TOP 10 TAKEAWAYS
from PMI’s Integrated Report2023: Transforming for good
Find out how Philip Morris International is making progress toward achieving its purpose
and receive detailed information about its strategic vision, performance, governance, andvalue creation.

As we present this 2023 Integrated Report, we emphasize that deliveringa smoke-free future is not just a priority, it is the essence of our purpose.
The path we tread is marked by our ambition to lead, our vow to operatetransparently, and our dedication to ensuring that cigarettes are relegatedto history. We remain committed to transparent, consistent, and reliable
reporting practices that allow external stakeholders to understand not only
our performance but also how we are responding to a rapidly changing
environment and planning for the long term, fostering a more sustainable
and transparent business landscape.
—Jennifer Motles, Chief Sustainability Officer

Read PMI’s Integrated Report 2023

1
STATEMENT OFPURPOSEPMI aims to completely replace cigarettes as soon as possible with smoke-free productsthat are scientifically substantiated to be less harmful than smoking, while in the longer
run laying the foundation of a strong business in the areas of broader lifestyle, consumer
wellness, and healthcare.
Our company’s purpose is clearly articulated in PMI’s Statement of Purpose, a declaration issued
by our Board of Directors. The Statement of Purpose also recognizes those stakeholders mostcritical to long-term value creation and sustainability.

EXCERPTS FROM PMI’S STATEMENT OF PURPOSE

In 2016, with the full support of theBoard of Directors, PMI announced its
new purpose of delivering a smokefree future. Since then, PMI has fullyaligned its employees with this purpose
and swiftly shifted its organizational
focus and resources to smoke-freealternatives. PMI is essentially disrupting
its traditional business from the insideout and is leading the industry in thisunprecedented transformation.

PMI’s key stakeholder constituencies,
which are fundamental to both theachieving of its purpose and to thepace of its progress, will be affected indifferent ways by PMI’s transformation.

To make its progress both measurable
and verifiable, PMI developed a set of
bespoke key performance indicators
called Business Transformation Metrics.
This set of metrics allow stakeholders
to assess both the pace and the scale ofits transformation and showcase how
it is allocating resources away from its
traditional cigarette business, aiming tobase success on a future where it nolonger makes or sells cigarettes.

PMI remains committed to accelerating
the end of smoking and laying thefoundations of a strong business in areasof wellness and healthcare as we strive
to develop commercially successful
products that have a net positive impact
on society.

Read PMI’s Statement of Purpose
Read more about PMI’s Stakeholder Engagement

PMI’s purpose is driven by its commitment to transform for good, which
guides its long-term strategy and resource allocation. By being clear
and consistent about our purpose, we have successfully adapted to thechanging needs and preferences of our consumers and stakeholders.
Understanding sustainability as an opportunity for innovation and growth
has allowed us to create products that are actively accelerating the declineof cigarette smoking, beyond what traditional tobacco control measures
can achieve alone (...).
—André Calantzopoulos, Executive Chairman

2
TRANSFORMINGTHE COMPANY

Transforming our company is not simply about substituting one product with another. It
requires changing our entire value chain, as well as the way in which we engage with society.
This has required a holistic review and overhaul of our entire business model and value
proposition, which brings challenges and opportunities to all aspects of our business.

PMI’S BUSINESS TRANSFORMATION
Producttransformation

Supporting transformation

Innovating for
better products

Combustible tobacco products

Growth priorities

Over the past decade and a half, we have harnessedscientific and technological advances to develop
alternatives to cigarettes that are scientifically
substantiated to be a better choice for adult smokers
than continued smoking. To achieve a smoke-free
future, we work relentlessly to phase out cigarettes
by replacing them with these less harmful alternatives
as quickly as possible.

Smoke-free products

Emerging opportunities

Wellness and healthcare

Internaltransformation
SOURCING

A new organizationand value chain

OPERATIONS

Since announcing our smoke-free vision, we haveundergone a meaningful reorganization, which
unfolds as we progress on our transformation journey.
Internally, we continue to invest in our employees to
upskill their knowledge while also recruiting top talent,
acquiring new capabilities, and incorporating new ways
of working.

COMMERCIALIZATION

Beyond our own operations, we are transforming every
step of our value chain to serve our company purpose.
We recognize the challenges these changes pose andare actively helping all those impacted (in our direct
and indirect operations) to best manage the transition.

CONSUMERS & REVENUES

Externaltransformation
Changing the way weengage with stakeholders

Consumers

Civil society

Employees

Public healthcommunity

Supply chain
and business
partners

Financecommunity

Regulators

Engaging with external stakeholders is critical toachieving our purpose. Our ability to successfullytransform requires that we work with multiple segmentsof society to create a paradigm shift in which cigarettes
become obsolete.

Read more about PMI’s Value Chain Transformation

3
BUSINESSTRANSFORMATIONMETRICS

We recognize that business transformation is a company-specific journey, which sustainability
reporting standards and frameworks fail to adequately capture. To make our progress towardachieving our purpose of becoming a smoke-free business both measurable and verifiable, wedeveloped our Business Transformation Metrics, a bespoke set of financial and nonfinancial
key performance indicators (KPIs). These metrics showcase how we are allocating resourcesaway from our legacy business as we advance toward a future in which we will no longer baseour success on making or selling cigarettes.
Aspirations linked to our Business Transformation Metrics give us a clear roadmap. Early in
our transformation journey, we set ambitious 2025 aspirations that grounded our purpose andgave direction to both our organization and external stakeholders as we ventured into what
was then uncharted territory. Our commitment to champion a smoke-free future remains
unwavering. However, nearly eight years since announcing our smoke-free vision, and withmore data and a better understanding of the business environment, it was prudent to pause
and revisit our aspirations as we look toward the next horizon: 2030.

Consumers &Revenues

BUSINESS TRANSFORMATION METRICS
2015
baseline

2021

2022

2023

Total number of users of PMI smoke-free products (in millions)¹*

0.2

21.7

24.9

28.6

Estimated number of users who have switched to PMI smokefree products and stopped smoking (in millions)¹*

0.1

15.3

17.8

20.8

0.7%

29.5%

32.1%

36.4%

>2/3 by 2030

Number of markets where smoke-free products are available
for sale³*

7

71

73

84

100 by 2025

Number of markets where adjusted net revenues from smokefree products exceed 50% of adjusted total net revenues*

0

10

17

25

~60 by 2030

Number of markets where adjusted net revenues from smokefree products exceed 75% of adjusted total net revenues*

0

0

0

3

~40 by 2030

Proportion of markets where smoke-free products are available
for sale that are low- and middle-income markets4*

17%

42%

42%

47%

>50% by 2025

Commercial (marketing) expenditure ratio (smoke-free/total)*

8%

73%

74%

74%

Smoke-free product shipment volume – heated tobacco units(billion units)⁵*

0

95

109

125

Shipment volume – nicotine pouch (million cans)*

0

1

42

421

Combustible tobacco product shipment volume (billion units)⁵*

877

645

642

633

Change in combustible tobacco product shipment volume(billion units) vs. 2015 baseline⁵*

n/a(26.4)%(26.8)%(27.9)%

Adjusted R&D expenditure ratio (smoke-free/total)⁶*

70%

99%

99%

99%

Supply chain direct spend expenditure (smoke-free/total)⁷

n/a

35%

43%

41%

3 out of48

9 out of38

14 out of49

16 out of50

Sourcing &Operations

Commercialization

Adjusted net revenues ratio (smoke-free/total)²*

Number of factories producing smoke-free products out of total
number of factories⁸** The 2023 metrics marked with an asterisk (*) are subject to PwC’s Limited
Assurance Report. See pages 203-205 in PMI's Integrated Report 2023.

Aspirations

4 Excluding PMI Duty Free. World Bank report issued in 2023 is used on acomparative basis for income level classification. For definition of low- andmiddle-income markets, see pages 208-211 in PMI's Integrated Report 2023.
5 These indicators are calculated based on millions of units. For definition of heated
tobacco units and combustible tobacco products, see pages 208-211 in PMI's
Integrated Report 2023. Combustible tobacco products shipment volume includes
cigarettes and other tobacco products expressed in cigarette equivalent units.
6 Adjusted R&D expenditure excludes asset acquisition cost related to OtiTopic, Inc.
in 2021. Total reported R&D expenditure in 2021 including these items amounted
to USD 617 million.
7 Direct spend focuses on materials used in the manufacture of our products; it
includes tobacco leaf, direct materials, and electronic devices and accessories. Data
excludes Swedish Match and Vectura Fertin Pharma.
8 Data reflects the number of factories operated and owned by PMI at the end of
the respective year. As of 2023, “Smoke-free products factories” is defined as
manufacturing facilities producing heated tobacco units and oral nicotine products.
Additionally, in 2023, PMI evolved its approach to report the number of factories
based on location instead of based on plant. If a facility is one location, but has
several physical areas (plants), the facility is counted as one. To provide
comparability, 2022 data has been restated on the same basis.

Notes:
Unless otherwise stated, all applicable business transformation metrics include
Swedish Match related data as of November 11, 2022 (acquisition date), as well as
Vectura Fertin Pharma.
In 2023, we evaluated and republished a new set of aspirations for 2030 to ensure
they remain ambitious, reasonable, and achievable in the context of a dynamic andevolving smoke-free industry, and the impacts of our recent acquisitions.
1 Figures pertain to total IQOS users. See pages 208-211 in PMI's Integrated
Report 2023.
2 For definition of net revenues related to smoke-free products, see pages 208-211
in PMI's Integrated Report 2023. Data excludes the impact related to terminationof distribution arrangement in the Middle East in 2023 and the impact related to
the Saudi Arabia customs assessments in 2021.
3 For definition of available for sale, see pages 208-211 in PMI's Integrated
Report 2023.

Read more about PMI’s Business Transformation Metrics

2023 allowed us to reflect on the strides we have made. It was a year
marked by unity, determination, and a continued commitment to our visionof a smoke-free future—evident in every endeavor we undertook and eachchallenge we transformed into an opportunity for growth.
—Jacek Olczak, CEO

PMI’s ESG framework recognizes two distinct forms of issues: those that relate to its products(what we produce), which are part of the “Product Impact” pillar, and those related to its business
operations (how we produce), which are part of the “Operational Impact” pillar. PMI classifies eachissue based on its environmental, social, or governance-related nature.

O P E R AT I O N A L

E

S

G

ENVIRONMENTAL

SOCIAL

GOVERNANCE

Materials andproduct eco-design–
Post-consumer
waste

Product healthimpact–Sales, marketing,and consumer
communications–
Innovation inwellness andhealthcare

Responsible R&D–
Product reliability–
Nicotine science

I M PAC T

PRODUCT

PRIORITYSUSTAINABILITY
TOPICSClimate–
Water–
Biodiversity

Diversity and inclusion–
Socioeconomic wellbeing of tobacco-farming
communities–
Human capitaldevelopment

Business integrity–
Respect forhuman rights–
Sustainable supply
chain management

Operational discharge–
Animal welfare

Labor standards–
Health and safety at work–
Employee well-being–
Philanthropy

Stakeholder engagement–
Data privacy–
Fair fiscal practices

I M PAC T

4

PMI’s approach to sustainability is guided by the outcomes of its 2021 sustainability materiality
assessment, which, following the principles of double materiality, identified the topics on which
PMI focuses and prioritizes resources.

Read PMI’s 2021 Sustainability Materiality Report
Read more about priorities for PMI’s Sustainability Strategy

5

Sustainability is more than just a means to minimize negative externalities and mitigate risks
while maximizing operational efficiency and resource optimization. We see it as a fundamental
opportunity for innovation, growth, and purpose-led, impact-driven, long-term value creation.

SUSTAINABILITYSTRATEGY

The company’s approach to sustainability addresses its ESG priorities through eight impactdriven strategies: four focus on product impacts, another four on impacts derived fromits business operations. The company’s policies, rules, and procedures define its ability tosuccessfully implement these strategies.
Read more about PMI’s Approach to Sustainability

6
11 GOALS–2025
ROADMAPPROGRESSPMI’s 2025 Roadmap outlines our key goals and informs the route of our company’s longterm plan. Running to the end of 2025, it comprises 11 headline goals, each connected to oureight strategies, which aim to address the priority ESG topics identified by our sustainability
materiality assessment.

PROGRESS ON OUR 2025 ROADMAPPRODUCT IMPACT
Progress
in 2023 Performance summary

Goals
1

Purposefully phaseout cigarettes

2

Maximizethe benefitsof smoke-free
products

Seek net positive
impact in wellness
and healthcare

45Reducepost-consumer
waste

Intentionally work towardphasing out cigarettes by
ensuring that we becomea substantially smoke-freecompany by net revenues
by 2030 and continue toreduce our combustible
shipment volume

Smoke-free products represented 36.4 percent of
our adjusted annual net revenues in 2023 (2022:
32.1 percent),1 and 18.6 percent of our total
shipment volume (2022: 15.3 percent).2 Meanwhile
our combustible tobacco product shipment volume
decreased by 27.9 percent versus 2015.

Product healthimpactDevelop and commercialize
science-based smoke-freealternatives, making themavailable in 100 markets (ofwhich at least half are lowand middle-income markets)and continue to increase thetotal number of users

By the end of 2023, our smoke-free products
were available for sale in 84 markets,3 of which
47 percent were low- and middle-income markets(2022: 73; 42 percent).4 We estimate thatapproximately 33 million adults worldwide wereusing our smoke-free products, including around28.6 million adults worldwide who were using IQOS
(2022: 24.9).5

Product healthimpact;Sales, marketing,and consumer
communications

During 2023, we strengthened governance foryouth access prevention programs in our indirect
retail channels and continued to cover a high share(98 percent) of our total shipment volume withthese programs.

Deploy robust youth accessprevention programs inindirect retail channels
and ensure that sales ofour products abide by ourMarketing Codes

3

6

Priority ESG topics
and primary SDGs

Lay the foundation to evolve
into a broader lifestyle,consumer wellness, andhealthcare company in thelong term

While we focus in the short- to medium-term on
capitalizing on our smoke-free products’ growthpotential, we remain convinced of the longer-term
potential of our wellness and healthcare business.

Innovation inwellnessand healthcare

Reduce post-consumer
waste and prevent
littering by implementing
comprehensive programs
covering all our consumables

We have expanded the scope of anti-littering
programs for cigarette butts to 76 percent of sales
volumes while continuing to roll out end-of-lifetake-back programs for smoke-free consumables,
now covering 17.6 percent of sales volumes.6

Materials andproduct ecodesign;
Post-consumer
waste

Follow eco-design andcircularity principles forall smoke-free electronic
devices

Smoke-free products—and heated tobacco
products, in particular—are a relatively new productcategory. As such, they are generally not coveredby existing product category rules. We havefurther defined our framework for eco-design andintegrated several sustainable design principles into
select pilot projects.

OPER ATIONAL IMPACT
7

Foster anempoweredand inclusive
workplace8

Improve the qualityof life of peoplein our supply chain

9

10

Tackle climatechange11

Preserve nature

Nurture a more diverse
culture that promotes equity
and inclusion by providing
access to lifelong learning
to all our employees andimproving gender andlocal representation in
management globally

In 2023, 32.0 percent of senior roles were held by
women. We continued to expand opportunities forlearning and development: By the end of 2023, 77
percent of our employees worldwide could accessstructured lifelong learning offers.

Diversity andinclusion;
Human capitaldevelopment

Eradicate systemic childlabor in our tobacco
supply chain

In 2023, child labor prevalence affected 0.1 percent
of our purchased tobacco and, while we broadly
eradicated systemic child labor issues in thefarms we contract with, we remain committed toeradicating isolated cases.7

Socioeconomic
well-being of
tobacco-farming
communities

Ensure all contracted
tobacco farmers makea living income; partnerwith our direct suppliers
to promote a living wage for
their workers

In 2023, we strengthened our tobacco farmer
living income calculation methodology and, by theend of the year, 96 percent of contracted farmers
supplying tobacco to PMI made a living income.

Achieve carbon neutrality
in our operations
and accelerate ourdecarbonization toward net
zero across our value chain

In 2023, our CO2e scope 1+2 emissions decreased
by 36 percent versus our 2019 baseline and our
net CO2e scope 1+2+3 emissions decreased by 13
percent within the same time frame, which keeps
us on track to reach carbon neutrality in our direct
operations by 2025 and net zero across our value
chain by 2040.8

Promote biodiversity,
address critical water
challenges, ensure no
conversion of natural
ecosystems, and halt
deforestation in both ourtobacco and pulp and paper
supply chains

In 2023, we achieved 94 percent of tobacco
Biodiversity;
purchased at no risk of net deforestation of
Water
managed natural forest and no conversion of natural
ecosystems, and 95 percent of paper, board, andpulp-based supplies purchased at no risk of grossdeforestation of primary and protected forests.9 Our
water stewardship initiatives have contributed to
optimizing a total of 8.1 million cubic meters of waterin our tobacco-growing areas since 2019, putting us
well on track to achieving our aspiration to optimize
25 million cubic meters of water by 2033.10

Note: Goals 1 and 4 were adjusted to reflect revised aspirations linked to our business
transformation (read more pages 24-25 in PMI's Integrated Report 2023).

4 Excluding PMI Duty Free. World Bank report issued in 2023 is used on acomparative basis for income level classification. For definition of low- andmiddle-income markets, see pages 208-211 in PMI's Integrated Report 2023.
5 Figures are based on IQOS user panels and PMI Market Research. Estimated user
numbers for oral nicotine and e-vapor are approximate, with further methodology
details to be provided in future disclosures. See pages 208-211 in PMI's Integrated
Report 2023.
6 Shipment volume includes heated tobacco units, e-vapor cartridges, and e-vapor
disposables. See PMI’s Sustainability KPI Protocol 2023 for further details.
7 For further details on how we calculate the prevalence of child labor in PMI’s
tobacco supply chain, please see PMI’s Sustainability KPI Protocol 2023.
8 Including Swedish Match.
9 For definitions, please see PMI’s Zero Deforestation Manifesto and PMI’s
Sustainability KPI Protocol 2023.
10 Indicator is based on the World Resources Institute’s volumetric benefit
accounting methodology and is verified by an external third party.

1 For definition of net revenues related to smoke-free products, see pages 208-211
in PMI's Integrated Report 2023. Data excludes the impact related to terminationof distribution arrangement in the Middle East in 202.
2 These indicators are calculated based on millions of units. For definition ofsmoke-free products and combustible tobacco products, see pages 208-211 in
PMI's Integrated Report 2023. Smoke-free products shipment volume includes
volume of smoke-free products that can be converted into cigarette equivalent
units, such as heat-not-burn, e-vapor, and oral nicotine. Total shipment volume
includes the listed smoke-free products as well as combustible tobacco products:
cigarettes and other tobacco products expressed in cigarette equivalent units.
Data does not include wellness and healthcare products.
3 For definition of available for sale, see pages 208-211 in PMI's Integrated
Report 2023.

7
SUSTAINABILITYINDEX

ClimatePMI’s Sustainability Index directly connects our 2025 Roadmap to specific KPIs andaspirations. The index has allowed PMI’s Board of Directors to enhance the company’scompensation practices, explicitly strengthening the link between long-term executive
compensation and sustainability performance. For that purpose, our Sustainability Index was
linked to part of our performance share unit (PSU) award and represents 30 percent of its
total for the 2023–2025 performance cycle.

SUSTAINABILITY INDEX 2023–2025
PRODUCT IMPACT
2025
aspirations

Key performance indicators

Purposefully phaseout cigarettes

Maximize the benefitsof smoke-free products

Reduce post-consumer
waste

1

Adjusted net revenues ratio (smoke-free/total)*†

>50%

2

Number of markets where smoke-free products areavailable for sale*†

1003Proportion of markets where smoke-free products
are available for sale that are low- and middle-income
markets*†>50%

4Proportion of shipment volume covered by markets withyouth access prevention programs in place in indirect retailchannels†>90%

5Proportion of shipment volumes covered by markets with
anti-littering programs in place for combustible cigarettes

≥80%

6

Proportion of shipment volume covered by markets with
end-of-life take-back programs in place for smoke-freeconsumables

≥80%

7

Proportion of PMI smoke-free devices with eco-design
certification

100%

8

Cumulative number of smoke-free electronic devices
refreshed or repaired since 2021 (in thousands)>1,000

KPI
weight

80%

20%

100%

Product Sustainability performance

OPER ATIONAL IMPACT
Foster an empowered
and inclusive workplace
Improve the qualityof life of people inour supply chain

Tackle climate change

9

Proportion of women in senior roles†

35%

10

Proportion of PMI employees who have access to
structured lifelong learning offers†

70%

11

Cumulative number of human rights impact assessments
conducted since 2018, with findings addressed†

12

Prevalence of child labor among contracted farmers
supplying tobacco to PMI

zero

13

Proportion of contracted farmers supplying tobacco to
PMI who make a living income

100%

14

Net carbon emissions in scope 1+2 (in thousands of metrictons)†zero

15

CO2e scope 3 FLAG absolute reduction versus 2019baseline (in line with science-based target)†

18%

10

Proportion of tobacco purchased at no risk of

Preserve nature

16 deforestation of managed natural forest and no conversionof natural ecosystems

50%

50%

100%

Operational Sustainability performance100%

PMI Sustainability Index

100%

The metrics marked with an asterisk (*) are subject to limited PwC’s Assurance Report in 2023. For definitions of the KPIs please refer to the PMI’s
Sustainability KPI Protocol 2023.
The aspirations for metrics marked with a cross (†) include Swedish Match’s operations in the Sustainability Index 2023–25.
Note: The Sustainability Index reflects KPIs approved by the Compensation and Leadership Development Committee of PMI’s Board of Directors on a yearly basis, andis not intended to reflect, among others, the current forward-looking goals or aspirations of the Company.

Read more about PMI’s Sustainability KPI Protocol

Strategic foresight unites our nonfinancial aspirations with financial
outcomes. This is consistent with our purpose, which increasingly
resonates with our stakeholders, and we believe powerfully demonstrates
the interplay between societal impact and the generation of long-term
shareholder returns. Delivering a smoke-free future and excelling in oursustainability aspirations are not just ethically sound decisions, they are
the bedrock of our strategy and the key to our shared success.
—Emmanuel Babeau, Chief Financial Officer

82023 HIGHLIGHTSP RO D U C T I M PAC T

~33 m

36.4%

84

25

USD 12.5 bn

98%

320,000

76%

17.6%

Estimated number of users of PMI
smoke-free products, including 28.6 m
IQOS users (2022: 24.9 m IQOS users)1

SOCIALSUSTAINABILITYPERFORMANCEHIGHLIGHTSE N V I RO N M E N T

Markets where smoke-free products
represented more than 50% of annual
net revenues (2022: 17)

Cumulative number of smoke-freeelectronic devices refreshed or repaired
since 2021 (2022: 157,000)6

Of adjusted net revenues derived fromsmoke-free products (2022: 32.1%)2

Markets where PMI smoke-free
products are available for sale,3 ofwhich 47% in low- and middle-income
markets4 (2022: 73, 42%)

Cumulative investment behind smokefree products since 2008 (2022: USD
10.7 bn)5

Of total shipment volume covered byyouth access prevention programs inindirect retail channels (2022: 91%)7

Of shipment volume covered by markets
with anti-littering programs in place for
combustible cigarettes (2022: 68%)6

Of shipment volume covered by markets
with smoke-free consumables take-backprograms (2022: 8.5%)6

SOCIALO P E R AT I O N A L I M P A C T

41.8%

8

0.1%

94%

Triple A

8.14

E N V I RO N M E N T

Of management positions held by
women, continuing to exceed ouraspiration of maintaining 40% (2022:
40.7%)

Proportion of tobacco purchased at norisk of net deforestation of managed
natural forest and no conversion ofnatural ecosystems (2022: 55%)6

Human rights impact assessments
conducted since 2018 in highest-riskcountries (2022: 7)6

Prevalence of child labor among
contracted farmers supplying tobacco to
PMI (2022: 0.1%)6

Score from CDP for climate, forest,
and water security for the fourthconsecutive year

Million cubic meters of water
optimized in our tobacco-growing
areas, cumulative since 2019 (2022: 4.94
million cubic meters)

1 Figures are based on IQOS user panels and PMI Market Research. Estimated user numbers for oral nicotine and e-vapor are approximate, with further methodology details tobe provided in future disclosures. See pages 208-211 in PMI's Integrated Report 2023.
2 For definition of net revenues related to smoke-free products, see pages 208-211 in PMI's Integrated Report 2023. Data excludes the impact related to termination of
distribution arrangement in the Middle East in 2023.
3 For definition of available for sale, see pages 208-211 in PMI's Integrated Report 2023.
4 Excluding PMI Duty Free. World Bank report issued in 2023 is used on a comparative basis for income level classification. For definition of low- and middle-income markets,see pages 208-211 in PMI's Integrated Report 2023.
5 Investments reflect research, product and commercial development, production capacity, scientific substantiation, and studies on adult smoker understanding. Figures do notinclude Swedish Match and Vectura Fertin Pharma.
6 See PMI’s Sustainability KPI Protocol 2023 for further details.
7 Total shipment volume includes cigarettes, other tobacco products (OTPs), and smoke-free product consumables. See PMI’s Sustainability KPI Protocol 2023 for further
details. Data excludes Swedish Match and Vectura Fertin Pharma.

9
RECOGNITIONS& ESG RATINGS

In 2023, PMI’s sustainability performance was recognized by ESG ratings providers andsustainability-related organizations, including:2023 score(and year-on-year
trend

S&P Global Corporate PMI was included for the first time in the Dow Jones Sustainability World
Index, and for the fourth consecutive year in the Dow Jones Sustainability
Sustainability
North America Composite Index (score as of November 24, 2023, Indices
Assessment
effective as of December 18, 2023).
ISS ESG

85/100

PMI achieved industry leadership, improving to a rating of “C+” andgaining “Prime” status for the first time, only one in the sector (score as ofNovember 21, 2023).

C+

CDP Climate, Forest,
Water Security

PMI was awarded a Triple A score for the fourth consecutive year inrecognition of its efforts to combat climate change, protect forests, andpromote water security.

AAA

CDP Supplier
Engagement

PMI earned a place on CDP’s Supplier Engagement Leaderboard for theseventh consecutive year.

Bloomberg GenderEquality Index

PMI was included for the third consecutive year in the Bloomberg GenderEquality Index (GEI) for its transparency in gender reporting and advancing
women’s equity (announcement on January 31, 2023).

Index member

Sustainalytics

PMI maintained its “Medium ESG Risk” classification scoring 27.7 (score asof December 28, 2023).

Medium risk

MSCI

PMI maintained a rating of BBB in the MSCI ESG Rating assessment (score
as of October 13, 2023).

BBB

TobaccoTransformation Index

PMI ranked second out of 15 tobacco companies assessed, leading
the industry in the “Strategy and Management,” “Capital Allocation &Expenditure,” and “Marketing Policy & Compliance” categories (score as of
September 2022).

3.69/5

State Street R-Factor

Achieved Leader (Universe level) and Outperformer (Industry level) rating(score as of February 1, 2024).

Outperformer

Leaderboard

Improved

Key

10
PMI
SUSTAINABILITYAROUND
THE WORLD–CASE STUDIESAND MARKETSTORIES

Maintained

As a strong complement to the content and data included in PMI’s 2023 Integrated Report,
the company has developed 8 case studies and market stories that showcase impact andhighlight how PMI affiliates worldwide drive sustainability. All case studies and market
stories are available here.

 PIECES OF LITTER = PILES OF L ASER FOCUS ONONE OF NATURE’S MOSTVALUABLE RESOURCES
BrazilPROBLEMS
Kazakhstan BUILDING CONFIDENCE AND SUPPORTING FEMALE



HOPE FOR RETIREMENT
Indonesia PMI’S HOLISTIC APPROACH TO

WATER STEWARDSHIP
Italy

ENTREPRENEURSHIP
Malawi RISING FROM

THE ASHES—REPLANTINGGREECE’S FIRE-RAVAGED FORESTSGreeceWATER CONSERVATION
Pakistan WATER GUARDIANS—PROTECTING HUMAN RIGHTS IMPACTASSESSMENT
Pakistan APPLYING IMPACT VALUATION

AND SOCIAL RETURN ON
INVESTMENT METHODOLOGIESTO PMI’S WASTE BANK PROJECT
Indonesia USING CREATIVITY TO

ENCOURAGE POSITIVE CHANGE
ON POST-CONSUMER WASTE
Bulgaria

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HEADQUARTERS
Philip Morris International Inc.
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www.pmi.com
This document should be read in conjunction with the Philip Morris International Inc. Integrated Report 2023,
available on www.pmi.com. Key terms and definitions are set forth in the Integrated Report referenced above.
Forward-looking and cautionary statements
The Integrated Report 2023 and related materials contain projections of future results and goals and otherforward-looking statements, including statements regarding expected financial or operational performance;
capital allocation plans; investment strategies; regulatory outcomes; market expectations; and business plans
and strategies. Achievement of future results is subject to risks, uncertainties and inaccurate assumptions. In
the event that risks or uncertainties, materialize, or underlying assumptions prove inaccurate, actual results
could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that,
individually or in the aggregate, could cause actual results and outcomes to differ materially from thosecontained in any forward-looking statements made by PMI.
PMI’s business risks include: excise tax increases and discriminatory tax structures; increasing marketing
and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate withadult consumers, or ban certain of our products in certain markets or countries; health concerns relating to
the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke;
litigation related to tobacco use and intellectual property; intense competition; the effects of global andindividual country economic, regulatory and political developments, natural disasters and conflicts; theimpact and consequences of Russia’s invasion of Ukraine; changes in adult smoker behavior; the impact
of COVID-19 on PMI’s business; lost revenues as a result of counterfeiting, contraband and cross-borderpurchases; governmental investigations; unfavorable currency exchange rates and currency devaluations,and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adversechanges in the cost, availability, and quality of tobacco and other agricultural products and raw materials, aswell as components and materials for our electronic devices; and the integrity of its information systems andeffectiveness of its data privacy policies.
PMI’s future profitability may also be adversely affected should it be unsuccessful in its attempts to produce
and commercialize reduced-risk products or if regulation or taxation do not differentiate between suchproducts and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter
new markets or improve its margins through increased prices and productivity gains; if it is unable to expand
its brand portfolio internally or through acquisitions and the development of strategic business relationships;
if it is unable to attract and retain the best global talent, including women or diverse candidates; or if it isunable to successfully integrate and realize the expected benefits from recent transactions and acquisitions.

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Future results are also subject to the lower predictability of our reduced-risk product category’s performance.
PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI’s
Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2023. PMI cautions thatthe foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI
does not undertake to update any forward-looking statement that it may make from time to time, except in
the normal course of its public disclosure obligations.
Notes
In this document, “PMI,” “we,” “us,” and “our” refer to Philip Morris International Inc. and its subsidiaries.
In this document and in related communications, the term “materiality,” “material,” and similar terms aredefined in the referenced sustainability standards and certain regulatory requirements, as may be applicable
to us, and are not meant to correspond to the concept of materiality under the U.S. securities laws and/or
disclosures required by the U.S. Securities and Exchange Commission.
This document contains references and links to websites operated by third parties. These references areprovided as a convenience to you and as an additional avenue of access to the information contained in thosesources; they should not be viewed as an endorsement by us of the content of these references and linked
sites or opinions of their authors.
Unless otherwise stated, all references to IQOS are to our IQOS heat-not-burn devices and consumables.
Trademarks and service marks in this report are the registered property of, or licensed by, the subsidiaries ofPhilip Morris International Inc., and are italicized or shown in their logo form.
This document reflects PMI’s current views and estimates based on the data and information available atthe time of publication. Changes in circumstances or new information may have occurred since the report’s
publication, which could impact the accuracy of certain details. This document includes metrics that are
subject to measurement uncertainties due to inherent limitations in the nature and methods for data collection
and measurement. The precision of different collection and measurement techniques may also vary. This
document includes data or information obtained from external sources or third parties.
Aspirations, targets, and goals 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 214 of PMI’s Integrated Report 2023.
This document should be read in conjunction with PMI’s Integrated Report 2023 and PMI’s Sustainability
KPI Protocol 2023.