The Procter & Gamble Company (2016 – Present)

The Procter & Gamble Company (“P&G”) is a nearly 180-year-old global consumer packaged goods company specializing in personal care products and cleaning agents. Among the company’s iconic brands are Tide laundry detergent, Crest toothpaste, Gillette razors and Pampers disposable baby diapers.

Trian initiated its investment in P&G in November 2016, believing that the company fit the profile of many Trian investments (e.g., an industry leader with an attractive asymmetric risk/reward profile, substantial market cap, strong balance sheet, and significant free cash flow). Trian believes strongly in P&G’s potential.

Nelson Peltz joined the P&G Board of Directors on March 1, 2018, following the December 2017 announcement of such appointment. Trian is looking forward to working closely with P&G toward shared goals of driving market share growth and improved margins to create more value for all P&G shareholders.

Sector: Consumer

Fun Fact: P&G first introduced Ivory soap in 1879. Its slogan “9944/100% Pure” was based on an independent laboratory analysis and was P&G’s first scientific claim.

Company Website: https://us.pg.com/

ESG Highlights

  • Favorable ISS Governance Score: Received a 2 on ISS’s QualityScore metric (as of April 1, 2018), the second-highest possible score (out of 10)
  • Director Independence: 12 out of 13 directors are independent (as of April 1, 2018)
  • New Product Innovation: Including the world’s first recyclable shampoo bottle made with 25% recycled beach plastic (winner of The United Nations Momentum for Change Lighthouse Award), and Tide Purclean, the first predominantly bio-based detergent manufactured at a 100% wind-powered facility
  • Water: P&G has reduced water use in its manufacturing facilities by 20% per unit of production and, through its Children’s Safe Drinking Water Program, has established a goal of providing 15 billion liters of clean drinking water by 2020
  • Diversity: In June 2018, P&G publicly set a target whereby half of their advertisements are to be directed by women by 2023 (up from 10% today). The company also announced plans to bring about greater gender equality at the brand director level
  • Climate: In 2010, P&G established various sustainability goals including reducing its absolute greenhouse gas emissions by 30% by 2020 and reducing energy use at its facilities by 20% per unit of production (achieved), with a long-term vision of powering all its plants with 100% renewable energy

For more information on ESG initiatives at P&G, please visit https://us.pg.com/sustainability

Trian Board Member