How is P&G Driving Sustainability in the Supply Chain?
Procter & Gamble’s (P&G) 2024 Citizenship Summary highlights how environmental sustainability, community impact, equality and inclusion and governance are inseparable from long-term business success, with a strong focus on the supply chain.
The company views its responsible growth as a key competitive advantage deeply integrated within the supply chain, supported by its purpose, values and principles.
These principles of integrity, transparency and responsible business practices are crucial in strengthening shareholder trust and consumer confidence, while also guiding innovation across operations and brands.
A foundation of responsibility in supply chains
Within its supply chain community programmes, P&G demonstrates how leveraging its global reach can foster local impacts.
For example, Gillette’s partnership with Movember supports men’s health awareness across the US, UK and Europe, while in Vietnam, P&G employees enhance community wellbeing through orphanage support, home repairs in the Mekong Delta and school-based clean water initiatives.
Moreover, staff in West Virginia distribute essentials in partnership with food pantries, and in Canada, the annual P&G Gives Back campaign mobilises volunteers to support food banks and soup kitchens.
“We see success in Citizenship as an opportunity to create competitive advantage that drives shareholder value,” says Jon R. Moeller, Chairman of the Board, President and CEO of P&G in the company’s 2024 Citizenship Summary report.
“P&G’s ability to grow is directly connected to our commitment to responsible business and doing good. In turn, our ability to do good is strengthened by our growth.”
The company's initiatives are supported by the Children’s Safe Drinking Water Program, delivering 23 billion litres of clean drinking water, nearing their 25 billion target by 2025.
Embedding environmental sustainability in supply chains
P&G’s initiatives in sustainability are embedded across operations, supply chains and brands, supported by four science-based pillars: climate, waste, water and nature.
Since 2010, it has achieved a 60% reduction in Scope 1 and 2 GHG emissions, sourced over 99% renewable electricity and maintained zero manufacturing waste to landfill since 2020.
Currently, around 80% of packaging is designed to be recyclable or reusable, with a 21% reduction in the use of virgin petroleum plastic.
“Environmental Sustainability is embedded in how we do business across our operations, supply chain and brands,” says Frantz Beznik, Senior Director Research & Development, Co-Inventor & Leader of 50L Home Coalition, in the company’s report.
“We strive to create products with both superior benefits that are more sustainable to help fulfil our company’s purpose of improving lives for generations to come.”
This commitment extends to product innovations like Tide evo’s recyclable paper pack, Mr. Clean’s refill system and Fairy’s #SwitchtoShort campaign, which illustrate how product design innovations effectively decrease emissions and waste while maintaining performance quality.
Encouraging sustainable consumption
Promoting sustainable consumption, P&G empowers consumers to reduce their environmental impact.
In Malaysia, the Centre for Sustainable Small-Owners equips palm oil farmers with training that improves yields by 30%, while enabling RSPO certification for equitable industry participation.
P&G ensures all wood pulp is sourced via globally recognised certifications to protect biodiversity and community livelihoods.
Transportation emissions are also being minimised through increased utilisation of rail, marine and biofuels, alongside electric truck trials in France.
Products like Tide Cold Certified promote reduced energy usage by 90% during washing in North America and Fairy’s #SwitchtoShort campaign supports shorter dishwasher cycles, trimming carbon footprints by a third.
The reformulations in packaging, such as Tide evo’s recyclable paper pack and Mr. Clean’s refill system, showcase how innovations merge high performance with reduced environmental fallout.
Reflecting the company's ethos, Tamia Collins, Director, Ethics & Compliance at P&G, stated, “Living the Company’s Purpose, Values and Principles is something P&G employees do every day."
She adds: “Our PVPs embody our commitment to do the right thing, an aspiration we celebrate all year, culminating in our Do the Right Thing Celebration.”
