P&G's strategy is to deliver irresistibly superior products that delight consumers around the world. We believe that doing this in ways that reduce our own environment footprint and enable consumers to reduce their footprint without compromising on the efficacy of the product will delight consumers and enable P&G to create value for retailers and shareowners in a sustainable way. P&G's ambition is to reach net zero greenhouse gas (GHG) emissions across our supply chain and operations from raw material to retailer by 2040. Our climate journey began over a decade ago with goals at our own manufacturing facilities. Since then, we have expanded and accelerated our efforts to address GHG emissions across the life cycle of our products, and within our operations and supply chain. Our focus is on significantly reducing our operational and supply chain absolute GHG emissions to reach our net zero ambition. We will balance any remaining emissions from our operations and supply chain by advancing natural or technical solutions that remove an equivalent amount of GHG emissions from the atmosphere. To help pace our progress toward 2040, we have established near-term science-based targets for 2030.
Since P&G established our first goal to reduce GHG emissions from our manufacturing facilities over a decade ago, we have continued to raise the bar on climate action by exceeding our emissions targets for Scope 1 and 2 ahead of schedule. This year we are increasing our goal for GHG emissions reductions at our facilities. We now aim to reduce our Scope 1 and 2 emissions by 65% by 2030 versus a 2010 baseline – an increase from our previous 2030 goal of 50%. This new science-based target is aligned to a 1.5 degrees Celsius climate scenario.
FY 22/23 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 also include an estimate for the category of Business Travel, which represents emissions from business travel flights and is based on employee airline travel miles. We include Business Travel as it 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.
Note: SBTi has validated P&G's near-term science-based emissions reduction targets associated with our absolute Scope 1 and 2 emissions, renewable electricity, and intensity of Scope 3 emissions related to upstream transportation and our supply chain.
All policy advocacy is coordinated through our Global Government Relations organization this ensures consistency and transparency in all policy related activities across business divisions and geographies. 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.
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.
As of June 30, 2023, P&G has reduced its Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 58% versus a 2010 baseline. In support of this statement, P&G measured its Scope 1 and 2 GHG emissions from Fiscal Year (FY) 09/10 to FY 22/23. P&G follows the World Resource Institute's GHG Protocol in measuring Scope 1 and 2 emissions and uses the market-based method for Scope 2 GHG emissions. In FY 09/10, P&G's total Scope 1 and 2 GHG emissions were about 5,400,000 metric tons. In FY 22/23, P&G's total Scope 1 and 2 GHG emissions were 2,253,000 metric tons, a reduction of 58% versus FY 09/10. The GHG emissions reduction is an absolute reduction achieved in large part by increasing energy efficiency and purchasing renewable electricity; it does not use or reflect the application of any voluntary carbon offsets. P&G's Scope 1 and 2 GHG emissions data for FY 22/23 has been verified by an independent third party, Lloyd's Register Quality Assurance, as detailed in their assurance statement. P&G has not sought independent third-party verification of P&G's Scope 1 and 2 GHG emissions data for FY 09/10 or the statement that P&G has reduced its Scope 1 and 2 GHG emissions by 58% as of June 30, 2023 versus a 2010 baseline.
For additional information about our climate-related goals and measurement of progress, please review this site, our most recent Citizenship Report and Climate Transition Action Plan.