Business Wire

S&P Global Ratings Recognizes PMI’s Business Transformation as Industry Differentiator

Share

Philip Morris International Inc. (PMI) (NYSE:PM) is transforming its business to deliver a smoke-free and sustainable future. Today, the company announced that S&P Global Ratings’ ESG Evaluation report has assessed PMI’s approach to environmental, social, and governance (ESG) topics and confirmed that PMI has positively differentiated itself within the tobacco sector.

The S&P Global Ratings ESG evaluation assesses a company’s ESG strategy and ability to prepare for potential future risks and opportunities, and provides a forward-looking, long-term opinion of a company’s readiness for disruptive ESG risks and opportunities. It provides an overall score that allows comparison with other entities globally, including sector peers, and consists of a combined sector/region score, an entity-specific score, and a preparedness score. Based on entity-specific scores — designed to indicate how a company is actively and effectively managing its exposure to ESG risks and opportunities compared with its industry peers—PMI is placed third in the E-entity specific score, 8th in the S-entity specific score, and 15th in the G-entity specific score among all 25 current publicly available ESG evaluations.

“I am proud that our dedication to sustainability, which is fundamental to the transformation of our company, has been recognized externally by S&P Global Ratings,” said Emmanuel Babeau, Chief Financial Officer, PMI. “It is our firm belief that sustainability and business performance do not follow separate paths—they are fully interrelated and mutually reinforcing, and should be organized and presented to all stakeholders, including shareholders, in an integrated way.”

In February 2021, PMI announced an increased ambition for the contribution of its smoke-free products to total net revenues to more than 50 percent in 2025, meaning that in five years, cigarettes would account for less than half of PMI’s total net revenues. The company also stated its aspiration to commercialize its smoke-free products in a total of 100 markets by the end of 2025, from 64 at the end of 2020. Additionally, PMI announced an aspirational target of at least USD 1 billion in annual net revenues from “beyond nicotine” products by 2025. This new aspiration reflects additional growth potential and further acceleration of the company’s transformation, leveraging PMI’s significant capabilities within life sciences, device technology, consumer expertise and more.

Recognizing PMI’s work in delivering a smoke-free future, S&P Global Ratings notes: “The company has made significant R&D investments, by sector standards, and is upskilling its management team to prepare for this transition. In our view, the company is well placed to meet its ambitions.” Adding: “We believe PMI is adequately prepared for future disruptions, reflecting its significant investments in [reduced-risk products (RRPs)], which smokers seem to accept as an alternative to cigarettes, and its solid track record of strategic execution despite headwinds.” S&P also recognized PMI’s “approach to customer engagement—unique among its peers—which educates consumers directly about the health consequences of sustained tobacco use and supports low-income customers in making the transition from cigarettes to reduced-risk products.”

To make its progress both measurable and comprehensive, PMI developed a set of bespoke key performance indicators (KPIs) that it calls Business Transformation Metrics (BTM), which PMI reports on periodically, allowing stakeholders to better assess both the pace and the scale of its transformation. Many of the data indicators showcase how PMI is reallocating resources from its traditional cigarette business, basing its success on a future in which it no longer makes or sells cigarettes. Additionally, in 2020, PMI integrated its sustainability and finance functions, so that the sustainability function now reports to the CFO. That year, the company’s Board of Directors also issued and signed a Statement of Purpose, published in PMI’s Proxy Statement, reaffirming its commitment to delivering on a future away from cigarettes.

On preparedness for the future, the S&P ESG Evaluation states: “Management strongly believes in embedding a new culture across the board and in PMI’s leadership team, with the same mindset and behaviors trickling down the organization. It has made significant organizational changes in the past three years with 45 percent of senior management being new. The senior team has been upskilled on topics such as sustainability, technology, and pharmacology. The company aims for at least 40 million adults [to have switched to PMI’s smoke-free products and stopped smoking by 2025. The target is backed by a remuneration structure that links executives’ performances to the progression of the RRPs.”

“Aligned with our purpose and commitment to put sustainability at the core of our corporate strategy, we are working to seamlessly integrate ESG into our culture, business strategy, and executive-compensation determinations. We aim to continuously improve our performance and drive significant and measurable progress toward our targets and aspirations—all communicated through open and clear reporting,” said Jennifer Motles, Chief Sustainability Officer, PMI. “Our upcoming Integrated Report will provide a comprehensive overview of our main challenges and explain how we approach them. The product—and its impact on health—remains at the core of PMI’s strategy.”

Later this month, PMI will release its 2020 Integrated Report, which details how the organization’s strategy, governance, performance, and prospects create value over the short, medium, and long term. For more information, visit www.PMI.com/Sustainability.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and other forward-looking statements. 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 those contained 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 with adult consumers, or ban certain of our products; 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 and individual country economic, regulatory and political developments, natural disasters and conflicts; changes in adult smoker behavior; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as components and materials for our electronic devices; and the integrity of its information systems and effectiveness 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 such products 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; or if it is unable to attract and retain the best global talent. Future results are also subject to the lower predictability of our reduced-risk product category’s performance.

The COVID-19 pandemic has created significant societal and economic disruption, and resulted in closures of stores, factories and offices, and restrictions on manufacturing, distribution and travel, all of which will adversely impact our business, results of operations, cash flows and financial position during the continuation of the pandemic. Our business continuity plans and other safeguards may not be effective to mitigate the impact of the pandemic. Currently, significant risks include our diminished ability to convert adult smokers to our RRPs, significant volume declines in our duty-free business and certain other key markets, disruptions or delays in our manufacturing and supply chain, increased currency volatility, and delays in certain cost saving, transformation and restructuring initiatives. Our business could also be adversely impacted if key personnel or a significant number of employees or business partners become unavailable due to the COVID-19 outbreak. The significant adverse impact of COVID-19 on the economic or political conditions in markets in which we operate could result in changes to the preferences of our adult consumers and lower demand for our products, particularly for our mid-price or premium-price brands. Continuation of the pandemic could disrupt our access to the credit markets or increase our borrowing costs. Governments may temporarily be unable to focus on the development of science-based regulatory frameworks for the development and commercialization of RRPs or on the enforcement or implementation of regulations that are significant to our business. In addition, messaging about the potential negative impacts of the use of our products on COVID-19 risks may lead to increasingly restrictive regulatory measures on the sale and use of our products, negatively impact demand for our products, the willingness of adult consumers to switch to our RRPs and our efforts to advocate for the development of science-based regulatory frameworks for the development and commercialization of RRPs.

The impact of these risks also depends on factors beyond our knowledge or control, including the duration and severity of the pandemic, its recurrence in our key markets, actions taken to contain its spread and to mitigate its public health effects, and the ultimate economic consequences thereof.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including the Form 10-Q for the quarter ended March 31, 2021. PMI cautions that the 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.

Philip Morris International: Delivering a Smoke-Free Future

Philip Morris International (PMI) is leading a transformation in the tobacco industry to create a smoke-free future and ultimately replace cigarettes with smoke-free products to the benefit of adults who would otherwise continue to smoke, society, the company, and its shareholders. PMI is a leading international tobacco company engaged in the manufacture and sale of cigarettes, as well as smoke-free products, associated electronic devices and accessories, and other nicotine-containing products in markets outside the U.S. In addition, PMI ships versions of its IQOS Platform 1 device and consumables to Altria Group, Inc. for sale under license in the U.S., where these products have received marketing authorizations from the U.S. Food and Drug Administration (FDA) under the premarket tobacco product application (PMTA) pathway; the FDA has also authorized the marketing of a version of IQOS and its consumables as a modified risk tobacco product (MRTP), finding that an exposure modification order for these products is appropriate to promote the public health. PMI is building a future on a new category of smoke-free products that, while not risk-free, are a much better choice than continuing to smoke. Through multidisciplinary capabilities in product development, state-of-the-art facilities, and scientific substantiation, PMI aims to ensure that its smoke-free products meet adult consumer preferences and rigorous regulatory requirements. PMI’s smoke-free product portfolio includes heat-not-burn and nicotine-containing vapor products. As of March 31, 2021, PMI’s smoke-free products are available for sale in 66 markets in key cities or nationwide, and PMI estimates that approximately 14 million adults around the world have already switched to IQOS and stopped smoking. For more information, please visit www.pmi.com and www.pmiscience.com.

S&P Global Ratings ESG Evaluation

S&P Global Ratings ESG Evaluation is an assessment of a company’s ESG strategy and ability to prepare for potential future risks and opportunities. The ESG Evaluation provides a forward-looking, long-term opinion of readiness for disruptive ESG risks and opportunities. The methodology is founded on this organization’s sector and company expertise, relying upon in-depth engagement with company management to assess material ESG impacts on the company, past, present, and future.

# # #

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

Philip Morris International
Daniella Weinberg
Philip Morris International
T. +41 (0)58 242 4500
E. daniella.weinberg@pmi.com

About Business Wire

Business Wire
Business Wire



Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Teva Presents New Data at 7th European Academy of Neurology Congress Suggesting Socio-Economic Factors May Contribute to the Significant Under-Diagnosis of Migraine21.6.2021 14:01:00 CEST | Press release

Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) today presented new epidemiology data on migraine from the State of Israel which indicate that socio-economic factors may contribute to underdiagnosis of migraine across society1. A retrospective study of migraine epidemiology in Southern Israel, supported by Teva and presented at the virtual 7th Congress of the European Academy of Neurology (EAN), found extreme variability in the prevalence of diagnosed patients with migraine across the geographic area studied. Prevalence rates were positively associated with the socio-economic status of the geographic area studied, suggesting that those living with migraine from less advantaged areas may find it harder to achieve an accurate diagnosis and thereby access appropriate therapy. “These findings are concerning not least because they suggest significant ‘migraine awareness inequity’ in this population,” said Professor Gal Ifergane, study investigator, practitioner, head of the Depart

New Data Supporting the Safety and Efficacy Profile of AJOVY® (fremanezumab) Shared at 7th European Academy of Neurology Congress21.6.2021 14:01:00 CEST | Press release

A new analysis presented by Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) on AJOVY® (fremanezumab) injection for the preventive treatment of migraine, indicates to the European neurology community that the medicine has a positive safety profile in relation to risk of cardiovascular events. The data, drawn from an analysis of three published Phase 3 studies of fremanezumab and presented at the 7th Congress of the European Academy of Neurology (EAN), showed minimal changes in the heart rate and blood pressure of those patients studied over a 12 week period. 1 “As a CGRP inhibitor, fremanezumab has been shown to provide protection against migraine in suitable patients, and we remain focused on continued assessment of the safety profile of this therapy, particularly in relation to heart-related issues as it is believed CGRP itself acts as a ‘safeguard’ during cardiovascular ischemia and other events,” said Dr Joshua M. Cohen, Senior Director and Global Therapeutic Area Lead, Mi

Ezbob Introduces New SaaS Platform to Meet the Changing Landscape of Digital Banking21.6.2021 11:00:00 CEST | Press release

Ezbob Ltd., an innovator in customer acquisition technology for financial services, today announced the introduction of a new modular SaaS platform that addresses key trends in the sector. The company’s Ezbob Express™, focuses on three important needs: offering financial service providers the flexibility of filling gaps in their digital transformation strategies, enabling them to make more precise complex credit and risk decisions in real-time, and facilitating the growth of embedded finance. Ezbob’s new Express customer acquisition platform has a modular approach, enabling financial institutions with gaps in their digital channel to add the functionality needed to achieve a customised digital experience. The new modules include: UX & Process Design, Compliance & Authentication, Credit & Risk Decisioning and Product Recommender. Since its inception Ezbob has been providing digital onboarding services for many well-known financial institutions including Santander, NatWest, Metro Bank, P

Ambarella Expands Security AI Vision SoC Portfolio With Two New Families; Doubles Resolution to 32MP30 for 4K Multi-Imager Cameras With Advanced AI21.6.2021 11:00:00 CEST | Press release

Ambarella, Inc. (NASDAQ: AMBA), an AI vision silicon company, today announced the expansion of its AI vision SoC portfolio with the new CV5S and CV52S security families. Based on the CVflow® architecture and advanced 5nm process technology, the new SoCs support simultaneous 4K encoding and advanced AI processing in a single low-power design, which provides industry-leading edge AI SoC performance per watt. The CV5S family is ideal for security camera applications that require multiple sensors for 360-degree coverage, over a wide area and with a long range, such as outdoor city environments or large buildings. The CV52S family is designed for single-sensor security cameras with advanced AI performance that need to more clearly identify individuals or objects in a scene, including faces and license plate numbers over long distances, such as ITS traffic cameras. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210621005178/en/ Am

Jardiance ® (empagliflozin) approved in Europe for the treatment of heart failure with reduced ejection fraction21.6.2021 10:36:00 CEST | Press release

The European Commission has granted marketing authorization for Jardiance® (empagliflozin) as a treatment for adults with symptomatic chronic heart failure with reduced ejection fraction (systolic heart failure), Boehringer Ingelheim and Eli Lilly and Company have announced.The extension of the indication follows a positive recommendation by the Committee for Medicinal Products for Human Use (CHMP) on 20 May 2021.2 This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210621005298/en/ “Today’s approval provides an important new treatment option which can now help the millions of people in Europe living with symptomatic chronic heart failure with reduced ejection fraction,” said Faiez Zannad, M.D., Ph.D., EMPEROR Program clinical investigator and Emeritus Professor of Therapeutics at the University of Lorraine, France. “New treatment options such as empagliflozin can save lives and help people spend less time in the hospital and mor

SK Capital Reaches Agreement to Sell Niacet for $1,015m21.6.2021 10:00:00 CEST | Press release

An affiliate of funds advised by SK Capital Partners, LP (“SK Capital”) announced today that it reached agreement to sell Niacet Corp. (“Niacet”) to Kerry Group plc, the global taste and nutrition company, for $1,015m (€853m¹) on a cash-free, debt-free basis, subject to customary closing adjustments. Following the acquisition, Niacet will be integrated into Kerry’s global food protection and preservation platform. Jack Norris, Managing Director at SK Capital, said, “SK Capital is privileged to have partnered with Kelly Brannen and the entire Niacet team. We are proud and appreciative of Niacet’s accomplishments over the last four years leveraging the strong foundation the Brannen family built over many decades. We believe Niacet is well-positioned to continue this growth and flourish under Kerry’s ownership. We wish Kerry and all the employees of Niacet every success.” Kelly Brannen, CEO and significant minority owner of Niacet, commented, “We are proud of the rich heritage we have bui

ISAE-SUPAERO's "Collaborative Rover and Drone" Project, Facilitating the Exploration of the Moon21.6.2021 09:54:00 CEST | Press release

While Thomas Pesquet launched on April 22 as part of the Alpha mission, one of humanity's biggest challenges remains even further away than the ISS, 400,000 km from Earth: the establishment of a lunar base. But before being able to settle on the Moon in a prolonged way to exploit its resources or as a logistic support for future exploration missions further away, an exploration work is necessary. The use of autonomous robotic systems would allow mapping of dangerous or hard-to-reach areas from space, before eventually deploying infrastructure such as a spaceport or human habitation. Faced with this exploration challenge, the Space Advanced Concepts Laboratory (SaCLaB) of ISAE-SUPAERO in Toulouse and a team of students from the Institute are developing the Collaborative Rover and Drone (CoRoDro) project to study navigation and autonomous operations for space robotic systems. This scientific study is one of 12 university technology projects selected in 8 different countries as part of th

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom