Contents•

Introduction•

2020 Goals Progress•

P&G Profile•

2013 Sustainability Report

Environmental Sustainability•

Social Responsibility•

GRI Index

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Contents•

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability•

NOTE TO PDF USER

About This Publication

This is the 15th Sustainability Report for
Procter and Gamble’s worldwide operations.
Data in this report covers the period from
July 1, 2012, through June 30, 2013.
Financial information is given in U.S. dollars.
This report was prepared using the Global
Reporting Initiative’s (GRI) G3 Reporting
Guidelines. The mission of the GRI is topromote international harmonization in thereporting of relevant and credible corporate
economic, environmental, and social
performance information to enhance
responsible decision-making. The GRI has
not verified the contents of this report, nordoes it take a position on the reliability of
information reported herein.
For further information about the GRI, please visit:www.globalreporting.org.
F or the latest P&G news, in-depth information
on P&G’s brands, and for shareholder and career
information, please visit: www.pg.com.

This PDF utilizes
interactive elements.
Click on contents and hyperlinks
for easy navigation.

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Contents•

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability•

Social Responsibility

P&G SUSTAINABILITY PROGRAM
At P&G, we are focused on making every day better for people and theplanet through how we innovate and how we act. This concept is embeddedin the way we operate — ensuring our products are safe, paying competitive
wages, complying with all laws, and treating all individuals with respect.
We’ve also found we have an opportunity to leverage our size and scale toaddress the environmental and social issues that affect our business. The chart
below outlines the core focus areas for our environmental and social efforts.

+
Conservation of Resources
Renewable Resources
Worth from Waste

www.pg.com/sustainability

Comforts of Home
Health and Hygiene•

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Contents•

Introduction•

2020 Goals ProgressContents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
CEO Statement. . . . . . . . . . . . . . . . . . . . . . . . .5
Leadership Statement . . . . . . . . . . . . . . . . . . . 62020 Goals Progress . . . . . . . . . . . . . . . . . . . . 8
P&G Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Our Purpose, Values, and Principles. . . . . . . . 10
Leadership Brands. . . . . . . . . . . . . . . . . . . . . 12
P&G at a Glance. . . . . . . . . . . . . . . . . . . . . . . 13
Acquisitions. . . . . . . . . . . . . . . . . . . . . . . . . . 14
Proceeds from Asset Sales. . . . . . . . . . . . . . . 14
Global Purchases. . . . . . . . . . . . . . . . . . . . . . 14
Economic Development. . . . . . . . . . . . . . . . . 14
Organizational Structure . . . . . . . . . . . . . . . . 15
Manufacturing and Outsourcing. . . . . . . . . . 16
P&G Plant Locations. . . . . . . . . . . . . . . . . . . . 17
Governance. . . . . . . . . . . . . . . . . . . . . . . . . . 20
Political Involvement . . . . . . . . . . . . . . . . . . . 21
Principal Industry and Business Associations. 21
Business Continuity . . . . . . . . . . . . . . . . . . . . 21
Product Safety. . . . . . . . . . . . . . . . . . . . . . . . 22•

P&G Profile•

Environmental Sustainability•

Social Responsibility

Environmental Sustainability. . . . . . . . . . . . . 23
Conservation of Resources. . . . . . . . . . . . . . . 25
Cold Water Washing . . . . . . . . . . . . . . . . 25
Packaging Reduction. . . . . . . . . . . . . . . . 26
Energy and CO2. . . . . . . . . . . . . . . . . . . . 27
Truck Transportation . . . . . . . . . . . . . . . . 28
Water. . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Renewable Resources . . . . . . . . . . . . . . . . . . 30
Renewable Energy. . . . . . . . . . . . . . . . . . 30
Renewable Materials . . . . . . . . . . . . . . . . 31
Sustainable Forestry. . . . . . . . . . . . . . . . . 31
Wood Pulp. . . . . . . . . . . . . . . . . . . . . . . . 31
Pulp Sources. . . . . . . . . . . . . . . . . . . . . . . 31
Palm Oil. . . . . . . . . . . . . . . . . . . . . . . . . . 32
Results. . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Paper Packaging. . . . . . . . . . . . . . . . . . . . 33
Worth from Waste. . . . . . . . . . . . . . . . . . . . . 34
Manufacturing Waste. . . . . . . . . . . . . . . 34
Consumer Waste. . . . . . . . . . . . . . . . . . . 34
Resource and Waste Summary Table. . . . . . . 35•

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Social Responsibility. . . . . . . . . . . . . . . . . . . . 36
Social Responsibility Programs. . . . . . . . . . . . 37
Comforts of Home. . . . . . . . . . . . . . . . . . 39
Health and Hygiene. . . . . . . . . . . . . . . . . 40
Social Responsibility Policies and Practices. . . 41
Human Rights. . . . . . . . . . . . . . . . . . . . . . 42
Human Resources. . . . . . . . . . . . . . . . . . . 42
Diversity & Inclusion. . . . . . . . . . . . . . . . . 43
Global Medical. . . . . . . . . . . . . . . . . . . . . 45
Worldwide Health, Safety, andEnvironment Systems. . . . . . . . . . . . . . . . 47
Compliance with Laws
and Regulations. . . . . . . . . . . . . . . . . . . . 50
Notices of Violation. . . . . . . . . . . . . . . . . 50
Air Emissions . . . . . . . . . . . . . . . . . . . . . . 50
SARA 313 Releases. . . . . . . . . . . . . . . . . . 50
Stakeholder Engagement. . . . . . . . . . . . . 51
Advertising and Promoting
to Consumers Appropriately. . . . . . . . . . . 52
Eliminating Research Involving Animals. . . 52
Sustainability Guidelines forExternal Business Partners . . . . . . . . . . . . 53
Summary of Our Guidelines. . . . . . . . . . . 53
Supplier Diversity. . . . . . . . . . . . . . . . . . . 54
Personal Information Privacy. . . . . . . . . . . . . 54
Policies & Management Systems. . . . . . . . . . 55
GRI Index. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

www.pg.com/sustainability

Contents•

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability•

Social Responsibility•

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A.G. Lafley
Chairman of the Board,
President andChief Executive Officer

resource efficiency of our products. For years, Tide Coldwater and
Downy Single Rinse have been products that deliver outstanding
product performance while also enabling consumers to conserve
energy and water.

CEO Statement
P&G is a company of brands. We earn consumers’ trust with thepromise each of our brands makes to improve people’s lives andproduct usage experiences that live up to those promises. Our
success depends on our ability to understand the consumer —who is our boss. It is through deep understanding of consumers
that we gain insights into what they need and want. Sustainability
is an area where we have learned much. People have told us thatthey want sustainable products with no tradeoffs. They wantproducts that don’t ask them to pay more or expect less.
We’ve embraced this challenge. P&G brands help people
throughout the world live more sustainably by continually
improving product performance and benefits through innovation
and by continually increasing the levels of conservation and

At a company level, P&G’s environmental efforts are focused onconserving resources, using renewable resources, and finding
innovative ways to recycle or reuse waste from our products andoperations. Our long-term sustainability vision is demanding.
Reaching our vision of 100% renewable energy and zero waste
going to landfill is not going to happen overnight, but we haveset short-term and intermediate goals to ensure we make steadyprogress, which we are doing. For example, more than 50 of
our manufacturing sites around the world now send zero
manufacturing waste to landfill; we’ve done this, in large part, bypartnering with suppliers to recycle material or convert waste into
energy. In addition to having a positive environmental impact,these efforts have created over $1 billion in value for P&G in sales
and cost savings.
At a social sustainability level, P&G’s efforts focus on sharing the
comforts of home and improving health and hygiene for people inneed. These are areas where P&G can offer unique value with our
products, our expertise, and our partnerships. P&G’s Children’s
Safe Drinking Water program is a cornerstone of these efforts. It
leverages P&G’s innovative technology to make dirty, dangerous

FINDING THE WORTH IN WASTE

By changing the way we see waste — fromsomething thrown away to something withvalue — we have achieved zero manufacturing
waste to landfill at 50 P&G sites worldwide.
At these sites, all manufacturing waste isrecycled, repurposed or converted into
energy. Waste from our Charmin plant in
Mexico is now used to make roof tiles forwater clean enough to drink in only thirty minutes. We recently
celebrated six billion liters of water shared around the world,
saving an estimated 33,000 lives.
Due to the ever-increasing importance of sustainability to P&G
and to the people we serve, I have named Martin Riant, Group
President of Global Baby, Feminine & Family Care, as executive
sponsor of sustainability. He will ensure that the Company’s
senior executive leadership is fully engaged in delivering P&G’s
sustainability vision and goals.
Sustainability will continue to be an important component of
P&G’s ability to improve consumers’ lives and to create value
for shareholders.

A.G. Lafley
Chairman of the Board, President and Chief Executive Officer

EXEMPLIFYING OUR VISION

the local community, while scraps from a
U.S. Pampers site are converted into
upholstery filling. In the U.K., waste from
Gillette shaving foam is composted andused to grow grass for commercial use.
Over the past five years, our work to findworth in waste has created over $1 billion
in value for the Company.

This year, P&G opened our most sustainablesite to date — the Taicang Plant andDistribution Center in Jiangsu, China.
Taicang is the first P&G plant in the world
to achieve LEED Gold certifications foradministration buildings and Silver for
manufacturing sites. Taicang was designed
as a “factory inspired by a garden,” so theplant models many aspects of our long-term

environmental vision. The site runs on
100% renewable wind electricity, sends
zero manufacturing waste to landfill,
and is designed to use significantly lesswater than similar P&G Hair Care productionlines in the region. Sustainability was not
only part of the design, but has become
part of the plant’s overall operating culture.

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2020 Goals Progress•

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Environmental Sustainability•

Social Responsibility•

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Len Sauers• Over 50 of our sites around the world now send zero
manufacturing waste to landfill, including every single
one of our sites in Germany.

Vice President,
Global Sustainability

Fortunately, many of the partnerships we’ve forged are alreadyproving powerful. For example, earlier this year, we declared acommitment to work with our suppliers to convert 20% of our• We have helped increase the number of washing machineloads washed in cold water from 38% to 50% since FY10/11.
• Our Gillette Venus packaging was redesigned for
Venus & Olay to be recyclable and is manufactured
using 26% less plastic.

Leadership Statement
When we announced our long-term environmental vision
three years ago, we set goals for 2020 to ensure we weremaking measurable progress. Our results to date can befound on page 8. While we are proud of the progress wehave achieved, we know there is still much work to be done.
Some of the highlights from the past year include:• Our Huangpu, China plant partnered with a local utility
supplier to install solar panels on the plant’s rooftop.
This installation will eliminate 600 metric tons of CO2
emissions annually from the local community.
• We’ve continued the global expansion of Tide PODS, which
is one of the most concentrated detergents in the market
and reduces plastic use by 50% per consumer.

• At our Oxnard, California site, we reduced water use bynearly 25%, resulting in a cost savings of over $900,000
on an annualized basis.
• Through our social programs, we have reached our goalof improving the lives of over 50 million people this year.
Many of the challenges that we face in advancing sustainability
are impossible to achieve on our own. Much of this work will
require us to partner with companies, governments, consumers,
NGOs, and academia on common issues and work toward
integrated solutions. We know that long-term, quality
partnerships are critical — specifically in areas where it will takecross-industry effort to advance goals like 100% renewableenergy and zero net deforestation.

PARTNERSHIPS FOR EMPOWERMENT

P&G hair care brands are partnering withcharitable organizations to improve theeveryday lives of people around the world.
WELLA Professionals and UNICEF created
Making Waves, which teaches life skills andhairdressing to vulnerable young people inemerging countries. Since 2010, more than
7,000 young people in Brazil and Romania
have benefited from the program.

We have helped
increase the numberof washing machineloads washing in cold
water from 38% to
50% since FY10/11.

for-hire North American truck loads to natural gas, delivering
cost savings and reducing greenhouse gas emissions by
nearly 5,000 metric tons a year — equivalent to 1,000 passenger
vehicles. In the area of renewable resources, we’ve partneredwith industry leaders Coke, Ford, Nike and H.J. Heinz Company
to make plastic polymers and fibers from plants.

THE PACKAGE THAT HAS IT ALL

Pantene Beautiful Lengths is a programthat uses hair donations to produce realhair wigs for women with cancer. Since
2006, the campaign has received morethan 480,000 hair donations and partneredwith the American Cancer Society to deliver
more than 28,000 free wigs. In 2012, theprogram was expanded to Australia and
New Zealand.

We’ve redesigned the Gillette Venus razor
packaging for Venus & Olay to be bothcost-effective and better for theenvironment. Made from plastic (PET),
recycled plastic (rPET), and paperboard, it isrecyclable and uses 26% less plastic in the
manufacturing process. Packages are now

packed more densely in distribution,
generating significant cost savings anddecreasing carbon emissions fromtransportation. This new package meets
consumer needs, while cutting costs andhelping us make progress toward oursustainability goals.

Contents•

Introduction••

2020 Goals Progress

6 billion litersof safe drinking water provided
to keep children and theirfamilies healthy

P&G Profile•

Environmental Sustainability•

Social Responsibility

Partnerships are also key to our work to make everyday life betterfor people around the world. Knowing that the frequency andintensity of natural disasters is increasing, we have partnered to
improve the lives of millions of people through our disaster relief
efforts. When a disaster strikes our communities, our employees

3,000 employees
will volunteer this year to build
homes in 12 countries

5,000 metric tonsof greenhouse gas will be avoided
each year by converting for-hiretrucks to natural gas

50 sitesaround the world at zero
manufacturing waste to landfill

Partnerships are key
to our work to
make everyday life
better for people
around the world.

and our brands are committed to meeting the needs of thoseaffected by providing the products we know people have cometo count on in the everyday moments of their lives. Whether it’ssharing power for a flashlight and the comfort of clean clothes
after a tornado or sharing life-saving clean drinking water after atyphoon, our brands help ensure families can focus on each other•

GRI Index

and on rebuilding their lives. Our partnership with the Red Cross
enables us to respond quickly in areas where the need is greatest.
As part of our commitment to provide the comforts of home,
we announced a partnership with Habitat for Humanity to fundthe building, repair, and cleaning of homes for families aroundthe world. We know that 100 million people around the world
are homeless and 1.6 million more live in substandard housing,so P&G employees and brands are aiming to make a small but
meaningful impact in the lives of some of these families in
Singapore, the United States, Malaysia, South Africa, Poland,
Costa Rica, and in many other countries. In fact, nearly 3,000
employees will volunteer their time to benefit families in 12
countries around the world this year.
All of these efforts mark significant progress throughpartnerships toward helping people live every day better —and more sustainably. We look forward to deepening ourexisting partnerships and forging new ones as we work
toward our goals and the future of 7 billion people.

Len Sauers
Vice President, Global Sustainability

COMING TOGETHER IN TIMES OF DISASTER

Natural disasters are occurring more
frequently and having a greater impact
on our people, operations, and consumers,
as well as the surrounding environment.
When disaster strikes, P&G brands andemployees join together to provide theeveryday products people count on.
Our brands help ensure that families canfocus on rebuilding their lives with dignity.

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Here are some of the events we responded
to this year:

loads of products like Charmin, Bounty,
Mr. Clean, Dawn and Pampers.

• October 2012: Hurricane Sandy was themost destructive hurricane of the 2012
Atlantic season, hitting the Northeastern
United States. P&G responded with one of
our longest deployments to date, sending
the Duracell Rapid Responder, Tide Loads
of Hope, and donating more than 20 truck• October 2012: To respond to the Assamfloods in India, P&G donated products
such as Whisper, Tide, Pantene, Head &Shoulders and Vicks through our partner,
Save the Children.
• November 2012: A 7.4 earthquake shook
Guatemala, causing major damage inseveral communities. P&G donated$180,000 in feminine, baby and familycare products.
• December 2012: A typhoon hit Pablo,
Philippines, affecting over 6.2 million
people. Partnering with World Vision,
P&G distributed 140,000 sachets of P&G
Purifier of Water to make floodwaters
clean enough to drink.

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Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability•

Social Responsibility•

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8 of 632020 Goals Progress
In 2010 we set ten-year goals within our Environmental and Social programs.
This chart reflects our progress toward those goals.
Goal
ENVIRONMENTAL

Progress

Conservation of Resources• Reduce energy use at P&G facilities and total CO2 (Scope 1 and Scope 2)
20% per unit of production by 2020.*• Since 2010, we have reduced our energy usage by 8% and our total CO2 emissions(Scope 1 + 2) by 11% per unit of production.

• 70% of all machine washing loads are washed in cold water.

• Since FY10/11, the percentage of global washing machine loads washed in cold water
increased from 38% to 50%.

• Reduce truck transportation kilometers by 20% per unit of production.

• Since 2010, we have reduced truck transportation kilometers by approximately 12%
per unit of production.

• Reduce packaging by 20% per consumer use.*• Since 2010, we have reduced packaging by ~ 4.5% per consumer use.

Renewable Resources• Plants are powered by 30% renewable energy.

• Our use of renewable energy is ~ 7.5%. We continue to evaluate and expand our portfolioof energy sources.

• Replace 25% of petroleum-based materials with sustainably sourced
renewable materials.*• We have successfully commercialized bioplastic in some shampoo bottles and are moving
towards pilot scale operations for some other key material classes.

• Confirm that all palm oil purchases have originated from responsible andsustainable sources by 2015.

• 13% of our total 2012/2013 annual consumption of palm oil, palm kernel oil, and derivatives
was RSPO certified via a combination of Mass Balance and Book and Claim methodology.

• Have 100% of the virgin wood fiber used in our tissue/towel and absorbent
hygiene products be third-party certified by 2015.

• Approximately 97% of our virgin wood fiber was third-party certified.

• Have 40% of the virgin wood fiber used in our tissue/towel products be
FSC certified by 2015.

• Approximately 9% of our virgin wood fiber was FSC certified.

• Have 100% of our paper packaging contain either recycled or third-party
certified virgin content by 2020.

• We have trained our organization on our new policy expectations and started outreach withkey suppliers. We will be refining data collection protocols for suppliers over the next year.

Worth From Waste

SOCIAL* Versus 2010 baseline.

• Conduct pilot studies in both the developed and developing world to understandhow to eliminate landfilled/dumped solid waste.

• Several locations are being evaluated to be the pilot site of the Waste-2-Worth projectin the Philippines.

• Reduce manufacturing waste to landfill to less than 0.5% of input materials.

• Since 2010 we have reduced the manufacturing waste to 0.65% of input materials.

Social Program Goals• Improve the lives of 50 million people each year.

• P&G has exceeded this goal for 2012/13, with a focus on providing the comforts of home,
and improving health and hygiene for people in need.

• Save one life every hour by 2020.

• P&G Children’s Safe Drinking Water program delivered over 1.2 billion liters of clean water
this year, and is on track to meet our goal of “Saving One Life Every Hour” by 2020.

Contents•

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability

P&G Profile
P&G serves approximately 4.8 billion people around the world withits brands. The Company has one of the strongest portfolios of trusted,
quality, leadership brands, including Ace,® Always,® Ambi Pur,® Ariel,®
Bounty,® Charmin,® Crest,® Dawn,® Downy,® Duracell,® Fairy,® Febreze,®
Fusion,® Gain,® Gillette,® Head & Shoulders,® Iams,® Lenor,® Mach3,® Olay,®
Oral-B,® Pampers,® Pantene,® Prestobarba,® SK-II,® Tide,® Vicks,® Wella,®
and Whisper.® Our products are sold in more than 180 countries andterritories primarily through mass merchandisers, grocery stores,
membership club stores, drug stores, department stores, salons, andhigh frequency stores. We continue to expand our presence in otherchannels, including perfumeries, pharmacies, and e-commerce. We haveon-the-ground operations in approximately 70 countries and haveapproximately 120,000 employees.
P&G is a publicly traded company. Its stock is listed and traded on the
New York Stock Exchange and NYSE Euronext–Paris under the symbol “PG.”P lease visit www.pg.com for the latest
news and in-depth information about
P&G and its brands.

•

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Introduction•

2020 Goals Progress

Our Purpose, Values,
and Principles
Taken together, our Purpose, Values andPrinciples are the foundation for P&G’s
unique culture. Throughout our history ofover 175 years, our business has grown
and changed while these elements haveendured, and they will continue to bepassed down to generations of P&G
people to come.
Our Purpose unifies us in a common cause andgrowth strategy of improving more consumers’
lives in small but meaningful ways each day. It
inspires P&G people to make a positive
contribution every day.

•P&G Profile•

Environmental Sustainability•

Social Responsibility•

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GRI Index

Our Values

Ownership

Trust

P&G is its people and the values by which welive. We attract and recruit the finest people
in the world. We build our organization fromwithin, promoting and rewarding people
without regard to any difference unrelated toperformance. We act on the conviction thatthe men and women of Procter & Gamble will
always be our most important asset.

• We accept personal accountability to meet thebusiness needs, improve our systems, and help
others improve their effectiveness.

• We respect our P&G colleagues, customers,
and consumers, and treat them as we want
to be treated.

• We all act like owners, treating the Company’s
assets as our own and behaving with theCompany’s long-term success in mind.

• We have confidence in each other’scapabilities and intentions.

Integrity• We always try to do the right thing.

• We are determined to be the best at doing
what matters most.

• We are honest and straightforward witheach other.

• We have a healthy dissatisfaction with thestatus quo.

• We operate within the letter and spiritof the law.

• We have a compelling desire to improve andto win in the marketplace.

Passion for Winning• We believe that people work best when there
is a foundation of trust.

Our Values reflect the behaviors that shape thetone of how we work with each other and with
our partners.

• We uphold the values and principles of
P&G in every action and decision.

And Our Principles articulate P&G’s uniqueapproach to conducting work every day.

• We are data-based and intellectuallyhonest in advocating proposals, including
recognizing risks.

Our Purpose

Leadership

P&G Values

We will provide branded products and servicesof superior quality and value that improve thelives of the world’s consumers, now and forgenerations to come.

• We are all leaders in our area of responsibility,with a deep commitment to deliver leadershipresults.

Integrity
Leadership
Ownership
Passion for Winning
Trust• We have a clear vision of where we are going.
As a result, consumers will reward us withleadership sales, profit, and value creation,
allowing our people, our shareholders, andthe communities in which we live and work
to prosper.

www.pg.com/sustainability• We focus our resources to achieve leadershipobjectives and strategies.
• We develop the capability to deliver our
strategies and eliminate organizational barriers.

Consumers

P&G
BrandsP&G
PeopleP&G Brands and P&G People are thefoundation of P&G’s success. P&G People
bring the values to life as we focus on
improving the lives of the world’s consumers.

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Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability

Our Principles

Innovation Is The Cornerstone of
Our Success

These are the Principles and supporting
behaviors which flow from our Purpose
and Values.

• We place great value on big, new consumer
innovations.

We Show Respect for All Individuals• We believe that all individuals can and wantto contribute to their fullest potential.
• We value differences.
• We inspire and enable people to achieve highexpectations, standards and challenging goals.
• We are honest with people about theirperformance.

The Interests of The Company
and The Individual Are Inseparable• We believe that doing what is right for thebusiness with integrity will lead to mutual
success for both the Company and theindividual. Our quest for mutual success ties
us together.
• We encourage stock ownership andownership behavior.

We Are Strategically Focused in
Our Work• We operate against clearly articulated andaligned objectives and strategies.
• We only do work and only ask for work that
adds value to the business.
• We simplify, standardize and streamline ourcurrent work whenever possible.

www.pg.com/sustainability• We challenge convention and reinvent
the way we do business to better win in
the marketplace.

We incorporate
Sustainability into our
products, packaging,and operations.
We Are Externally Focused• We develop superior understanding of
consumers and their needs.
• We create and deliver products, packaging,and concepts that build winning brand equities.
• We develop close, mutually productive
relationships with our customers and our
suppliers.
• We are good corporate citizens.
• We incorporate sustainability into our
products, packaging, and operations.

•Social Responsibility•

We Value Personal Mastery• We believe it is the responsibility of all
individuals to continually develop themselves
and others.
• We encourage and expect outstanding
technical mastery and executional excellence.

We Seek to Be The Best• We strive to be the best in all areas ofstrategic importance to the Company.
• We benchmark our performance rigorously
versus the very best internally and externally.
• We learn from both our successes andour failures.

Mutual Interdependency Is a
Way of Life
• We work together with confidence and trust
across business units, functions, categories,
and geographies.
• We take pride in results from reapplying
others’ ideas.
• We build superior relationships with all theparties who contribute to fulfilling our
Corporate Purpose, including our customers,
suppliers, universities, and governments.
T o learn more about our Purpose,
Values and Principles, please go to:www.pg.com/en_US/company/purpose_people/pvp.shtml.

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2020 Goals Progress•

P&G Profile•

Environmental Sustainability••

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GRI Index

Leadership Brands
Brands with strong equities in the minds of consumers.
Brands that retailers want in their stores.
Brands that are platforms for innovation.

www.pg.com/sustainability

50

P&G’s 50 Leadership
Brands are some of theworld’s most well-known
household names.

90%

These 50 brands
represent more than
90% of P&G sales
and profits.

25

25 of these 50 brands
are our Billion-Dollar
Brands, each generating
more than $1 billion in
annual sales.

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GRI Index

P&G at a Glance
Financial Highlights (unaudited)2013 Net Sales

Amounts in millions, except per share amounts
Net Sales

2013

2012

2011

2010

2009

$84,167$83,680$81,104$77,567$75,295

Operating Income

14,481

13,292

15,495

15,732

15,188Net Earnings attributable to Procter & Gamble

11,312

10,756

11,797

12,736

13,436Net Earnings Margin from Continuing Operations
Diluted Net Earnings per Common Share from Continuing Operations (1)

13.5%

11.1%

14.4%

14.0%

14.1%

$  3.86$  3.12$  3.85$  3.47$  3.35

Diluted Net Earnings per Common Share (1)

3.86

3.66

3.93

4.11

4.26

Dividends per Common Share

2.29

2.14

1.97

1.80

1.64

(1) Diluted net earnings per share are calculated on net earnings attributable to Procter & Gamble.

By Business Segment (2)
20%

24%
9%

32%

15%

By Geographic Region
15%
10%

Reportable Segment% of
Net Sales*% of
Net Earnings*

GBUs (Categories)

Billion Dollar Brands

BEAUTY

24%

21% Beauty Care (Antiperspirant and Deodorant, Cosmetics, Personal Cleansing,
Skin Care); Hair Care and Color; Prestige (SK-II, Fragrances); Salon Professional

Head & Shoulders,Olay, Pantene,
SK-II, Wella

GROOMING

9%16% Shave Care (Blades and Razors, Pre- and Post-Shave Products);
Braun and Appliances

Fusion, Gillette,
Mach3, Prestobarba

HEALTH CARE

15%

17% Feminine Care (Feminine Care, Incontinence); Oral Care (Toothbrush, Toothpaste, Always, Crest,
Other Oral Care); Personal Health Care (Gastrointestinal, Rapid Diagnostics,
Oral-B, Vicks
Respiratory, Other Personal Health Care, Vitamins/Minerals/Supplements)

FABRIC CARE AND HOME CARE

32%

27% Fabric Care (Bleach and Laundry Additives, Fabric Enhancers, Laundry
Detergents); Home Care (Air Care, Dish Care, Surface Care); Personal Power(Batteries); Pet Care; ProfessionalAce, Ariel, Dawn,
Downy, Duracell,Febreze, Gain,Iams, Tide

BABY CARE AND FAMILY CARE

20%

19% Baby Care (Baby Wipes, Diapers and Pants); Family Care (Paper Towels,
Tissues, Toilet Paper)

Bounty, Charmin,
Pampers* Percent of net sales and net earnings from continuing operations for the year ended June 30, 2013 (excluding results held in Corporate).
Effective July 1, 2013, the Company implemented a number of changes to our Global Business Unit (GBU) structure, which resulted in changes to our reportable segments. We organized our GBUs into fourindustry-based sectors, comprised of 1) Global Beauty, 2) Global Health and Grooming, 3) Global Fabric and Home Care, and 4) Global Baby, Feminine and Family Care. Under U.S. GAAP, the GBUs underlying
these sectors will be aggregated into five reportable segments: 1) Beauty, 2) Grooming, 3) Health Care, 4) Fabric Care and Home Care, and 5) Baby, Feminine and Family Care. As a result of the organizationalchanges, Feminine Care transitioned from Health Care to Baby, Feminine and Family Care, and Pet Care transitioned from Fabric Care and Home Care to Health Care. Please refer to our Current Report on
Form 8-K dated October 28, 2013 for a revised MD&A and consolidated financial statements and notes thereto for the years ended June 30, 2013, 2012 and 2011, to revise the segment disclosures for those
periods to conform to the new sector organization structure (which became effective July 1, 2013, the start of the Company’s 2014 fiscal year).

F or more financial details, please see P&G’s 2013 Annual Report available at: www.pg.com/en_US/investors/financial_reporting/annual_reports.shtml.
As part of P&G’s initiative to optimize resources to fit a growing global business and to accelerate innovation and growth, the Company operates
its business as described under Organizational Structure on page 15. This organizational structure accounts for why P&G does not provide employee
data, sales or profits by individual countries. Some countries may provide this data in reports other than this one.
www.pg.com/sustainability

BeautyGrooming
Health Care
Fabric Care and Home Care
Baby Care and Family Care

39%

18%

North America
Western Europe
Asia
Latin America
	Central and Eastern Europe,
Middle East and Africa

18%

By Market Maturity
Developed
Developing

39%
61%

(2) These results exclude
net sales in Corporate.

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Environmental Sustainability

Social Responsibility•

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Acquisitions

Global Purchases

Economic Development

Shareholder Information

Acquisitions used $1.1 billion of cash in 2013
primarily for the acquisition of our partner’sinterest in a joint venture in Iberia. Acquisitions
used $134 million of cash in 2012 primarily
for the acquisition of New Chapter, a vitamins
supplement business.

Early signs of economic recovery and businessexpansion grew external spend to $56 billion in2012, up from the $54 billion we reported lastyear. This is spent with over 82,000 business
partners worldwide, and offers a significant
opportunity to drive sustainable supply in every
region, and across multiple industries.

Innovation is a fundamental driver of P&G’s
growth. We invest about $2 billion a year
in Research and Development. This level ofinvestment is multiplied by our global networkof external innovation partners, which leads
to an effective investment in innovation that
far exceeds the reported spending.

As of June 30, 2013, there were approximately
2,375,000 common stock shareowners,
including shareholders of record, participantsin the P&G Shareholder Investment Program,participants in P&G stock ownership plans, andbeneficial owners with accounts at banks andbrokerage firms.

Proceeds from
Asset Sales

P&G has expanded the use of our External Business
Partner Sustainability Scorecard across a broader
range of partners, and it is now incorporated
fully into the Company’s External Business
Partner performance management process.

Our External Business Development group andthe Connect + Develop organization manage
thousands of active connections with othercompanies and institutions. These include awide variety of deal structures, including
licensing, sale, technology swap, joint ventures,and more. P&G’s goal is to be the partner ofchoice in working with others to improve thelives of the world’s consumers.

Proceeds from asset sales contributed$584 million in cash in 2013 mainly due
to the divestitures of our bleach business
in Italy and the Braun household appliancesbusiness. Proceeds from asset sales
contributed $2.9 billion to cash in 2012
mainly due to the sale of our snacks business.

We are working with all of our critical andinnovative suppliers and agencies to develop
and commercialize bio-alternative materials
for use in our products, to develop alternative
energy solutions to fuel our plants, and toprovide sustainable alternatives to packaging,transportation, storage, and operations. Our
external business partners are fully committed tocollaborate and innovate with Procter & Gamble
to improve our products, supply chains, andoperations in a sustainable way.

For more information, please visit:www.pgconnectdevelop.com.

Contact
For more information:
Website:www.pg.com/en_US/investors/index.shtml

By Phone:
Toll Free Number 1-800-742-6253
International Number 1-781-575-4399

By Mail:
Regular Mail Delivery:
Computershare, Inc.
PO Box 43078
Providence RI 02940

2 billion$

invested in
Research and Development

Overnight Mail Delivery:
Computershare, Inc.
250 Royall Street
Canton MA 02021

Email:P&G@Computershare.com

In Person:
9am – 4pm Eastern, Monday – Friday(excluding P&G holidays)
The Procter & Gamble Company
General Offices – Central Building, 1st Floor
1 P&G Plaza
Cincinnati, OH 45202

www.pg.com/sustainability

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GRI Index

Organizational
Structure
We have made P&G’s organization structure
an important part of our capability to grow.
It combines global scale benefits with a local
focus to win with consumers and retailcustomers in each country where P&G products
are sold. The diagram to the right reflects P&G’sorganizational structure, including our revised
sector design, as of July 1, 2013.

Market Development Organizations

T o learn more about our Organizational
Structure please go to: www.pg.com/
en_US/company/global_structure_operations/corporate_structure.shtml.

Industry-Based Sectors

GlobalBeautyGlobal Baby,
Feminine &Family Care

Global Fabric& Home Care

Global Business Services
Shared Services

Corporate Functions
Governance, Capability, Functional Innovationwww.pg.com/sustainability

GlobalHealth &Grooming

Contents•

Introduction•

2020 Goals Progress

Manufacturing andOutsourcing
P&G has over 130 manufacturing facilities inover 40 countries. These facilities handle themajority of P&G’s production.
Our primary focus is delighting consumers. To
ensure that our products remain affordable, ourmanufacturing facilities must provide the best
possible value for the Company. We conduct
regular reviews to ensure that our facilities arehighly competitive, and this process includes
benchmarking versus third-party manufacturers.
When it makes sense for the business and it is
the most competitive solution, we may decide
to use contract manufacturers. For example,
when entering a new market, introducing a new
product, or accessing a technology or process
we don’t currently have, we may rely on
contract manufacturing so we can determine
production needs prior to investing in new
capacity at a P&G facility.

To ensure that our
products remain affordable,
our manufacturing
facilities must provide
the best possible value
for the Company.

www.pg.com/sustainability•

P&G Profile•

Environmental Sustainability

Sometimes we use contract manufacturers on
a longer-term basis for reasons of costeffectiveness. In these instances, we are usually
manufacturing in the region and for the region,as almost all of our third-party manufacturers
are regional. In addition, many of our products
simply do not lend themselves to shipping long
distances. The exception to this would be whereunique manufacturing capability exists in one
region and we are able to economically ship
across regions.
The percentage of P&G production supplied bycontract manufacturers varies according to theneeds of the business and the ability of P&G
facilities to compete and win production basedon providing the best value. Currently, our plants
do this extremely well and we rely on third-party
manufacturers for only 10 to 15% of our total
manufacturing volume.

•

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GRI Index

P&G Plant Locations
As of June 30, 2013

COUNTRY

CITY

PLANT NAMECOUNTRY

CITY

PLANT NAME

Argentina

Pilar

Pilar

FranceAmiensAmiensArgentina

Villa Mercedes

Villa Mercedes

France

Blois

Blois

Belgium

AarschotAarschotFranceSarreguemines

Sarreguemines

Belgium

MechelenMechelenGermany

BerlinBerlinBrazilSão Paulo

Anchieta

Germany

CologneCologneBrazilLouveira

Louveira

Germany

Crailsheim

Crailsheim

BrazilManausManausGermany

Euskirchen

Euskirchen

BrazilRio De Janeiro

Rio

Germany

Gross-Gerau

Gross-Gerau

CanadaBelleville

Belleville

Germany

Hünfeld

Huenfeld

CanadaBrockville

Brockville

Germany

Kronberg

Kronberg

Chile

Santiago

Santiago

Germany

Marktheidenfeld

Marktheidenfeld

China

Beijing

BeijingGermany

Rothenkirchen

Rothenkirchen

China

ChengduChengduGermany

Walldürn

Wallduern

China

DongguanDong Guan

Germany

Worms

Worms

China

Guangzhou

Huangpu

GuatemalaEscuintla

Escuintla

China

Minhang

Minhang

Hungary

CsÖmÖrBudapest

China

Shanghai

Shanghai

India

District Solan

Baddi

China

Taicang City

Taicang

India

Baddi

Baddi B&R

China

Tianjin

TianjinIndia

BhiwadiBhiwadiChina

Tianjin

Xiqing

India

Ponda

Goa

Colombia

MedellínMedellín

India

BhopalMandideep

Czech Republic

Rakovnik

RakonaIreland

NenaghNenagh

Egypt

Cairo

Cairo

Ireland

Newbridge

Newbridge

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COUNTRY

CITY

PLANT NAMECOUNTRY

CITY

PLANT NAME

Italy

Campochiaro

Campochiaro

Peru

Lima

Materiales

Italy

Gattatico

GattaticoPhilippines

CabuyaoCabuyao

Italy

PescaraPescaraPolandAleksandrow Lodzki

Aleksandrow

Italy

Rome

Pomezia

PolandLodz

Lodz-LMC (Jozefow Street)Japan

AkashiAkashi

PolandLodz

Lodz-PLMC (Wodna Street)

Japan

Yasu

Shiga

PolandWarsaw

Targowek

Japan

TakasakiTakasakiPortugalGuifões

Porto

Malaysia

KuantanKuantanPuerto Rico

Cayey

Cayey

MexicoNaucalpan

Alce Blanco

RomaniaTimişoaraTimişoara

MexicoApizacoApizacoRomaniaUrlaţiUrlaţi

MexicoApaseo El Grande

MariscalaRussia Federation

Dzerzhinsk

CapellaMexicoIrapuato

Milenio

Russia Federation

Novomoskovsk

Novomoskovsk

MexicoNaucalpan

Naucalli

Russia Federation

St. Petersburg

St. Petersburg

MexicoNaucalpan

Naucalpan

Saudi Arabia

DammamDammamMexicoMexico City

Talisman

Saudi Arabia

JeddahJeddahMexicoTepejiTepejiSingapore

Singapore

Pioneer Perfume

MexicoMexico City

VallejoSouth Africa

Johannesburg

Johannesburg

MoroccoCasablanca

Casablanca

South Korea

Ch’onanCh’onanMoroccoMohammedia

Mohammedia

Spain

JijonaJijonaNetherlands

Coevorden

Coevorden

Spain

Mataró

Mataró

Nigeria

IbadanIbadanSpain

Mequinenza

Mequinenza

Pakistan

Karachi

Hub

Spain

Montornès del VallèsMontornès

Pakistan

KarachiPort Qasim

Spain

Santa Perpetua De Mogoda

Santiga Ambi-Pur

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GRI Index

COUNTRY

CITY

PLANT NAMECOUNTRY

CITY

PLANT NAME

Thailand

Bangkok

Bangkok

United States

Green Bay

Green Bay

Turkey

Gebze

Gebze

United States

Greensboro

Greensboro

UkraineBoryspilBoryspil

United States

Henderson

Henderson

UkraineOrdzhonikidze

Ordzhonikidze

United States

Cockeysville

Hunt Valley

United Arab Emirates

Dubai

Dubai

United States

Iowa City

Iowa City

United Kingdom

LondonLondonUnited States

Iowa City

Iowa City (Oral Care)

United Kingdom

Manchester

Manchester

United States

Kansas City

Kansas City F&HC

United Kingdom

Reading

Reading

United States

LaGrange

LaGrange

United Kingdom

Whitley Bay

Seaton Delaval

United States

Lancaster

Lancaster

United States

AlbanyAlbanyUnited States

Leipsic

Leipsic

United States

Pineville

Alexandria

United States

Lima

Lima

United States

AndoverAndover

United States

Mehoopany

Mehoopany

United States

AuburnAuburnUnited States

North Chicago

North Chicago

United States

Augusta

Augusta

United States

OxnardOxnardUnited States

AuroraAuroraUnited States

Russellville

Russellville

United States

AvenelAvenelUnited States

Sacramento

Sacramento

United States

BostonBostonUnited States

St. Louis

St. Louis

United States

Bear River City

Box Elder

Venezuela

Barquisimeto

Barquisimeto

United States

JacksonCape Girardeau

Venezuela

GuatireGuatireUnited States

Cincinnati

Cincinnati

VietnamTan Uyen District

Ben CatUnited States

Cleveland

Cleveland

VietnamBinh Duong

Binh Duong

United States

Dover

Dover

United States

Fremont

Fremont

www.pg.com/sustainability

Contents•

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2020 Goals Progress•

P&G Profile•

Environmental Sustainability

GovernanceManagement’s Responsibility for
Financial Reporting

Everything we do is done with ourcommitment to “doing the right thing”
in mind.

At The Procter & Gamble Company, we takegreat pride in our long history of doing what’s
right. If you analyze what’s made our Company
successful over the years, you may focus on ourbrands, our marketing strategies, ourorganization design and our ability to innovate.
But if you really want to get at what drives ourCompany’s success, the place to look is ourpeople. Our people are deeply committed to
our Purpose, Values and Principles. It is thiscommitment to doing what’s right that unites us.

We believe that good governance practices
contribute to better results for shareholders. Our
objective is to maintain corporate governanceprinciples, policies, and practices that support
management and the Board of Directors
accountability. These are in the best interest of
the Company and our shareholders, and they
are consistent with the Company’s Purpose,
Values and Principles.
T o learn more about our Governancestructure, policies, and procedures,
please go to: www.pg.com/en_US/
company/global_structure_operations/
governance/index.shtml.

www.pg.com/sustainability•

Social Responsibility•

This commitment to doing what’s right isembodied in our financial reporting. Highquality financial reporting is our responsibility,
one we execute with integrity, and within boththe letter and spirit of the law. High-quality
financial reporting is characterized by accuracy,
objectivity and transparency. Management is
responsible for maintaining an effective system
of internal controls over financial reporting todeliver those characteristics in all material
respects. The Board of Directors, through its
Audit Committee, provides oversight. We haveengaged Deloitte & Touche LLP to audit our
Consolidated Financial Statements, on which
they have issued an unqualified opinion.

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to providing timely, accurate andunderstandable information, pleasesee our Annual Report available at:www.pg.com/en_US/investors/
index.shtml.

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2020 Goals Progress•

P&G Profile•

Environmental Sustainability

Political Involvement

Business Continuity

Guided by our Purpose, Values and Principles,P&G participates in the political process tohelp shape public policy and legislation.
This engagement ensures that the interestsof our employees, consumers and shareholders
are fairly represented at all levels of government
around the world. We are committed tobeing transparent about our politicalinvolvement globally.

P&G’s Global Business Continuity Program
ensures that all critical sites and work processes
evaluate their risk mitigation programs, exposure
to catastrophic events at P&G sites and sites ofour key suppliers and service providers that
could significantly interrupt business operations,and the business impact of such events. Site andbusiness unit leaders then develop contingency
plans to minimize business interruption if adisabling event should occur. Crisis Management
team structures are defined to manage businessrecovery using the predefined contingency
plans. Tests are conducted annually to ensurethat the contingency plans are sufficient andup-to-date.

 ou can read more about our effortsY
here: www.pg.com/en_US/company/
global_structure_operations/governance/
governance_political.shtml.

Principal Industry andBusiness Associations
P&G holds membership in many industry,business, and environmental associations
whose activities are related to the Company’s.
These include the associations listed in thefollowing link: Associations List.

www.pg.com/sustainability

Business Continuity Plans are audited regularly,
and a report of the Business Continuity
Program’s status is made each January to
the Audit Committee.

•

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2020 Goals Progress•

P&G Profile•

Environmental Sustainability

Product Safety

Being Safe, Feeling Safe, andIngredient Choices

Our Commitment to Your Safety
Begins with You

Safety is at the heart of everything we
do — ensuring our products are safe for theirintended use before they go to market. Simply
put, that is being safe.

Since Procter & Gamble was founded over 175
years ago, ensuring the safety of people who
use our products, and the safety of the world
we all live in, has been at the heart of what we
do. This commitment to safety is both ourheritage and our future, so we have over 700
in-house experts devoted globally to human &environmental safety and regulatory complianceof all our products and ingredients.
Our safety standards for all of our products
and ingredients are the same throughout
the world. We ensure that our products aresafe for their intended use before they go
to market — complying with all laws andregulations where they are sold.
Constant Diligence
Our commitment to safety doesn’t stop once
our products go to market. We remain diligent
in ensuring your safety by continuallyinvestigating new scientific information, andcollaborating with external scientists andregulatory agencies on new safety methods. We
also listen to the people who use our products
to confirm they are performing as expected.

But feeling safe can be a different matter
altogether. We also work to help you to feelsafe by openly sharing information about
ingredients where you may have questions orwould like more details, including our updated
product safety section on www.pg.com.
Ingredient Use Update
We would like to share two ingredient use
updates that reflect previous decisions P&G
made several years ago — to phase out theuse of the phthalates (DEP) and triclosan in
our products.
• While the only phthalate we use in our
product formulations is safe (diethyl phthalateor DEP), we also know that there is thepotential for people to confuse this ingredientwith other phthalates that are banned fromcertain product types. We want people to feelsafe about our products and not have any
misperceptions about the product ingredients
we use. So we decided to remove DEP fromour formulated products and we recently
reached a milestone: 70% of P&G products
are currently phthalate-free and we are on
track to have all our products phthalate-freeby 2014.

•

Social Responsibility• Triclosan is also known to be safe throughnumerous studies and regulatory reviews.
However, there are ongoing discussions
about how effective it is for reducing bacteria
compared to regular soap. Since we have
limited use of triclosan, our goal is toeliminate it from all our products by 2014.
For more information on these
ingredients and P&G’s approach for
ingredient-related decisions, please visit the
newly launched section of pg.com which also
includes a new two-minute video designed to
inform the public about the safety of our
product ingredients: www.pg.com/en_US/
sustainability/safety/ingredients/index.shtml.

For further details on the science and safety of
specific P&G products, we encourage you to visit
these websites:
Science in-the-Box:
www.scienceinthebox.com.
P&G Beauty and Grooming:
www.pgbeautygroomingscience.com.

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Contents•

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability

Environmental Sustainability
P&G is the largest consumer packaged goods company in the world.
Our size presents us with the responsibility to operate sustainably anduse resources efficiently. It also offers us the opportunity to develop
sustainable innovations that make every day better for the planet, andfor the people we touch — whether that’s our suppliers, retail partners,
consumers, or employees.

•

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In this section of the report, we provide an update on our efforts to advance progresson our environmental programs and goals. In the past, we have structured our updates to
describe efforts related to Products and Operations. This year, we are refreshing how wecommunicate our efforts to better align with the core elements of our environmental vision.
More specifically, we are structuring communications around three core focus areas:

Conservation of Resources

Renewable Resources

Worth from Waste

Using less energy, water and materials to
manufacture our products and designing
products that require fewer resources when
they are used in the home.

Increasing the use of sustainably sourced,
renewable materials and renewable energy
in our products and operations.

Identifying ways to reduce manufacturing andconsumer waste and ensure that all unusedmaterial has value through recycling, reuse, orconversion to energy

We feel this new structure better reflects where we are focusing our efforts and provides a stronger link back to thevision we established in 2010. The specific elements of our vision that align with these focus areas are listed below:• Design and manufacture products thatmaximize the conservation of resources.

• Powering our plants with 100%
renewable energy.

• Having zero consumer and manufacturing
waste going to landfills.

• Using 100% renewable or recycledmaterials in all products and packaging.
While this structure is new, the core elements of P&G’s environmental program and the information disclosed in this report are consistent with prioryears — only now more closely aligned with our vision. We hope you agree and welcome your comments and feedback at: Sustainrep.im@pg.com.

www.pg.com/sustainabilityT o learn more about our commitment tooperate sustainably please refer to ourEnvironmental Quality Policy.

Contents•

Introduction•

2020 Goals Progress

Conservation of
Resources
Our work in conservation is simply about doing
more with less. We are trying to reduce theamount of energy, water, and materials that goin the making and use of our products, whilestill delivering the high-quality productperformance our consumers expect. In thissection we report on our efforts for cold water
washing, packaging reduction, energy and CO2,
truck transportation, and water.

Cold Water Washing
Getting consumers to wash their clothes in cold
water represents a significant opportunity to
reduce energy consumption and associatedgreenhouse gas emissions. This is why wehave established a goal that by 2020, wewant to have 70% of all machine wash loads
use cold water.
Since FY10/11, our data indicates the percentageof global washing machine loads washed in cold
water increased from 38% to 50%. We consider
this outstanding progress and while otherstakeholders clearly played a role in helping
drive this result, we believe our intense
consumer education efforts on cold water
washing and our continuous focus on ensuring
great product performance in cold water madea significant contribution to this increase.

www.pg.com/sustainability•

P&G Profile•

Environmental Sustainability

The progress was mainly driven by an increaseof cold water washing in Western Europe,
where we launched strong communication
programs. All versions of Ariel, our leading
laundry detergent in Europe, now carry a “30˚C”
icon to encourage consumers to wash in cold.
We have also leveraged TV, Facebook, andother communication channels to reach over
50 million consumers with key messages on thebenefits of cold water washing. We also
continue to partner with washing machine
manufacturers to place information about thebenefits of cold water washing on new washingmachines and to date have provided informationfor over 6 million new washing machines.

•

Social Responsibility•

While our efforts last year focused heavily inEurope, we were also active in North America.
For example, we partnered with the group “NetImpact” to reach students with a cold water
washing education campaign. Students werethe core audience because many are justcreating their washing habits and it’s mucheasier to establish a habit correctly from the startthan to change a habit. With this partnership
we reached more than 400,000 students.

50%

Since FY10/11, the percentageof global washing machine loads
washed in cold water increased
from 38% to 50%.

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In the coming fiscal year, we will maintain ourcommunication efforts in Europe across many
media channels including TV, on-pack, andworking with AISE, a key trade association, ona major industry consumer education campaign
called “I prefer 30˚C.” We will also implement
similar campaigns in North America. We will
also maintain our focus on R&D efforts tofurther extend product performance in cold
water. We know we cannot achieve this effort
alone and plan to continue to look forpartnership opportunities that will help us
scale our efforts and achieve our goal.

Contents•

Introduction•

2020 Goals Progress

Packaging Reduction
Over the last few years we have made good
progress on our packaging reduction goal.
Since 2010 we have reduced our packaging
approximately 4.5% per consumer use. This
reduction can be attributed to a broad array of
packaging projects across the many different
categories. Product compactions, packaging
light-weighting, use of new materials, andmore efficient transport packaging are alldifferent methods that we have used to deliver
this reduction. Our recent launch of Tide
PODS is just one example where we havetransitioned consumers to a form with more
efficient packaging.

•

P&G Profile•

Environmental Sustainability

While we are currently on track to meet our
20% reduction goal for 2020, the work will
become more difficult as we achieve optimized
packaging design on more and more of ouritems. Protecting the product is a critical
function of packaging and reducing packaging
to a point where you start to see increased
product waste or damage is not good for theenvironment, our customers, our business, or
our consumers. We will continue to look forgains in packaging efficiency and new productforms that will help us continue to optimize our
packaging while continuing to delight theconsumer. We believe our relentless focus on
innovation will allow us to achieve our goal.

50%

Tide PODS is one of the mostconcentrated detergents in themarket, and reduces plastic use
by 50% per consumer.

www.pg.com/sustainability•

Social Responsibility•

GRI Index

26 of 63

Contents•

Introduction•

2020 Goals Progress

Energy and CO2
In 2010 we established a goal to reduce totalenergy use and total CO2 emissions (Scope 1
and Scope 2) at P&G facilities by 20% per unitof production by 2020. Within P&G we haveused a “zero loss mentality” to drive reliability
and quality results in our operations. We haveused this same “zero loss” approach to deliverconservation efforts across our facilities. Our
energy teams have combined employee
involvement, education, and technologicaladvances to achieve more than a 3% reduction
in energy usage this year on a per unit ofproduction basis. Overall we have achieved an
8% reduction since 2010 and are on track toachieve our 2020 goal of 20% reduction. Total
CO2 has seen a similar 3% reduction in this yearwith an overall reduction of 11% since 2010.

Energy efficient lighting
in our Nenagh plant•

P&G Profile•

Environmental Sustainability

Our Nenagh, Ireland plant continues to excel
in conservation efforts. They have focused on
installing energy efficient lighting, using
ultrasonic detection to identify and repair
compressed air leaks, and eliminating steam
leaks to drive both energy and cost savings.
Since 2010, the site reduced energy
consumption by 12%, CO2 emissions by
16%, disposed waste by 97%, and water
consumption by 27%.
P&G Gillette’s World Shaving Headquarters in
Boston, Massachusetts, is home to one of thelargest blades and razors manufacturing facility
in the world. Over 60 conservation projects
have been completed since 2010, saving over
27 million liters of water per year and enoughelectricity to power over 1,700 average U.S.
homes for a year. To help achieve breakthroughresults, the site has created innovative
sustainability partnerships with the local
electricity provider, universities, and the City of
Boston. Their outstanding progress has beenrecognized with 7 external sustainability
awards, including the U.S. Environmental
Protection Agency Merit Award (2012), and has
been recognized within P&G for achieving zero
manufacturing waste to landfill in FY12/13.
T o learn more about our efforts on
climate change please see www.pg.com/
en_US/sustainability/policies_practices/climate.shtml.

www.pg.com/sustainability••

Social Responsibility

Reduction in Energy Consumption(Percent reduction versus FY09/10, per unit of production)
11

-4%

12

-5%

13

-8%

27 of 63

GRI Index

Energy Consumption by GBU(Millions of gigajoules)
11

74.4

12

72.8

13

72.3

Total Greenhouse Gas Charts
Total Greenhouse Gas Emissions(Percent reduction versus FY09/10, per unit of production)
11

-3%

12

-8%

13

-11%

Total Greenhouse Gas Emissions by GBU(Millions of metric tons)
11

6.2

12

5.8

13

5.7

Scope 1 Greenhouse Gas Charts
Scope 1 Greenhouse Gas Emissions*(Percent reduction versus FY09/10, per unit of production)
11

Scope 1 Greenhouse Gas Emissions*(Millions of metric tons)
11

-2.1%

12

-4.2%

13

-4.8%

3.1

12

2.8

13

2.8

* CO2 from fuel combustion sources.

Scope 2 Greenhouse Gas Charts
Scope 2 Greenhouse Gas Emissions(Percent reduction versus FY09/10, per unit of production)
11
12
13

-11%
-15%
-16%

Scope 2 Greenhouse Gas Emissions(Millions of metric tons)
11

3.1

12

3.0

13

2.9

Technical Centers
Health Care
Grooming
Fabric and Home Care

Distribution Centers
BeautyBaby Care and Family CareContents•

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability•

Social Responsibility•

GRI Index

28 of 63

Truck Transportation
Our 2020 goal for transportation is to reducetruck transportation kilometers by 20% per unitof production versus our 2010 baseline. Since
2010, we have reduced truck transportation
kilometers by approximately 12%. This was
driven by a combination of converting loads tointermodal (taking kilometers off the road to
reduce pollution), and focusing on increasing
vehicle fill efficiency, (allowing us to increase
the number of units shipped per kilometer).
We have continued to optimize our distribution
networks, which has brought significant
efficiency gains and cost savings. We haveplans in place for each region that will help us
achieve our truck transportation goal by 2020.
The plans include continuing to optimize
transportation modes and routes as well as
increasing overall operational excellence.
In addition to optimizing our networks, overthe next two years P&G will begin working with
our transportation carriers to convert up to 20%
of our North America truck loads to natural
gas vehicles. The first stage is already under way,targeting 7% of P&G’s for-hire transportation
network. This initial 7% will represent over
5 million diesel gallon equivalents being
converted to natural gas per year, reducing
overall CO2 and particulate emissions.

www.pg.com/sustainability“P&G is investing in carriers with a commitment to natural
gas vehicles to help boost the emerging natural gas industry,
while continuing to seek more sustainable options for our
supply chain and operations.”
Yannis Skoufalos, P&G Global Product Supply Officer

Over the next two years P&G
will begin working with
our transportation carriers toconvert up to 20% of our
North America truck loads
to natural gas vehicles.

Contents•

Introduction•

2020 Goals Progress

Water
P&G is committed to Sustainable Water
Management and has established an internal
Water Council. The Water Council created ourWater Policy and works with our business units
on the following strategic focus areas:
1. Help our consumers use less water whenusing our products:
Downy Single Rinse is a great example of awater saving product that can make a significant
difference in water-scarce areas. This innovative
product provides the same rinsing performancein one rinse versus the traditional three rinse
process, thereby saving water. In addition to theimpact on water use, in regions where womenand children need to walk for hours to fetch thehousehold water, this product also gives back asignificant amount of time to women andchildren and reduces the effort involved in doing
the laundry.
2. Sustainable water management inour operations:•

P&G Profile•

Environmental Sustainability

day-to-day work. Our “benchmarking andreapplication” program assures that good ideas
and successes are traveling across the globe andthat our new sites are built with the best
available water efficiency technologies. Our
engineers are working with suppliers around theglobe to investigate breakthrough water
recycling technologies. Sometimes, we’ve foundthat efforts as simple as employee education
can significantly reduce our water consumption.
For example, our Fabric Care production plant inCairo has reduced usage by 29% since 2010,
conserving over 22 million gallons of water per
year. The plant focused on education and total
employee involvement in everyday water
conservation including innovative technicalsolutions to reduce their incoming waterpressure from 6bar to 3bar on key chillers andbuilding water systems to reduce overuse.
We are also cooperating on a joint project
between the EU Commission and the European
Chemical Industry to develop innovative

Water reduction targets are set for each of ourbusiness units. These targets engage all
employees and encourage them to look foropportunities for water savings in theirPressure regulators
installed in Cairo
to reduce water flow
and consumption.

•

Social Responsibility•

technologies for plant effluent water treatment
so more water can be recycled and re-used. This
project, E4Water (Economically and Ecologically
Efficient Water Management in the European
Chemical Industry), is done in close collaboration
with research institutes such as TNO, VITO, UCM
and Campden BRI.

In order to focus our sustainable water
management efforts where it matters most,
we are developing an innovative andcomprehensive Water Risk Assessment processthat will be applied to our existing sites andwill be used during due diligence for new sites.
This new process is being developed with thehelp of expert guidance and cooperation fromour partners at World Wildlife Fund (WWF) andWorld Resources Institute (WRI).
In partnership with WWF, we are also piloting
water stewardship beyond the walls of oursites. We started with a small pilot project at awetland in the Lake Tai basin (China) in 2011.
The project included wetland restoration
activities to remove invasive species, rebuild
wetland systems and re-introduce native species.
There was a clear improvement in water quality
at the project site thanks to the wetland
restoration efforts. We continue to explore otherwater stewardship opportunities with WWF in
important watersheds where we have operations.

29 of 63

GRI Index

3. Stakeholder engagement:
Besides our global partnership with WWF,with whom we have engaged on water risk
assessment and stewardship, and our WRI
Aqueduct Alliance membership, we cooperateon the E4Water project with several
stakeholders: EU Commission, CEFIC, TNO,
VITO and Campden BRI.
In addition to the actions outlined above, ourP&G Children Safe Drinking Water Program is
one of our major social responsibility programs.
You can read more about that effort here in ourSocial Responsibility Section on page 40.
Water Consumption(Percent reduction versus 2010, per unit of production)
11

-6%

12

-7%

13

-14%

Water Consumption by GBU(Millions of cubic meters)
11

80.2

12

78.7

13

74.3
Technical Centers
Health Care
Grooming
Fabric and Home Care

Wastewater COD* Disposed by GBU(Thousands of metric tons)
11

24.1

12

23.1

13

15.9
Technical Centers
Health Care
Grooming
Fabric and Home Care

* Chemical oxygen demand.

To learn more about our Water Policy please see this link: www.pg.com/en_US/sustainability/policies_practices/water.shtml.
www.pg.com/sustainability

Distribution Centers
BeautyBaby Care and Family Care

Distribution Centers
BeautyBaby Care and Family CareContents•

Introduction•

2020 Goals Progress•

Renewable Resources
A key component of making our business sustainable is ensuringthat we have the right materials and energy to continue ouroperations in the long term. This is why we focus on renewable
resources — because they can be sustainably replenished over time.
As we increase our sourcing of renewable materials, we are also
focused on ensuring they are sourced sustainably.
Our long-term vision for renewable resources includes:• Powering our plants with 100% renewable energy.
• Using 100% sustainably sourced renewable or recycledmaterials in all products and packaging.
In this section, we report on our efforts on renewable energy
and renewable materials, including sustainable forestry, wood
pulp, palm oil, and paper packaging.

P&G Profile•

Environmental Sustainability•

Social Responsibility•

GRI Index

Renewable Energy

Taicang Wind

To ensure we are making progress towards our long term goalof powering our plants with 100% renewable energy, we set a
2020 goal to obtain 30% of our energy from renewable sources.
Today we are making progress towards meeting that goal withapproximately 7.5% of our energy being supplied from renewablesources. Our global energy team is building strong partnerships
with leading companies and university experts in an effort toprioritize technologies and projects that are both economicallyand environmentally sustainable. While the recent drop in natural
gas prices has impacted the economic feasibilityof some projects, we anticipate having a diverse mix of renewableenergy sources, both on-site and off-site, across all aspects of
our operations.

In December 2012, P&G inaugurated our most sustainable plant
to date globally, the P&G Taicang Plant and Distribution Center in
Jiangsu province, China. With a strong focus towards designingin sustainability, this plant has been able to achieve several firsts
within P&G.

Two recent projects that are helping us achieve these results are
Huangpu Solar and Taicang Wind.

• It is the first P&G site to meet our zero manufacturing waste
to landfill definition in China.

• It is the first site within P&G, to use 100% renewableelectricity from wind. The site uses 6 million kWh or theequivalent of 5,400 households in urban China. This helps
eliminate over 5,000 metric tons of CO2 per year.
• It is the first P&G plant in the world to achieve both LEEDGold certifications for administration buildings and Silver
for manufacturing buildings.

Huangpu Solar
Our Huangpu plant in China partnered with a local utility supplier
to install solar panels on the plant’s rooftop. This is the first P&G
manufacturing plant in Asia to host solar photovoltaic panels.
Electricity from the installation will eliminate 600 metric tons of
CO2 emissions annually from the local community.

“Taicang is the result of an intentional sustainability focus from the project onset.
We have partnered with international experts on sustainable design who havehelped us implement aspects of our environmental vision within a single plant.
The process of constructing the plant resulted in several breakthroughs for thecompany, and generated P&G’s most sustainable manufacturing plant to date.”
Stefano Zenezini, VP Beauty Sector and Global Supply Chain Sustainability

www.pg.com/sustainability

30 of 63

Our Taicang Plant andDistribution Center in Chinais the first site within P&G
to use 100% renewableelectricity from wind.

Contents•

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability•

Social Responsibility•

GRI Index

31 of 63

Renewable Materials

Sustainable Forestry

Wood Pulp

Pulp Sources

P&G has a goal to replace 25% of ourpetroleum-derived raw materials with sustainably
sourced renewable materials. Since announcing
this goal, we have conducted a detailed analysis
of our petroleum-derived raw materials andidentified the material classes that best deliver
our goal. For most of these materials, we’veestablished a clear development pipeline, andwe are now moving toward pilot scale
production of several key materials.

As a member of the Consumer Goods Forum,P&G joined other member companies in apledge to mobilize resources within theirrespective businesses to help achieve ZeroNet Deforestation by 2020. To act on thiscommitment, P&G has developed goals forwood pulp, palm oil, and paper packaging:

P&G purchases wood pulp for tissue andabsorbent hygiene products. Though we do not
own or manage forests, we have a responsibility
through our procurement practices to ensuresustainability of the world’s forest resources.

In FY12/13, P&G bought ~1.7 million air dried
metric tons of pulp for use in our tissue/towel,
diaper, and feminine hygiene products. The pulp
was sourced from the following regions:

We have already successfully incorporated
plant-based plastic in select shampoo
bottles, but we anticipate the bulk of our new
renewable material replacements will becommercialized between 2015 and 2020.
This is consistent with our original expectations
and reflects the time it takes to develop andevaluate new materials, test them at pilot
scale, and ensure they represent technically,
environmentally, and economically viable
solutions. We will continue to report ourprogress via our sustainability report.

www.pg.com/sustainability• By 2015, 100% of the virgin wood fiber usedin our tissue/towel and absorbent hygiene
products will be third-party certified; 40% of
the virgin wood fiber used in our tissue/towel
products will be Forest Stewardship Council(FSC) certified.
• By 2015, 100% of palm oil purchases will be
confirmed to originate from responsible andsustainable sources.
• By 2020, 100% of our paper packaging willcontain either recycled or third-party certified
virgin content.
The following sections provide additional
information on these efforts.

P&G requires pulp suppliers to certify their forest
operations, or fiber procurement activities, forsustainable forest management. To meet theserequirements we recognize the following
third-party certification systems:

Source Region/Country

FY12/13

Latin America

33%

Canada29%

United States

38%

Total

100%

• Forest Stewardship Council (FSC)• Sustainable Forestry Initiative (SFI)• Programme for the Endorsement of Forest
Certification (PEFC)• Brazilian National Forestry Certification
Scheme (CERFLOR)• Canada’s National Standard for Sustainable
Forest Management (CSA-SFM)
We give preference to pulp from Forest
Stewardship Council (FSC) certified forests when
it is available and meets product performancerequirements and competitive market conditions.
We have set a target of 40% FSC certified virginfiber for our tissue-towel products by 2015.
We will also utilize FSC-controlled wood as partof a stepwise approach to progressively increase
the amount of pulp from FSC-certified sources.
Our Family Care sites also require that all pulp
come from sources that have undergone an FSC
Controlled Wood Risk Assessment.

The third-party programs used as a percent of
total supply are:Third-Party Program% of Total

Forest Stewardship Council (FSC)

9%

Sustainable Forestry Initiative (SFI)

52%

Program for the Endorsement ofForest Certification (PEFC, includes
CSA & CERFLOR)36%

FSC Controlled Wood

3%

Total

100%
F or more information on FSC Controlled
Wood Assessments and their role insustainable forestry, visit: www.fsc.org.
 ur policy on Wood Pulp ProcurementO
can be found at the following link:
www.pg.com/en_US/sustainability/
policies_practices/woodpulp.shtml.

Contents•

Introduction•

2020 Goals Progress

Palm OilP&G is committed to the sustainable sourcingof palm oil. By 2015, we intend to only purchaseand use palm oil that we can confirm to haveoriginated from responsible and sustainablesources. We will seek to accomplish this goal
through the following key steps:• Supplier and Partner Coaching — We willcontinue to share and reinforce our
expectations related to sustainability, andencourage and reward sustainable behavior
on behalf of our partners and suppliers. We
will continue to partner with both known
suppliers with whom we have long-standing
relationships and trust, as well as withemerging suppliers who embrace and support
our corporate sustainability principles andexpectations. We encourage suppliers to
adopt the Principles and Criteria of theRoundtable on Sustainable Palm Oil (RSPO)
for sustainable palm production.

•

P&G Profile•

Environmental Sustainability• Stakeholder Partnerships — We will expandand strengthen relationships with tradeassociations, government agencies, nongovernmental organizations (NGO’s), and othercritical external stakeholders to help influence
positive changes and incremental sustainability
improvements in the palm oil supply chain andindustry. P&G is a member of the RSPO, asustainable palm oil coalition. We will partnerwith third-party organizations to help confirm
and validate our palm oil sourcing and use
strategies. P&G is working with WWF on palm
oil sourcing as part of our partnership’s efforts
focused on sustainable sourcing of materials
for P&G products and packaging.

••• Industry Influence — We will continue
to support industry efforts to eliminate
irresponsible and/or illegal deforestationof land for use in the planting and harvestingof palm plantations, as well as efforts to
help ensure the appropriate selection anddesignation of land for such uses.

GRI Index

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Results
Thirteen percent of our total 2012/2013
annual consumption of palm oil, palm kerneloil, and derivatives was RSPO certified via a
combination of Mass Balance and Book andClaim methodology. Our sites at Kuantan,
Malaysia, achieved RSPO supply chain
certification in 2011 and the vast majority ofthe supply chain is on our planned glide path
to be RSPO certified, thus we feel we are on
track to meet our 2015 commitment.
To learn more about RSPO, please go to:www.rspo.org.

Palm tree fruits

www.pg.com/sustainability

Social Responsibility

Contents•

Introduction•

2020 Goals Progress

Paper Packaging
P&G continually strives to optimize the designof our packaging to use the minimum amountand type of material that will ensure adequate
protection, delivery, and safe use of our
products. Our paper-based packaging is derived
from wood fiber and, as a result, we have a
responsibility through our procurement practices
to ensure the wood fiber in our packaging has
been responsibly sourced.

•

P&G Profile•

Environmental Sustainability

Therefore, for our paper-based packaging,
we will:• Identify source reduction opportunities todecrease material usage.
• Use recycled paper when it offers the best
option to meet performance requirements andcompetitive market conditions.
• Avoid packaging derived from unwanted
sources of wood and work collaboratively
with suppliers of virgin paper to progressively
increase the percentage from certified sources.
We give preference to FSC-certified materials
and post-consumer recycled content when
they are available and meet productperformance requirements and competitivemarket conditions.
• Expect our suppliers to be in compliance withall applicable laws.

www.pg.com/sustainability•

Social Responsibility•

Last year we established a new goal of having
100% of paper packaging be either recycled or
third-party certified virgin content by 2020.
The third-party certifications recognized for thisgoal include Forest Stewardship Council (FSC),
Sustainable Forestry Initiative (SFI), Programme
for the Endorsement of Forest Certification(PEFC), Brazilian National Forestry Certification
Scheme (CERFLOR) and Canada’s National
Standard for Sustainable Forest Management(CSA-SFM). Over the last year we have trained
our internal organization on our new
expectations and have started outreach to key
suppliers. We have also leveraged our existing
Supplier Environmental Scorecard to collect
preliminary baseline data from a subset of our

GRI Index

33 of 63

current supply base and will be working overthe course of the next year to refine our datacollection protocol and expand the scopeof coverage.
Given the complexity of the packaging supply
chain, we do not anticipate this being an easy
journey, but we will continue reporting ourprogress in future sustainability reports.

Contents•

Introduction•

2020 Goals Progress

Worth from Waste
We believe that all materials have value, even
if they have traditionally been defined as waste
and disposed as trash. At the end of life,
whether that’s after a product has been used,or after a material has gone through ourmanufacturing process, we believe there isa way to create worth from what’s left —through reuse, recycling, composting,or converting to energy. The content in thissection includes our work to reduce ourmanufacturing waste, and to pilot ways we
can find worth in consumer waste.

Manufacturing Waste
We continue to make excellent progress
towards our manufacturing waste reduction
goals. Our 2020 goal is to ensure manufacturing
waste to landfill is less than 0.5% of input
materials. In FY12/13, we reduced manufacturing
waste to 0.65% of input materials, meaning
99.35% of all input materials were beneficiallyused in products or via recycling, reuse, orenergy conversion of waste materials.
Additionally, over 50 of our sites have achieved
zero manufacturing waste to landfill. These
results have been delivered primarily by a strong
partnership between our Global Asset Recovery& Purchases team (GARP), our manufacturing
plants, our distribution centers, and ourrecycling vendors, who all continue to find new,innovative and cost-effective solutions for our
manufacturing waste.

www.pg.com/sustainability•

P&G Profile•

Environmental Sustainability

Some recent examples include:• In Mexico, paper sludge from a Charmin toilet
tissue plant is turned into low-cost roof tiles
used to build homes in the local community.
• At a U.S. Pampers site, scrap from the wipe
manufacturing process is converted to
upholstery filling.
• And, in the U.K., waste created in the
production of Gillette shaving foam iscomposted, then used to grow turf forcommercial uses.
As a result of efforts like these, P&G has saved
more than $1 billion over the last five years
from our waste efforts.
“P&G is a global leader in sustainability, and thecompany’s zero manufacturing waste initiative
is setting a standard for others to follow,” said
Steve Owens, former Assistant Administratorof the United States Environmental Protection
Agency and member of P&G’S Sustainability andTechnical Expert Advisory Panel. “P&G’s efforts
are helping protect the environment, conserve
precious natural resources, and make our planet
cleaner and healthier for our children, families,
and future generations.”T o learn more about our definition ofzero manufacturing waste tolandfill — please go to: www.pg.com/
en_US/downloads/sustainability/reports/
ZeroManufacturingWaste.pdf.
L earn about these and other innovative
reuse stories in the short video Worthfrom Waste: www.youtube.com/
watch?v=GPLqLBT5q8c.

•

Social Responsibility•“P&G is a global leader
in sustainability, andthe company’s zero
manufacturing waste
initiative is setting astandard for others
to follow.”
Steve Owens, former Assistant
Administrator of the United States
Environmental Protection Agency
and member of P&G’S Sustainability
and Technical Expert Advisory Panel
Consumer Waste
We continue to evaluate consumer waste
reduction pilot opportunities in both thedeveloped and developing regions. One of our
key pilot programs is our Waste to Worthproject in the Philippines. Waste to Worth is aneffort focused on developing an integrated,
profitable, and replicable waste managementbusiness model that extracts value from waste.
We have recommended a facility owner/
operator (SURE Global W2Wi) who is in theprocess of signing an agreement with the lead
Philippine city. Given strong support from thenational government, the National Solid Waste
Management Commission and the AsianDevelopment Bank, we have received inquiries
from other communities interested in serving as
future “Waste to Worth” pilots and haveinitiated discussions with them as well. We willcontinue to report our progress on these efforts
via our sustainability report.

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GRI Index

Waste Disposed(Percent reduction versus 2010, per unit of production)
11

-24%

12

-47%

13

-56%

Disposed Waste by GBU(Thousands of metric tons)
11

309

12
13

215
180
Technical Centers
Health Care
Grooming
Fabric and Home Care

Distribution Centers
BeautyBaby Care and Family Care

Non-Hazardous Waste by GBU(Thousands of metric tons)
11

247

12
13

158
133
Technical Centers
Health Care
Grooming
Fabric and Home Care

Distribution Centers
BeautyBaby Care and Family Care

Hazardous Waste by GBU(Thousands of metric tons)
11

24

12

21

13

19
Technical Centers
Health Care
Grooming
Fabric and Home Care

Distribution Centers
BeautyBaby Care and Family CareContents••

Introduction

2020 Goals Progress•

P&G Profile•

Environmental Sustainability••

Social Responsibility

35 of 63

GRI Index

Resource and Waste Summary Table
The table below reports environmental statistics for Manufacturing Operations in the Global Business Units, Technical Centers and Distribution Centers.
Totals (absolute units x 1,000)

2013 Global Business Unit Detail (1) (absolute units x 1,000)

2013

2012

2011

Baby Care andFamily Care

BeautyDistribution
Centers

Fabric andHome Care

Grooming

Health Care

Technical
Centers

26,57025,61826,021

4,145

2,120

0

18,762

777

766

0

592

618

594

Generated Waste

949

981

1,013

289

144

28

344

30

98

16

Percent Recycled / Reused Waste

81%

78%

69%

91%

35%

7%

90%

10%

31%

3%

Production (metric tons)

Product Shipped (2)Raw Materials from Recycled Sources(3)

Waste (metric tons)

Disposed Waste (metric tons)

Waste Disposed

180

215

309

28

43

7

85

1

10

7

Solid Waste — Non-Hazardous

133

158

247

18

39

6

57

1

7

5

Solid Waste — Hazardous

19

21

24

0

0

1

14

0

2

2

Effluents (excluding water) (4)

16

23

24

2

3

0

9

0

1

1

Air Emissions (5)

12

13

15

7

1

0

4

0

0

0

Energy Consumption (gigajoules)

72,307

72,79074,38542,2494,183

607

17,340

2,475

2,878

2,575

Direct Greenhouse Gas Emissions (metric tons) (6)

2,767

2,817

3,080

1,915

123

18

534

63

44

71

Other

Total Greenhouse Gas Emissions(metric tons) (7)Water Consumption (cubic meters)
SARA Releases (metric tons) (8)

5,738

5,808

6,188

3,124

436

56

1,401

232

252

237

74,32078,74180,19043,1457,232

016,892

839

1,798

4,413

2.49

2.23

2.57

0.003

0.032

0.000

2.453

0.000

0.002

0.000

	Numbers listed in italics have been updated since the 2012 report was issued. Updates were generally minor corrections based on updated totals. For reference, the data that was originally reported in 2012
can be accessed via our 2012 sustainability report which is available at www.pg.com/sustainability.
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. Fabric Care and Home Care
includes Fabric Care, Home Care, Batteries, Snacks and Pet Care. Baby Care and Family Care includes Baby Care and Family Care. Technical Centers includes each of the technical and research centers that
support the business units. Distribution Centers includes facilities that distribute finished product. Numbers do not include production from contract manufacturing operations.
(2) Estimated from shipment figures.
(3) Data is tracked at a corporate level.
(4) Wastewater chemical oxygen demand (COD).
(5) Air emissions include particulates, SO2, NOx, CO, and VOC.
(6) Greenhouse gas emissions resulting from fuel combustion sources.
(7) Greenhouse gases resulting from fuel combustion sources and purchased energy.
(8) Releases defined in the U.S. Superfund Amendments and Reauthorization Act (SARA) by the U.S. Environmental Protection Agency.

www.pg.com/sustainability

Contents•

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability

Social Responsibility
Doing the right thing is the foundation of P&G’s Purpose, Values,
and Principles. It is naturally woven into the way we work every
day — paying competitive wages, working consistently with our retailers
and suppliers, preventing conflicts of interest, ensuring consumer privacy,
and maintaining financial stewardship. This approach to business isat the heart of all we do at P&G.
Doing the right thing also includes investing in the communities in which
we live, work, and serve. At its core, P&G Social Responsibility efforts
aim to improve lives, which has been the Company’s intention for morethan 175 years.
In this section we provide perspective on our Social Responsibility
Programming, as well as our policies and practices.

•

Social Responsibility•

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Contents•

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability•

Social Responsibility•

GRI Index

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SOCIAL RESPONSIBILITY PROGRAMS
Consistent with P&G’s strengths, we focus our work on providing the comforts ofhome and improving health and hygiene for people around the world. Through thiswork, we are leveraging the company’s core competencies to address critical social
needs, such as those outlined in the United Nations Millennium Goals focused on
housing and sanitation as well as child and maternal health.
Our two focus areas for our social responsibility programming are:Comforts of Home

Health and Hygiene

P&G is providing everyday essentials that help create theexperience of home for families who can’t afford them or
who have been displaced.

P&G is supporting hygiene education and everyday healthy
behavior changes that prevent illness and improve confidence.

By focusing where we can uniquely add value, P&G can make a bigger impact on the communities in which we live
and work, around the world. Our social responsibility programs come to life through partnerships with organizations
who have the expertise and capability to help implement these initiatives.

www.pg.com/sustainability

2020 Goal Update
In 2012/13, P&G social programs benefited morethan 60 million people in need around the world,
exceeding our annual goal of 50 million. P&G iscommitted to using our unique capabilities toimprove life. Just this year, P&G supported people inneed around the world by providing 20,000 personalcare kits for disaster victims, and provided the
6 billionth liter of clean drinking water through the
P&G Children’s Safe Drinking Water program.

Contents•

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability•

Social Responsibility•

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Social Responsibility Program Locations
Asia• Australia• Bangladesh• Cambodia• China• East Timor• Hong Kong
• India• Indonesia• Japan• Laos• Maldives• Malaysia• Myanmar• Nepal• New Zealand• North Korea• Papua New Guinea• Philippines• Singapore• South Korea• Sri Lanka• Taiwan• Thailand• Vietnam

Central andEastern Europe,
Middle East andAfrica• Afghanistan• Angola• Algeria• Azerbaijan• Botswana• Bulgaria• Burkina Faso
• Cameroon• Chad• Côte d’Ivoire• Croatia• Czech Republic• Democratic
Republic of theCongo• Djibouti• Egypt• Estonia• Ethiopia• Gabon• Georgia• Ghana• Guinea-Bissau• Hungary• Iceland• Iran• Iraq• Israel• Jordan• Kazakhstan• Kenya• Kyrgyzstan• Latvia• Lebanon• Liberia• Lithuania• Madagascar• Malawi• Mali• Mauritania• Mongolia• Morocco• Mozambique• Namibia• Niger• Nigeria• Pakistan• Poland• Romania• Russia• Rwanda• Saudi Arabia• Senegal• Sierra Leone• Slovenia• Slovakia• Somalia• South Africa• South Sudan• Syria• Tajikistan• Tanzania• Turkey• Turkmenistan• Uganda• Ukraine• Uzbekistan• Zambia• Zimbabwe

Latin America• Argentina• Brazil• Chile• Colombia• Costa Rica
• Dominican Republic• El Salvador• Guatemala• Guyana• Haiti• Honduras• Mexico• Nicaragua• Panama• Peru• St. Lucia• Venezuela

North America• Canada• Puerto Rico
• United States

Regions with social programs in place

www.pg.com/sustainability

Western Europe• Belgium• France• Germany• Greece• Italy• Netherlands• Portugal• Spain• Sweden• Switzerland• United Kingdom

Contents•

Introduction•

2020 Goals Progress•

Comforts of Home
The following programs represent some of
P&G’s efforts within the focus area Comfortsof Home.
Disaster Relief
P&G’s commitment to support victims after widespread disasters
is a natural expression of our Purpose to improve lives. When adisaster strikes, our response is anchored in product donations.
Collectively, our brands can meet many of the most basic needs
people have when they’re displaced and have lost accessto everyday essentials to help them experience the comfortsof home. This past year, P&G responded to disasters in India,
Guatemala, United States, Canada, Germany, Austria and thePhilippines.
Habitat for Humanity International
P&G partners with Habitat for Humanity in their efforts toprovide decent, safe, and affordable places to live for families
in need by sponsoring home builds around the world in over
12 countries. Over 3,000 employees have committed to help
build and clean homes, and P&G is providing product donations
to first-time homeowners.

www.pg.com/sustainability

P&G Profile•

Environmental Sustainability•

Social Responsibility•

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SOS Children’s Villages

Downy Touch of Comfort

SOS Children’s Villages is the world’s largest charity dedicatedto orphaned and abandoned children — raising children without
homes in villages in 133 countries. P&G support helps SOS
children have the benefit of a stable, loving family environmentthat includes health and hygiene education and the necessities
of life and home.

In the United States, Downy has partnered with Quilts for Kids tohelp create and deliver homemade quilts to comfort hospitalized
children. These quilts help to provide a comfort of home tochildren who may be spending their first night away from home
in a hospital where they are typically restricted from bringing
their favorite stuffed animal or other non-machine washable
items from home. Since the program’s inception, Downy has
provided over 20,000 quilts to hospitalized children.

Collectively, our brands
can meet many of the mostbasic needs people have whenthey’re displaced and havelost access to everyday essentials
to help them experience the
comforts of home.

Contents•

Introduction•

2020 Goals Progress

Health and Hygiene
The following programs represent some of
P&G’s efforts within the focus area of Healthand Hygiene.
P&G Children’s Safe Drinking Water Program
The P&G Children’s Safe Drinking Water program (CSDW) is
helping the nearly one billion people in the developing world
who do not have access to clean drinking water. Through P&G
Purifier of Water packets, potentially deadly water is turned into
clean, drinkable water. Each packet treats 10 liters of dirty water,
and they are portable, so they can be used anywhere in theworld, including areas affected by natural disaster. P&G iscommitted to making a difference through this program as
we strive to save one life every hour by 2020.

•

P&G Profile•

Environmental Sustainability•

Social Responsibility•

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Pampers UNICEF Vaccination Program

Pantene Beautiful Lengths

Since 2006, Pampers’ funding has helped to protect 100 million
women and their babies against maternal and neonatal
tetanus — a preventable disease that claims the lives of 58,000
babies within their first month of life. The Pampers-UNICEF
partnership has already helped eliminate MNT in ten countries.
Pampers is committed to support UNICEF in their efforts toeliminate MNT from the face of the earth.

Beautiful Lengths, a partnership between Pantene and The
American Cancer Society, allows Pantene to help women growand donate long, strong, beautiful hair and provide the funds toturn this hair into free, real-hair wigs for women with cancer.
Since 2006, the campaign has received more than 480,000 hair
donations from generous men, women and children. More than
28,000 real-hair wigs have been provided to female cancer
patients for free in the U.S. and Canada, giving them confidence
to face everyday challenges during the fight of their lives.

Wella Making Waves
Partnering with UNICEF, WELLA Professionals offers vulnerable
young people in emerging countries a more beautiful outlook
through life skills training and hairdressing education. Since thelaunch of WELLA-UNICEF Making Waves in 2010, the project hashelped more than 7,000 vulnerable young people realize theirpotential and make a sustainable living in Brazil and Romania.

CSDW Goal Update
We have delivered over 1.2 billion liters of clean water
this year, and we are on track to meet our goal to“Save One Life Every Hour” which requires that wedeliver 2 billion liters every year by 2020. Highlightsfrom the past year include opening of the new P&G
Purifier of Water packet manufacturing site inSingapore in November 2012, reaching the 6 billionth
liter milestone and announcing a Global Development
Alliance partnership with USAID for a Healthier
Myanmar in May 2013.
P&G employees helped
migrant children in
China learn daily
handwashing behaviors.

www.pg.com/sustainability

GRI Index

Contents•

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability•

Social Responsibility

SOCIAL RESPONSIBILITY
POLICIES AND PRACTICES
Responsible business practices are embedded within P&G’s culture, beginning with
our Purposes, Values, and Principles. We believe the interests of the company andthe individual are inseparable. We recognize the important responsibility we haveto operate ethically, in accordance with the law, and with respect for all individuals.
The following pages share our approach to responsible operations within the areaof social responsibility.
Policies and Practices• Human Rights• Stakeholder Engagement• Human Resources• Advertising and Promoting
to Consumers Appropriately• Diversity• Global Medical• Worldwide Health, Safety,
and Environment Systems• Compliance with Laws
and Regulations• Notices of Violation (NOVs)• SARA 313 Releases

www.pg.com/sustainability• Eliminating Research
Involving Animals• Sustainability Guidelines for
Supplier Relations• Supplier Diversity• Personal Information Privacy•

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Contents•

Introduction•

2020 Goals Progress

Human Rights
During the last year, P&G has continued its
involvement in a number of human rights andother related social responsibility initiatives:
1. Continued to monitor the work of the
UN Working Group on Business andHuman Rights, including discussions with
Mr. Puvan Selvanathan, the current Chairof the Working Group.
2. Member of the UN Global Corporate
Community of Practice that is developing
due diligence best practices.
3. Hosted and discussed best practices
associated with International Labor andHuman Rights conducted by the Human
Resource Policy Association (HRPA).
Thirty-five participants from eightcompanies (including P&G) attended.
4. Participated in the annual Human Rights
seminar sponsored by The Coca-Cola
Company. This year’s focus was on
implementing respect for human rights.
5. Continued leading the Human Rights Work
Stream effort within AIM-Progress to build
the capability of members to conduct
human rights due diligence of their supply
chains focusing on assessing actual andpotential human rights impacts.

www.pg.com/sustainability•

P&G Profile•

Environmental Sustainability

Respect for human rights is implemented
through our policies, practices, and due
diligence systems (e.g., employee rights;
employee benefits; health, safety, andenvironment; water; health services; HIV/AIDS;
product safety; worldwide business conduct
manual; Sustainability guidelines for Suppliers’
Relations; and our Comforts of Home andEveryday Health & Confidence programs).
Last year we used the UN Guiding Principles todevelop a human rights policy statement. The
intent of this policy is to demonstrate ourrespect for human rights as expressed in theInternational Bill of Human Rights (i.e. Universal
Declaration of Human Rights and theInternational Covenants on Economic, Social
and Cultural Rights and Civil & Political Rights.)
We continue to vet this draft policy internallyas well as externally with several companies anda human resource trade association. We are in
the final stages of review and expect to finalize
the policy during FY13/14.

•

Social Responsibility•

Human Resources
Human Resources ensures that P&G
has the employees, organizational
design, and work culture to deliver
business productivity and to continually
improve consumer, employee, andshareholder value. They provide
recruiting, training, development,
diversity, benefits, and compensation
coordination for the Company.
It is the Company’s intent to develop all
employees to their full potential. To achieve thisgoal, the following support systems are in place:• Career discussions, performanceappraisals, assignment plans, transfer
and promotion plans.
• Informal network support groups.
• Mentoring to provide informal support andguidance, in addition to coaching and training
provided by each employee’s direct manager.

Employee Privacy
Procter & Gamble is committed to maintaining
the principles of integrity and trust with respect
to our employees’ privacy. We will only collectpersonal information about our employees
where it is necessary to carry out legitimate
business objectives and to provide employee
services. Access to employee data will be limited
to only those that have a legitimate businessneed or to fulfill a legal requirement.

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Harassment Policy
P&G is committed to providing a harassmentfree work environment. This is the right thing to
do not only from a social perspective but also
from a business perspective. It enables ourdiverse workforce to contribute to their highest
potential. We will not tolerate harassment ofanyone by anyone — including employees,
suppliers, customers, contractors, and agencies.
Every employee is expected to be proactive inensuring that the work environment is free fromharassment of any kind. Managers of others are
responsible for setting clear expectations for
acceptable behavior in the workplace.

Wages
P&G supports paying employees a competitive
wage, as benchmarked against other leading
companies. Consistent with our principle ofvaluing personal contribution and mastery, we
provide employees the opportunity to develop
their skills and capabilities to enhance theirability to succeed in their career, consistent with
the needs of the business.

Benefits
P&G is a recognized leader in employee benefits.
The Company’s benefits have been developed tohelp protect the financial security of employees.
These benefits include comprehensive coverage forhealth care, vacation and holiday time, and otherwork/family balance benefits, including flextime,child care leave, and less-than full-time schedules.

Contents•

Introduction•

2020 Goals Progress

Diversity & Inclusion
Diversity & Inclusion has always been a part ofour DNA and all we do. It is part of our Purpose,
Values and Principles and critical to businessgrowth. And as we continue on our journey, we
have become more deliberate with our diversity
efforts to ensure that inclusion is a key focus
area. And we want to be recognized as a Global
Leader for Diversity and Inclusion.
As a Company, our business model is built on
and driven by consumers. Consumers are at theheart of everything we do. We cannot create
brands and products to improve the lives of theworlds’ consumers unless we understand andvalue the diversity of those we serve and those
we work with.
To do so, we have a mission to ensure Everyone
Valued, Everyone Included, Everyone Performingat Their Peak.™
We strive to develop a workforce that reflects
the markets and consumers we serve and to
fully value and leverage their experiences,insights and talents. And we are respectful of all
employees regardless of race, gender, color,religion, national origin, age, sexual orientation,
gender identity and expression, disability, or any
other non-job related personal characteristic.

www.pg.com/sustainability•

P&G Profile•

Environmental Sustainability

Diverse Talent Throughout
P&G is a build-from-within Company. Just as ourconsumers are global and diverse, so are our
employees. By design, we ensure that leadershiphas broad, global perspectives. We recruit top
talent from diverse backgrounds and cultures
around the world. Our employees need toreflect the diverse markets and consumers weserve. P&G employees represent more than 140
nationalities worldwide, and we have the mostglobally diverse and experienced leadershipteam in the Company’s history.

Trusting, Open, and Inclusive
CultureAt the core of our strategy, we want to foster aculture of inclusion so that everyone is valued,
included, and performing at their peak. To
support our diverse and global workforce, wehave seven corporate affinity groups. P&G’s
affinity groups offer an internal forum for
employees to connect and build a strong senseof community as well have the opportunity to
be in service to the Company to deliver betterbusiness results. Affinity groups also aim toensure we attract, develop, and maintain adiverse workforce.
Structurally, each group is sponsored by a seniorleader in the Company and regularly meets withexecutive leadership on key areas andopportunities. Additionally, there are also
numerous grassroots employee resource groups
throughout the Company, representing a large
variety of diverse interests throughout our entire
employee population.

•

Social Responsibility•

P&G’s affinity groups began in the early 1960s
and have continually evolved, formalizing in the
1990s, and continuing on a journey to help P&G
further foster a culture of high inclusivity.
We want to foster a culture of inclusion so thateveryone is valued, included, and performing attheir peak.

Embedded in Our Culture for
Lasting Change
Diversity & Inclusion capabilities aim to fosterand grow an open and inclusive culture througha blended learning approach (classroom,
webinars, assessment tools, and employee
interest groups). Topics include flexibility, culturalcompetency, affinity (People with Disabilities,
Gender and Lesbian/Gay/Bisexual/Transgender),generations, and understanding differences inworking and thinking styles. Understanding
differences enables employees to build
collaborative diverse relationships to successfully
drive business growth.
Foundational Diversity & Inclusion capability
focuses on key concepts such as microinequities, unconscious bias, benefits inleveraging diversity, and intent versus impact
on others. By understanding these types ofdifferences, it enables our employees to be intouch and build collaborative diverse
relationships so that we can all successfully
grow our business together.

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Contents•

Introduction••

2020 Goals Progress

P&G Profile•

Environmental Sustainability

Diversity Metrics

External Recognition

P&G continues to focus on diversity as a global strategy andexpects its workforce to become increasingly diverse, enabling
us to serve more of the world’s consumers. Global data onenrollment by gender is shown in the following table:

Working Mother

Global Enrollment

2013

2012

2011

Management

43.6

43.0

42.3

All Other Employees (1)

39.0

37.1

37.2

% Female•Social Responsibility

U.S. Enrollment

2013

2012

2011

% Minorities
Management

24.0

23.9

23.7

18.0

18.1

18.7

Management

42.0

41.7

41.4

Non Management (1)

36.0

38.3

37.8

Non Management(1)% Female(1) Administrative, Technical, and Plant Technicians

GRI Index

Human Rights Campaign• Rated “90” on Corporate Equality Index• 2011 Greater Cincinnati Corporate Equality Award• Top 10 Companies for Multicultural Females (2013 — Top 10)

Disability Matters• Top 10 Companies for Working Mothers (2013 — Top 10)• 2012 Disability Matters Workforce Award(second consecutive year)

DiversityInc• 2012 Disability Matters Disability Champion Award— Miguel Garcia• Top Companies for Diversity (2013 #7)• Top 10 Companies for Latinos (2013 #2)

ABILITY Magazine• 2010 Best Practices Award• Top 10 Companies for Asian Americans (2013 #2)• Top 10 Companies for Recruitment and Retention (2013 #5)• Top 10 Companies for Executive Women (2012 #5)• Top 10 Companies for Cultural Competence (2012 #3 )Women Corporate Directors• 2011 Visionary Award for Leadership in Governance— Bob McDonald

Women’s Business Enterprise Hall of Fame

Fortune• Corporate Advocate Category —2011 Inductee• 2013 Most Powerful Women (Melanie Healey #11;
Deborah Henretta #17, MaryLynn Ferguson McHugh #29)

DiversityBusiness.com

Nikkei Woman’s Best Place to Work

• Top 50 Organizations for MulticulturalBusiness Opportunities (2012)• P&G Japan #2 (2012)

Women Engineers Magazine• Top 50 List

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• NAFE Top 10 Companies for Executive Women (2013 — Top 10)• Top 10 Companies for People with Disabilities (2013 #2)
The percentages of minority and female employees in the UnitedStates are shown in the following table:•

Contents•

Introduction•

2020 Goals Progress

Global Medical
We touch and improve the lives of ouremployees with focused delivery of our
five Global Medical Priorities.
The P&G Medical vision “Healthy People,
Healthy Business” reflects the importance of thewellness, productivity and innovativeness of
employees. Our global Employee Health andWellness Policy insures that we deliver:• the same corporate health and wellness
standards at all P&G locations consistently
around the world, assuring that sites provide
employees with the appropriate level ofoccupational health assurance programs andservices;• comprehensive and effective emergency carefor our employees, onsite contractors andvisitors at all our facilities;• compliance with related laws and regulations
and share this expectation with all of ourbusiness partners;• a culture of health and actively involve
employees in protecting and promoting theirown health and wellness by providing highquality health services and programs such as
Vibrant Living;• WorkLife Solutions and Employee Assistance
Programs (EAP) to support employees andtheir families.

www.pg.com/sustainability•

P&G Profile•

Environmental Sustainability

During the past year, Global Medical deliveredin times of regional crisis, assisting our
employees and local health providers withmedical guidance, supplies, and support.
Our programs are making a difference. Our
P&G Health Services/Vibrant Living HealthCenters sites worldwide had over 364,000 visitsby employees in the past fiscal year. Over thelast 3 years, we have seen an annual increasein employee visits to our Health Centers sites
Health Care Visits
11
12
13

250,000
336,000
364,000

Employees who utilized Health Services oron-site Health Programs reported better
personal well-being scores of 10 percentage
points or higher compared to those not using
these services and programs as measured by the2013 P&G Employee Survey. Also, employees
who utilized WorkLife Solutions and Employee
Assistance Programs had personal well-beingscores of 14 percentage points higher thanthose who did not use these services.

•

Social Responsibility•

Since P&G is a principles-driven company, thefollowing Global Medical Priorities drive all of
our health systems worldwide:
1. Save a Life (Protect Our People)
2. Obey the Law (Protect Company Reputation)
3. Protect Key Technologies(Protect Brand Integrity)
4. Enhance Speed to Market (Support
Emerging Technologies and New
Business Development)
5. Inspire Health and Wellness (Vibrant Living,
Travel Medicine Support, Global WorkLife
Solutions and EAP Programs

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GRI Index

We ensure consistent global delivery of highquality health systems via our Health Systems
Key Elements (HSKE) site audit process. HSKE
defines the corporate governance, country legal& clinical governance standards & requirementsfor our health systems worldwide. This year we
renewed and updated all standard operatingprocedures and added standards andrequirements to build strong customer focus
into our services. Also, we developed anddeployed comprehensive global training andguidance manuals.
GLOBAL MEDICAL SYSTEMS
Save aLife

Obey
the Law

Protect
Key Technologies

Enhance
Speed toMarketEmployee-centered Care
Vibrant Living Health Centers

InspireHealth andWellness

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2020 Goals Progress••

P&G Profile

Environmental Sustainability•

Social Responsibility•

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GRI Index

P&G Vibrant Living

Highlights of our progress include:

In 2013, we continued the global rollout of the
P&G Vibrant Living initiative with the intent tobring all Health & Wellness programs together
to better serve our employees and their families.
Our vision is to become the Healthiest, Most
Engaged People in the World. P&G’s Vibrant
Living strategy reflects these three focus areas:

Vibrant Living branded programs have beenrolled out to 198 P&G sites in 47 countries (seemap for Vibrant Living program countries).

Over 259 Vibrant Living Health Coaches (nurse
and physicians) and Champions have been
trained and qualified across all five regions (Asia,
CEEMEA, Latin America, North America, andWestern Europe).

The Vibrant Living Site Certification Program
was developed and deployed globally to ensurethat our Culture of Health goals are met.
Thirty-three sites have now attained Vibrant
Living Certification, and many more applications
are currently under review

Sites with Vibrant Living Branded Programs

Vibrant Living Health Coaches and Champions

Vibrant Living Program Countries

Culture of Health — through emphasis on
nutrition, fitness, easy access to our healthinformation, and an environment thatencourages healthy choices and personal
management of health risks.

11
12
13

11

126

12

168
198

13

11 2

80

12

152
259

13

Health Education and Training — throughprograms like Corporate Athlete and WorkLife
Solutions/EAP Programs.
Employee Engaged Health Care — provides
greater understanding of local health careresources and enables informed individual
health choices.

Countries with Vibrant Living branded programs

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33

Contents•

Introduction•

2020 Goals Progress•

Worldwide Health, Safety, andEnvironment Systems
Health and Safety Policy
P&G is committed to having safe and healthy operations aroundthe world. The goals are to protect the lives and health of its
employees and the communities surrounding its operations, aswell as to protect its assets, ensure business continuity, andengender public trust.
To accomplish this, P&G will:• Operate facilities safely and ensure that processes are safe andhealthy for our employees and residents of the surrounding
communities. We will accomplish this by following uniform
corporate safety-standards around the world. Safe operations
have been a longstanding part of Company culture, reflecting
the belief that our employees are our most important asset.
• Construct our facilities so as not to compromise on the safety
and health features designed into them.
• Monitor progress toward our objective of preventing injuries,
illnesses, and incidents. We will continually assess and improve
our safety and health technologies and programs.
• Have every employee understand and be responsible forincorporating safe behavior in daily business activities. Every
employee is trained to work in a safe and healthy manner.
• Have operating standards, practices, systems, and resources inplace to implement this policy.

P&G Profile•

Environmental Sustainability•

Social Responsibility

Worldwide Health, Safety & Environment
Organization
Health, Safety & Environment (HS&E) is a global communityof resources responsible for ensuring that all sites
worldwide — including Innovation Centers, Distribution Centers,
acquisitions, and established plants — are operated safely andlegally; that process hazards are minimized or eliminated; that
health risks are identified and managed or eliminated; and thatwaste from sites is reduced as much as possible. Several thousand
employees spend all or a portion of their time on HS&E
management. This year, 1,776 full-time equivalents were involvedin HS&E activities. This is down 4% from 1,783 FTEs last year andreflects the reorganization of P&G HS&E systems into a more
focused support structure.
HS&E total costs for existing sites, which includes costs for
personnel, operations, and contractor expenses for HS&E activities
in 2012–2013, were $161.9 million, which is up 12% versus lastyear’s $146.7 million. Efforts to reduce the amount of waste
disposed have increased our overall quantity of recycling, andrevenue generated from these recycling activities was $59 million,
up 6.5% from last year.
There are three major components to a site’s HS&E organization:
Environmental, Technical Safety, and Industrial Hygiene & Safety
leaders; Fire Protection Systems leaders; and an overall HS&E
leader. The HS&E site organization also closely partners with thesite Health Service, or Medical leader. P&G uses a phased, detailed
Risk Assessment process to evaluate the safety of processes andinitiatives being introduced at its own manufacturing operations
as well as at contractor manufacturing operations. The Risk
Assessment process is designed to enable high-speed innovation.
P&G has verified that the HS&E program at all its manufacturing
facilities meets the intent of the environmental management
standard ISO 14001. In 2006, we extended verification to the
Global Health and Safety Management standard OSHAS 18001.
This verification was conducted by Environmental Resources
Management (ERM), a highly respected international consulting
firm in the field of environment, health, safety, and sustainability.

www.pg.com/sustainability•

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Contents•

Introduction•

2020 Goals Progress

Industrial Health and Safety
The health and safety of P&G employees areparamount in the principles of the Company:• Nothing we do is worth getting hurt
• Safety can be managed• Every illness and injury could and should havebeen prevented• Safety and health are everyone’s responsibility•

P&G Profile•

Environmental Sustainability

The Company tracks and reports two metrics
for worker safety: total incident rate (TIR) andtotal lost workday case rate (LWDC). TIR includes
all cases that result in loss of consciousness,
lost workdays, restriction of work or motion,
medical transfer to another job, or medical
treatment beyond first aid. LWDC includes allcases that involve days away from work or daysof restricted activity beyond the day of injury
or onset of illness. The TIR target for sites is tobe below 0.5 cases per year, per 100 employees.
To achieve such rates, programs to address
employee safety, such as safe behaviors,
ergonomics, and confined space entry havebeen implemented. No target has been set for
LWDC. Instead, incidents that potentially could
lead to lost workdays are managed. The
following data is based on criteria established by
P&G for use at all sites including acquisitions,plants, and technical centers. This year’s TIR was
lower versus last year, at 0.34 versus 0.36
incidents per 100 employees, while the lost
workday rate was flat at 0.19 versus 0.19 cases
per 100 employees one year ago. Both are
lower than industry averages.

••

Social Responsibility

Audit Programs

Total Incident Rate

(Injury and illness per 100 employees)
11

0.38

12
13

48 of 63

GRI Index

0.36
0.34

Total Lost Workday Case Rate

(Lost and restricted workday cases per 100 employees)
11

0.21

12

0.19

13

0.19

P&G has over 30 manufacturing plants andtechnical centers celebrating over 3 million safe
work hours without a lost workday injury. The
charts below highlight some of our top facilities
from ranked by number of safe work hours.

P&G’s HS&E audit programs are designed toensure compliance with national, state, andlocal regulatory requirements as well as
corporate standards and procedures. Audit
findings are reported promptly to the business
management teams, who must address andcorrect all issues in a timely manner. P&G’s
audit programs apply to all plants, innovation
centers, and distribution centers, worldwide.
The fundamental philosophy is to use standards
worldwide, implemented by trained
professionals at facilities and audited eachyear using a consistent, comprehensive
approach. The metrics used are consistent withthat philosophy. Audits measure performanceagainst a mandatory set of standards andstandard operating procedures. The target
performance is 8.0 or better on a 10-point
scale. The percentage of sites audited this year
was 99%.
Sites Conducting Annual Audits(Percentage)
11

96%

12

97%

13

99%

Top 5 sites with highest safe working hours
Manufacturing Sites
Site

Technical Centers
Safe Hours*

GBU

RegionSite

Grooming

NA

Kobe Innovation Center

Safe Hours*
19,500,000

GBU

RegionTechnical Centers

Asia

Boston11,600,000

Ibadan10,000,000

Fabric and Home Care

CEEMEA

Sharon Woods Technical Center

14,600,000

Technical Centers

NA

Jeddah MPC

7,700,000

Baby Care

CEEMEA

Brussels Innovation Center

8,900,000

Technical Centers

WE

Auburn6,900,000

Feminine CareNA

Beijing Technical Center

8,600,000

Technical Centers

Asia

Rakona6,800,000

Fabric and Home Care

CEEMEA

Costa Rica Office6,800,000

OfficesLA* Rounded down to the nearest 100,000

www.pg.com/sustainability

Contents••

Introduction

2020 Goals Progress•

P&G Profile•

Environmental Sustainability•

Social Responsibility•

49 of 63

GRI Index

HS&E Audit ScoresFire Protection

Fire Protection Audit Scores

Site HS&E Leadership Training

P&G HS&E resources have been working
through a rigorous calibration exercise across all
geographies to ensure an appropriate calibrationand focus on potential high-risk areas. Thiscalibration exercise is helping to ensure we areholding ourselves to the highest standards andhas resulted in a decrease in the number of sites
achieving scores of 8.0 or higher. In addition,
we also included a number of recent acquisition
sites this year. As is typical with manyacquisitions, it takes time for them to reach an
HS&E audit score > 8.0 and several sites are stillshort of that target. Both of these factors
contributed to the decrease in the percentage ofsites with HS&E audit scores > 8.0 since 2011.
However, since last year we have increased thepercentage of sites that have audit scores > 8.0
and have plans in place drive additional progressover FY13/14.

P&G operates its fire protection program on thebasic principle that each facility is unique andshould have a program designed to meet its
specific requirements. Working with theInsurance Division, HS&E has developed achecklist-based assessment process that
evaluates the fire protection equipment,
maintenance and inspection, and emergency
response capability of a site versus theappropriate level of fire protection required atthat site. Each plant, innovation center, andmajor distribution center is assessed annually.
The target performance is 8.0 or better on a
10-point scale.

The fire protection assessment program waschanged significantly in 2011 even though we
had a historically low number of fire losses andno regulatory issues. The new audit process was
designed to be much clearer and calibrated
relative to our internal fire protection standards.
These process changes resulted in a more
rigorous and globally calibrated approach to
conducting these assessments. This 2011
process change decreased the number ofsites with scores > 8.0. However, since thatintervention we have been making steadyprogress and this year, 61% of sites had Fire
Protection audit scores over 8.0. Sites willcontinue to work against action plans toimprove scores over the course of the next year.

A key indicator of HS&E systems capability is thepercentage of sites with trained and qualified
leaders. Leadership candidates train on-site foran extended period after attending a week-longseminar where their knowledge and ability tohandle specific situations are assessed. For full
qualification, the candidates must complete a
qualification project at their own plant. Similar
to our HS&E audit scores, we have seen a recent
decrease in the number of qualified leaders due
to acquisitions and normal attrition. Short term
gaps are covered via corporate resources while
we accelerate training plans. Currently 65% ofsites worldwide have HS&E leaders qualified by
Corporate/GBU staffs, and 76% have qualified
fire-protection leaders. This training andqualification program applies to all sites,
including Technical Centers and acquisitions.

Sites with HS&E Audit Scores > 8.0(Percentage)

Sites with Fire Protection Audit Scores > 8.0(Percentage)
11

51%

12

52%

13
11

77%

12

66%

13

69%

Sites with HS&E Qualified Leaders(Percentage)
61%

11

91%

12
13

92%
65%

Sites with Fire Protection Qualified Leaders(Percentage)
11

87%

12
13

www.pg.com/sustainability

87%
76%

Contents•

Introduction•

2020 Goals ProgressCompliance with Laws
and Regulations
There are numerous health, safety, andenvironmental requirements worldwide. Plants
are subject to safety rules and emission limits
with operating requirements that may beembodied in sources such as statutes,
regulations, laws, and permits. It is P&G’s intent
to comply with both the letter and the spirit ofstatutes, regulations, laws, and permit
requirements. Identified compliance issues aretreated seriously, and all noncompliance matters
are resolved as expeditiously as possible.

•

P&G Profile•

Environmental Sustainability

Social Responsibility•

Notices of Violation

Air Emissions

In 2013, we saw an increase in total penalties.
This was primarily due to a single penalty
received for a third-party vendor improperly
handling our waste products. The fine is still
under review, but is included in the summary
numbers below. Using the learnings from thisincident, we have put additional focus on
evaluating how third-parties are handling ourwaste materials.

Each site monitors total suspended particulates,
volatile organic compounds (VOCs), carbon
monoxide (CO), nitrogen oxides (NOx), andsulfur oxides (SOx). Overall, the total air
emissions decreased versus last year to 12
thousand metric tons.

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50 of 63

SARA 313 Releases(United States only)

Air Waste by GBU(Thousand of metric tons)
11

2013

2012

2011

12

43

34

36

13

$709,061$93,760$53,259

NumberFines

A breakdown of Notices of Violations (NOVs) is
provided below:

www.pg.com/sustainability•

Numberof NOVs

Fines

Water-Based10$26,100

Air-Based

6$7,748

Solid Waste-Based

4$608,400

Paperwork

2$365

Transportation-Based4$13,027

Other

1

$0

Worker Safety

16$53,421Total

43$709,061

15
13
12Technical Centers
Health Care
Grooming
Fabric and Home Care

Distribution Centers
BeautyBaby Care and Family Care

U.S. P&G plants report annually on the releaseof toxic chemicals to the air, water, and land.
These releases are defined in the U.S. Superfund
Amendments and Reauthorization Act (SARA)
by the U.S. Environmental Protection Agency.
The purpose of this documentation (referred
to as section 313) is to report publicly thereleases and transfers of hazardous chemicals
as defined by the agency.
SARA 313 U.S.

(Total metric tons released or transferred)
11
12*
13

2,570
2,228
2,486

* The 11/12 data previously reported in the 2012 Sustainability
Report has been updated to reflect actuals.

Contents•

Introduction•

2020 Goals Progress

Stakeholder
Engagement
P&G works hard to be a good corporateneighbor and to improve lives in thecommunities where we live and work.

Communities
Each P&G production facility has site-specificactivities to build constructive relationships withlocal authorities, industry associations,residential and business neighbors, actiongroups, thought leaders, and news media.
Depending on the cultures and interests ofindividual communities, this can range from
regular official meetings, during which new
information is shared or questions are answered,
to more informal meetings. These could include,for example, a reception for immediateneighbors, where information about the past
year and plans for the new year are discussed.
P&G ensures continuity in community interaction
by meeting regularly with local authorities to
update them on plant news. In theneighborhoods of many P&G operations, theCompany cooperates with and sponsors local
events, so the whole area benefits from thepresence of a P&G site.
P&G recognizes the importance of improving thequality of life in our local communities, and we
support local initiatives and encourage employee
involvement. The most valuable community
support we provide usually involves not only
writing a check but also taking advantage of theintellectual capabilities and energy of P&G
people. We look for areas where we can make asignificant, long-term, systemic difference. This
leads us to focus on disaster response andhealth and hygiene. It also allows us to buildwww.pg.com/sustainability•

P&G Profile•

Environmental Sustainability

alliances with strategic partners to achieve a
better result than we could alone. We look to
our people in the area to work with their local
communities and government officials to learn
where we can make the biggest difference.

Authorities:
Local — Regional — Global
P&G communicates with local, regional, andglobal authorities directly, both as an individualcompany and through industry associations.
P&G scientists and legal experts review existingand proposed regulations that are relevant to
the Company and work with authorities toensure that policies take the needs andexperience of business into account. This is done
via meetings with the authorities and commentson their position papers and industry position
papers. Activities like these can be very
important to ensure that the Company’s needs
are understood and considered when decisions
are being made that can influence P&G’s
business.

NGOs: Local — Regional — Global
P&G frequently enters into dialogue withnongovernmental organizations (NGOs) tounderstand their concerns and cares. In order towork constructively with stakeholders, it isessential to have their confidence and be seen
as a reliable and open discussion partner. Bybuilding an open relationship, we can approach
our NGO partners when issues arise. There is awide range of NGOs that vary by area of interest(environmental, consumer, animal welfare, etc.),
by attitude (from extreme to moderate), and by
their geographic links (from local to global).
Depending on their characteristics, a number ofNGOs can be seen as the vocal spokespeople forthe general public. Consumer organizations exist•

Social Responsibility•

in many countries. These organizations contact
companies to compare products and voicecomments they receive from their members.
P&G continuously provides consumer
organizations with information on new
initiatives and cooperates with them inanswering consumer questions.

Consumers
At P&G, we are committed to providing
products and services that can help improve thelives of our consumers, all over the world. In
developing and marketing our products weadopt a “Consumer is Boss” approach, to ensurethat we delight consumers by launching only
new products and product improvements thatgenuinely meet their needs. Before establishinga project for a new product or productimprovement, P&G researchers strive
to understand consumer needs, in detail, inorder to identify those needs that are not fully
met today.
Once a product is launched, our commitment toour consumers does not stop there. For P&G,
every individual consumer’s experience inchoosing, buying or using one of our products
can provide vital insights to help us further
improve our products and services. So we
actively encourage consumers to contact our
Global Consumer Relations team. We want tohear about our consumers’ experiences with our
products — both good and bad.
Last year we heard from over eight million
consumers who wanted to ask us something
about our products or our Company. We
proactively offer “traditional” contact
channels — phone, letter, e-mail — to consumers,
but we are also very aware that consumers’ lives
are changing (we are consumers too!). Over the

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51 of 63

last two years we have invested extensively toenable our consumers to engage with us
through social media, in addition to ourestablished Carelines. Many of the people in our
Global Consumer Relations team are now
responsible for establishing online communities
in which consumers can ask questions about our
Company and our products. This has been ahuge success, and has actually enabled us tointeract with even more of P&G’s consumers in
the last fiscal year — which ultimately provided
more insights for our Product Development andMarketing teams to help further improve our
products and services.
We are also innovating in how we ensure thatthese important insights from our consumers
get to our business teams. Consumers who takethe time to contact a company for advice or ask
for help to resolve a problem provide valuable
insights into our products, which can really help
us to improve our brands. So we need to makesure that our consumer’s voice is heard in P&G.
We do this by using a range of different tools
and technologies that provide our businessteams with key learnings from consumer
comments. In Global Consumer Relations, werecognize that the world is changing and we areinvesting in innovative technology to better
serve our consumers. We feel very privilegedthat consumers care enough about our products
to contact us.

Contents•

Introduction•

2020 Goals Progress

Advertising andPromoting toConsumers
Appropriately
The Company does not permit its advertising or
promotions for its products to be false or
misleading. P&G’s Worldwide Business Conduct
Standards for Responsible Sales and Marketing
Practice states:
We are expected to compete vigorously
and effectively, but never unlawfully.
For this reason, we are truthful in all of oursales and marketing. We must make only
truthful statements about our Company
and its products and services. All marketingclaims must be substantiated and live up
to their promises.
F or additional information, please see
P&G’s Worldwide Business Conduct
Manual available via: www.pg.com/
en_US/downloads/company/governance/
Policy_Worldwide_Business_Conduct_
Manual.pdf.

•

P&G Profile•

Environmental Sustainability

Eliminating Research
Involving Animals
P&G strongly believes that ending animal testingis a benefit for all — consumers, animal welfare
advocates, and industry. Our goal is to stop
animal testing completely. We are fullycommitted and passionate about our goal andbelieve the only way to stop animal testing is
to develop alternatives. Alternatives help us toinnovate more ethically and tend to be cheaperand more effective means to assess ingredientsafety. We are proud of the work that we have
led in finding alternatives. We have developed
more than 50 non-animal testing methods andinvested more than $330 million in researchand development in finding these alternatives.
We’ve also published our results so that others
can benefit from our research. This practicehas helped eliminate the need for testing andhas reduced significantly the need for othersin the industry to use animals in research.
Today, we complete more than 99% of all safety
evaluations without testing on animals. The
remaining tiny percentage comes from studies
required by law or because of legally obligatedsafety requirements where no alternatives areavailable yet.

•Social Responsibility•

We are passionate about continuing ourprogress in alternatives to research involving
animals, so that animal testing can beeliminated. Highlights of our progress include:• We are a widely respected leader indeveloping alternatives to animal testing.
• We actively share our discoveries so that
others can benefit from our progress; ourwork has appeared in more than 1,000
scientific publications.
• Our focus on developing non-animal test
methods has led to even more predictive
approaches using human cell lines, genomics,
and the latest in computer modeling andinformatics.
• We collaborate with universities, scientists
from other companies, governments, andscientifically engaged animal welfare
groups to develop and promote acceptanceof alternative test methods and to change
regulations that still require testingwith animals.
F or details of our policy and practices,
please go to: www.pg.com/en_US/
sustainability/policies_practices/animal_welfare.shtml.
Or visit: www.pgbeautygroomingscience.
com/animal-testing-alternatives.php.

www.pg.com/sustainability

GRI Index

52 of 63

Contents•

Introduction•

2020 Goals Progress

Sustainability Guidelines
for ExternalBusiness Partners
The foundation of our Sustainability
Guidelines for External Business Partners
is our Statement of Purpose, Values andPrinciples. We operate within the spirit
and letter of the law and maintain highethical standards wherever we conductbusiness. We will actively seek business
relationships with external partners whoshare our values and promote theapplication of these high standards among
those with whom they do business.
T he Sustainability Guidelines forExternal Business Partners (EBP) can be
downloaded at: www.pgsupplier.com/en/
pg-values/sustainability.shtml.

•

P&G Profile•

Environmental Sustainability

Summary of Our
Guidelines
1. We expect our external partners to comply
with all applicable laws of their country,
including laws relating to employment,
discrimination, environment, and health andsafety. Partners who knowingly violate laws
or have repeated problems conforming tothem will not receive our business.
2. Commercial bribery is illegal and subject tocriminal penalties in many countries,
including the United States. Any personal
payment or bribe to individuals employed by
P&G’s customers or suppliers/agencies — orreceipt of a bribe or personal payment by
P&G employees — is strictly prohibited. Evenin locations where such activity may not,technically speaking, be illegal, it isabsolutely prohibited by Company policy.
3. P&G supports universal human rights,
particularly those of our employees, thecommunities within which we operate, andthe parties with whom we do business. In
our business award decisions, we willcontinue to place substantial value upon
incumbent and potential partners who
consistently respect basic human rights.

•

Social Responsibility

4. P&G utilizes fair employment practices,striving to provide a safe, healthy, andproductive work environment for its
employees. The Company respects
employees’ right to freedom of association,
third-party consultation, and collective
bargaining where allowed by law. The
Company expects our external business
partners to uphold the same standards.
Specifically:• We will not conduct business withcompanies employing child, prison,indentured, or bonded labor, or using
corporal punishment or other forms ofmental and physical coercion as a formof discipline.
• We expect business partners to conduct
their business without unacceptableworker treatment such as harassment,
discrimination, physical or mental
punishment, or other forms of abuse.
• At a minimum, we expect our externalbusiness partners to comply with allapplicable wage and hour laws, andrules and regulations, including minimum
wage, overtime, and maximum hours.
• We expect business partners to provide
a safe work environment, to prevent
accidents and injury, and to minimize
exposure to health risks.
• We seek to do business with partners
who share our concerns for andcommitment to preserving theenvironment. At a minimum, suppliers,
agencies and distributors must meet all
current applicable environmental rules,
regulations, and laws in their countries.

www.pg.com/sustainability•

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53 of 63

We communicate these guidelines to ourexternal business partners via our website andreinforce our expectations in our contracts.
This makes compliance with the guidelines
a condition of business and therefore makes
noncompliance grounds for disqualification
for all new and ongoing supply agreements.
During the last year, we began a review ofthe external business partner auditing systemand determined there were several areas for
improvement. Our EBP Guidelines weredeveloped during the early 2000s and have had
only minor modifications since then. However,there is an increased emphasis on human rights
due diligence and growing concerns regarding
issues of employment eligibility, contract/
temporary labor, etc. Thus we establisheda team to conduct a total renewal of ourguidelines and the end-to-end auditing process.
For example, we recognized there are risk
management tools (e.g., Maplecroft humanrights maps) that will enable us to refine theprocess in selecting partners for third-party
auditing. Finally, we identified that we need to
improve our process to ensure that external
partners were correcting noncompliance in atimely basis. As a result of the renewal process,we reduced the number of partners that wereaudited to those that were part of a third-party
business agreement. We expect the new
guidelines and auditing process to be
re-launched during the next fiscal year.

Contents•

Introduction•

2020 Goals Progress

Supplier Diversity
Supplier Diversity is a business strategy for P&G
that we have focused on since the mid-1970s.
When we invest with diverse suppliers, we not
only strengthen our innovation and go-tomarket capabilities, but we also touch andimprove the lives of the women and men who
work in these companies — and through them,
their families and the communities in which
they live and work. This is an important way
we fulfill P&G’s Purpose.
P&G makes a significant and ongoinginvestment in supplier diversity, spending morethan $2 billion with minority- and womenowned suppliers in 2012–2013. This is the sixth
consecutive year we have exceeded $2 billion
in supplier diversity spending. P&G is oneof just 18 corporations on the Billion Dollar
Roundtable, an exclusive group of companies
that invest a billion dollars a year or morewith minority- and women-owned agencies,
suppliers or external businesses.

www.pg.com/sustainability•

P&G Profile•

Environmental Sustainability

Personal Information
Privacy
Advances in computer technology have made it
possible for detailed information to be compiled
and shared more easily and cheaply than everaround the globe. That can be good news forsociety as a whole and for individual consumers.
At the same time, as personal information
becomes more accessible, each of
us — companies, associations, government
agencies, consumers — must take precautions
against misuse of that information. Several
countries already have laws protecting
consumers from misuse of their personal
information, and many others are following suit.

This is the sixth
consecutive year
we have exceeded$2 billion in supplier
diversity spending.

•Social Responsibility•

P&G places high priority on safeguarding
people’s personal information. Even in countries
without privacy legislation, we still adhere to our
privacy policy. We want to have the trust of
consumers and all others who do business withus, including employees, shareholders, retailcustomers, and recruitment candidates.
P&G’s robust privacy program is managed bya Global Privacy Council. Our first objective isto protect an individual’s personally identifiable
information as if it were our own. All outsidecompanies handling data on our behalf
are required to abide by our privacy principles.
Externally, P&G has been a strong advocate ofwork within the industry to protect the privacyof consumers. For example, P&G has been aleader in the effort to make privacy notices moreconsumer-friendly and has made our online
marketing statement available in 42 languages.

GRI Index

54 of 63F or more information on P&G’s global
privacy principles, please visit thefollowing: www.pg.com/en_US/
company/privacy/.
P &G adheres to U.S./European Union
Safe Harbor principles and participatesin the Better Business Bureau’s EU Safe
Harbor Program. For more information,
visit: www.bbb.org/us/european-uniondispute-resolution/.
In the United States, P&G is an active
participant in the Better Business Bureau’s
Accredited Business Program. For more
information, visit: www.bbb.org/online/
consumer/cks.aspx?ID=292000103.
T hird-party companies can accessour privacy and security guidelines
on: www.pgsupplier.com.

Contents•

Introduction•

2020 Goals Progress

Policies &Management Systems
Reporting Boundaries
Our sustainability report provides HS&E data for
136 manufacturing sites and 26 distribution
centers, 20 R&D facilities, and 8 of our largest
offices, over which we have operational control.
(One newly acquired manufacturing site was notincluded this year.) Human Resources data
covers all P&G facilities, unless otherwise stated.
Financial data covers The Procter & Gamble
Company and its controlled subsidiaries.

Policies
While P&G competes hard to achieve leadershipand business success, the Company is concerned
not only with results but also with how thoseresults are achieved. We will never condone or
tolerate efforts or activities to achieve results
through illegal or unethical dealings, anywherein the world.

•

P&G Profile•

Environmental Sustainability

Social Responsibility•

55 of 63

GRI Index

Management Systems

Process for Data Collection

Updated Historical Data

P&G’s Management Systems ensure that theCompany’s policies are implemented in aconsistent manner throughout the world. These
Management Systems align with the Company’s
policies and promote a regular flow of informationthat helps the Company better manage its
progress on elements of sustainable development.

P&G’s data collection systems have been inplace for many years. They are designed to be
simple enough so that the people closest to thework can use the tools, regardless of theirlocation. This simplicity enables the Company
to collect data and update systems annually ata relatively low cost. Each business unit is
responsible for the accuracy and consistencyof its data.

Over the course of the last year, we havecontinued to put additional focus on ensuring
we have a robust data process in place. As aresult of our efforts to ensure data quality, we
have updated some of the historical data in
our Resource and Waste Summary Table on
page 35. The updates were generally minor
corrections and updated data was indicated via
italicized text. For reference, the data that was
originally reported in 2012 is available via our2012 Sustainability Report which is available
for download.

Performance
P&G measures operational performance in orderto drive continuous improvement. A companywide system of measuring performance has
been developed. This approach enables theCompany to report data on a wide range of
operational categories. Our actions are not justprofit-driven but also progress-driven, to ensure
a better quality of life for everybody, now andfor generations to come. Our extensive consumer
research related to our brands also helps us
identify ways we can best address sustainability.

Acquisitions
Acquisitions have been included in the metrics
presented herein. Acquisitions differ inperformance expectations in that we allow a
six-year glide path to meet the HS&E audit
performance score of 8.0 out of a ten-point
scale. A midpoint expectation of 6.5 is expected
to be achieved within three years. Typically,acquisitions exceed those expectations.

www.pg.com/sustainability•

All data is reported on a global basis. In order toachieve consistency and to ensure a common
understanding throughout the organization,
employees are trained in how to report anddocument data. Data is presented in metric units
and published in English, with local translation
performed where necessary. To ensure thestandard collection of data, the Company
established the following processes:
Key terms are defined.
• The data to be collected are identified.
• Flow sheets are agreed upon regarding whocollects data and on what systems.
• Technically sound methods are used byfacilities to estimate data and validate
year-to-year results.
• Personnel are trained on the work process,as appropriate.

In addition to updating data historical data in
our resource and waste summary table, wehave also updated the FY09/10 baseline datathat we use to calculate the operational
footprint reductions since FY09/10. The revised
baseline data and the data that was originallyreported are summarized in the table below.
The graphs and data in this year’s report thatreference percent reduction since 2010 were
calculated using the updated baseline numbers.
Updated FY09/10 Baseline Data(absolute units * 1000)

UpdatedFY09/10Baseline

Previously
Reported
FY09/10Baseline

382

363

Energy Consumption(gigajoules)

72,396

71,842

Direct Greenhouse
Gas Emissions(metric tons)

2,911

2,795

Total Greenhouse
Gas Emissions(metric tons)

5,970

6,200

Water Consumption(cubic meters)

79,53089,914

Waste Disposed(metric tons)

Contents•

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability

GRI Index
GRI
Indicator

Description

Page(s)

1. STRATEGY AND ANALYSIS
1.1

Statement from the most senior decisionmaker of the organization.

1.2

Description of key impacts, risks, and opportunities.

5
6 – 54

2. ORGANIZATIONAL PROFILE
2.1

Name of the organization.

2.2

Primary brands, products, and/or services.

12 – 13

2.3

Operational structure of the organization.

15 – 19

2.4

Location of organization’s headquarters.
The Procter & Gamble Company
Shareholder Services Department
P.O. Box 5572
Cincinnati, OH 45201-5572

14

2.5

Number of countries where the organization operates, and namesof countries with either major operations or that are specifically
relevant to the sustainability issues covered in the report. Also see
Global Locations www.pg.com/en_US/contact_us/index.shtml

2.6

Nature of ownership and legal form.

9

2.7

Markets served.

9

2.8

Scale of the reporting organization.

2.9

Significant changes during the reporting period regarding size,
structure, or ownership.

2.10

Awards received in the reporting period.
Also see www.pg.com/en_US/company/external_recognition.shtml

www.pg.com/sustainability

99, 17 – 19

9, 12 – 14
14
27, 44•Social Responsibility•

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Contents•

GRI
Indicator

Description

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability

Page(s)GRI
Indicator•

Social Responsibility•

GRI Index

Description

3. REPORT PARAMETERS

4. GOVERNANCE, COMMITMENTS AND ENGAGEMENT

Report Profile

Governance

3.1

Reporting period.

3.2

57 of 63

Page(s)2

4.1

Governance structure of the organization.

20

Date of most recent previous report (if any).

FY11/12

4.2

5

3.3

Reporting cycle (annual, biennial, etc.).

AnnualIndicate whether the Chair of the highest governance body is also
an executive officer.

3.4

Contact point for questions regarding the reportor its contents.

4.3

For organizations that have a unitary board structure, state thenumber of members of the highest governance body thatare independent and/or non-executive members. State how theorganization defines ‘independent’ and ‘non-executive.’
Also see Proxy Statement www.pg.com/en_US/downloads/investors/
annual_reports/2013/2013_AnnualReport_proxy.pdf

20

4.4

Mechanisms for shareholders and employees to provide
recommendations or direction to the highest governance body.
Also see www.pg.com/en_US/investors/investor_contacts.shtml

14

4.5

Linkage between compensation for members of the highest
governance body, senior managers, and executives (including
departure arrangements), and the organization’s performance.
www.pg.com/en_US/downloads/company/governance/
Corporate_Governance_Guidelines.pdf
Proxy Statement www.pg.com/en_US/downloads/investors/annual_
reports/2013/2013_AnnualReport_proxy.pdf

20

4.6

Processes in place for the highest governance body to ensure conflictsof interest are avoided.
Also see www.pg.com/en_US/downloads/company/governance/
Corporate_Governance_Guidelines.pdf

20

4.7

Process for determining the qualifications and expertise of the membersof the highest governance body for guiding the organization’s strategy
on economic, environmental, and social topics.
Also see www.pg.com/en_US/downloads/company/governance/
Corporate_Governance_Guidelines.pdf

20

4.8

Internally developed statements of mission or values, codes ofconduct, and principles relevant to economic, environmental,
and social performance and the status of their implementation.

sustainrep.im@pg.com

Report Scope and Boundary
3.5

Process for defining report content.

2, 6 – 8

3.6

Boundary of the report.

3.7

State any specific limitations on the scope or boundary of the report.

55

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities that can significantly affectcomparability from period to period and/or between organizations.

35, 552, 55

3.9

Data measurement techniques and the bases of calculations.

55

3.10

Explanation of the effect of any re-statements of information
provided in earlier reports.

55

3.11

Significant changes from previous reporting periods in the scope,boundary, or measurement methods applied in the report.

14, 55GRI Content Index
3.12

Table identifying the location of the Standard Disclosuresin the report.

56 – 61

Assurance
3.13

Policy and current practice with regard to seeking external assurance forthe report.

www.pg.com/sustainability2

5 – 8, 10 – 11,
23 – 54

Contents•

GRI
Indicator

Description

4.9

4.10

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability

Page(s)Procedures of the highest governance body for overseeing theorganization’s identification and management of economic,
environmental, and social performance.
Also see www.pg.com/en_US/downloads/company/governance/
Governance_and_Public_Responsibility_Committee_Charter.pdf

20

Processes for evaluating the highest governance body’s
own performance.
Also see www.pg.com/en_US/downloads/company/governance/
Corporate_Governance_Guidelines.pdf

20

Explanation of whether and how the precautionary approachor principle is addressed by the organization.

4.12

Externally developed economic, environmental, and social charters,
principles, or other initiatives to which the organization subscribes
or endorses.

4.13

Memberships in associations.

•

GRI Index

Description

58 of 63

Page(s)5. ECONOMIC PERFORMANCE INDICATORS

EC1

Direct economic value generated and distributed, including revenues,
operating costs, employee compensation, donations and othercommunity investments, retained earnings, and payments to capitalproviders and governments. (Core)EC2

Financial implications and other risks and opportunities for theorganization’s activities due to climate change. (Core)

EC3

Coverage of the organization’s defined benefit plan obligations. (Core)
Also see financial report www.pg.com/investors/annualreports.jhtml

42

EC4

Significant financial assistance received from government. (Core)See financial report www.pg.com/investors/annualreports.jhtml

N/A

22
31, 47, 54

13

25, 27 – 30,
37 – 40

Market Presence21

Stakeholder Engagement
4.14

List of stakeholder groups engaged by the organization.

21, 51

4.15

Basis for identification and selection of stakeholders withwhom to engage.

51

4.16

Approaches to stakeholder engagement.

4.17

Key topics and concerns that have been raised throughstakeholder engagement.

www.pg.com/sustainability

Social Responsibility

Economic Performance

Commitments to External Initiatives
4.11

GRI
Indicator•

29, 32, 51
6 – 7, 22, 25,
27, 28, 29,
31, 32, 34,
39, 40, 42,
51 – 54

EC5

Range of ratios of standard entry-level wage compared to local
minimum wage at significant locations of operation. (Additional)

42

EC6

Policy, practices, and proportion of spending on locally-based suppliers
at significant locations of operation. (Core)16, 54EC7Procedures for local hiring and proportion of senior management hiredfrom the local community at significant locations of operation. (Core)

43 – 44

Indirect Economic Impacts
EC8Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, in-kind,or pro bono engagement. (Core)

36 – 40EC9Understanding and describing significant indirect economic impacts,
including the extent of impacts. (Additional)
See financial report www.pg.com/investors/annualreports.jhtml

36 – 40

Contents•

GRI
Indicator

Description

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability

Page(s)GRI
Indicator

EN15

6. ENVIRONMENTAL
Materials
EN1

Materials used by weight or volume. (Core)

EN2

Percentage of materials used that are recycled input materials. (Core)35
8, 33, 34

EnergyEN3

Direct energy consumption by primary energy source. (Core)8, 27, 35

EN4

Indirect energy consumption by primary source. (Core)8, 27, 35

EN5Energy saved due to conservation and efficiency improvements.
(Additional)

8, 27

EN6

Initiatives to provide energy-efficient or renewable energy based
products and services, and reductions in energy requirements asa result of these initiatives. (Additional)

8, 25

EN7

Initiatives to reduce indirect energy consumption and reductions
achieved. (Additional)

8, 25, 27, 28,
30, 35

Total water withdrawal by source. (Core)

EN9

Water sources significantly affected by withdrawal of water. (Additional)

N/A

EN10

Percentage and total volume of water recycled and reused. (Additional)

N/A

Location and size of land owned, leased, managed in, or adjacentto, protected areas and areas of high biodiversity value outside
protected areas. (Core)

N/A

EN12

Description of significant impacts of activities, products, and services
on biodiversity in protected areas and areas of high biodiversity value
outside protected areas. (Core)

31 – 32

EN13

Habitats protected or restored. (Additional)

EN14

Strategies, current actions, and future plans for managing
impacts on biodiversity. (Additional)
Also see www.pg.com/productsafety/downloads/Environmental_
Quality_Policy.pdf

EN11

www.pg.com/sustainability

29
24, 31 – 32•

GRI Index

Description

Number of IUCN Red List species and national conservation list
species with habitats in areas affected by operations by level ofextinction risk. (Additional)

59 of 63

Page(s)N/A

EN16

Total direct and indirect greenhouse gas emissions by weight. (Core)8, 27, 35

EN17

Other relevant indirect greenhouse gas emissions by weight. (Core)8, 27, 35

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved.
(Additional)

8, 25,
27 – 28,
30 – 35

EN19

Emissions of ozone-depleting substances by weight. (Core)35, 50EN20

NOx, SOx, and other significant air emissions by type and weight. (Core)35, 50

EN21

Total water discharge by quality and destination. (Core)29, 35

EN22

Total weight of waste by type and disposal method. (Core)8, 34 – 35

EN23

Total number and volume of significant spills. (Core)

EN24

Weight of transported, imported, exported, or treated waste
deemed hazardous under the terms of the Basel Convention
Annex I, II, III, and VIII, and percentage of transported waste
shipped internationally. (Additional)

EN25

Identity, size, protected status, and biodiversity value of water
bodies and related habitats significantly affected by the reportingorganization’s discharges of water and runoff. (Additional)

EN26

Initiatives to mitigate environmental impacts of products and services,and extent of impact mitigation. (Core)

EN27

Percentage of products sold and their packaging materials
that are reclaimed by category. (Core)

EN28

Monetary value of significant fines and total number of nonmonetary sanctions for noncompliance with environmental
laws and regulations. (Core)

EN29

Significant environmental impacts of transporting products and othergoods and materials used for the organization’s operations, andtransporting members of the workforce. (Additional)

EN30

Total environmental protection expenditures and investments
by type. (Additional)

29, 35

Biodiversity

Social Responsibility

Emissions, Effluents and Waste

Water
EN8

•

50
34 – 35

N/A

5 – 8, 23 – 35
8, 34 – 35
50

8, 28

47

Contents•

GRI
Indicator

Description

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability

Page(s)Employment
LA1

Total workforce by employment type, employment contract,
and region. (Core)

9, 44

LA2

Total number and rate of employee turnover by age group,
gender, and region. (Core)
Note: We do not track this information globally

N/A

Benefits provided to full-time employees that are not provided totemporary or part-time employees, by major operations. (Additional)

N/A

Labor / Management Relations
LA4

Percentage of employees covered by collective bargaining
agreements. (Core)
Also see www.pg.com/en_US/downloads/company/governance/
PG_Values_Policies.pdf

N/A

LA5

Minimum notice period(s) regarding significant operational changes,
including whether it is specified in collective agreements. (Core)
Note: We abide by local legislation and our PVPs.

N/A•GRI Index

Description

60 of 63

Page(s)

LA10

Average hours of training per year per employee-by-employee
category. (Core)46, 49LA11Programs for skills management and lifelong learning that support thecontinued employability of employees and assist them in managing
career endings. (Additional)

42, 46LA12Percentage of employees receiving regular performance and careerdevelopment reviews. (Additional)

42

Diversity and Equal Opportunity
LA13

Composition of governance bodies and breakdown of employees per
category according to gender, age group, minority group membership,
and other indicators of diversity. (Core)
Also see Proxy Statement www.pg.com/en_US/downloads/investors/
annual_reports/2013/2013_AnnualReport_proxy.pdf

44

LA14

Ratio of basic salary of men to women by employee category. (Core)

42

8. HUMAN RIGHTS
Investment and Procurement Practices

Occupational Health and Safety
LA6

Percentage of total workforce represented in formal joint managementworker health and safety committees that help monitor and advise on
occupational health and safety programs. (Additional)

47 – 49

LA7

Rates of injury, occupational diseases, lost day’s, absenteeism and total
number of work-related fatalities, by region. (Core)

48

LA8

Education, training, counseling, prevention and risk-control programs inplace to assist workforce members, their families, or community
members regarding serious diseases. (Core)

45 – 46

LA9

Health and safety topics covered in formal agreements withtrade unions. (Additional)
Also see www.pg.com/en_US/downloads/company/governance/
PG_Values_Policies.pdf

47 – 49

www.pg.com/sustainability

Social Responsibility

Training and Education

7. LABOR PRACTICES AND DECENT WORK

LA3

GRI
Indicator•

HR1

Percentage and total number of significant investment agreements that
include human rights clauses or that underwent human rights
screening. (Core)42, 53HR2

Percentage of significant suppliers and contractors that have undergone
screening on human rights and actions taken. (Core)42, 53HR3

Total hours of employee training on policies and procedures concerning
aspects of human rights that are relevant to operations, including thepercentage of employees trained. (Additional)
Also see Proxy Statement www.pg.com/en_US/downloads/company/
governance/Policy_Worldwide_Business_Conduct_Manual.pdf

N/A

Non-discrimination
HR4

Total number of incidents of discrimination and actions taken. (Core)
Also see www.pg.com/en_US/company/purpose_people/diversity_
inclusion.shtml

42 – 43

Contents•

GRI
Indicator

Description

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability

Page(s)Freedom of Association and Collective Bargaining
HR5

Operations identified in which the right to exercise freedom of
association or collective bargaining may be at significant risk,
and actions taken to support these rights. (Core)
Also see www.pg.com/en_US/downloads/company/governance/
PG_Values_Policies.pdf

SO1

Operations identified as having significant risk for incidents ofchild labor, and measures taken to contribute to the eliminationof child labor. (Core)
Also see www.pg.com/en_US/downloads/company/governance/
PG_Values_Policies.pdf

53

Operations identified as having significant risk for incidents offorced or compulsory labor, and measures taken to contributeto the elimination of forced or compulsory labor. (Core)
Also see www.pg.com/en_US/downloads/company/governance/
PG_Values_Policies.pdf

61 of 63

Description

Page(s)Nature, scope, and effectiveness of any programs and practices
that assess and manage the impacts of operations on communities,
including entering, operating, and exiting. (Core)

50 – 51

SO2

Percentage and total number of business units analyzed for risks related
to corruption. (Core)
Also see Worldwide Business Conduct Manual
www.pg.com/en_US/downloads/company/governance/Policy_
Worldwide_Business_Conduct_Manual.pdf
Governance structure, policies, and procedureswww.pg.com/en_US/company/global_structure_operations/
governance/index.shtml

20

SO3

Percentage of employees trained in organization’s anti-corruption
policies and procedures. (Core)
Also see Worldwide Business Conduct Manual
www.pg.com/en_US/downloads/company/governance/Policy_
Worldwide_Business_Conduct_Manual.pdf
Governance structure, policies, and procedureswww.pg.com/en_US/company/global_structure_operations/
governance/index.shtml

20

SO4

Actions taken in response to incidents of corruption. (Core)
Also see Worldwide Business Conduct Manual
www.pg.com/en_US/downloads/company/governance/Policy_
Worldwide_Business_Conduct_Manual.pdf
Governance structure, policies, and procedureswww.pg.com/en_US/company/global_structure_operations/
governance/index.shtml

20

53

Percentage of security personnel trained in the organization’s polices
or procedures concerning aspects of human rights that are relevant tooperations. (Additional)

N/A

Indigenous Rights
HR9

GRI Index

Corruption

Security Practices
HR8•

Community

Forced and Compulsory Labor
HR7

Social Responsibility

9. SOCIETY
53

Child Labor
HR6

GRI
Indicator•

Total number of incidents of violations involving rights of indigenous
people and actions taken. (Additional)

www.pg.com/sustainability

N/AContents•

GRI
Indicator

Description

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability

Page(s)Public Policy
SO5

SO6

Public policy positions and participation in public policy development
and lobbying. (Core)
Also see Worldwide Business Conduct Manual
www.pg.com/en_US/downloads/company/governance/Policy_
Worldwide_Business_Conduct_Manual.pdf
Governance structure, policies, and procedureswww.pg.com/en_US/company/global_structure_operations/
governance/index.shtml

20 – 21

Total value of financial and in-kind contributions to political parties,
politicians, and related institutions by country. (Additional)
Governance structure, policies, and procedureswww.pg.com/en_US/company/global_structure_operations/
governance/index.shtml

20 – 21•

GRI Index

Description

62 of 63

Page(s)Total number of legal actions for anti-competitive behavior, anti-trust,and monopoly practices and their outcomes. (Additional)

N/A

Monetary value of significant fines and total number of non-monetary
sanctions for noncompliance with laws and regulations. (Core)50

10. PRODUCT RESPONSIBILITY

Type of product and service information required by procedures, andpercentage of significant products and services subject to suchinformation requirements. (Core)

22

PR4

Total number of incidents of noncompliance with regulations andvoluntary codes concerning product and service information andlabeling, by type of outcomes. (Additional)

N/A

PR5

Practices related to customer satisfaction, including results of surveys
measuring customer satisfaction. (Additional)

51

PR6

Programs for adherence to laws, standards, and voluntary codes related
to marketing communications, including advertising, promotion, andsponsorship. (Core)

52

PR7

Total number of incidents of noncompliance with regulations andvoluntary codes concerning marketing communications, including
advertising, promotion, and sponsorship, by type of outcomes.
(Additional)

N/A

Customer Privacy
PR8

Total number of substantiated complaints regarding breaches ofcustomer privacy and losses of customer data. (Additional)

N/A

Monetary value of significant fines for noncompliance with laws
and regulations concerning the provision and use of products
and services. (Core)
Note: We do not track this information Globally

N/A

Compliance

Consumer Health and Safety

PR9

PR1

Life cycle stages in which health and safety impacts of products andservices are assessed for improvement, and percentage of significant
products and services categories subject to such procedures. (Core)

22

PR2

Total number of incidents of noncompliance with regulations andvoluntary codes concerning health and safety impacts of products andservices, by type of outcomes. (Additional)

N/A

www.pg.com/sustainability

PR3Marketing Communications

Compliance
SO8Social Responsibility

Product and Service Labeling

Anti-Competitive Behavior
SO7

GRI
Indicator•

Contents•

Introduction•

2020 Goals Progress•

P&G Profile•

Environmental Sustainability•

Social Responsibility•

63 of 63

GRI Index

Contact:
E-mail us at sustainrep.im@pg.com
Visit www.pg.com/sr