P&G Accelerates Action Related to Climate Change

Procter & Gamble has announced a comprehensive plan to accelerate action related to climate change. P&G has also set a new ambition to achieve net zero greenhouse gas (GHG) emissions across its operations and supply chain, from raw material to retailer, by 2040 as well as interim 2030 goals to make meaningful progress this decade.

“We are fully committed to use P&G’s innovation and ingenuity to unlock new solutions to address climate change,” said David S. Taylor, Chairman, P&G President and Chief Executive Officer.

The company’s science-based plan to net zero will prioritize cutting most of the company’s emissions across its operations and supply chain, from raw material to retailer. For residual emissions in these categories that cannot be eliminated, P&G will use natural or technical solutions that remove and store carbon.

P&G’s 2030 goals to pace its progress toward net zero were submitted to The Science Based Targets initiative (SBTi):

• Reducing emissions across its operations by 50%
• Reducing emissions across its supply chain by 40%

The company has joined the UN’s Race to Zero and the Business Ambition for 1.5°C campaigns and is also sharing its new Climate Transition Action Plan, which outlines a comprehensive approach to accelerating climate action and the key challenges ahead.

“While no one has all of the answers on how to bring a net zero future into focus, we will not let uncertainty hold us back,” said Virginie Helias, P&G chief sustainability officer. “To achieve these goals, we will leverage existing solutions and seek transformative new ones that are not available in the marketplace today. This will require partnership across the private, nonprofit, and public sectors and involve every aspect of our business, from the very beginning of our products’ lifecycle to the very end.”

ACTING WITH URGENCY TO REDUCE EMISSIONS

P&G’s top priority is to significantly reduce GHG emissions as quickly as possible with solutions that exist today.

• Reducing emissions across its operations. From 2010 to 2020 P&G has reduced absolute emissions across its global operations 52% through energy efficiency and renewable electricity. As it continues to reduce emissions, it is also advancing natural climate solutions to balance any remaining emissions from its operations that cannot be eliminated by 2030. These include new projects that help protect and restore forests and other ecosystems.
• Accelerating renewable electricity. P&G is nearing its 2030 goal of purchasing 100% renewable electricity by already purchasing 97% globally. In 2021, the United States Environmental Protection Agency recognized P&G as #5 on its National Top 100 list of green power users and #2 on its Top 30 list for on-site renewable power generation nationwide.
• Decarbonizing its supply chain and logistics. P&G’s supply chain and logistics emissions from raw material to retailer are about 10 times that of its operations and it has set a goal to reduce emissions 40% by 2030. It is also planning to increase transportation efficiency of outbound finished products 50% by 2030. P&G established a new Product Supply Innovation Center (PSIC) in Kronberg, Germany as a hub for a network of local suppliers, tech companies, and top universities, developing solutions that are global and scalable to help decarbonize its supply chain.

TACKLING CHALLENGES BY INVENTING NEW SOLUTIONS

There are some operational emissions that cannot be eliminated yet, but P&G’s teams are working hard to develop the next generation of low-carbon technologies and materials. Its efforts in this area include:

• Leveraging renewable thermal energy. P&G uses geothermal, solar, and renewable steam at some manufacturing sites, but continuing to reduce emissions will require more innovation. The company has partnered with the World Wildlife Fund, manufacturers, and local governments to create the Renewable Thermal Collaborative to identify and scale renewable, cost-competitive thermal energy solutions.
• Advancing low-carbon technologies, materials and packaging. To unlock new ways to decarbonize its supply chain, P&G is partnering to advance innovation in materials derived from renewable, bio-based, or recycled carbon.
• Exploring Ingredients made from captured CO2. P&G’s Tide brand is working with Twelve, a Silicon Valley start-up, to explore their carbon capture technology to incorporate CO2 from emissions into ingredients that could be used across Tide.

CREATING A DECARBONIZED FUTURE THROUGH TRANSFORMATIVE COLLABORATION

P&G is going beyond its net zero ambition and doing more to make a collective impact – partnering with consumers to reduce GHG emissions from the use phase of products, creating alliances for carbon-efficient homes, and advocating for policy solutions to decarbonize energy infrastructure. Its efforts here include:

• Making sustainability effortless at home. P&G and its brands will continue to provide consumers with tools and information on how small actions at home can make a world of difference for the planet.
• Reducing 15 million tons of carbon through cold water washing, and accelerating impact with an additional 30 million tons by 2030. P&G has leveraged innovation and sustained consumer education to help reduce the largest portion of its carbon footprint – the energy needed to heat water during product use. P&G brands Tide and Ariel have helped consumers increase their use of low-energy laundry cycles to avoid roughly 15 million metric tons of carbon dioxide. The brands continue to drive greater use of cold water washing through new education campaigns to help avoid an additional 30 million tons of carbon emissions by 2030.
• Creating the home of the future. P&G is advancing solutions to make everyday living more sustainable, with industry partners via the 50L Home Coalition. By helping people reduce hot water use without trade-offs, the Coalition is creating more efficient homes that can use 10 times less water than most use today.

“Caring for our consumers and our planet is core to all of us at P&G,” Taylor added. “There is no action too small, and no vision too big, as we all work together to preserve our shared home for generations to come.”