2020
Citizenship
ReportEXECUTIVE SUMMARY

2 • The Procter & Gamble Company

Dear
Stakeholders,Last fiscal year, we stepped up our efforts
to be a force for good and a force for growthby doing our part to help people andcommunities overcome the challenges of the
COVID-19 pandemic, address longstanding
issues of inequality and tackle climate change.
We activated every element of our Citizenshipplatform — Community Impact, Equality &Inclusion and Environmental Sustainability,with a foundation of Ethics & Corporate
Responsibility guiding everything we do.

As healthcare workers and first responders fought
the pandemic, P&G people worked tirelessly to supply
people and their families with much needed health,hygiene and cleaning products.
Our ability to continue to supply consumers during
this extraordinary time was dependent on the trust in
our Company that we had built with governments andother stakeholders. Our track record as a responsible
company that works to do the right thing enabled us
to quickly and credibly work with governments aroundthe world to ensure we could continue to operate, with
important safety protocols in place, to maximize theavailability of our products for people who count on
our brands and the benefits they provide.
At the same time, we ramped up our Community
Impact efforts on a global scale like never before,
expanding our existing disaster relief operations
to donate tens of millions of dollars worth of products,
cash and in-kind support, including personal protective
equipment, to families and communities in needthrough more than 200 relief organizations worldwide.
Crises like COVID-19 often reveal the inequalities inour society, and this crisis showed just how much
more there is to be done to create an equal world.
We accelerated our efforts in Equality & Inclusion withdeliberate, sustained action, inside and outside of P&G.

DAV I D S . TAY LO R
Chairman of the Board, President
and Chief Executive Officer

David Taylor visits our plant in Lima, Ohio, one ofseveral global locations where we began producing
hand sanitizer for use in our facilities to help us
operate safely and to share with hospitals, healthcare facilities and relief organizations.

The Procter & Gamble Company • 3

We started internally by reviewing our policies andpractices to make sure they are not only inclusive
but deliberately advance and enable equality andinclusion. For example, flexibility at work, intentional
career planning and paid parental leave are provenaccelerators of equality, and even during the pandemic
we remained focused on each of these. We also madeprogress on our aspiration to reach 50/50 womenand men at every level of our Company, including
P&G’s Board of Directors. We’re now sharing our
representation data and progress transparently on
our website at pg.com/equalityandinclusion.
Externally, over the past few years, we’ve taken a standand used our voice on important issues, ranging frompay equality to equal representation to racial inequality,
through films and campaigns such as “The Look,” “TheTalk,” “The Words Matter,” and “We See Equal,” among
others. In recent months, we continued this work withfilms and campaigns like “Choose Equal,” “The Pause,”“The Choice,” “Talk About Bias” and more.
To specifically address the systemic racism andinequality that have been institutionalized in our society,especially against Black Americans, we established the
P&G Take On Race fund to help fuel organizations thatfight for justice, advance economic opportunity, enable
greater access to education and health care and makeour communities more equitable.

of natural climate solutions. Importantly, while climatechange impacts everyone, all too often the people andcommunities most impacted are those who are mostvulnerable. By accelerating our progress and investingin natural climate solutions, we can help protect
ecosystems and communities around the world.
We’ve also accelerated our commitments to protect
forests. Responsible sourcing is essential for not just ourbusiness, but more importantly, for the environment
and people who depend on it. Our shareholders haveasked us to issue a report assessing how we can further
increase the scale, pace and rigor of our efforts on
responsible forestry. We are engaging with and learningfrom shareholders and stakeholders who supported
this resolution, and we will provide that report in mid2021. We also publish detailed information about ourforestry practices in the Environmental Sustainability
section of this report.
The past year is proof that Citizenship cannot besomething done on the side; it has to be built into
how we do business every day. Not only does it build
trust and equity with consumers and the broader setof stakeholders we serve, when done with the rightintentions and with meaningful actions, it drives
growth and value creation, which allows us to be aforce for good and a force for growth in our worldthat needs us all to work together.

We are committed to be part of the solution in the fightagainst inequality.
At the same time, we remain steadfast in ourenvironmental sustainability commitments because
the next decade represents a critical window to address
climate change. This summer we announced our plan
to be carbon neutral for the decade by 2030. We’ll dothis by increasing energy efficiency, purchasing 100%
renewable electricity globally and advancing a series

Community
ImpactEquality& Inclusion

DAVID S. TAYLOR
Chairman of the Board,
President and Chief Executive Officer

Environmental
Sustainability

Ethics & Corporate
Responsibility4 • The Procter & Gamble Company

Stepping Up as a Force for Goodin Response to COVID-19
For generations, we’ve united to support consumers and communities throughunexpected challenges, providing the brands people count on to take care of
their personal health and hygiene and to create clean and healthy homes.
We’re answering the call to do even more, guided by three core principles:

PROTEC TI N G
P&G PEO PLE

P&G people can work confidently
knowing the Company stands withand behind them, with a rigorous
focus on health and safety.

We’re continuously evaluating
and updating the robust measuresalready in place to help our people
stay safe at work and enablingothers to work from home.

We’re using our R&D, engineeringand manufacturing expertise to
make non-medical face masks,
face shields and hand sanitizer tosupport our operations and toshare with hospitals, healthcare
facilities and relief organizations.

S E RV I N G
CO N S U M E R S

S U PPO R TI N G
CO M M U N ITI E S

We’re constantly finding new ways
to deliver more of the products
consumers depend on.

We donated tens of millionsof dollars in cash, product andin-kind support to individuals,
families and communities, helping
ensure that they have access tothe everyday essentials many of
us take for granted.

We’re using our marketing andcommunications expertise toencourage consumers to support
public health measures like social
distancing and mask wearing,to help slow the spread of the virus.

We’re using our brands’ voices
to share important safety,
cleaning and hygiene messages
with consumers.

More than 50 brands madedonations, and in partnership withmore than 200 relief organizations,
we reached people in morethan 55 countries, providing
help to nursing homes, shelters,
community groups, food banks
and more.

The Procter & Gamble Company • 5Community
ImpactAmidst a global pandemic, multiple
natural disasters, a growing need forlife’s daily necessities and with clean
drinking water unavailable for so many,
P&G continues to step up through ourbrands, our people and our resources
to make a positive impact.
Being a good corporate citizen is coreto who we are as a Company. From the
beginning in 1837, our founders madegiving back a priority. Our brands are
uniquely positioned to help and provide
the comforts of home, health andhygiene during challenging times. We
are committed to making each day alittle bit better for people, families
and communities around the globe.

6 • The Procter & Gamble Company

Stepping Up During a Global Pandemic
P&G has a long history of supporting communities intimes of need, and we quickly pivoted our disaster relief
program to focus on the unprecedented global needs
created by COVID-19.
Our help reached around the world. We sponsoredmultiple benefit events, including Global Citizen’s“One World: Together At Home” concert that raised$127 million for the WHO COVID-19 Solidarity
Response Fund and regional response organizations.
We were honored to contribute our marketing andcommunications expertise to two widely-viewed
multimedia campaigns — “#DistanceDance” to createawareness about social distancing and “#MasksOn,”a State of Ohio campaign to encourage people towear face coverings in public.
Employees in Italy volunteered four free hours ofadditional work to produce extra cases of Mr. Properwith bleach, which was then donated to local hospitals.
Working with long-time partners, P&G China donatedmillions of dollars worth of product and financial aid

to bring relief to those in need. While the pandemic
remains, so does our commitment to step up andcontinue to help.

Bringing Clean Water to Communities
Around the World
Nearly a billion people do not have access to clean water,
and that is exactly the challenge of U.N. Sustainable
Development Goal #6 and what our Children’s Safe
Drinking Water (CSDW) Program works to address.
In 2004, we launched the non-profit program thatuses a P&G-invented technology — P&G Purifier of
Water packets — that can transform 10 liters of dirty
and potentially deadly water into clean, drinkable waterin only 30 minutes. Working with more than 150 public,
private and non-profit partners, we have delivered morethan 17 billion liters of clean water, which have helped
transform communities through improved health,access to education and better economic opportunities.

We have delivered more than

17 billion litersof clean water using our P&G
Purifier of Water packets.

The Procter & Gamble Company • 7

Habitat for Humanity — Building MoreThan Homes, Building a Future
In Thailand, P&G engaged the local community andHabitat for Humanity to create a new house madefrom plastic waste. Employees teamed up with local
government, teachers and students to clean a local
beach. The plastic waste collected was added to morethan 10 tons of material to be upcycled into pellets
used to build a house. The intent was to help the local
community and the environment and to educate
children on the importance of sustainability.
We also partnered with Habitat for Humanity to build
a shelter for economically disadvantaged girls athigh risk of gender-based violence in rural Kenya.
The building provides a home to many girls who use
the shelter as a safe place to learn and pursue their
dreams. The community, including the girls and theirparents, elders and government representatives,
commissioned the facility last year.

Tide Cleaners Provides Loads
of Hope for Frontline Responders
Tide and Tide Cleaners franchisees created a programin the midst of COVID-19 to provide free dry-cleaning
and laundry services to frontline workers and their
immediate family members affected by the extreme
working conditions of the pandemic. The effort
began in late March and within weeks, Project Hopewas operating in more than 26 cities. By the endof June, Project Hope served more than 104,000
frontline responder visits, cleaning more than 1.8
million garments — all for free and giving our frontline
responders some of the hope they give us every day.

Project Hope, by Tide andTide Cleaners, served morethan 104,000 frontline
responder visits.

Helping Out Down Under
From September 2019 to March 2020, Australia
experienced its worst bushfire crisis in decades. It isestimated that the fires destroyed more than 12 million
hectares, taking human lives, damaging homes andkilling many native animals. Many people sufferedfrom a heavy smoke haze, which lasted for months.
To assist the community and recovery efforts, P&G
with our partner Foodbank donated more than
100,000 products, including Oral-B toothbrushes
and toothpaste, Head & Shoulders shampoo, Fairy
detergent and Gillette razors. Our teams in both

Sydney and Melbourne volunteered in the Foodbank
warehouses to help distribute the much-needed
supplies. We also donated money from our global
disaster relief fund to Habitat for Humanity to assist
in critical rebuild and recovery projects. The Aussie
hair care brand donated more than $100,000 to
WWF-Australia and WIRES WildLife Rescue, and Vicks
Australia partnered with Direct Relief to donate morethan $20,000 to help distribute N-95 masks to assist
those exposed to poor air quality and smoke haze.

Our campaign “The Choice”
invites the often-silent
majority to become allies,
advocates and activists
to end racial inequality.

The Procter & Gamble Company • 9

Equality& Inclusion
At P&G, we know that an equal world is abetter world — for everyone. Our success isgrounded in the success of our employees,
consumers and communities. All of them.
We aspire to create a company and a world
where equality and inclusion is achievable
for all; where respect and inclusion are
the cornerstones of our culture; whereequal access and opportunity to learn,
grow, succeed and thrive are available toeveryone. Our E&I strategy is holistic andintegrated so that we make meaningful
impact in four key areas: for our employees,with our brands, through our partners,
and in our communities.
We are committed to honoring theindividuality and unique contributions of ourpeople, and by being united in our values
and goals, our people flourish, businessthrives and our communities prosper.
Stepping Up Our Ongoing Efforts
to Advance Racial Equality for All
For years, we have used our voice as a leading
advertiser to shine a light on inequality, highlight bias
and spark dialogue that leads to understanding andaction with award-winning short films like “The Talk”
and “The Look.” We’ve also brought companies together
for collective action under the “Take On Race” coalition.
Recognizing a new moment of urgency in our society,P&G and our brands stepped up our ongoing efforts
to advance equality for all people and especially atthis moment for Black and Brown Americans. We
highlighted the disproportionate impact of COVID-19

on Black and Hispanic communities in America withthe films “Circumstances” and “Estamos Unidos” andhave sponsored fundraising and relief efforts to help
those disproportionately affected by the pandemic.
We established the P&G Take On Race fund to help fuelorganizations that fight for justice, advance economic
opportunity, enable greater access to education andhealth care and make our communities more equitable.
The P&G Take On Race fund supports larger, establishedorganizations in North America like the NAACP Legal
Defense and Education Fund, YWCA “Stand Against
Racism” and the United Negro College Fund. It also
includes smaller organizations that mobilize andadvocate, such as Courageous Conversation and groups
that hold our elected officials more accountable.
We continued our series of thought-provoking films
on bias and racism with “The Choice,” which invites
the often-silent majority to become allies, advocatesand activists to end racial inequality. The film isaccompanied by an extensive web-based resource at
pg.com/takeonrace that gives people a place to start
the journey of transforming equality from a dream toa reality. Together, we can make real lasting change
when we actively work to prevent, address and rectify
inequality — individually and collectively.

10 • The Procter & Gamble Company

Increasing Diversity in Our Workforce
We’ve declared two representation aspirations: globallyto achieve gender-equal representation at every
level, and in the U.S. to achieve 40% representationof multicultural employees at every managementlevel of the Company. We are publishing progress
on increasing diversity in our workforce at pg.com/
equalityandinclusion.

GLOBAL WORKFORCEREPRESENTATIONBY GENDER
On our way to ouraspiration of 50-50
women and men at
every level.

2020

40%
TOTAL WOMEN

48%

Management

52%

52%

Management Recruiting

48%

WOMEN

WOMEN

U.S. WORKFORCEREPRESENTATIONBY RACE AND
ETHNICITYTOTAL MULTICULTURAL

25%
28%
40%

AFRICAN ANCESTRY

OverallManagement
Mgmt Recruiting

To celebrate and acknowledge the amazing impact ofmulticultural women within the Company and beyond,this year’s #WeSeeEqual Forum featured a variety ofpanel discussions with P&G leaders and like-minded
influencers, including comedian, actress and writer
Mindy Kaling, spoken word poet and performing artist
Amena Brown and leadership development expert,
Tara Jaye Frank. During the forum, multicultural womenfrom across the Company shared their perspective
on expectations and aspirations for P&G — along withthe meaningful work they are leading across brandcampaigns, supplier diversity and community impact.

#WeSeeEqual Forum at Geneva HQAsks “Check Your Blind Spots”

25%

OVERALL MULTICULTURALHISPANIC/LATINX

OverallManagement
Mgmt Recruiting

In honor of International
Women’s Day, we hosted ourfourth annual #WeSeeEqual Forum at our Cincinnati
headquarters. As we reinforced P&G’s aspiration tohave 50/50 representation of women and men at every
level in the Company, we announced a new aspirationto achieve 40% multicultural representation at every
management level in the U.S.

7%
9%
9%

Geneva headquarter’s first #WeSeeEqual Forum
took place under the theme of “Will you Check yourBlind Spots?” The forum sessions offered insightful
conversations around advancing gender equality
both at home and at work for our employees andcommunities through our brands and partnerships.
Eve Rodsky, the New York Times bestselling author of
Fair Play, introduced employees to a game-changing
solution that teaches partners how to create a system
for rebalancing domestic responsibilities fairly, which
in turn allows each of us to step into our jobs, ourparenting and caregiving roles, and the world more fully.

WHITE

10%
8%
12%

OverallManagement
Mgmt Recruiting

74%
70%
58%

• Data as of June 30, 2020 based on employees’ most recent self-identification.
• Multicultural includes: Black or African American, Hispanic or Latino, Asian,

ASIAN PACIFIC

OverallManagement
Mgmt Recruiting

MEN

2020

On our way to ouraspiration of 40%
multicultural employees
at every managementlevel.

OverallManagement
Mgmt Recruiting

MEN#WeSeeEqual
Forum at Cincinnati
HQ Celebrates
Multicultural
Women’s Impact

5%
10%
15%

American Indian/Alaska Native, two or more races, Native Hawaiian or other
Pacific Islander.
• Numbers may not add to 100% due to rounding and because a small
percentage of employees have chosen not to disclose their race/ethnicity
or chose other.

The Procter & Gamble Company • 11

SK-II and Olympic Athletes Challenge
Us to End Toxic Competition in Beauty
Competition brings out the best in us. It pushes
us further, drives us harder and makes us stronger.
We celebrate it and revel in it. But there is one
place where it does not bring out our best — beauty.
It is the one competition that no one signed up
for, but still many feel the pressure of competing
beauty standards, rules and limitations. These toxic
competitions dictate how we should look, feeland act, which can hold us back in our daily lives.
P&G’s SK-II brand partnered with top Olympic
athletes including Simone Biles, the world’s mostdecorated gymnast, Liu Xiang, world-record holder
swimmer, Kasumi Ishikawa, table tennis player
and two-time Olympic medalist, Ayaka Takahashi
and Misaki Matsutomo, badminton duo andOlympic gold medalists, Mahina Maeda, surfer and
Hinotori Nippon, member of the Japan volleyballteam, to call out toxic competition in beauty andshare their personal experiences on their social
channels. They sent a powerful message: “We won’t
compete anymore. Beauty is #NOCOMPETITION.”
Since its launch at the 2020 MAKERS Conference,“Beauty is #NOCOMPETITION” has sparked a global
conversation and become a rallying cry for womento call out these toxic competitions and define
what beauty means to them.

12 • The Procter & Gamble Company

TIME and P&G Reveal 100 Womenof the Year
In line with our aspiration to build a world freefrom gender bias and in honor of International
Women’s Day, we partnered with TIME andaward-winning filmmaker Alma Har’el on the
groundbreaking 100 Women of the Year project,spotlighting influential women from 1920 topresent day who made tremendous contributions
to humanity but were often unrecognized andovershadowed throughout history.
To recognize these women, TIME editors embarked
on a historic project and selected a woman torepresent each year from 1920 to 2020, and thencreated a TIME cover to shine a light on these
extraordinary women who deserve their placein history.

Workplace Equality Begins at Home
Caring for home and family has no gender.
Our new global parental leave policy will provide
a minimum standard of eight weeks fully paid
leave for all parents: biological parents, domestic
partners, adoptive parents and parents in same-sex
couples, with an additional six weeks physicalrecovery leave for birth mothers. The goal is toimplement this new policy globally by 2022.
More than a policy change, it is a step toward
shifting cultural norms by making child caregiving
gender unbiased. We believe equality at home
will help to advance equality in the workplace.

The Procter & Gamble Company • 13

P&G Employees Volunteer to Be Their Eyes
As P&G steps up to support communities around theworld, we want to be as inclusive as possible. This iswhy, together with our charity and broadcast partners
for the special COVID-19 relief events Global Citizen’s“One World: Together At Home” and BET “Saving Our
Selves,” we joined forces with Be My Eyes — a uniqueplatform that connects sighted volunteers with theblind and low-vision community to help navigate
everyday life.
Thanks to passionate P&G colleagues who volunteered
to provide personalized live audio description, people
with low and no vision were able to follow and enjoy
these entertaining programs using the Be My Eyes
app. P&G volunteers were on call, ready to describe
anything users wanted to know about the event. They
read the lineup, helped access streams and content
and answered questions about what was going on in
the broadcast.

Can’t Cancel Pride Raises Visibility
and Funds
Pride Month gives millions of traditionally marginalized
people the opportunity to come together every year
in an unabashed celebration of who they are. Pridecelebrations give voice and visibility to those whohave often been overlooked and oppressed, and who,
despite great strides, still struggle for equality.
COVID-19 not only led to the disruption of Pride events,
which serve as a lifeline to millions of LGBTQ+ people,
but also had a damaging effect on fundraising efforts
LGBTQ+ organizations rely on to survive. P&G and ourbrands created “Can’t Cancel Pride: COVID-19 Relief
Benefit for the LGBTQ+ Community” as a virtual relief
effort to help raise visibility and funds for LGBTQ+
communities most impacted by COVID-19. Four million
people tuned in to the event, which featured today’s
biggest names in culture and entertainment, including
Adam Lambert, Big Freedia, Billy Porter, Katy Perry,
Kim Petras, Melissa Etheridge, Sia, Ricky Martin, Kermit
the Frog, Matt Bomer and Neil Patrick Harris.
More than $4 million was raised to benefit six LGBTQ+
charities: The Trevor Project, GLAAD, OutrightInternational, CenterLink, Sage and the National
Black Justice Coalition.

This partnership is one example of how our employees
are stepping up as a force for good. We believe there
is always a better, more innovative way to create amore inclusive environment for everyone. That’s why
we’re focused on creating superior experiences withour brands, products and communications that areaccessible by everyone.

“This experience provided
a lot of insight on thedaily lives of people whoare blind or low-vision.
It helped me realize that
I still have so much tolearn as an ally of people
with disabilities.”— Be My Eyes Volunteer14 • The Procter & Gamble Company

Environmental
Sustainability
2020 GOALSIn 2010, P&G declared a set of goals and commitments to reduce our environmental
footprint across climate, water and waste. Since then our business has continued to grow,while our teams have developed smarter, more efficient ways to operate. As we close out
2020, we are proud to report that 14 out of 16 goals we set back in 2010 have been achieved.
For the two goals we did not achieve, our efforts still drove significant progress — reducing
packaging material usage by more than 200,000 metric tons and reducing energy
consumption by 19% while in the process saving hundreds of millions of dollars.
CLIMATE
Ensure 70% of machine loads
are low-energy cycles

Ensure plants are powered by
30% renewable energy

This goal was achieved in 2019 when we reported 70%
of machine loads were being done in low-energy cycles.

P&G was able to reach 31% renewable energy. This
result was a combination of reducing our overall
energy use while increasing our use of renewableenergy sources.

Reduce energy use at P&G facilities
by 20% per unit of production by 2020
P&G was able to reduce energy use per unit ofproduction by 19%. While this was just short of goal,
we saved hundreds of millions of dollars on ourenergy conservation efforts in the process.

Reduce truck transportation
kilometers by 20% per unit ofproduction
This goal was achieved several years early,
and we reduced kilometers by more than 25%.

Reduce absolute greenhouse gas(GHG) emissions by 30% by 2020
P&G was able to reduce absolute GHG by 52%.
We significantly over-delivered on this goal byaccelerating efforts on renewable electricity.

We targeted a 30% reduction in
Scope 1 & 2 GHG emissions by 2020,
and we overdelivered by achieving a

52% reduction.

Implement palm oil commitments
We achieved our 2020 goal of 100% Roundtable on
Sustainable Palm Oil (RSPO) certified for all palm oiland palm oil derivatives. We’re on track to deliver 100%
RSPO for palm kernel oil and palm kernel oil derivatives
used in our brands by the end of 2021, 12 months aheadof our previous commitment.

Have 100% of the virgin wood fibers
used in our tissue/towel and absorbent
hygiene products be third-party
certified by 2015
This target was achieved in 2015, and we havemaintained 100% certification since that time.

Create technologies by 2020 tosubstitute top petroleum-derived raw
materials with renewable materials as
cost and scale permit
This target was achieved in 2018 when we announced
we had developed the capability to substitute our top
petroleum-derived materials (plastic resin, cleaning
agents and acrylates) with renewable materials.

The Procter & Gamble Company • 15

WATER
Provide one billion people with accessto water-efficient products

Reduce packaging by 20% per
consumer use

In 2019, we achieved our goal to provide one billion
people with access to water-efficient products.
The end of the decade doesn’t mean the end of
this important work. P&G brands, like our Waterl<sshair care brand, will continue to look for opportunities
to help consumers reduce in-home water use.

We have avoided the use of more than 200,000 metrictons of packaging since 2010. While we consider
this a success, we also acknowledge this is only a
12% reduction. Market driven headwinds negatively
impacted our results. This included customer requests
for lower case counts that increased the amountof corrugate per consumer use in some markets.
Optimizing our packaging designs will remain a key
focus going forward.

Reduce water use in manufacturing
facilities by 20% per unit of production
with conservation focused on waterstressed regions
P&G has exceeded this goal since 2015. This past
year, P&G achieved a reduction of 27% per unitof production.

WASTE
100% of plants achieve zero
manufacturing waste to landfill
by 2020
This goal was achieved in 2020. We estimate thatthe cumulative cost savings from this effort wasmore than $2 billion.

Have 100% of our paper packaging
contain either recycled or third-party
certified virgin content by 2020
We achieved 99.5% with plans in place to address theremaining small fraction (0.5%) of our supply. We willcontinue to monitor and report the status.

With 10 years of progress and

14 of 16 goals
achieved,
there’s still more work to do.

Double use of recycled resin inplastic packaging
We achieved this goal in 2020, using 52,800 tonsof recycled resin, which exceeded our target levelof 52,000 tons.

Ensure 90% of product packaging iseither recyclable or programs are inplace to create the ability to recycle it
This goal was achieved in 2019. We will continue toreport progress versus our 2030 goal of 100% recyclable
or reusable packaging globally.

Conduct pilot studies in both thedeveloped and developing world
to understand how to eliminate
landfilled/dumped solid waste
We have implemented a wide range of pilot studies
and continue to work in collaboration with manyorganizations to drive progress toward our 2030
goals on packaging and waste.

16 • The Procter & Gamble Company

AMBITION 2030
Today, we have new ways to measure
the impact of our actions and newtools and technologies to manage how
we affect the environment. We also
have years of experience that help us
refresh our approach to environmental
stewardship and evolve what it means tobe “environmentally sustainable.” In 2018,
we took a hard look and refocused ourenergy toward 2030, with a new set ofgoals and an embrace of new practices
intended not just to reduce our footprint
and conserve precious resources, but tohelp restore the world, ultimately leaving
it better than we found it.

SUPPLY CHAIN
Reduce our footprint andstrive for circular solutions• We will purchase 100% renewable electricity globally,
cut GHG emissions in half at P&G sites and be carbon
neutral for the decade.
• P&G sites will deliver a 35% increase in water
efficiency and source at least five billion litersof water from circular sources.
• We will advance at least 10 significant supply chain
partnerships to drive circularity on climate,water or waste.
• We will protect and enhance the forests wedepend upon.
—

We will partner to increase the area of certified
forests globally, while working to strengthen
certification systems.

—

We will play a leadership role in efforts to develop
a forest positive approach for the forest products
industry that is based on sound science anddelivers forest health benefits.

BRANDS
Use the power of innovationand our brands to enable
sustainable lifestyles anddrive positive impacts• 100% of our leadership brands will enable and inspire
responsible consumption.
• 100% of our packaging will be recyclable or reusable.
• We will reduce our use of virgin petroleum plastic
in packaging by 50%.
• We will build even greater trust through transparency,
ingredient innovation and sharing our safety science.

SOCIETY
Create transformative
partnerships that enablepeople, the planet andour business to thrive• We will find solutions so no P&G packaging will findits way to the ocean.
• We will protect water for people and nature inpriority basins.
• We will collaborate on and invest in natural climate
solutions that improve and restore critical ecosystems
and support local communities.

• We will improve livelihoods of palm smallholders
by increasing yields from existing lands.

EMPLOYEES
Inspire and enable every
P&G employee to build
sustainability into theirwork and their communities• We will integrate social and environmental
sustainability as a key strategy in our business plans.
• We will educate employees across all levels.
• We will reward progress and integrate recognitionin the individual’s performance assessment.

The Procter & Gamble Company • 17

Reducing Our Carbon Footprint
In July, we announced our latest set of climate actions— a new commitment to advance a series of natural
climate solutions over the next 10 years that will put
us on track to be carbon neutral for the decade.
This commitment represents an acceleration of P&G’s
existing climate commitment to cut greenhouse gas
emissions by 50% across our operations by 2030 andis an important step forward in helping people andthe planet to thrive. These come on top of our existing
Ambition 2030 commitments and environmental
sustainability goals.
Here are the key actions we will be taking:• Our primary effort will be to reduce our absolutegreenhouse gas emissions. We will halve Scope
1 and 2 emissions — which are all direct emissions
generated from activities across our organizationand indirect emissions generated from electricity
purchased and used — by increasing energy efficiency
and purchasing 100% renewable electricity globally.
• Today, 70% of our global operating sites are purchasing
100% renewable electricity, and we are pursuing
additional wind, solar and geothermal projects tofurther accelerate the transition to renewables.
• We will also address the greenhouse gas emissions
we cannot eliminate, partnering with Conservation
International, WWF and other leading NGOs tofund natural climate solutions. This includes
projects that protect, improve and restore criticalecosystems where carbon is stored, while supporting
local communities and economic stability.

“This next decade will determine
the future of our planet and thecommunities we call home.”
DAV I D S . TAY LO R
Chairman of the Board, President
and Chief Executive Officer• As a start, we will fund three natural climate
solutions projects in Brazil, the Philippines andCalifornia — these initiatives are designed to protect,
improve and restore forests and wetlands that
capture and store massive amounts of carbon.

18 • The Procter & Gamble Company

Packages that Use Less, Recycle orRefill More

Project HolyGrail PioneersIntelligent Packaging

Commitment. New ideas. Creative thinking. P&G
brands around the world are pursuing a range ofsolutions with the aim to make packaging moresustainable. As a Company, we are working to ensure
100% of our packaging will be recyclable or reusable
by 2030 and to reduce virgin plastic in packaging by
50% by 2030. We’re innovating, collaborating andtaking action to unleash the circular economy across
our portfolio of brands.

P&G led a coalition ofcompanies under Ellen
MacArthur Foundation’s
New Plastics Economy Pioneer
Projects to solve one of thelargest obstacles facing recycling:ineffective sorting at material recovery facilities.

Working toward

100%of our packaging
being recyclable orreusable by 2030.

What is PCR?
Post-consumer resin — PCR — is recycled plastic thathas been collected after consumer use and is used
to create new products and packaging. Pledging toincrease the amount of PCR in our packages is good,and innovating with partners to recycle and reuseplastic in laundry and shampoo bottles is great. By
developing and fostering end-markets, we help ensure
there is demand for recycled materials that would
otherwise be destined for landfill. This helps unleash
the circular economy.
We’ve been buying PCR since the early 1990s, and it’scontinuously being made into new detergent bottles— more than 15,750 tons per year in North America.

• HolyGrail tested the use of digital watermark
technology to turn packages into intelligent objects
and accomplish sorting benefits deemed impossible
for the recycling industry to achieve.
• Faster, more accurate sorting means more plastics
go back into the circular economy at a much higher
reuse quality.
Widespread adoption of harmonized digital technology
also enables end-to-end ‘smart package’ advantages
including quality inspection and inventory management
systems at production plants, faster checkout at
retail, scannable content for consumers and tracking
materials recovery at recyclers.
HolyGrail 2.0 — facilitated by AIM, the European
Brands Association — is the next step in the journey.
Officially launched in September 2020, the HolyGrail
2.0 consortium currently has more than 85 value chain
members including some of world’s biggest brandowners and retailers. P&G is chairing the Leadership
Team of HolyGrail 2.0, with the goal to enter a European
test market by early 2022.
Refill and Reuse More Bottles
As of 2021, Head & Shoulders, Pantene, Herbal
Essences and Aussie will enable 200 million European
households to recycle, reduce and reuse. The leading
beauty brands will launch a refill system for theirshampoo, thanks to a new reusable 100% aluminumbottle and recyclable1 refill pouch, made using 60%
less plastic (per mL versus standard brand bottle). P&G
Beauty is on track to reduce virgin plastic usage by 50%
in shampoos and conditioners bottles by the end of
20212, where through collective efforts to reduce, reuse
and recycle, it will result in 300 million fewer virginplastic bottles being produced yearly.

1 Where collected. Not recyclable in Belgium, Ireland, Switzerland
due to lack of local recycling facilities
2 OND’21 vs 2016

The Procter & Gamble Company • 19

Promoting Responsible Forestry
Trees and the products they provide are an essential
part of our daily lives and can play a role in helping
address climate change. By producing all of our Family
Care products with pulp sourced from responsibly
managed forests, we are helping to promote forestry
practices that leave a smaller environmental footprint,
protect vulnerable species and make a positive impact
on communities that depend on them.
For every tree we use, at least one is regrown. P&G
requires that 100% of the wood pulp we source iscertified by a leading third-party certification system
ensuring forests are responsibly managed. Additional
details about P&G’s forestry efforts are available on our
website, and we’ll publish a new report in mid-2021
assessing how we can increase our progress.

Saving Water
For P&G, water is essential for both the use andproduction of our products. Over the last ten years,
our water stewardship program has evolved alongside
our growing understanding of the complex challenges
facing our world’s water resources and where we canhave the greatest impact. We are focusing on threeareas to advance our program: driving water efficiency
in our manufacturing, innovating to create products andcampaigns that reduce in-home water use and building
partnerships to advance our conservation efforts.
Using Less Water at Home100%of the wood pulp we sourceis certified by a leading
third-party certification
system ensuring forests
are responsibly managed.

We know that 96% of our water footprint is associatedwith the use of our products — like doing dishes,laundry or showering. Brands like Cascade are stepping
up to create campaigns that educate consumers on
how to conserve water. Cascade’s “Do It Every Night”
campaign informs consumers they can save up to 100
gallons of water a week if they run their dishwasher
every night versus washing by hand.
Fast Forward: the 50L Home
The average home in the developed world is highly
inefficient, using up to 500 liters of water per person
each day. Showering, laundry, cooking and washingdishes uses 10% of the global water supply. We are
spearheading the 50 Liter Home Coalition to bring
together partners across the domestic water value
chain to leverage technologies and innovations thatenable a person to live on 50 liters of water per day
that feels like 500 liters.

P&G and our partners
are building a vision for asustainable water futurewith the 50L Home.

Brand 2030
Consumers today want to know whatbrands — and the people behind them— believe in, and they expect brands toplay a meaningful role in solving someof the most complex challenges facing
our world.

PROMOTINGHEALTHYFORESTS

CharminCommunity
ImpactEquality& Inclusion

Environmental
Sustainability

Ethics & Corporate
Responsibility

Serving five billion people gives ourbrands the unique opportunity to delight
consumers through superior productperformance and spark conversations,influence attitudes, change behaviors
and drive positive impact on society andthe environment.
This is why, in addition to and in line

Charmin is committed to promoting healthy
forests for generations to come. We drive thisforestry commitment by helping to protect,
restore, and grow forests. To protect forests andensure our paper is sourced from responsibly
managed forests, Charmin is Forest StewardshipCouncil TM (FSC) certified. To restore forests,
we have been partnering with the Arbor Day
Foundation since 2017, planting trees, especiallyin areas devastated by wildfires. And in Brazil’s
Atlantic Forest, we’ve teamed up with one of our
suppliers to do landscape restoration planning.
We work with the Nature Conservancy and theAmerican Forest Foundation to help family forest
owners in the U.S. better manage their forests.
We have continued our partnership with theRainforest Alliance3 by supporting their efforts todevelop and launch the Forest Allies Communityof Practice, and we are proud to be founding
members. Finally, Charmin is committed to driving
tree growth. Within our supply chain, for every
tree we use, at least one is regrown. However,
our efforts do not stop with forestry. Charmin
continues to use recycled fibers where it makes
sense, with 100% of our toilet tissue inner cores
made from recycled fiber. Additionally, we have
reduced the consumption necessary to complete
the task via improved strength and absorbency,
thus allowing consumers to use less toilet tissue.4

with our ongoing Citizenship efforts, our

3 The Rainforest Alliance is an international non-profit organization

brands are reinventing brand-building

4 vs. leading bargain brand

to become a force for good and a force
for growth. To meet our Brand 2030
criteria, each brand will implement sevenambitious Fundamentals across product,
packaging and supply chain, and eachwill define a brand-specific North Star
commitment to help solve a societal
challenge in which the brand is uniquely
and meaningfully able to contribute.

working to create a better future for people and nature.

The Procter & Gamble Company • 21

SETTING NEW
STANDARDS FORSUSTAINABLE
LAUNDRY

ENABLING GIRLS’CONFIDENCE

AlwaysAriel

Always is on a mission to ensure that no girl loses
confidence at puberty because of their gender or theirperiod. Our brand’s #LikeAGirl campaign has beensuccessful in tackling gender stereotypes around theworld, with 94% agreeing that it helps girls feel more
confident.5 Our global Puberty & Confidence Education
program reaches more than 18 million children,
parents and teachers each year; and our global productdonation programs, including the award-winning#EndPeriodPoverty campaign, help ensure that young
people have access to the period products they needto keep learning and stay confident.

Ariel is using our science expertise to have a positive
impact on the planet. After reaching the P&G Global
Fabric Care goal of having 70% of global washingmachine loads be low-energy loads, we recognized theopportunity to help reverse climate change by setting
new standards for sustainable laundry to inspire half abillion people in Europe and beyond to turn down their
washing temperatures because every degree makesa difference. As part of this goal, Ariel will initiate across value chain partnership to make washing in cold
water the new standard and engage in partnerships
to support scientifically grounded pro-climate actions,such as carbon capturing.
Furthermore, Ariel has ambitious goals to reduce ourenvironmental impact across its full value chain. AcrossEurope, we increased the amount of post-consumer
recycled material in Ariel bottles up to 50% in 2020.
Ariel packaging will be designed for full recyclability
in Europe by 2022 and globally by 2025. Last year, Arielreplaced its round PODs tubs with lightweight bags
across European markets, saving 75% of plastic perunit. And our Fabric & Home Care manufacturing sites
in North America and the E.U. use 100% renewablepurchased electricity and send zero manufacturing
waste to landfill.

Always is also working to make meaningful progress to
reduce our environmental footprint. We are committed
to increasing the use of sustainable materials in
our products to 50% and are working to have our
packaging incorporate 50% renewable or recycledmaterials by 2025. We work to incorporate better
materials so less is needed, as seen in the UnitedStates, Europe and India, where we have reduced
the material in Always Ultra pads by 10–20% in thelast seven years. Our manufacturing sites send zero
manufacturing waste to landfill globally and are on
track to use 100% renewable purchased electricity
across all facilities by the end of the decade.
5 Among young women who are aware of the #LikeAGirl Campaign, Research Now, U.S. 2017

22 • The Procter & Gamble Company

Ethics& Corporate
Responsibility
As we serve nearly five billion of theworld’s consumers with our brands, we
believe in and have publicly committed
to doing what’s right and being a good
corporate citizen.
Our Purpose, Values and Principles
Our Purpose, Values and Principles (PVP) are thefoundation of who we are at P&G. Our Purpose is toimprove consumers’ lives in small but meaningful
ways, and it inspires our people to make positive
contributions every day. Our Values of Integrity,
Leadership, Ownership, Passion for Winning andTrust shape how we work with each other andwith our partners. And our Principles articulate
our deliberate approach to conducting work
every day. We know that our employees believein the personal and business value of this PVP
foundation. In our annual survey, employees
consistently cite our PVPs as the number one
aspect of P&G culture they would not change.
Our philosophy is that a reputation of trust andintegrity is built over time, earned every day andprovides lasting value for our stakeholders.

The Procter & Gamble Company • 23

Earning Trust through Transparency

Respecting Our Environment

We earn consumer trust by being open about our
products and business practices and by operating ina way that is responsible, respectful and transparent.
Nothing is more important than ensuring our products
are safe for consumers and the environment. We
provide information beyond the label about our
product safety standards and the ingredients we use
in our products and fragrances, and we are exploring
new ways of sharing ingredient information to ensure
it is clear, reliable and accessible. We are committed
to responsible sourcing and leading change with
our suppliers to ensure ethical, high-quality supply
chains. We are also open about the consumer data
we collect and how it is used, ensuring we obtain ourconsumers’ consent, and we respect and safeguard
this information in accordance with our Global
Consumer Privacy Policy. We work closely with our
external business partners to ensure they understandour expectations and share our standards for safety,
transparency, responsibility and privacy.

We recognize that we must be responsible forenvironmental stewardship and use resources wisely.
Our commitments to environmental sustainability are
addressed in our Environmental Policy Statements. Ourcommitments extend to our business partners, whom
we expect to share these commitments and maximize
the value and quality of their products by using
resources responsibly, preserving the environment andreducing the environmental footprint of their operations.

Good GovernanceOur employees hold themselves and one anotheraccountable for operating with trust and integrity, forstepping up as leaders and owners of the business, andfor balancing stewardship with a passion to win. We
are committed to creating a work environment that
fosters open communication and supports employees
in reporting potential violations. Employees andindividuals in our operations or extended supply chain
can report potential violations. We are committed toreviewing all allegations of wrongdoing. We do nottolerate retaliation of any kind.

We operate within the spirit and letter of the law,maintaining high ethical standards wherever we
conduct business. In addition, we believe that strong
governance principles, policies and practices contributeto better results for shareholders. The Board of Directors
has adopted the Corporate Governance Guidelines,
which describe our commitment to and guiding
principles for strong governance.

Respecting Human Rights
Respect for human rights is fundamental to theway we conduct our business. Our Human Rights
Policy Statement communicates our support for
the U.N. Guiding Principles for Business and Human
Rights, which respect and honor the principles ofinternationally recognized human rights. We embrace
this commitment and responsibility of ensuring thathuman rights are upheld all along our end-to-end value
chain, which in turn encompasses all our stakeholders,
particularly our employees, our consumers, thecommunities where we do business and ourbusiness partners.

We embrace our commitment torespecting human rights all along
our end-to-end value chain.

We, along with ourpartners, are dedicatedto using resources
responsibly.

Speaking Up

Stakeholder Engagement
We acknowledge that in order to continue to improve,
we must collaborate and engage with our many
stakeholders. This journey of partnership ultimately
furthers our commitment to be a good corporateneighbor and to improve lives in the communities
where we live and work.

Recognitions and Awards
Below are just a few of the external recognitions we’ve received this year in our Citizenshippriority areas.

U.S. CHAMBER
OF COMMERCE
FOUNDATION
Social Responsibility
in Action

Community
ImpactAmong Fast Company’s
2020 World Changing
Ideas in Creativity

Equality& Inclusion

TOP

5 years in a row

ICA’S MO
ER

CO

Ethics & Corporate
Responsibility

Since 2001

Most
Sustainable
Companies
2020

ST

AM

Environmental
Sustainability

100

M PA N I E S
2021

Ranked in Top 20
Logos are property of their respective owners; used with permission.

ABOUT OUR CITIZENSHIP REPORTThis summary shares a few examples of the work being led across the Company. Our fullreport, with more statistics and stories, is available online at www.pg.com/citizenship2020.
The information in this report covers the time period from July 1, 2019, through June 30, 2020.
© 2020 Procter & Gamble 00385007

The paper utilized in the printing of this report is certified to the FSC® Standards,
which promotes environmentally appropriate, socially beneficial and economically
viable management of the world’s forests.