Better Health for All
-70
Philip Morris International's core products, traditional cigarettes, are a primary cause of the global tobacco epidemic, killing over 7 million people annually.
1
In Q1 2025, 58% of PMI's revenue came from these products, which have severe, widespread health damage.
2
While the company invests in smoke-free alternatives, these products still contain addictive nicotine and have potential health risks, with long-term effects not fully studied.
3
PMI actively targets vulnerable populations, including youth and low- and middle-income countries, with marketing for both cigarettes and nicotine products.
4
The 'Be Marlboro' campaign was banned in Germany for targeting youth, and Zyn is promoted by 'Zynfluencers' and gamified reward programs that appeal to teenagers and non-smokers.
5
The company's business model is dependent on addiction, and it has introduced new flavored cigarettes, banned in the U.S. for attracting youth, and markets highly addictive oral nicotine pouches.
6
PMI has actively challenged stronger health warnings and plain packaging laws in multiple countries, indicating resistance to comprehensive risk disclosure.
7
However, it states that nicotine is addictive and not risk-free, discusses a 'continuum of risk,' and registers its clinical studies publicly.
8
Clinical studies on smoke-free products are conducted by contract research organizations according to strict guidelines and ethical standards, and are aligned with FDA guidance.
9
PMI's operations are described as a primary obstacle to reducing tobacco use, indicating major health-harming externalities.
10
Fair Money & Economic Opportunity
10
PMI U.S. has committed $5 million over five years to partner with the Women's Business Development Council (WBDC) for the Women's Economic Empowerment Initiative.
1
This program has helped approximately 75% of its clients (over 14,170 out of 18,900) launch, sustain, and scale businesses, create over 31,400 jobs, and access more than $57 million in capital, demonstrating significant wealth-building outcomes.
2
As a tobacco company, PMI does not offer lending or deposit services to consumers, and its core business lies outside finance, making several financial inclusion KPIs not applicable.
Fair Pay & Worker Respect
50
In 2020, 62% of employees were covered by collective labor agreements.
1
The company achieved Global EQUAL-SALARY Certification in 2019, maintained through 2023, confirming equal pay for male and female employees for equal work.
2
The voluntary employee turnover rate was 4.9% in 2017.
3
The Lost Time Injury (LTI) rate was 0.10 per 200,000 hours worked in 2017, though two fatalities occurred in the same year.
4
However, allegations from 2022 indicate that subcontracted workers at a factory in Turkey faced lower pay, denial of benefits, and lacked collective bargaining coverage, with approximately 120 workers reportedly dismissed amid anti-union practices.
5
Fair Trade & Ethical Sourcing
20
PMI's Integrated Production System (IPS) provides traceability for 96% of its purchases
1
, further enhanced by the Sustainable Tobacco Supply Chain (STSC) Framework introduced in 2022
2
. The company's Responsible Sourcing Principles (RSPs), updated in 2023
3
, outline supplier requirements for human rights and environmental protection
4
. Through its Agricultural Labor Practices (ALP) Program, established in 2011
5
, PMI aims to achieve zero child labor by 2025
6
, and as of 2018, 98% of monitored farms were free of child labor
7
. The ALP program includes training, monitoring, and third-party assessments
8
, with field technicians visiting 300,000 farms
9
. PMI ensures contracted farmers earn a living income, with 99% achieving this in 2024
10
, and also promotes living wages with suppliers
11
.
Honest & Fair Business
-30
Philip Morris International Inc. has faced significant ethical controversies, including a finding of liability for RICO violations related to a conspiracy to deceive the public about smoking risks
1
. The company also faced allegations from health organizations in 2024 for making misleading claims about its heated tobacco product, IQOS
2
, and was reported in 2024 to have funded tobacco research at universities with undisclosed payments, raising concerns about research integrity
3
. Regarding anti-corruption, PMI maintains a strict anti-bribery policy prohibiting all forms of bribery and facilitation payments
4
. Its Code of Conduct sets clear standards, and in 2024, approximately 40,000 employees received training in key compliance risk areas
5
. Also in 2024, 98% of targeted employees, including all senior leaders, completed annual Code of Conduct certification
6
. The company publicly discloses political contributions and adheres to lobbying regulations
7
. For whistleblowing, PMI operates a confidential Compliance Help Line
8
. In 2024, 1,444 reports were received, with 37% leading to investigations
9
. Of these investigations, 53% resulted in substantiated violations, primarily related to workplace integrity and theft
10
, with corrective measures including employment termination in 43% of cases
11
.
Kind to Animals
30
Philip Morris International (PMI) demonstrates a significant commitment to animal-free innovation, with 99.5% of its 2024 R&D budget, totaling $759 million, dedicated to smoke-free products, which includes the development of animal-free technologies.
1
The company actively employs non-animal testing methods, such as multiple organ-on-a-chip technologies, in vitro studies, and computational methods, integrating them into product assessment and replacing animal testing where possible.
2
PMI also engages in extensive collaborations, including partnering with TissUse GmbH to develop an integrated human aerosol test platform, participating in workshops with the Center for Alternatives to Animal Testing Europe, and contributing to joint initiatives like the IQ Consortium.
3
In 2019, PMI, alongside the PETA International Science Consortium and other tobacco companies, donated $110,000 worth of equipment to the Institute for In Vitro Sciences to support non-animal testing methods, and received a PETA award for contributions to a public knowledge base aimed at phasing out animal testing.
4
Furthermore, PMI's animal testing policy restricts animal studies to situations where no alternatives are available and where legally mandated, applying the 3Rs (Replace, Reduce, Refine) and utilizing an Animal Welfare Committee to review all proposed studies.
5
No War, No Weapons
-20
Philip Morris International (PMI) does not manufacture weapons or engage in direct military contracts, with its product line centered on consumer goods without military applications. However, PMI continues to operate in Russia, a sanctioned state, generating approximately $600 million in taxes for the Russian government in 2022
1
and accounting for 9% of its cigarette and heated tobacco sales in 2023
2
. PMI also holds a 23% stake in a Russian tobacco distribution company controlled by Igor Kesaev, an associate whose separate holdings in weapons production funnel revenue to Russia, creating indirect ties to the defense sector.
3
PMI's investment in peacebuilding and disarmament initiatives is limited, with approximately $13 million contributed to U.S. veterans' support and Ukrainian humanitarian aid
4
,
5
, representing about 0.04% of its 2021 revenue. For conflict minerals, 100% of identified smelters or refiners were confirmed RMAP-Compliant or RMAP-Active in 2024
6
, and PMI requires suppliers to source from validated "conflict-free" programs, demonstrating adherence to high humanitarian procurement standards.
7
PMI conducts human rights due diligence for conflict minerals twice a year with all direct suppliers
8
and performs annual reviews of direct suppliers for conflict-related risks, with the possibility of terminating relationships for non-compliance.
9
As a tobacco company, PMI has no defense business to oversee, no defense assets to divest, and no dual-use technology or AI with military applications.
Planet-Friendly Business
-20
Philip Morris International's 2040 net-zero greenhouse gas emissions target has been validated by the Science Based Targets initiative (SBTi).
1
This target includes a 50% reduction in absolute Scope 1 and 2 emissions by 2030 from a 2019 baseline
2
, and a 27.5% reduction in absolute Scope 3 emissions within the same timeframe.
3
Respect for Cultures & Communities
-10
The company has been involved in multiple cultural appropriation incidents, including the marketing of 'L&M Māori Mix' cigarettes in 2005
1
, and an attempt to use a Māori welcoming ceremony and performance in a 2018 corporate event, which was condemned by a Māori public health organization
2
. Additionally, the company has utilized American Indian cultural symbols and imagery in marketing since at least the 1930s
3
, misrepresenting sacred traditions
4
. Following the 'L&M Māori Mix' incident, the CEO issued an apology to the Māori people in 2006
5
. In 2020, the company reported 600 partners across 78 countries for social contributions focused on local needs, including cultural preservation, such as supporting the Alangan Mangyan community in a forest restoration project in the Philippines
6
. The company also implemented a 'Step Change' approach in Nayarit, Mexico, to improve conditions for indigenous migrant workers, increasing wages by 25%
7
and funding childcare centers
8
, benefiting thousands from indigenous groups
9
.
Safe & Smart Tech
-10
Philip Morris International (PMI) reported experiencing immaterial third-party information security breaches over the past three years, none of which were material to its business or financial condition
1
. The company has established a Global Privacy Program (GPP) to set data privacy standards across its markets
2
, governing the collection, processing, and sharing of personal data
3
, supported by significant investments in administrative, technical, and physical safeguards
4
. PMI provides regular training in data protection and information security to employees, supplemented by awareness campaigns and phishing simulations
5
. The company's Head of AI Security emphasizes capturing requirements for securing AI capabilities
6
, protecting privacy
7
, and understanding legal implications
8
, advocating for a top-down approach to AI security
9
.
Zero Waste & Sustainable Products
0
PMI's manufacturing operations achieved a 99.9% landfill diversion rate in 2024.
1
The company designed 99.4% of its packaging formats for recyclability in 2024.
2
Circular design principles are embedded in most product lines, specifically for all smoke-free electronic devices. Waste reduction initiatives include anti-littering programs for cigarette butts covering 92% of sales volumes in 2024, and 867,000 smoke-free electronic devices refreshed or repaired since 2021.
3
Portable ashtrays have changed littering behavior in Lithuania, and collaborations help remove cigarette butts.
4
PMI has multiple waste reduction targets for 2025, including a 50% reduction in plastic litter, 100% of packaging designed for recyclability, and 100% of new smoke-free electronic devices having eco-design certification.
5
Customer education programs, such as urging disposable e-vapor product users to return them for recycling and anti-littering programs, have shown measurable impact on behavior.