Climate Action: Our Path to a Greener World

In September 2021, P&G 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. P&G also shared a Climate Transition Action Plan which outlines a comprehensive approach to accelerating climate action and the key challenges ahead. In addition to the details of P&G’s net zero ambition, the Climate Transition Action Plan covers the entire lifecycle emissions of our products and packaging, across supply chain, operations, consumer use of our products, and product end of life. P&G also issued a TCFD aligned report and responded to CDP’s Climate Survey. Those plans and reports, GHG Emissions Data, and progress vs. goals can be accessed via the following links:


Scope 1 & 2 GHG Emissions — Exceeding Commitments and Accelerating Progress

Recognizing the urgent need to address climate change, in September 2021 P&G announced an ambition to achieve net zero emissions across our supply chain and operations. To help pace our progress on reducing Scope 1 & 2 GHG emissions, we have established the following 2030 goal:

Reducing emissions across our global operations by 50% vs. 2010 baseline. From 2010 to 2022, we have reduced absolute Scope 1 & Scope 2 emissions across our global operations 57% through energy efficiency and renewal energy sourcing. As we continue to reduce emissions, we are also advancing natural climate solutions which will balance any residual emissions from our operations that cannot be eliminated by 2030.

Expanded use of renewable electricity helped enable our 57% reduction in our Scope 1 & 2 emissions. Even though we've exceeded our Ambition 2030 goal to reduce absolute emissions across our operations by 50% versus 2010, our work is by no means complete. While we are well on our way to utilizing 100% purchased renewable electricity, the next big challenge is reducing, and eventually eliminating, emissions from natural gas. There are significant hurdles that need to be overcome. With that in mind, we've partnered with 18 other manufacturers and local governments to create the Renewable Thermal Collaborative. This coalition is committed to scaling up renewable heating and cooling at their facilities in order to dramatically cut carbon emissions.

P&G publishes our Scope 1 & 2 emissions annually. The chart below summarizes emissions from FY 21/22:

Totals (absolute units x 1,000) 2022 Global Business Unit Detail 1 (absolute units x 1,000)
Energy and Greenhouse Gas (GHG) 2022 2021 2020 Baby,
Feminine and
Family Care
Beauty Fabric and
home care
Grooming Health Care Other
Energy Consumption (gigajoules) 62,340 63,077 62,816 41,248 3,751 10,894 2,534 2,220 2,550
Total GHG Emissions (metric tons)2 2,316 2,398 2,613 1,616 93 391 65 54 96
Scope 1 — Direct GHG Emissions (metric tons) 2,160 2,238 2,221 1,588 83 307 63 54 65
Scope 2 — Indirect GHG Emissions (metric tons)3 156 160 392 28 10 84 2 0 32
Biogenic GHG Emissions (metric tons) 53 50 50
1 Baby, Feminine and Family Care includes Baby Care, Feminine Care and Family Care. Beauty Care includes Hair Care and Skin & Personal Care. Fabric and Home Care includes Fabric Care, Home Care and Chemicals. Grooming includes Blades and Razors and Devices. Health Care includes Personal Health Care and Oral Care. Other includes major stand-alone offices/technical centers that support the business units and our largest distribution facilities. Numbers do not include production from contract manufacturing operations.
2 Total GHG emissions = Scope 1 + Scope 2. Scope 2 emissions calculated using a market-based method.
3 Market-based Scope 2 GHG emissions. Note: Location-based Scope 2 emissions 2022 were 2,323,446 metric tons.

Scope 3 GHG Emissions

FY 21/22 update
We update key categories of Scope 3 emissions on an annual basis, relying on estimates from LCA data as well as other available data sources. Prior updates have shown that ~ 98% of our Scope 3 emissions come from just 4 categories: Purchased goods & services, Upstream transportation & distribution, Use of sold products, and End of life treatment of sold products. As such, we plan to focus our annual updates on these key categories. We will also include an estimate for the category of Business Travel, which will represent emissions from business travel flights and be based on employee airline travel miles. We are including Business Travel as that is a category of interest to our own employees and our business travel partners can track employee airline travel miles and provide that data to us. We will periodically assess all Scope 3 categories to determine the relative contributions of the key categories that we report against and will report emissions on the 5 categories referenced above on an annual basis.

We are not reporting emissions from the category of Downstream Transportation and Distribution due to insufficient data to accurately estimate this category. This category includes GHG emissions from transportation and distribution after delivery to our customers and distributors. Our ability to track and measure this part of the distribution chain is very limited given the highly diverse distribution channels around the world. We will continue to monitor industry developments regarding downstream transportation and distribution and will periodically assess our ability to estimate this category of emissions.

For FY 21/22 we updated our methodology for estimating End of Life Treatment of Sold Products to better align with the guidance in the WRI GHG protocol. More specifically, we aligned with the minimum boundary definition for End-of-Life (EoL) which states that companies should only report Scope 1& 2 emissions of waste managers that occur in the disposal of their products. As a result of this change in methodology, our reported emissions for FY 21/22 decreased to 7,100,000 metric tons.

Scope 3 Categories Estimated FY 21/22 Metric Tons CO2eq
Purchased goods and services1 16,700,000
Upstream transportation & distribution2 3,900,000
Use of Sold Products3 163,100,000
End of Life Treatment of Sold Products3 7,100,000
Business Travel 4 40,000
Capital Goods Prior estimates have indicated these categories collectively represent ~ 2% of our total Scope 3 emissions. We will periodically update our assessment of the contribution of these categories to our Scope 3 emissions
Fuel & Energy Related Activities
Waste Generated in Operations
Employee Commuting
Upstream Leased Assets
Processing of Sold Product
Downstream Leased Assets
Franchises
Investments
Downstream Transportation & Distribution Insufficient data available
1. Estimate of goods and services related to supply of raw and packaging materials, derived from LCA data; excludes other types of purchased goods and services.
2. Includes estimate of transportation of inbound raw materials and outbound finished product
3. Estimate, derived from LCA data
4. Estimate of flight emissions based on employee airline travel miles; excluding missing airline travel miles from Pakistan, Egypt, Azerbaijan and a small portion of India’s domestic volume.

Progress vs. Goals

Goal Progress through June 30, 2022
Reduce Scope 1 & 2 GHG emissions by 50% by 2030 vs. 2010 baseline* 57% reduction – Achieved
Purchase 100% renewable electricity globally by 2030 99% renewable electricity globally - please click here to learn more about our efforts on renewable electricity
P&G Manufacturing Facilities will be Carbon Neutral for the Decade (2020 – 2030) We continue to drive progress towards our emission reductions in operations exceeding our Scope 1 & 2 GHG emissions target and accelerating our purchase of renewable electricity. To further reduce Scope 1 & 2 GHG, we are developing solutions at pilot manufacturing sites that we can scale globally towards our Net Zero 2040 ambition.
Reduce Global Upstream Finished Product Freight emissions intensity by 50% (vs. 2020 baseline)* 2.9% increase
Reduce supply chain emissions by 40% per unit of production by 2030 (vs. 2020 baseline)* By taking a closer look at our Scope 3 emissions, we now know that ~10% of our ingredients (which equates to ~500 individual ingredients) account for ~90% of our supply chain emissions, which allows us to focus where we can drive the most change and advance better solutions. Further progress on this new goal will be reported in 2023.

*Validated by the Science Based Target Initiative

Climate Policy Advocacy

All policy advocacy is coordinated through our Global Government Relations organization ensuring consistency and transparency in all policy related activities. Internally, government relations does this by being an active member of our cross functional P&G Corporate Climate Council which plays a key role in our Climate Governance Process; knowing the details of our climate policies and positions, and consistently representing them with all external stakeholders they interact with, including policy makers and trade associations. All policy advocacy work is done through our Global Government Relations organization ensuring a common approach to climate change engagement activities across business divisions and geographies.

Consistent with our ambition to achieve net zero GHG emissions, we seek to align our policy positions with a 1.5* Scenario. This does not mean we will support all climate related proposals that are advanced globally, but rather we assess each on a case by case basis to ensure the underlying policy mechanisms and proposals are relevant, robust, viable, holistic, and would contribute meaningful progress to reducing GHG emissions, For example, we support the advocacy efforts of the Climate Leadership Council which advocates for a comprehensive national policy on carbon emissions in the United States.

The trade associations of which we are members are aware of our policy positions. In all cases, any P&G position on a matter of public policy is the prevailing company position, irrespective of any trade association position. We are consistent in the positions we share with external stakeholders as well as in our trade association engagement – consistent with the core values of integrity and trust which are an integral part of our Company’s Purpose, Values and Principles (PVPs). If an association’s policy position is different than ours, we will engage the association in dialogue to discuss relevant discrepancies and encourage changes which would better align with our views.