P&G SUPPLIER
GREENHOUSEGAS REDUCTION
PLAYBOOK

1WE DO NOT HAVE ALL THE
SOLUTIONS, LET’S CREATE
THEM TOGETHER
Dear External Business Partner,
I am Ana Elena Marziano, P&G’s Chief Purchasing Officer. I want to share with you our climate ambitions
on Net Zero emissions across our supply chains by 2040, and ask for your partnership and engagement
to help us all do the right thing for our operations and our planet.
Some of you know that P&G’s climate journey began over a decade ago – in 2010 - when we established
our first Greenhouse Gas (GHG) emission reduction goals for our manufacturing sites. Since then, wehave continued to evolve and accelerate our efforts to help reduce GHG emissions not only in our supply
chains and operations, but across the life cycle of our products and services. In 2021, we announced
our new Climate Transition Action Plan. Our commitments to address GHG emissions under theClimate pillar span from Scope 1 to Scope 3. They start with our supply chain and end with the use of
our products by consumers. Our goals are big and bold and can only be achieved by working in close
partnership with our entire supply ecosystem.
We need each one of you to integrate Climate thinking into your business strategies and takeaccountability to develop and drive your own plans. And I am asking all of you, as our trusted business
partners, to collaborate with us to accelerate progress towards our Ambition 2030 goals. We need yourhelp across several vectors, including, but not limited to, measuring emissions in our shared supply
chain, setting your own goals and emissions reduction plans, and engaging in a dialogue in areas where
you need support and help. This foundational work will help us make a difference not just today ortomorrow but for generations to come and for the planet which is our home.
Thank you for your commitment to being a Force for Growth and a Force for Good – whereby together,
we make a positive impact to our world and our business.

2Ana Elena Marziano
Chief Purchasing Officer,
The Procter & Gamble Company

UNDERSTAND OUR CLIMATE GOALSTO ENABLE BETTER COLLABORATIONAt P&G our aim is to deliver irresistible superiority that issustainable. Our Ambition 2030 goals keep us focusedon achieving results. Overall, our foundation is built on
4 key distinct pillars: Climate, Water, Waste and Nature.

OUR AMBITIONNETZEROIMPROVING LIVES FOR
GENERATIONS TO COME WITHIRRESISTIBLE SUPERIORITY
THAT IS SUSTAINABLE

BY 2040

CLIMATE

WASTE

WATER

NATUREPEOPLE
IMPROVING LIVELIHOODS ACROSS OUR OPERATIONS,SUPPLY CHAIN, AND COMMUNITIES WE SERVEP&G CLIMATE GOALS& AMBITIONS FOR
SUPPLY CHAIN
EMISSIONSLEARN MORE AT: P&G CLIMATE ACTION TRANSITION PLAN
3We recognize that addressing concerns
on climate change requires us to set boldgoals and develop credible science-based
action plans and programs to meet them.
In 2021, we announced our ambition toreach Net Zero GHG emissions across oursupply chain and operations by 2040.
We know we may not have all the answers
today, but we will not let uncertainty holdus back. Our net zero ambition reaffirms
our priority to reduce emissions now,with the current tools available, while
innovating toward continued reductions in
the future.

P&G has also set science-based
intermediate targets for 2030 to makemeaningful progress this decade. This
includes a 40% reduction in supply
chain emissions* per unit of production,
vs a 2020 baseline. This means that
REDUCTION IN
working together with you, our supply
SUPPLY CHAIN
EMISSIONS* PER UNIT chain partners, will play a critical role in
OF PRODUCTION
achieving our goals.

40%

BY 2030
VS 2020* refers to purchased goods and services

CALL TO ACTION
WHAT WE NEED FROM YOU
In the last two years, we engaged with more than 50 of our supply chain partners to talkabout Climate and Greenhouse Gas emissions reduction. We are learning together and wehave identified recurring challenges and opportunities across our supply base. We are now
coming back to you to clarify our key expectations and provide a call to action.

STEP A

STEP B

STEP CDATACOLLECTIONSHAREYOUR PLAN

LEVERAGE
P&G SUPPORTPage 5

Page 7

Page 8

Measure youremissions!

4

Set your goals
and share yourGHG emissions
reduction plan.

and help through theP&G Climate
Unlock Program!

YOUR CARBON FOOTPRINTDATA COLLECTION
Making progress on our Net Zero emissions ambitions starts with establishing a firm foundationof knowledge and data. We therefore need your support to provide carbon footprint data permaterial purchased by P&G. Primary data – based on your materials, feedstocks and processes –provides a much more robust basis for us to make decisions together.

OUR KEY EXPECTATIONSFROM YOUACTIONS WE NEEDYOU TO TAKE

What we expect from you:

How you can get ready, get ahead orcontinue progress:

QUALITY DATA:High quality & specificity of data
– utilizing primary data where
possible and secondary data where
necessary to help guide decisions

GRANULARITY:

Emissions data splits across Scope 1,2 and 3 per material or service

TRANSPARENCY:

Open sharing of data and process
details (if necessary), dialogue on
opportunities and recognition thatwhile we may not be perfect today,
understanding the problem is the key
to unlocking solutions

5MEASURE YOUR SCOPE 1,2
AND 3 EMISSIONS per materialpurchased by P&G. If you need support,
external consultants can help

ENROLL & ENGAGE YOURVALUE-CHAIN PARTNERS
AND SUPPLIERS to ensure theyshare the same sense of urgency andare committed to working with you toincrease your ability to provide quality
primary data

GET FAMILIAR WITH THE
WBCSD PARTNERSHIPPROGRAM FOR CARBON
TRANSPARENCY supported by P&G
See more on next page.

ARE YOU NEW TO
CLIMATE CHALLENGE
AND JARGON?
Consult our Climate
Resource Guide(page 8)

YOUR CARBON FOOTPRINTDATA COLLECTION - HOW?
We know that data collection and reporting per material purchased by P&G can feel time
consuming. We aim to make it as easy and simple as possible by developing integrated reporting
tools and systems that use standardized methodologies. This allows you to spend less time onreporting and focus more on taking action.

WE ARE DEVELOPING:

Greenchain

By 2025 we aim to implement P&G Greenchain Climate Data Platform to enableconsistent reporting via a fully automated system. Work is well underway and wewill be piloting real life cases with some of our External Business Partners in 2023.
Be on the look out for more news soon!

GREENCHAIN FOLLOWS THE
APPROACH BY WBCSD –PARTNERSHIP FOR CARBON
TRANSPARENCY

Greenchain

CURRENT:
Manual & Resource
Intense Data
collection

Greenchain

PHASE 1:2023 - 2024

PHASE 2:2024-2025

Pilot of P&G
Data Collection
Platform

Fully AutomatedP&G Greenchain
Data Platform
online for suppliers

The Partnership for Carbon Transparency (PACT), a WBCSD-hosted program, is developing reporting
methodology and technological standards needed for product-level emission accounting and exchange along
the supply-chain. P&G is actively supporting this initiative. You can learn more about it here:
https://www.carbon-transparency.com/

WE ASK YOU TO CONTINUEENGAGING WITH

6

Ecovadis is P&G’s platform of choiceproviding ESG ratings, including
GHG and Carbon sections

CALL TO ACTION
You should create an account in
Ecovadis and ensure completion ofthe carbon module information

WHAT IS THEDIFFERENCE
BETWEEN P&G
GREENCHAIN ANDECOVADIS?
• In P&G Greenchain, youwill enter aggregatedcarbon footprint permaterial purchased byP&G. This will enable P&G
to set baselines, report,and optimize.
• In Ecovadis, you willenter qualitative andquantitative information
about your GHG
reduction plan. This
enables discussions at acorporate level.

YOUR CARBON FOOTPRINT
GREENHOUSE GAS EMISSIONSREDUCTION PLAN
As we progress our efforts to drive towards Net Zero emissions goals, the challenge now is to have yourGHG reduction plan per material purchased by P&G. We want to partner with you to understand where
you are today and your future emission reduction plans. We also want to identify how we can work
together on future solutions that will enable irresistible superiority which is sustainable!

OUR KEY EXPECTATIONSFROM YOU

12

INTEGRATE YOUR GHG PLAN
INTO YOUR BUSINESS STRATEGY
and work with us to identify JOINTVALUE CREATION opportunities
Implement your OWN DIRECT
INTERVENTIONS to reduce GHG*

3

TAKE ACCOUNTABILITY TO LEAD

4Continue to deliver against

ACTIONS WE NEEDYOU TO TAKE FOR GHGREDUCTION

1
2and develop your own plans – byengaging, building your plans andplaying your part
P&G’S Responsible Sourcing
Expectations of External BusinessPartners, taking into account any

impacts beyond GHG emissions

7*Offset credits are not the preferred option and expectations should evolve overtime

SET AND SHARE YOUR GHG GOALS AND
REDUCTION PLANS. We don’t expect a

specific format but you should begin a
dialogue with your P&G partners
COLLABORATE WITH P&G R&D LCA

scientists and your P&G Purchases
partner on solutions and innovation
opportunitiesHELP NEEDEDFOR YOUR GHG
REDUCTION PLAN?
See our P&G ClimateUnlock program page 8

P&G CLIMATE UNLOCKPROGRAM FOR SUPPLIERS
We understand that the only way we can succeed in achieving our Net Zero Emission Goals is byworking together and supporting each other. P&G is offering a range of resources, which we hope areuseful to you, with our P&G Climate Unlock Program (CUP) for suppliers. These 3 pillars are the start ofour journey - and will be enriched over time - it is just the beginning!

123

CLIMATE & CARBON
FOOTPRINTFUNDAMENTALSTRANSITION TO
RENEWABLE ENERGYMANUFACTURING
DECARBONIZATIONThis Supplier accelerator
program provides trainings
and support to enable you toachieve a successful entry inrenewable energy market.

This program supports
you in building your GHG
reduction plan, providing
access to best practices,expert advice and support.

We developed this resource
guide to provide fundamental
definitions on LCA, Climate
and GHG. It includes
guidelines and importantresources to start your
Climate journey!

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8

For further information or to provide feedback on
this document please contact us at:
citizenship.im.1@pg.com

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