SASB content index 2021

SASB content index
This summary cross-references our reporting to the material issues identified by the Sustainability Accountability Standards Board (SASB). It refers to 4 of the 77 Industry
Standards developed by SASB. It seeks to align with the standards developed for Food & Beverage for the industries of Tobacco and Agricultural Products. In addition, as aresult of our business transformation, it also cross-references our reporting to most aspects of the standards defined for Technology & Communications, more concretely theHardware Standard, and it also describes alignment with some aspects of the standards developed for the Health Care industry, specifically the Medical Equipment andSupplies Standard. 1
This summary should be read in conjunction with the Philip Morris International Inc. Form 10-K for the year ended 2021, PMI’s Integrated Report 2021, and the additionalsustainability-related communications available on www.pmi.com/sustainability. 2

Tobacco Standard (2018)
CodeTopics & Accounting Metrics

Relevant PMI
sustainability topics

Reference inpublished materials

Additional comments

Innovation in wellness
and healthcare;
Product health impact

PMI 2021 Form 10-K (pg.
22)

We currently present total revenues, including and excluding excisetaxes. We also present revenues (net of excise taxes) by product category
as follows:- Combustible products 3- Reduced-risk products (RRPs) 4- Other 5
We currently do not present non-tobacco nicotine products and heatedtobacco products revenues on a disaggregated basis.

Product health impact

PMI 2021 Form 10-K
(pgs. 7-8, 39-46)
Integrated Report 2021
(pgs. 69-72)

PUBLIC HEALTHFB-TB-260a.1(1) Gross revenue and (2) revenue net ofexcise taxes from (a) non-tobacco nicotineproducts and (b) heated tobacco products

FB-TB-260a.2

Discussion on the process to assess risks andopportunities associated with “tobacco harmreduction” products

1The Tobacco Standard is intended for companies that “Manufacture tobacco products including cigarettes, cigars, and smokeless tobacco products.” The Agricultural Products Standard isintended for companies “engaged in processing, trading, and distributing vegetables and fruits, and producing and milling agricultural commodities such as grains, sugar, consumable oils, maize,soybeans, and animal feed.” The Hardware Standard is intended for companies that “design and sell technology hardware products, including computers, consumer electronics, communications
equipment, storage devices, components, and peripherals.” The Medical Equipment and Supplies Standard is intended for companies that “research, develop, and produce medical, surgical, dental,ophthalmic, and veterinary instruments and devices”
2
The content of PMI’s Integrated Report 2021 is shaped by a formal sustainability materiality assessment, refreshed in 2021. PMI’s Integrated Report 2021 provides information on context,relevance, management approach, targets, and performance for each priority ESG topic. Additional details and case studies are available on www.PMI.com/sustainability.
3
Net revenues related to combustible products refer to the operating revenues generated from the sale of these products, including shipping and handling charges billed to customers, net of sales
and promotion incentives, and excise taxes. These net revenue amounts consist of the sale of cigarettes and other tobacco products combined. Other tobacco products primarily include roll-yourown and make-your-own cigarettes, pipe tobacco, cigars and cigarillos and do not include RRPs.
4Net revenues related to reduced-risk products (or “smoke-free products”) represent the sale of heated tobacco units, heat-not-burn devices and related accessories, and other nicotinecontaining products, primarily e-vapor and oral nicotine products, including shipping and handling charges billed to customers, net of sales and promotion incentives, and excise taxes.
5Net revenues in the Other category primarily consist of operating revenues generated from the sale of inhaled therapeutics, and oral and intra-oral delivery systems, that are included in theoperating results of PMI’s new Wellness and Healthcare business, Vectura Fertin Pharma.

1|P a g e

SASB content index 2021

MARKETING PRACTICESFB-TB-270a.1

Total amount of monetary losses as a result oflegal proceedings associated with marketing,labeling, and/or advertising practices

Sales, marketing, andconsumercommunications

PMI 2021 Form 10-K
(pgs. 106-118)

We publicly disclose material legal proceedings in PMI’s periodic filings
before the US Securities and Exchange Commission, including forms 10-K
and 10-Q, as mandated by U.S. Securities Laws and related regulations.
The contingencies note in these disclosures don’t, however, disclose“monetary losses as a result of legal proceedings” in direct alignment withthis standard.
We report on the number of violations of the PMI Marketing Codes
resulting in substantiated cases of misconduct in Integrated Report 2021
(pgs. 83-89, 233).

FB-TB-270a.2

Description of the company’s marketing
policy and relevant positions on Articles 11
and 13 of the World Health Organization
Framework Convention on Tobacco Control(WHO FCTC)

CodeCategorySales, marketing, andconsumer
communications

PMI 2021 Form 10-K
(pgs. 36-46)Integrated Report 2021
(pgs. 22-27, 66, 83-88)

Reference in publishedmaterials

Additional comments

ACTIVITY METRICS
FB-TB-000.A

FB-TB-000.B

6Combustible tobacco product sales volume: (1)cigarette, (2) cigar, and (3) other smokedtobacco products
Non-combustible product sales volume: (1)traditional smokeless tobacco, (2) non-tobacco
nicotine products, (3) heated tobacco
products, and (4) nicotine replacement therapy
products

PMI 2021 Form 10-K (pg. 30)
Integrated Report 2021 (pg. 18)

PMI 2021 Form 10-K (pg. 30)
Integrated Report 2021 (pg. 18)

We currently present PMI shipment volumes on a total basis and also
separated as follows:- Combustible products 6- Reduced-risk products 7
We currently do not present noncombustible product sales volume on adisaggregated basis with the level of detail set out in the standard"Combustible products" is the term PMI uses to refer to cigarettes and OTP, combined.
Reduced-risk products (“RRPs”) is the term PMI uses to refer to products that present, are likely to present, or have the potential to present less risk of harm to smokers who switch to theseproducts versus continuing smoking. PMI has a range of RRPs in various stages of development, scientific assessment and commercialization. PMI's RRPs are smoke-free products that contain
and/or generate far lower quantities of harmful and potentially harmful constituents than found in cigarette smoke.
72|P a g e

SASB content index 2021

Agricultural Products Standard (2018) 8CodeTopics & Accounting Metrics

Relevant PMI
sustainability
topicsReference in publishedmaterials

Additional comments

GREENHOUSE GAS EMISSIONSFB-AG-110a.1Gross global Scope 1 emissions

ClimateIntegrated Report 2021 (pg. 241)

FB-AG-110a.2

Discussion of long-term and short-term strategy
or plan to manage Scope 1 emissions, emissions
reduction targets, and an analysis ofperformance against those targets

ClimateIntegrated Report 2021 (pgs. 163171)
PMI’s Low-Carbon Transition Plan

FB-AG-110a.3

Fleet fuel consumed, percentage renewable

Integrated Report 2021 (pg. 241)

We report on CO2e emissions in our fleet and on fuelconsumption from renewable and nonrenewable sourcesin PMI factories, offices, and fleet. We do not report
separately on fuel consumption in our fleet.

ClimateIntegrated Report 2021 (pg. 241)

We report on total energy consumption, proportion oftotal energy consumed that is from renewable sources, fuelconsumption from renewable and nonrenewable sources,and electricity consumed that is from renewable sources in
PMI factories, offices, and fleet.

ClimateENERGY MANAGEMENTFB-AG-130a.1(1) Operational energy consumed, (2) percentage
grid electricity, (3) percentage renewable

WATER MANAGEMENTFB-AG-140a.1(1) Total water withdrawn, (2) total water
consumed, percentage of each in regions withHigh or Extremely High Baseline Water StressWater

Integrated Report 2021 (pgs. 186,239)

FB-AG-140a.2

Description of water management risks anddiscussion of strategies and practices to mitigate
those risks

Water

Integrated Report 2021 (pgs. 185188)

8
The topic and accounting metrics related to “Food safety” in the Agricultural Products Standard was excluded from this summary due to the nature of our business. We describe our approach tosustaining product reliability on pages 198-200 of PMI’s Integrated Report 2021.

3|P a g e

SASB content index 2021

CodeFB-AG-140a.3

Topics & Accounting Metrics

Number of incidents of non-complianceassociated with water quantity and/or quality
permits, standards, and regulations

Relevant PMI
sustainability
topicsReference in publishedmaterials

Additional comments

Water

Integrated Report 2021 (pg. 240)
CDP Water Security 2021 (pg. 11)

We report on the annual number and amount ofenvironmental fines that exceed USD 10,000 (includingwater-related issues) in our Integrated Report and waterspecific violations in our annual CDP Water Security
disclosures.

Health and safety atwork

Integrated Report 2021 (pg. 235)

We currently do not report on near miss frequency rate.

Integrated Report 2021 (pg. 239)

PMI assesses conformity to its Good Agricultural Practices(GAP) and Agricultural Labor Practices (ALP) Code throughfarm-by-farm monitoring, external assessments by Control
Union, and external verifications by local experts.

Integrated Report 2021 (pgs. 238& 243)

Our approach to managing environmental and social
impacts in our tobacco supply chain is described on pages
212-213 of our Integrated Report 2021. Key metrics (suchas coverage of monitoring, number and breakdown ofprompt actions recorded and resolved, or number ofcontracts terminated) are available on page 238 of ourIntegrated Report 2021.
Beyond tobacco, our work is grounded on PMI’s
Responsible Sourcing Principles and our supplier due
diligence platforms (EcoVadis and Responsible Business

WORKFORCE HEALTH & SAFETY

FB-AG-320a.1(1) Total recordable incident rate (TRIR), (2)fatality rate, and (3) near miss frequency rate
(NMFR) for (a) direct employees and (b) seasonaland migrant employees

ENVIRONMENTAL & SOCIAL IMPACTS OF INGREDIENT SUPPLY CHAIN

FB-AG-430a.1

FB-AG-430a.2

4|P a g e

Percentage of agricultural products sourced thatare certified to a third-party environmental
and/or social standard, and percentages bystandard

Suppliers’ social and environmental
responsibility audit (1) non-conformance rate and(2) associated corrective action rate for (a) majorand (b) minor non-conformances

Socioeconomic wellbeing of tobaccofarming
communities;
Sustainable supply
chain management

Socioeconomic wellbeing of tobaccofarming
communities;
Sustainable supply
chain management

SASB content index 2021

CodeFB-AG-430a.3

Topics & Accounting Metrics

Discussion of strategy to manage
environmental and social risks arising fromcontract growing and commodity sourcing

Relevant PMI
sustainability
topicsReference in publishedmaterials

Socioeconomic wellbeing of tobaccofarming
communities;
Sustainable supply
chain management

PMI 2021 Form 10-K (pgs. 3-5and 8-10)
Integrated Report 2021 (pgs. 213214)

Biodiversity

Integrated Report 2021 (pg. 192)

Additional comments
Alliance Validated Assessment Program). We describe ourapproach and report on performance on pages 214-216 ofour Integrated Report 2021.
This work is complemented by broader human rights
impact assessments conducted in high-risk countries andrelated action plans, as described on pages 210-212 of ourIntegrated Report 2021.

GMO MANAGEMENTFB-AG-430b.1

Discussion of strategies to manage the use ofgenetically modified organisms (GMOs)

INGREDIENT SOURCINGFB-AG-440a.1

Identification of principal crops and description ofrisks and opportunities presented by climatechangeFB-AG-440a.2

Percentage of agricultural products sourced fromregions with High or Extremely High Baseline
Water Stress5|P a g e

Climate;Biodiversity

Water

Integrated Report 2021 (pgs. 164166)

Integrated Report 2021 (pg. 186)

Our most recent climate change risk and opportunities
assessment was conducted in 2019 and reported on in ourIntegrated Report 2019 (pg. 35) as well as in our annual
submission to the CDP available on PMI.com. We plan torenew this assessment in 2022.

SASB content index 2021

CodeCategory

Reference in published materials

Additional comments

ACTIVITY METRICS
FB-AG-000.A

Production by principal crop

Integrated Report 2021 (pg. 150)

FB-AG-000.B

Number of processing facilities

PMI 2021 Form 10-K (pg. 15)

FB-AG-000.C

Total land area under active production

Integrated Report 2021 (pg. 183)

FB-AG-000.D

Cost of agricultural products sourced externally

Integrated Report 2021 (pg. 214)

6|P a g e

We report on total number of PMI-owned manufacturing facilities.

SASB content index 2021

Hardware Standard (2018) 9
CodeTopics & Accounting Metrics

Relevant PMI
sustainability topics

Reference in publishedmaterials

Additional comments

EMPLOYEE DIVERSITY & INCLUSION
TC-HW-330a.1

Percentage of gender and racial/ethnic
group representation for (1) management,(2) technical staff, and (3) all otheremployees

Diversity and inclusion

Integrated Report 2021 (pgs.
137, 235-236)

We separately report top nationalities at different managerial
levels (pg. 137) of PMI Integrated Report 2021. We reportgender breakdown by various management levels, STEM
positions, and overall workforce (pgs. 235-236).

Integrated Report 2021 (pg.
234)

We adopted a centralized approach to the end-of-life of oursmoke-free electronic devices by establishing CIRCLE (CentralInspection and Recycling) hubs that inspect, process, andseparate materials for recycling. We report on the recycling rateof IQOS devices returned to our centralized recycling hubs
(weighted-average percentage of each device that is recycled), as
well as total volume of materials recycled at the CIRCLE hubs.

Integrated Report 2021 (pg.
243)

Electronic smoke-free devices are manufactured by third-party
manufacturers. We describe our approach to managing ourelectronics supply chain on pages 216-217 of PMI Integrated
Report 2021. We joined the RBA as an Affiliate Member in early2021.

Integrated Report 2021 (pg.
217)
PMI 2021 Form 10-K (pgs. 4142)

We describe our approach to managing our electronics supply
chain and discuss conflict minerals and cobalt sourcing on pages
216-217 of PMI Integrated Report 2021. Our yearly conflictminerals submissions to the U.S. Securities and Exchange
Commission are available on PMI.com.

PRODUCT LIFECYCLE MANAGEMENTTC-HW-410a.4

Weight of end-of-life products and e-waste
recovered, percentage recycled

Materials and product ecodesign

SUPPLY CHAIN MANAGEMENTTC-HW-430a.1

TC-HW-430a.2

Percentage of Tier 1 supplier facilities
audited in the RBA Validated Audit Process(VAP) or equivalent, by (a) all facilities and(b) high-risk facilities
Tier 1 suppliers’ (1) non-conformance ratewith the RBA Validated Audit Process(VAP) or equivalent, and (2) associatedcorrective action rate for (a) priority nonconformances and (b) other nonconformances

Sustainable supply chain
management?

Sustainable supply chainmanagement?

MATERIALS SOURCING

TC-HW-440a.1

9

Description of the management of risks
associated with the use of critical materials

Sustainable supply chain
management?

Notes:- The topic and accounting metrics related to “Product Security” in the Hardware Standard was excluded from this summary due to the nature of our business. However, in the context of ourefforts to safeguard against youth access and use of our products, we piloted in 2020 age-verification technology on our e-vapor device, IQOS VEEV, in New Zealand, and we aim to equip all
smoke-free devices we introduce as of 2023 with age-verification technology.
- Certain accounting metrics related to “Product lifecycle management” in the Hardware Standard were excluded from this summary due to the nature of our business.

7|P a g e

SASB content index 2021

CodeCategory

Reference in published materials

Additional comments

ACTIVITY METRICS
TC-HW-000.A

Number of units produced by product category

TC-HW-000.B

Area of manufacturing facilities

TC-HW-000.C

Percentage of production from owned facilities

8|P a g e

Electronic smoke-free devices are manufactured by third-party
manufacturers. We currently do not report on these activity metrics.

SASB content index 2021

Medical Equipment & Supplies Standard (2018)
The topics and accounting metrics in the Medical equipment & Supplies Standard do not directly apply to our company, due to the nature of our business. However, they cover areas that arerelevant to us, as we pursue our purpose of delivering a smoke-free future by focusing our resources on the research, development, and commercialization of less harmful alternatives to cigarettes,
with the aim of completely replacing cigarettes as soon as possible. More specifically:•Affordability & Pricing: In order to successfully reduce harm at the individual and population level, adult smokers must be motivated to switch to less harmful alternatives thancontinued cigarette smoking. To succeed in making the world smoke-free, we need all adult smokers to have access to our smoke-free products. First, the products must need to belegally available for sale in their countries. Then we need to improve consumer awareness, as well as acceptability, availability, and affordability of these products. We describe ourapproach to providing access to PMI’s smoke free products, including affordability aspects, in PMI Integrated Report 2021 (pgs. 73-82).

•Product Safety: We are researching and developing smoke-free products, whose reduced-risk profile is scientifically substantiated, employing a step-by-step program derived frompractices followed by the pharmaceutical industry. We describe our approach to addressing product health impacts, including our scientific assessment program, the scientific evidence
gathered to date, and post-market monitoring in PMI Integrated Report 2021 (pgs. 69-71, 196-197). The U.S. Food and Drug Administration (FDA) has authorized the marketing ofversions of PMI’s IQOS Platform 1 devices and consumables as Modified Risk Tobacco Products (MRTPs), finding that exposure modification orders for these products are appropriate
to promote the public health.”•Ethical Marketing: Please see summary cross-referencing our reporting to the SASB Tobacco Standard (“Marketing Practices” topic).

•Product Design & Lifecycle Management: Please see summary cross-referencing our reporting to the SASB Hardware Standard (“Product Lifecycle Management” topic).

•

Supply Chain Management: Please see summary cross-referencing our reporting to the SASB Agricultural Products and Hardware Standards (“Environmental & Social Impacts ofIngredients Supply Chain”, “Supply Chain Management”, and “Materials sourcing” topics).

•Business Ethics: We describe our approach to business integrity and report on related metrics (such as reports of misconducts and employee training) in PMI Integrated Report 2021
(pgs. 205-207).

For the activity metric “Number of units sold by product category”: Please see summary cross-referencing our reporting to the SASB Tobacco Standard.

9|P a g e