Assurance Statement Number: CCP 267918/PMI/2022/03/14

NATURE AND SCOPE OF THE ASSURANCE ENGAGEMENTSGS United Kingdom Limited was commissioned to provide independent assurance of Environmental, Health and Safety
data and KPI’s for the calendar year 2022 for:

Philip Morris International SA (PMI)
Av. de Rhodanie 50
1007 Lausanne
Switzerland
The scope of the engagement included assessment of the Environmental, Health and Safety (EHS) Performance Indicators
and underlying data shown in the tables below.
The management of PMI is responsible for the selection, preparation and reporting of information included in its 2022 EHS
KPI report. It is SGS’ responsibility to express an independent opinion on the reported data within the scope of assurance.
The objective of the engagement was to provide a reasonable level of assurance to PMI stakeholders that the reported
indicators are:• Accurate and free from material misstatement (5% materiality level applied)• Reported in accordance with the principles of transparency accuracy, consistency, relevance and completenessand in accordance with a PMI defined methodology.
The engagement was based on the scope, objectives and criteria as agreed between Philip Morris International SA andSGS on 03/03/2023
The engagement was combined with the verification of greenhouse gas emissions, and the assurance methodology
employed by SGS was based upon internationally recognized standards and guidance meeting the requirements of ISAE
3000 (revised): Assurance Engagements Other than Audits or Reviews of Historical Financial Information. The engagement
comprised a combination of desk-based review and interviews with relevant employees and review of evidence during siteaudits, remotely undertaken for the following facilities: Greece - (Papastratos), Argentina - (Massalin Merlo), Portugal (Tabaqueira), Switzerland - (Rhodanie) and Indonesia – (Sampoerna Karawang).
The environmental information provided was based on a combination of historical data representative of the calendar year
2022 for manufacturing facilities and fleet and a combination of historical data, estimation methodologies and data
extrapolation for data in non-manufacturing facilities. Health and safety data was based on historical information.
STATEMENT OF INDEPENDENCE AND COMPETENCEThe SGS Group of companies is a world leader in inspection, testing and verification, operating in more than 140 countries
and providing services including management systems and service certification; quality, environmental, social and ethicalauditing and training; environmental, social and sustainability report assurance. SGS United Kingdom Limited affirm ourindependence from PMI, being free from bias and conflicts of interest with the organisation, its subsidiaries and stakeholders.
The assurance team was assembled based on their knowledge, experience and qualifications for this assignment, including
experience in the assurance of environmental and health and safety data.
CONCLUSION

SGS’ approach is risk-based, drawing on an understanding of the risks associated with determination of EHS. informationand the controls in place to mitigate these risks. Our examination included assessment, on a sample basis, of evidence
relevant to the voluntary reporting of the data in the tables below:

Indicator

Units

Scope

2022

’000 m3

Manufacturing

1,547’000 m3

Manufacturing

1,044’000 m3

Manufacturing

3,089’000 m3

Manufacturing

2,137%

Manufacturing

64%

Total amount of water discharged’000 m3

Manufacturing

1,542

Total amount of water discharged toareas with water stress’000 m3

Manufacturing

932

Manufacturing water use

m3/ mio. Cig.
Eq produced

Manufacturing

3.79

Total amount of waste generated

Metric tonnes

Manufacturing

119,192%

Manufacturing

0.07%

Metric tonnes

Manufacturing

84.9%

Manufacturing

0.8%

%

Manufacturing

12.0%

%

Manufacturing

0.3%

%

Manufacturing

86.9%

%

Manufacturing

100%

Metric tonnes

Manufacturing

1,698

%

Manufacturing

1.4%

%

Manufacturing

2.5%

%

Manufacturing

67.4%

%

Manufacturing

13.4%

%

Manufacturing

16.7%

Total energy consumption

GJ

Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft

7,657,899

Total energy consumption

GJManufacturing

6,158,955

Total amount of water consumed(withdrawn minus discharged)
Total water consumption from all areas
with water stress in megaliters(withdrawn minus discharged)
Total amount of water withdrawn
Total amount of freshwater water
withdrawn (from Municipal)
Percentage of total direct factory water
withdrawal from water stressed area

Proportion of operational waste tolandfill (scope for zero waste to landfill
target which excludes mandated waste
to landfill)
Tonnes of operational waste to landfill(scope for zero waste to landfill target
which excludes mandated waste tolandfill)
Proportion of total waste generated thatis disposed to landfill
Proportion of total waste generated thatis incinerated with energy recovery
Proportion of total waste generated thatis incinerated without energy recovery
Proportion of total waste generated thatis recycled
Proportion of factories with <1% ofwaste to landfill (virtually zero)(excluding Ukraine)
Amount of hazardous waste generated
Percentage of hazardous waste
generated
Proportion of hazardous waste
generated that is disposed to landfill
Proportion of hazardous waste
generated that is incinerated with energy
recovery
Proportion of hazardous waste
generated that is incinerated without
energy recovery
Proportion of hazardous waste
generated that is recycledTotal energy consumption
Manufacturing energy use
Fleet energy consumption
PMI Total km driven

GJ
GJ / miocig.eq.
Produced
MJ per km
Drivenkm

Fleet & Jet

1,151,654

Manufacturing

7.56

Fleet

2.77

Fleet
Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft

406,335,691

GJ

Manufacturing

2,566,650%

Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft

35%%

Manufacturing

42%%

Manufacturing

5%

Total electricity consumed

MWh

Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft

861,434

Total electricity consumed

MWhManufacturing792,991

Total electricity consumed that is fromrenewable sources

MWh

Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft

727,283

MWh

Manufacturing689,523%

Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft

84%%

Manufacturing

87%%

Manufacturing

90%

Fuel consumption from non- renewablesources

GJ

Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft

4,487,552

Fuel consumption from non- renewablesources

GJ

Manufacturing

3,285,926

Fuel consumption from renewablesources

GJ

Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft

95,236GJ

Manufacturing

84,276%

Fleet

Total energy consumption fromrenewable sources
Total energy consumption fromrenewable sources
Proportion of energy consumption(electricity & fuel) from renewablesources
Proportion of energy consumption(electricity & fuel) from renewablesources
Proportion of electricity consumed at
our factories that came from selfgenerated sources

Total electricity consumed that is fromrenewable sources
Proportion of electricity used andpurchased that is from renewablesources (total electricity consumed fromrenewables/total electricity consumed)
Proportion of electricity used andpurchased that is from renewablesources (total electricity consumed fromrenewables/total electricity consumed)
Proportion of electricity purchased fromrenewables (total electricity purchasedfrom renewables/total electricitypurchased)

Fuel consumption from renewablesources
Proportion of renewable fuel consumed
by fleet

GJ

CO2e scope 1

Metric tonnes

CO2e scope 1 absolute reduction vsprevious year - metric tonnes

Metric tonnes

CO2e scope 1 absolute reduction vsprevious year - %%Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft
Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft
Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft

2,714,761

1%
297,602

11,2204%CO2e scope 1 from fleet: absolute
reduction vs. 2019 baseline%

CO2e Scope 1 Biogenic emissions

Metric tonnes

CO2e scope 1 from fleet
CO2e emissions from vehicles (g CO2eper km driven)

Metric tonnes
g CO2e/kmdriven

CO2e scope 2 (market based)

Metric tonnes

CO2e scope 2 (market based) absolute
reduction vs previous year - metrictonnes

Metric tonnes

CO2e scope 2 (market based) absolute
reduction vs previous year - %%CO2e scope 1+2 (market based)

Metric tonnes

CO2e scope 1+2 (market based)absolute reduction versus 2019 baseline%

Carbon off-setting certificates *Metric tonnes

Net CO2e scope 1+2 **Metric tonnes

CO2e scope 1+2 (market based)emissions - Manufacturing

Fleet & Jet

29%

Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft
Fleet & Jet

79,543

Fleet

191.05

8,970

Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft
Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft
Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft
Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft
Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft
Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft
Manufacturing, Fleet, Office,Warehouse, Other, Retail,Aircraft

340,084

Metric tonnes

Manufacturing242,392

Absolute emissions from offices

Metric tonnes

Offices

13,655Absolute emissions from warehouses
Absolute emissions from Other
Absolute emissions from retail stores
CO2e Scope 1+2 (market based)absolute reductions in manufacturing
versus previous year
Number of carbon-neutral factories(production centres)

Metric tonnes
Metric tonnes
Metric tonnes

Warehouses
Other
Retail stores

2,985
1,256251

Metric tonnes

Manufacturing

25,391#Manufacturing

13

CO2e scope 3

Metric tonnes

Total

4,257,276

CO2e scope 3 biogenic emissions
CO2e emissions from our tobacco
supply chain

Metric tonnes

Total

2,331,123

Metric tonnes

Total

887,811

Manufacturing297.33

Manufacturing CO2e emissions (scope1+2) intensity
Exposure Hours - PMI and contracted
employees and contractors
Exposure Hours - PMI and contracted
employees
Exposure Hours - PMI employees

Exposure Hours - contracted employees

kg CO2e /mio. cig eq.
produced
No ofexposurehours
No ofexposurehours
No ofexposure
hours
No of
exposurehours

42,482

21,736

33.8%

38.8%

42,848297,236Group

179,016,790

Group

139,124,907

Group

124,299,919

Group

14,824,988

Exposure Hours - contractors
Exposure Hours - PMI and contracted
employees and contractors
MANUFACTURING
Exposure Hours - PMI and contracted
employees - MANUFACTURING
Exposure Hours - PMI and contracted
employees and contractors MARKETSExposure Hours - PMI and contracted
employees - MARKETS
Lost Time Incident (LTI) rate per 200,000
hours worked - PMI and contracted
employees and contractors
Lost Time Incident (LTI) rate per 200,000
hours worked - PMI and contracted
employees
Lost Time Incident (LTI) rate per 200,000
hours worked - PMI employees

Lost Time Incident (LTI) rate per 200,000hours worked - contracted employees

Lost Time Incident (LTI) rate per 200,000
hours worked - contractors
Lost Time Incident (LTI) rate per 200,000
hours worked - PMI and contracted
employees and contractorsMANUFACTURING
Lost Time Incident (LTI) rate per 200,000
hours worked - PMI and contracted
employees - MANUFACTURING
Lost Time Incident (LTI) rate per 200,000
hours worked - PMI and contracted
employees and contractors- MARKETS &FLEET
Lost Time Incident (LTI) rate per 200,000
hours worked - PMI and contracted
employees - MARKETS & FLEETLost Time Incident (LTI) rate per 200,000
hours worked - PMI and contracted
employees and contractors- MARKETS(non fleet)
Lost Time Incident (LTI) rate per 200,000
hours worked - PMI and contracted
employees - MARKETS (non - fleet)
Total Recordable Incidents Rate (TRIR)
per 200,000 hours worked - PMI andcontracted employees and contractors

No ofexposurehours
No ofexposurehours
No ofexposurehours
No ofexposurehours
No ofexposurehours
LTI per
200,000exposurehours
LTI per
200,000exposurehours
LTI per
200,000
exposurehours
LTI per
200,000
exposurehours
LTI per
200,000
exposurehours
LTI per
200,000exposurehours
LTI per
200,000
exposurehours
LTI per
200,000
exposurehours
LTI per
200,000
exposurehours
LTI per
200,000
exposurehours
LTI per
200,000
exposurehours
TRI per
200,000
exposure
hours

Group

39,891,882

Manufacturing

89,771,005

Manufacturing

61,854,038

Market89,245,784

Market77,270,870

Group

0.08

Group

0.08

Group

0.09

Group

0.04

Group

0.09

Manufacturing

0.06

Manufacturing

0.06

Markets & Fleet

0.11

Markets & Fleet

0.10

markets (non fleet)

0.09

markets (non fleet)

0.10Group0.13

Total Recordable Incidents Rate (TRIR)
per 200,000 hours worked - PMI andcontracted employees
Total Recordable Incidents Rate (TRIR)
per 200,000 hours worked - PMI
employees
Total Recordable Incidents Rate (TRIR)
per 200,000 hours worked - contracted
employees
Total Recordable Incidents Rate (TRIR)
per 200,000 hours worked - contractors
Total Recordable Incidents Rate (TRIR)
per 200,000 hours worked - PMI andcontracted employees and contractors MANUFACTURING
Total Recordable Incidents Rate (TRIR)
per 200,000 hours worked - PMI andcontracted employees MANUFACTURINGTotal Recordable Incidents Rate (TRIR)
per 200,000 hours worked - contractors’
employees - MANUFACTURING
Total Recordable Incidents Rate (TRIR)
per 200,000 hours worked - PMI andcontracted employees and contractors MARKETS & FLEET
Total Recordable Incidents Rate (TRIR)
per 200,000 hours worked - PMI andcontracted employees - MARKETS &FLEET
Number of fatalities - PMI andcontracted employees

TRI per
200,000
exposurehours
TRI per
200,000
exposurehours
TRI per
200,000exposurehours
TRI per
200,000exposurehours
TRI per
200,000
exposurehours
TRI per
200,000exposurehours
TRI per
200,000
exposurehours
TRI per
200,000exposurehours
TRI per
200,000
exposure
hours

Group

0.12

Group

0.13

Group

0.05

Group

0.15

Manufacturing

0.12

Manufacturing

0.10

Manufacturing

0.16

Markets & Fleet

0.135

Markets & Fleet

0.135

No of fatalities

Group

0

Number of fatalities - PMI employees

No of fatalities

Group

0

Number of fatalities - contracted
employees

No of fatalities

Group0

Number of fatalities - contractors

No of fatalities

Group3

Number of fatalities - members of thepublic

No of fatalities

Group9Total number of vehicles in PMI fleet

No of vehicles

Fleet

21,691

Fleet

0.44

Fleet

406,335,691

Fleet

5.54

Fleet

0.03

Collision rate within PMI's fleet ofvehicles per year (collisions per millionkm driven)
PMI Total km driven
Fleet crash rate
Fleet Lost Time Incident (LTI) Rate per
million km driven - PMI and contracted
employees

No ofcollisions per
million kmdriven
No of kmdrivenNo of crashes
per million kmdriven
No of fleet
LTIs permillion kmdrivenOccupational Illness Rate (OIR) per
200,000 hours worked - PMI andcontracted employees
Occupational Illness Rate (OIR) per
200,000 hours worked - PMI employees
Occupational Illness Rate (OIR) per
200,000 hours worked - contractedemployees
Occupational Illness Rate (OIR) per
200,000 hours worked - PMI andcontracted employees MANUFACTURING
Occupational Illness Rate (OIR) per
200,000 hours worked - PMI andcontracted employees - MARKETOIs per
200,000
exposurehours
OIs per
200,000
exposurehours
OIs per
200,000
exposurehours
OIs per
200,000
exposurehours
OIs per
200,000
exposure
hours

Group0.000

Group0.000

Group0.000Manufacturing

0.000

Market & Fleet

0.000* Refers to the retroactive compensation of a year's residual Scope 1 and Scope 2 emissions (i.e., 2021) through thecancellation of carbon credits during the reporting year (i.e., 2022).
** Net Scope 1 and Scope 2 emissions equals gross emissions during the reporting the reporting year (i.e., 2022) minus theretroactive compensation of the previous year's emissions (i.e., 2021).
Based on the data and information provided by Phillip Morris International SA and the processes and procedures conducted,
SGS concludes that:-The KPI assessment methodology applied is sound and valid-The KPIs in the table above are accurate, complete, consistent, transparent and free of material error or omission inrelation to the requirements of the methodologies employed.
Signed:For and on behalf of SGS United Kingdom Limited
Pamela Chadwick, Business Manager
Camberley, 14th March 2023
SGS United Kingdom Limited
Inward Way, Rossmore Business Park
Ellesmere Port
Cheshire
United Kingdom
CH65 3EN

Note: This Statement is issued, on behalf of Client, by SGS United Kingdom Limited (“SGS”) under its General Conditions for Greenhouse Gas Verification
Services. The findings recorded hereon are based upon an audit performed by SGS. A full copy of this statement, the findings and the supporting KPI
Report may be consulted at Philip Morris