Designed to Grow... Sustainably
2007 Global Sustainability Report
EXECUTIVE SUMMARYCEO Statement

P&G’s Purpose

October 2007 marks the 170th year P&G has been in business.
We’ve sustained our Company’s growth over such a long
period of time by staying focused on P&G’s Purpose: improving
consumers’ lives in small but meaningful ways every day.

Sustainable development is
a very simple idea. It is about
ensuring a better quality oflife for everyone, now and forgenerations to come.1 Sustainability

Our commitment to Sustainable Development, which wedeﬁne as “ensuring a better quality of life for everyone,
now and for generations to come,” is an important part of
how we fulﬁll P&G’s Purpose. We have a long heritage as a
Sustainability leader, and we remain committed to improving
consumers’ lives through P&G brands and by contributing to
the sustainability of our planet and the communities in which
we live and work.

and Philanthropy are fundamental to living
the P&G Purpose of improving lives, day inand day out.

Over the past decade, we’ve made signiﬁcant progress. We’rehelping to save energy and reduce greenhouse emissions
through products such as Tide Cold Water and Ariel CoolClean
that reduce energy use through cold-water washing. We’rehelping children in need through our Live, Learn and Thrive
corporate cause. And we’re providing clean, safe drinking
water in developing countries and in times of natural disaster.

We have made two additions to P&G’s Purpose, Values
and Principles to ensure we are designed to be sustainable.
We have embedded sustainability into our Purpose (“nowand for generations to come”) and added a new operating
principle to incorporate sustainability into every aspect of
our work.

Now, as we look toward the next 170 years and more, we aredesigning Sustainability even more deeply into the way P&G
does business: through our Purpose, products, operations
and relationships.

Our Purpose
We will provide branded products and services ofsuperior quality and value that improve the lives of theworld’s consumers, now and for generations to come.

• We are embedding Sustainability in our Company Purpose,
which makes it explicit that we are focused on improving
consumers’ lives “now and for generations to come.”
In a Purpose-driven company like P&G, this addition isenormously important. It will provide inspiration and guidechoices and actions throughout our Company.
• We are designing Sustainability even more deeply into
our products, packaging and operations. Our focus is on
providing products and services that don’t require consumers
to make choices between Sustainability and their needs for
performance and value.
• We are leveraging our expertise and relationships to create
new opportunities and new approaches. As a member of the
Dow Jones Sustainability Index since its inception and as apartner with the world’s leading retailers, NGOs and others,
P&G can help bring tremendous resources to some of thetoughest Sustainability challenges.

As a result, consumers will reward us with leadershipsales, proﬁts and value creation, allowing our people, ourshareholders and the communities in which we live andwork to prosper.

Our Values

Sustainability is a business strategy at P&G. It is integrated into
day-to-day business decisions. It is an important part of how
P&G is designed to grow – now, and for generations to come.

A.G. Laﬂey
Chairman of the Board andChief Executive Ofﬁcer
1

Definition from UK government report from Department for the Environment,
Transport and the Regions, 1998.

P&G 2007 Global Sustainability Report
EXECUTIVE SUMMARY

Our Principles
We Show Respect for All Individuals• We believe that all individuals can and want to contributeto their fullest potential.
• We value differences.
• We inspire and enable people to achieve highexpectations, standards and challenging goals.
• We are honest with people about their performance.
The Interests of the Company and the Individual
are Inseparable• We believe that doing what is right for the businesswith integrity will lead to mutual success for both theCompany and the individual. Our quest for mutual successties us together.
• We encourage stock ownership and ownership behavior.
We are Strategically Focused in Our Work• We operate against clearly articulated and aligned
objectives and strategies.
• We only do work and only ask for work that adds value tothe business.
• We simplify, standardize and streamline our current work
whenever possible.
Innovation is the Cornerstone of Our Success• We place great value on big, new consumer innovations.
• We challenge convention and reinvent the way we dobusiness to better win in the marketplace.
We are Externally Focused• We develop superior understanding of consumers andtheir needs.
• We create and deliver products, packaging and concepts
that build winning brand equities.
• We develop close, mutually productive relationships withour customers and our suppliers.
• We are good corporate citizens.
• We incorporate sustainability into our products, packaging
and operations.
We Value Personal Mastery• We believe it is the responsibility of all individuals tocontinually develop themselves and others.
• We encourage and expect outstanding technical masteryand executional excellence.
We Seek to be the Best• We strive to be the best in all areas of strategic
importance to the Company.
• We benchmark our performance rigorously versus the very
best internally and externally.
• We learn from both our successes and our failures.
Mutual Interdependency is a Way of Life
• We work together with confidence and trust acrossbusiness units, functions, categories and geographies.
• We take pride in results from reapplying others’ ideas.
• We build superior relationships with all the parties who
contribute to fulfilling our Corporate Purpose, including
our customers, suppliers, universities and governments.

VisionIn addition to incorporating Sustainability into P&G’s Purpose,
Values and Principles, we are renewing the Company’s
Sustainability strategy and setting new ﬁve-year goals for our
products, operations and programs.
1. We will build P&G’s business through Sustainability
innovations that delight consumers while improving theenvironmental proﬁle of P&G products. By 2012, our goal isto generate at least $20 billion in cumulative sales of productswith reduced environmental impact. These will be big ideas,
like Tide Cold Water or compacted detergents, where theenvironmental beneﬁts are signiﬁcant and obvious.
2. We will continue to improve the environmental proﬁle ofP&G operations. Today, over 95% of materials that enter
P&G plants leave as ﬁnished product. More than half ofremaining materials are recycled. Over the next ﬁve years, wewill reduce CO2 emissions, energy and water consumption,and disposed waste per unit of production by an additional
10%, contributing to a 40% reduction for the decade.
3. We will continue to improve lives through P&G’s social
responsibility programs. Our corporate cause – Live, Learn
and Thrive – is helping children in need from birth toage 13. Our goal is to reach 250 million children throughthis program by 2012. Our Children’s Safe Drinking Water
program has already delivered more than 700 million litersof clean water, and we are committed to deliver anothertwo billion liters of clean water by 2012, preventing
80 million days of disease and saving 10,000 lives.
4. We will inspire and engage P&G employees to build
Sustainability thinking and practices into their daily work.
P&G’s organization is widely recognized as one of thestrongest organizations in business today. Encouraging
and enabling 138,000 P&Gers worldwide to innovate andto make Sustainability an even bigger part of how we dobusiness can have an enormous impact.
5. We will continue to work with external stakeholders
to identify new needs and to create new opportunities
and solutions for the world’s Sustainability challenges.
In particular, these stakeholders include thought-leading
retailers and partners such as the Centers for Disease
Control, UNICEF, the World Health Organization, Population
Services International and others.
These new strategies and goals are designed to ensure P&G
can continue to grow reliably and responsibly, just as we’ve
done for the past 170 years. We are committed to becoming
an even more sustainable company in a sustainable world.

Peter R. White
Director, Global Sustainability

P&G 2007 Global Sustainability Report
EXECUTIVE SUMMARYP&G ProﬁleThree billion times a day, P&G brands touch the lives of people aroundthe world. This happens because P&G provides branded products of superior quality
and value to improve the lives of the world’s consumers. This results in leadership sales,
proﬁts and value creation, allowing employees, shareholders and the communities inwhich we operate to prosper.
The Company markets more than 300 brands in nearly
130 countries. We have on-the-ground operations in morethan 80 countries and employ 138,000 people. P&G’s world
headquarters is located in Cincinnati, Ohio, U.S.A.
To optimize resources to ﬁt a growing global business andto accelerate innovation and growth, the Company operates
through Global Business Units (GBUs):• Beauty and Health• Household Care
• Gillette GBU

P&G is a publicly owned company. Its stock is listed andtraded on the New York and Paris exchanges.
As of June 30, 2007, there were approximately 2,220,000
common stock shareholders, including shareholders ofrecord, participants in the Shareholder Investment Program,participants in P&G stock ownership plans and beneﬁcial
owners with accounts at banks and brokerage ﬁrms.
This is the ninth Sustainability Report for P&G’s worldwide
operations. Data covers July 1, 2006, through June 30,
2007. Financial information is given in U.S. dollars.

Financial Highlights
Amounts in millions
except per-share amounts

23 Billion-Dollar Brands ...

Net Sales
Selling, General and
Administrative Expenses
Income Taxes
Net Earnings
Basic Net Earnings
Per Common Share
Diluted Net Earnings
Per Common ShareTotal Assets
Long-Term Debt
Shareholders’ Equity

2007

2006

2005

$76,476$68,222$56,741

24,3404,370
10,34021,8483,729
8,684

18,400
3,058
6,923

3.22

2.79

2.70

3.04
138,014
23,37566,7602.64
135,695
35,97662,9082.53
61,527
12,887
18,475For more financial details, please see P&G’s 2007 Annual Report:
www.pg.com/investors/annualreports.jhtml

Global Key Brands
Of more than 300 brands, these 23 are the ones we consider key and have sales of more than a billion dollars each.

For the next year, the GBUs will be structured as: Beauty, Health and Well-Being, Household Care.

Strategies and Goals for 2012
Strategy 1 Improve through Products
Delight the consumer with sustainable innovations that improvethe environmental proﬁle of our products.

Goal• Develop and market at least $20 billion in cumulative sales of“sustainable innovation products,” which are products with asigniﬁcantly reduced (>10%) environmental footprint versus
previous or alternative products.

Strategy 2 Improve through Production
Improve the environmental proﬁle of P&G’s own operations.

Goal• Deliver an additional 10% reduction (per unit production) in
CO2 emissions, energy consumption, water consumption anddisposed waste from P&G plants, leading to a total reduction
over the decade of at least 40%.
Resource & Waste Summary
For the first time, we are reporting environmental statistics for the Technical Centers. Technical Centers are primarily sites that havesmall-scale pilot operations as well as Research & Development laboratories. They have been added in for all three years. Data also
includes both Wella and Gillette sites.
Totals (indexed to production)2007 Global Business Unit Detail* (absolute units x 1000)

2007

2006

2005

BH

HC

G

TC

21,742
79

20,66065

18,80271

2,810
018,212
79

720
0

0
0

44.7
55%

43.2
59%

47.1
57%

234
54%

670
56%

50
60%

18
20%

16.1
2.2
1.0
0.77

14.8
1.0
1.3
0.77

16.2
1.4
1.8
0.91

97.6
4.5
5.5
0.8

226.4
39.9
11.5
15.5

14.0
1.6
4.1
0.4

12.2
2.0
0.4
0.1

3.64
0.14
4.2
0.00008

3.78
0.14
4.4
0.00010

4.13
0.17
5.0
0.00009

9,205
272
9,252
0.210

62,5892,491
71,028
1.061

4,908
135
1,687
0.396

2,489
72
9,263
0.058

PRODUCTION (thousand metric tonnes)

Product Shipped
Raw Materials from Recycled Sources
WASTE (tonnes/1,000 tonne of production)

Generated Waste
Percent Recycled / Reused Waste
DISPOSED WASTE (tonnes/1,000 tonnes of production)

Solid Waste
Non-Hazardous
Hazardous
Effluents (excluding water)
Air Emissions**
OTHER

Energy Consumption (gigajoules/tonne)
Greenhouse Gas Emissions**(tonne/tonne)
Water Consumption (cubic meters/tonne)
SARA Releases***(tonne/tonne)

Beauty and Health (BH) includes segments Beauty and Health Care.
Household Care (HC) includes segments Fabric Care and Home Care, Baby Care and Family Care, Pet Care, Snacks and Coffee.
Gillette GBU (G) includes segments Blades and Razors, Duracell and Braun.
Technical Centers (TC) includes each of the research centers that support the business units.
** Air emissions include particulates, SO2, NOx, CO and VOC, whereas greenhouse gas emissions include CO2 from fuel combustion sources.
*** Releases defined in the U.S. Superfund Amendments and Reauthorization Act (SARA) by the U.S. Environmental Protection Agency.
1 metric tonne = 1,000 kg = 2,205 lbs.
Product Shipped numbers come from P&G manufacturing sites only, does not include production from contract manufacturing.
*Strategy 3 Improve through Responsibility
Improve lives through P&G’s social responsibility programs.

Goal• Enable 250 million children to Live, Learn and Thrive.
• Prevent 80 million days of disease and save 10,000 lives by
delivering 2 billion liters of clean water in our Children’s Safe
Drinking Water program.

Strategy 4 Improve through Employees
Engage and equip all P&Gers to build sustainability thinking andpractices into their everyday work.

Occupational Health & Safety Data

Diversity Data

Past three years’ global data on two key metrics for worker
health and safety:

P&G continues to focus on diversity as a global strategy andexpects its work force to become increasingly diverse. Global
data on enrollment by gender is shown in the following table:

TOTAL INCIDENT RATE
Injury and illness per 100 employees

2007

2006

2005

Total

0.49

0.54

0.48

TOTAL LOST WORKDAY CASE RATE
Lost and restricted workday cases per 100 employees 2007

2006

2005

0.26

0.29

0.19

Total

This information now includes Technical Centers

GLOBAL ENROLLMENT % FEMALEManagement
All Other Employees1

The table lists global data on environmental, transportation, andworker health and safety violations over the past three years.
Number
Fines

2007

2006

2005

37
$106,257

48$127,50080$147,400

2006

2005

39.3
39.0

38.0
38.4

The percentages of minority and female employees in the
United States are shown in the following table:
U.S. ENROLLMENT

Summary of Fines and Violations

20072

38.9
39.1

% Minorities
Management
All Other Employees1% FemaleManagement
All Other Employees1
1
2

20072

2006

2005

21.1
21.8

21.0
18.6

19.6
18.7

37.9
38.1

37.3
39.5

36.3
39.6

Administrative, Technical and Plant Technicians
Includes first-time integration of all Gillette employees

Strategy 5 Improve through Stakeholders
Shape the future by working transparently with our stakeholders
to enable continued freedom to innovate in a responsible way.

P&G 2007 Global Sustainability Report
EXECUTIVE SUMMARY

Delivering on Strategy

Cool Clean Detergents Save Energy

Braun Supports ‘Green Grooming’
This year, Braun’s entire line of men’s electric shavers became
the world’s ﬁrst shaver brand to receive the Energy Star
qualiﬁcation for its battery chargers.

In 2007, P&G launched Dash Cool Clean in Italy and Ariel Cool
Clean in the UK, along with campaigns to help consumers
change their energy consumption habits. The Cool Clean
detergents encourage consumers to wash at lower temperaturesand save energy, which still gives them brilliantly clean clothes.

The U.S. Environmental Protection Agency (EPA) created
Energy Star labeling in 1992 as a way to clearly identify
energy-efﬁcient products. Energy Star-qualiﬁed products must
adhere to strict guidelines created by the EPA and the U.S.
Department of Energy.

In Italy, Dash launched under the name Impeccabile a
Freddo (Impeccable in Cold). Dash studied the impact of thiscampaign in almost 400 participating Italian households.
Using Dash Cool Clean did result in consumers’ changing
their habits. They reduced washing temperature, experiencing
a signiﬁcant energy saving – 10 percent on average, up toa maximum of 55 percent. But there is still reluctance toreduce washing temperature. This conﬁrms the critical roleof an effective campaign to educate consumers about the
beneﬁts of reducing washing temperature. For perspective,the energy-saving potential of washing at low temperatures in
Italy could be as much as 1.5 billion kWh, equal to the energy
consumption of households in Florence.

The Future of Distribution?

Children’s Safe Drinking Water

One P&G project is focusing on how to design and constructsustainable manufacturing and distribution centers. Take
the Amiens distribution center in France. It’s about 600,000
square feet, able to store and handle up to 70,000 pallets of
P&G products.

P&G’s PUR Puriﬁer of Water presents astounding opportunities
to improve and save lives in the developing world, wheremore than a billion people lack access to clean drinking water.
Millions die, including about 2 million children.

Braun shaving systems feature Smart Plugs that use 64
percent less energy than standard shavers, resulting in
reduction of 5,583 metric tonnes of CO2 annually. This isequivalent to removing 1,073 cars from the road, planting
1,526 acres of forest or lighting 5,861 homes for a year.

The Amiens distribution center incorporates the best thinking
on sustainable design, from within P&G and outside. Examples
of sustainable solutions adopted at the distribution center are:• solar panels for hot water supply and photovoltaic cells forenergy production• wind turbine to produce up to 10 percent of the energy
needed on site
• natural light usage, saving up to 30 percent energy• energy-efﬁcient lighting, daylight dimming and motion
detection, saving up to 70 percent energy• forklift trucks with regenerative motors, yielding energy
savings up to 30 percent• recyclable wall and roof cladding panels• carpet with 80 percent recyclable yarn

PUR offers a quick, easy and affordable way to clean
contaminated water. It kills viruses and bacteria that cause
typhoid and cholera. It effectively reduces parasites, pesticides,
heavy metals and other dangerous contaminants.
P&G brings PUR to families who most need it, either in caseof emergencies (e.g., tsunami, earthquakes and refugee
camps) or through sustained efforts in the developingworld. Our main challenges regarding PUR are providing
it where it’s needed and ensuring its long-term use. To
meet these challenges, P&G collaborates with public healthorganizations in the poorest parts of the world to make
PUR available and teach people how to use it. One major
partner is Population Services International (PSI), whichmarkets health care products in developing countries on a
nonproﬁt basis.

Design: RDG

On the Cover
While in Santiago, Chile, for meetings, 30 P&G Latin America
general managers took time out to join a community improvement
activity in the low-income neighborhood of La Pintana. They took
part in installing a play center, building a sand box, planting an
orchard and painting a fence. Sociedad Activa, the local chapter ofUnited Way, is upgrading the playground, patronized by more than
140 children ages 2 through 5.

Contact
E-mail sustainrep.im@pg.com
Visit www.pg.com/sr for the full report.
© 2007 Procter & Gamble
0004-6001