Procter & Gamble (P&G), one of many world’s largest client items corporations, has launched its monetary outcomes for the third quarter of 2025. Alongside stable efficiency throughout key enterprise segments, the corporate can also be making regular progress on its local weather and net-zero targets.
Let’s take a more in-depth take a look at how the corporate carried out financially and environmentally.
P&G Studies Robust Q1 2025 Monetary Outcomes
Procter & Gamble reported net sales of $19.8 billionwhich displays a 2% lower in comparison with the identical interval final yr. This progress was pushed primarily by greater pricing throughout product classes, though international quantity remained flat.
Natural gross sales, which take away the results of foreign money fluctuations and acquisitions, drop 1%. P&G’s Chairman, President, and CEO, Jon Moeller, stated the outcomes present the corporate’s “continued commitment to balanced growth and value creation.”
The corporate reaffirmed its steerage for the complete fiscal yr 2025. It expects natural gross sales progress of 4% to five%. Core earnings per share ought to develop by 2% to 4%.
The corporate’s Well being Care and Cloth & House Care segments noticed the biggest features. Well being Care natural gross sales remained flatand Cloth & House Care rose 5%. Nonetheless, gross sales in Magnificence and Grooming have been flat or down resulting from weaker demand in some international markets.
P&G returned a complete of $3.8 billion to shareholders, comprising $2.4 billion in dividends and $1.4 billion in share repurchases.
For the complete fiscal yr 2025, P&G anticipates distributing roughly $10 billion in dividends and executing $6 to $7 billion in share buybacksdemonstrating its ongoing dedication to delivering worth to shareholders.
P&G’s Local weather Dedication: Web Zero by 2040
Whereas P&G is thought for merchandise like Tide, Pampers, and Gillette, the corporate can also be working to turn out to be a sustainability chief. Certainly one of its largest local weather targets is to achieve net-zero greenhouse gas emissions throughout operations and provide chains by 2040.
P&G made a Local weather Transition Motion Plan. It goals to chop emissions from factories, logistics, uncooked supplies, and product use. These areas make up the vast majority of the corporate’s carbon footprint.
P&G makes use of a “science-based” method that matches the Paris Settlement, which goals to restrict international warming to 1.5°C.
- The corporate plans to chop its emissions by a minimum of 65% by 2030. Then, it would neutralize the remaining emissions with dependable carbon removal methods by 2040.
The plan consists of each short-term and long-term actions for P&G to achieve web zero. By 2030, the corporate goals to:
- Reduce Scope 1 and a couple of emissions (from its personal operations) by 65% versus 2010 ranges
- Cut back Scope 3 emissions (from its provide chain and product use) by 40% per unit of manufacturing
- Energy all international vegetation with 100% renewable electrical energy
The corporate has already reached an essential milestone: over 97% of the electrical energy utilized in its manufacturing vegetation now comes from renewable sources. Within the U.S., all vegetation are already utilizing 100% renewable electrical energy.
Reducing Emissions Throughout Merchandise and Provide Chains
Most of P&G’s emissions—over 85%—come from what occurs outdoors its personal factories. This consists of the carbon footprint from suppliers, packaging, delivery, and particularly how folks use and eliminate its merchandise.
P&G is working with suppliers to chop emissions towards net-zero aim. They’re utilizing low-carbon supplies and extra recycled content material. Additionally they goal to spice up power effectivity. For instance, P&G has began utilizing green hydrogen and bio-based supplies in a few of its merchandise.
The corporate additionally launched a “50L Home Coalition,” working with different companions to revamp family merchandise that cut back water and power use. For example, Tide cold-water detergents assist save electrical energy by lowering the necessity for heated water.
P&G additionally created a Product Emissions Roadmapwhich outlines steps to scale back product-related emissions over time. A few of these steps embody:
- Redesigning packaging to make use of much less plastic and extra recycled content material
- Shifting to compact product codecs (like pods or bars) to decrease delivery emissions
- Bettering formulation so merchandise work higher in chilly water or with shorter wash cycles
These modifications goal to scale back environmental influence. They gained’t have an effect on product efficiency or buyer satisfaction.
Past Carbon Discount: Investing in Carbon Elimination and Innovation
Even with main efforts to scale back emissions, P&G is aware of that some emissions are laborious to get rid of to realize web zero. That’s why the corporate additionally plans to spend money on carbon removal options to stability out what it might probably’t minimize.
P&G is exploring new applied sciences like direct air seize (DAC) and pure carbon sinks (similar to forests and soils) to take away CO₂ from the environment. The corporate can also be collaborating in business teams and pilot initiatives to check these options at scale.
In 2023, P&G turned one of many founding members of the Provider Management on Local weather Transition (Provider LoCT)which helps smaller suppliers cut back emissions and monitor progress. This creates a ripple impact all through its provide chain.
The corporate can also be supporting analysis into sustainable product design, low-emission logistics, and climate-resilient manufacturing. P&G says these investments will assist them “decarbonize not just our operations, but the entire value chain.”
Monitoring Progress and Staying Clear
To ensure its local weather targets are credible, P&G experiences its progress publicly yearly. It makes use of third-party auditing. It additionally aligns with international frameworks just like the Science-Based mostly Targets initiative (SBTi) and the Activity Power on Local weather-related Monetary Disclosures (TCFD).
In its newest sustainability report, P&G shared that it has already decreased Scope 1 and 2 emissions by 60% since 2010. The corporate made good progress in chopping provide chain emissions. It plans to share extra detailed Scope 3 breakdowns in future experiences.
CEO Jon Moeller says that:
“Caring for our consumers and our planet is core to all of us at P&G…There is no action too small, and no vision too big, as we all work together to preserve our shared home for generations to come.”
Balancing Enterprise Progress with Local weather Motion
Procter & Gamble’s Q1 2025 outcomes present robust enterprise efficiency, with regular progress in gross sales and revenue. However behind the numbers, the corporate can also be making main strikes towards local weather management.
By aiming for web zero by 2040 and lowering emissions throughout its provide chain, merchandise, and operations, P&G hopes to prepared the ground in sustainable enterprise practices. The corporate makes use of science, know-how, and partnerships to realize its local weather targets.
As strain mounts for corporations to ship on their environmental guarantees, P&G is working to show {that a} cleaner, greener future can also be good for enterprise.
