It’s full steam ahead for Procter & Gamble. P&G states it is making a gallant effort to spearhead many initiatives in the realm of sustainability. Anything from climate change, to renewable energy, energy conservation, renewable materials, packaging and waste, this company appears to be very forthcoming with their sustainability strategy. Navigating through the P&G website is fairly seamless. Directly on their main page is a link to their Sustainability section with another easily findable link to their “Citizenship Report”1. P&G changed the title from Sustainability Report to Citizenship Report this year to further encompass sustainability goals, as well as ethical, diversity and equality initiatives. Over 40 pages of the report (of the 84 total) were dedicated towards sustainable objectives. These pages are flooded with graphs, pictures and links that further emphasize these ongoing efforts.
That said, from eye of the investor, sustainability may not be an ultimate driver in their profit model. Their overall intention throughout one of their investment videos3 discusses the drive for making the best products on the market, as well as cost savings through COGS and various types of spending. Their 2017 Annual Report has virtually no mentions to sustainability efforts, which appears contradictory to their extensive Citizenship Report. Further analysis for the division of reports could be helpful in determining the company’s authenticity towards going green. That aside, their measurable sustainability goals are very direct in their Citizenship Report.
Achieved 2020 Goals:
Reduce energy use at P&G facilities by 20% per unit of production by 2020
Have 100% of the virgin wood fiber used in our tissue / towel and absorbent hygiene products be third-party certified by 2015
Reduce truck transportation kilometers by 20% per unit of production
Reduce water use in manufacturing facilities by 20% per unit of production with conservation focused on water-stressed regions
*Not all are notated, see Citizenship Report1 for full progress report
Continued 2020 Goals:
Reduce absolute GHG emissions by 30% by 2020 - reduced 10% since 2010
Ensure plants are powered by 30% renewable energy - renewable energy use is 9.6% since 2010
Ensure 90% of product packaging is either recyclable or programs are in place to create the ability to recycle it - In FY15/16, 86% was recyclable
Provide 1 billion people with access to water-efficient products - reached 450 million as of FY 15/16
*Not all are notated, see Citizenship Report1 for full progress report
P&G notates many long-term goals or “visions”, as well, however, a timeline is not specified.
Long-term visions:
Powering all our plants with 100% renewable energy
Using 100% renewable or recycled materials for all products and packaging
Designing products that delight consumers while maximizing the conservation of resources
Having zero consumer and manufacturing waste go to landfills
The company has hit their 2020 goal for energy conservation 4 years early and they say that they are making strides to continue this trajectory. They are using many methods to measure performance. Metering and monitoring systems analyzes energy consumption and identifies energy losses4. Also, many sites have achieved or are working towards achieving no waste post production or after consumer usage by also being powered by 100% renewable energy4. They have also steam and wind renewable energy plants opening up between 2016 and 20171, indicating a visible and tangible effort towards energy conservation. The report also dives into P&G’s efforts to reduce greenhouse gas emissions. A new “science-based per unit of production goal” is described for intentions to reduce GHG (see below graph). The report further states, that “although our production has grown since our baseline, we have been able to successfully decouple this growth from our emissions driving a 10% absolute GHG reduction over the same period”1.