NY-PHILIP-MORRIS-INTL

As world leaders gather at the UN Biodiversity Conference (COP15), Philip Morris International (PMI) (NYSE: PM) is proud to announce ambitions that align with the Post-2020 Biodiversity Framework.

The company’s new ambitions on biodiversity and water strengthen PMI’s actions to address the environmental impacts of its business operations, which it currently manages through two main strategies: Tackle Climate Change and Preserve Nature. PMI intentionally structured the new ambitions to maximize their impact around a 10-year span, from 2023 to 2033.

Detailing its strategy to Tackle Climate Change, PMI’s 2021 Low-Carbon Transition Plan brought forward the company’s ambitions to achieve carbon neutrality in its direct operations (scopes 1+2) by 2025, and to achieve carbon neutrality across its entire value chain (scopes 1+2+3) by 2040. In addition, it introduced a new goal for the company’s critical suppliers to adopt science-based targets (SBTs) by 2025, in line with the SBTs to which PMI has already committed.

To Preserve Nature, the company published its 2020 Zero Deforestation Manifesto, achieved zero gross deforestation of primary and protected forests, and is working towards achieving zero net deforestation of managed natural forests and having a net positive impact on forests associated with the tobacco supply chain by 2025. In its paper and pulp-based materials supply chain, the company targets zero gross deforestation of primary and protected forests by 2025, as well as zero net deforestation of managed natural forests and no conversion of natural ecosystems by 2030.

Perfect Forest™
PMI is pleased to be at the forefront of promoting the sustainable management of forests and is encouraged that respected stakeholders recognize the importance of what the company is doing. Perfect Forest™ is the name of PMI’s operating nature-based solutions (NbS) projects to preserve forest resources. PMI believes that a constant effort at the landscape level is key in transforming the relationship the company has with forest ecosystems and local stakeholders, where “perfection” is the mutual contribution between the protection of nature and the resulting ecosystem services generated by it. In particular, Perfect Forest™ generates carbon sequestration, enhancing the potential of forestry systems to deliver sustainable forest products and social benefits. It also creates the conditions for protecting water resources, balancing soil elements, and preserving natural habitats—key to supporting biodiversity.

PMI’s New Ambitions to Preserve Nature
Biodiversity

• Protect nature by achieving no net loss on ecosystems connected to PMI’s value chain by 2033
• Contribute towards a net positive impact on nature by 2050

Water stewardship

• Scale solutions towards a positive impact on water resources, measured as volume of water optimized and restored, by 2033
• Contribute towards a positive impact on water resources by 2050

“As our new ambitions demonstrate, PMI understands that decarbonization, biodiversity protection, forestry management, and water stewardship are deeply connected. We aspire to lead by example in the responsible and sustainable management of natural resources that can allow the promotion and protection of natural ecosystems,” said Jennifer Motles, Chief Sustainability Officer. “It is important to recognize the linkages between biodiversity loss and vulnerability to climate change, and how these could exacerbate poverty and inequality. Adaptation strategies that promote the protection, preservation, and efficient use of natural resources help us build preparedness to manage potential environmental impacts that could affect our business.”

PMI’s strategies to Tackle Climate Change and Preserve Nature have been recognized by CDP, a not-for-profit charity that runs a global disclosure system for investors, companies, cities, and regions to manage their environmental impacts. As of Dec. 13, 2022, PMI has been honored with the Triple A score for its efforts across climate, forests, and water stewardship. The ranking places PMI among one in 1,000 companies worldwide to achieve the prestigious Triple A score and among the world's most pioneering companies leading on environmental transparency and performance.

“Natural capital is a wealth we all share and depend on. It is essential that we do our part to protect, sustainably manage, and nurture it—and we’re proud that CDP has once again recognized PMI’s efforts to do exactly that,” explained Massimo Andolina, SVP, Operations. “Further, preserving natural ecosystems by properly managing land and water resources helps increase the resilience of our production systems and reduce operational risks.”

Through its Integrated Report and CDP submissions, PMI seeks to align with and is proud to support the Task Force on Climate-Related Financial Disclosures (TCFD). Also reflected in the company’s Triple A rating from CDP are PMI’s contributions to the development of the parallel Task Force on Nature-Related Financial Disclosures (TNFD). TNFD centers on the importance of protecting ecosystems and promoting biodiversity. It states that its mission is, in part, “to develop and deliver a risk management and disclosure framework for organizations to report and act on evolving nature-related risks.”

Visit pmi.com/sustainability for more information and read PMI’s dedicated disclosure focused on Preserve Nature, published today. To learn more about PMI’s overall approach to sustainability, please refer to its latest Integrated Report 2021.

Philip Morris International: Delivering a Smoke-Free Future
Philip Morris International (PMI) is a leading international tobacco company working to deliver 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, vapor and oral nicotine products, which are sold in markets outside the U.S. Since 2008, PMI has invested more than USD 9 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. The U.S. Food and Drug Administration (FDA) has authorized the marketing of versions of PMI’s IQOS Platform 1 devices and consumables as a Modified Risk Tobacco Products (MRTPs), finding that an exposure modification orders for these products are appropriate to promote the public health. As of September 30, 2022, excluding Russia and Ukraine, PMI's smoke-free products are available for sale in 70 markets, and PMI estimates that approximately 13.5 million adults around the world had already switched to IQOS and stopped smoking. With a strong foundation and significant expertise in life sciences, in February 2021, PMI announced its ambition to expand into wellness and healthcare areas and deliver innovative products and solutions that aim to address unmet consumer and patient needs. For more information, please visit www.pmi.com and www.pmiscience.com.

Forward-Looking and Cautionary Statements
This press release contains projections of future results and goals and other forward-looking statements, including statements regarding operational plans and strategies. 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 in certain markets or countries; 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; the impact and consequences of Russia's invasion of Ukraine; changes in adult smoker behavior; the impact of COVID-19 on PMI's business; 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, including women or diverse candidates. Future results are also subject to the lower predictability of our reduced-risk product category's performance.

In addition, important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties related to: the agreement with Altria and the benefits of the transaction; the possibility that expected benefits related to recent or pending acquisitions, including the transaction with Swedish Match, may not materialize as expected; the proposed transaction with Swedish Match not being timely completed; Swedish Match’s business experiencing disruptions due to transaction-related uncertainty or other factors making it more difficult to maintain relationships with employees, customers, licensees, other business partners or governmental entities; difficulty retaining key Swedish Match employees; the outcome of any legal proceedings related to the proposed transaction with Swedish Match; and the parties being unable to successfully implement integration strategies or to achieve expected synergies and operating efficiencies within the expected time-frames or at all.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI's Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2021 and the Form 10-Q for the quarter ended September 30, 2022. 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.

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