Procter & Gamble (P&G), one of the world’s largest consumer goods companies, has released its financial results for the 3rd quarter of 2025. Alongside solid performance across key business segments, the company is also making steady progress on its climate and net-zero goals.
Let’s take a closer look at how the company performed financially and environmentally.
P&G Reports Strong Q1 2025 Financial Results
Procter & Gamble reported net sales of $19.8 billion, which reflects a 2% decrease compared to the same period last year. This growth was driven mainly by higher pricing across product categories, even though global volume remained flat.
Organic sales, which remove the effects of currency fluctuations and acquisitions, drop 1%. P&G’s Chairman, President, and CEO, Jon Moeller, said the results show the company’s “continued commitment to balanced growth and value creation.”
The company reaffirmed its guidance for the full fiscal year 2025. It expects organic sales growth of 4% to 5%. Core earnings per share should grow by 2% to 4%.
The company’s Health Care and Fabric & Home Care segments saw the largest gains. Health Care organic sales remained flat, and Fabric & Home Care rose 5%. However, sales in Beauty and Grooming were flat or down due to weaker demand in some global markets.
P&G returned a total of $3.8 billion to shareholders, comprising $2.4 billion in dividends and $1.4 billion in share repurchases.
For the full fiscal year 2025, P&G anticipates distributing approximately $10 billion in dividends and executing $6 to $7 billion in share buybacks, demonstrating its ongoing commitment to delivering value to shareholders.
P&G’s Climate Commitment: Net Zero by 2040
While P&G is known for products like Tide, Pampers, and Gillette, the company is also working to become a sustainability leader. One of its biggest climate goals is to reach net-zero greenhouse gas emissions across operations and supply chains by 2040.
P&G made a Climate Transition Action Plan. It aims to cut emissions from factories, logistics, raw materials, and product use. These areas make up the majority of the company’s carbon footprint.
P&G uses a “science-based” approach that matches the Paris Agreement, which aims to limit global warming to 1.5°C.
- The company plans to cut its emissions by at least 65% by 2030. Then, it will neutralize the remaining emissions with reliable carbon removal methods by 2040.
The plan includes both short-term and long-term actions for P&G to reach net zero. By 2030, the company aims to:
- Cut Scope 1 and 2 emissions (from its own operations) by 65% versus 2010 levels
- Reduce Scope 3 emissions (from its supply chain and product use) by 40% per unit of production
- Power all global plants with 100% renewable electricity
The company has already reached an important milestone: over 97% of the electricity used in its manufacturing plants now comes from renewable sources. In the U.S., all plants are already using 100% renewable electricity.
Cutting Emissions Across Products and Supply Chains
Most of P&G’s emissions—over 85%—come from what happens outside its own factories. This includes the carbon footprint from suppliers, packaging, shipping, and especially how people use and dispose of its products.
P&G is working with suppliers to cut emissions toward net-zero goal. They are using low-carbon materials and more recycled content. They also aim to boost energy efficiency. For example, P&G has started using green hydrogen and bio-based materials in some of its products.
The company also launched a “50L Home Coalition,” working with other partners to redesign household products that reduce water and energy use. For instance, Tide cold-water detergents help save electricity by reducing the need for heated water.
P&G also created a Product Emissions Roadmap, which outlines steps to reduce product-related emissions over time. Some of these steps include:
- Redesigning packaging to use less plastic and more recycled content
- Shifting to compact product formats (like pods or bars) to lower shipping emissions
- Improving formulas so products work better in cold water or with shorter wash cycles
These changes aim to reduce environmental impact. They won’t affect product performance or customer satisfaction.
Beyond Carbon Reduction: Investing in Carbon Removal and Innovation
Even with major efforts to reduce emissions, P&G knows that some emissions are hard to eliminate to achieve net zero. That’s why the company also plans to invest in carbon removal solutions to balance out what it can’t cut.
P&G is exploring new technologies like direct air capture (DAC) and natural carbon sinks (such as forests and soils) to remove CO₂ from the atmosphere. The company is also taking part in industry groups and pilot projects to test these solutions at scale.
In 2023, P&G became one of the founding members of the Supplier Leadership on Climate Transition (Supplier LoCT), which helps smaller suppliers reduce emissions and track progress. This creates a ripple effect throughout its supply chain.
The company is also supporting research into sustainable product design, low-emission logistics, and climate-resilient manufacturing. P&G says these investments will help them “decarbonize not just our operations, but the entire value chain.”
Tracking Progress and Staying Transparent
To make sure its climate goals are credible, P&G reports its progress publicly every year. It uses third-party auditing. It also aligns with global frameworks like the Science-Based Targets initiative (SBTi) and the Task Force on Climate-related Financial Disclosures (TCFD).
In its latest sustainability report, P&G shared that it has already reduced Scope 1 and 2 emissions by 60% since 2010. The company made good progress in cutting supply chain emissions. It plans to share more detailed Scope 3 breakdowns in future reports.
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 Business Growth with Climate Action
Procter & Gamble’s Q1 2025 results show strong business performance, with steady growth in sales and profit. But behind the numbers, the company is also making major moves toward climate leadership.
By aiming for net zero by 2040 and reducing emissions across its supply chain, products, and operations, P&G hopes to lead the way in sustainable business practices. The company uses science, technology, and partnerships to achieve its climate goals.
As pressure mounts for companies to deliver on their environmental promises, P&G is working to prove that a cleaner, greener future is also good for business.
