pg 2011 sustainability overview

7/27/2019 PG 2011 Sustainability Overview

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2011 SUSTAINABILITY OVERVIEW

Commitment to Everyday Li e


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ContentsCEO Statement ......................................................................................... 2Leadership Statement ........................................................................... 3Report Card .......................................................................................... 45Products ................................................................................................ 611Operations ......................................................................................... 1217Social Responsibility ................................................................... 1823P&G at a Glance ................................................................................... 24Resource & Waste Summary ......................................................... 24Long-Term Environmental SustainabilityVision and Goals .................................................................................. 25

About this publicationThis is the 13th year that P&G has reported on itssustainability e orts. This publication details the progressweve made on our 2012 goals, devoting a section toeach o our ocus areas: Products, Operations, and SocialResponsibility. It concludes with an overview o P&Gslong-term environmental sustainability vision and 2020goals, which we established in September 2010. Data inthis report covers the period rom July 1, 2010, throughJune 30, 2011. Financial in ormation is given in U.S. dollars.To view our online report, which was prepared using theGlobal Reporting Initiatives (GRI) G3 Guidelines, pleasevisit www.pg.com/sustainability.

P&G has been a member o the FTSE4Good and Dow JonesSustainability Indexes (DJSI) since their inception. P&Gis the Household and Personal Care Products leader onthe Corporate Knights Global 100 list o the worldsmost sustainable corporations and is on the CorporateResponsibility Magazine 100 Best Corporate Citizens list.


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At P&G, were committed to delivering products and services thatmake everyday life better for people around the world. Our opportunityto touch and improve lives comes with a responsibility to do so in a

way that preserves the planet and improves the communities in whichwe live and work. Were continuing to make progress in our focusareas of Products, Operations and Social Responsibility, enabled byour employees and our stakeholders.

Our Focus AreasWe have set speci c strategies and goals to ensure we are delivering continuous improvement toward each o our ocus areas.

Our EnablersIn order to deliver our environmental and social programs, we must engage our employees and stakeholders. Our objective is to equip allP&G employees to build sustainability thinking and practices into their everyday work. We will also work transparently with stakeholders toenable us continued reedom to innovate in a responsible way.

Products:Delight the consumer with sustainableinnovations that improve the environmentalpro le o our products

Operations:Improve the environmental pro leo our own operations

Social Responsibility:Improve childrens lives through oursocial responsibility programs

Employees Stakeholders

The Procter and Gamble Company 1


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P&Gs Purpose is to touch and improve lives, now andor generations to come. Our growth strategy, which is

inspired by our Purpose, is to touch and improve moreconsumers lives, in more parts o the world, morecompletely.

One critical way we are executing this strategy is to reach and serveve billion people with our products and services by the midpoint

o this decade, up rom less than our billion just two years ago.Were con dent we can improve these billions o lives i we canreach people where they shop with products and services they needand want. But we also know that we must achieve our growthsustainably and responsibly. To do otherwise would be inconsistentwith our Purpose and what we stand or as a Company.

Last year, we announced a new long-term environmentalsustainability vision to guide our e orts. This vision is challengingand ar-reaching: 100% renewable energy to power all our plants,100% renewable or recycled materials or our products andpackages, zero consumer and manu acturing waste related to ourproducts going into land lls. We dont yet have all the answersnecessary to achieve this vision, but we are committed to makingdisciplined, step-by-step progress through a series o ten-yeargoals. Were con dent that with P&Gs size and scale, and with ourcapabilities and partnerships, we can make the di erence in theworld to which were committed.

To ensure line o sight between our business and our sustainabilitygoals, we created the P&G Sustainability Board, which includesexecutive o cers rom Product Supply, Research & Development,Marketing, External Relations, and our North America business.

Each o these leaders is responsible or the systemic integration oour sustainability strategy across these unctions.

I serve as the executive sponsor o Sustainability at P&G becauseI eel it is a critical leadership role that only the CEO can play.My sponsorship and the leadership o the Sustainability Board helpensure that our Purpose and our sustainability vision are integratedinto each business unit and each o our key unctions.

We see this integration most clearly in P&G innovation. The bestway to solve sustainability challenges is to innovate, which is at theheart o our Companys business model. We are creating newmaterials, new technologies, and new ideas consumers will embrace.

We want to provide consumers with the quality and value theydeserve without having to make trade-o s to be more sustainable.Innovation is how we do this, with solutions that require ewermaterials, use less energy and water, and produce less waste.

We are also leveraging the ongoing demand or increasingproductivity as an accelerator o sustainability progress.Sustainability o ten enables productivity. For example, we operatemore e ectively and e ciently by increasing the eco-e ciency oour plants reducing water usage, greenhouse gas emissions andwaste. We are also advancing research in renewable materials todevelop alternatives to petroleum, which is the most importantthing we can do to reach our long-term vision o making 100% oour products and packaging with renewable or recycled materials.(In the Products section o this report, you will see two newitems that are replacing petroleum with renewable materials.)To put it simply, whats good or business can also be good orthe environment.

Touching and improving lives also gives us the responsibility tohelp the communities in which we operate to prosper. We do thisthrough disaster relie and through programs that help children and

amilies in need around the world to live, learn and thrive. All theseprograms allow us to help those who need help when and wherethey need it most. As a result, we not only improve li e but alsocreate positive relationships with people that ultimately build ourbusiness and allow us to do even more good.

The opportunity to make a di erence that lasts generations whether through our brands and services, our operations, ourenvironmental sustainability e orts, or our philanthropyis whatattracts people o remarkable character and caliber to P&G.

We are committed, together, to improving li e every single day.Were proud o the progress we make year a ter year, and we areinspired by the challenge to do more.

CEO Statement

Robert A. McDonaldChairman o the Board, President and Chie Executive O fcer

2 P&G 2011 Sustainability Overview


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In 2007, P&G established a series o fve-yearsustainability goals. In this annual report, we presentthe progress we have made over the past year andour cumulative progress since this program began.

We are pleased to report that we have already achieved several o

our ve-year goals and continue to make important progressagainst the others.

For our Products goal, we have delivered $40 billion in SustainableInnovation Products, and we are well on our way to exceed our2012 goal o $50 billion in cumulative sales. These products have atleast a 10% improvement in their environmental pro le comparedto a previous or alternative version o that product. The compactiono our powder laundry detergents in North America and thepackaging changes we made in our Gillette Fusion ProGlide razorsin Western Europe are examples o our progress in this area.

In our Operations, we have achieved a reduction per unit oproduction o 16% in energy, 57% in waste, 12% in CO2, and 22%in water usage. Our 2012 goal is a 20% reduction in each o theseareas, so we have already achieved this goal or our water andwaste reductions and continue to work toward achieving it orour CO2 and energy reductions.

Relative to our social investments, we have already surpassed ourgoal o enabling 300 million children to live, learn and thrive,reaching a total o 315 million by June 2011. We have delivered2.9 billion liters o clean drinking water and are well on our wayto reach our goal o 4 billion liters. Key to this progress was theexpansion o our P&G Childrens Sa e Drinking Water program,which provides clean drinking water through use o our PUR

technology, into our new countries. We are now delivering PURpackets in 65 countries, with the help o 119 partners.

In September 2010, P&G announced a new long-term environmentalsustainability vision. We also announced a series o additional2020 goals, ocused on Products and Operations. We have madeimportant strides to integrate our new vision into each business unitand across all o P&Gs operations, and we are making signi cantprogress towards the new goals. Highlights o this work includeresearch into the development o renewable materials or our majormaterial classes, including development o plastic bottles made

rom sugarcane that are now used or Pantene Nature Fusion sold

in Western Europe. We have also expanded our renewable energyport olio by building our rst wind turbine, which provides 17% othe power or our Iams pet ood plant in the Netherlands.

Solid waste continues to be an important issue to address or ourindustry. Our comprehensive solid waste strategy includes:(1) creating less solid waste by designing waste out o our packagingand products, (2) driving the waste generated at our manu acturing

acilities that goes to land ll to zero, and (3) working withgovernments and industry partners to catalyze the developmento waste management systems that divert solid waste romland lls or dumps to recycling and incineration with energyrecovery systems.

We could not reach our vision and goals without the help o P&Gemployees. Their passion, dedication, and expertise is inspiring.They are the ones making the small and large steps to make ourCompany more sustainable. Whether they are working directly onour strategies and goals, initiating grassroots e orts to undertakeimportant sustainability projects, or passionately serving in theircommunities outside o work, their stories are inspiring. I hope you,too, will be inspired as you read about a ew o them in this report.

Leadership Statement

Len SauersVice President, Global Sustainability



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Products

GOAL

Develop and market at least$50 billion in cumulative sales o

Sustainable Innovation Products,which are products that have animproved environmental pro le.(1)

PROGRESS (in U.S. dollars)Since July 2007

Cumulative sales o SustainableInnovation Products

$40billionP&G Report Card

2012 Sustainability Goals

We set ive-year goals in 2007across our ocus areas o Products,Operations, and Social Responsibility.In year our, we are continuing oure orts to achieve each o our goals,and we have already achieved threeo them.

Our long-term environmental visionand 2020 goals can be ound onpage 25.

These goals, originally set in 2007, were increased in March2009. The goal or P&G Childrens Sa e Drinking Water(CSDW) program was again increased in September 2009.

(1) Sustainable Innovation Products are included i they have launched in marketsince July 1, 2007, and have a >10% improvement compared to a previous oralternative version o the product in one or more o the ollowing indicators withoutnegatively impacting the overall sustainability pro le o the product: A. Energy,B. Water, C. Transportation, D. Amount o material used in packaging or products,E. Substitution o non-renewable energy or materials with renewable sources.



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Operations

GOAL

Deliver an additional 20% reduction(per unit o production) in energyconsumption, CO2 emissions, disposedwaste, and water consumption

rom P&G acilities, leading to a totalreduction over the decade o atleast 50%.

PROGRESS (percent reduction per unit o production)Since July 2007 Since July 2002

Energy Usage -16% -52 %

CO2 Emissions -12% -53 %

Waste Disposal (1) -57 % -61%

Water Usage -22 % -58 %

Social Responsibility

GOAL

Enable 300 million children to Live,Learn and Thrive.(1)Prevent 160 milliondays o disease rom unclean waterand save 20,000 lives by delivering4 billion liters o clean water throughour P&G Childrens Sa e DrinkingWater program. (2)

PROGRESSSince July 2007

LIVE, LEARN AND THRIVE 315Number o Children Reached millionP&G CHILDRENS SAFEDRINKING WATER PROGRAM 2.9Liters o Clean Water Delivered billion

115Days o Disease Prevented million

Lives Saved >14,000

(1) Live, Learn and Thrive (LLT) is P&Gs global cause that ocuses our socialinvestments on e orts that improve the lives o children in need.

(2) Within Live, Learn and T hrive, our signature program is P&G Childrens Sa eDrinking Water. Methodology or calculating diarrheal days and mortality wasdeveloped with Population Services International and Aquaya Institute. Details areprovided in the 2011 Sustainability Report ound at www.pg.com/sustainability.

(1) Total waste disposed includes non-hazardous and hazardous solid waste,air emissions, and strength o e fuent measured as chemical oxygen demand.

GOALMET

GOALMET

GOALMET



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Commitment throughOur Products



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We are committed to improving peoples everyday lives by making products thatare better or the environment.

To understand how we can make a product more environmentally sustainable,

we analyze its ootprint throughout its entire li e cycle rom the creation o rawmaterials, to manu acturing, to consumer use, to disposal. This helps us ocuswhere we can make the most signi cant impact.

For example, by rethinking the raw materials phase o some o our products and howthe products are designed and ormulated, weve been able to reduce the amounto materials we use, the energy it takes to produce them and the waste at the end oconsumer use. Weve also begun to replace petroleum-based raw materials in some

o our products with sustainably sourced renewable materials.Sustainable Innovation Products (SIPs) 2010 2011These products have a signi cantly reduced (>10%) environmental ootprint versus a previous or alternative version o the productwithout negatively impacting the overall sustainability pro le o the product. These SIPs were identi ed in Fiscal 10/11.

Product Region Innovation

Swi er Sweep-n-Vac North America Optimization o packaging design delivered a signi cant reductionin overall packaging.

Powder Laundry Detergents North America Compaction o powder detergents delivered savings in packaging(Cheer, Dre t, Era, Gain, and energy.Ivory Snow, Tide)

Pantene Nature Fusion Western Europe The introduction o plant-based materials reduced the use onon-renewable resources.

Gillette Fusion ProGlide Razors Western Europe The introduction o plant-based materials reduced the use onon-renewable resources, and changes to the package structureachieved an overall reduction in packaging.

Pampers Cruisers North America Changes to packaging increased the number o units that could beplaced on a truck, delivering an overall reduction in transportation.

Pampers Baby Dry, Swaddlers, New North America, Western Europe, Changes to product ormulation and package design deliveredBaby, Active Fit, Active Baby, Juegos Latin America reductions in material usage.and Sueos, Cruisers with Dry Max

Pampers Wipes Sensitive North America, Western Europe Changes to product design delivered a reduction in material usage.

Always & Naturella Latin America, Asia, CEEMEA*, Signi cant reduction o the polyethylene bag delivered an overallWestern Europe reduction in packaging.

Always Western Europe Shel -ready box with open ront and back panels signi cantlyreduced overall packaging usage.

Braun Oral-B New Generation Charger Western Europe, CEEMEA Changes to product design delivered a reduction in material usage.

*The CEEMEA region includes Central and Eastern Europe, Middle East, and A rica



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The energy needed torun the ermentation

plant comes romburning bagasse, a

brous materialremaining a terextraction o the sugar

juice rom the cane.

The excess energyis sold to the electrical

energy grid, some owhich is used or the

polymerization process.

Bio-Polyethylene(Bio-PE) is plastic that ischemically identical topolyethylene plasticmade rom petroleum.

Sugarcane

FermentationEnergy

Energy Grid Polymerization

Bio-PE

Committed to Renewable Materials

A bottle that balances nature. Pantene is piloting the use o plant-based plasticin its packaging. This innovative material made rom sugarcanea rst or the masshair care industrydebuted in the Pantene Pro-V Nature Fusion collection last Aprilin Western Europe, and is expanding to North America in Fall 2011.

Sourced rom our supplier Braskem in Brazil, the sugarcane is converted into ethanoland eventually into plastic utilizing a by-product rom the rest o the plant to providesome o the energy needed to uel this process.

Sugarcane is harvestedand taken to a mill.

The sugarcane ismechanically crushed,releasing sugar juice that

is converted to ethanolthrough ermentationwith yeast.

The ethanol is chemicallyconverted to ethylene,which is then combinedto make polyethylene.



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Plant-based plasticis a signifcantenvironmental

innovation.When compared

to traditionalpetroleum-based(HDPE) plastic, it:

Reduces greenhouse gas (GHG)emissions by more than 170%because (1) as sugarcane grows,

it absorbs CO2 that is stored inplastic when it is recycled orland illed, and (2) a large portiono the energy used to produceBio-PE is rom renewable biomass,which emits less GHG.

Consumes over 70% less ossiluels than petroleum-based

plastic

Can be recycled in traditionalacilities that recycle petroleum-

based plastic

70%

170%

T O M F E D E R L E , Research Fellow , P&G Environmental Stewardship Organization

We elt that a highly productive plant like sugarcane could be a sustainable eedstock orproducing next-generation renewable plastic containers. Due diligence dictated that weunderstand the speci c agricultural practices being used and potential environmental impactsassociated with the entire li e cycle o this new plastic. Given World Wildli e Funds expertisein sugarcane and its sourcing, we sought their guidance as we took this rst step in a longer

journey toward more sustainable packaging materials. Furthermore, we conducted a numbero comprehensive studies, including a li e cycle assessment and a ood impact analysis.Then we went to Brazil, not only to talk to the manu acturer, but to visit elds to see how

armers grow and harvest the crop and to visit the mills to see how its processed. In that way,we could observe rst-hand how potential environmental impacts were avoided or minimized.As a result o these e orts, we were able to con rm that the sugarcane being used isde nitely sustainably sourced and the plastic itsel provides tangible sustainability bene ts.

In 2011, Dr. Tom Federle was presented the prestigious Samuel Rosen Memorial Awardby the American Oil Chemists Society (AOCS) in recognition o his accomplishments insur actant chemistry.



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Committed to Packaging ReductionRethinking packaging rom source to shel . P&G partnered with Be Green Packaging,a molded ber supplier, to develop a breakthrough package or Fusion ProGlide, Gillettesnewest high-per ormance razor. The new package launched in Western Europe with a 57%

reduction in plastic compared to the originally launched Fusion outer pack and razor trayand a 20% reduction in gross weight compared to the Fusion launch package. To minimizeplastic, the design uses ber material made rom bamboo, sugarcane, and bulrush.The innovation stretches the boundaries o what moldable pulp can do, deliveringa breakthrough package out o ber material. Its structure stays strong under compression,sealing and opening orces, and d istribution and transportation stresses, while alsomaintaining a strong visual presence on the shel . And, like the Fusion packaging inWestern Europe, this new ProGlide packaging is 100% ree o Polyvinyl Chloride (PVC).P&G plans to begin introducing this package in North America in 2012.

M I K E M A R C I N K O W S K I , Principal Engineer, Gillette

To deliver this materials-reduction project, about a dozen o us literally locked ourselves in aroom and worked on it until the design was complete. We ocused where we could make thebiggest impact on materials by looking at alternatives to plastics ber-based materials suchas bamboo, sugarcane, and bulrush. Be Green was an instrumental partner, and together wewere able to deliver a 57% reduction in the amount o plastic. We eel like were leading ourindustry with this approach.

The new design signi cantly reducesmaterials by minimizing the internal tray

and simpli ying the design.

NewOld

57 %

Reduction in plastic*

* vs. Fusion launch outer pack and razor tray** vs. Fusion launch package

20 %

Reduction in gross weight**

100%PVC ree



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Committed to CompactionCreating a triple win or customers, retailers, and the planet. Building on previousyears success in liquid laundry compaction and advances in powder compaction inWestern Europe, this past winter we compacted our entire port olio o U.S. and Canadiancarton powder laundry detergents by 33%. Compaction provides meaning ul bene ts orthe consumer, the retailer, and the environment.

The compacted powder ormulas o Tide, Gain, Cheer, Dre t, and Ivory Snow use a higherproportion o dense active cleaning agents, resulting in the same great per ormance usingless product. The environment bene ts rom a smaller carton size that produces less waste.The retailer bene ts because ewer trucks, ewer pallets, and less inventory space allow ora more e cient supply chain.

N I C O L E B O S L E Y, Marketing Manager, P&G Fabric Care

Consumers today know that compaction means a smaller-sized package. So we ocused ourbrand marketing on the improved cleaning power o Tide and the enhanced reshness oGain. We utilized coupons and in ormational inserts placed in pre-compacted and compacted

ormulas to educate consumers on the product upgrades behind Tide and Gain and thesmaller packaging. We also leveraged P&Gs Future Friendly plat orm to communicate theenvironmental bene ts o powder compaction. Consumers have reacted positively to theproduct being lighter to carry and easier to store. These changes are just a ew o the waysthat sustainability can create more bene ts or the consumer.

Up to 28% less corrugate*(6.3 Million Square Meters)

Up to 5 8% less uel*(3,360,000 Diesel Liters)

Up to 6% ewer trucks*(5,900 Trucks)

NewOld

*Based on recommended dosage.



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Commitment throughOur Operations



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Our commitment to improving everyday lives begins with our own day-to-dayoperations. And were making progress reducing energy usage and waterconsumption, and reducing the amount o manu acturing waste going to land lls.Weve expanded this ocus on e cient and environmentally responsible operationsacross our end-to-end supply chain. Were collaborating with suppliers on the rontend and our nished product logistics on the back end to make steady, lastingimprovements in our operations.

Energy Usage(Per Unit o Production)

ReductionsinceJuly 2007 -16%

We are making excellentprogress towards the energy

ootprint reduction goal.Energy usages are derived rompurchased energy, purchased

uels, and alternative andrenewable energy. Key elementsto delivering the goal are oure orts to conserve energyand reapply best-in-classapproaches.

CO2 Emissions(Per Unit o Production)

ReductionsinceJuly 2007 -12%

While P&G is not an energyintensive company, we still havea role in controlling greenhousegas emissions, and we aremaking progress. Our ocus hasbeen on direct CO 2, which isderived rom usage o uels. Inaddition, we continue to makeprogress on Total CO 2 (direct +indirect) reductions by makingchanges in uel selection.

Waste Disposed(Per Unit o Production)

ReductionsinceJuly 2007 -57 %

Total waste disposed includesnon-hazardous and hazardoussolid waste, air emissions, andstrength o e fuent measuredas chemical oxygen demand.Results have been deliveredthrough bene cial reuse omaterials both internally andexternally.

Water Usage(Per Unit o Production)

ReductionsinceJuly 2007 -22 %

Water consumption reductionshave been driven by a rigorousconservation program andreapplication o best-in-classprocesses across our businesses.While this work is ocused onall sites, we put special ocuson our large sites and those inwater scarce areas.

07 08 09 10 11

-6 % -11 % -14 % -16 %

Goal (20 % )

07 08 09 10 11

-8 % -10 % -11 % -12 %

Goal (20 % )

07 08 09 10 11

-21 % -30 % -50 % -57 %

Goal (20 % )

07 08 09 10 11

-7 % -13 % -16 % -22 %

Goal (20 % )



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Committed to Reducing

Manu acturing WasteTrans orming waste into alternative products. To reduce waste at our manu acturingplants and distribution centers, P&G employs a dedicated global team o experts. The GARPteam (Global Asset Recovery Purchases) has expertise in creating value rom waste.

When a P&G acility has something it cannot recycle, GARP steps in to help. Thanks to them,many materials that were once destined or a land ll or incineration are being put to gooduse or sold or re-use, reducing the virgin materials that other companies require.

To date, 16 P&G plants and distribution centers have achieved zero manu acturing waste sentto land ll. This means that 100% o their manu acturing waste is bene cially re-used anddiverted rom land lls. Shown above are some o the creative ways the GARP team has ounda new li e or waste.

F O R B E S M c D O U G A L L , Technical Leader, P&G GARP Team

We start by simply ocusing on optimizing the recycling o conventional materials such ascardboard, plastics, and metals. While this seems easy, we must make sure we createprocesses that enable our employees to sort everything e ciently and avoid contamination othese di erent materials. Then we bring in our Alternative Use team to help identi y solutions

or other scrap materials that have value in speci c niche markets, such as wastewater andsludges. In some countries we use sludges as an ingredient in the manu acture o bricks andin others we use them as soil enhancers. I know that the work we are doing within the GARPteam is delivering signi cant environmental bene ts to all o our sites and the communities inwhich they operate.

Scrap Dental Floss

Industrial Spill Pillows

Excess foss is repurposed in Mexico as

the lling in pillows that are used to cleanup industrial spills.

Excess Feminine Pads

Shoes

In India, scrap pads are recycled into plasticsoles to make low-cost shoes.

Hair Care Manu acturing Waste

Construction Bricks

In Thailand and China, the waste le tover rom the manu acturing process iscombined with clay and coal ash, thenheated to make bricks. Be ore

A ter

16Sites have reached

zero manu acturing wastesent to landfll



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Committed to Renewable EnergyHarnessing the wind, saving costs. P&G is expanding its port olio o renewable energysources. With each new investment, these new methods are making us more e cient andsel -su cient, decreasing our dependency on conventional petroleum-based energy sources.

In 2011, we installed a wind turbine at P&Gs pet care plant in Coevorden, Netherlands.Our rst investment in wind energy, this turbine will supply approximately 17% o the petcare plants annual energy needs, producing approximately 5,500 megawatt hours oenergy per year, which is enough energy to power up to 1,500 houses in the Netherlands.

V I N C E N T S T R U Z K A , Plant Finance Manager, Iams Plant, P&G NetherlandsWhen I came to the plant, I had one ocus: to reduce costs. To me, waste is a cost. Energyis a cost. And when I was looking at how to solve these challenges, I wanted to exploreall o the possibilities. I was surrounded by people thinking green, and we determined thatwind energy was the most appropriate solution or our region, our speci c site and ourculture. The community response has been wonder ul. People who live here are very proudto have the rst wind turbine in the province. And this initiative was also very energizing

to all o us at P&G.

17%

The turbine powers 17% o theplants annual energy needs.

5,500

Megawatt hours o energyproduced per year.

Vincent Struzka on top o the100-meter wind turbine.



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Committed to SupplierEnvironmental Per ormanceExpanding the supplier scorecard. In 2010, P&G issued its rst environmental sustainability

supplier scorecard. The scorecard was designed to track and encourage our suppliersown improvements in environmental metrics such as energy, water, waste, greenhouse gasemissions, and innovation. This tool was also intended to build better collaboration acrossthe supply chain and accelerate sustainable innovation.

Year-one results showed that the scorecard was relevant across the wide range o industriesour suppliers represent. Most suppliers were able to report on the majority o metrics werequested. The scorecard also proved to be an e ective way to generate sustainable innovationideas rom our suppliers, 38% o whom submitted ideas in the rst year.

In 2011 we issued a revised scorecard, incorporating supplier eedback rom the prior yearsprocess. Unlike the rst year, when the scorecard was not mandatory to complete, the 2011scorecard actors into a suppliers rating and will a ect its ability to do more business with

P&G. Details on this open-source tool can be ound at www.pgsupplier.com.N E I L M c FA R L A N E , Director of Sustainability, Firmenich

Sustainability is at the heart o our values and integral to our strategy at Firmenich, and weare pleased to be a member o P&Gs supplier sustainability board. The group is a valuablenetwork or P&G suppliers to talk and discuss innovative ways o improving in the area oenvironmental sustainability. P&Gs leadership led to the development o an open-sourcescorecard, which is an important tool to standardize the scoring process across all industries.When we lled out the supplier scorecard, seeing the P&G-only numbers helped us identi yopportunities and make improvements along our Supply Chain. We also get inspiration romP&Gs ambition in this areaa good example being P&G targets on renewable energy use which we have built into our own 2015 objectives.

Scorecards Submittedby Industry

29% Packaging & Hygiene

14% Chemicals

10% Natural Commodities & Ingredients

9% Capital

9% Global Brand Building

8% Durables/Devices

7% External Manu acturing

7% Global Business Services

7% Logistics

38 %

o suppliers includedsustainable innovation ideasin their year-one scorecards.



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Committed to Sustainable DesignTaking our build ing e ciency global. To ensure ongoing excellence in the sustainabledesign o our operations, P&G has committed to LEED certi y all new construction omanu acturing plants, distribution centers, and o ce buildings.

LEED (Leadership in Energy and Environmental Design) is an internationally recognized greenbuilding certi cation system. Developed by the U.S. Green Building Council (USGBC), LEEDprovides building owners and operators with a ramework or identi ying and implementingpractical and measurable green building design, construction, operations and maintenancesolutions. As the global industry standard or sustainable design, LEED evaluates a acilityspotential impact in several areas, including CO2 emissions, energy, waste, water, andenvironmental quality.

P&Gs initial sites to pursue LEED certi cation include plants in Taicang, China; Box Elder, UT, USAand the Singapore Innovation Center.

S A RWA R S H A R E E F, Associate Director, P&G Global Facilities Engineering

LEEDs primary ocus is commercial buildings, so large-scale manu acturing acilities likeours bring added complexity in areas like energy per ormance and water e ciency. But weare adapting the LEED process globallywhether the project is in China or Brazil or Utah,you see a highly consistent level o rigor and per ormance. That takes a lot o education anddiligence among project teams, but we continue to move toward our certi cation goals.Its a process thats becoming part o our everyday work.

The Taicang, China, plantis one o P&Gs rst sites topursue LEED certi cation.

Credit:U.S. Green Building Council

Credit: U.S. Green Building Council



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Commitment toSocial Responsibility



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We believe that pro t responsibility and social responsibility must go hand-in-hand.Thats why touching and improving lives is at the heart o our business model, and itswhat motivates us to make a di erence in communities around the world. Throughour global Live, Learn and Thrive Social Responsibility programs, were demonstratingthat doing well and doing good can fow rom the same Purpose.

07 08 09 10 11

60 M 135 M 210 M 315 M

Goal(300 Million (M) cumulative)

LIVE, LEARN AND THRIVE Since July 2007

315Number o Children Reached million

P&G CHILDRENS SAFEDRINKING WATER PROGRAM Since July 2007

2.9Liters o Clean Water Delivered billion

115Days o Disease Prevented million

Lives Saved >14,000

GOALMET



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Committed to Disaster Relie Responding in moments o crisis. Over the past year, natural disasters had a devastatingimpact on people in many parts o the world. With compassion and care ul planning, wehave worked with relie partners to provide P&G products and services that help people eel

more like themselvesand help a temporary shelter eel more like home. Through theseservices that are directly connected to our brands, and through donations o products andcash, weve been able to help people in Japan, Pakistan, Australia, New Zealand, Haiti, andthe U.S. rebuild their lives.

I K U K O I M A M U R A , Team Leader, Fundraising Team, Marketing Department, World Vision Japan

A ter the tsunami hit, P&G provided shampoo and conditioner, which World Vision Japanincluded in 10,000 sanitary kits that were distributed to evacuee centers across the a ectedregion. As we were assembling the kits, an evacuee center requested the amily-size bottles oshampoo, instead o the smaller, travel-size bottles. P&G provided the bottles or World Visionto distribute. People were used to seeing the larger bottles in their own homes, and in a smallway, having them gave reassurance that they would someday go back to their normal lives.

Responding to the Japan Earthquake and Tsunami In response to the Japanearthquake and tsunami in March 2011, P&G sent shipments o Pampers diapers and wipes,Whisper eminine hygiene products, shampoo and conditioner into the hardest-hit areas.

Duracell Power Relie During the past years storms that struck many parts o the U.S.,Duracell Power Relie trucks were present with fashlights, batteries, and recharging stations

or mobile devices.

Tide Loads o Hope Tide Loads o Hope sent its mobile laundromat to areas across theU.S., with more than 32 energy-e cient washers and dryers that can clean over 300 loads olaundry per day.

P&G Childrens Sa e Drinking Water Program In July and August o 2010, we mountedour largest-ever disaster relie response to provide clean water to people in Pakistan a ected

by fooding.



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Helping more than

300,000children in need.

Venezuela, Mexico, Brazil,Chile, Colombia, Argentina,Peru, Costa Rica, Guatemala

and Panama

Committed to Child Development

Partnering to expand the United Way. In Latin America, P&G has helped start upnew United Way organizations across Venezuela, Mexico, Brazil, Chile, Colombia, Argentina,Peru, Costa Rica, Guatemala, and Panama. P&G people play active roles in these organizations.Many o our executives serve as board members. Employees rom all levels o the Companycontribute their passion and expertise on various committees and activities, and also make

nancial donations.

P&G and the United Way have championed a fagship program called Nacer Aprendiendo(Early Learning). The program promotes broad public awareness o early learning, and hasdeveloped a variety o tools, materials and interventions ranging rom Ludotecas (Learn & PlayCenters) in rural areas, to quali ying Community Mothers who take care o children whiletheir mothers are at work.

P&G Latin America and its employees have collected and invested millions o dollars orNacer Aprendiendo, helping vulnerable communities across Latin America and bene tingmore than 300,000 children in need.

M A R I A D E L R O S A R I O S I N T E S , Regional Vice President Latin America, United Way Worldwide

From P&G, weve gained strategic insight and direction that have changed the way we thinkabout our programs. We had a meeting with P&G where we had all o the Latin AmericanUnited Way organizations together. It was an important moment because we started thinkingbeyond our individual, local programs, and more about a coordinated approach to regionalprograms. The Nacer Aprendiendo program was the result, and were now using it to developa model that other organizations can ollow.



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Committed to Employee VolunteeringStrengthening our community involvement. This year, P&G announced a renewedemphasis on connecting our employees to the Companys Social Responsibility programsas one more way all o us can experience and participate in our Purpose more deeply.

We have a long heritage o volunteerism in our Company. P&G people continue to giveselfessly o their time to make our communities stronger and more vital places to live andwork. This has always been part o P&Gs DNA everywhere we do business.

Volunteering deepens our understanding and appreciation o those we serve and seek toserve. Whether we volunteer close to home or thousands o miles away, we see how otherslive. We learn about their challenges and their joys. We uncover insights. These insightslead to innovations that can help us better meet their most undamental needs. In this way,were helping to improve lives, not just in the moment, but or generations to come.

K I R K P E R RY, President, Family Care

I have been with P&G or 21 years. I have worked and lived in three countries, and havetraveled the world. But I have never had the opportunity to develop the depth o relationship

as I did with the people with whom we lived and worked in Mexico. We spent time in theircurrent homes. We grew to understand their living conditions, how they got by, what theyaspired to, what they wanted. As we built their new homes, we took our in-home visits toa whole new level. The team walked away with a deeper commitment to deliver to our lowerincome consumers in a way we never have be ore (regardless o where we were rom).We truly saw how we, and our brands, can touch and improve consumers lives. No ocusgroup, 1:1 interview or in-home visit could have given us this depth.

P&G volunteers per orm skits on dental hygienewith migrant Chinese children.

We introduced three volunteeringprograms and encouragedall employees to take part.

Individual VolunteeringOpportunities in our local communities

that employees can participate inon their own, or with their amilies.

Team BuildingOpportunities or colleagues to improveli e together, in communities where they

live and work.

Global Service TripsA new program or employees to assist

one o three Live, Learn and Thriveprograms in Mexico, China, or Malawi.



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This renewed emphasis on committing employee time to gathering consumer and market insights,while helping address some o the worlds most important social challenges, is just one step on our

journey to serve and improve the lives o more people, in more parts o the world, more completely.This is true in the communities where our employees live and work, but it was especially evident oremployees who participated in the irst round o Global Service Trips in April and May 2011.

Providing Clean Drinking WaterBeyond the birth o my own children, being a part o P&Gs GlobalService Trip to Malawi was the most li e-changing experience o

my li e. In our week in A rica, our team o 11 incredible employeeshelped provide clean water to dozens o villages and thousandso people. Not surprisingly, one o our greatest insights was theimportance o access to water. While P&Gs PUR technology canmake contaminated water sources sa e to drink, having limitedaccess to water can inhibit the health and vibrancy o a community imagine not being able to easily wash your hair or brush your teethbecause the nearest water source is miles away. This understandingmay lead to innovations that can help P&G improve the everydaylives o those we served in Malawi and around the world.

H E AT H E R J A R R E T T P&G United States, Sales

Global Service Tripto Malawi

M A L AW I

Teaching HygieneTeaching migrant children in the outskirts o Shanghai was,

or lack o a better word, amazing. Our Global Service Team o16 P&Gers witnessed rsthand the challenging conditions inwhich these migrant amilies livetiny apartments withoutclean water, parents with only one day o each month, children

without the right to ree education outside their home town.We were able to impact the childrens lives in a number o ways,but the insights we gained related to the childrens health andhygiene in the schools were the most power ul. We were ableto use P&Gs expertise in oral care and handwashing to makea di erence or the children that will continue or years(and, hope ully, generations) to come.

J U R A J S L O TA P&G Czech Republic,

Business Analyst

Global Service Tripto China

C H I N A

Creating HomesOur team o 20 P&Gers had never met be ore, but we shareda common desire to help improve li e or the three amilies weserved. Be ore our visit, each amily slept in shared beds incramped rooms in houses with holes and asbestos in the roo .Yet they held to dreams o new homes and better opportunities

or their children. As we worked side-by-side with the amilies, welearned the importance o community and identi ed opportunities

or P&G innovations that could be shared by multiple amiliesto help keep them and their children sa e and healthy. What ablessing that our P&G team rom around the world could helpprovide shelter to the hard-working amilies we served whilecommitting to making a d i erence in the uture as well.

M A R C O S A . S A L A S

P&G Venezuela, R&DGlobal Service Tripto Mexico

M E X I C O



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Resource & Waste SummaryThe table below reports environmental statistics or Manu acturing Operations in the Global Business Units, Technical Centers, and DistributionCenters. It refects d ivestiture o Western European Tissue/Towel, Co ee, and Pharmaceutical Businesses.

Totals (absolute units x 1,000) 2011 Global Business Unit Detail (1) (absolute units x 1,000)

2011 2010 2009 Beauty GroomingHealth

CareSnacks and

Pet Care

Fabric Careand Home

Care

Baby Careand Family

CareTechnical

CentersDistribution

Centers

Production (metric tons)

Product Shipped , , , , , , , ,

Raw Materials rom Recycled Sources ,

Waste ( metric tons )

Generated Waste , ,

Percent Recycled / Reused Waste % % % % % % % % % % %

Disposed Waste (metric tons)

Solid Waste Non-Hazardous

Solid Waste Hazardous ( )

E fuents (excluding water)

Air Emissions (3)

Other

Energy Consumption (gigajoules ) , , , , , , , , , ,

Greenhouse Gas Emissions (metric tons) (4) , , , ,

Water Consumption (cubic meters ) , , , , , , , , ,

SARA Releases (metric tons) (5) . . . . . . . . . . .

1 metric ton = 1,000 kg = 2,205 lbs.

(1) Beauty includes Hair Care and Personal Beauty Care. Grooming includes Blades and Razors, and Devices. Health Care includes Personal Health Care, Feminine Care and Oral Care. Snacks andPet Care includes Snacks and Pet Care. Fabric Care and Home Care includes Fabric Care, Home Care, and Batteries. Baby Care and Family Care includes Baby Care and Family Care. TechnicalCenters includes each o the technical and research centers that support the business units. Distribution Centers includes acilities that distribute nished product. 2011 numbers come romP&G manu acturing sites only; they do not include production rom contract manu acturing operations.

(2) Refects corrected in ormation listed in the 2010 report.

(3) Air emissions include particulates, SO 2, NOx, CO and VOC.

(4) Greenhouse gas emissions resulting rom uel combustion sources.

(5) Releases de ned in the U.S. Super und Amendments and Reauthorization Act (SARA) by the U.S. Environmental Protection Agency.

P&G is recognized as a leading global company, including a #5ranking on Fortunes Global Most Admired Companies, the #10ranking on Barrons Worlds Most Respected Companies List,

a #25 ranking on Business Weeks list o Worlds Most InnovativeCompanies, a #3 ranking on the AMR Research Supply Chain Top 25, top rankings on the Dow Jones Sustainability Indexes rom 2000to 2011, a ranking on the list o the Global 100 Most SustainableCorporations in the World, and a consistent #1 ranking within our

industry on Fortunes Most Admired list or 26 o 27 total years and or14 years in a row. In 2010, P&G was recognized by SymphonyIRI Groupas the most innovative manu acturer in the consumer packaged

goods industry or the last decade

presenting the Company withits Outstanding Achievement in Innovation award. This year, P&Gwas again recognized by SymphonyIRI Group or using innovation tolaunch our o the ten most success ul new products o 2010.

P&G at a Glance

%

%

%

%

%

%

By business segment

Beauty

Grooming

Health Care

Snacks & Pet Care

Fabric Care & Home CareBaby Care & Family Care

%

%

%

%

%

By geographic region

North America

Western Europe

Central & Eastern Europe,Middle East & Africa

Latin America

Asia

% %

By market maturity

Developed

Developing

2011 Net Sales



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Long-term Environmental Sustainability Vision and 2020 GoalsP&G is the largest consumer packaged goods company in the worldtoday. This very act, coupled with our Purpose-inspired GrowthStrategy improving the lives o more consumers, in more parts

o the world, more completely

requires us to continue to growresponsibly.

In September 2010, we announced a long-term environmentalsustainability vision or our Company that establishes utureexpectations or our per ormance.

We wont reach this vision overnight; in act, it will take decades toachieve. So, we have set goals or 2020 to hold ourselves accountableto making progress toward our vision.

Our Long-Term Environmental Sustainability Vision includes:

Using 100% renewable or recycled materials or allproducts and packaging

Powering our plants with 100% renewable energy

Having zero consumer or manu acturing wastego to landflls

Designing products to delight consumers whilemaximizing the conservation o resources

For more in ormation on our long-term vision, go to www.pg.com/sustainability.

2020 ENVIRONMENTAL SUSTAINABILITY GOALS

Renewable Energy 30%Powering Our Plants

Manu acturing Waste to Land ll


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pg 2011 sustainability overview

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