The new ESG KPI Protocol and the ESG Highlights, which are linked to PMI's newly introduced Sustainability Index, provide data-driven insight into PMI's ESG performance.

Philip Morris International Inc. made its ESG KPI Protocol public following the introduction of PMI's Sustainability Index. This document describes how PMI's Sustainability Index will measure progress toward the goals outlined in its 2025 Roadmap and provides information on the 19 metrics that comprise PMI's Sustainability Index.

This announcement comes on the heels of the publication of PMI's Integrated Report 2021, which includes information about the company's Sustainability Index, and the 2022 Proxy Statement, which explains how long-term executive compensation is linked to the company's 2025 Roadmap via the Sustainability Index.

The ESG KPI Protocol is a separate, dedicated explanation of the mechanics of the Sustainability Index. It includes the definition, methodology, and scope of each of the Sustainability Index's key performance indicators (KPIs) in order to provide measurable, verifiable, consistent, and accurate progress reporting.

PMI intends to increase transparency on the key metrics used to measure how the company is progressing toward achieving its purpose and creating value for shareholders and other stakeholders by publishing its ESG KPI Protocol.

Furthermore, the ESG KPI Protocol establishes a company-specific framework and clearly defines KPIs that can provide the organization with a method for connecting the company's purpose, strategic direction, financial performance, and environmental and social considerations.

“As sustainability matures and gains importance inside and outside our company, the question of how to measure ESG performance is something many continue to grapple with. Accordingly, we developed a clear process for establishing concrete definitions, documentation, and controls for sustainability with the aim of standardizing how we measure ESG performance,”

said Jennifer Motles, Chief Sustainability Officer.

“We have long expressed our support for more rigor in sustainability-related reporting—and not just for companies, but also for ESG ratings and related products. There is a need for greater transparency, more robust methodologies, and better clarity on definitions and assumptions. We certainly welcome recent developments leading to more consistency in standards under strong governance frameworks.”

PMI also released its 2021 ESG Highlights, a data-driven document based on the company's 2021 Integrated Report and designed to supplement investor relations materials. It aims to increase investor engagement and understanding of PMI's sustainability strategy and transformation's relevance and robustness.

Source: PMI news