Procter & Gamble’s Climate Transition Analysis Reveals a +3ºC Trajectory by 2030


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New study by Planet Tracker highlights P&G’s failure to address Scope 3 emissions, posing significant climate-related risks for the company in the long term

  • Company’s revenues are ‘dependent’ on natural resources – with as much as 60% of total revenue linked to palm oil, and 25% to timber – while upstream Scope 3 activities represent its main source of emission to be mitigated
  • Present engagement with suppliers puts P&G on a “business as usual scenario” heading towards a +3ºC pathway
  • Underestimation of risks from Carbon Pricing Mechanisms (CPMs) would result in a cost increase of USD 6.9 billion or 53% of P&G’s current five-year average annual operating profit


London, 6 July 2023: Today, financial think tank Planet Tracker unveils its latest analysis of a CA100+ focus company, highlighting that Procter & Gamble (P&G) is on a trajectory towards a +3ºC global warming scenario if upstream emissions are not mitigated further. Despite disclosing its dependency on natural resources like palm oil (51-60%) and timber (25%), P&G has not engaged effectively with its suppliers to reduce their emissions.

Planet Tracker’s analysis reveals notable limitations in P&G’s approach to Scope 3 emissions, with a substantial increase of 127% in upstream emissions between 2017 and 2021. This trend, coupled with the company’s current efforts, indicates a failure to effectively progress toward an alignment with the Paris Agreement. The report warns that such unchecked emissions growth are not in line with P&G’s sustainability targets, which include addressing upstream Scope 3 emissions in order to achieve Net Zero by 2040.

Additionally, Planet Tracker suggests that P&G may be significantly underestimating the risks associated with potential Carbon Pricing Mechanisms, which could result in a cost increase of USD 6.9 billion, equivalent to 53% of P&G’s current five-year average annual operating profit. The report highlights that 51% of these costs can be attributed to P&G’s upstream Scope 3 emissions.

Ion Visinovschi, Research Analyst at Planet Tracker, remarks, “Procter and Gamble is the latest example of a major listed company failing to meaningfully tackle their upstream Scope 3 emissions. Under current projections, P&G’s emissions could expose them to significant risks. We urge P&G to reassess their transition strategy and effectively address their upstream Scope 3 emissions.”

Planet Tracker calls on P&G and other industry peers to prioritize the reduction of their broader emissions profile, given the substantial economic and market risks associated with inaction.

The Climate Transition Analysis of Procter and Gamble is part of a comprehensive series examining the climate transition plans of Consumer Goods companies on the Climate Action 100+ list. Previous analyses have revealed similar deficiencies in companies like Colgate-Palmolive, further underscoring the urgency for effective Scope 3 emissions reduction. Planet Tracker plans to release a thematic analysis encompassing sub-sectors covered by CA100+ in the coming months.

The report can be downloaded in full here.





For more information please contact:

Josh Hoppen, ESG Communications | t: +34 612 28 72 64 |



Planet Tracker is a non-profit financial think tank producing analytics and reports to align capital markets with planetary boundaries. Our mission is to create significant and irreversible transformation of global financial activities by 2030. By informing, enabling and mobilising the transformative power of capital markets we aim to deliver a financial system that is fully aligned with a net-zero, nature-positive economy. Planet Tracker proactively engages with financial institutions to drive change in their investment strategies. We ensure they know exactly what risk is built into their investments and identify opportunities from funding the systems transformations we advocate.



As part of its Food and Land Use programme, Planet Tracker is examining the transition plans of the food system (Consumer Goods) companies covered by the Climate Action 100+ list ( The goal is to provide investors with the key information and analysis they need to be able to hold food system companies to account for the quality of their climate transition plans and their execution against those plans, and to encourage them to use this information to engage effectively with these companies with the ultimate aim of driving the sustainable transformation of the global food system.