Finance & Investment
P&G Embraces Natural Climate Solutions to Achieve Global Climate Neutrality

Today, Procter & Gamble committed to achieve carbon-neutral global operations for the 2020s. Recognizing that the next decade represents a critical window for the world to mitigate the effects of climate change, P&G says it will go beyond its existing science-based target of reducing greenhouse gas emissions (GHGs) by 50 percent by additionally advancing a portfolio of natural climate solutions that will deliver a carbon benefit that balances any remaining emissions over the next 10 years. Based on current estimates, the Company will need to balance roughly 30 million metric tons of carbon from 2020 to 2030. 

P&G is on track to deliver on its 2030 commitments to reduce GHGs by 50 percent and purchase 100 percent renewables. But, based on today’s technologies, there are some emissions that cannot be eliminated by 2030 — which is why the company will add investments in natural climate solutions to the mix.  

Nature alone can solve up to one-third of climate change

P&G will partner with Conservation International, World Wildlife Fund (WWF) and other environmental NGOs to identify and fund a range of projects designed to protect, improve and restore critical ecosystems including forests, wetlands, grasslands and peatlands. In addition to sequestering more carbon, natural climate solutions have the potential to deliver meaningful environmental and socioeconomic benefits that serve to protect and enhance nature, and improve the livelihoods of local communities. P&G says it will seek to measure and communicate relevant benefits from its investment in nature.

Among the projects P&G has identified: 

• Partnerships that Create Positive Impact & Important Behavior Change

  Join us as leaders from Diageo, ReFED and the Impactful examine case studies of collaboration delivering tangible benefits while also driving virtuous cycles of behavioral shifts among customers, innovation partners, suppliers, vendors and local communities— Wed, May 8, at Brand-Led Culture Change.

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  Philippines Palawan Protection Project (Conservation International) — To protect, improve and restore the mangroves and critical ecosystems on the Philippines’ largest island and its Cleopatra’s Needle Critical Habitat — the world’s fourth most “irreplaceable” area for unique and threatened wildlife. 

• Brazil’s Atlantic Forest restoration planning (WWF) — In a perhaps less well-known but still critical Brazilian forest, on the country’s eastern coast, P&G and WWF are working to restore areas of the Atlantic Forest; to provide meaningful impacts on biodiversity, water, food security and other benefits for local communities. 

• Evergreen Alliance (Arbor Day Foundation) — P&G joins a coalition of companies including Church & Dwight, FedEx, Hershey, International Paper, Target, UPS and more working to help the Arbor Day Foundation reach its goal of planting 100 million trees and inspiring 5 million tree planters by 2022.

Getting consumers on board

Achieving its desired climate impacts means P&G must also rein in the emissions from its supply chain and consumer use of its products (Scope 3 emissions) — of which consumer use accounts for up to 85 percent. P&G reaches five billion people through its brands, so the company has been working to give consumers the power to reduce their own carbon footprints with products that are designed to help save energy, water and natural resources.

In 2019, P&G presented a framework that included innovation and communication strategies that aim to inspire and enable responsible consumption for its five billion daily consumers. P&G brands including Pampers, Ariel, Herbal Essences, Cascade, Fairy and Tide have framework with actions and commitments to help accelerate sustainable lifestyles and habits — through encouraging low-temperature washing, and other water- and energy-efficient homecare practices.

Read more about P&G’s new climate commitment here.