How is P&G Targeting Net Zero Emissions in Supply Chains?

Procter & Gamble (P&G) has set its sights on net zero greenhouse gas emissions across its entire operations by 2040.

The US-based multinational consumer goods firm has outlined a strategy that covers everything from sourcing raw materials to transporting products to retailers, embedding sustainability into each stage of its supply chain.

The company aims to eliminate emissions from its own activities and work with suppliers to reduce their output too.

It plans to reach full net zero with any remaining emissions will be balanced by removing the same amount of GHGs from the atmosphere through either natural or technical means.

This approach targets emissions at their source and compensates for what cannot be eliminated.

Sustainability from the ground up

P&G states that its sustainability goals are not an add-on but a core part of how it operates.

It has emphasised that changes need to start at the root of operations, saying it builds sustainable supply chains from the outset rather than modifying existing ones.

The company works across sectors to help build infrastructure that supports low-carbon energy and transport.

These partnerships feed into what it describes as "transformative collaboration", aiming to make broad systemic changes possible.

P&G uses a step-by-step plan to measure each part of its operations and its role in emissions.

This detailed tracking helps it identify where it can make changes to cut carbon.

The firm’s Climate Transition Action Plan, published in 2021, sets out its intentions across packaging, transport and product lifecycle.

By using science-based targets for 2030, the company is keeping its longer-term goals within reach.

These 2030 targets include reducing its direct emissions, known as Scope 1, and indirect emissions from energy it uses, Scope 2, by 65% from 2010 levels.

It also wants all consumer packaging to be either recyclable or reusable by 2030 and to halve its use of petroleum-based plastics per unit of product, based on 2017 figures.

Tools for change

The P&G Climate Unlock Programme, launched in 2023, supports suppliers in cutting emissions.

This initiative tracks progress, offers education and provides tools for decarbonisation.

The programme is part of Manufacture 2030’s wider efforts, offering suppliers both resources and planning support to help them shift towards low-emissions manufacturing.

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

"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."

P&G applies a similar approach to the design of its products.

It aims to make sustainability part of the consumer experience, so that using products like Ariel or Tide can lead to reduced environmental impact.

Encouraging cold water washing is one example.

This shift cuts down household emissions by lowering energy use during laundry cycles.

This means it is not only reducing its own footprint but enabling people to lower theirs when they use P&G products.

It also supports industry-wide change by developing scalable solutions others can adopt.

"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," says Luc Reynaert, Chief Product Supply Officer at P&G.

Measurable targets, shared outcomes

P&G began its climate action with its own manufacturing sites, but the scope has grown to include its entire chain, from where it sources raw materials to where it delivers final goods.

This wider focus reflects the company's ambition to embed sustainability throughout its global operations.

The 2040 net zero goal comes with specific actions and detailed checkpoints.

This includes replacing carbon-intensive materials and transitioning to circular systems that reuse and recycle rather than dispose.

It also includes working with both existing and new partners to ensure the supply chain is aligned with climate objectives.

P&G says: "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."