Helping to Protect Critical Ecosystems and Biodiversity: Learn About P&G’s Ambition for Nature

At P&G, the success of our business is intricately linked to the health and sustainability of the natural environment. We believe it is important to help protect and restore critical ecosystems that help sustain our operations, support the wellbeing of people and help protect the long-term health of our planet.

Our approach focuses on:

• Advancing responsible sourcing in our supply chain: We are committed to responsible sourcing of our forest commodities, including no deforestation in our wood pulp, paper packaging and palm oils supply chains. We identify and promote best practices for sustainable production and agriculture and ensure respect for people and communities within our supply chains. In this work, we partner with our suppliers, our customers, other companies and certifying bodies (e.g., RSPO, FSC), landowners, farmers, local communities, Indigenous Peoples and civil society groups.

• Protecting, restoring and improving ecosystems in landscapes important to our business: We are advancing nature-based projects important to P&G, people, climate and biodiversity by developing a portfolio of projects in partnership with leading conservation organizations that will protect, restore or improve more than 1.5 million acres of land in priority landscapes. We are also advancing natural climate solutions projects to balance any remaining greenhouse gas emissions from our manufacturing operations that are not eliminated by 2030.

• Partnering on solutions for ecosystems and supporting forest communities in landscapes important to the broader industry: We are supporting solutions that help restore and protect landscapes, biodiversity and forest communities in the places where we live, work and source. We are engaged in programs with Rimba Collective, Rainforest Alliance Forest Allies, The Arbor Day Foundation Evergreen Alliance and World Wildlife Fund Forests Forward.

This post addresses the top frequently asked questions about our approaches for nature, natural climate solutions and responsible sourcing.

1. How does P&G approach responsible sourcing?

Responsible sourcing at P&G is embedded throughout our sourcing decisions and supply chain choices. We take an approach that is ethical, environmentally aware and respects human rights. Together, we believe this helps us deliver positive impacts for our business, supply chain partners, people and communities.

Our Forest Commodities Policy sets out the responsible sourcing expectation for wood pulp, palm oils and paper packaging. And our individual commodities’ sustainability strategies focus on ensuring robust, compliant supply chains, due diligence and programs that support the landscapes, people and communities from which our materials are sourced.

You can learn more about our approach to responsible sourcing, respecting human rights and wood pulp, palm oils and paper packaging sourcing in the nature section of our ESG Investor Portal.

2. Does P&G use third party certification schemes for your forest commodities?

P&G is committed to responsible sourcing of key commodities such as wood pulp, palm oil and paper packaging. Robust certification schemes can play an important role in responsible sourcing but only when they are part of a broader program of engagement and due diligence. P&G aims to use 100% Roundtable on Sustainable Palm Oils (RSPO) certified palm oils in our brands, a goal we first achieved in 2021.

We have met our ambition to source 100% of our wood pulp from certified suppliers through globally recognized certification systems. Our responsible sourcing extends to paper packaging, where 100% is either recycled or third-party certified, with a goal of having 50% of our virgin paper packaging certified by the Forest Stewardship Council™ by 2025.

3. What initiatives does P&G have to protect and restore ecosystems?

We have a portfolio of projects in partnership with leading conservation organizations around the world that aim to protect, restore or improve more than 1.5 million acres of land. We include landscapes in regions where we source our materials, and areas considered critical for conservation. We’re also advancing natural climate solutions projects to balance any greenhouse gas emissions from our manufacturing operations that are not eliminated by 2030. Projects committed to date get us more than 75% of the way to our natural climate solution goal.

4. How does P&G support biodiversity?

Our nature strategy outlines efforts to help support the health, abundance and resilience of the biodiversity and ecosystems critical to people, the planet and P&G. We recognize the importance of going beyond responsible sourcing to support natural landscapes’ biodiversity and ecosystems, and the people who rely on them.

One example is our work with Conservation International to help restore one of the most biodiverse regions on Earth. The Mantalingajan Landscape on the island of Palawan in the Philippines provides habitat to a variety of species found nowhere else on the planet. It’s home to more than 1,000 plant and animal species and 12,000 Indigenous Peoples, many of whom rely directly on nature for their livelihoods. In partnership with Conservation International, we are advancing a project focused on protecting and restoring the upland forests and mangroves to help ensure these ecosystems continue to support local communities, biodiversity and contribute to greenhouse gas emissions reductions. We have established initial goals and programs and continue to work externally to help advance the science, methodologies, tools and partnerships necessary for society to address nature and biodiversity loss. As we go forward, we will continue to be guided by science, our expert partners and our stakeholders.

5. What role does palm oil play in P&G's sustainability strategy?

P&G uses palm oil to produce many of the surfactants and softeners we need to develop our superior performing cleaning products for our homes and personal care. P&G is committed to the responsible sourcing of palm oil within our supply chain and partnering with others for the establishment and adoption of sustainable practices more widely. We have been a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2011, and are committed to RPSO’s 2018 principles and criteria. We work actively with RSPO alongside civil society organizations, growers and smallholders, and producers and manufacturers to support and promote the vision of making sustainable palm oil the “norm.”

Our Palm Oil Responsible Sourcing Approach has three pillars of action:

• Sourcing Fundamentals: These establish the standard we expect for palm oils production and supply chain traceability of over 98%+ of our supply to palm oil mills.
• Due Diligence: We use proactive satellite monitoring of our supply chains, certification and responsive grievance mechanisms to assess and respond to issues if they occur.
• Positive Impact Partnerships & Programs: This includes our P&G Smallowners program, established in Malaysia, which supports smallholders in their journey to sustainable practices, certification and yield and livelihood improvements. We are also a founding member of RIMBA Collective, an innovative 30-year program that aims to protect and restore 500,000 Hectares of land and support 32,000 people in forest communities in South East Asia.

6. Does P&G use responsibly sourced Palm oils?

P&G is committed to responsibly sourcing the palm oil we use. This is why we have our three pillar responsible sourcing strategy, which includes clear policy expectations of no deforestation, no new development on peat, no exploitation monitoring, ongoing engagement with suppliers and stakeholders and a range of community and environmental programs in South East Asia. We work with suppliers, customers, local communities, experts and civil society groups. P&G aims to use 100% RSPO certified materials in our brands, a goal we have maintained since 2021.

7. How does P&G support sustainable forestry practices for wood pulp?

We prioritize sustainable forestry practices by sourcing 100% of our wood pulp from third-party certified suppliers. Our paper brands source certified wood pulp using forestry standards that support no deforestation, safeguarding of endangered forests, fair wages, biodiversity preservation and community rights of Indigenous Peoples. Our Forest Commodities Policy sets the expectation of no deforestation in our supply chain.

8. Does P&G use responsibly sourced wood pulp?

P&G purchases wood pulp for tissue, towel and absorbent hygiene products. Though we do not own or manage forests, we have a responsibility through our procurement practices to ensure the sustainability of the world's forest resources. As such, we are committed to understanding our pulp fiber sources, transparency in sourcing and ensuring that sustainable forest management practices are used. To deliver on this commitment, please see P&G’s Forest Commodities Policy.

P&G requires 100% of the wood pulp we source to be certified by a globally recognized certification system (Forest Stewardship CouncilTM, Sustainable Forestry Initiative, and Programme for the Endorsement of Forest Certification), which include criteria related to protecting both environmental and social values of forests. By producing all our products with 100% certified pulp, we are helping to promote forestry practices that leave a smaller environmental footprint, protect vulnerable species and make a positive impact on communities that depend on them.

9. How does P&G collaborate with partners to enhance sustainability?

We work with many supply chain partners, other consumer goods companies and with civil society and community groups to help establish sustainability standards and to advocate for them industry-wide. We do this through established forums like Roundtable on Sustainable Palm Oil (RSPO), The Palm Oil Collaboration Group (POCG), High Carbon Stock Approach (HCSA), and Farm Sustainability Assessment (FSA). We also support transformative and systemic solutions that help protect and build the resilience of ecosystems in landscapes critical to the broader industry in which P&G operates. We are engaged with initiatives such as Rimba Collective, Rainforest Alliance Forest Allies, The Arbor Day Foundation Evergreen Alliance and WWF Forests Forward.

Explore our ESG Investor Portal to learn more about P&G’s nature and forestry initiatives along with progress towards achieving our 2030 Ambitions.