Procter & Gamble

Energy Consumption

Our energy efforts are inspired by our long-term vision which includes powering our plants with 100% renewable energy. We can only achieve this by both decreasing our energy consumption and increasing the use of renewable sources of energy. While it will take many years to achieve this vision, stating our intentions enables us to develop long-range plans for realizing our vision, and establishing short-term goals allows us to measure progress along the way. Over the past five years, we were able to deliver an absolute reduction in energy use of 7 percent. Across businesses, teams have embraced the targets and integrated sustainability into their daily work. The three strategies for our energy conservation efforts are:

1. Eliminating losses and encouraging sustainability behavior and culture
2. Executing specific footprint reduction projects
3. Ensuring that new initiatives and capacity projects are developed in a smart, sustainable way

The following data contains additional details on our operational efforts. The Energy Consumption graph (in gigajoules, GJ) shows the addition of Technical Centers and Gillette for all three years. Energy consumption over the last three years has been 71.9 million GJ, 74.0 million GJ and 72.3 million GJ in 2010, 2011, and 2012, respectively.

As noted earlier, we achieved a 7 percent absolute reduction in energy consumption vs. 2007, and we exceeded our 10-year goal to reduce half of the energy consumption for the period of 2002–2012 by delivering a 52 percent reduction in energy consumption on a production- adjusted basis. We fell short of the 2012 goal of a 20 percent energy footprint reduction. The primary driver was the introduction of a number of new co-generation (“co-gen”) systems at our sites. The introduction of co-gen systems has been key to helping us achieve a significant reduction in total CO₂ (Scope 1 + Scope 2); it has also resulted in a net increase in the amount of fuel we consume on site. This increased on-site fuel consumption was the primary reason we fell short of our Energy Consumption goal. We remain committed to reducing energy consumption and have established a new goal to reduce energy consumption by 20 percent by 2020.

What is Co-Gen?
Co-Gen, also referred to as combined heat and power (CHP), is an efficient and clean approach to generating electrical power and thermal energy from a single fuel source. Instead of purchasing electricity from the local utility and burning fuel in an on-site boiler to produce steam or hot water, CHP can provide both energy services in one energy-efficient step. CHP recovers thermal energy from electricity production that would otherwise be wasted to produce useful thermal energy; as such, CHP can provide significant energy efficiency and environmental advantages over separate heat and power systems. The increase in fuel use efficiency of CHP combined with the use of lower carbon fuels such as natural gas generally translates into reductions in GHG and criteria emissions compared to separate heat and power. CHP can also provide lower energy costs for the user by displacing higher priced purchased electricity and boiler fuel with lower cost self-generated power and recovered thermal energy.

Adapted from: US EPA and US Department of Energy August 2012 Report “Combined Heat & Power: A Clean Energy Solution”. For additional information on Combined Heat & Power please see the full publication available at: http://www1.eere.energy.gov/manufacturing/distributedenergy/