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% 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 Detail¹ (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.

GHG Independent Assurance Statement

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 services¹	16,760,000
Capital Goods²	246,000
Fuel and energy activities³	495,000
Upstream transportation and distribution⁴	3,900,000
Waste generated in operations	Not material
Business Travel	11,000
Employee commuting	Not material
Upstream leased assets	Not material
Downstream transportation & distribution¹	1,000,000
Processing of sold product	Not material
Use of sold product¹	164,000,000
End of life treatment of sold product¹	9,382,000
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, 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