SEPTEMBER 2021

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AMBITION 2040 CTAP

INTRODUCTION

CLIMATE TRANSITIONACTION PLAN
P&G’s purpose begins with improving the lives of
the world’s consumers, now and for generations tocome. We do that by providing products andservices of superior quality and value while also
taking action on important issues to the company,
our consumers, and society. Today, the climate crisis
affects every home and family, everywhere in theworld. The latest science has made it clear thaturgent, decisive action must be taken to avoid theworst impacts of climate change. This means that allof us, including businesses and governments, needto step up and drastically reduce our collective
greenhouse gas (GHG) emissions. We invite you tolearn more about our company actions and progress
through our climate transition action plan.

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AMBITION 2040 CTAP

INTRODUCTION

P&G’s journey on climate began over a decade ago. In 2007, P&G
established our first goal to reduce GHG emissions from our manufacturing
facilities. Since then, we have expanded and accelerated our efforts toaddress GHG emissions across the life cycle of our products and operations.
We were one of the first companies to have a validated science-basedtarget and we have maintained a focus on how product innovation canhelp consumers reduce GHG emissions during the use of our products.
This focus can help us better serve the majority of consumers globally whowant the brands they buy to help them live a more environmentallyconscious lifestyle.
The climate crisis today requires bold goals supported by credible sciencebased actions. P&G’s ambition is to reach net zero GHG emissions acrossour supply chain and operations by 2040, with science-based targets for2030 to make meaningful progress this decade. We may not have all theanswers, but we will not let uncertainty hold us back. Our net zero ambition
reaffirms our priorities to reduce emissions now, with the tools available to
us today, while innovating toward continued reductions in the future. Our
new Climate Transition Action Plan (CTAP) outlines our comprehensive
efforts to accelerate climate action throughout our value chain.
P&G’s science-based approach to achieve net zero GHG emissions willprioritize cutting most of our emissions across our operations and supply
chain, from raw material to retailer distribution. For residual emissions thatcannot be eliminated, we will use natural or technical solutions that remove
and store carbon. Our ambition is simple, but the world of emissions
accounting, standards, and targets is quite complex.

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AMBITION 2040 CTAP*

*Study conducted by P&G hosted on Toluna, surveying
5,371 consumers across US, UK, France, Germany, Canada,
February, 2021.

INTRODUCTION

The scope of our 2040 net zero GHG emissions ambition aligns with therecommendations of the Climate Action 100+ Net Zero Benchmark1 andour overall plan covers the entire life cycle emissions of our products andpackaging. As such, we are using this CTAP to share the full scope of ourclimate efforts across our supply chain, operations, consumer use of our
products, and product end of life.
This CTAP shares key objectives and targets as well as the strategies andactions we are taking to achieve them. We also describe where there is stillwork to be done and some of the challenges we anticipate. While we began
our GHG emissions reduction efforts over a decade ago, we are at the startof our net zero journey. As we advance, we will be transparent in sharing
both our successes and setbacks. We will look to partner with our suppliers,
peers, civil society, and experts to not only refine our road map to net zero,
but also understand how we can support the broader systemic changes
that will be needed to realize the goal of limiting temperature increase to
no more than 1.5°C.
We know the task ahead is urgent, difficult, and much bigger than P&G
alone, but we’re ready to take on the challenge. We welcome you to follow
and work with us on our journey to net zero. For more information andongoing updates about our commitments and progress, please see ourESG Investor Portal. Together, we can create a future that protects ourplanet, our common home, for generations to come.

1. Climate Action 100+ is an investor-led initiative with more than 570 investors who are engaging corporations to takeaction on climate change via the Climate Action 100+ Net Zero Benchmark.

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AMBITION 2040 CTAP

P&G’S AMBITION TO NET ZERO
Including 2030 science-based targets for Scope 1, 2,
and 3 emissions to accelerate progress.

ACHIEVING INITIAL GOALSPath toNet Zeroby 2040

Reduced operations
emissions 52%*

Doubled use ofrecycled plastic resin

Reduced truck miles
25% per unit ofproduction

100% certified wood
pulp in P&G brands

Avoided 200,000+ tonsof plastic throughpackage redesign

100% certified palm
ingredients in P&G
brands15 million tons of CO2
reduced throughconsumer cold water
washing

ACCELERATING ACTION
OPERATIONS — Carbon Neutral for the Decade
Reduce operations emissions, balanceremaining emissions via natural climate
solutionsPurchase 100% renewable electricity
in global operations by 2030, already at 97%
MATERIALS & PACKAGING
Reduce supply chain emissions by 40%
per unit of production† ††Reduce virgin petroleum plastic inpackaging 50%

SCALING SOLUTIONS
Scale renewable thermal energy
innovation

OUR AMBITION

Scale renewable carbon, recycled
carbon, and captured carbon
technologies
Grow rail and shipping while
increasing renewable fuels andenergy sources for transportation

TRANSPORTATIONACROSS OPERATIONS AND SUPPLYCHAIN EMISSIONS — FROM RAW
MATERIAL TO RETAILERReduce finished product freight
emissions intensity by 50%†

Cut most of our emissions
Balance any remaining emissions
that cannot be eliminated withnatural or technical solutions thatremove and store carbon*Against a 2010 baseline.

ADDITIONAL PROGRESS VIAOUR CLIMATE TRANSITIONACTION PLAN

†Against a 2020 baseline.
††Inclusive of priority categories that account for over 90% of P&G’s supply chain emissions.

Reducing Consumer Use ThroughProduct Innovation and Education
Avoid 30 million tons of CO2 via cold
water washing by 2030

Reducing Product End of Life
100% recycled or reusable packaging by 2030
Enable more recycling in homes and communities
Pilot and scale materials from recycled carbon

CLIMATE TRANSITION ACTION PLAN AT A GLANCE
P&G is taking climate action across all facets of its GHG emissions.

OPERATIONSTRANSPORTATIONCONSUMER USE

MATERIALS &PACKAGING

Reduce supply chain
emissions 40% per unit ofproduction* by 2030
Reduce virgin petroleum
plastic in packaging 50%
by 2030
Pilot and scale materials
from renewable carbon,
recycled carbon, and captured
carbon technologies

PRODUCTEND OF LIFE

Reduce absolute emissions
as much as possible via energy
efficiency and renewable energy

Reduce upstream finishedproduct freight emissions
intensity 50% by 2030

Purchase 100% renewableelectricity by 2030, already at 97%

Grow rail and shipping while
increasing renewable fuels
and energy sources fortransportation

Pilot and scale renewable
thermal energy solutions
Advance natural climate
solutions to balance any
emissions we cannot
eliminate this decade*Inclusive of priority categories that account for over 90% of P&G’s supply chain emissions.

Avoid 30 million tons ofcarbon emissions via cold
water washing by 2030
Create home of the future
via 50L Home Coalition to
reduce hot water 10 times
less than today in morewater-efficient homes

100% recycled or reusable
packaging by 2030
Enable more recycling inhomes and communities
Create greater supply ofrecycled materials that can
reduce use of virgin fossil
feedstocks

P&G CARBON FOOTPRINTP&G annually publishes detailed information on our Scope 1, 2, and 3
emissions following the guidelines of the World Resources Institute (WRI)
and the World Business Council for Sustainable Development (WBCSD)
GHG Protocol Corporate Accounting Standard. P&G obtains 3rd party
assurance of our Scope 1, 2, and portions of our Scope 3 inventory.2 Thegraphic below summarizes the major categories of GHG emissions for P&G:

Materials & Packaging(Supply Chain)
16,760,000 (8.5%)
Operations
2,619,000 (1.3%)
Transportation
3,900,0003 (2.0%)
Consumer Use
164,000,000 (83.3%)
End of Life
9,382,000 (4.7%)
2. P&G obtains 3rd party assurance of our Scope 1 and Scope 2 GHG emissions and for our Scope 3 Business Travel(employee airline travel miles).
3. Transportation data represents inbound shipments of raw materials and outbound shipments of finished products.

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AMBITION 2040 CTAP

P&G CARBON FOOTPRINT

WRI/WBCSD GHG STANDARD

WRI/WBCSD GHG
ACCOUNTING STANDARDSGENERALLY DEFINE SCOPES
1, 2, AND 3 AS FOLLOWS:SCOPE 1: Direct GHG
emissions from sources
owned or controlled by acompany.
SCOPE 2: GHG emissions
from the generation ofpurchased electricity andsteam.
SCOPE 3: All indirectemissions (not included in
Scope 2) that occur in thevalue chain of the company,
including upstream anddownstream emissions.

Image from WRI/WBCSD Corporate Value Chain Accounting Guidelines.

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AMBITION 2040 CTAP

EMISSIONS COVERED BY OUR NET ZERO AMBITION AND
OUR CLIMATE TRANSITION ACTION PLAN
MEASURING OURSCOPE 3 EMISSIONS
Scope 3 emissions are, by definition,
outside the direct control of a company
and can be difficult to measure as they
can occur across the value chain andinclude consumer use of products. For
some categories of Scope 3, such as
distribution and business travel, we havebeen able to work with our supply chain
partners to get direct data on GHG
emissions associated with distribution of
P&G products and employee travel airline
miles. However, for many other categories
we rely upon the science of life cycle
assessment (LCA) to provide estimates of
GHG emissions based on widely used life
cycle data inventories, supplier data whenavailable, P&G data on purchase volumes,
production volumes, and consumer
practices data. This is a common
approach used in industry and academia
and reflects that in many cases, Scope 3
emissions are estimates with varying
degrees of uncertainty.
As we advance our efforts to drive
towards net zero emissions, we will beworking with our supply chain partners to
begin to collect more primary data on
supply chain emissions which will provide
an opportunity to recognize those
suppliers who have been able to drive
reductions in their own Scope 1, 2, and 3
emissions
Estimates derived from life cycle
assessment (LCA) data will continue toplay a role in our ability to measure andtrack Scope 3 emissions.

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P&G CARBON FOOTPRINT

Explaining Net Zero Scope & Product Use Emissions
The scope of our net zero ambition aligns with recommendations from the
Climate Action 100+ Net Zero Benchmark, an investor-led initiative to assess
the world's largest companies on their progress toward net zero. In theirbenchmark for the consumer goods and services sector, Scope 3 emissions
from purchased goods and services are the recommended scope. (Climate
Action 100+ Net Zero Company Benchmark PDF, page 5.)
According to the WRI/WBCSD Greenhouse Gas Protocol, there are two
types of product emissions: 1) direct use-phase emissions – products that
directly consume energy and 2) indirect use-phase emissions – productsthat indirectly consume energy during use, including consumer products.
The GHG protocol states the minimum scope when developing a GHG
inventory is direct consumer use phase emissions, but it encourages
companies to go beyond the minimum scope when indirect use issignificant. Indirect consumer use is over 80% of our total emissions, so P&G
continues to make it a major focus area for reducing carbon emissions.

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AMBITION 2040 CTAP

MATERIALS & PACKAGING

11AMBITION 2040 CTAP

MATERIALS & PACKAGING

P&G’s ambition is to achieve net zero supply chain emissions by2040. As a step on that journey, we have established a target toachieve a 40% reduction4 in supply chain emissions per unit ofproduction by 2030 for the priority categories that account for over
90% of our supply chain emissions – a target submitted to the
Science-Based Targets Initiative (SBTi).
The priority categories that account for over 90% of our supply chain
emissions include Laundry Detergents, Fabric Enhancers, Shampoo,
Conditioner, Body Wash, and Baby Diapers. While these categories arein scope for SBTi goal tracking and reporting, all categories companywide will be activating plans to reduce emissions in pursuit of net zero.

40%

REDUCTION IN SUPPLY CHAIN
EMISSIONS PER UNIT OF
PRODUCTION BY 2030

4, From a 2020 baseline.

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MATERIALS & PACKAGING

P&G has been a leader in materials innovationand further innovation will be a key enabler of
reducing supply chain emissions.

Increasing material massefficiency – using less material todeliver the same job to be done

The specific strategies we plan to pursue todrive progress against our goals and ambition
include:Using bio-based materials

Using recycled carbon(e.g., carbon derived from wastematerials or the atmosphere)
Developing new materials andtechnologies that reduce GHG
emissions
Partnering with suppliers to
explore renewable energy andcarbon-efficient manufacturing
processes and understanding
potential applications of carbon
capture and storage to reduce
supply chain emissions

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MATERIALS & PACKAGING

While it will take time for each of our categories to build out road maps tonet zero supply chain emissions, innovation to enable that transition isalready well under way. Recent examples include:
Tide Ingredients Made from Captured CO2
Our Tide brand is working with Twelve, a Silicon Valley start-up, to explore
their carbon transformation technology to incorporate ingredients madefrom captured CO2 into the manufacturing of Tide. Twelve’s technology
converts captured CO2 emissions into chemicals using just water andrenewable energy as inputs – creating a potential fossil-free pathway for
ingredient sourcing.
Award-Winning Green Chemistry
P&G scientists won the 2020 American Chemical Society (ACS) Award for
Affordable Green Chemistry for inventing a technology that converts lactic
acid into bio-based acrylic acid – creating a pathway for a range of everyday
products to be made from annually renewable crops. P&G has exclusively
licensed the technology to Cargill to further develop and commercialize sothat it can be used in a range of applications, including super-absorbent
polymers in diapers. Cargill estimates that using annually-renewable crops
can enable development of renewable solutions that have less than half the
GHG footprint versus petroleum-based equivalents.

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AMBITION 2040 CTAPBEFORE PURIFICATIONINNOVATION FOR SYSTEMS TRANSFORMATION

Reducing Climate Impact Through Systemic Change

Purifying Recovered Plastics – Recycling More Carbon

HolyGrail – A Digital Solution For Sustainability Challenges

P&G scientists invented a technology that can remove
contaminants and colors from used polyolefin plastic. Aspart of a multi-faceted approach, the technology can play a
key role in the plastics recycling industry. This innovation
enables P&G and companies around the world to tap into
sources of recycled plastics that deliver nearly identical
performance and properties as virgin materials in a broad
range of applications. We have licensed this technology to
be scaled so it can become an industry-wide solution.

P&G believes in the power of digital watermarks to step-change
recycling for the better. In 2016, we partnered with The Ellen
MacArthur Foundation to establish HolyGrail – a collaborative
effort designed to solve one of the largest obstacles facing
plastic recycling: inefficient sorting at recycling facilities.
Digital watermarks may only be the size of a postage stamp, butthey carry a wide range of attributes such as packaging type,material, and usage. P&G will support the test market industrial
trials with more than 100 of our products in Europe. These items
carry a digital watermark and as such, will provide theopportunity to demonstrate that digital watermarks havepotential to be leveraged to improve waste sorting and toachieve more efficient recycling. We continue to work as
members of the HolyGrail initiative to advance this project andhighly appreciate the support of the Alliance to End Plastic
Waste in enabling the vision of HolyGrail 2.0.
Read more at digitalwatermarks.eu about HolyGrail 2.0 and how
we’re partnering with organizations including AIM – European
Brands Association and the Alliance to End Plastic Waste to use
technology to enable a more circular economy.

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AMBITION 2040 CTAP

AFTER PURIFICATIONINVESTING IN INNOVATION

P&G established a new Product Supply Innovation Center (PSIC) in
Kronberg, Germany to leverage P&G innovation and serve as the hub forcollaboration with a network of local suppliers, tech companies, R&D
institutions, and top universities, developing solutions that are global,
scalable, and modular to decarbonize its supply chain.
With the new PSIC, we aim to accelerate innovation, transformation, andimplementation of intelligent supply chain operations with new solutions
from one of the world’s leading markets for sustainability innovation andindustry. The market also offers a rich ecosystem for future partnerships
with research institutes, businesses, universities, and other thought-leading
stakeholders in the Rhine-Main region. Concepts and learning from P&G’s
new PSIC will make full use of the disruptive breakthroughs in cyberphysical systems, internet of things connectivity, and ubiquitous
intelligence across materials, assets, and processes. Innovations developedin the PSIC and its ecosystem will be disseminated globally for P&G’s 200
sites to inspire and guide sustainable progress in the entire FMCG industry.
P&G is investing significantly in talent and facilities as well as learning labs
encompassing about 50 employees with diverse skills in the areas ofsustainability, manufacturing intelligence, and supply chain.

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MATERIALS & PACKAGING

Wood Pulp

Palm OilThe wood pulp used in our paper-based products is 100% third
party certified to globally recognized forestry management
standards. These standards help ensure that for every tree
harvested, at least one is regrown. As these new trees grow,they sequester CO2 from the atmosphere and convert it tobiomass. Well-managed forests can maintain and enhancecarbon sinks, especially in a changing climate where an
increase in forest fires, insect disturbances, and permanent
deforestation can cause forests to become carbon emitters.
Indicator: Forest carbon emissions and removals (nrcan.gc.ca).

Surfactants (cleansing ingredients) are important to a rangeof our fabric and beauty care products. Palm oil and palm
kernel oil are used to manufacture some surfactants.
Ensuring responsible sourcing of palm-derived materials is
not only an obligation of our company but will also serve to
reduce GHG emissions. Today, P&G brands use 100%Roundtable for Sustainable Palm Oil (RSPO)5 certified
palm-derived materials and we estimate that our use of
RSPO-certified palm-derived materials has reduced GHG by
about 30% based on a life cycle assessment study (Schmidt
J and De Rosa M, 2019). Comparative Life Cycle Assessmentof RSPO-certified and Noncertified Palm Oil.

P&G is partnering with Forest Stewardship Council (FSC) US
and FSC Canada to measure the forest carbon impacts of FSC
forest certification. Initial research by Preferred By Nature andothers indicate FSC certification positively impacts forest
carbon. We will continue to monitor relevant developments on
carbon sequestration of forests and accounting guidelines forforest supply chain emissions. While supply chain emissions
from our wood pulp supply chain represent a small portion of
our Scope 3 emissions, ensuring responsible sourcing of wood
pulp remains a priority and we will continue to transparently
communicate our progress via our ESG Investor Portal and ourannual P&G Citizenship Report.

5. RSPO is the Roundtable for Sustainable Palm Oil, which maintains standards and certification
systems for sustainable sourcing of palm oil.

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Overall, we would estimate that palm-derived materials
currently contribute ~ 10% of our overall supply chain
emissions. Responsible sourcing of palm-derived materials
remains a priority and we will continue to transparently
communicate our progress via our ESG Investor Portal andour annual P&G Citizenship Report.

ELIMINATING DEFORESTATIONIN OUR SUPPLY CHAINS
Ensuring the health of the world’s
forests will play a critical role in
reducing GHG emissions. P&G uses
two commodities, palm oil and wood
pulp, that have potential
deforestation risks in their supply
chain. P&G aims to eliminate
deforestation and forest degradationin our supply chains and has
responsible sourcing programs inplace for both palm oil and wood
pulp. Additional details on our
responsible sourcing programs canbe found via:

• P&G ESG Investor Portal• P&G Forestry Practices Report• P&G Forest Practices Report
Supplement

OPERATIONS

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AMBITION 2040 CTAP

OPERATIONS

P&G’s ambition is to achieve net zero operational emissions
by 2040. As an important step on that journey, we haveestablished a target to achieve a 50% reduction6 from ouroperational emissions by 2030 – a target validated by the
Science-Based Targets Initiative (SBTi).
From 2010 to 2020 we have reduced absolute emissions acrossour global operations 52% through energy efficiency andrenewable electricity, while still growing our business. As wecontinue to advance progress, our objective will be to reduce
emissions as much as possible.

In 2021, the United States Environmental
Protection Agency recognized P&G as #5 on its
National Top 100 list of green power users and#2 on its Top 30 list for on-site renewable power
generation nationwide, making us top-rated in
the consumer products industry.

Our past efforts have established a strong foundation on whichto accelerate reductions in the GHG emissions from ouroperations. Most recently we have delivered the following results:

6. From a 2010 baseline.
7. As of June 30, 2020.
8. As of June 30, 2021.

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AMBITION 2040 CTAP

Tyler Bluff Wind Farm

OPERATIONS

As we advance our efforts we will continue to focus on thefollowing key strategies:
Energy Efficiency
Over the last decade we have maintained a strategic focus
on improving energy efficiency. Since 2010, we have
improved energy efficiency per unit of production by 19%,
which has also enabled hundreds of millions of dollars incost savings and ongoing improvements. We will continue
to focus on energy efficiency as a key strategy to drive
further reductions in GHG emissions.

THE POWER OF PARTNERSHIPS
Partnerships and collaboration have been
and will continue to be a key part of ourstrategy to drive progress on our net zero
GHG emission ambition. Examples include:
Renewable Energy Buyers AllianceP&G partnered with WWF and several othercompanies to help form the Renewable
Energy Buyers Alliance (REBA). Today, REBA
is a membership association for large scaleenergy buyers seeking to procure renewableenergy across the United States. REBA has
played a key role in helping unlock new
renewable energy opportunities for P&G andother REBA members.

Renewable Electricity
P&G has made significant progress toward our 100%
renewable electricity goal by purchasing 97% renewableelectricity globally as of June 30, 2021. We are helping bringnew renewable electricity projects online through longterm partnerships that will result in over 500MW of newclean energy, enough electricity to power 125,000 US homes
every year. While the purchase of unbundled renewableenergy certificates (RECs) has been and will remain part ofour renewable energy portfolio, our primary focus willcontinue to be development of new renewable energy
projects that bring long-term, zero emissions renewableenergy capacity on-line.

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AMBITION 2040 CTAP

Renewable Thermal Collaborative
P&G partnered with WWF, C2ES, 45 othercompanies, and local governments to create
the Renewable Thermal Collaborative (RTC).
This coalition is committed to scaling
renewable heating and cooling at theirfacilities to drastically cut carbon emissions.
We see collaborative efforts like RTC as
critical to helping enable development of
renewable thermal sources that are
sustainable, scalable, and cost-competitive.

BRINGING OUR NET ZEROAMBITION TO LIFE

OPERATIONS

Renewable Thermal Energy
While we are well on our way towards our goal of purchasing 100%
renewable electricity, our biggest challenge going forward will befinding viable solutions for renewable thermal energy. Today, we
primarily use natural gas to generate heat in manufacturing
operations that have a significant thermal energy need. Natural
gas has a better GHG emissions profile than other nonrenewablefuels but we recognize the need to reduce, and ultimately
minimize, our natural gas GHG emissions. The journey to eliminate
GHG emissions from our use of natural gas will be challenging,
and we know that it will require a transition to renewable fuels andother sources of renewable thermal energy that are not broadly
available at scale today. We have made significant progress via abiomass powered combined heat and power (CHP) facility colocated at our Albany, GA plant that provides 100% of the plant’s
steam requirement. This renewable energy project was enabled byfactors unique to that location, including the availability ofadequate quantities of responsibly sourced biomass. We willcontinue to evaluate biomass as a possible solution for thermalenergy needs, recognizing it may not be feasible for otherlocations, and will also be evaluating a range of potential
solutions such as:
Heat optimization
Electrification including use of heat pumps
Geothermal
Renewable thermal (e.g., renewable naturalgas, renewable hydrogen)
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AMBITION 2040 CTAP

In addition to items listed above, we intend to explore therole that carbon capture, utilization, and storage, can play to
reduce emissions in circumstances where GHG generation is
not avoidable. It is too soon for us to ascertain what extent
carbon capture may play but we believe by assessing a broad
portfolio of technologies, we will enable a broader solution
set that can be optimized across our diverse manufacturinglocations and processes.
P&G has a proven track record of delivering our targets
through company leadership support of the investments
and resources needed to deliver our goals. Our seniorleadership has aligned to our net zero ambition and ourintent is to place the necessary resources in place to drive
progress. As we advance our efforts we will be integrating
relevant costs into our financial analysis and forecasting tools
so our leadership can continue to make informed decisions.

In 2021, P&G identified multiple
manufacturing locations that would serveas our first “net zero” pilots. Partnering withindustry experts, we have gone through asystematic assessment of “what would need
to be true” to enable net zero emissions atthese sites. As these roadmaps are finalized
and implemented, the pragmatic learnings
will be scaled and shared across our global
network of manufacturing sites to further
reduce GHG emissions. By driving focused
pilot activities early in our journey, we will
derive key learnings that should enableacceleration of future efforts.

To learn more about P&G’s sustainability progress, visit: Mapping our impact | Procter & Gamble (pg.com)

OPERATIONS

P&G’S GLOBAL JOURNEY TO
100% RENEWABLE ELECTRICITY

As part of P&G’s ambition to net zero by 2040, we are committed to purchasing 100% renewableelectricity by 2030 to help pace our progress. Our sites within the US, Canada, China, and Europe are justa few of those already using 100% renewable electricity today, and we have accelerated progress to 97%
purchased renewable electricity globally. We will continue to transition to reach 100% renewableelectricity – across all of our 140+ sites in nearly 40 countries.

ALBANY, GEORGIAPORT QASIM, PAKISTANThis co-located combined
heat and power biomass
facility uses locally sourced
renewable fuels to provide
100% of the Bounty andCharmin steam
requirements at this site.

This Pantene and Head &Shoulders manufacturing
plant purchases 100%
renewable electricity.

SHIGA, JAPANThis SK-II manufacturing plantpurchases 100% renewableelectricity.

TYLER BLUFF, TEXAS
Our wind farm offsets 100% of
the electricity used by P&G’s
Fabric and Home Care facilities
across the US and Canada.

TAICANG, CHINA
Designed around the conceptof a Chinese water garden,
this site uses 100% windelectricity to produce Beautyand Fabric Care products.

IRAPUATO, MEXICOThe Gillette Milenio plant uses
100% wind electricity to makeblades and razors.

HYDERABAD, INDIAEUSKIRCHEN, GERMANY
Our Baby Care facility uses
100% renewable electricity to
produce Pampers for multiple
countries across Europe.

This manufacturing plantpurchases 100% renewableelectricity.
Sites Using Renewable Electricity
Sites Using Conventional Electricity
Sites Using Partial Renewable Electricity

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OPERATIONS

Important Role of Natural Climate Solutions
Recent reports from the UN Intergovernmental Panel on Climate
Change have reinforced the urgency with which society needs toreduce GHG emissions to the atmosphere. We recognize our top
priority is to reduce absolute GHG emissions and we haveaccelerated our efforts to do so – delivering a 52% reduction since2010. We continue to evaluate and invest in new solutions that will
drive reductions even further. In the interim, we have a powerfulsolution today that can reduce CO2 in the atmosphere – nature.
Research has shown that natural climate solutions (NCS) candeliver up to one-third of the GHG emissions reductions needed
globally this decade and deliver meaningful co-benefits for people
and nature.
P&G Operations Carbon Neutral for the Decade
In 2020, P&G committed to advancing natural climate solutions
that will balance any remaining Scope 1 and 2 emissions wecannot eliminate through 2030 – effectively making ourmanufacturing operations carbon neutral for the decade. These
include new projects that help protect and restore forests andother ecosystems essential to the people and wildlife that callthem home.
Our commitment to natural climate solutions recognizes thepower of nature to deliver meaningful carbon, community, andecosystem benefits now.

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TRANSPORTATION

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AMBITION 2040 CTAP

TRANSPORTATION

P&G’s ambition is to achieve net zero emissions by 2040
for inbound transportation of raw materials and outboundtransportation of finished products. As an important stepon that journey, we have established a goal to reduce our
upstream finished product freight emissions intensity
50% by 2030, versus a 2020 baseline – a target submitted to
the Science Based Targets Initiative.
P&G has been focused on optimizing transportation for many
years and in 2010 set a goal to improve truck transportation
kilometers per unit of volume 20% by 2020. We exceeded thisgoal, delivering and maintaining efficiency improvement of morethan 25% since 2016.
P&G also adopted the global industry leading greenhousegas calculation methodology, called GLEC, accounting forthe emissions across all life cycle activities (Well-To-Wheel)
for any type of transport mode.

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PARTNERING TO DRIVE SCALE
It will take innovative partnerships andcollaboration with carriers, retailers, and thebroader transportation industry to findunique ways to deliver our products withfewer miles.
SMARTBox
Before products such as toothbrushes,
razors, and deodorants reach the retailshelves, they are repackaged several times
in different transport boxes/containers on
their way to the consumer. This is asignificant source of waste. Next, thedifference in dimensions of these boxes/
containers do not allow optimized
stackability, resulting in a less-than-optimal
truck fill upon transportation.
P&G is partnering with GS1 Germany,industry, and trade to develop and test thereusable GS1 SMARTBox, an isomodular,
exchangeable box that represents asustainable solution for all parties involved.
The GS1 SMARTBox offers many advantages:
the exchange and cleaning of the boxes isdone by a pool partner, industry shares thecosts, the trucks are optimally loaded andutilized, and unnecessary packaging
material is reduced.

TRANSPORTATION

We will utilize a range of strategies to advance progress
towards our 2030 goal, and our 2040 net zero ambition. We
will take a comprehensive approach, including the following:• Increased intermodal (rail and ship) utilization• Vehicle and container fill rate improvements• Utilization of alternative powered vehicles, including fully
electric or alternate fuels• Supply network optimization to reduce our totaltransportation impacts• Supply chain analytics to identify and drive transportation
efficiency improvements• Industry partnerships to support development of innovative
solutions and drive their adoption

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P&G Received a 2020 SmartWay
Excellence Award

TRANSPORTATION
Increase Maximum Allowed Payload

Partnership with Key Retailers

Another way to reduce the number of trips needed to transport
products is by increasing the maximum allowed payload. P&G joined
the Safer Hauling & Infrastructure Protection coalition, which aim toincrease the maximum truck weight on the US Interstate Highways
from 80,000 lbs to 91,000 lbs. The increase in weight with theaddition of a sixth axle (via the same truck dimension), reduces fuelconsumption, CO2, NOx, and congestion costs. Furthermore, theMinnesota Department of Transportation found that the addition ofa sixth axle created a 37% reduction in road wear.

P&G partnered with Carrefour in Spain, installing a
megatruck (52 pallet capacity) between Mataro andMadrid. Apart from the more efficient payload, P&G
and Carrefour designed a roundtrip supply chain,significantly reducing the empty mileage, improving
greenhouse gas efficiency by 16%.

Collaborate with Sustainable Carriers
P&G was recognized with a 2020 EPA SmartWay Excellence Award
as one of the top 10 large shippers in the US. Through the SmartWay
Excellence Award program, the US Environmental Protection
Agency (EPA) recognizes leading shippers, logistics companies, andfreight carriers that are optimizing the environmental performanceand efficiency of their freight operations, while serving as rolemodels for other businesses to follow. P&G was awarded thisrecognition because over 99% of our carriers are SmartWay partners
and over 70% of them are in the top two efficiency classifications
within SmartWay (out of five).

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“Our employees are our secretweapon. Whether your job ismanaging vehicle fill, modeling new
supply chain routes, or developing
innovation for the next generation of
low emissions vehicles – everyone
can be a sustainability champion,
driving fewer miles.”Michelle Eggers
Vice President NA Market
Operations & Global
Logistics Purchases

CONSUMER USE

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CONSUMER USE

Making a Difference through Collective Action*

We are doing more to make a collective impact – partnering with
consumers to reduce GHG emissions from the use phase of
products, creating carbon-efficient homes of the future,
and advocating for policy solutions to decarbonize energy
infrastructure.

*Study conducted by P&G hosted on Toluna,surveying 5,371 consumers across US, UK,
France, Germany, Canada, February, 2021.

Making Sustainability Effortless at Home
We believe we should do everything we can to make it as easy as
possible for our consumers to live sustainably at home, because
we know even small changes at home can make a big difference
for our planet. P&G and its brands will continue to provide
consumers with tools and information on how small actions athome can make a world of difference for the planet.
Procter & Gamble | #ItsOurHome - Small Actions at Home Can
Make A World of Difference - YouTube

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*vs. washing dishes at running sink for over
10 minutes per day.

CONSUMER USE

Reducing Emissions from Consumer Use Now
As the energy infrastructure decarbonizes, emissions
associated with the consumer use phase should decreasesignificantly. However, it will take time to decarbonize theenergy infrastructure and we have an opportunity to reduce
emissions now. Helping further reduce household energy
consumption now can accelerate the transition to renewableenergy as it helps lower the overall renewable energy
generation required to cover household needs – speeding thetransition or enabling more renewable energy capacity forother applications.
Reducing 15 Million Tons of Carbon through Cold Water
Washing and Accelerating Impact with an Additional 30
Million Tons by 2030
In the US and Canada alone, people do 25 billion loads oflaundry each year. That’s a lot of laundry, and little actions all
add up.

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P&G has made a collective impact by leveraging
innovation and sustained consumer education to reduce
the largest portion of our carbon footprint – the energy
needed to heat water during product use. In 2010, P&G
brands Tide and Ariel made a commitment to have 70%
of machine loads be low-energy cycle by 2020. We
achieved that goal. Since 2015, the avoided emissions
from US consumers increasing their use of low-energy
laundry cycles have been roughly 15 million metric tonsof carbon dioxide, which is more than five times larger
than P&G’s yearly global operational emissions. Tide andAriel are driving greater use of cold water washing
through new education campaigns. These efforts canhelp avoid an additional 30 million tons of carbon
emissions by 2030 – more than ten times P&G’s yearly
global operations.
Cold water washing enables fabric longevity and helps
clothes last longer, which is important because thetextile industry can represent up to 10% of global GHG
emissions. Cold water washing is better for theenvironment and also saves money on consumers’
energy bills.

CONSUMER USE

Creating the Home of the Future
We are advancing solutions to decarbonize homes with industry
partners via the 50L Home Coalition. The 50L Home Coalition is a
global action-oriented platform that convenes leaders from theprivate, nonprofit, and public sectors to develop and scale viable
technologies that address two of our most pressing global
challenges: water security and climate change. By helping people
reduce and track their use of hot water without trade-offs, theCoalition is bringing to life the low-carbon home of the future thatcan use 10 times less water than most use today – and byextension, less energy to heat that water.

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END OF LIFE

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END OF LIFE
Consistent with our holistic life cycle approach, we will be assessing
opportunities to decrease emissions associated with end of life.
Some of these emissions are associated with biodegradation of our
products and ingredients. Making materials from recycled waste
carbon, reducing materials derived from virgin fossil feedstocks, andimproving mass efficiency are strategies we will explore to help
reduce these emissions.
Driving greater circularity of our packaging at end of life is a priority
for the company. GHG emissions associated with the end of life ofplastic packaging represent a relatively small portion of our end-oflife emissions but our ongoing efforts to increase the recyclability
and recycling rate of packaging can help reduce these emissions by:• Creating a greater supply of recycled materials that can reduceuse of virgin fossil feedstocks• Diverting materials from incineration (in markets where
incineration is relevant)

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END OF LIFE
We have a goal to use 100% recyclable or reusable packing and aresupporting a number of efforts to increase recycling of our
packages. While we highlight a few examples below, more detailed
information on these efforts is available via our ESG Investor Portal.
Film and Flexible Package Recycling
P&G joined The Recycling Partnership and 21 other partners to form
the Film & Flexibles Coalition. Film and flexible packaging often
enable significant light weighting that can drive GHG emissions
reduction across the life cycle but are difficult to recycle with typicalcurbside collection. Members of the Coalition are working together
to advance a three-part plan to advance recycling of film andflexible packaging:
1. Gather data on the impacts of available collection methods
2. Assess the most promising technological interventions and pilot
new interventions
3. Implement national interventions to drive the recycling of film
and flexible packaging

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Piloting Refill and Reuse Models
Head & Shoulders, Pantene, Herbal Essences, and Aussie areworking to enable 200 million European households to recycle,
reduce, and reuse the packaging by launching a refill system fortheir shampoo bottles. The effort introduces a new reusable 100%
aluminum bottle and recyclable refill pouch, made using 60% lessplastic (per mL versus standard brand bottle).

POLICY ADVOCACY
CLIMATE JUSTICE & EQUITYGOVERNANCEREPORTING & TRANSPARENCY
SOURCES OF UNCERTAINTY

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POLICY ADVOCACY

We believe government policy will play an important role inhelping drive needed GHG emissions reductions and the greeningof energy infrastructure. Harmonized, holistic, and science-based
climate policy can provide business the predictability andconsistency needed to help inform investment choices and help
accelerate global progress on emissions reductions.
P&G has publicly advocated for policy actions that serve toadvance the objectives of the Paris Agreement. This includes
supporting efforts and statements such as the White House
Business Act on Climate Change, the We Mean Business Pledge,
Business Backs Low Carbon USA, the Ceres Climate Declaration,and the Paris Pledge for Action. More recently we have joined theBusiness Ambition for 1.5⁰ C and the UN’s Race to Zero Campaign.
P&G is a founding member of the Climate Leadership Council(CLC) which is seeking to develop a bipartisan carbon dividends
approach for the United States that will drive GHG reductionscommensurate with those called for by the Paris Accords andbenefit the vast majority of Americans. We are also members ofAmericans for Climate Dividends which advocates for adoption of
the CLC plan. As the United States is our largest market andcurrently lacks a comprehensive climate policy approach,supporting development of sound climate policy in the UnitedStates is an important priority for the company.

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Our Global Government Relations Organization ensures thatour policy advocacy is consistent with our publicly statedobjectives, goals, and positions. The trade associations ofwhich we are members are aware of our policy positions,
including those related to climate change. In all cases, any
P&G position on a matter of public policy is the prevailingcompany position, irrespective of any trade association
position. We are consistent in the positions we share withexternal stakeholders as well as in our trade association
engagement. We view this as a matter of integrity, and we
act in accordance with our company’s Purpose, Values andPrinciples (PVPs). We have proactively communicated withkey trade associations when we felt their positions on climate
did not align with ours, which in turn resulted in productive
discussions with those associations.
P&G discloses information on direct lobbying andpercentage of our trade association dues that were used
to support lobbying efforts in the United States.

CLIMATE JUSTICE & EQUITY

It is clear the impacts of climate change are not felt equally amongpeople around the globe. Often it is the most vulnerable who aredisproportionately impacted. As we advance our efforts, we will
ensure the programs and projects we support help drive equitable
solutions. For example:• In addition to our commitment on human rights in our supply
chain, a component of our palm oil program is working withsmall, independent farmers (smallholders) to help them improveyields from their farms. Improved yields increase income, reducepressure to encroach on existing forested lands, and provide an
opportunity to verify good sourcing practices – driving
down potential supply chain emissions.
• P&G is a member of the Climate Leadership Council (CLC) which
advocates for a carbon dividends program as the primary policy
option to drive needed GHG reductions in the United States.
Oxford Economics was commissioned by the Climate LeadershipCouncil to model the distributional effects of its Dividends Plan
on total real household disposable income for years one throughfive of their plan. The report concluded the plan has positive
income distribution effects across the US as lower income
households see a larger proportional boost in their spending
power.9

9. This study is available at the following link: https://clcouncil.org/report/oxford-economics-analysis/37

AMBITION 2040 CTAP

GOVERNANCE

Given the broad scope of our efforts and the importance of this
topic, governance of climate change efforts is critically important.
The full Board is involved in our long-term risk management andstrategic planning. And while the Governance & Public
Responsibility Committee of the Board specifically oversees P&G’s
climate-related efforts as an aspect of its environmental
sustainability oversight, the other Board Committees also review
climate and environmental issues as they impact matters such as
risk management, compensation, and innovation. The members of
our Board have a broad range of industry experience and skills to
help manage and assess relevant risks and opportunities. The
details of our governance process are outlined in the following
public report, aligned with the Task Force on Climate Related
Financial Disclosures (TCFD): P&G TCFD Report.
In addition, to reinforce the importance of these efforts, the Board’sCompensation & Leadership Development Committee recently
decided to connect aspects of senior executive compensation to ourprogress on certain long-term equality and inclusion andenvironmental sustainability goals, including specific goals related
to climate change. As explained further in our 2021 Proxy Statement,
this reinforces leadership accountability for our climate efforts andhelps ensure we are committing the resources and making theinvestments needed to drive progress against our goals.

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AMBITION 2040 CTAPREPORTING & TRANSPARENCY

P&G provides extensive information and disclosures related to ourclimate change efforts. These include:• TCFD Report: We have issued a report consistent withrecommendations from the Task Force for Climate Related
Financial Disclosures. Our most recent report is available via
this link: P&G TCFD Report.
• CDP Disclosure: P&G has responded to CDP disclosure requests
for climate, water, and forestry.
• ESG Investor Portal: P&G has created an ESG Investor Portal on
our pginvestor.com website. The intent of this portal is toprovide access to information on a range of ESG topics,
including climate change. P&G ESG Investor Portal
Our GHG emissions inventory has been assured by anindependent third party for several years and we plan to continuethat practice going forward. This process covers all Scope 1 and 2
emissions, as well as Scope 3 data related to employee businesstravel.10
P&G discloses information on direct lobbying and percentage ofour trade association dues that were used to support lobbying
efforts in the United States.

10. P&G obtains 3rd party assurance of our Scope 1 and 2 GHG emissions and for our Scope 3 business travel(employee airline travel miles).

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SOURCES OF UNCERTAINTY

As we advance our journey towards net zero, we know there is alevel of uncertainty that could impact our plans and timelines.
Over time, we expect levels of uncertainty will decrease andhighlight some relevant considerations below:• Scope 3 Measurement: As discussed earlier in this document,
Scope 3 data are often estimates derived from life cycle
assessments (LCA). Working in partnership with our suppliers
to explore how we can refine primary data estimates will be an
important element of our work going forward. New insights
and potential barriers as we work to refine Scope 3
measurements could impact our plans and timelines.
• GHG Accounting: Today we adhere to current GHG Accounting
Guidelines, including those related to biogenic carbon. Should
current accounting practices and norms change, that could
impact our plans and timelines.
• Technology & Material Innovation: Our ambition indexes to2040, creating a window for technology and material
innovation to advance. While our initial roadmaps will be basedon what we believe to be true, we cannot predict with certainty
how enabling technology may evolve. Rapid advancement or
unexpected barriers in technology development could impact
our plans and timelines.
• Business Acquisition & Divestiture: It is possible that P&G may
acquire or divest businesses. The nature and scope of any
future acquisition or divestiture could impact our plans andtimelines.

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• Renewable Thermal Energy: The biggest challenge weface to drive further reductions to our Scope 1 emissions is
identifying viable options for renewable thermal energy.
As discussed earlier in this document, we are exploring
multiple strategies related to thermal energy but
acknowledge that many of the technologies being
explored today have yet to be proven at scale. The viabilityof renewable thermal options is a factor that could impact
our plans and timelines.
We will not let uncertainty hold us back and we will betransparent in sharing both our successes and our setbacks
as we move forward towards our net zero ambition. We
know the task ahead is urgent, difficult, and much bigger
than P&G alone, but we’re ready to take on the challenge.
We welcome you to follow and work with us on our journey
to net zero. For more information and ongoing updates
about our commitments and progress, please see our ESG
Investor Portal.
Together, we can create a future that protects our planet,
our common home, for generations to come.

FORWARD-LOOKING STATEMENTS

Certain statements in this report, including statements relating
to our climate and related ESG targets, estimates, projections,
goals, commitments, and expected results, and the assumptions
upon which those statements are based, are “forward-looking
statements” within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of
1933, and Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements generally are identified by thewords “believe” “project” “expect,” “anticipate,” “estimate,”“intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,”“will,” “would,” “will be,” “will continue,” “will likely result,” “goal,"“target,” “objective,” and similar expressions.
Forward-looking statements speak only as of the date they are
made and are based on current expectations and assumptions,which are subject to risks and uncertainties that may cause
results and outcomes to differ materially from those expressed or
implied in the forward-looking statements. Some of these
uncertainties are summarized in the section of this report titled,“Sources of Uncertainty.” For additional information concerning
factors that could cause actual results and events to differ
materially from those projected herein, please refer to our mostrecent 10-K, 10-Q, and 8-K reports. We undertake no obligation to
update or revise publicly any forward-looking statements,
whether because of new information, future events, or otherwise,
except to the extent required by law.

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