How is Procter & Gamble Reshaping End-to-End Supply Chains?

Procter & Gamble is aiming to achieve net zero greenhouse gas emissions by 2040, from raw material to retailer.

The consumer goods company hopes to be fully emission-free across its supply chain and end-to-end raw material to retailer operations.

Through collaboration with suppliers and more sustainable products, P&G is not only changing its environmental impact, but that of its consumers.

A force for sustainability

The American multinational consumer goods company says it believes in being a force for good, consistently working with communities and implementing sustainable practices. 

P&G has many climate initiatives it's been working towards over the years, with plans laying out how it will reach the large-scale goal of net zero by 2040.

P&G has its sustainability plans step-by-step, so it knows how each part of its operations contributes to emissions or how each part can be altered in order to become more environmentally-friendly.

P&G states: "Our focus is on significantly reducing absolute GHG emissions in our operations and supply chain.

"Then, we aim to balance remaining emissions by 2040 by advancing natural or technical solutions that remove an equivalent amount of greenhouse gas emissions from the atmosphere."

The company has science-based 2030 targets to help keep it on track for its longer-term goals, with its Climate Transition Action Plan from 2021 exploring its plans for more sustainable practices regarding packaging, transport and product end-of-life. 

P&G's Chief Sustainability Officer, Virginie Helias, says: "We are committed to improving people’s lives with innovation that delivers irresistible performance and is more sustainable.

"We are working across Climate, Waste, Water and Nature to reduce our own footprint, enable people to reduce their footprint when using our products, and develop solutions that will help our industry or other sectors reduce their footprint."

As part of its climate action, P&G is partnering with private, nonprofit and public sectors to help with large-scale energy and transportation infrastructure changes. 

This will build new supply chains for P&G, allowing it to integrate sustainability from the roots of the partnership, rather than attempt to add it as an after thought.

The aims

When P&G's climate journey first began, a focus was on its manufacturing facilities. Since then, the company is considering sustainability from its sourcing materials to its transportation of final products to the retailer.

By 2030, P&G is aiming to: 

• reduce Scope 1 and 2 emissions by 65% from its baseline levels in 2010 
• make all consumer packaging recyclable or reusable by 2030, which will reduce the overall environmental impact of its products
• reduce the use of petroleum plastic by 50% per unit of production, based on a 2017 baseline
• purchase 100% renewable electricity, with 99% of its electricity from renewable sources around the world

In 2023, the company created its P&G Climate Unlock Programme, in place to help suppliers keep track of their climate progress and transition to net zero. Part of this programme includes providing education and resources to its suppliers as well as planning support from the Manufacturing Decarbonisation programme from Manufacture 2030.

Tools and collaboration

P&G is looking towards partnership and new technology to reduce emissions, investing in new solutions and innovation, striving for "transformative collaboration". 

Luc Reynaert, Chief Product Supply Officer at P&G states: "The essence of our Supply 3.0 strategy is how we bring together automation, data, sustainability, and people to meet product demand with precision that drives long-term value and business impact."

P&G concludes with: "Addressing climate change is complex and requires innovation and collaboration. We’re delivering impact at three levels: reducing our own impact, enabling consumers to reduce their impact and helping industry reduce its environmental impact through scalable solutions." 

Thanks to P&G's sustainable implementation throughout its products, its consumers are now reducing their own environmental impact just by using these products. Tide and Ariel, for example, are promoting cold water washing for clothes, which can reduce carbon emissions significantly.

Procter & Gamble are making distinct, well-planned changes which can be seen throughout its supply chains.