Paper Packaging Procurement Practices

Paper Packaging

At P&G, we have a responsibility through our procurement practices to ensure that the wood fiber in our packaging is sustainably sourced.

Perspectives on Packaging

We continually strive to optimize our packaging design, aiming to use the least amount of material, while ensuring adequate protection, delivery, and safe use of our products. As part of our ongoing efforts, we continue to identify source reduction opportunities to decrease overall material usage and to use recycled paper when it offers the best option to meet performance and business requirements. Our paper-based packaging is derived from wood fiber, and we have a responsibility through our procurement practices to ensure that the wood fiber in our packaging has been responsibly sourced.

We have an aim that 100% of our paper packaging will contain either recycled or third-party certified virgin content. Over the past several years, we have expanded our efforts to collect data from an increased number of suppliers to assess progress against this goal. In 2022, we received data from more than 139 suppliers representing more than 98% of our global paper packaging spend.

Paper Packaging Sourcing Policy

Though we do not own or manage forests, we have a responsibility through our procurement practices to ensure sustainability of the world’s forest resources. To deliver on this commitment, P&G sets supplier expectations in our Forest Commodities Policy.

In addition to our Forest Commodities Policy, we work with our suppliers and other stakeholders to promote forest certification through our purchases. We give preference to the Forest Stewardship Council and accept Sustainable Forestry Initiative and Programme for the Endorsement of Forest Certification who ensure forests are responsibly managed. We also purchase paper packaging made of recycled material.

Recycled Material

Typically, virgin fiber used for paper and board production is from timber that are usually by-products from lumber and unlikely to be used for other purposes. Once this virgin fiber has been made into paper, it can be recycled on average five to seven times. Recycled paper and board are a crucial part of achieving our Ambition 2030 goals.

We also recycle 'post-industrial' waste. This is material that, for one reason or another, was not used directly for packaging. The most common form is 'clippings' – waste generated when packaging is cut to shape.

As we go forward, our objective is to achieve 100% use of recycled or third-party certified virgin fiber in our paper packaging and maintain this goal ongoing. We will continue to report data on our paper packaging on an annual basis.

Supplier List

P&G will share on an annual basis our paper packaging suppliers. We believe that transparency helps us to build a more sustainable supply chain. Our direct supplier list accounts for in excess of 98% of the wood fiber-based packaging P&G purchased in 2022. This list includes all corrugate, folding cartons, displays, paper labels, and packaging.

Progress & Goals

Goals Progress through June 30, 2022
Paper Packaging*
100% of our paper packaging to be either recycled or third-party certified virgin content >99% recycled or third-party certified
50% of our virgin paper packaging is FSC™ certified by 2025 Achieved — 68% FSC™ certified

*Data self-reported by suppliers. Responses received by publication of our 2022 Citizenship Report represent ~95% of total supply. We do not expect remaining 5% to materially impact reported results.

Data & Metrics

This data, which was self-reported by our suppliers*, is summarized in the following table:

2022 2021 2020
Total Metric Tons (x 1,000) 1,505 915 840
% Recycled 79% 83% 80%
% of Virgin 21% 17% 20%
% of Virgin fiber that was 3rd party Certified 97% 95% 94%
% of Virgin fiber that was 3rd party Certified FSC 68% 44% 42%
% of total recycled or 3rd party certified virgin >99% >99% >99%

*Responses received by publication of our 2022 Citizenship Report represent ~95% of total supply. We do not expect remaining 5% to materially impact reported results.