Key findings

1. The tobacco industry has not phased out High-Risk Products (HRPs) or transitioned smokers to Reduced-Risk Products (RRPs) quickly enough to achieve the goal of ending smoking in this generation. Performance differs by Index Company, and inconsistent progress was made over the 2019-2021 review period.

2. Index Companies continued to focus most of their RRP efforts on HMICs.

3. The majority of Index Companies have not made any commitment to tobacco harm reduction.

4. Several Index Companies regressed or made no progress over the 2019-2021 review period.

5. Over the 2019-2021 review period, a few Index Companies indicated a potential future shift in their position on RRPs. Time will tell if transformation comes to fruition.

6. There is currently limited transparency in terms of Marketing policies and Lobbying practices.

Key findings by Category

Capital Allocation & Expenditure

Lobbying & Advocacy

Marketing Policy & Compliance

Product Offer

Product Sales

Strategy & Management

Lobbying & Advocacy

Fewer than half of Index Companies have a policy on lobbying

Lobbying & Advocacy

Lack of transparency in terms of disclosure of lobbying activities in all jurisdictions

Lobbying & Advocacy

Six Index Companies publicly disclose policy positions on tobacco harm reduction

Strategy & Management

Commitments regarding tobacco harm reduction continue to be vague or non-existent

Strategy & Management

Three Index Companies set time-bound and numeric targets relating to tobacco harm reduction goals and objectives

Strategy & Management

Fewer than half of Index Companies provide adequate details of stakeholder engagement as it relates to tobacco harm reduction

Product Sales

Cigarettes remain the dominant product category among the 15 Index Companies

Product Sales

Value and volume sales of RRPs among the 15 Index Companies are increasing but remain low, especially in LMICs

Product Sales

RRP legality of commercialization influences companies’ opportunities for tobacco harm reduction

Capital Allocation & Expenditure

The share of total R&D expenditure on RRPs is growing among the leading Index Companies

Capital Allocation & Expenditure

Several Index Companies used acquisitions to support their RRP portfolios (especially non-tobacco nicotine pouches) in 2019-2021

Capital Allocation & Expenditure

Since the 2020 Index, three Index Companies made potentially nascent progress in Capital Allocation & Expenditure on RRPs

Product Offer

Index Companies offered a growing variety of RRPs, which may increase the potential for shifting demand away from HRPs

Product Offer

RRP offers continue to be much greater in HMICs than in LMICs

Product Offer

Pricing of RRPs does not always provide smokers with an economic incentive to transition away from HRPs

Marketing Policy & Compliance

Fewer than half of Index Companies establish a specific Marketing Policy with specific practical guidelines

Marketing Policy & Compliance

Seven Companies disclose a Youth Access Prevention Policy

Marketing Policy & Compliance

Lack of details in terms of reporting Marketing Policy violations