Superior performing products require high quality, reliable, and sustainable supply chains. At P&G, we have a responsibility through our procurement practices to ensure that the wood fiber in our packaging is sustainably sourced.
We continually strive to optimize our packaging design, aiming to use the least amount of material, while ensuring adequate protection, delivery, and safe use of our products. As part of our ongoing efforts, we continue to identify source reduction opportunities to decrease overall material usage and to use recycled paper when it offers the best option to meet performance and business requirements. Our paper-based packaging is derived from wood fiber, and we have a responsibility through our procurement practices to ensure that the wood fiber in our packaging has been responsibly sourced.
We have an aim that 100% of our paper packaging will contain either recycled or third-party certified virgin content. Over the past several years, we have expanded our efforts to collect data from an increased number of suppliers to assess progress against this goal.
Though we do not own or manage forests, we have a responsibility through our procurement practices to ensure sustainability of the world’s forest resources. To deliver on this commitment, P&G sets supplier expectations in our Forest Commodities Policy.
In addition to our Forest Commodities Policy, we work with our suppliers and other stakeholders to promote forest certification through our purchases. We give preference to the Forest Stewardship Council and accept Sustainable Forestry Initiative and Programme for the Endorsement of Forest Certification who ensure forests are responsibly managed. We also purchase paper packaging made of recycled material.
Typically, virgin fiber used for paper and board production is from timber that are usually by-products from lumber and unlikely to be used for other purposes. Once this virgin fiber has been made into paper, it can be recycled on average five to seven times. Recycled paper and board are a crucial part of achieving our Ambition 2030 goals.
We also recycle 'post-industrial' waste. This is material that, for one reason or another, was not used directly for packaging. The most common form is 'clippings' – waste generated when packaging is cut to shape.
As we go forward, our objective is to achieve 100% use of recycled or third-party certified virgin fiber in our paper packaging and maintain this goal ongoing. We will continue to report data on our paper packaging on an annual basis.
P&G will share on an annual basis our paper packaging suppliers. We believe that transparency helps us to build a more sustainable supply chain. Our direct supplier list accounts for the vast majority of the wood fiber-based packaging P&G purchased. This list includes all corrugate, folding cartons, displays, paper labels, and packaging.
* Paper packaging includes all corrugate, folding cartons, displays, paper labels, and packaging. Data self-reported by suppliers. Responses received represent ~90-95% of total supply volume. We do not expect remaining percentage to materially impact reported results. FSC trademarks used under FSC-100701.
This data, which was self-reported by our suppliers*, is summarized in the following table:
*Responses received by publication of our 2023 Citizenship Report represent ~90-95% of total supply volume. We do not expect remaining percentage to materially impact reported results. All data references fiscal years.