The company’s ISS ESG corporate rating was also upgraded to ‘prime’ status
STAMFORD, CT--(BUSINESS WIRE)--Philip Morris International Inc. (PMI) (NYSE: PM) has been included in the Dow Jones Sustainability™ World Index for the first time, and for the fourth consecutive year in the Dow Jones Sustainability™ North America Composite Index.1 The Dow Jones Sustainability™ World Index is one of the most reputable benchmarks for measuring the sustainability performance of companies worldwide, as identified by S&P Global through the annual Corporate Sustainability Assessment (CSA). The World Index includes the top 10% of the largest 2,500 companies in the S&P Global Broad Market Index based on long-term economic, environmental, and social criteria.
“Investors and other financial stakeholders place increasing value on reliable, robust, and timely measures of sustainability performance,” said Emmanuel Babeau, chief financial officer, PMI. “ESG ratings are one part of the input dataset for many institutional investors. Through our annual integrated report, and the ever-strengthening processes and initiatives that underpin it, we aim to provide a holistic and extensive view of our performance across the most material sustainability issues for our business.”
PMI scored 85 out of 100 in the 2023 S&P Global CSA2 reflecting a significant increase of 21 points since it first began engaging with the ranking in 2018. This is the first year PMI has recorded the highest CSA score out of 13 companies assessed in the tobacco industry by S&P.3
The recognition of PMI’s best-in-class sustainability performance has not only been recognized by S&P—earlier this month, ISS ESG Corporate Rating qualified PMI as “Prime” status according to their rating methodology.4 Prime status is awarded to companies with an ESG performance above a sector-specific threshold, which means that they fulfill ambitious absolute performance requirements. According to ISS, the Prime rating classification qualifies companies for responsible investment. To date, PMI is the only company in the tobacco industry to ever receive Prime status qualification.
“A reflection of hard work, perseverance, deep commitment to sustainability, impactful performance, and best-in-class reporting allows PMI to be recognized externally for its leadership in sustainability performance and transparency. We are the only company in our sector included in the Dow Jones Sustainability™ World Index, leading the tobacco industry in this rating for the first time,” said Jennifer Motles, chief sustainability officer, PMI. “Our north star is to create a net positive impact that benefits our company, shareholders, consumers, and society. This recognition signals we are on the right track. Our approach to sustainability is deeply embedded in our corporate strategy and is a true opportunity for innovation, growth, and purpose-led, impact-driven, long-term value creation. I look forward to the journey ahead as we remain committed to transform for good.”
Further to the recognition by S&P and ISS ESG, PMI’s performance in various sustainability ratings to date demonstrate the company’s leadership on sustainability performance and transparency. Some of these include PMI’s Triple A score on CDP for the third consecutive year,5 PMI’s inclusion in the Bloomberg Gender Equality Index for the second consecutive year, and recognition as a top performer by WBCSD Reporting Matters for its transparent and robust reporting practices for the third consecutive year.6
Learn more about PMI’s sustainability performance by downloading its Integrated Report 2022, or visiting pmi.com/sustainability.
S&P Dow Jones Indices
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit: www.spglobal.com/spdji
ISS ESG Corporate Rating
ISS ESG solutions enable investors to develop and integrate sustainable investing policies and practices, engage on responsible investment issues, and monitor portfolio company practices through screening solutions. ISS ESG also provides climate data, analytics, and advisory services to help financial market participants understand, measure, and act on climate-related risks across all asset classes. In addition, ESG solutions cover corporate and country ESG research and ratings enabling its clients to identify material social and environmental risks and opportunities. For more information, please visit: www.iss-esg.com
Philip Morris International: Delivering a Smoke-Free Future
Philip Morris International (PMI) is a leading international tobacco company working to deliver a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes 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 of cigarettes. 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 post-market studies. In November 2022, PMI acquired Swedish Match – a leader in oral nicotine delivery – creating a global smoke-free champion led by the companies’ IQOS and ZYN brands. The U.S. Food and Drug Administration has authorized versions of PMI’s IQOS Platform 1 devices and consumables and Swedish Match’s General snus as Modified Risk Tobacco Products. As of September 30, 2023, PMI's smoke-free products were available for sale in 82 markets, and PMI estimates that approximately 19.7 million adults around the world had already switched to IQOS and stopped smoking. Smoke-free products accounted for approximately 36.2% of PMI’s total third-quarter 2023 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 business, aims to enhance life through the delivery of seamless health experiences. For more information, please visit www.pmi.com and www.pmiscience.com.
1 Index inclusion announced on Dec. 8, 2023, effective as of Dec. 18, 2023
2 CSA Score as of Nov. 24, 2023
3 Sector ranking based on CSA Score as of Nov. 24, 2023
4 ISS ESG Rating as of Nov. 21, 2023
5 Based CDP Climate, Forest, and Water Security 2022
6 Reporting matters 2023 (wbcsd.org)
