Proctor & Gamble

P&G is a global leader in the fast-moving consumer goods (FMCG) industry. It focuses on branded consumer products that people around the world buy every day and which are relatively insensitive to the economic cycle.

The company offers an attractive mix of stability, brand strength and consistent cash flows and it benefits from a loyal consumer base and pricing power across dozens of trusted brands. The company’s commitment to innovation and marketing supports steady gains in market share, while its focus on cost efficiencies and supply chain optimization boosts margins.

With a long history of dividend growth, a strong balance sheet and returns of capital via share repurchases, P&G presents a low-risk, income-generating investment with growth potential. A focus on sustainability enhances the company’s global reputation.

P&G’s product range depends on a complex, global supply chain. Many raw materials it uses - such as palm oil, wood pulp, and cotton - are sourced from regions with weak labour standards and histories of human rights abuses.

These sourcing practices pose environmental risks, including deforestation and impacts on biodiversity and climate change. 

P&G relies heavily on plastic for product packaging. Despite commitments to improve recyclability and increase recycled content, P&G’s continued reliance on single-use plastics contributes to global plastic waste. This waste, if not recycled, breaks down into microplastics, posing long-term risks to ecosystems and human health. Plastic waste therefore remains a material issue for P&G.