Procter & Gamble: Making Supply Chains More Sustainable

Procter & Gamble (P&G) is committed to achieving net zero greenhouse gas emissions by 2040, aiming for a fully emission-free supply chain from raw material sourcing to retailer operations.

Collaborating with suppliers and creating more sustainable products, P&G is influencing change not only within its organisation but also among its consumers.

A force for sustainability

Renowned for its dedication to sustainability, P&G consistently partners with communities to implement eco-friendly practices.

Its detailed climate initiatives aim for net zero emissions by 2040. The company's structured sustainability plans highlight each operation's contribution to emissions and potential areas for environmental improvement.

As P&G states: "Our focus is on significantly reducing absolute GHG emissions in our operations and supply chain.

"Then, we aim to balance remaining emissions by 2040 by advancing natural or technical solutions that remove an equivalent amount of greenhouse gas emissions from the atmosphere."

To remain on track for these long-term goals, P&G has established science-based targets for 2030, focusing on sustainable practices concerning packaging, transport and product life cycle.

Virginie Helias, P&G's Chief Sustainability Officer, says: "We are committed to improving people’s lives with innovation that delivers irresistible performance and is more sustainable.

"We are working across Climate, Waste, Water and Nature to reduce our own footprint, enable people to reduce their footprint when using our products and develop solutions that will help our industry or other sectors reduce their footprint."

The company's climate action includes partnerships across private, non-profit and public sectors, facilitating significant changes in energy and transportation infrastructure.

This proactive approach allows P&G to build new, sustainable supply chains from the ground up.

The aims

P&G's journey towards climate awareness began with its manufacturing facilities but has since expanded to include sourcing materials and product transportation. By 2030, P&G aims to:

• reduce Scope 1 and 2 emissions by 65% from 2010 levels
• make all packaging recyclable or reusable, diminishing products' environmental impacts
• reduce petroleum plastic usage by 50% per production unit, based on a 2017 baseline
• achieve 100% renewable electricity, sourcing 99% globally from renewables

To assist suppliers in tracking climate progress and transitioning to net zero, P&G introduced its Climate Unlock Programme in 2023.

This programme provides educational resources and planning support, drawing from the Manufacturing Decarbonisation programme by Manufacture 2030.

Tools and collaboration

P&G is actively fostering partnerships and advancing technology to minimise emissions, investing in solutions and innovations aimed at "transformative collaboration."

Luc Reynaert, Chief Product Supply Officer at P&G, adds: "The essence of our Supply 3.0 strategy is how we bring together automation, data, sustainability and people to meet product demand with precision that drives long-term value and business impact."

P&G emphasises: "Addressing climate change is complex and requires innovation and collaboration. We’re delivering impact at three levels: reducing our own impact, enabling consumers to reduce their impact and helping industry reduce its environmental impact through scalable solutions."

The company's sustainable products are helping consumers minimise their environmental impact, too.

For instance, Tide and Ariel promote cold water washing, leading to substantial carbon emission reductions. Through its deliberate and strategic modifications across supply chains, Procter & Gamble demonstrates how the procurement sector can embrace sustainability for a cleaner future.