How Colgate-Palmolive is Reshaping its Global Supply Chain
Colgate-Palmolive has published its 2024 Sustainability and Social Impact Report, which includes with a sharp focus on how supply chains can help meet environmental and social goals.
The company sets out how risk management, packaging innovation, renewable energy and supplier engagement align with its mission to "reimagine a healthier future for all people, their pets and our planet".
Crucially, the report details how Colgate-Palmolive integrates ESG issues into core business functions.
Embedding sustainability
Supplier contracts, sourcing policies and product design processes at Colgate-Palmolive are all shaped by ESG criteria. Progress is tracked against 14 of the 17 UN Sustainable Development Goals, reinforcing the scale of supply chain responsibility.
Ann Tracy, the company's Chief Sustainability Officer, says: "Our sustainability efforts also help to strengthen our business. We believe that some consumers favour brands from companies that act responsibly and will recognise our leadership in this space and choose our brands.
āWe are proud of our progress so far, but there is more work to be done. We strive to be better for the people who use our products and drive value throughout our business. Getting this principle right will result in reducing our impact on the planet."
Supply chain action on climate, packaging and sourcing
Packaging is one of the most visible elements of Colgateās supply chain strategy, having developed a recyclable toothpaste tube which is now distributed in more than 70 countries, with 95% of North American tubes converted.
By the end of 2024, 93% of packaging was recyclable, reusable or compostable. Virgin plastics use was cut by 25% compared to 2019 levels, while post-consumer recycled plastic reached 21%. Targets for 2025 include reducing virgin plastics by a third and increasing recycled content to 25%.
Colgate also invests in renewable energy supply agreements and commits to net-zero carbon emissions across its value chain by 2040.
Shorter-term goals include 100% renewable electricity by 2030 and reducing Scope 3 emissions from purchased goods and services by 42% from a 2020 baseline.
Scope 1 and 2 operational emissions are also targeted for a 42% cut.
By 2040, Colgate aims to achieve a 90% reduction in Scope 1, 2 and 3 emissions, excluding optional categories under the Science Based Targets initiative.
Colgate works with suppliers on deforestation- and conversion-free commitments, especially in palm and soy supply chains. This includes certified materials, satellite monitoring and direct supplier engagement.
Human rights form another key part of supply chain governance, with partnerships such as the Fair Labor Association addressing responsible recruitment in the Malaysian palm oil sector.
Water management is approached through the CDP Water Supply Chain Program, where suppliers are encouraged to assess and mitigate water risks, particularly in water-stressed regions. This builds resilience not only for Colgate but also for the communities where suppliers operate.
Partnerships to scale sustainable supply chains
Colgate-Palmolive works with the U.S. Plastics Pact, The Recycling Partnership and various startups to expand recycling infrastructure and reduce waste.
Global collaborations such as the Forest Positive Coalition support systemic change in commodity supply chains, while recycled pulp and paper sourcing reduces environmental impact.
Externally, Colgate engages with academic institutions like Stanford University Graduate School of Business to strengthen leadership in sustainability-driven supply chain management.
Workplace safety, inclusion and oral health programmes complement environmental partnerships with groups such as Water.Org and the Closed Loop Infrastructure Fund.
Ann states: "At Colgate-Palmolive, we're committed to reimagining a healthier future for all people, their pets and our planet. We are driving social impact, helping millions of homes and preserving our environment."
These collaborations reflect a view that sustainability must be embedded across multiple stages of the supply chain, from raw materials and packaging to logistics and community impact.
