Can P&G Hit Net Zero Across Its Manufacturing Supply Chain?

Procter & Gamble (P&G) is aiming to achieve net zero greenhouse gas emissions by 2040.

The consumer goods company hopes to be fully emissions-free across its supply chain and end-to-end raw material to retailer operations.

Through collaboration with suppliers and more sustainable products, P&G is not only changing its environmental impact, but that of its consumers.

A driving force for sustainability

P&G stands as a pivotal figure in sustainable manufacturing. As part of its dedication to being a positive force, the company continuously collaborates with communities to reinforce sustainable practices in its manufacturing processes.

With a clear roadmap, P&G strategically manages each operational segment's emissions footprint, targeting improvements to enhance environmental efficiency.

It 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 keep these goals achievable, P&G employs science-based 2030 targets to ensure alignment with its overarching 2040 vision.

The 2021 Climate Transition Action Plan delves into strategies for greener packaging, transportation, and product lifecycle management.

P&G's Chief Sustainability Officer, Virginie Helias, 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."

As part of its climate action, P&G is partnering with private, nonprofit and public sectors to help with large-scale energy and transportation infrastructure changes.

This will build new supply chains for P&G, allowing it to integrate sustainability from the roots of the partnership, rather than attempt to add it as an afterthought.

Exploring P&G's sustainability commitments

Initially focusing on manufacturing facilities, P&G's commitment to sustainability now spans its entire supply chain, from raw material sourcing to finished product distribution.

By 2030, the company aims to achieve several critical milestones:

• Reducing Scope 1 and 2 emissions by 65% from its 2010 baseline
• Ensuring all consumer packaging is recyclable or reusable, enhancing product sustainability
• Cutting petroleum plastic usage by 50% per production unit, based on 2017 levels
• Utilising 100% renewable electricity, with 99% sourced globally from renewable origins

In 2023, P&G developed the Climate Unlock Programme to assist suppliers in tracking and advancing towards net zero.

This initiative not only delivers educational resources but also includes the Manufacturing Decarbonisation programme from Manufacture 2030 for strategic planning support.

Tools and collaboration

P&G prioritises strategic partnerships and technological advancements to reduce emissions.

The company is committed to investing in innovative solutions, emphasising 'transformative collaboration'.

Luc Reynaert, Chief Product Supply Officer at P&G states: "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 concludes with: "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." 

Thanks to P&G's sustainable implementation throughout its products, its consumers are now reducing their own environmental impact just by using these products.

Tide and Ariel, for example, are promoting cold water washing for clothes, which can reduce carbon emissions significantly.

Procter & Gamble is making distinct, well-planned changes which can be seen throughout its supply chains.