Environmental

Climate

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:

Climate Transition Action Plan TCFD CDP GHG Emissions Data Progress vs. Goals

scope 1 & 2 GHG Emissions

P&G publishes our Scope 1 & 2 emissions annually. The chart below summarizes emissions from FY 19/20:

	Totals (absolute units x 1,000)			2020 Global Business Unit Detail¹ (absolute units x 1,000)
Energy and Greenhouse Gas (GHG)	2020	2019	2018	Baby, Feminine and Family Care	Beauty	Fabric and home care	Grooming	Health Care	Other
Energy Consumption (gigajoules)	62,823	61,375	61,135	40,741	3,687	11,161	2,475	2,112	2,647
Total GHG Emissions (metric tons)²	2,619	4,060	4,081	1,738	166	489	78	55	93
Scope 1 — Direct GHG Emissions (metric tons)	2,218	2,217	2,162	1,632	88	318	64	51	64
Scope 2 — Indirect GHG Emissions (metric tons)³	402	1,843	1,919	106	77	171	14	4	29
Biogenic GHG Emissions (metric tons)	50	57	68
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 2020 were 2,566,617 metric tons.

Scope 3 GHG Emissions

Almost all of our Scope 3 emissions come from just four categories — purchased goods and services, upstream and downstream transportation and distribution, use of sold product, and end of life treatment of sold product. Of these, the “use phase” of our products, especially those that use hot water during consumer use, is our single greatest opportunity for Scope 3 emissions. Given these four categories account for 99% of Scope 3 emissions, we focus annual updates on those categories and derive new estimates for them using life cycle assessment (LCA) data and production volumes. Consumer use of our products remains our greatest opportunity area. The business travel estimate includes commercial airline travel by employees that was managed by our primary outside travel agencies. Travel arranged by other agencies was not covered in the calculation.

During Fiscal Year 20/21, we made the following updates:

Consumer Use Phase: P&G maintains a strong focus on understanding the “jobs to be done” by our consumers when they use our products. This helps inform innovation and ensure we continue to meet consumer expectations. Consistent with this approach, our estimate of consumer use phase GHG emissions included both laundering and drying clothes as that constituted the full laundry cycle. To better align with WRI/WBCSD GHG accounting protocol guidance for consumer use of products, we have updated our estimate of the Laundry Detergent Consumer use phase to only include those associated with the washing of clothes. This contributed to the decrease in overall consumer use phase emissions vs. prior years.
Transportation: In past years we reported both upstream and downstream transportation together due to limitations of data availability. We have partnered with our logistics providers to gather additional data and are now able to report Upstream Transportation and Distribution which includes estimates for inbound shipments of raw materials and outbound shipments of finished products. We have screening level data on downstream transportation which we have also included in our table.
End of Life: We have updated our calculation methodology to better align with the guidance of the WRI/WBCSD GHG accounting protocol for end-of-life emissions from waste management facilities. This resulted in a change in the estimate for GHG emissions associated with end of life emissions vs. prior years.

Scope 3 Categories	Metric Tons CO₂eq
Purchased goods and services	16,760,000¹
Capital Goods	246,508²
Fuel and energy activities	495,398²
Upstream transportation and distribution	3,900,000
Waste generated in operations	9,035³
Business Travel	124,872⁴
Employee commuting	117,000²
Upstream leased assets	Not material
Downstream transportation & distribution	1,000,000¹
Processing of sold product	Not material
Use of sold product	164,000,000¹
End of life treatment of sold product	9,382,000¹
Downstream leased assets	Not material
Franchises	Not material
Investment	Not material
1 Estimate from LCA data 2 FY16/17 estimate 3 Scope limited to material sent to landfill 4 Covers period July 1, 2019 – June 30, 2020

Progress vs. Goals

Goal	Progress through June 30, 2020
Reduce Scope 1 & 2 GHG emissions by 50% vs. 2010 baseline*	52%
Purchase 100% renewable electricity globally	97% - 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)	New Goal - progress to be reported end of 2021. See this link for additional details
Improve Global Upstream Finished Product Freight emissions by 50% (vs. 2020 baseline)	New Goal – progress to be reported end of 2021
Reduce supply chain emissions from priority categories by 40% per unit of production by 2030 (vs. 2020 baseline). P&G priority categories account for over 90% of P&G’s supply chain emissions.	New Goal – progress to be reported end of 2021.

*Approved by the Science Based Target Initiative as Science Based Target aligned with a “well below 2⁰ C pathway”