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 — 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%¹. From 2010 to 2021, we have reduced absolute Scope 1 & Scope 2 emissions across our global operations 56% 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 56% 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 20/21:

	Totals (absolute units x 1,000)			2021 Global Business Unit Detail¹ (absolute units x 1,000)
Energy and Greenhouse Gas (GHG)	2021	2020	2019	Baby, Feminine and Family Care	Beauty	Fabric and home care	Grooming	Health Care	Other
Energy Consumption (gigajoules)	63,197	62,912	61,422	41,248	3,751	10,894	2,534	2,220	2,550
Total GHG Emissions (metric tons)²	2,398	2,624	4,064	1,694	96	396	68	52	91
Scope 1 — Direct GHG Emissions (metric tons)	2,242	2,221	2,219	1,665	86	312	66	52	61
Scope 2 — Indirect GHG Emissions (metric tons)³	156	404	1,844	30	10	84	2	0	30
Biogenic GHG Emissions (metric tons)	50	50	57
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 2021 were 2,436,076 metric tons.

Scope 3 GHG Emissions

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. This year, we made several changes to our Scope 3 inventory which we feel better align with the guidance in the WRI/WBCSD GHG Accounting protocol. Key changes of note include:

In the past, we have included the drying phase of machine laundering as part of the consumer use phase for our laundry detergents. This was consistent with our focus on "consumer jobs to be done" and helped inform opportunities to lower overall energy use associated with the job of laundering clothes. This year, we changed the scope of that assessment (use phase of laundry detergents) to include the washing phase only. We believe this aligns better with GHG protocol guidance on indirect consumer use. As a result, there has been a decrease in the Scope 3 Category of "use of sold products".
Transportation and distribution are now listed for upstream and downstream separately, more consistent with Scope 3 category list per GHG Protocol.
End-of-life treatment of sold products includes Scope 1 and 2 emissions of waste treatment facilities, consistent with guidance provided in the GHG Protocol.
Several small categories that are below 1% of total emissions are listed as "not material", given their low impact on total Scope 3 emissions. We will periodically assess these categories to ensure no significant changes in their contribution and plan to update major categories on an annual basis. We have a made choice to continue to list Business Travel as that is a category of interest to our own employees and our business travel partners are able to track employee airline travel miles and provide that data to us.

Scope 3 Categories	Metric Tons CO₂eq
Purchased goods and services	16,760,000¹
Capital Goods	246,000²
Fuel and energy activities	495,000³
Upstream transportation and distribution	3,900,000⁴
Waste generated in operations	Not material
Business Travel	11,000
Employee commuting	Not material
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-July 30, 2020

Progress vs. Goals

Goal	Progress through June 30, 2021
Reduce Scope 1 & 2 GHG emissions by 50% vs. 2010 baseline*	56%
Purchase 100% renewable electricity globally	98% - 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 work with NGO partners to develop natural climate solution projects that will deliver climate benefits for both people and nature. We are making progress and will share a more detailed update in FY 21-22.
Improve Global Upstream Finished Product Freight emissions by 50% (vs. 2020 baseline)	New Goal – progress to be reported end of 2022.
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 2022.

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