Gillette

RATING

SECTOR

Consumer Packaged Goods

WEBSITE

CONTACT

1 Granite St
Boston
MA 02210
United States
Tel: 1-800-445-5388

STOCK EXCHANGE

LISTING

  • #42 World’s Most Valuable Brands 2020

EMPLOYEES

30,000

CHIEF SUSTAINABILITY OFFICER

Virginie Helias

AWARDS

N/A

CONTENT SOURCE

FURTHER READING

Report created by Sagarika Deshmukh

Gillette

SECTIONS :  Sustainability    Evaluation  •  Progress  •  Watch  •  Overview

Company Activity

The Gillette product line of razors and personal care products became part of Procter & Gamble when P&G bought the company in 2005.

The company’s razors are used by 750 million men in more than 200 million countries, according to Euromonitor.

Online sellers like Dollar Shave Club have dinged Gillette in the U.S. Market share is down significantly over the past decade from 70% in 2010 to below 50% in 2017, per Euromonitor. Sales were also flat in 2018.

Gillette introduced its own online subscription service in 2014. The brand’s slogan is “The Best A Man Can Get.” Gillette pays $7 million annually for the naming rights to Gillette Stadium, which houses the New England Patriots of the NFL and this deal runs through 2031.

Company Sustainability Activity

As a subsidiary to P&G, Gillette’s stance on incorporating sustainability into their business model is that of their parent company.

Enforce science-based practices with Gillette employees, suppliers and partners. Gillette is committed to preserving the planet for generations to come. Most of the information regarding sustainability is based off of the parent company P&G.

The following sections are based on P&G’s sustainability report, as Gillette has not produced their own.

Highlights

  • Reduce energy use at P&G facilities by 20% per unit of production by 2020 – Achieved — 21% reduction per unit of production
  • Reduce absolute GHG emissions by 30% by 2020 – Reduced absolute GHG emissions by 25%
  • Ensure 70% of machine loads are low-energy cycles – Achieved — 70% of loads are low-energy
  • Have 100% of the virgin wood fibers used in our tissue/ towel and absorbent hygiene products be third-party certified by 2015 – Achieved — 100% third-party certified

Targets

This section outlines Gillette’s parent company’s targets, as Gillette does not have their own. Targets for P&G:

Community Impact

  • P&G is committed to fighting the clean water crisis in partnership with NGOs, governments, companies and consumers, with the goal of delivering 25 billion liters of clean drinking water by 2025

Waste and Recycle

  • P&G has set a goal of 100% zero manufacturing waste to landfill (ZMWTL) sites by 2020. As of 2019, 92% of P&G’s production sites qualified as ZMWTL.
  • In 2010, P&G set a goal to turn 70% of all machine wash loads into high-efficiency cycles by 2020.
  • P&G aims to double their use of recycled resin in plastic packaging by 2020

Reducing Environmental Impact

  • P&G has used its procurement practices to ensure the sustainability of the world’s forest resources by committing as part of the Consumer Goods Forum to help achieve zero net deforestation by 2020

Targets for Gillette:

Reducing Environmental Footprint

  • Gillette is committed to reduce greenhouse gas emissions for manufacturing by 50% by 2030.
  • Gillette plans to achieve a 35% reduction in water consumption per production by 2030.

Renewable Energy

  • Gillette is committed to achieve 100% renewable purchased electricity by 2030

Waste and Recycle

  • Gillete is working to achieve 100% of packaging to be recyclable by 2030.

Progress

Progress For P&G: 

Reducing Environmental Footprint

  • P&G has developed the ability to substitute the top petroleum-derived raw materials (resins, cleaning agents and acrylates) with renewable materials
  • P&G reduced water use in manufacturing facilities by 27% per unit of production with conservation focused on water- stressed regions.
  • Achieved 27% reduction of water use in manufacturing facilities per unit of production.
  • P&G had a 25% absolute reduction of greenhouse gas emissions compared to baseline 2010.

Community Impact

  • P&G provided 1 billion people with access to water-efficient products

Waste and Recycle

  • P&G ensured 88% of product packaging is either recyclable or programs are in place to create the ability to recycle it 
  • 92% of P&G’s manufacturing sites reached zero manufacturing waste to landfill
  • 99% of the volume of paper packaging contained reported by their suppliers was either recycled or was third- party-certified virgin content.
  • P&G used approximately 45,100 metric tons of post consumer resin (PCR) in plastic packaging.

Renewable Energy and Energy Usage

  • P&G had a 21% reduction of energy per unit of production compared to 2010
  • 13% of energy used in P&G comes from renewable sources. 

Progress for Gillette:

Waste and Recycle

  • As of 2019, Gillette launched the first razor recycling program in partnership with Terracycle in the U.S., enabling consumers to return all types of razors for repurposing.
  • Gillette achieved ‘Zero Manufacturing Waste to Landfill’ status across their global network of plants.
  • Gillette reduced their energy use across their plants over the last ten years by 392,851GJs (Gigajoule).

Certificates

N/A

UN Sustainable Development Goals

UN SDGs Compliance

SDG 3

  • P&G Safeguard Clean Hands Healthy Kids Campaign teaches hygiene to prevent childhood illness, absenteeism and even death. The program was launched in China based on global research that soap and water washing can prevent nearly 4 million children a year from dying before their 5th birthday. Today, the program is in schools across China, the Philippines, Pakistan and Mexico, reaching 4.5 million students a year.

SDG 5

  • The P&G Always brand reached an additional 300,000 girls through its Protecting Futures Program, providing girls between 12 & 14 with education on good personal hygiene, puberty, menstruation and personal care. The program, started in 2006, is aimed at helping girls attend classes during their periods, and thus stay in school. The program has expanded from Africa to the Middle East.

SDG 6

  • P&G’s not-for-profit Children’s Safe Drinking Water Program (CSDW) works with a network of 150 partners to improve the health of children in developing countries by providing them with clean drinking water.
  • P&G is committed to fighting the clean water crisis in partnership with NGOs, governments, companies and consumers, with the goal of delivering 25 billion liters of clean drinking water by 2025.

SDG 12

  • P&G has set a goal of 100% zero manufacturing waste to landfill (ZMWTL) sites by 2020. As of 2019, 92% of P&G’s production sites qualified as ZMWTL.

SDG 13

  • In 2010, P&G set a goal to turn 70% of all machine wash loads into high-efficiency cycles by 2020. P&G was able to reach this goal one year ahead of schedule.
  • P&G has also sought to influence the entire laundry ecosystem by continuing to partner with washing machine manufacturers on three key areas: 1) placing information about the benefits of cold-water washing on new washing machines reaching millions of consumers, 2) encouraging the use of quick cycles where time saving is a great consumer motivator to switch to this cycle and 3) designing detergents that perform at their best in the new high-efficiency machines. More than six million informational packets about the benefits of quick and cold-water washing cycles have been distributed globally to new machine purchasers.

SDG 15

  • P&G has used its procurement practices to ensure the sustainability of the world’s forest resources by committing as part of the Consumer Goods Forum to help achieve zero net deforestation by 2020 through three strategic commodities where  sourcing practices can have the greatest impact on ensuring responsible use of the world’s forest resources: wood pulp for tissue and absorbent hygiene products, wood pulp used in paper packaging and palm oil for our laundry and beauty products.
  • As of 2019, P&G now has 100% of their virgin wood fiber used in tissue/ towel and absorbent hygiene products third-party certified. Additionally, 99% of the volume of paper packaging reported by P&G’s suppliers was either recycled (85%) or third party-certified virgin content.

Evaluation

Gillette relies on their parent company, P&G, to set the sustainability standards and initiatives.

While Gillette has not reported much progress in terms of becoming more sustainable, P&G has made meaningful strides towards sustainability which is evident through the incorporation of the SDGs into their business practices. P&G has achieved many of its 2020 environmental sustainability goals, and has plans in place to meet the rest and has established new, broad-reaching goals for 2030. With “Ambition 2030”, P&G aims to enable and inspire positive impact on the environment and society while creating value for the company and consumers.

In addition to P&G’s sustainability successes, Gillette has made some efforts in waste and recycling. Gillette launched the first razor recycling program and is dedicated to reducing their waste and energy.

Gillette has received one listing and no awards. They have no certificates. While P&G has aligned some of their initiatives with the UN Sustainable Development Goals, Gillette has not.  For these reasons, Gillette has been rated a D.

Analyst Outlook: Neutral

Gillete has mediocre sustainability activity. Despite the controversial sustainability activity, they are committed to reducing their carbon footprint.

Key Points

  • While investing to reduce their carbon footprint, P&G is still continuing to use climate-critical boreal forest fibre for its throwaway tissue and produce mass amounts of emissions in the production process.
  • P&G is not completely transparent in their reports 
  • Gillete has very minimal information about their part in sustainability and does not have any certifications or awards
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