About P&G

For over 185 years, P&G brands have been trusted in millions of living rooms, kitchens, laundry and bathrooms around the world. The company believes in finding small but meaningful ways to improve consumers' lives – now and for generations to come.

P&G operates in approximately 70 countries worldwide, and its products are sold in about 180'countries and territories. P&G's climate journey began over a decade ago with goals at its own manufacturing facilities. Since then, the company has expanded and accelerated efforts to address greenhouse gas (GHG) emissions across the life cycle of its products, and within global operations and the supply chain.

P&G’s decarbonization targets

In 2021, P&G announced its ambition to reach Net Zero GHG emission across its supply chain and operations by 2040.

To help pace the progress toward this ambition, the company has established near-term science-based targets for 2030, including 40% reduction in supply chain emissions* per unit of production compared with a 2020 baseline.

(*refers to purchased goods and services)

Jan Geisler, Vice President, Purchases Excellence & Transformation, provides perspective:

“We know we may not have all the answers today, but we will create them together. We partner with our suppliers to understand where they are today, their emission reduction plans and identify how we can collaborate on future solutions.”

For more information about P&G’s supply chain efforts, please see Supplier Citizenship. To learn more about P&G’s sustainability efforts, visit the Corporate Sustainability website.

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Why P&G joined PACT

P&G participates in the World Business Council for Sustainable Development's Partnership for Carbon Transparency (WBCSD PACT) to:

• Enable collaboration between a diverse range of stakeholders
• Help establish standardized approaches and guidelines related to methodology and data exchange technology across industry
• Enable a trusted and holistic foundation for measurement
• Accelerate decarbonization through data transparency of emissions in the value chain.

P&G is helping grow the low carbon materials market for the consumer goods industry through strategic partnerships with suppliers across the value chain, ranging from large-scale global companies to small-scale start-ups.

For example, P&G is investing in projects with key suppliers that have the potential to reduce several million metric tons of CO₂ over the next decade. These efforts span advanced technologies including carbon capture, storage and utilization (CCS/CCU), hydrogen utilization, bio-based solutions, advanced recycling technologies, and renewable energy.

Clear and uniform carbon accounting standards, like PACT, will help P&G accelerate and scale solutions, not only for P&G but, but also for the broader consumer goods industry over the long term.

Jan Geisler, Vice President, Purchases Excellence & Transformation, explains:

“Achieving P&G’s Ambition to reach Net Zero GHG emissions by 2040 and solving the broader global challenge will require strong collaboration and transparency across suppliers and partners. We need common standards & methodologies across the supply chain. WBCSD PACT is a leading initiative to jointly establish methodologies & data exchange technologies with our partners.”

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Progress and achievement with PACT

P&G is currently collecting PACT-based data from its suppliers to more reliably track progress in reducing supply chain GHG emissions. The company has deployed its proprietary Greenchain Platform to systemically collect product carbon footprints from key suppliers. This platform makes data more readily available to P&G internal teams and enables consistent reporting via an automated system. The approach is shared through P&G's  Supplier Citizenship site  

More than 100 suppliers have joined the current campaign for product-level data collection and evaluation.

The first step in P&G's journey involved open dialogue through organized workshops, where suppliers could share their perspectives on sustainability and the challenges in measuring their carbon footprints.
This approach created an environment where all suppliers felt empowered to share insights, even in traditionally protective categories like e.g., fragrance raw materials.

Future for collaboration with PACT

P&G will continue to grow collaboration with its suppliers through workshops and campaigns, driving the visibility and tracking of purchased goods’ carbon footprints & emission reductions.

The company also sees the necessity, and supports the synchronization, of these efforts across value chains and industry boundaries, enabled by technology. The goal is to establish a trusted and holistic foundation for measurement, covering the majority of raw and packaging materials relevant to P&G’s supply chain emissions.

Jan Geisler, Vice President, Purchases Excellence & Transformation, says:

“We invite our partners to adopt the PACT methodology, which provides an effective data framework – to support the reduction of carbon footprints.”

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Guiding insights for sustainability

P&G views sustainability not as a challenge, but as an opportunity for innovation. By integrating Product Carbon Footprint (PCF) data into the supplier evaluation process, the company emphasizes the importance of carbon transparency in sourcing decisions.

Through PACT, new suppliers can enhance their market competitiveness and align with global sustainability trends.

Reflecting on its journey, P&G recognizes that the results are not solely measured in numbers or metrics, but in the strong relationships built with suppliers. Partners' innovative approaches have been crucial in advancing shared decarbonization goals.

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