P&G Makes Push Into Natural-Gas Trucking

by Christopher Freeburn | June 27, 2013 11:02 am

Backside of JB Hunt truck 630[1]Procter & Gamble (PG[2]) is trying to show its environmental sensitivity by cutting its greenhouse gas emissions[3].

In a statement, the consumer products giant says it will shift up to 20% of truck shipments in North America to vehicles using natural gas by 2015. The program will start in July. P&G will collaborate with eight logistics providers to implement the fuel change, which is expected to lower carbon emissions by 5,000 metric tones.

In the first phase of the program, P&G will migrate 7% of its for-hire trucking network to natural gas-powered vehicles in 16 states. Those trucks will deliver products from the company’s popular brands, including Ivory, Bounty and Tide.

P&G says that “sustainable logistics” is an important part of boosting efficiency in its supply chain. The company notes that outside the U.S., it is shifting deliveries from trucks to trains and inland delivery systems, which generate significantly lower carbon emissions.

A number of manufacturers build truck engines that run on natural gas, including Westport Innovations (WPRT[4]), Cummins (CMI[5]) and Navistar (NAV[6]).

Shares of P&G climbed about 1% in Thursday morning trading.

  1. [Image]: http://investorplace.com/wp-content/uploads/2011/07/JB_Hunt_back_of_truck_flickr_630.jpg
  2. PG: http://studio-5.financialcontent.com/investplace/quote?Symbol=PG
  3. cutting its greenhouse gas emissions: http://news.pg.com/press-release/pg-convert-20-percent-its-hire-truck-loads-natural-gas
  4. WPRT: http://studio-5.financialcontent.com/investplace/quote?Symbol=WPRT
  5. CMI: http://studio-5.financialcontent.com/investplace/quote?Symbol=CMI
  6. NAV: http://studio-5.financialcontent.com/investplace/quote?Symbol=NAV

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