It is important for multinational corporations to step up and be the pioneers of change. Due to their presence in multiple countries, they have the added advantage of influencing many people at once. With their company-wide policies, it also becomes easier to impact their employees for the better.
It becomes more than crucial for companies that indulge in a diverse range of products that involve heavy use of natural resources and packaging of their products.
Procter & Gamble is an American multinational company with its headquarters in Ohio. The company is one of the biggest producers of Fast-Moving Consumer Goods(FMCG).
Brother-in-law’s, William Procter and James Gamble became partners and started a company that sold candles and soaps. The company first started selling its products in 1837. Over time, they began expanding their product portfolio. It also began spreading its manufacturing and sales in different countries outside the USA. By acquiring various companies that manufactured different ranges of products, they kept on diversifying their range. At this point, the company practices a simpler corporate structure with six different business units.
Procter & Gamble’s product portfolio, especially of consumer goods, has a lot of branches. In 184 years, the company has acquired and also dropped many brands to better streamline the company. For consumer/personal healthcare it has brands like Vicks, Pepto-Bismol, Align, etc. For personal care and hygiene, Pampers, Puffs, Tampax, Gillette, Head & Shoulders, Oral-B and Olay. Some of their other famous brands include Ariel, Tide, Pantene, Mr.Clean, Old Spice, etc.
A company so diverse with their products, having their sales all over the world and employing more than 1 lakh employees is bound to be big on carbon footprints and impact on the environment.
As of Dec 2020, Procter & Gamble reported a total of 2169 Kt of Total CO2 emissions (including direct and indirect). This was 1441 Kt less than its emissions in the previous year. The report also shows a gradual decrease in CO2 emissions since 2015.
Sustainability initiatives at Procter & Gamble:
This global consumer goods company has set its initiatives not only on the global scale but also at each national level.
At P&G, sustainability means making every day better for people and the planet through how we innovate and how we act.
P&G is committed to creating a positive impact on the homes, communities and the planet. Their main focus is in the areas of Climate, Forestry, Water and Packaging. Through innovations, the company wants to deliver products that are better but in a sustainable way. All this can be achieved by keeping in mind goals like reducing the carbon footprint, achieving a circular economy and a transparent supply chain. Not only this the company is also joining hands with external organizations that are working to combat climate change.
P&G’s new ambition in September 2021 is to achieve Net-Zero Greenhouse Gases(GHG) emissions across its operations, supply chain and from raw materials to supply chain. Their Climate Transition Action Plan provides an outline for a comprehensive approach to accelerating climate action and its key challenges. The plan also mentions the entire lifecycle emissions of their products. They plan to achieve the Net Zero ambition by 2040.
Water is the elixir of life and this company is doing its bit to save and restore this resource. With the Business for Water Stewardship program, they aim to have a positive impact long-term provision of water for the communities and businesses. With their various innovations, they have also increased water efficiency by 25% and were able to source 3.1 billion litres of water from circular sources.
For family care products, the company uses 100% certified pulp. It plans to achieve 75% FSC certification by 2022 and 100% by 2030. All of their materials are responsibly sourced.
As the company sells single units of a range of consumer products, packaging waste is one of the biggest problems of this company. The company has made conscious efforts to recycle its plastic packaging. In 2021, 73% of their consumer packaging is recyclable or reusable. They are making efforts to work this number up to 100%.
Equality, respect and inclusion are the cornerstones of P&G’s culture. An equal access, opportunity to learn, succeed, thrive and grow for everyone. Through its shared values and purposes they aim at creating an impact. Including people of all gender, disabled people, LGBTQ+, races and ethnicity are inclusive of the P&G community.
Our Equality & Inclusion aspiration is holistic and integrated so that we make a meaningful impact in four key areas of employees, brand, partners and communities.
Procter & Gamble’s sustainability goals:
Global brands like P&G can be the pioneers of change at a huge level. P&G has prioritized activities like reducing our carbon emissions, prioritizing water conservation and shifting towards renewable electricity. In 2018, they formulated their sustainability goals. This time they have taken a step further from reducing footprints and conserving resources. This time they want to focus on restoring the world and making it better.
Some of their ambitions include:
- 100% of our leading brands will enable and inspire responsible consumption.
- 100% of our consumer packaging will be recyclable or reusable.
- Find solutions so no P&G packaging will find its way to the ocean.
- Collaborate on and invest in natural climate solutions that improve and restore critical ecosystems and support local communities.
- Advance at least 10 significant supply chain partnerships to drive circularity on climate, water or waste.
- Purchase 100% renewable electricity globally, cut GHG emissions in half at P&G sites* and be carbon neutral for the decade.
- Will educate employees across all levels.
- We will integrate social and environmental sustainability as a key strategy in our business plans.
Purposes, Values & Principles:
Our Purpose is to improve consumers’ lives in small but meaningful ways, and it inspires our people to make a positive contribution every day. Our Values of Integrity, Leadership, Ownership, Passion for Winning and Trust shape how we work with each other and with our partners. And our Principles articulate our deliberate approach to conducting work every day.
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