Procter & Gamble
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Renewable Energy Share:>99%
ESG Focus Areas
- Environmental Sustainability
- Governance
- Equality & Inclusion
Environmental Achievements
- Reduced Scope 1 & 2 GHG emissions by 58% versus 2010 baseline (2023)
- Achieved >99% renewable electricity globally (2023)
- Over 78% recyclable or reusable packaging designs (2023)
- Reduced virgin plastic by 13% per unit of production versus 2017 baseline (2023)
- Increased water efficiency at P&G facilities by 24% per unit of production versus 2010 baseline (2023)
- Recycled & reused 3.47 billion liters of water used in operations (2023)
Social Achievements
- Developing brand/product propositions uniquely attractive to diverse consumers
- Building media skills to deliver superior brand communication to diverse & GenZ consumers
- 100% of wood pulp used in Family Care brands certified by globally recognized system (2023)
- 97% recycled fiber or third-party certified virgin content in paper packaging (2023)
Governance Achievements
- 13 of 14 Directors are Independent
- Strong Lead Independent Director role
- 4 fully independent Board Committees
- Rigorous Director selection process targeted to Company priorities
- Declassified Board with all Directors annually elected
Climate Goals & Targets
Long-term Goals:
- Net Zero emissions by 2040 across operations and supply chain
Medium-term Goals:
- Reduce Scope 1 & 2 GHG emissions by 65% versus 2010 baseline (2030)
- Reduce global upstream finished product freight emissions intensity by 50% versus 2020 baseline (2030)
- Reduce global supply chain emissions by 40% per unit of production versus 2020 baseline (2030)
- 100% recyclable or reusable packaging designs (2030)
- 50% reduction in virgin plastic per unit of production versus 2017 baseline (2030)
- Increase water efficiency at P&G facilities by 35% per unit of production versus 2010 baseline (2030)
- Recycle & reuse 5 billion liters of water used in our operations (2030)
- 100% FSC certified virgin fiber content (2030)
Short-term Goals:
- Reduce average wash temperature by 5°C (Ariel 2030 goal)
- Get 3 of 4 loads washed in cold water (Tide 2030 goal)
Environmental Challenges
- Managing disruptions in credit markets or to banking partners
- Maintaining key manufacturing and supply arrangements and managing business disruption due to various factors (natural disasters, war, terrorism, disease outbreaks)
- Managing cost fluctuations and pressures (commodities, raw materials, labor, transportation, energy, pension, healthcare)
- Competing with local and global competitors
- Managing uncertainties related to changing political and geopolitical conditions
- Managing current and expanding regulatory and legal requirements
- Achieving productivity improvements and cost savings and managing ongoing organizational changes
- Managing demand, supply, and operational challenges associated with disease outbreaks
- Managing uncertainties, sanctions, and economic effects from the war between Russia and Ukraine
- Achieving ambition of reducing greenhouse gas emissions and delivering progress towards environmental sustainability priorities
Mitigation Strategies
- Supply chain optimizations
- Cold washing campaigns (Ariel and Tide)
- Introducing new Tide Cold formula
- Collaborating with retailers, apparel brands, and machine manufacturers on cold-water wash mission
- Supply chain decarbonization initiatives
- Synchronizing & Tracking Progress
- Helping Suppliers Make Climate Progress
- Partnering on Decarbonizing Technologies
- Waterless Olay facial cleanser
- All Tier 3 sites have water action plans
Supply Chain Management
Responsible Procurement
- Commitment to No Deforestation, Explicit Supplier Expectations
- 3rd Party Certification
- Robust Compliance Monitoring
- Formal, Transparent Grievance Process
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: CDP
Certifications: FSC
Sustainable Products & Innovation
- New Tide Cold formula
- Waterless Olay facial cleanser