation, biodiversity conservation, and community
benefits. Clarmondial also supported PMI in establishing relationships that can support
the company’s long-term climate, community, and nature-related targets in priority
countries.

Project type
Energy efficiency: households

Type of mitigation activity
Emissions reduction

Project description
Credits cancelled from this project have allowed the carbon neutrality of the Scope 1
and 2 emissions under the direct operational control of: Philip Morris Products SA, Philip
Morris CR a.s., Papastratos Cigarette Manufacturing Company, S.A., PT Hanjaya
Mandala Sampoerna,Tbk.( SKT Plant Kraksaan, SKT Plant Malang, Sukorejo plant,
SKT Plant Rungkut 1, SKT Plant Rungkut 2, SAMP Sukurejo, UAB Philip Morris Lietuva,
Philip Morris (Pakistan) Limited, Mardan Factory, Tabaqueira Empresa Industial de
Tabacos SA, Philip Morris Manufacturing Senegal S.A.R.L.
Project name: African Biomass Energy Conservation
Project type: Energy efficiency -–domestic
Project location: Malawi
Project standard: Gold Standard
Project ID: GS2447

Credits canceled by your organization from this project in the reporting year
(metric tons CO2e)
19,849Purpose of cancellation
Voluntary offsetting

Are you able to report the vintage of the credits at cancellation?

310

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Yes

Vintage of credits at cancellation
2016

Were these credits issued to or purchased by your organization?
Purchased

Credits issued by which carbon-crediting programGold Standard

Method(s) the program uses to assess additionality for this project
Consideration of legal requirements
Investment analysis
Barrier analysis
Market penetration assessment

Approach(es) by which the selected program requires this project to address
reversal risk
Monitoring and compensation

Potential sources of leakage the selected program requires this project tohave assessed
Activity-shifting
Market leakage

Provide details of other issues the selected program requires projects toaddress
The project, over an initial 7-year period, aims to disseminate over 60,000 improved
cookstoves that are more efficient and use less wood for household cooking andheating than the traditional stoves and to promote improved kitchen and firewood
management practices to households in the Northern, Central and Southern Districts ofMalawi. The improved technology and practices are intended to replace less efficienttechnologies and practices and result in biomass conservation and a reduction ofgreenhouse gas emissions into the atmosphere from the burning of solid biomass.

Comment
PMI applies a set of mechanisms and rules—the Portfolio of Climate Investments (PCI)
quality criteria and due diligence protocol—to efficiently evaluate which climate solutions
are most appropriate to pursue. In 2022 we continued investing in nature-based
solutions that focus on protecting nature by (1) avoiding deforestation, (2) improving
nature through community projects, and (3) fostering natural ecosystems beyond
forests. To assess whether an investment will meet our quality criteria and generate apositive impact, we employ an external due diligence process managed with aproprietary methodology developed with PMI’s carbon finance adviser, Clarmondial.
This methodology considers GHG mitigation, biodiversity conservation, and community
benefits. Clarmondial also supported PMI in establishing relationships that can support

311

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

the company’s long-term climate, community, and nature-related targets in priority
countries.

C11.3(C11.3) Does your organization use an internal price on carbon?
Yes

C11.3a(C11.3a) Provide details of how your organization uses an internal price on carbon.

Type of internal carbon priceShadow priceHow the price is determined
Alignment with the price of allowances under an Emissions Trading Scheme
Alignment with the price of a carbon tax
Cost of required measures to achieve emissions reduction targets
Benchmarking against peers
Price with material impact on business decisions

Objective(s) for implementing this internal carbon price
Change internal behavior
Drive energy efficiency
Drive low-carbon investment
Identify and seize low-carbon opportunities
Navigate GHG regulations

Scope(s) covered
Scope 1
Scope 2

Pricing approach used – spatial variance
Uniform

Pricing approach used – temporal variance
Evolutionary

Indicate how you expect the price to change over time
PMI’s single price methodology aims to keep the robustness and internationallyrecognized practices, modelling the Stiglitz and Stern references and applying them in a
scenario analysis of transition risks projected to achieve the Paris agreement global
warming pathway at 2030/2040, specific to our emission profile and the geographies
where we are operating. Variables such as i) factories emission profiles, ii) geographiesand risk level in relation to carbon tax or carbon regulations already in vigor or planned
to be in a near horizon, iii) forward-looking transition risks, iv) benchmarking, and v)
312

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

inflation rates, are considered when assessing the shadow carbon price. In 2022 weadjusted our shadow price from USD 65 to USD 105 per ton of CO2e.

Actual price(s) used – minimum (currency as specified in C0.4 per metric ton
CO2e)
105

Actual price(s) used – maximum (currency as specified in C0.4 per metric ton
CO2e)
105

Business decision-making processes this internal carbon price is applied toCapital expenditure
Operations
Risk management
Opportunity management

Mandatory enforcement of this internal carbon price within these businessdecision-making processes
Yes, for some decision-making processes, please specify
Financial evaluation of climate-related business proposals

Explain how this internal carbon price has contributed to the implementationof your organization’s climate commitments and/or climate transition plan
In 2022 we integrated our shadow carbon price (SP) into the preparation and financial
evaluation of business proposals aimed at structurally reducing our carbon emissions,
supporting the approval of 121 carbon emission-reduction projects, including four
projects under our Zero Carbon Technology (ZCT) program. The adjustment of ourshadow price from USD 65 to USD 105 per ton of CO2e in the last quarter of the year
supported the approval of two projects under our ZCT program. Around USD14 million
budget was allocated to support the execution of the projects in our manufacturing sites
driving more than 7.5% reduction in carbon emissions across our manufacturing
facilities in 2022 vs. 2021.
The application of the SP increases the IRR and reduces the impact of the payback
period thus enabling efficiency and emission reduction projects that would otherwise notqualify according to our internal investment policy. As an example, as part of our ZCTprogram, in our manufacturing site in Italy, a complex solution space has been approvedin 2022, incl. the site’s electrification plans to enable exiting EU ETS and de-risking
externalities related to energy and ETS price volatility. A mix of technologies fromthermal electrification via heat pumps, electric boiler and in-house PV plants are
expected to be operational by 2025. Such system will 62 GWh thermal energy annually(approx. 44% of site’s 2022 consumption profile), improving at the same time the overall
heat generation efficiency by 6%, against an investment of approx. USD10.2 million
The application of PMI SP to internalize the costs of externalities in the financial
evaluation of projects allowed to improve financial parameters of those projects andserved as enabler of the carbon neutrality strategy favoring investments that willorganically accelerate the reduction path and support achievement of our neutrality
313

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

targets. The internal SP has been instrumental to prioritize projects delivering higher
impact in carbon reduction emissions.
Embedding an internal SP in the financial decision contributes to raising awareness toinvest in environmentally conscious and low carbon technologies.

Type of internal carbon priceInternal fee

How the price is determined
Price/cost of voluntary carbon offset credits
Cost of required measures to achieve emissions reduction targets

Objective(s) for implementing this internal carbon price
Change internal behavior
Drive low-carbon investment
Identify and seize low-carbon opportunities
Reduce supply chain emissions
Set a carbon offset budget

Scope(s) covered
Scope 1
Scope 2
Scope 3 (upstream)
Scope 3 (downstream)

Pricing approach used – spatial variance
Uniform

Pricing approach used – temporal variance
Evolutionary

Indicate how you expect the price to change over time
A carbon levy enables us to internalize external costs by virtually charging our business
functions or affiliates for their respective emissions. With the aim of supporting
behavioral change, the levy is collected in a climate fund (PMI Portfolio of Climate
Investments - PCI), which will finance high-quality carbon insetting and/or offsetting
projects.
We have modelled what the carbon levy should be for PMI basing our calculation on
data on the forecasted voluntary carbon market prices, our CO2 compensation profile(i.e., the number of tons of CO2 to be compensated through offsetting/in-setting
investments), our carbon neutrality time horizon, and the compensation strategy wewant to adopt. In 2022 we adjusted our carbon levy from USD 8 to USD 11 per ton of
CO2e.

Actual price(s) used – minimum (currency as specified in C0.4 per metric ton
CO2e)
11
314

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Actual price(s) used – maximum (currency as specified in C0.4 per metric ton
CO2e)
11

Business decision-making processes this internal carbon price is applied toCapital expenditure
Operations
Risk management
Opportunity management

Mandatory enforcement of this internal carbon price within these businessdecision-making processes
Yes, for some decision-making processes, please specify
Financial evaluation of carbon emission compensation strategies

Explain how this internal carbon price has contributed to the implementationof your organization’s climate commitments and/or climate transition plan
To support decarbonization efforts, PMI believes that limiting the use of market
approaches (offsetting) in the short term by prioritizing direct investment in our supply
chain in the medium and long term (insetting) will result in a climate investment strategy
that is cost effective, transparent, consistent, and of high quality. We anticipate adecrease in the levy budget as our emissions profile shrinks. Where additional funding
will be required for specific investments (e.g., unlocking innovative climate solutions andresearch and development (R&D)), the advisory committee that governs the PCI will
decide on approval.
In 2022, PMI’s PCI invested around USD 6.6 million in projects in Bangladesh, Brazil,
China, Colombia, Indonesia, and Malawi, with a focus on nature-based solutions (2021:
USD 4.2 million), making 2022 the year in which we have invested the most so far incarbon projects. Our increased investment in carbon projects sought to minimize
adverse impacts of the geopolitical situation in Europe as we remain committed
to achieving our carbon neutrality commitment. Moreover, the PCI focused on securinghigh-quality offsets to support PMI’s decarbonization journey and provided the required
carbon offsets for the eight manufacturing sites and one market that achieved carbon
neutrality certification during the calendar year.
In 2021, we identified an insetting project opportunity in our supply chain in
Mozambique. In 2022, we kicked off this project with the objective of increasing accessto potable water to farmers in PMI’s tobacco supply chain by drilling 20 boreholes anddistributing 15,000 highly efficient cook stoves. Those interventions will result in adecreased pressure on natural forests that are typically used as a source of biomass forwater potabilization and cooking purposes, thus allowing the generation of carbon
credits. We expect the project will benefit between 80,000 and 95,000 people and will
deliver significant co-benefits for the farming communities where PMI operates.

315

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C12. Engagement
C12.1(C12.1) Do you engage with your value chain on climate-related issues?
Yes, our suppliers
Yes, our customers/clients
Yes, other partners in the value chain

C12.1a(C12.1a) Provide details of your climate-related supplier engagement strategy.

Type of engagement
Engagement & incentivization (changing supplier behavior)

Details of engagement
Run an engagement campaign to educate suppliers about climate change% of suppliers by number
0.5% total procurement spend (direct and indirect)
42% of supplier-related Scope 3 emissions as reported in C6.5
56

Rationale for the coverage of your engagement
With over 30,000 tier 1 suppliers globally, our supply chain spend amounted toapproximately USD 12.6 billion in 2022. Our global supply chain is organized into two
main streams—direct spend (tobacco leaf, direct materials, electronic devices andadvanced procurement) and indirect spend (technical procurement, R&D expenditure,indirect materials and services). From a sustainability standpoint, the supply chain
categories exposed to the highest risks pertain to our direct spend and include: 1)
Tobacco production across Africa, Asia, and South America, with the main risks in theareas of working conditions, child labor, climate change, access to water, and thesocioeconomic well-being of farming communities; 2) Electronics manufacturing, withthe main risks relating to working conditions; 3) Paper and pulp-based materials, withthe main risks linked to deforestation, biodiversity loss, and climate change.
Our most carbon-intensive supplies are the direct materials used in the manufacturing ofour products, such as cellulose acetate tow, pulp and paper, and our smoke-freeelectronic devices; together direct spend suppliers represent 56% of our Scope 3
emissions. With a significant portion of our GHG emissions arising from direct spend,316

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

engaging with our suppliers to contribute to their transition toward a net zero economy isat the heart of our approach. Our decision to accelerate our ambition to achieve net zero
emissions along our value chain by 10 years—moving our target from 2050 to 2040—
means we must double our efforts to encourage and support our suppliers in reducing
their emissions. Due to the relevance of direct spend suppliers in terms of carbon
intensity, spend and exposure to climate risks, PMI is prioritizing engagement with these
suppliers through education about climate change, and engagement to adopt Science
Based Targets.

Impact of engagement, including measures of success
PMI measures of success are three-fold:1) percentage of suppliers by spent which are covered through our climate related
engagement activities (e.g., developing of emission reduction projects, carrying out
climate related risks assessments, building capacities on data collection, emissions
reduction, target setting, and reporting), meeting minimum threshold scores in our due
diligence platforms to be deemed as sustainably sourced. For example, we aim toengage 100% of our critical Direct Material suppliers by 2025 (93% achieved in 2022).
2) percentage of tobacco growing areas covered with our Local Risk Assessments(LRA). As part of the LRA, PMI engages tobacco suppliers and farmers to identify,
assess and manage potential water impacts arising from local climate risks. As irrigationaccounts for half the water used to grow tobacco sourced by PMI (with an average of
263 cubic meters per ton of tobacco produced in 2022), it is a critical input for ourbusiness. Since we started measuring it in 2018, water requirements related to ourpurchased tobacco volume have gradually decreased in absolute terms; however, oursupply chain is subject to off-trend years like the one we experienced in 2022 where
seasonal variability increased soil water stress and caused our irrigation needs toincrease. To continue improving our understanding of local conditions and be better
placed to manage climate risks we have a target to carry out a LRA in 100% of ourcurrent tobacco growing areas by 2025 (81% reached by end of 2022).
3) percentage of suppliers to adopt Science Based Targets. PMI has set a new target
validated by the SBTi in 2022 on the percentage of supply chain spend covered bysuppliers with their own science-based targets. We aim at 15% of our suppliers byspend (covering purchased goods and services) having science-based targets by 2025,
35% achieved in 2022. Through science based target setting we expect suppliers tofurther develop their GHG accounting processes, improving their climate change
strategies to drive effective carbon emission reduction, which are expected have apositive knock-on effect in PMI’s value chain emissions, further supporting our scope 3
emission reduction efforts and increase access to primary data. Over the next years,
PMI is expecting to expand the scope and coverage of this target to include additional
suppliers.

Comment
Furthermore, we actively engage with our suppliers through CDP Supply Chain programand aim to continue doing so in the future. Through this program PMI requests relevant
information from its suppliers, and promotes transparent reporting on relevant Climate
related issues, including the further development of their climate related strategies.

317

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C12.1b
(C12.1b) Give details of your climate-related engagement strategy with yourcustomers.

Type of engagement & Details of engagement
Education/information sharing
Run an engagement campaign to education customers about your climate change
performance and strategy% of customers by number
100% of customer - related Scope 3 emissions as reported in C6.5
80

Please explain the rationale for selecting this group of customers and scopeof engagement
We engage 100% of our consumers (i.e., please read same as customers) on climaterelated issues as we recognize that increased climate action expectations and shifting
consumer preferences are important for us. Consumer related emissions are 80% of
total downstream emissions (Use and End of Life of product categories). Failing todevelop an effective GHG emission reduction strategy that addresses impacts fromdirect operations and supply chains, as well as developing products that areenvironmentally friendly, can have significant impacts on our operations. Additionally,
our consumers insights on our climate targets, performance and products can help us
understanding our market potential and further opportunities. For these reasons, we
engage 100% of our consumers through several direct and indirect initiatives, incl.
raising awareness on environmental issues through education campaigns, as well assourcing agri-commodities and developing innovative and environmentally friendly
products.
Our strategic business transformation towards a smoke-free future, replacing cigarettes
with Smoke-Free Products (SFP), has changed our operating model, organizational
structure and culture and accelerated our evolution to a consumer-centric, technology
and science-driven company. Beyond offering smokers less harmful alternatives tocigarettes, we also aim to reduce our products’ environmental footprint by integrating
circularity considerations at the design stage and strengthening our used devices
collection and recovery programs. As part of our business transformation, we strive tocontinuously share our efforts on sustainability and climate-change related issues,
engaging with all our stakeholders, including consumers, by means of publicly disclosing
our annual Integrated Report, communication campaigns and our CDP disclosures,
demonstrating our achievements related, for instance, to our Science Based emission
reduction Targets.

Impact of engagement, including measures of success318

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

When it comes to educating our consumers (i.e., same as customers) on PMI’s climate
strategy and performance, PMI relies on online platforms and other materials as main
method of engagement. In this context, our measure of success is based on two
components: 1) PMI’s ability to provide clear and transparent information regarding
current and future direct and indirect climate impacts from its overall global operations tostakeholders (incl. customers); 2) leveraging on findings from customer surveys toassess and inform PMI’s sustainability strategy incl. climate change. Through a suite ofexternal publications, we seek to transparently disclose our direct and indirectenvironmental impacts, incl. climate. Such online available publications include PMI’s
Low Carbon Transition Plan published in 2021, or the annual Integrated Report (latest
issue in early 2023).
We monitor traffic in various sustainability resources (incl. climate) by measuring accessevolution over time (+91% vs. 2022, +42% vs. 2022), and downloads (+6% vs. 2022, 32% vs. 2021).
Another example of PMI’s engagement is the use of surveys. In 2022 PMI carried out 7
surveys with over 5,000 users in 10 key SFP markets. These concerned evaluation of
our new sustainability initiatives in the product, packaging and services’ areas.
Threshold for success is defined by survey cycle (i.e., variable), and in this case set as
achieving increase (YoY) in positivity towards the brand, a target that was achieved.
Results provided valuable insights on our consumers’ view and evaluation, withpositivity towards the brand increasing by 20% when consumers were exposed to
relevant communications of our company’s efforts in the sustainability space. E.g., newinitiatives tested with users included our new proposition of Refreshed, pre-owned
devices that has been seen as an appealing, smart proposition able to increase LAS’
NPS by 14 points with the re-sell of over 90,000 devices across 9 markets. A reductionof our plastic packaging led to a 41 points NPS’ uplift. This feedback enables PMI todesign mechanics, assets and campaigns for these programs and, thus, integrate themin the design of our SFP roadmap and branding campaign, e.g., continued focus on
scaling our end-of-life take-back programs for smoke-free consumables, with 8.5%
shipment volumes covered in 2022 and a commitment to reach 80% by 2025.

C12.1d(C12.1d) Give details of your climate-related engagement strategy with other partners
in the value chain.
In our value chain we engage with our employees and global partners through a two-folded
strategy that focuses on training initiatives and continuously renewing our fleet to more ecofriendly vehicles. In some countries where we operate, eco-driving training is conducted topromote more environmental-friendly practices by our drivers, resulting for example in fuelsavings, and consequently reduction in carbon emissions and air pollutions at local level.
Driving efficiency in reducing carbon emissions is key in all business areas of PMI that
contribute to the carbon footprint of the company.
Our fleet carbon emissions are essential to address as 1) they constitute a daily and constant
impact to the environment, 2) showing leadership in tackling fleet carbon emissions is atangible action in line with PMI leading practices in sustainability, and 3) it is an important driverof behavioral change since vehicles are part of the daily routine of many employees in markets
319

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

where PMI operates. Transformation strategies start from behavioral changes and PMI wants
to be a catalyst in each area of improvement. By the end of 2022, 71% of company drivers had
either been part of the first cohort to complete the program or had commenced as a member ofcohort 2. Cohort 1, representing 25% of our drivers, had an overall module completion rate of
94.3%. Cohort 2, representing 46% of our drivers, finished 2022 with a module completion rateof 82.6%. We expect this figure to increase as the program progresses through 2023. Allremaining drivers are expected to commence the program as part of cohort 3 by the end of2023.
By the end of 2022, 65% of our working-tool cars were equipped with telematics. This provides
the driver and the company with proactive driving behavior data, which aids our reduction incarbon emissions amongst other safety related benefits. We aim to have all our working-toolvehicles equipped with telematics and new ways of working in the medium term.
These initiatives will contribute to the overall reduction in our fleet emissions from the 2019baseline which we assess as measure of success of our engagement and the overall strategy.

C12.2(C12.2) Do your suppliers have to meet climate-related requirements as part of yourorganization’s purchasing process?
Yes, climate-related requirements are included in our supplier contracts

C12.2a(C12.2a) Provide details of the climate-related requirements that suppliers have tomeet as part of your organization’s purchasing process and the compliancemechanisms in place.

Climate-related requirement
Setting a science-based emissions reduction target

Description of this climate related requirement
With over 30,000 tier 1 suppliers globally, our supply chain spend amounted toapproximately USD 12.6 billion in 2022. Our global supply chain is organized into two
main streams—direct spend (tobacco leaf, direct materials, electronic devices andadvanced procurement) and indirect spend (technical procurement, R&D expenditure,indirect materials and services). From a sustainability standpoint, the supply chain
categories exposed to the highest risks pertain to our direct spend. Likewise, our mostcarbon-intensive supplies are the direct materials used in the manufacturing of our
products, such as cellulose acetate tow, pulp and paper, and our smoke-free electronic
devices; together direct spend suppliers represent 56% of our Scope 3 emissions. Dueto the relevance of direct spend suppliers in terms of carbon intensity, spend andexposure to climate risks, PMI is engaging these suppliers as part of a Science Based
Target for supplier engagement. Through this target, suppliers representing 15% of our
total spend (up to 40% of PMI’s direct spend suppliers), will be adopting Science Based
Targets by 2025. Over the next years, PMI is expecting to maintain and expand the320Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

scope and coverage of this target to include additional suppliers, despite expectedchanges in spend allocation due to volume reallocation and change of suppliers as partof the company’s transition to smoke-free products.

% suppliers by procurement spend that have to comply with this climaterelated requirement15% suppliers by procurement spend in compliance with this climate-related
requirement
35

Mechanisms for monitoring compliance with this climate-related requirement
Certification
First-party verification

Response to supplier non-compliance with this climate-related requirement
Retain and engage

Climate-related requirement
Complying with regulatory requirements

Description of this climate related requirement
Our Responsible Sourcing Principles (RSP) provides our suppliers with PMI’s
expectations in the areas of human rights, environment, and business integrity. The
environment section covers environmental compliance and management, and resource
consumption and waste minimization. In the area of climate change, our RSP
encourages suppliers to review, identify and minimize their environmental impacts,
especially regarding land use, waste, emissions, energy and water consumption. Our
RSP also encourages supplier to set targets for improvement, measure performanceand report on them. The RSP applies to all suppliers doing business with PMI. In
addition, tobacco suppliers and their farmers follow our Good Agricultural Practices(GAP) program. GAP lays out extensive agricultural environmental practices for farmers
to adopt; covering effective farming techniques, the safe storage, handling and use ofchemicals (crop protection agents), water and waste management, energy and raw
material efficiency.
Compliance with these requirements are focuses on critical suppliers, as defined:
Critical Suppliers are those Tier 1 and Tier 2 managed suppliers who manufacture orsell components used in the manufacture of PMI finished products with a minimum
yearly spend > $0.5 million and all Electronics suppliers Tier 1 and Tier 2 who arecommercially managed by PMI. All tobacco farmers directly contracted by PMI affiliatesor by our third-party tobacco suppliers are considered critical suppliers.

% suppliers by procurement spend that have to comply with this climaterelated requirement100321Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

% suppliers by procurement spend in compliance with this climate-related
requirement
35

Mechanisms for monitoring compliance with this climate-related requirement
Certification
Supplier self-assessment
First-party verification
Supplier scorecard or rating

Response to supplier non-compliance with this climate-related requirement
Retain and engage

C-AC12.2/C-FB12.2/C-PF12.2(C-AC12.2/C-FB12.2/C-PF12.2) Do you encourage your suppliers to undertake any
agricultural or forest management practices with climate change mitigation and/or
adaptation benefits?
Yes

C-AC12.2a/C-FB12.2a/C-PF12.2a(C-AC12.2a/C-FB12.2a/C-PF12.2a) Specify which agricultural or forest management
practices with climate change mitigation and/or adaptation benefits you encourage
your suppliers to undertake and describe your role in the implementation of eachpractice.

Management practice reference number
MP1

Management practice
Other, please specify
Good Agricultural Practices Program

Description of management practice
Tobacco growing, harvesting and curing account for around 20 percent of our carbon
footprint. We are working with farming communities to reduce the environmental
footprint of tobacco curing and growing. We do that through our Good Agricultural
Practices (GAP) program and strategic initiatives such as curing barn improvements andreforestation. GAP lays out extensive agricultural environmental practices for farmers to
adopt; these practices cover effective farming techniques, the safe storage, handlingand use of chemicals (crop protection agents), water and waste management, energy
and raw material efficiency. GAP also covers soil management/conservation,
biodiversity and the sustainable use of wood. GAP implementation helped us to abate
unfavorabilities in carbon emissions in our tobacco supply chain in 2022, contributing to322

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

emission reduction for example in mechanization activities, seedling preparation andtransportation.

Your role in the implementation
Financial
Knowledge sharing

Explanation of how you encourage implementation
We mandate GAP implementation for all PMI tobacco suppliers. Our Leaf department
supports our suppliers in implementing GAP and, where we directly contract farmers,
our field technicians provide direct support and recommendations. We allocate anannual budget to initiatives to catalyze the adoption of improved and innovative
practices by the farmers in our supply chain (i.e. in 2022 $2.5 million for initiatives
specific to environmental related topics such as climate change, water security andcombat deforestation). Similar yearly expenditure is expected over the next 10 years.

Climate change related benefit
Emissions reductions (mitigation)
Increasing resilience to climate change (adaptation)

Comment
In line with our GAP principles, genetically modified (GM) tobacco is not acceptable to
PMI. We have solid programs in place to avoid the inadvertent introduction of GM
tobacco into the products we commercialize.

C-AC12.2b/C-FB12.2b/C-PF12.2b(C-AC12.2b/C-FB12.2b/C-PF12.2b) Do you collect information from your suppliers
about the outcomes of any implemented agricultural/forest management practices
you have encouraged?
Yes

C12.3
(C12.3) Does your organization engage in activities that could either directly or
indirectly influence policy, law, or regulation that may impact the climate?
Row 1
External engagement activities that could directly or indirectly influence
policy, law, or regulation that may impact the climate
Yes, we fund organizations or individuals whose activities could influence policy, law, or
regulation that may impact the climate

Does your organization have a public commitment or position statement to
conduct your engagement activities in line with the goals of the Paris
Agreement?
Yes
323

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Attach commitment or position statement(s)PMI Code of Conduct
Overview of Engagement Principles
english_code_of_conduct_external_online_180116_compressed.pdf
overview-of-engagement-principles.pdf

Describe the process(es) your organization has in place to ensure that yourexternal engagement activities are consistent with your climate commitments
and/or climate transition plan
PMI operates within an overarching Code of Conduct (CoC), and a set of Principles andPractices which set the rules and processes that need to be followed when engaging
third parties. Together, these regulate engagement activities such as external
communications, public statements, making contributions or providing financial support,
and other relevant activities involving government officials, public organizations andother third parties. PMI has a publicly available ‘Overview of engagement principles’
which describes the basic tents of the CoC and our key principles and practices, andhighlights PMI’s key priorities when interacting with these stakeholders, including
ensuring that the positions PMI publicly advocates, and the arguments supporting such
positions are consistent with internal positions and do not overlook any information that
PMI may internally have that might be material to our audience. PMI has an internal
Compliance Department and help-line available to employees wanting to reportsuspected violations of our Code of Conduct or Principles & Practices. Reports can bemade anonymously.
We routinely evaluate our participation to ensure the objectives of the external parties
we engage with align with our long-term interests, and that their activities continue tocomply with our CoC and policies. If inconsistencies or disagreement with certain
positions adopted by organizations are found, PMI may withdraw its participation or
support.

C12.3c(C12.3c) Provide details of the funding you provided to other organizations or
individuals in the reporting year whose activities could influence policy, law, or
regulation that may impact the climate.

Type of organization or individual
Other, please specify
Non-profit organization

State the organization or individual to which you provided funding
Business for Social Responsibility

Funding figure your organization provided to this organization or individual in
the reporting year (currency as selected in C0.4)

324

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

45,000Describe the aim of this funding and how it could influence policy, law or
regulation that may impact the climate
The reported funding figure (expressed in USD and related to calendar year 2022)
covers PMI’s annual membership fee to the organization and participation in one
working group, which may indirectly fund activities which could influence policy, law, or
regulation that may impact the climate
BSR publishes “public research funded by civil society, business, academic, andgovernment partners to inform actions and policies on critical environmental and social
challenges.” (Source: https://www.bsr.org/en/research)
It also hosts the following collaborative initiatives of companies which may influence
climate policy: (Source: https://www.bsr.org/en/collaboration/list)
We Mean Business Coalition: companies and investors creating a low-carbon revolution
Action for Sustainable (Palm) Derivatives
Business Alliance to Scale Climate Solutions
Centering Health Equity within Climate Action
Energy for a Just Transition
Future of Reporting
Sustainable Air Freight AllianceTransform to Net Zero

Have you evaluated whether this funding is aligned with the goals of the Paris
Agreement?
Yes, we have evaluated, and it is aligned

Type of organization or individual
Non-Governmental Organization (NGO) or charitable organization

State the organization or individual to which you provided funding
World Business Council for Sustainable Development

Funding figure your organization provided to this organization or individual in
the reporting year (currency as selected in C0.4)
256,139

Describe the aim of this funding and how it could influence policy, law or
regulation that may impact the climate
The reported funding figure (expressed in USD, converted from CHF 236.940 (incl.
7.7% VAT) – xe.com rate from 31.12.2022 – and related to calendar year 2022) covers
PMI’s annual membership fee and participation in various WBCSD’s Working Groups
which may indirectly fund activities which could influence policy, law, or regulation that
may impact the climate.
WBCSD is a CEO-led community of over 200 of the world’s leading sustainablebusinesses working collectively to accelerate the system transformations needed for a
325

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

net-zero, nature positive, and more equitable future. It does this by engaging executives
and sustainability leaders from business and elsewhere to share practical insights on
the obstacles and opportunities in tackling the integrated climate, nature and inequality
sustainability challenge; by co-developing “how-to” CEO-guides from these insights; byproviding science-based target guidance including standards and protocols; and by
developing tools and platforms to help leading businesses in sustainability drive
integrated actions to tackle climate, nature and inequality challenges across sectors andgeographical regions. (Source: https://www.wbcsd.org/))
Here (https://www.wbcsd.org/Imperatives/Climate-Action) is a summary of WBSCD’s
climate-related work which may influence climate policy including working groups,
publications, collective action by companies, events, and more. WBCSD actively
engages in the major international environmental summits such as COPs on climate andbiodiversity.

Have you evaluated whether this funding is aligned with the goals of the Paris
Agreement?
Yes, we have evaluated, and it is aligned

C12.4(C12.4) Have you published information about your organization’s response to climatechange and GHG emissions performance for this reporting year in places other thanin your CDP response? If so, please attach the publication(s).

Publication
In mainstream reports, incorporating the TCFD recommendations

StatusComplete

Attach the documentpmi-tcfd-report-2022.pdf
pmi_2022_annualreport.pdf
pmi-integrated-report-2022.pdf
PMI 2023 Proxy Statement.pdf

Page/Section reference
Integrated report: amongst others, details on environmental performance p134-1162(operational) and p78-91 (product).
TCFD Report: governance p5-7, strategy p9-20, risk management p22-25, metrics &targets p27-33
Annual Report on Form 10-K: response to environmental regulation incl. climate change
p6/12, climate-related risks and their potential impact on procurement and raw materials

326

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

p4.
Proxy statement filed with the U.S. Security and Exchange Commission: company
performance and targets p49

Content elements
Governance
Strategy
Risks & opportunities
Emissions figures
Emission targets
Other metrics

Comment
PMI has an Integrated Report in place which describes how the company creates value
over the short, medium and long terms. Additionally, PMI integrates climate-related
elements regarding the company’s climate related risks and response as part of its
Annual Report on Form 10-K and Proxy Statement, filled with the U.S. Security andExchange Commission. In its journey towards integrated reporting, PMI published its
Integrated Report in 2022 in accordance with the GRI Standards: core option, which
includes an integrated overview of PMI’s performance, covering, among others, alsofinancial information. Its contents are shaped by a formal materiality assessment, which
considers stakeholder perspectives as well as our impacts on sustainable development.
Climate protection is assessed as tier 1 topic for PMI, for which an extensive program isin place.
We periodically conduct a climate change risks and opportunities assessment to fully
understand PMI’s impact across our entire value chain. This work aligns withinternational expectations such as the Paris Agreement to mitigate and adapt to climate
impacts.
Scenario analysis formed part of the climate change risks and opportunities assessment
we conducted in 2022 on physical and transition risks and opportunities. 2019 is set as
the new baseline year for our decarbonization targets, including the validation of ourrevised Science Based targets based on the 1.5 °C trajectory, as well as our net zerocommitment. In early 2023 the company released its first-ever TCFD Report to respondto the implementation guidance of the Task Force on Climate-related Financial
Disclosures (TCFD), which aims to foster voluntary climate-related disclosures thatprovide clear, reliable, and useful information to the financial community.

C12.5(C12.5) Indicate the collaborative frameworks, initiatives and/or commitments related
to environmental issues for which you are a signatory/member.
Environmental
collaborative
framework, initiative
and/or commitment

Describe your organization’s role within each framework,
initiative and/or commitment

327

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Row Business Ambition for
1
1.5C
Race to Zero Campaign
Science Based Targets
Network (SBTN)
Task Force on Climaterelated Financial
Disclosures (TCFD)
Task Force on Naturerelated Financial
Disclosures (TNFD)World Business Council
for Sustainable
Development (WBCSD)- Business Ambition for 1.5C. PMI is one of more than a thousandcompanies worldwide to commit to set ambitious 1.5°C and net-zeroaligned targets at the pace and scale required by science and assuch is listed under the SBTN and UNGP's Business Ambition
for1.5.
- Race to Zero campaign. As part of its SBTi Commitment, PMI islisted as a company in the Race to Zero Campaign.
- Science Based Targets Network (SBTN). PMI has an SBTI
validated target for net zero by 2040.
- Task Force on Climate-related Financial Disclosures (TCFD). We
are Official Supporters of the TCFD: By publicly declaring support
for the TCFD and its recommendations, companies demonstrate thatthey are taking action to build a more resilient financial systemthrough climate-related disclosure, having published our inaugural
TCFD Report in early 2023.
- Task Force on Nature-related Financial Disclosures (TNFD). We
are official members of the TNFD Forum. Organizations who sharethe vision and mission of the TNFD and are willing to makethemselves available to contribute to the work and mission of theTaskforce, can apply to join the TNFD Forum.
- World Business Council for Sustainable Development (WBCSD).
PMI is an active member of the World Business Council for
Sustainable Development.

C13. Other land management impacts
C-AC13.2/C-FB13.2/C-PF13.2(C-AC13.2/C-FB13.2/C-PF13.2) Do you know if any of the management practices
mentioned in C-AC12.2a/C-FB12.2a/C-PF12.2a that were implemented by yoursuppliers have other impacts besides climate change mitigation/adaptation?
Yes

C-AC13.2a/C-FB13.2a/C-PF13.2a(C-AC13.2a/C-FB13.2a/C-PF13.2a) Provide details of those management practices
implemented by your suppliers that have other impacts besides climate change
mitigation/adaptation.

Management practice reference number
MP1

Overall effectPositive
328

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Which of the following has been impacted?
Other, please specify
Environmental Management

Description of impacts
In addition to greenhouse gas emissions, environmental impacts of our suppliers can
include impacts to:• Air, such as through sulfur dioxide emissions from burning fuel oil in boilers which canlead to acid rain;• Water, such as wastewater discharge from plating operations, which can lead topoisoning of fish and metal contamination of plants;• Soil, such as through leakages from storage tanks which could lead to soil
contamination

Have any response to these impacts been implemented?
Yes

Description of the response(s)The environment section of our Responsible Sourcing Principles (RSP) and
Implementation Guidelines covers environmental compliance and management, andresource consumption and waste minimization. Our RSP encourages suppliers toreview, identify and minimize their environmental impacts.

Management practice reference number
MP2

Overall effectPositive

Which of the following has been impacted?
Biodiversity
Soil
Other, please specify
Human Health & Labor Practices

Description of impacts
The environmental impact of tobacco farming can be significant, and the GAP programis therefore crucial for managing and reducing our overall environmental footprint.
In addition to greenhouse gas emissions, traditional tobacco farming uses hazardous
Crop Protection Agents (CPA) that have adverse impacts on biodiversity, soil, water andhuman health.

Have any response to these impacts been implemented?
Yes

Description of the response(s)329Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Due to the nature of PMI’s business, there are no significant impacts on biodiversity or
deforestation from our own operations. Where we do have a larger role to play on
biodiversity is in our agricultural supply chain. Impacts linked to tobacco farming are
addressed through our Good Agricultural Practices program for tobacco suppliers,
where we describe our requirements for good environmental practices, including
integrated pest management and soil conservation practices, as well as biodiversity
management.
GAP provides guidance on biodiversity management practices and requires our tobacco
suppliers to develop and implement a biodiversity management plan that incorporates,and goes beyond compliance with the applicable laws, and regulations for tobacco- andforest‑growing areas. Tobacco production areas must not be located in places that could
cause negative effects on national parks, wildlife refuges, biological corridors, forestry
reserves, buffer zones, or other public or private biological conservation areas.

C15. Biodiversity
C15.1(C15.1) Is there board-level oversight and/or executive management-level
responsibility for biodiversity-related issues within your organization?
Board-level oversightand/or executive
management-level
responsibility forbiodiversity-related
issuesRow Yes, both board-level1
oversight and executive
management-level
responsibility

Description of oversight and objectives relating tobiodiversity

PMI’s Board of Directors (BoD) and its Committees, incl. theNominating and Corporate Governance Committee (NCGC) and
Audit Committee of the BoD, are responsible to foster the longterm success of the company incl. setting broad corporate
policies, strategic direction, and overseeing management, whichis responsible for daily operations. The BoD considers thatenvironmental, social and governance (ESG) factors, including
climate change, are relevant to the company’s business andlong-term success. As part of their responsibilities, the BoD
revises and approves PMI’s annual budget that includes
resources required to deploy initiatives to achieve ourenvironmental targets.
PMI works towards protecting natural environment as coreelements of PMI’s sustainable corporate strategy and decisionmaking processes.
As PMI’s transition to a smoke-free future will require moreenergy, more materials and more water to produce heated330Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

tobacco units compared to cigarettes and it could result inincreased environmental impact such as biodiversity losses, it isimportant to reduce this potential impact through effective
projects.
Since 2018 the BoD mandated the NCGC of the Board,
composed of 5 BoD members at the time of the 2023 Proxy
Statement filing, to oversee PMI’s sustainability strategies andperformance, including to provide recommendations to executive
management on climate change-related issues, and on a set of
initiatives aiming at actively reduce potential negative impacts ofour business on the environment.
In 2021, among other items, PMI’s BoD reviewed the results of
PMI’s sustainability materiality assessment. As part of thisrevision, it was decided to update PMI’s climate targets bydeveloping long-term science-based targets, and to establish
PMI’s Sustainability Index (which includes KPIs related to carbon
emission reductions and sustainable forestry) and use this as
one of PMI’s performance metrics in the three-year incentive
executive compensation program. PMI’s Integrated Report
2022—that constitutes the main external communication of PMI
on sustainability performance, including regarding biodiversity—
was completed with the oversight from PMI’s Board of Directors
and extensively reviewed by its Executive Chairman.

C15.2(C15.2) Has your organization made a public commitment and/or endorsed any
initiatives related to biodiversity?
Indicate whether yourorganization made a public
commitment or endorsed any
initiatives related tobiodiversity
Row Yes, we have made public
1
commitments and publicly
endorsed initiatives related tobiodiversity

Biodiversity-related
public commitments

Initiatives endorsed

Commitment to Net Positive CBD – Global Biodiversity
Gain
Framework
Commitment to No Net
Loss
Adoption of the mitigation
hierarchy approach
Commitment to not explore
or develop in legallydesignated protected areas

SDG
Other, please specify- Business for Nature Science Based Targets for
Nature -Taskforce on
Nature related Financial
Disclosure

331

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Commitment to respect
legally designatedprotected areas
Commitment to avoidanceof negative impacts on
threatened and protected
speciesCommitment to secure
Free, Prior and Informed
Consent (FPIC) of
Indigenous Peoples

C15.3(C15.3) Does your organization assess the impacts and dependencies of its value
chain on biodiversity?
Impacts on biodiversity
Indicate whether your organization undertakes this type of assessment
Yes

Value chain stage(s) covered
Direct operations
Upstream

Tools and methods to assess impacts and/or dependencies on biodiversity
GBS – Global Biodiversity Score
IBAT – Integrated Biodiversity Assessment Tool
SBTN materiality toolSTAR – Species Threat Abatement and Restoration metric
TNFD – Taskforce on Nature-related Financial Disclosures

Please explain how the tools and methods are implemented and provide anindication of the associated outcome(s)In 2022, PMI completed two analyses to better understand its biodiversity footprint anddefine key action areas. They are the following: a biodiversity extent, condition andsignificance (BECS) as a land-based assessment to define biodiversity loss within our
supply chain and direct operations and a Global Biodiversity Score (GBS) to focus on
potential losses driven by resource use. We have chosen these two methodologies inline with our materiality assessment that highlighted the significant role of our landbased impacts in upstream activities linked to land use and the exploitation of natural
resources such as soil and water. The assessments are performed on primary dataobtained through our wide stakeholder engagement programs focusing on tobacco anddirect materials and retrieving geographical information through the definition ofgeoreferenced areas of interest (AOIs) to link ecosystem attributes to the polygons
representing PMI’s sourcing areas and direct operations sites such as factories and332

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

warehouses. The outcomes highlight ecosystem use and use change in the supply
chain and especially for tobacco agriculture and paper & pulp based materials
production as the greatest driver for potential biodiversity losses linked to land use. Ourfootprint calculated through BECS and in relation to the defined scope, resulted for 2022
in 3,471 MSA.km2 with tobacco growing and curing representing more than 50%.
Pollution and water use were identified as the main pressures on natural resources for
non-land-based outcomes and robustly correlated to commercial agriculture, PMI’s GBS
amounts to 405 MSA.km2 with tobacco scoring higher than any other business area.
PMI determines priorities on addressing exposure to ecosystem degradation through theuse of spatial analysis and leveraging on the outputs of the Integrated Biodiversity
Assessment Tool (IBAT) to pinpoint relevant actions in line with the mitigation hierarchy.
We continue to follow the guidance from Science Based Targets for Nature inmeasuring and disclosing impacts and dependencies as a basis of a thorough set ofactions to achieve a no net loss status in 2033.

Dependencies on biodiversity
Indicate whether your organization undertakes this type of assessment
Yes

Value chain stage(s) covered
Direct operations
Upstream

Tools and methods to assess impacts and/or dependencies on biodiversity
SBTN materiality tool
TNFD – Taskforce on Nature-related Financial Disclosures

Please explain how the tools and methods are implemented and provide anindication of the associated outcome(s)PMI is following with close attention the development of the Science Based Target for
Nature (SBTN) initiative and through its active participation to the Nature related working
groups of WBCSD is also constantly involved in testing the guidance for corporations
that SBTN has progressively made public in the last two years. The SBTN approach has
been applied to define the basic elements of the scope for the application of targets:
organizational, value chain, issue and temporal scopes allowed us to have an improved
understanding of potential impacts and dependencies on Nature and to apply correct
assumptions. The connection between SBTN and TNFD is robust as setting targets
needs to be approached with already having the intention of reporting and assessing
performance to targets and dependencies and impacts that define the relationship of thebusiness with Nature. PMI, together with a selected group of companies, has piloted in
2022 the LEAP (Locate, Evaluate, Assess, Prepare) approach of TNFD to better
prepare to act in line with the framework’s recommended disclosure. The resulting
database created through the application of tools and methods from SBTN and TNFD
allowed us to calculate the first ever biodiversity footprint for PMI. We defined which are
the key pressures that determine our dependencies and especially our impacts on
Nature. Ecosystem use and use change proved to be the most significant especially333

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

related to our upstream while resource utilization and pollution scored relatively higher
for our direct operations. The processed information supported our sustainability teams
in engaging internally and externally with relevant stakeholders to discuss and analyze
actions that address impact reduction while minimizing risk on dependencies. We
leverage our zero deforestation and no natural ecosystem conversion program for ourforest-based materials in the upstream. We rely on our continuous improvement
programs such as our Drive four Zero in our direct operations to reduce ourdependencies from natural resources and contribute to the achievement of net positive
context goals in line with our No Net Loss 2033 ambition on our value chain.

C15.4(C15.4) Does your organization have activities located in or near to biodiversitysensitive areas in the reporting year?
Yes

C15.4a(C15.4a) Provide details of your organization’s activities in the reporting year locatedin or near to biodiversity -sensitive areas.

Classification of biodiversity -sensitive area
Key Biodiversity Area (KBAs)

Country/area
Venezuela (Bolivarian Republic of)Name of the biodiversity-sensitive area
Pico Jenjibre (VE)

Proximity
Up to 5 km

Briefly describe your organization’s activities in the reporting year located inor near to the selected area
The proximity to biodiversity sensitive areas was determined through the use of spatial
analysis using PMI’s internal geospatial business intelligence and applying the Key
Biodiversity Area classification available in IBAT (Integrated Biodiversity Assessment
Tool). Further validation was done through the IUCN protected area management
categories applied as a geospatial layer overlaid to our PMI proprietary base map ofrelevant assets such as production facilities, warehouses and office buildings. The sites
with proximity attributes to the sensitive biodiversity areas are production sites andwarehouses that are located within 5 km of distance from boundaries of the areas
reported as protected or managed for biodiversity. The management of potential
consequences of industrial activities in proximity of the sensitive areas is carried forward
thanks to ISO14001 standard and the Environmental Impact Assessments that are
334

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

covering all our production facilities evaluating all the relevant aspects that can harm thebiodiversity and defining, if needed, the most appropriate mitigation actions. We plan tofurther strengthen the biodiversity management plans of PMI sites that fall within arelevant proximity distance from biodiversity sensitivity areas as we continue thedevelopment of our biodiversity strategy on No Net Loss on ecosystem use and usechange by 2033.

Indicate whether any of your organization’s activities located in or near to theselected area could negatively affect biodiversity
Yes, but mitigation measures have been implemented

Mitigation measures implemented within the selected area
Physical controls
Operational controls

Explain how your organization’s activities located in or near to the selectedarea could negatively affect biodiversity, how this was assessed, and describe
any mitigation measures implemented
With the analysis PMI has done in 2022 on relevant pressure drivers of biodiversity loss,
results indicate that ecosystem use, and use change are the most impactful drivers in
our value chain. Next to this, the use of resources and pollution that could be linked toour direct operations plays a minor but still significant role. PMI sites are built andmanaged following strict regulations in terms of environmental impact assessment andenvironmental management systems. On top of legal and regulatory compliance weinclude all our production facilities in our environmental strategy programs that include
ISO14001 certification as well as AWS (Alliance for Water Stewardship) certification forsustainable water management and stewardship for our priority factories. On top ofsustainability initiatives and programs, our sites are managed based on continuous
improvement approaches that are reflected in our drive for zero (D40) program thatprioritizes operational efficiency and operational loss reduction in line with the concept ofresources conservation and impact minimization. Our programs and applied standards
contribute to reducing and avoiding negative pressures and conserve the intactness of
biodiverse ecosystems. Our thorough mapping and monitoring of the presence andstatus of biodiverse relevancies is a clear indication of the importance we are reserving
to locate, evaluate, assess and prepare which are nature management step-stages inline with TNFD guidance for corporations. Through mapping and constant dataacquisition we improve the understanding of potential issues occurring in proximity to
our sites. The use of tools like IBAT and in particular the metrics STAR gives us
increased visibility on threats and restoration potential which are key indicators at thebasis of protecting and conserving biological diversity in sensitive sites. We operate atsite level as well as with a broader stakeholder outreach and engagement that iscentered on environmental stewardship and especially the protection of natural
resources such as water.

Classification of biodiversity -sensitive area
335

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Key Biodiversity Area (KBAs)

Country/area
Czechia

Name of the biodiversity-sensitive area
National nature monument (CZ)

Proximity
Up to 5 km

Briefly describe your organization’s activities in the reporting year located inor near to the selected area
The proximity to biodiversity sensitive areas was determined through the use of spatial
analysis using PMI’s internal geospatial business intelligence and applying the Key
Biodiversity Area classification available in IBAT (Integrated Biodiversity Assessment
Tool). Further validation was done through the IUCN protected area management
categories applied as a geospatial layer overlaid to our PMI proprietary base map ofrelevant assets such as production facilities, warehouses and office buildings. The sites
with proximity attributes to the sensitive biodiversity areas are production sites andwarehouses that are located within 5 km of distance from boundaries of the areas
reported as protected or managed for biodiversity. The management of potential
consequences of industrial activities in proximity of the sensitive areas is carried forward
thanks to ISO14001 standard and the Environmental Impact Assessments that arecovering all our production facilities evaluating all the relevant aspects that can harm thebiodiversity and defining, if needed the most appropriate mitigation actions. We plan tofurther strengthen the biodiversity management plans of PMI sites that fall within arelevant proximity distance from biodiversity sensitivity areas as we continue thedevelopment of our biodiversity strategy on No Net Loss on ecosystem use and usechange by 2033.

Indicate whether any of your organization’s activities located in or near to theselected area could negatively affect biodiversity
Yes, but mitigation measures have been implemented

Mitigation measures implemented within the selected area
Physical controls
Operational controls

Explain how your organization’s activities located in or near to the selectedarea could negatively affect biodiversity, how this was assessed, and describe
any mitigation measures implemented
With the analysis PMI has done in 2022 on relevant pressure drivers of biodiversity loss,
results indicate that ecosystem use, and use change are the most impactful drivers in
our value chain. Next to this the use of resources and pollution that could be linked toour direct operations plays a minor but still significant role. PMI sites are built andmanaged following strict regulations in terms of environmental impact assessment andenvironmental management systems. On top of legal and regulatory compliance we
336

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

include all our production facilities in our environmental strategy programs that include
ISO14001 certification as well as AWS (Alliance for Water Stewardship) certification forsustainable water management and stewardship for our priority factories. On top ofsustainability initiatives and programs, our sites are managed based on continuous
improvement approaches that are reflected in our drive for zero (D40) program thatprioritizes operational efficiency and operational loss reduction in line with the concept ofresources conservation and impact minimization. Our programs and applied standards
contribute to reducing and avoiding negative pressures and conserving the intactness of
biodiverse ecosystems. Our thorough mapping and monitoring of the presence andstatus of biodiverse relevancies is a clear indication of the importance we are reserving
to locate, evaluate, assess and prepare which are nature management step-stages inline with TNFD guidance for corporations. Through mapping and constant dataacquisition we improve the understanding of potential issues occurring in proximity to
our sites. The use of tools like IBAT and in particular the metrics STAR gives us
increased visibility on threats and restoration potential which are key indicators at thebasis of protecting and conserving biological diversity in sensitive sites. We operate atsite level as well as with a broader stakeholder outreach and engagement that iscentered on environmental stewardship and especially the protection of natural
resources such as water.

Classification of biodiversity -sensitive area
Key Biodiversity Area (KBAs)

Country/area
Germany

Name of the biodiversity-sensitive area
Dresdner Elbweisen Und Altame (DE)

Proximity
Up to 5 km

Briefly describe your organization’s activities in the reporting year located inor near to the selected area
The proximity to biodiversity sensitive areas was determined through the use of spatial
analysis using PMI’s internal geospatial business intelligence and applying the Key
Biodiversity Area classification available in IBAT (Integrated Biodiversity Assessment
Tool). Further validation was done through the IUCN protected area management
categories applied as a geospatial layer overlaid to our PMI proprietary base map ofrelevant assets such as production facilities, warehouses and office buildings. The sites
with proximity attributes to the sensitive biodiversity areas are production sites andwarehouses that are located within 5 km of distance from boundaries of the areas
reported as protected or managed for biodiversity. The management of potential
consequences of industrial activities in proximity of the sensitive areas is carried forward
thanks to ISO14001 standard and the Environmental Impact Assessments that arecovering all of our production facilities evaluating all the relevant aspects that can harm
337

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

the biodiversity and defining, if needed the most appropriate mitigation actions. We plan
to further strengthen the biodiversity management plans of PMI sites that fall within arelevant proximity distance from biodiversity sensitivity areas as we continue thedevelopment of our biodiversity strategy on No Net Loss on ecosystem use and usechange by 2033.

Indicate whether any of your organization’s activities located in or near to theselected area could negatively affect biodiversity
Yes, but mitigation measures have been implemented

Mitigation measures implemented within the selected area
Physical controls
Operational controls

Explain how your organization’s activities located in or near to the selectedarea could negatively affect biodiversity, how this was assessed, and describe
any mitigation measures implemented
With the analysis PMI has done in 2022 on relevant pressure drivers of biodiversity loss,
results indicate that ecosystem use and use change are the most impactful driver in ourvalue chain. Next to this the use of resources and pollution that could be linked to ourdirect operations plays a minor but still significant role. PMI sites are built and managed
following strict regulations in terms of environmental impact assessment andenvironmental management systems. On top of legal and regulatory compliance weinclude all our production facilities in our environmental strategy programs that include
ISO14001 certification as well as AWS (Alliance for Water Stewardship) certification forsustainable water management and stewardship for our priority factories. On top ofsustainability initiatives and programs, our sites are managed based on continuous
improvement approaches that are reflected in our drive for zero (D40) program thatprioritizes operational efficiency and operational loss reduction in line with the concept ofresources conservation and impact minimization. Our programs and applied standards
contribute to reduce and avoid negative pressures and conserve the intactness of
biodiverse ecosystems. Our thorough mapping and monitoring of the presence andstatus of biodiverse relevancies is a clear indication of the importance we are reserving
to locate, evaluate, assess and prepare which are nature management step-stages inline with TNFD guidance for corporations. Through mapping and constant dataacquisition we improve the understanding of potential issues occurring in proximity to
our sites. The use of tools like IBAT and in particular the metrics STAR gives us
increased visibility on threats and restoration potential which are key indicators at thebasis of protecting and conserving biological diversity in sensitive sites. We operate atsite level as well as with a broader stakeholder outreach and engagement that iscentered on environmental stewardship and especially the protection of natural
resources such as water.

Classification of biodiversity -sensitive area
Key Biodiversity Area (KBAs)
338

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Country/area
Netherlands

Name of the biodiversity-sensitive area
Nnn- Nb (NL)

Proximity
Up to 5 km

Briefly describe your organization’s activities in the reporting year located inor near to the selected area
The proximity to biodiversity sensitive areas was determined through the use of spatial
analysis using PMI’s internal geospatial business intelligence and applying the Key
Biodiversity Area classification available in IBAT (Integrated Biodiversity Assessment
Tool). Further validation was done through the IUCN protected area management
categories applied as a geospatial layer overlaid to our PMI proprietary base map ofrelevant assets such as production facilities, warehouses and office buildings. The sites
with proximity attributes to the sensitive biodiversity areas are production sites andwarehouses that are located within 5 km of distance from boundaries of the areas
reported as protected or managed for biodiversity. The management of potential
consequences of industrial activities in proximity of the sensitive areas is carried forward
thanks to ISO14001 standard and the Environmental Impact Assessments that arecovering all our production facilities evaluating all the relevant aspects that can harm thebiodiversity and defining, if needed the most appropriate mitigation actions. We plan tofurther strengthen the biodiversity management plans of PMI sites that fall within arelevant proximity distance from biodiversity sensitivity areas as we continue thedevelopment of our biodiversity strategy on No Net Loss on ecosystem use and usechange by 2033.

Indicate whether any of your organization’s activities located in or near to theselected area could negatively affect biodiversity
Yes, but mitigation measures have been implemented

Mitigation measures implemented within the selected area
Physical controls
Operational controls

Explain how your organization’s activities located in or near to the selectedarea could negatively affect biodiversity, how this was assessed, and describe
any mitigation measures implemented
With the analysis PMI has done in 2022 on relevant pressure drivers of biodiversity loss,
results indicate that ecosystem use and use change are the most impactful drivers in
our value chain. Next to this the use of resources and pollution that could be linked toour direct operations plays a minor but still significant role. PMI sites are built andmanaged following strict regulations in terms of environmental impact assessment andenvironmental management systems. On top of legal and regulatory compliance weinclude all our production facilities in our environmental strategy programs that include339

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

ISO14001 certification as well as AWS (Alliance for Water Stewardship) certification forsustainable water management and stewardship for our priority factories. On top ofsustainability initiatives and programs, our sites are managed based on continuous
improvement approaches that are reflected in our drive for zero (D40) program thatprioritizes operational efficiency and operational loss reduction in line with the concept ofresources conservation and impact minimization. Our programs and applied standards
contribute to reducing and avoiding negative pressures and conserving the intactness of
biodiverse ecosystems. Our thorough mapping and monitoring of the presence andstatus of biodiverse relevancies is a clear indication of the importance we are reserving
to locate, evaluate, assess and prepare which are nature management step-stages inline with TNFD guidance for corporations. Through mapping and constant dataacquisition we improve the understanding of potential issues occurring in proximity to
our sites. The use of tools like IBAT and in particular the metrics STAR gives us
increased visibility on threats and restoration potential which are key indicators at thebasis of protecting and conserving biological diversity in sensitive sites. We operate atsite level as well as with a broader stakeholder outreach and engagement that iscentered on environmental stewardship and especially the protection of natural
resources such as water.

Classification of biodiversity -sensitive area
Key Biodiversity Area (KBAs)

Country/area
PolandName of the biodiversity-sensitive area
Nowohuckie (PL)Proximity
Up to 5 km

Briefly describe your organization’s activities in the reporting year located inor near to the selected area
The proximity to biodiversity sensitive areas was determined through the use of spatial
analysis using PMI’s internal geospatial business intelligence and applying the Key
Biodiversity Area classification available in IBAT (Integrated Biodiversity Assessment
Tool). Further validation was done through the IUCN protected area management
categories applied as a geospatial layer overlaid to our PMI proprietary base map ofrelevant assets such as production facilities, warehouses and office buildings. The sites
with proximity attributes to the sensitive biodiversity areas are production sites andwarehouses that are located within 5 km of distance from boundaries of the areas
reported as protected or managed for biodiversity. The management of potential
consequences of industrial activities in proximity of the sensitive areas is carried forward
thanks to ISO14001 standard and the Environmental Impact Assessments that arecovering all our production facilities evaluating all the relevant aspects that can harm thebiodiversity and defining, if needed the most appropriate mitigation actions. We plan to340

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

further strengthen the biodiversity management plans of PMI sites that fall within arelevant proximity distance from biodiversity sensitivity areas as we continue thedevelopment of our biodiversity strategy on No Net Loss on ecosystem use and usechange by 2033.

Indicate whether any of your organization’s activities located in or near to theselected area could negatively affect biodiversity
Yes, but mitigation measures have been implemented

Mitigation measures implemented within the selected area
Physical controls
Operational controls

Explain how your organization’s activities located in or near to the selectedarea could negatively affect biodiversity, how this was assessed, and describe
any mitigation measures implemented
With the analysis PMI has done in 2022 on relevant pressure drivers of biodiversity loss,
results indicate that ecosystem use and use change are the most impactful driver in ourvalue chain. Next to this the use of resources and pollution that could be linked to ourdirect operations plays a minor but still significant role. PMI sites are built and managed
following strict regulations in terms of environmental impact assessment andenvironmental management systems. On top of legal and regulatory compliance weinclude all our production facilities in our environmental strategy programs that include
ISO14001 certification as well as AWS (Alliance for Water Stewardship) certification forsustainable water management and stewardship for our priority factories. On top ofsustainability initiatives and programs, our sites are managed based on continuous
improvement approaches that are reflected in our drive for zero (D40) program thatprioritizes operational efficiency and operational loss reduction in line with the concept ofresources conservation and impact minimization. Our programs and applied standards
contribute to reducing and avoiding negative pressures and conserving the intactness of
biodiverse ecosystems. Our thorough mapping and monitoring of the presence andstatus of biodiverse relevancies is a clear indication of the importance we are reserving
to locate, evaluate, assess and prepare which are nature management step-stages inline with TNFD guidance for corporations. Through mapping and constant dataacquisition we improve the understanding of potential issues occurring in proximity to
our sites. The use of tools like IBAT and in particular the metrics STAR gives us
increased visibility on threats and restoration potential which are key indicators at thebasis of protecting and conserving biological diversity in sensitive sites. We operate atsite level as well as with a broader stakeholder outreach and engagement that iscentered on environmental stewardship and especially the protection of natural
resources such as water.

Classification of biodiversity -sensitive area
Key Biodiversity Area (KBAs)

Country/area
341

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

SenegalName of the biodiversity-sensitive area
Niayes de Pikine (SN)

Proximity
Up to 5 km

Briefly describe your organization’s activities in the reporting year located inor near to the selected area
The proximity to biodiversity sensitive areas was determined through the use of spatial
analysis using PMI’s internal geospatial business intelligence and applying the Key
Biodiversity Area classification available in IBAT (Integrated Biodiversity Assessment
Tool). Further validation was done through the IUCN protected area management
categories applied as a geospatial layer overlaid to our PMI proprietary base map ofrelevant assets such as production facilities, warehouses and office buildings. The sites
with proximity attributes to the sensitive biodiversity areas are production sites andwarehouses that are located within 5 km of distance from boundaries of the areas
reported as protected or managed for biodiversity. The management of potential
consequences of industrial activities in proximity of the sensitive areas is carried forward
thanks to ISO14001 standard and the Environmental Impact Assessments that arecovering all our production facilities evaluating all the relevant aspects that can harm thebiodiversity and defining, if needed the most appropriate mitigation actions. We plan tofurther strengthen the biodiversity management plans of PMI sites that fall within arelevant proximity distance from biodiversity sensitivity areas as we continue thedevelopment of our biodiversity strategy on No Net Loss on ecosystem use and usechange by 2033.

Indicate whether any of your organization’s activities located in or near to theselected area could negatively affect biodiversity
Yes, but mitigation measures have been implemented

Mitigation measures implemented within the selected area
Physical controls
Operational controls

Explain how your organization’s activities located in or near to the selectedarea could negatively affect biodiversity, how this was assessed, and describe
any mitigation measures implemented
With the analysis PMI has done in 2022 on relevant pressure drivers of biodiversity loss,
results indicate that ecosystem use and use change are the most impactful driver in ourvalue chain. Next to this the use of resources and pollution that could be linked to ourdirect operations plays a minor but still significant role. PMI sites are built and managed
following strict regulations in terms of environmental impact assessment andenvironmental management systems. On top of legal and regulatory compliance weinclude all our production facilities in our environmental strategy programs that include
ISO14001 certification as well as AWS (Alliance for Water Stewardship) certification forsustainable water management and stewardship for our priority factories. On top of342

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

sustainability initiatives and programs, our sites are managed based on continuous
improvement approaches that are reflected in our drive for zero (D40) program thatprioritizes operational efficiency and operational loss reduction in line with the concept ofresources conservation and impact minimization. Our programs and applied standards
contribute to reducing and avoiding negative pressures and conserving the intactness of
biodiverse ecosystems. Our thorough mapping and monitoring of the presence andstatus of biodiverse relevancies is a clear indication of the importance we are reserving
to locate, evaluate, assess and prepare which are nature management step-stages inline with TNFD guidance for corporations. Through mapping and constant dataacquisition we improve the understanding of potential issues occurring in proximity to
our sites. The use of tools like IBAT and in particular the metrics STAR gives us
increased visibility on threats and restoration potential which are key indicators at thebasis of protecting and conserving biological diversity in sensitive sites. We operate atsite level as well as with a broader stakeholder outreach and engagement that iscentered on environmental stewardship and especially the protection of natural
resources such as water.

Classification of biodiversity -sensitive area
Key Biodiversity Area (KBAs)

Country/area
Switzerland

Name of the biodiversity-sensitive area
Gorges Du Seyon (CH)

Proximity
Up to 5 km

Briefly describe your organization’s activities in the reporting year located inor near to the selected area
The proximity to biodiversity sensitive areas was determined through the use of spatial
analysis using PMI’s internal geospatial business intelligence and applying the Key
Biodiversity Area classification available in IBAT (Integrated Biodiversity Assessment
Tool). AFurther validation was done through the IUCN protected area management
categories applied as a geospatial layer overlaid to our PMI proprietary base map ofrelevant assets such as production facilities, warehouses and office buildings. The sites
with proximity attributes to the sensitive biodiversity areas are production sites andwarehouses that are located within 5 km of distance from boundaries of the areas
reported as protected or managed for biodiversity. The management of potential
consequences of industrial activities in proximity of the sensitive areas is carried forward
thanks to ISO14001 standard and the Environmental Impact Assessments that arecovering all our production facilities evaluating all the relevant aspects that can harm thebiodiversity and defining, if needed the most appropriate mitigation actions. We plan tofurther strengthen the biodiversity management plans of PMI sites that fall within arelevant proximity distance from biodiversity sensitivity areas as we continue the343

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

development of our biodiversity strategy on No Net Loss on ecosystem use and usechange by 2033.

Indicate whether any of your organization’s activities located in or near to theselected area could negatively affect biodiversity
Yes, but mitigation measures have been implemented

Mitigation measures implemented within the selected area
Physical controls
Operational controls

Explain how your organization’s activities located in or near to the selectedarea could negatively affect biodiversity, how this was assessed, and describe
any mitigation measures implemented
With the analysis PMI has done in 2022 on relevant pressure drivers of biodiversity loss,
results indicate that ecosystem use and use change are the most impactful driver in ourvalue chain. Next to this the use of resources and pollution that could be linked to ourdirect operations plays a minor but still significant role. PMI sites are built and managed
following strict regulations in terms of environmental impact assessment andenvironmental management systems. On top of legal and regulatory compliance weinclude all our production facilities in our environmental strategy programs that include
ISO14001 certification as well as AWS (Alliance for Water Stewardship) certification forsustainable water management and stewardship for our priority factories. On top ofsustainability initiatives and programs, our sites are managed based on continuous
improvement approaches that are reflected in our drive for zero (D40) program thatprioritizes operational efficiency and operational loss reduction in line with the concept ofresources conservation and impact minimization. Our programs and applied standards
contribute to reducing and avoiding negative pressures and conserving the intactness of
biodiverse ecosystems. Our thorough mapping and monitoring of the presence andstatus of biodiverse relevancies is a clear indication of the importance we are reserving
to locate, evaluate, assess and prepare which are nature management step-stages inline with TNFD guidance for corporations. Through mapping and constant dataacquisition we improve the understanding of potential issues occurring in proximity to
our sites. The use of tools like IBAT and in particular the metrics STAR gives us
increased visibility on threats and restoration potential which are key indicators at thebasis of protecting and conserving biological diversity in sensitive sites. We operate atsite level as well as with a broader stakeholder outreach and engagement that iscentered on environmental stewardship and especially the protection of natural
resources such as water.

C15.5(C15.5) What actions has your organization taken in the reporting year to progress
your biodiversity-related commitments?

344

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Have you taken any actions in the reporting period Type of action taken to progressto progress your biodiversity-related
biodiversity- related commitments
commitments?
Row Yes, we are taking actions to progress our
1
biodiversity-related commitments

Land/water protection
Land/water management

C15.6(C15.6) Does your organization use biodiversity indicators to monitor performanceacross its activities?

Row
1

Does your organization use indicators to monitor
biodiversity performance?

Indicators used to monitor
biodiversity performance

Yes, we use indicators

Pressure indicators
Response indicators

C15.7(C15.7) Have you published information about your organization’s response tobiodiversity-related issues for this reporting year in places other than in your CDP
response? If so, please attach the publication(s).
Report typeContent elements

Attach the document and indicate
where in the document the relevant
biodiversity information is located

In voluntary sustainability
report or other voluntarycommunications

Content of biodiversityrelated policies orcommitments

Zero Deforestation Manifesto p. 2
Integrated Report 2022 p. 150-162
Towards a net positive impact on nature
PMI’s ambition on biodiversity and water
1, 2, 3

1pmi_water_biodiversity_ambitions_2022.pdf
2pmi-integrated-report-2022.pdf
3pmi-zero-deforestation-manifesto.pdf

C16. Signoff
C-FI(C-FI) Use this field to provide any additional information or context that you feel isrelevant to your organization's response. Please note that this field is optional and is
not scored.

345

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

C16.1
(C16.1) Provide details for the person that has signed off (approved) your CDP climatechange response.
Row 1

Job title

Corresponding job category

Chief Executive Officer

Chief Executive Officer (CEO)SC. Supply chain module
SC0.0(SC0.0) If you would like to do so, please provide a separate introduction to thismodule.
Philip Morris International (PMI) is a leading international tobacco company working to deliver asmoke-free future and evolving its portfolio for the long term to include products outside of thetobacco and nicotine sector. The company’s current product portfolio primarily consists ofcigarettes and smoke-free products. Since 2008, PMI has invested more than USD 10.5 billion
to develop, scientifically substantiate and commercialize innovative smoke-free products for
adults who would otherwise continue to smoke, with the goal of completely ending the sale ofcigarettes. This includes the building of world-class scientific assessment capabilities, notably
in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as postmarket studies. In November 2022, PMI acquired Swedish Match – a leader in oral nicotinedelivery – creating a global smoke-free champion led by the companies’ IQOS and ZYN
brands. The U.S. Food and Drug Administration (FDA) has authorized versions of PMI’s IQOS
Platform 1 devices and consumables and Swedish Match’s General snus as Modified Risk
Tobacco Products (MRTPs). As of December 31, 2022, PMI’s smoke-free products wereavailable for sale in 73 markets, and PMI estimates that approximately 17.8 million adults
around the world had already switched to IQOS and stopped smoking. Smokefree products
accounted for approximately 32% of PMI’s total full-year 2022 net revenues. With a strong
foundation and significant expertise in life sciences, PMI announced in February 2021 its
ambition to expand into wellness and healthcare areas and, through its Vectura Fertin Pharma
subsidiary, aims to enhance life through the delivery of seamless health experiences.
Our approach to sustainability focuses on developing strategies that can successfully address
the environmental, social, and governance topics identified as a priority by our sustainability
materiality assessment. From an environmental standpoint, we focus on reducing postconsumer waste from our products, tackling climate change, and preserving nature.
Engagement beyond our own operations—in particular in our supply chain—is key, as this iswhere a significant portion of our sustainability impacts occurs. We are working with business
partners to proactively identify, manage, and reduce risks, and create shared value.
Our business has a significant, global supply chain organized in two main streams: direct spend
focused on materials used in the manufacture of our finished products (e.g., tobacco leaf,
packaging materials, electronic devices and accessories) and indirect spend focused on goods
and services necessary to operate our business.

346

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

The description above is a summary and is qualified in its entirety by reference to the full text of
PMI’s Annual Report on Form 10-K for the year ended 2022, 2023 Proxy Statement dated
March 23, 2023 filed with the U.S. Securities and Exchange Commission on the same date,
and the full text of PMI’s Integrated Report 2022. Certain terms, definitions and explanatory
notes, as well as reconciliations of the applicable non-GAAP financial measures, are set forth in
the materials referenced above.
In this submission:-“PMI,” “we,” “us,” and “our” refer to Philip Morris International Inc. and its subsidiaries;-Trademarks and service marks in this submission are the registered property of, or licensed
by, the subsidiaries of PMI and are italicized;-Aspirational targets and goals set forth in this submission do not constitute financial
projections, and achievement of future results is subject to risks, uncertainties, and inaccurate
assumptions, as outlined in our forward-looking and cautionary statements on page 210 of PMI
Integrated Report 2022;-Materiality: In this submission and in related communications, the terms “materiality,” “material”
and similar terms, when used in the context of economic, environmental, and social topics, aredefined in the referenced sustainability standards, and are not meant to correspond to theconcept of materiality under the U.S. securities laws and/or disclosures required by the US
Securities and Exchange Commission.
-Unless otherwise indicated, the data contained herein cover our operations worldwide for thefull calendar year 2022 or reflect the status as of December 31, 2022. Where not specified,data comes from PMI financials, nonfinancials, or estimates. Unless explicitly stated, the data,
information, and aspirations in this report do not incorporate PMI’s Vectura Fertin Pharma
business (consolidating the 2021 acquisitions of wellness and healthcare companies Fertin
Pharma A/S, Vectura Group plc., and OtiTopic, Inc.), nor the late 2022 acquisition of Swedish
Match AB. As we evolve and continue to integrate these business acquisitions, we will, wherematerial and feasible, include them into our ESG reporting in future reporting periods.

SC0.1(SC0.1) What is your company’s annual revenue for the stated reporting period?
Annual Revenue
Row 1

31,762,000,000

SC1.1(SC1.1) Allocate your emissions to your customers listed below according to thegoods or services you have sold them in this reporting period.

Requesting member
S Group

Scope of emissions
Scope 1

347

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 2 accounting method
Scope 3 category(ies)
Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e
295

Uncertainty (±%)
5

Major sources of emissions
Emissions from scope 1 include fuel used in factories, fleet, warehouses and offices.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
724,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 1 emissions 297,602
tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and 109,169
heated tobacco units) million equivalent cigarettes and 724 million equivalent cigaretteunits purchased by the customer in 2022.

Requesting member
S Group

Scope of emissions
Scope 2

Scope 2 accounting method348

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Market-based

Scope 3 category(ies)
Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e42

Uncertainty (±%)
5

Major sources of emissions
Electricity and district heating used in our factories and offices.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
724,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 2 emissions 42,482
tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and 109,169
heated tobacco units) million equivalent cigarettes and 724 million equivalent cigaretteunits purchased by the customer in 2022.

Requesting member
S Group

Scope of emissions
Scope 3

Scope 2 accounting method349

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 3 category(ies)Category 1: Purchased goods and services
Category 2: Capital goods
Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
Category 4: Upstream transportation and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 9: Downstream transportation and distribution
Category 11: Use of sold products
Category 12: End-of-life treatment of sold products

Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e4,215

Uncertainty (±%)
10

Major sources of emissions
Our scope 3 emissions are mainly due to tobacco agriculture and curing, sourcing raw
materials like tobacco, paper and cardboard, due to services like marketing or
consulting, due to upstream and downstream logistics and other minor impacts likebusiness travel, use phase and end of life of our products.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
724,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 3 emissions
4,257,276 tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and350

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

109,169 heated tobacco units) million equivalent cigarettes and 724 million equivalentcigarette units purchased by the customer in 2022.

Requesting member
Kesko Corporation

Scope of emissions
Scope 1

Scope 2 accounting method
Scope 3 category(ies)
Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e
320

Uncertainty (±%)
5

Major sources of emissions
Emissions from scope 1 include fuel used in factories, fleet, warehouses and offices.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
785,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 1 emissions 297,602
tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and 109,169

351

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

heated tobacco units) million equivalent cigarettes and 785 million equivalent cigaretteunits purchased by the customer in 2022.

Requesting member
Kesko Corporation

Scope of emissions
Scope 2

Scope 2 accounting method
Market-based

Scope 3 category(ies)
Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e
46

Uncertainty (±%)
5

Major sources of emissions
Electricity and district heating used in our factories and offices.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
785,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 2 emissions 42,482
tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and 109,169

352

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

heated tobacco units) million equivalent cigarettes and 785 million equivalent cigaretteunits purchased by the customer in 2022.

Requesting member
Kesko Corporation

Scope of emissions
Scope 3

Scope 2 accounting method
Scope 3 category(ies)Category 1: Purchased goods and services
Category 2: Capital goods
Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
Category 4: Upstream transportation and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 9: Downstream transportation and distribution
Category 11: Use of sold products
Category 12: End-of-life treatment of sold products

Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e4,571

Uncertainty (±%)
10

Major sources of emissions
Our scope 3 emissions are mainly due to tobacco agriculture and curing, sourcing raw
materials like tobacco, paper and cardboard, due to services like marketing or
consulting, due to upstream and downstream logistics and other minor impacts likebusiness travel, use phase and end of life of our products.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

353

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Market value or quantity of goods/services supplied to the requesting member
785,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 3 emissions
4,257,276 tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and109,169 heated tobacco units) million equivalent cigarettes and 785 million equivalentcigarette units purchased by the customer in 2022.

Requesting member
Salling Group A/S

Scope of emissions
Scope 1

Scope 2 accounting method
Scope 3 category(ies)
Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e
19

Uncertainty (±%)
5

Major sources of emissions
Emissions from scope 1 include fuel used in factories, fleet, warehouses and offices.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
354

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

46,500,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 1 emissions 297,602
tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and 109,169
heated tobacco units) million equivalent cigarettes and 39.5 million equivalent cigaretteunits and 7 million equivalent smoke free product units purchased by the customer in
2022.

Requesting member
Salling Group A/S

Scope of emissions
Scope 2

Scope 2 accounting method
Market-based

Scope 3 category(ies)
Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e3

Uncertainty (±%)
5

Major sources of emissions
Electricity and district heating used in our factories and offices.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
355

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

46,500,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 2 emissions 42,482
tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and 109,169
heated tobacco units) million equivalent cigarettes and 39.5 million equivalent cigaretteunits and 7 million equivalent smoke free product units purchased by the customer in
2022.

Requesting member
Salling Group A/S

Scope of emissions
Scope 3

Scope 2 accounting method
Scope 3 category(ies)Category 1: Purchased goods and services
Category 2: Capital goods
Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
Category 4: Upstream transportation and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 9: Downstream transportation and distribution
Category 11: Use of sold products
Category 12: End-of-life treatment of sold products

Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e271

Uncertainty (±%)
10356

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Major sources of emissions
Our scope 3 emissions are mainly due to tobacco agriculture and curing, sourcing raw
materials like tobacco, paper and cardboard, due to services like marketing or
consulting, due to upstream and downstream logistics and other minor impacts likebusiness travel, use phase and end of life of our products.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
46,500,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 3 emissions
4,257,276 tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and109,169 heated tobacco units) million equivalent cigarettes and 39.5 million equivalentcigarette units and 7 million equivalent smoke free product units purchased by thecustomer in 2022.

Requesting member
J Sainsbury Plc

Scope of emissions
Scope 1

Scope 2 accounting method
Scope 3 category(ies)
Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e127
357

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Uncertainty (±%)
5

Major sources of emissions
Emissions from scope 1 include fuel used in factories, fleet, warehouses and offices.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
312,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 1 emissions 297,602
tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and 109,169
heated tobacco units) million equivalent cigarettes and 209 million equivalent cigaretteunits and 103 million equivalent smoke free product units purchased by the customer in
2022.

Requesting member
J Sainsbury Plc

Scope of emissions
Scope 2

Scope 2 accounting method
Market-based

Scope 3 category(ies)
Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e18

358

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Uncertainty (±%)
5

Major sources of emissions
Electricity and district heating used in our factories and offices.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
312,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 2 emissions 42,482
tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and 109,169
heated tobacco units) million equivalent cigarettes and 209 million equivalent cigaretteunits and 103 million equivalent smoke free product units purchased by the customer in
2022.

Requesting member
J Sainsbury Plc

Scope of emissions
Scope 3

Scope 2 accounting method
Scope 3 category(ies)Category 1: Purchased goods and services
Category 2: Capital goods
Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
Category 4: Upstream transportation and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 9: Downstream transportation and distribution
Category 11: Use of sold products

359

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Category 12: End-of-life treatment of sold products

Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e
1,815

Uncertainty (±%)
10

Major sources of emissions
Our scope 3 emissions are mainly due to tobacco agriculture and curing, sourcing raw
materials like tobacco, paper and cardboard, due to services like marketing or
consulting, due to upstream and downstream logistics and other minor impacts likebusiness travel, use phase and end of life of our products.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
312,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 3 emissions
4,257,276 tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and109,169 heated tobacco units) million equivalent cigarettes and 209 million equivalentcigarette units and 103 million equivalent smoke free product units purchased by thecustomer in 2022.

Requesting member
Costco Wholesale Corporation

Scope of emissions
Scope 1360

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 2 accounting method
Scope 3 category(ies)
Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e30

Uncertainty (±%)
5

Major sources of emissions
Emissions from scope 1 include fuel used in factories, fleet, warehouses and offices.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
73,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 1 emissions 297,602
tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and 109,169
heated tobacco units) million equivalent cigarettes and 73 million equivalent cigaretteunits purchased by the customer in 2022.

Requesting member
Costco Wholesale Corporation

Scope of emissions
Scope 2

Scope 2 accounting method361

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Market-based

Scope 3 category(ies)
Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e4

Uncertainty (±%)
5

Major sources of emissions
Electricity and district heating used in our factories and offices.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
73,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 2 emissions 42,482
tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and 109,169
heated tobacco units) million equivalent cigarettes and 73 million equivalent cigaretteunits purchased by the customer in 2022.

Requesting member
Costco Wholesale Corporation

Scope of emissions
Scope 3

Scope 2 accounting method362

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Scope 3 category(ies)Category 1: Purchased goods and services
Category 2: Capital goods
Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
Category 4: Upstream transportation and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 9: Downstream transportation and distribution
Category 11: Use of sold products
Category 12: End-of-life treatment of sold products

Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e
425

Uncertainty (±%)
10

Major sources of emissions
Our scope 3 emissions are mainly due to tobacco agriculture and curing, sourcing raw
materials like tobacco, paper and cardboard, due to services like marketing or
consulting, due to upstream and downstream logistics and other minor impacts likebusiness travel, use phase and end of life of our products.

VerifiedNo

Allocation method
Allocation based on the volume of products purchased

Market value or quantity of goods/services supplied to the requesting member
73,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 3 emissions
4,257,276 tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and363

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

109,169 heated tobacco units) million equivalent cigarettes and 73 million equivalentcigarette units purchased by the customer in 2022.

Requesting member
Empire Company Limited (Sobeys)

Scope of emissions
Scope 1

Scope 2 accounting method
Scope 3 category(ies)
Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e
290

Uncertainty (±%)
5

Major sources of emissions
Emissions from scope 1 include fuel used in factories, fleet, warehouses and offices.

VerifiedNo

Allocation method
Allocation based on the number of units purchased

Market value or quantity of goods/services supplied to the requesting member
823,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 1 emissions 297,602
tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and 109,169
heated tobacco units) million equivalent cigarettes and 812 million equivalent cigarette364Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

units and 11 million equivalent smoke free product units purchased by the customer in
2022.

Requesting member
Empire Company Limited (Sobeys)

Scope of emissions
Scope 2

Scope 2 accounting method
Market-based

Scope 3 category(ies)
Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e
35

Uncertainty (±%)
5

Major sources of emissions
Electricity and district heating used in our factories and offices.

VerifiedNo

Allocation method
Allocation based on the number of units purchased

Market value or quantity of goods/services supplied to the requesting member
823,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 2 emissions 42,482
tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and 109,169
heated tobacco units) million equivalent cigarettes and 812 million equivalent cigarette
365Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

units and 11 million equivalent smoke free product units purchased by the customer in
2022.

Requesting member
Empire Company Limited (Sobeys)

Scope of emissions
Scope 3

Scope 2 accounting method
Scope 3 category(ies)Category 1: Purchased goods and services
Category 2: Capital goods
Category 3: Fuel-and-energy-related activities (not included in Scopes 1 or 2)
Category 4: Upstream transportation and distribution
Category 5: Waste generated in operations
Category 6: Business travel
Category 7: Employee commuting
Category 9: Downstream transportation and distribution
Category 11: Use of sold products
Category 12: End-of-life treatment of sold products

Allocation level
Company wide

Allocation level detail
Emissions in metric tonnes of CO2e4,135

Uncertainty (±%)
10

Major sources of emissions
Our scope 3 emissions are mainly due to tobacco agriculture and curing, sourcing raw
materials like tobacco, paper and cardboard, due to services like marketing or
consulting, due to upstream and downstream logistics and other minor impacts likebusiness travel, use phase and end of life of our products.

VerifiedNo

Allocation method
Allocation based on the number of units purchased

366

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Market value or quantity of goods/services supplied to the requesting member
823,000,000

Unit for market value or quantity of goods/services supplied
Other, please specify
Cigarette equivalent unit

Please explain how you have identified the GHG source, including major
limitations to this process andassumptions madeThe emissions were calculated by extrapolation of PMI wide scope 3 emissions
4,257,276 tCO2e and the total annual volume shipped 731,077 (621,908 cigarettes and109,169 heated tobacco units) million equivalent cigarettes and 812 million equivalentcigarette units and 11 million equivalent smoke free product units purchased by thecustomer in 2022.

SC1.2(SC1.2) Where published information has been used in completing SC1.1, pleaseprovide a reference(s).
The best source of all our environmental information is our CDP climate response or in PMI
2022 Integrated Report that can be downloaded from our website:
https://www.pmi.com/resources/docs/default-source/pmi-sustainability/pmi-integrated-report2022.pdf?sfvrsn=2619afb6_4)

SC1.3(SC1.3) What are the challenges in allocating emissions to different customers, andwhat would help you to overcome these challenges?
Allocation challenges

Please explain what would help you overcome these challenges

Diversity of product lines
Due to the homogeneous nature of our product portfolio, we have amakes accurately accounting method that provides an accurate representation of volume mix perfor each product/product line customer, which we periodically revise. With additional details such ascost ineffective
bill of materials, emissions per SKU and volumes purchased by eachcustomer we would be able to obtain further granularity of allocationof emission to different customers.
We face no challenges

Extrapolating customer allocation on volume based is not an exercisethat require too many complicated information and has proved
efficient to provide the right level of information to clients that wererequesting inputs for their indirect emissions.

SC1.4(SC1.4) Do you plan to develop your capabilities to allocate emissions to yourcustomers in the future?
Yes
367

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

SC1.4a(SC1.4a) Describe how you plan to develop your capabilities.
We have internal capabilities to allocate emissions to customers. If more customers request
more information, we will develop dedicated tools to answer to them managing the complexityof our product lines and accounting for the different input values that define the carbon footprintof our conventional products versus our smoke free products such as heat not burn products.

SC2.1(SC2.1) Please propose any mutually beneficial climate-related projects you could
collaborate on with specific CDP Supply Chain members.

Requesting member
S Group

Group type of project
Other, please specify
We seek to partner with our customers and study potential collaborative
opportunities. We invite our customers to provide ideas on logistics, packaging
designs or operational opportunities that would improve both of our environmental
footprints.

Type of project
Other, please specify
Partnering to achieve environmental footprint reduction

Emissions targeted
Other, please specify
Partnering to achieve environmental footprint reduction

Estimated timeframe for carbon reductions to be realized
Other, please specify
On-going

Estimated lifetime CO2e savings
0

Estimated payback
Cost/saving neutral

Details of proposal
We seek to partner with our customers and study potential collaborative opportunities.
We invite our customers to provide ideas on logistics, packaging designs or operational
opportunities that would improve both of our environmental footprints: carbon emissions,water scarcity, waste and littering and deforestation.
368

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Requesting member
Kesko Corporation

Group type of project
Other, please specify
We seek to partner with our customers and study potential collaborative
opportunities. We invite our customers to provide ideas on logistics, packaging
designs or operational opportunities that would improve both of our environmental
footprints

Type of project
Other, please specify
Partnering to achieve environmental footprint reduction

Emissions targeted
Other, please specify
Partnering to achieve environmental footprint reduction

Estimated timeframe for carbon reductions to be realized
Other, please specify
On-going

Estimated lifetime CO2e savings
0

Estimated payback
Cost/saving neutral

Details of proposal
We seek to partner with our customers and study potential collaborative opportunities.
We invite our customers to provide ideas on logistics, packaging designs or operational
opportunities that would improve both of our environmental footprints: carbon emissions,water scarcity, waste and littering and deforestation.

Requesting member
Salling Group A/SGroup type of project
Other, please specify
We seek to partner with our customers and study potential collaborative
opportunities. We invite our customers to provide ideas on logistics, packaging
designs or operational opportunities that would improve both of our environmental
footprints

Type of project369

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Other, please specify
Partnering to achieve environmental footprint reduction

Emissions targeted
Other, please specify
Partnering to achieve environmental footprint reduction

Estimated timeframe for carbon reductions to be realized
Other, please specify
On-going

Estimated lifetime CO2e savings
0

Estimated payback
Cost/saving neutral

Details of proposal
We seek to partner with our customers and study potential collaborative opportunities.
We invite our customers to provide ideas on logistics, packaging designs or operational
opportunities that would improve both of our environmental footprints: carbon emissions,water scarcity, waste and littering and deforestation.

Requesting member
J Sainsbury Plc

Group type of project
Other, please specify
We seek to partner with our customers and study potential collaborative
opportunities. We invite our customers to provide ideas on logistics, packaging
designs or operational opportunities that would improve both of our environmental
footprints

Type of project
Other, please specify
Partnering to achieve environmental footprint reduction

Emissions targeted
Other, please specify
Partnering to achieve environmental footprint reduction

Estimated timeframe for carbon reductions to be realized
Other, please specify
On-going

Estimated lifetime CO2e savings
0370

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Estimated payback
Cost/saving neutral

Details of proposal
We seek to partner with our customers and study potential collaborative opportunities.
We invite our customers to provide ideas on logistics, packaging designs or operational
opportunities that would improve both of our environmental footprints: carbon emissions,water scarcity, waste and littering and deforestation.

Requesting member
Costco Wholesale Corporation

Group type of project
Other, please specify
We seek to partner with our customers and study potential collaborative
opportunities. We invite our customers to provide ideas on logistics, packaging
designs or operational opportunities that would improve both of our environmental
footprints

Type of project
Other, please specify
Partnering to achieve environmental footprint reduction

Emissions targeted
Other, please specify
Partnering to achieve environmental footprint reduction

Estimated timeframe for carbon reductions to be realized
Other, please specify
On-going

Estimated lifetime CO2e savings
0

Estimated payback
Cost/saving neutral

Details of proposal
We seek to partner with our customers and study potential collaborative opportunities.
We invite our customers to provide ideas on logistics, packaging designs or operational
opportunities that would improve both of our environmental footprints: carbon emissions,water scarcity, waste and littering and deforestation.

Requesting member
371

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Empire Company Limited (Sobeys)

Group type of project
Other, please specify
We seek to partner with our customers and study potential collaborative
opportunities. We invite our customers to provide ideas on logistics, packaging
designs or operational opportunities that would improve both of our environmental
footprints

Type of project
Other, please specify
Partnering to achieve environmental footprint reduction

Emissions targeted
Other, please specify
Partnering to achieve environmental footprint reduction

Estimated timeframe for carbon reductions to be realized
Other, please specify
On-going

Estimated lifetime CO2e savings
0

Estimated payback
Cost/saving neutral

Details of proposal
We seek to partner with our customers and study potential collaborative opportunities.
We invite our customers to provide ideas on logistics, packaging designs or operational
opportunities that would improve both of our environmental footprints: carbon emissions,water scarcity, waste and littering and deforestation.

SC2.2(SC2.2) Have requests or initiatives by CDP Supply Chain members prompted yourorganization to take organizational-level emissions reduction initiatives?
No

SC4.1
(SC4.1) Are you providing product level data for your organization’s goods orservices?
No, I am not providing data

372

Philip Morris International CDP Climate Change Questionnaire 2023 26
September 2023

Submit your response
In which language are you submitting your response?
EnglishPlease confirm how your response should be handled by CDP

Please select yoursubmission options

I understand that my response will be sharedwith all requesting stakeholders

Response
permission

Yes

PublicPlease confirm below
I have read and accept the applicable Terms

373