To advance its Ambition 2030 sustainability objectives, P&G has opened a new Product Supply Innovation Center (PSIC) in Germany’s Rhine-Main region. The Center will serve as a hub for collaboration with a network of local suppliers, tech companies, R&D institutions and top universities to develop solutions to decarbonize its global supply chain.
By 2030, the company is aiming to cut its greenhouse gas emissions by 50% across operations, purchase 100% renewable electricity globally, and achieve overall carbon neutrality.
According to Supply Chain Quarterly, which has been tracking supply chain performance for the last thirteen years, we can expect to see the 2020s as a big decade for supply chain sustainability. The publication points to three major trends driven by the pandemic, ESG and renewed interest in corporate purpose beyond profits:
- Trend 1: Social purpose is now core to business commitments.
- Trend 2: Supply chain sustainability performance varies by region and across themes.
- Trend 3: Sustainability is becoming a critical risk management tool.
With the new PSIC, P&G plans to accelerate innovation, transformation and implementation of intelligent supply chain operations with new solutions that will build a more resilient, future-proof supply chain. Concepts and learnings will make full use of the disruptive breakthroughs in cyber-physical systems, internet of things connectivity, and ubiquitous intelligence across materials, assets and processes. Innovations developed in the PSIC and its ecosystem will be disseminated globally for use by the entire industry.
Angelique Terrien, Senior Director, Supply Chain Innovation, Sustainability Engineering at Procter & Gamble, said in a statement, “I am very excited to head the new Product Supply Innovation Center in Kronberg, bringing together our best talent from different continents, new talent and partners from across our ecosystem. Still, the pressing challenges in sustainability can only be solved through the power of partnerships and collaborative action. We look forward to collaborating using our combined expertise and capacities to drastically reduce GHG emissions, water consumption and waste production toward net zero solutions we can scale in our operations. With the opening of our Product Supply Innovation Center (PSIC) we hope to inspire change beyond the Rhine-Main region, Germany and our company and help improve and redefine global processes for production, logistics and retail.”
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