P&G to Convert 20 Percent of Its For-Hire Truck Loads to Natural Gas
P&G Invests in Growth of Natural Gas Industry by Awarding Loads to Eight
Natural Gas Transportation Carriers
CINCINNATI -- June 27, 2013
Procter & Gamble (NYSE: PG) is extending its commitment to a more sustainable
supply chain by becoming one of the first large shippers to convert a
significant percentage of its for-hire truck loads to natural gas. Beginning
in July 2013, P&G will work with eight transportation carriers to convert up
to 20 percent of its North America truck load shipments to natural gas
vehicles within two years. By meeting this goal, it is expected P&G will incur
savings for the converted lanes and reduce greenhouse gas emissions (GHG) by
nearly 5,000 metric tons (or the equivalent GHG emissions from 1,000 passenger
vehicles for a year).
P&G’s commitment to the carriers will convert approximately seven percent of
the company’s North America for-hire transportation network to natural gas
powered trucks during the initial phase. This will be delivered in 16 states
with an average length of haul over 280 miles, including two 1,000 mile truck
lanes. Some brands to now be delivered by natural gas powered trucks include
Bounty^®, Ivory^®, Charmin^®, Dawn^®, Gain^®, Downy^®, and Tide^®.
The use of for-hire transportation carriers for natural gas in the market will
enable P&G to use them on routes far longer than is the average in the
dedicated fleet model, while supporting the growth of public natural gas
refueling stations. High capital costs of vehicles and limited fueling
stations are often barriers to growth for the natural gas industry, and P&G’s
commitment helps to remove the obstacles to the resource becoming mainstream
for large scale shipments.
“P&G is investing in carriers with a commitment to natural gas vehicles to
help boost the emerging natural gas industry, while continuing to seek more
sustainable options for our supply chain and operations,” said Yannis
Skoufalos, Global Product Supply Officer for P&G. “Natural gas powered trucks
are a cleaner way for us to deliver the superior products our customers love
to the communities we support.”
This for-hire natural gas carrier arrangement is in addition to P&G’s 22
natural gas vehicles, which comprise part of the company’s broader efforts to
place sustainable logistics at the forefront of manufacturer-retailer
collaboration across supply chains. P&G is bringing distribution centers
closer to its customer and ensuring trucks are fully utilized in both
directions. Globally, the company is moving from truck to rail and inland
shipping, which according to P&G data is up to four times less carbon
Improvements in supply chain efficiency are helping P&G meet its long-term
sustainability vision. As part of its strategy to grow responsibly, P&G aims
to use 100 percent renewable energy at all of its plants, use 100% renewable
or recycled materials for products and packaging and to have zero of its
manufacturing and consumer waste go to landfill.
“Sustainable logistics is a critical part of achieving this bold vision, so
we’re taking important steps to make our supply chain more efficient,”
About Procter & Gamble
P&G serves approximately 4.6 billion people around the world with its brands.
The Company has one of the strongest portfolios of trusted, quality,
leadership brands, including Pampers®, Tide®, Ariel®, Always®, Whisper®,
Pantene®, Mach3®, Bounty®, Dawn®, Fairy®,Gain®, Charmin®, Downy®, Lenor®,
Iams®, Crest®, Oral-B®, Duracell®, Olay®, Head & Shoulders®, Wella®,
Gillette®, Braun®, Fusion®, Ace®, Febreze®, Ambi Pur®, SK-II®, and Vicks®. The
P&G community includes operations in approximately 75 countries worldwide.
Please visit http://www.pg.com for the latest news and in-depth information
about P&G and its brands.
Elizabeth Ratchford, 1-513-439-0378
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