Philip Morris International Inc. (PMI) has published its Sustainability Materiality Report 2021.

Conducted in the second half of 2021, the sustainability materiality assessment helps identify the environmental, social, and governance (ESG) issues that the company should focus on. The assessment consists of a threefold approach that evaluates both outward and inward impacts in line with the principles of double-materiality, and accounts for the expectations of the company’s stakeholders. The report describes the sustainability materiality assessment process and findings, which inform PMI’s sustainability strategy.
Results of PMI’s 2021 sustainability materiality assessment led to the development of a renewed strategic framework, which shows two distinct forms of social and environmental impacts: (1) those that derive from PMI’s products (from what it produces); and (2) those that derive from its business activities (from how it operates). Topics related to the social impacts generated by PMI’s products—including “product health impacts,” “sales, marketing, and consumer communications,” and “wellness and healthcare”—were identified as a clear priority and represent those areas with the greatest transformative potential for the Company. In specific, “product health impact” was deemed the topic carrying both the biggest risks and the greatest opportunities linked to reputation, regulation, and revenue growth. Further, “wellness and healthcare” was included as a new topic in the 2021 assessment, in line with PMI’s aims to generate revenues from products that do not contain tobacco or nicotine and to transition into a broader lifestyle and consumer wellness company. Additionally, PMI identified three topics that were not included in the list of most material topics, but that the Company expects to gain momentum in the future: “human capital development,” “biodiversity,” and “water.”
“As we continue to strengthen the integration of ESG-related risks into our integrated enterprise risk assessment, conducting periodic sustainability materiality assessments allows us to monitor and adapt our business and long-term strategy to social, environmental, economic, political, and technological changes,” said Jennifer Motles, Chief Sustainability Officer, PMI. “With every assessment, we are able to further embed sustainability into corporate strategy strengthening processes, understanding PMI’s impacts, and delivering decision-useful reporting to our stakeholders.”
The 2021 assessment followed a structured five-step approach, namely: (1) identifying ESG topics; (2) gathering internal and external stakeholder perspectives; (3) assessing outward impacts; (4) assessing inward impacts; and (5) defining the most material ESG topics. By compiling all findings from the assessment, PMI identified six topics that cumulatively received the highest scores in both the inward and the outward impact assessments, as well as three topics that were of very high importance according to stakeholders. Finally, PMI identified three topics that were not included in the list of most sustainability material topics but are expected to gain momentum in the future.

To read the Sustainability Materiality Report 2021, please visit this link