Greenhouse gas (GHG) emissions are one of the major causes of rising global warming, and the companies from the FMCG, retail, packaging, and food service sectors account for a significant amount of the global emissions. CO2, Methane & NOx gases form a major part of greenhouse gases released from fossil fuels such as gas and oil. Due to rising GHG emissions from companies, it became important among major contributing sectors to report gas emissions during their operations.
Companies from the consumer sector are under increasing pressure to reduce their carbon footprint. Consumers are becoming more aware of excess carbon dioxide emissions' detrimental environmental effects. Their consumption behavior changes due to this, and they take an active interest in sustainability issues.
Procter & Gamble Co (P&G) is a manufacturer and marketer of fast-moving consumer goods. The major brands under the company include Head & Shoulders, Tide, Ariel, Olay, Pantene, Pampers, Gillette, and others.
The total GHG emissions of P&G in 2021 were 2.4 million tonnes of CO2 equivalents (MtCO2eq), a decrease of 8.6% from 2020. The company’s baby, feminine, and baby care business unit generated a maximum amount of GHG emissions in 2021 of 1.69 million tonnes of CO2 equivalents which accounted for 71% of the total GHG emissions followed by fabric and home care (17% of the total GHG emissions).
GHG emissions are generally classified into Scope 1, 2, and 3 emissions. Scope 1 includes direct GHG emissions from sources that are owned or controlled by the company such as emissions associated with heating and cooling. Scope 2 encompasses indirect GHG emissions associated with purchased electricity. Scope 3 involves indirect GHG emissions in the company’s upstream and downstream activities, such as the purchase of goods and services, use of sold products, upstream transport and distribution, and business travel.
In 2021, Scope 1 emissions form the major portion of P&G’s total GHG emissions, accounting for 2.24 million tonnes of CO2 equivalent (93.5% of the total GHG emissions). The company's Scope 2 emissions decreased by 61% to 0.16 million tonnes of CO2 equivalent in the same year.
P&G aims to reduce Scope 1 and 2 by 50% (against the 2010 baseline) and it has achieved 56% by June 2021. The company also aims to purchase 100% renewable electricity globally.
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