Philip Morris International Releases Integrated Report Detailing Progress Towards Its Smoke-Free Vision
The 2024 Integrated Report marks a decade of PMI’s smoke-free journey and showcases the company’s business transformation and key sustainability achievements, as evidenced by performance on its Sustainability Index 2022-24
Dubai, United Arab Emirates, May 26, 2025 – Philip Morris International Inc. (NYSE: PM) recently published its sixth annual Integrated Report, marking the company’s 10th year of business transformation and sustainability disclosures. The document details PMI’s continued progress in delivering long-term value to shareholders and other stakeholders while advancing its purpose of having its smoke-free alternatives make cigarettes obsolete as soon as possible.
“Our 2024 Integrated Report celebrates a milestone year that marked the 10th anniversary of the commercialization of IQOS, VEEV and ZYN and our journey toward achieving one of the most ambitious business transformations in modern history,” said Jacek Olczak, Chief Executive Officer of PMI. “By the end of 2024, our efforts to expand access to smoke-free products allowed us to reach 95 markets with an estimated 38.6 million adult users, demonstrating our deep commitment to sustainability and business transformation.
These achievements fill me with profound optimism as we continue to create long-term value while addressing our product and operational impacts, not only sustaining but accelerating our momentum, accomplishing a number of goals that only a few years ago seemed too ambitious.”
The Integrated Report describes the company’s strategy, business model, and both product-related (‘what’ the Company produces) and operational-related (‘how’ the Company operates) performance.
The report explains the Company’s performance and approach to sustainability in the context of a comprehensive five-pillar framework that includes compliance and risk mitigation as well as operational efficiency, innovation, and purposeful impact. It emphasizes how regulatory compliance serves as the foundation while risk management ensures business resilience. It highlights how this approach streamlines processes for enhanced productivity and profitability, aligns sustainability with long-term business goals to drive innovation and competitive value, and ultimately aims to lead a significant industry transformation by influencing standards, shaping policy, and driving systemic change that redefines market expectations.
“The path to transformation is rarely linear, and our experience in 2024 reinforces a crucial truth: Achieving a smoke-free future requires collective effort beyond our direct control. Our smoke-free business accounted for approximately 39% of PMI’s total net revenues for the full year 2024, with an acceleration in top- and bottom-line growth. Competing in the cigarette market while simultaneously working to transform it is not a contradiction but a necessary phase in our journey,” said Emmanuel Babeau, Chief Financial Officer of PMI. “Our integrated approach—linking financial success with positive impact—positions us well to continue investing in the future. We remain confident that our financial strength, combined with our sustainability leadership, is the right path forward.”
Product and Operational Impact: Performance Highlights
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Six markets where more than 75% of net revenues are generated from smoke-free.
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Over USD 14 billion cumulative investment behind smoke-free products since 2008 (2023: USD 12.5)
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99% of total shipment volume covered by youth access prevention programs in indirect retail channels (2023: 98%)
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99% of contracted farmers supplying tobacco to PMI who make a living income (2023: 96%)
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10 human rights impact assessments completed since 2018 in highest-risk countries (2023: 8)
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61% of PMI manufacturing facilities certified as carbon neutral (2023: 43%)
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First pre-certified environmental product declarations (EPD) published on IQOS ILUMA i series of devices
“We understand the importance of setting ambitious yet realistic targets that drive our business success. Our Sustainability Index has proven instrumental in ensuring our ambitions are balanced and our metrics are objective, while our enhanced nonfinancial data governance helps us report with precision and consistency,” said Jennifer Motles, Chief Sustainability Officer of PMI. “Our commitment to sustainability is inseparable from future-proofing our business, creating tangible impacts within our control and sphere of influence, and contributing to a transformation that extends beyond our company.”
The Integrated Report 2024 has been prepared with reference to the Global Reporting Initiative (GRI) Universal Standards (2021) and relevant topic-specific standards. The report takes into account guidance from the International Sustainability Standards Board (ISSB) of the IFRS Foundation, including using its SASB Standards, Integrated Thinking Principles, and Integrated Reporting Framework. PMI’s SASB Index and GRI Index, which also maps the principles and standards of the UN Global Compact (UNGC), is available on PMI.com. The report is accompanied by the PMI Sustainability KPI Protocol 2024, which provides a transparent explanation of how we define and measure progress for each Sustainability Index KPI.
Please visit pmi.com/sustainability to learn more and read the full Integrated Report 2024, as well as case studies and market stories and the Sustainability KPI Protocol 2024.
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Philip Morris International: A Global Smoke-Free Champion
Philip Morris International is a leading international consumer goods company, actively delivering 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, including heat-not-burn, nicotine pouch and e-vapor products. As of December 31, 2024, PMI’s smoke-free products were available for sale in 95 markets, and PMI estimates they were used by 38.6 million adults around the world. The smoke-free business accounted for 42% of PMI’s first-quarter 2025 total net revenues. Since 2008, PMI has invested over $14 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.
Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables – the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness and healthcare areas and aims to enhance life through the delivery of seamless health experiences. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.
