Colgate-Palmolive Reshapes Manufacturing With ESG Focus

Colgate-Palmolive has outlined a clear approach to sustainability, social impact and environmental targets across its 2024 Sustainability and Social Impact Report. 

With a footprint in over 70 countries and a portfolio of mass-market goods, the company places its manufacturing responsibilities at the centre of its climate and ESG strategies. 

Its programme is structured around three core pillars: supporting communities, reaching homes globally and reducing environmental harm.

Strategy embedded across manufacturing and supply chain operations

Colgate-Palmolive manages ESG risks through its Enterprise Risk Management framework. 

This process identifies climate transition and plastic transition as critical issues within its global operations. However, it notes that these risks also provide opportunities to create new industrial solutions, enhance reputation and reinforce compliance with responsible business expectations.

The company has established a cross-functional ESG Reporting Task Force. This internal group ensures Colgate’s data and policies align with current and incoming ESG disclosure requirements. 

The structure supports real-time alignment between investor, customer and regulatory expectations and the company’s operational priorities.

Materiality assessments shape Colgate’s approach, ensuring its business goals reflect stakeholder input. 

Across operations, sustainability is embedded in risk management protocols, procurement procedures and product innovation cycles. 

Metrics are tracked using widely accepted sustainability frameworks, including progress against 14 of the United Nations’ 17 Sustainable Development Goals (SDGs).

Ann Tracy, Colgate-Palmolive’s Chief Sustainability Officer, says: “Our sustainability efforts also help to strengthen our business. We believe that some consumers favour brands from companies that act responsibly and will recognise our leadership in this space and choose our brands. 

“We are proud of our progress so far, but there is more work to be done. We strive to be better for the people who use our products and drive value throughout our business. Getting this principle right will result in reducing our impact on the planet.”

Materials, emissions and process targets

The report highlights targeted achievements across Colgate’s packaging, energy and resource programmes. 

One of the centrepieces of its industrial sustainability approach is packaging. The company manufactures a recyclable toothpaste tube, now used across more than 70 global markets.

In North America, 95% of tubes are converted to recyclable formats and, by the end of 2024, 93% of Colgate’s packaging was recyclable, reusable or compostable.

Material sourcing has also evolved, with virgin plastic reduced by 25% from a 2019 baseline. At the same time, 21% of packaging content in 2024 was made from post-consumer recycled materials. 

These actions align with 2025 targets set through the Ellen MacArthur Foundation’s Global Plastics Commitment, which includes:

• A one-third reduction in virgin plastic usage
  
  
• 25% post-consumer recycled plastic content in packaging
  
  
• Elimination of problematic or unnecessary packaging

The company continues to secure renewable energy agreements, aligning with a net zero carbon emissions goal set for 2040. 

It is also addressing the physical and transitional climate risks across its factories, warehouses and distribution systems. Strategic alliances with the U.S. Plastics Pact, The Recycling Partnership and startups have also supported operational improvements across waste and emissions performance.

This work supports Colgate’s broader framework which includes efficient design, responsible sourcing and promoting circular manufacturing systems. The business continues to encourage internal and external behavioural change to reduce its environmental footprint across product lifecycles.

2030 and 2040 environmental goals

Colgate has confirmed two major climate targets across the next 15 years.

By 2030:

• Move from annually sourcing 35% renewable electricity in 2020 to 100%
   
• Cut Scope 3 greenhouse gas (GHG) emissions from Purchased Goods and Services by 42% against 2020 levels
   
• Reduce Scope 1 and 2 GHG emissions in operations by 42% from 2020

By 2040:

• Reach net zero carbon emissions across its entire value chain, excluding optional Scope 3 categories per the Science Based Targets initiative (SBTi) Net Zero Standard
   
• Cut Scope 1, 2 and 3 emissions by 90% from a 2020 baseline, excluding Scope 3 categories 9, 11 and 12 and optional emissions per SBTi Net Zero Standard
   

Ann wrote on LinkedIn: “At Colgate-Palmolive, we're committed to reimagining a healthier future for all people, their pets and our planet. We are driving social impact, helping millions of homes and preserving our environment.”

Supply chain systems and external partnerships

Colgate targets sustainable sourcing through its raw material suppliers, with a particular focus on palm oil and soy. 

The company uses certified material streams, satellite-based geospatial monitoring and supplier engagement programmes to ensure ethical, transparent sourcing. The aim is to build a conversion- and deforestation-free supply chain while improving resilience across its sourcing network.

Water stewardship is another area of focus, supported through Colgate’s involvement in the CDP Water Supply Chain Program and localised outreach such as webinars in water-stressed areas. 

To this end, the company promotes best practice in water risk management among its suppliers, ensuring downstream accountability.

Human rights initiatives run alongside environmental goals. Colgate partners with the Fair Labor Association to enhance labour standards and enforce responsible recruitment practices in its Malaysian palm oil supply. 

It is also a member of industry alliances like the Forest Positive Coalition and prioritises recycled content in pulp and paper purchasing to lessen environmental impact.

These actions embed ESG into the company's procurement processes and manufacturing footprint, providing both risk mitigation and improved economic resilience for supplier communities.

Colgate’s approach to partnership reflects its strategy for external engagement. The company works with academic and public sector institutions on long-term sustainability education and training, including through its leadership development work with Stanford University Graduate School of Business and health and safety training with the National Safety Council.

It supports inclusion and well-being initiatives through long-term collaborations such as the ADA Foundation, Save the Children, the FDI World Dental Federation and The Seeing Eye. In emerging markets, the "Keep India Smiling" programme offers scholarships, while in Brazil the company works on employment opportunities.

Environmental partnerships also support global infrastructure, including The Recycling Partnership, the Closed Loop Infrastructure Fund, Water For People and Water.Org. These projects improve recycling capabilities, water access and ecosystem conservation.