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 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 1 on ISS’s QualityScore metric for Governance and for social, and 2 for Environmental (as of August 14, 2019), the first and second-highest possible scores (on a scale of 1-10, best-worst)
  • New Product InnovationP&G recently launched a small-scale consumer test using EC30, a breakthrough technology that allows the consumer to clean both the body and home with lighter, smaller products that are easier on the environment. EC30 contains no water or plastic, is 100% compostable, produces 75% less emissions, has 80% less weight. EC30 has no stabilizers, fillers or preservatives and the package is also sustainable
  • Sustainable Supply Chain: In January 2019, P&G announced new “collect and recycle” circular solutions that help eliminate waste as a part of a partnership with Loop™, a circular e-commerce platform developed by international recycling leader TerraCycle. In May 2019, P&G announced it is testing reusable packaging on some of its most popular products as part of Loop™
  • ClimateIn 2010, P&G established various sustainability goals including reducing its absolute greenhouse gas emissions by 30% by 2020, powering all its plants with 100% renewable electricity (in North America by 2020, globally by 2030) and to have 100% recyclable or reusable packaging by 2030
  • Brands Making a Positive ImpactTide purclean™ is certified 65% bio-based, with 100% recyclable packaging, and is produced at a plant that sends zero manufacturing waste to landfill. Ariel is striving to make all its packaging recyclable by 2022 and to reduce 30% plastic packaging by 2025
  • Philanthropic WorkSince 2002, P&G has donated $50 million worth of products in partnership with Kind Direct, a leading UK charity dedicated to distributing donated consumer products from manufacturers and retailers
  • DiversityP&G has a target whereby women direct 50% of their advertisements by 2023. 46% of all P&G managers globally are women (as of November 2018). In July 2019, P&G announced that Secret Deodorant will donate $529,000 to the U.S. Women’s National Team Players Association to help close the pay gap and support its members’ fight for equal pay

For more information on ESG initiatives at P&G, please visit https://us.pg.com/doing-what-is-right/

Trian Board Member