P&G 2016
Citizenship Report
STARTTable of Contents
CITIZENSHIP OVERVIEW

2LEADERSHIP STATEMENT

3

P&G AT-A-GL ANCE

4

A Company of Leading Brands

5

Who We Are

6

ETHICS & CORPOR ATE RESPONSIBILIT Y

7Corporate Responsibility

8

Stakeholder Engagement

9

COMMUNIT Y IMPACT

10

Overview

11

Corporate Programs

12

Brand Programs

14

Regional Highlights

15

Employee Well-Being

18

INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT Y

DIVERSIT Y & INCLUSION20ENVIRONMENTAL SUSTAINABILIT Y

42Overview

21

Overview

43

Getting the Full Valueof Our Diversity

Climate Change

49

22

Renewable Energy

50

Building an Inclusive Culture

25

Energy Conservation

51

Stepping Up Inside andOutside Our Walls

28

Greenhouse Gas Emissions

52

Giving a Voice to Issues
That Affect Society

Low-Energy Washing

54

29

Renewable Materials

56

Packaging

57

Bringing Out the Bestin Each Other, Every Day

30

Responsible Forestry

59

Strengthening Our Legacy

35

Water

68

Waste

73

Brand Sustainability Stories

78

Working Together

79

Power of P&G People

80

Global Measurement &Additional Operational Data

81

GENDER EQUALIT Y

36Overview

37

Using Our Voice in Advertisingand Media

38

Supporting Education for Girls andEconomic Opportunities for Women

39

Helping P&G Women Thrive

41

COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

1

Citizenshipat P&G

Diversity& Inclusion

Ethics & Corporate
Responsibility

Community
ImpactGender Equality

Environmental
Sustainability

ABOUT OUR FIRST ANNUAL CITIZENSHIP REPORTP&G has been sharing a sustainability report since 1999. This year, we have expanded the scope of this report to better reflect all aspects of our citizenship work
including Diversity and Inclusion, Gender Equality and Ethics & Corporate Responsibility, in addition to the Environmental Sustainability and Community Impact
we reported on in the past. Data in this report covers the period from July 1, 2015, through June 30, 2016. Financial information is given in U.S. dollars. This
report was prepared using the Global Reporting Initiative’s (GRI’s) GRI3.1 Reporting Guidelines. The mission of the GRI is to promote international harmonizationin the reporting 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, nor does it take a position on the reliability of information reported herein.
For further information about the GRI, please visit: www.globalreporting.org

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For the latest P&G news, in-depth information on P&G’s brands, and shareholder and career information, please visit: www.pg.com

INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT Y

COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

2Leadership Statement
P&G is committed to being a good corporate citizen and always doing the right thing.

We are pleased to share with you our first-ever Citizenship
Report. In August, we announced our new Citizenshipagenda, which aggregates all the efforts we are making
in this space — ongoing efforts that also align with manyof the U.N.’s Sustainable Development Goals.
This report, which expands the scope of our former
Sustainability Report, now reflects all aspects of our Citizenshipwork — including Ethics & Corporate Responsibility, Diversity& Inclusion, and Gender Equality — in addition to theEnvironmental Sustainability and Community Impact
progress we reported on in the past.
We are, and want to be known as, a company that is governed
responsibly and behaves ethically, that is open and transparent
in its business dealings, that supports good causes and protects
the environment, and that provides an appealing place towork where our employees are treated well and are given
the opportunity to be all they can be.
This is important for our business. We know our consumers
are increasingly interested in understanding more about thecompany behind the superior performing brands and products
they have come to know and trust —  and in ensuring that ouractions and values are worthy of that trust.

We focus our Citizenship efforts across a number of areas.
We start with Ethics & Corporate Responsibility, which is thefoundation for the other four: Community Impact, Diversity& Inclusion, Gender Equality and Environmental Sustainability.
Each of these areas is led by an executive sponsor committed
to ensuring we achieve our specific objectives. Inside
this report, you’ll find more details about each of theseinterdependent Citizenship areas.
Over my career, I have come to realize the much broader impact
a company like P&G can have on the world. Everything wetouch, we can help make better. We, along with our partners,
can be a positive force for good. This happens when we
improve consumers’ lives with our brands and products, when
we act with integrity and honesty in our business dealings,
when we create jobs and economic growth, when we use our
voice to encourage meaningful dialogue, when we donate
our time and resources to make a positive impact in thecommunities where we live and work, and when we improvethe environmental impact of our products and operations.
At P&G, we’re proud of what we’ve been able to accomplishin each area of Citizenship, and we look forward to theopportunities in front of us to make a difference and bea positive force for good every day.

David S. Taylor
Chairman of the Board,
President and Chief Executive Officer

INTRODUC TION

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COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

3

P&G — At a Glance
At P&G, everything we do starts by winning with consumers and shoppers.

Our aspiration is to serve the world’s consumers better
than our best competitors, in every category and every
country where we choose to compete — creatingsuperior shareholder value in the process.
P&G is focused on four key areas of transformation todeliver balanced growth and leadership value creation:
streamlining and strengthening our product portfolio,
improving productivity and our cost structure, building
the foundation for stronger top-line growth, andstrengthening our organization and culture.

F Y 2016 NET SALES BY BUSINESS SEGMENTF Y 2016 NET SALES BY MARKET MATURIT Y(Excludes net sales in Corporate)

Grooming
Health Care

11%

28%

11%
18%

Fabric andHome Care

Baby, Feminineand Family Care

BeautyDeveloping
Markets35%

65%

Developed
Markets

32%

F Y 2016 NET SALES BY GEOGR APHIC REGION

Fiscal Year 2016

Net sales$

65.3 billion

Net Earnings attributed to P&G$

Countries of operations

About 70

Countries where our brands are soldMore than 180

Employees worldwide

About 105,000

Europe23%

10.5 billion
North America

Greater China

44%

8%

Latin America

8%

INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT Y

COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSION

India,
Middle East
& Africa (IMEA)

8%GENDER EQUALIT Y

Asia Pacific

9%

ENVIRONMENTAL SUSTAINABILIT Y

4

P&G — A Company of Leading Brands
We’re organizing our portfolio around 10 product categories and about 65 brands —approximately half of which have sales of more than $500 million each year. These 10
category-based business units have historically grown faster with higher margins than thebalance of the Company. These are categories where P&G has leading market positions andwhere product technologies deliver performance differences that matter to consumers.

FABRIC C AREGROOMING

INTRODUC TIONHOME C ARE

OR AL C ARE

E THICS & CORPOR ATE RESPONSIBILIT YBABY C AREPERSONAL HE ALTH C ARECOMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONFEMININE C AREHAIR C AREGENDER EQUALIT YFAMILY C ARE

SKIN & PERSONAL C AREENVIRONMENTAL SUSTAINABILIT Y

5

P&G — Who We Are
The characteristics that define P&G have stood the test of time — since P&G’s founding in
1837 by a candle maker and a soap maker who believed that everyday products could andshould be of the highest quality, and that the only way to run a business long-term waswith honesty and fair dealings. Their beliefs have been translated into three simple ideas:
Leadership, Innovation and Citizenship.

LE ADERSHIPCITIZENSHIP

P&G’s Purpose, Values and Principles are the foundation ofleadership — and we grow talent with the same creativity
and discipline that we bring to every other part of ourbusiness. We see leadership development as a long-termbusiness strategy.

P&G is committed to being a good corporate citizen and always
doing the right thing. We are and want to be known as acompany that is governed responsibly and behaves ethically,that is transparent in its business dealings, that supports goodcauses and protects the environment, and that provides anappealing place to work where our employees are treated welland are given the opportunity to be all they can be.

P&G is widely recognized as a top company for leaders.
• #21, Fortune’s World’s Most Admired Companies• #32, Forbes’ America’s Most Reputable Companies• #35, Barron’s World’s Most Respected Companies•	#9, Chief Executive Magazine’s 40 Best Companies for Leaders• #23, LinkedIn’s Global Top Attractors
INNOVATION

Innovation is at the heart of P&G’s business. It differentiates ourbrands vs. competition and prevents commoditization of ourcategories and brands. It’s how we delight consumers, create
value with retail partners, and create new businesses. P&G
combines “what’s needed” with “what’s possible,” conducting
hundreds of consumer research studies each year to understandwhat people need and want, in order to create superior value
and product experience every day.

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E THICS & CORPOR ATE RESPONSIBILIT Y

We focus our Citizenship efforts in five areas: Ethics & Corporate
Responsibility, Community Impact, Diversity & Inclusion,
Environmental Sustainability and Gender Equality. By growing
our Company responsibly, we earn the trust on which ourbusiness is based and we build the relationships on which
our future depends.

At P&G, the consumer is at the center of everything
we do. Every day, we work to improve people’s lives
in small but meaningful ways with our brands andproducts. Learn more about P&G at www.pg.com.

COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

6

Ethics &Corporate
Responsibility
CORPOR ATE RESPONSIBILIT YSTAKEHOLDER ENGAGEMENT

PurposePrinciples

Our brands play a uniquerole in the world

Universal respect drives
every core belief

ValuesDoing the right thingis the only thing7Ethics & Corporate Responsibility
P&G is committed to being a good corporate citizen and doing the right thing. We believe andhave publicly committed that we have a responsibility to act as good global citizens. This senseof responsibility influences everything we do. Our customers, consumers, employees and externalbusiness partners know that we do what we say, and we say what we mean. This reputationof trust and integrity, built over time and rebuilt every day, is what sets us apart. Our Purpose,
Values and Principles (PVPs) are the foundation of the Company.

We actively

partner

Our objective is to create industry-leading value by maintaining
and enhancing our strong corporate reputation through astrong ethics and compliance culture and a strong corporate
culture that supports conserving resources, protecting theenvironment, improving social conditions, respecting humanand labor rights, and empowering individuals and thecommunities in which we live, work and serve.
We operate within the spirit and letter of the law, maintaining
high ethical standards wherever we conduct business. We
believe that good governance practices contribute to better
results for shareholders. We maintain governance principles,policies and practices that support management accountability.
These are in the best interest of the Company and ourshareholders, and they are consistent with the Company’s
Purpose, Values and Principles.

Corporate Responsibility
We manage our business responsibly. This is implemented
through our policies, practices and due diligence systems(e.g., Human Rights Policy Statement; Employee Benefits;
Product Safety; Environmental Policies & Practices; Worldwide
Business Conduct Manual; Sustainability Guidelines for ExternalBusiness Partners; Responsible Sourcing). Examples of ourcommitment to our corporate responsibility can be seen
throughout this report.

INTRODUC TION

Ensuring the safety of consumers who use our products, andthe safety of the world we all live in, has been at the heart ofwhat we do. Before we market a new product, we ensure its
safety through a four-step, science-based process, which is thesame process used by regulatory agencies around the world.
We also provide ingredient and fragrance information to enableconsumers to make informed choices about the products theyuse every day.

with organizations
that share our values

We work closely with our external business partners to ensurethat our products are sourced responsibly. P&G’s Sustainability
Guidelines for External Business Partners set our expectations
with our supply base with regard to Social and Environmental
Responsibility. We actively seek business relationships withpartners that share these values, and that promote highstandards within their own supply chains. Our risk-based audit
program supports this effort by assessing partners throughthird-party audits, and identifying and remediating issues. We
strive to effect change in our supply base when we identify
improvement opportunities, and this is an important way wefulfill our purpose. We want to build a robust system of ExternalBusiness Partners that is fully integrated and synchronized with
P&G’s business and values.

ETHICS & CORPOR ATE RESPONSIBILIT Y

COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

8Ethics & Corporate Responsibility
Stakeholder Engagement
P&G works hard to be a good corporate neighborand to improve lives in the communities where welive and work.
CONSUMERS

We are committed to providing products and services that canhelp improve the lives of our consumers all over the world. In
developing and marketing our products, we adopt a “Consumer
Is Boss” approach to ensure that we delight consumers bylaunching only new products and product improvements thatgenuinely meet their needs. We actively encourage consumers
to contact us because we want to hear about our consumers’
experiences with our products. We feel very privileged that
consumers care enough about our products to contact us.
COMMUNITIESEach P&G production facility has site-specific activities tobuild constructive relationships with local authorities, industry
associations, residential and business neighbors, action groups,
thought leaders and news media. Depending on the culturesand interests of individual communities, this can range from
regular official meetings, during which new information isshared or questions are answered, to more informal meetings.

AUTHORITIES: LOC AL — REGIONAL — GLOBAL

P&G is focused on meeting consumer needs in the countries
where we do business, while creating value for our shareholders
and continuing to be good corporate citizens.
Guided by our PVPs, P&G engages in the political process toensure that the interests of our employees, consumers andshareholders are fairly represented at all levels of government
around the world. We are committed to being transparent
about our political involvement globally.
P&G’s approach to taxes is also based on our PVPs. Consistent
with the law and international norms, we believe tax should
follow business substance and that profits are generated where
key business activities take place. P&G is committed to thehighest level of tax compliance. In doing so, we observe andadhere to the tax law, the underlying tax policy intent, and thedisclosure and reporting requirements.

We encourage consumers tocontact us

about their experiences

NON- GOVERNMENTAL ORGANIZ ATIONS (NGOs):
LOC AL — REGIONAL — GLOBAL

P&G frequently enters into dialogue with NGOs to understandtheir concerns and cares. NGOs can vary by area of interest(e.g., environmental, consumer, human rights) and by theirgeographic links (from local to global).
PRINCIPAL INDUSTRY AND BUSINESS ASSOCIATIONS

P&G holds membership in many industry and businessassociations whose activities are related to the Company’s.
These associations provide a forum for us to promote anddefend our interests in the broader industry context whileproviding a lawful platform for joint research, issue monitoring,and sharing of best practices.

INTRODUC TIONETHICS & CORPOR ATE RESPONSIBILIT Y

COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

9Community
Impact+OVERVIEWCORPOR ATE PROGR AMS

We supported
Habitat for Humanity
projects in more than

BR AND PROGR AMS

10REGIONAL HIGHLIGHTSEMPLOYEE WELL-BEING

We have improved school
facilities in rural China for over

300,000

countries

students

We responded to26

global disasters

Our Born Learning program
has improved the lives of

100,000

children in Latin America

10Community Impact Overview
For nearly 180 years, we have been focused on improving the communities we serve. Through ourbrands, our products and our people, we have a unique role to play in improving the health andwell-being of the people who are part of our global community. From a family in Mexico enjoying
clean drinking water to a mother in Uganda playing with a healthy toddler, to a girl in rural China
realizing the promise of an education, we are committed to helping the communities we touch.

Nearly1 billion

people don’t haveaccess to clean
drinking water

We’ve delivered

10 billion
liters of clean
drinking water

Sharing the Power of Clean Water
In May, we celebrated reaching the 10 billionth liter
milestone of clean water, delivered to a family in
Mexico through our P&G Children’s Safe Drinking
Water Program. Working with our 150+ partners
around the world, we are well on our way toreaching our goal of 15 billion liters by 2020.

HELPING NEIGHBORS IN TIMES OF DISASTERPROTEC TING THE MOST VULNER ABLE AMONG US

After disaster strikes, necessities and basic comforts of homeare often overlooked. Head & Shoulders, Oral-B, Pantene,
Pampers and other P&G brands donate thousands of products
and hours to help survivors, families and entire communities
regroup and recover. This year, we worked with relief
organizations to provide the comforts of home to those
impacted by 26 global disasters.

Even though neonatal tetanus is easily preventable with asimple vaccine, about 49,000 babies still die every year. That’s
one newborn fatality every 11 minutes. Pampers supports
UNICEF in their effort to eliminate neonatal tetanus in EVERY
country. Since the start of the campaign, Pampers has helped
UNICEF eliminate neonatal tetanus in 19 countries. We are now
halfway towards achieving our goal of eliminating this disease
from the world.

FORMING A HE ALTHY VISION FOR CHILDREN

During the last three years, our Born Learning program in
Latin America has improved the lives of 100,000 children,
strengthened nearly 1,400 child care centers, and trained morethan 15,000 parents and 5,000 teachers and caregivers. The
new Born Learning model, Healthy Environment, seeks to makean even greater impact to ensure more children live and develop
in healthy environments.
STRENGTHENING COMMUNITIES AND IMPROVING LIVES

We have always believed in the importance of a healthy, safe
and clean home. Our partnership with Habitat for Humanity
shows just how true that really is. Habitat envisions a world
where everyone has a decent place to live. For more than 10
years, we have supported this vision, through our Company andthousands of P&Gers who have lent their expertise, leadershipand effort to help provide safe and affordable homes to thosein need of decent shelter.

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COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONBUILDING A BET TER FUTURE

In order to help underprivileged children in rural andunderdeveloped areas have better basic education facilities,
we started supporting Project Hope in 1996. Project Hope isby far the largest and most influential charity program in China.
In 20 years, we have helped renovate more than 200 schools,
benefitting more than 300,000 children, enabling them toimprove their lives through education. Also, the program has
now evolved from just improving school facilities to providing
children with a holistic education to include arts, sports, music
and drama.

GENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

11COMMUNIT Y IMPAC T

Corporate Programs
CHILDREN’S SAFE DRINKING WATER

Nearly one billion people do not have access to clean drinking
water. P&G Purifier of Water packets pack the power of awater treatment facility into a small packet. A single sachet
can purify 10 liters of water, killing bacteria and viruses, andremoving parasites, arsenic and dirt — all in 30 minutes.
Clean water has the power to improve health, educationand economic opportunity for children and families aroundthe world. The P&G Children’s Safe Drinking Water Program
has delivered more than 10 billion liters of clean water in 85
countries through the help of our more than 150 partners.
This milestone puts us well on track to reach our goal of
15 billion liters by 2020.

INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT Y

Americas
Argentina
BrazilChile
Colombia
Costa Rica
Dominica
Dominican Republic
EcuadorEl Salvador
Guatemala
GuyanaHaiti
Honduras
MexicoNicaragua
PanamaPeru
St. Lucia
Venezuela

AfricaAngolaBenin
Botswana
Burkina Faso
BurundiCameroon
Chad
Cote d’Ivoire
Democratic Republicof Congo
Djibouti
Ethiopia
Ghana
Guinea-Bissau
Kenya
LesothoLiberia
Madagascar
MalawiMali
Mauritania
MoroccoMozambique
Namibia
Niger
Nigeria
Republic of Congo
RwandaSenegalSierra Leone
SomaliaSouth Africa
South Sudan
Sudan

COMMUNIT Y IMPAC T

Swaziland
Tanzania
Tunisia
UgandaZambiaZimbabwe
Europe /Asia
Afghanistan
Albania
Bangladesh
Cambodia
China
East Timor
India
Indonesia
Iran
Iraq
Laos
Lebanon
Malaysia
Maldives
Myanmar
Nepal
North Korea
PakistanPapua New Guinea
Philippines
Romania
Sri Lanka
Syria
Tajikistan
ThailandTurkeyVietnam

DIVERSIT Y & INCLUSIONGENDER EQUALIT Y

P&G Purifier of Water packets
have helped children & families in

85 countries

ENVIRONMENTAL SUSTAINABILIT Y

12COMMUNIT Y IMPAC T

Corporate Programs
DISASTER RELIEF EFFORTS

HABITAT FOR HUMANIT Y PARTNERSHIPAt P&G, we care deeply about the communities we live andwork in, and are committed to helping them thrive throughour brands and our people wherever we can. In the aftermathof large-scale natural disasters, P&G helps to bring a senseof normalcy and comfort through our products like Pampers,
Pantene, Gillette and Tide. We’ve worked with national andinternational disaster relief partner organizations during morethan 25 disasters this year alone.

We have always understood that improving lives starts in thehome. Our partnership with Habitat for Humanity shows howtrue that really is. This year, hundreds of employees volunteered
their time to build, repair or clean homes in Brazil, Canada,
the United States, Hungary and multiple other countries.
Throughout the world, the goal was the same — help families
realize their dreams of homeownership or improve the places
they already call home. In 2016, this meant:To aid the critical need for food, shelter and other necessities,
we’ve provided more than $2 million in monetary grantsupport to our long-standing global emergency relief partnerorganizations such as AmeriCares, American Red Cross, CARE,
Direct Relief, GlobalMedic, International Federation of Red
Cross and Red Crescent Societies, International Medical Corps,
Matthew 25: Ministries, Population Services International, Save
the Children, and World Vision.

• In Brazil, volunteers helped 12 low-income families
improve their housing conditions through basic home
repair instructions and subsidized microloans. In addition,
the P&G Sales Team raised $2,000 for Habitat Brazil to help
one more family than originally expected with much-neededhome repairs.

In addition, P&G employees have volunteered their time andtalents assisting in the procurement of products, writing notesof encouragement, and packing kits filled with P&G health andhygiene products.

• In Singapore, P&G employees cleaned homes to assist
elderly homeowners or those with disabilities.

• In Canada, volunteers helped construct nine townhomes
for families in Toronto’s East End neighborhood.

hundreds of
employees

volunteered to build, repair
and clean homes

INTRODUC TION

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COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

13COMMUNIT Y IMPAC T

Brand Programs
PAMPERS UNICEFDAWN WILDLIFE PROGR AM

Even though neonatal tetanus is easily preventable with asimple vaccine, about 49,000 babies still die every year. That’s
one newborn fatality every 11 minutes. Pampers supports
UNICEF in their effort to eliminate neonatal tetanus in EVERY
country. Since the start of the campaign, Pampers has helped
UNICEF eliminate neonatal tetanus in 19 countries. We are now
half way towards achieving our goal of eliminating this disease
from the world.

Cleanup from an oil spill is long, labor-intensive work. Safely
removing oil from bird feathers, animal fur and marine wildlife
requires a gentle touch and powerful, yet safe cleansers. Dawn
dishwashing liquid has been the answer for animal rescuers
since the mid-1980s because it removes tough grease while
being gentle on animals’ delicate skin and feathers. Our Dawn
Wildlife Program partners with International Bird Rescue andthe Marine Mammal Center to give volunteers the cleaning help
they need. In all, 100,000 donated bottles have helped save
75,000 wild animals from oil contamination.

TIDE LOADS OF HOPE

After a flood or other natural disaster, something as simple asclean clothes is a small but important step toward recovery.
Tide Loads of Hope provides free laundry service to help victims
find some normalcy in a state of chaos. Since 2005, this service
has helped more than 45,000 families and, with the addition of
the Tide Loads of Hope Clothing Drive, has a goal for more thandoubling that in the next decade.

100,000

donated bottles of Dawn
have helped save
75,000 animals

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COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

14COMMUNIT Y IMPAC T

Regional Highlights
L ATIN AMERIC A

120
homes

500
peoplesince 2014

safe living

built/improved

trained in

Having a Place to Call Home
Josefa is two years old and hasn’t left thehospital — because she didn’t have an adequate
home to go to. Thanks to our work with Habitatfor Humanity in Chile, now she can and is readyto. 40 P&G volunteers worked more than 180
hours to refurbish her house and transition it
into a welcoming home.
Josefa’s story is just one of many in Latin America.
P&G teams have built or improved more than
120 homes in the region since 2014. And we domore than build homes — we help families thrivein them. With “healthy housing” training,educational materials and workshops, 500
people learned how to keep their new homehealthy and safe.
Watch Josefa’s story

INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT Y

Success in school sometimes starts before day one. Prepping
pre-school-age children with the basics — before they startschool — can make all the difference. We support Born
Learning, a United Way education program for children
ages six and under. Since 2008, 100,000 children in 11
countries have benefited from early exposure to safe andhealthy learning environments.

We’ve helped

250,000 people
affected by morethan 10 disasters
in Latin America

Numbers Across the Region:• Delivered more than 550 million liters of clean waterto 16 countries through P&G Children’s Safe Drinking Water• Aided 250,000 people affected by more than 10 disasters
and emergencies

We’ve helped
renovate more than

200 schools

GRE ATER CHINA

In rural China, local schools are often miles away — notreachable for many children. We started supporting Project
Hope in 1996 to improve access to much-needed education.
The numbers truly show exponential progress. In 20 years, we
helped renovate more than 200 schools, benefiting more than
300,000 children with a better school environment. Together,
we are bringing a better future within reach.
Six minutes is all it takes to screen for cervical or breast cancer.
Yet many women in Taiwan did not grasp the importanceof regular screenings. Thanks in part to our “6 Minutes To
Protect a Life” campaign, we’ve helped improve women’s
health since 1994. In fact, the “six minute” message has 98%
awareness in Taiwan. Now, more than 80% of cervical andbreast cancer cases are diagnosed early, and cervical cancer
death rates have dropped 65%.

COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSION

in rural China

ASIA PACIFIC

Our community efforts in Singapore are wide and varied.
Employee volunteers clean homes, build schools and sanitation
facilities, and, through our new Fingerprints initiative, use theirstrategic and organizational skills to consult with charities andsocial organizations. Our Beyond Borders program coordinates
our community activity throughout the region. We partner with
Habitat for Humanity, Save the Children, Special Olympics, UN
Women, World Vision and others to touch underprivileged lives
in as many ways as possible.

GENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

15

COMMUNIT Y IMPAC T

Regional Highlights
EUROPEINDIA , MIDDLE E AST, AFRIC A

Europe is home to a wide variety of cultures and countless
traditions. But need knows no borders. In difficult living
conditions, everyday products are important essentials.
We share personal care and household products to help
restore a bit of confidence with the comforts of home,health and hygiene.

In Spain, our new “builders of the future” program inpartnership with Aldeas Infantiles program, is a chance for
employees to be directly involved by volunteering to deliver
much-needed products to families in need. Last year, ouremployees also volunteered to organize workshops aiming
to improve the confidence in teenagers.

Young girls in Northwest Africa may live far from their rural
homes — and their families — while in school. Learn for a
Better Future gives these girls a more-comfortable and safer
place to live and learn. To launch this program and empower
those in need, we joined with the Ministry of Education, RotaryInternational and the Food Bank.

In the UK, our product donations have reached about 2,000
charities and volunteer groups through In Kind Direct,a charity which distributes to those in need.

In Hungary, Poland and Romania, we partnered with Habitatfor Humanity to help provide the comforts of home by building
and cleaning houses for underprivileged families. In total, 17
house units were built and renovated.

Our goal is to help 60,000 Nigerian girls gain vocational andliteracy skills. But since Always and UNESCO partnered in2014, it has actually proved to be too low. The project is so
successful, we now hope to reach 110,000 girls.

In Switzerland, we partner with Partage, a Geneva food bankthat supplies all local charities and official shelters.
In Greece, we help the Municipality of Athens provide housing
and essentials to homeless families, easing the journey fromsevere conditions to self-sufficiency.
In Germany and Austria, we supply the largest number of newly
arriving refugees with vital products through Hand in Hand
for Refugees. This program also builds on strong employee
engagement in our communities, helping to integrate refugees
into society and the labor market..

Imagine, nearly 1,000 P&G employees taking a full work day tovolunteer with social or environmental causes. On Solidarity
Day 2015, that’s exactly what happened in France. The
team conceived Solidarity Day in 2009 as a show of support
for community efforts. Each year, we organize a full day ofvolunteers dedicated to giving back. Not only was this year’s
turnout a new record, but we also recently expanded theconcept to hold Solidarity Days in the Netherlands and Belgium.

We’re supplying
newly arriving

refugeesin Germany and Austria
with vital products

In Turkey, we partner with Red Crescent to supply the large
number of refugees with essential hygiene products.

In Eastern Europe and Central Asia, we created a newpartnership platform. P&G Care to Every Home coordinates allof our community and donation programs in the area, working
with SOS Children’s Villages, UNICEF, International Federationof Red Cross and Red Crescent Societies, and food banks.

We’re aiming to reach

110,000 girls

through our Always
and UNESCO partnershipin Nigeria

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Regional Highlights
NORTH AMERIC A

Feeding America does much, much more than the nameimplies. North America’s leading hunger relief charity not only
distributes food, but also household essentials, through anationwide network of 200 food banks and 61,000 agencies.
As a long-term partner, P&G has been providing basic essential
products like Crest, Gillette, Charmin and Pantene to help
families who are in need of non-food items. In just two years,
Pampers has donated 15 million diapers and 10 million baby
wipes to help families care for their youngest members. P&G
has also helped support Feeding America’s School Pantry and
BackPack programs for kids, and partnered together on brandcampaigns such as the Crest Healthier Smiles Project.
As Canada welcomed 25,000 Syrian refugees over the last year,
P&G was there to help with some home essentials. In donating
more than 17,000 products to nearly 7,000 refugees, we wereable to help them feel a little more settled and comfortable
after a difficult journey.

Watch a packing event forfamilies settling in Vancouver

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E THICS & CORPOR ATE RESPONSIBILIT YThe United Way has been improving lives in communities
around the world to advance the common good. Sounds verymuch like our own “Touching Lives, Improving Life.” No wonder
our partnership with United Way is among our longest. It’s ourchance to directly support the communities where we live
and work.

+

In Cincinnati, P&G and its employees donated more than $10
million to the United Way’s annual campaign, making us thelargest local donor.
In Canada, our employees’ generous spirit is just as strong. We
were the first packaged goods company in the nation to donate$1 million in a year — and have bested that amount every year
for the past 16 years.
P&G is the largest contributor to The Cincinnati Center City
Development Corporation, or 3CDC, a nonprofit company
designed to strengthen the city by revitalizing districts in the
downtown area. Fourteen percent of 3CDC’s budget comesfrom corporate sponsors, and P&G is the largest contributor.
3CDC has initiated $920 million in total real estate projects since2003. This has resulted in 144 historic buildings restored, andthe construction of 50 new buildings, 679 apartments, 421
condominiums, 13 townhomes, 156 hotel rooms, 320 shelter
beds, 852,924 square feet of commercial space, and 3,553
parking spaces.

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Pampers has donated15 million

diapers and 10 million
baby wipes in two years

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Employee Well-Being
P&G Vibrant Living2016 was quite a milestone for Vibrant Living. After
five years, our presence is as strong as ever, covering
198 P&G sites across 55 countries. But we felt we
could do more. This year, we expanded our vision
to move beyond health. Our new vision: “Enablepeak performance by inspiring meaningful, happy,
healthy lives.”
To fulfill this vision, Vibrant Living helps support employees
in three important areas:• “Meaningful” Heart — Feeling proud to be part of P&G andconnecting with others who share similar interests andpassion to bring out our best.
• “Happy” Mind — Enriching our overall well-being, building
resilience and strengthening relationships to enjoy thebest in life.
• “Healthy” Body — Optimizing our physical strength andenergy to meet everyday challenges and enjoy an active
lifestyle. That’s the core of Vibrant Living.

HIGHLIGHTS OF OUR PROGRESS

Positive P&G Employee survey trends
Participation in Vibrant Living is growing quickly and steadily;
81% took part in events, activities and programs, up
dramatically from 56% in 2011. Employees who participate in
Vibrant Living activities average 17 percentage points higher in
Personal Well-Being than those who do not. Overall Personal
Well-Being scores improved 5 points over the last five years.

Vibrant Living
is present in

55 countries

Global Vibrant Living Awareness Day
In April, 66% of our sites took part in this celebration aroundthe world. The theme for our third annual event was “Vibrant
Living, Better Together!”
A workplace culture of health and well-being• Our Vibrant Living Site Certification program continues toexpand, with 96 certified sites that support the health andwell-being of our employees.

Our global online
assessment is available in

30+ languages
for 100% of employees• With the help of 320 Vibrant Living Health Coaches andChampions throughout the world, employees can connect
to Vibrant Living resources they need most.
• Our global online wellness assessment is now available to100% of employees in over 30 languages.
• Our WorkLife Solutions Program expanded to reach morethan 90% of employees worldwide, with a high utilization
rate of more than 10%.

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Employee Well-Being
Global Medical
We touch and improve the lives of our employees withfocused delivery of our five Global Medical priorities.
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 EAPs)
The P&G Medical vision “Healthy People, Healthy Business”
reflects the importance of the wellness, productivity andinnovativeness of our employees. The P&G global Employee
Health and Wellness Policy ensures 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 of occupational
health assurance programs and services• Comprehensive and effective emergency care for our
employees, onsite contractors and visitors at all our facilities• Compliance with related laws and regulations, and sharing
this expectation with all of our business partners

Our programs are making a difference. Our 162 P&G HealthServices/Vibrant Living Health Centers in 42 countries hadover 322,000 employee visits in the past fiscal year. Based on
employee feedback, 96% of visits received a favorable rating.
Our annual ratio of Health Center visits to total P&G employees
covered by onsite occupational health services remains at
a similar level. Many of these employee visits are proactive,
including use of preventive health services such as travel healthconsultations, seasonal influenza immunizations, and personal
health and wellness consultations.
Employees who used health services or on-site health programs
reported better personal well-being scores of 13 percentage
points or higher on the 2016 P&G Employee Survey. P&G Survey
results for the last five years tell a remarkably consistent story of
double-digit well-being improvement.
We ensure consistent global delivery of high-quality healthsystems via our Health Systems Key Elements (HSKE) site audit
process. HSKE defines the corporate governance, country
legal, and clinical governance standards and requirements forour health systems worldwide. We review the HSKE program
regularly to ensure the requirements stay current with legal,
technical and policy developments. During this past year, weupdated guidance on medical management of polyacrylatematerials, medical surveillance for 3D printer metal exposures,and medical review of all new applicants.

• A culture of health through quality health services andVibrant Living offerings that support employees in protecting
and promoting their health• WorkLife Solutions and Employee Assistance Programs (EAPs)
to support employees and their families

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19Diversity& Inclusion

Everyone Valued,
Everyone Included,
Everyone Performingat Their Peak™

OVERVIEWGET TING THE FULL VALUEOF OUR DIVERSIT Y
BUILDING AN INCLUSIVECULTURESTEPPING UP INSIDE ANDOUTSIDE OUR WALLSGIVING A VOICE TO ISSUESTHAT AFFECT SOCIET Y
BRINGING OUT THE BEST IN
EACH OTHER, EVERY DAY
STRENGTHENING OUR LEGACY

There are more than145

nationalities represented
in our global workforce

We’ve spent more than

$2 billion
a year with diverse
suppliers

20Diversity & Inclusion Overview
We aspire to be as diverse as the people who use our products. The more we reflect
the diversity of our consumers, the better equipped we are to understand and serve them.
To realize the full power of diversity, our culture of inclusion values every employee’s talents.
We strive each day for every P&Ger to be valued, included and able to perform at their peak.
We win when everyone brings their unique self to work, when we bring out the bestin each other, when every talent is used and every voice is heard. This is the powerof diversity and inclusion.

Everyone Valued,
Everyone Included,
Everyone Performingat Their Peak™

“Everyone Valued, Everyone Included, Everyone Performing at Their Peak is P&G’s motto
for Diversity & Inclusion, but it is not a slogan for us. It is something that we truly andfundamentally live by. We are trying to solve problems for consumers that no one hassolved before. This requires leveraging diversity and inclusion — being respectful of
everyone and valuing different backgrounds, cultures, working and thinking styles,
passions, and points of view. This is what Diversity & Inclusion is for us at P&G and
we see it as an undeniable way to win.”— William P. Gipson, Chief Diversity Officer

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Getting the Full Value of Our Diversity
Our employees are the heartbeat of diversity at P&G. We have talented leaders and role models who challengethemselves and their teams to look differently at the problem to be solved or the improvement needed, recognizingthat a diverse team with diverse vantage points can better tackle a challenge than a homogeneous team, every time.
To nurture this inclusive behavior, each year we recognize individuals and teams for their leadership, passion and positive
impact on the Company’s culture. This year, more than 200 nominations were submitted for the Company’s annual
Diversity & Inclusion Awards. Nine winners were selected in four areas: Innovation, Value Creation, Inclusion and Inspirational
Leadership. The award-winning individuals and teams tapped into our diversity to turn consumer insights into action, tounleash the power of teams, to mirror the consumers we serve, to increase awareness and acceptance of LGBT employees,
and to ensure a diverse pipeline of recruits from around the world. These awards strengthen our pride, build community
and inspire courageous, breakthrough leadership year after year.

2016 Global Diversity & Inclusion Award Winners
INNOVATION

Turning Local Insights Into Action (IMEA) We win as a teamwhen diverse talents join forces to gain insights from across theglobe. The work of the Global High Frequency Store Team isnow being used globally to enable our brands to win in-market.
We are now better equipped to know how best to shelve,
which point-of-sale materials to use, what to avoid and how
to spend in the high frequency store environment.
Watch the Global High Frequency
Store Team’s VideoINTRODUC TION

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Nurturing Innovation Every Day (Asia Pacific) Quality is an
integral part of everyone’s work at the Singapore Innovation
Center — not an add-on. Everyone is accountable for consumer
delight and SgIC is on its way to becoming a model site for
P&G Innovation Centers around the world.

Watch the Singapore Innovation Center’s VideoCOMMUNIT Y IMPAC T

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Getting the Full Value of Our Diversity
VALUE CRE ATIONCULTURE OF INCLUSION

One Extraordinary Team, Delivering Extraordinary Results(Europe & IMEA) This “Extraordinary Team” knows that the key
to winning performance is building and unleashing the powerof people. New core principles have been adopted by morethan 80 of our Product Supply organizations across the region
to shape an inclusive culture and work environment in a highly
complex region.

Leading with Compassion and Courage (North America)
This team is creating an environment of awareness andacceptance through a new support network for LGBT
employees at our North America St. Louis plant.

Watch the Product Supply Video

Keeping Quality Through Collaboration (Latin America)
The Latin America Paper Legacy Team reminds us that great
opportunities are found in crisis — and anything can be donewith an inclusive spirit. Their commitment to diverse thinking
and inclusion of new ideas started on day one. Within only
four months, new designs with the potential to save nearly $2
million in material costs were consumer tested and modeled.
This led to record-breaking savings throughout the Latin
American market.
Watch the Latin America
Paper Legacy Team’s VideoINTRODUC TION

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Watch the St. Louis Plant’s Video

Creating a More Diverse Organization (IMEA) Two years
ago, the workforce of P&G Israel was entirely secular Jewish.
This did not reflect Israel’s population, which includes Orthodox
Jewish and Arab-Israeli communities. To better mirror the
population, Keren Kohl, Israel Human Resources Manager, andNaama Giladi, Israel Corporate Communications, implemented
a diversity program that focuses on recruiting, culture andretention. Today, P&G Israel is a more diverse organization
because of this work.

DIVERSIT Y & INCLUSION

200

D&I Award
nominees

Watch P&G Israel’s VideoCOMMUNIT Y IMPAC T

This year, there
were more than

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Getting the Full Value of Our Diversity
INSPIR ATIONAL LE ADERSHIP

Growing Competitive Leaders for the World Ed Hunter,
Vice President, Product Supply, sees potential in everyone andhas played a personal role in embracing innovation inspired bydiverse organizations. Throughout his career, Ed has proventhat when all employees are included and valued, people will
perform at their best. Most recently, Ed knew that the Asia PS
organization could better serve their market if their leadershipteam better represented consumers. This realization inspired
Ed to set ambitious goals to hire, develop and challenge more
Asian and female leaders. He set out to create a more inclusive
environment by leading interventions across the organization
for leadership accountability, talent development and a cultureof diversity and inclusion. As of January 2016, 82% of senior
executives are Asians and 49% are female versus 68% and42%, respectively, five years ago.

Watch Ed Hunter’s VideoINTRODUC TION

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Giving Every Employee a Chance to Succeed Shelly
McNamara, Vice President, Corporate Functions and Global
Health & Grooming Human Resources, is a role model andan authentic leader who inspires others through her actions.
She shows up to work every day as her full self to ensure thateach employee has every opportunity to do the same. Shelly’s
passion for inclusion extends to all employees, as well as in
the area of LGBT, where she has made a uniquely significant
impact. She has moved people beyond words. Her sincerity,
caring attitude and storytelling ability have singlehandedly
increased LGBT understanding at a corporate level. By sharing
her personal experience, she touches hearts and minds to showwhat it is like to be excluded and how to talk about LGBT issues.
Her efforts have successfully created important understanding
and necessary conversations across the Company.

Providing an Essential Voice Andrea Wilkerson, Associate
Director, Consumer & Market Knowledge, NA Grocery andShopper Insights, has been successful in building community
across disparate groups, whether in multifunctional teams
within P&G or across various stakeholders in Cincinnati. She
has repeatedly demonstrated the ability to engage broadly
to build inclusion, inspire creativity to develop great plans,
make the complex simple and then drive robust execution.
A long-time champion of African Ancestry talent recruitment
and development, Andrea is involved with the African Ancestry
Leadership Network and is co-leader of the Cincinnati Music
Festival, while also supporting Company programs like “MyBlack is Beautiful” and “Grow Africa.” At every step, she pushes
for new recruitment and development approaches and helps
leadership clearly hear the perspective of African Ancestry
employees. Her leadership is unmatched when it comesto the impact she has made on our employees, businessand community.

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Building an Inclusive Culture
We are building a supportive environment and inclusive culture so everyone at P&G can reach
their full potential. We hire talented women and men equally at entry level. Women represent
almost half of our management roles and about one-third of our senior leadership. But we know
we can do better — our talent pipeline is as important as our innovation pipeline. We are committed
to achieving gender balance at all levels of the Company while continuing to make sustained progress
across our diverse organization.

CORPOR ATE WOMEN’S LE ADERSHIP TE AM

INTERNATIONAL WOMEN’S DAY MEETING HIGHLIGHTS:

Celebrating women and honoring them is not something wedo once a year; it is something we do every day. On this team,
women and men from every region, function and business
unit work together to build stronger, more creative and more
effective leadership across our businesses. In March, the groupcelebrated International Women’s Day with a panel of P&G
senior leaders and special guests speaking about unconscious
bias. We also hosted Geena Davis, founder of the Geena Davis
Institute on Gender in the Media.

“What message are we sending to boys and girls at a very
vulnerable age if female characters are one dimensional, sidelined, stereotyped, hyper sexualized or simply not there at all?”—G eena Davis, Academy Award-winning actor, founderof the Geena Davis Institute on Genderin the Media“The thing about unconscious bias is it’s unconscious; you
don’t know it exists… What you have to do is make it
conscious… We can’t gloss over it. You’ve got to dig a little
deeper if you’re going to address it.”— Marc Pritchard, Chief Brand Officer“A number of women played a role in my development andpromotion, but two of the most catalytic moves I made wereenabled by the male leaders that chose me for the role… men
who didn’t know me all that well, but knew my track record
and that I deserved a chance.”—A lexandra Keith, President Global Skinand Personal Care“If you think about unconscious bias and what we need to doabout it, it actually means we have to recognize it exists andhave willingness to leverage courageous dialogue and belief
that we can make a difference to drive change rather thanlook at it as a challenge or something that can’t be solved.”—M onica Turner, Vice President, SMO Sales
North America

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Building an Inclusive Culture
FAMILY LE AVE POLICIESWe support

mothers
who work

A Story of Family Support
The Maternity Support Program offers phone support
for employees in the U.S. from an obstetrics nurse.
Expectant mothers can work with the same nurse
throughout pregnancy and up to six weeks after
delivery.
For Rachel in Corporate Function-Human Resources,
the service helped ease her first-time-mom qualms:“As a first-time mom, I didn’t know what I wasdoing! It was nice to know that, if needed, someone
was available to answer questions. My nurse wasprofessional and knowledgeable. She would checkin from time to time to see how things were going.
Since the consultation is over the phone, it’s easier
to ask questions you might be embarrassed to ask
a doctor face to face.”

A Mothers’ Room is a dedicated on-site area for
pregnant women and working moms who wish tocontinue breast-feeding. Rachel was reassured to findseveral conveniently located rooms complete withdesks and computer hookups, so she could balance
her personal and professional life after returning
to work.
Rachel and her manager worked to create a flexible
schedule to support her return. She reduced thenumber of work days in a week by working extended
days. This flexibility gave her an extra day to be athome with her son: “Being able to make the best
decisions for my life, I am so much more present
and productive when I’m at work.”

Support at work means recognizing everyone has a life outsideof work. Freedom to care for a growing family is part of the
support we offer men and women at P&G. Our comprehensive
benefits and policies for maternity, paternity and adoption giveparents the time and space they need to be the best parents
they can be. In the U.S., parental leave includes 16 weeks forbirth mothers and adoptive parents, and four weeks for allother new parents. Through paid and unpaid leave, parents
can take off up to their child’s entire first year. We also havecommitted to significantly upgrade our leave benefits inmany other countries this coming year. As employees expand
their families, it is one way we help them have an amazing
experience.
FLEX@WORK

We recognize the many demands placed on our employees tolive a full life while balancing work responsibilities – especiallyin today’s real-time, results-driven business environment. Our
flex@work culture aims to improve business results by meetingthe varying needs of the individual. The flexibility we provide
enables many of our employees to flex their start and finish
times in the workday, work from home, compress their work
week or even work a reduced schedule. And we continue towork toward creative solutions to enable flexible arrangements
at our plants and other process-driven sites. We also realize
employees’ needs change over time, so employees can partnerwith their manager on options to dial their flexibility up or down
and pace their careers based on life stage needs.

Rachel also took advantage of two other company
benefits when she returned to work: a Mothers’
Room and flexible scheduling.

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Building an Inclusive Culture
UNLE ASHING OUR TALENT

We are nurturing a highly inclusive environment to ensure
all employees can achieve their full potential and operate
at their peak.
To build inclusive leadership skills throughout the Company,
we invest in a number of training and development initiatives
for senior leaders and managers.
Staff to Win: P&G has a long history of growing great leaders.
We will continue that, but with a more intentional and systemic
focus on building the mastery and diversity required to win in
our unique categories and geographies. Staff to Win (S2W) isa renewed talent strategy with the stated objective to “build apipeline of outstanding, diverse talent that delivers outstanding
business results.” We are more overtly making business growth
the primary outcome of talent management and are clearly
defining the success measures for a diverse pipeline. The
guiding principle behind S2W is having the right people on
the team — those with the depth of mastery and experience
required by the business. We will better balance the need forboth mastery and depth (within industry and business), andappropriate breadth of experiences. We will staff more basedon strengths and expertise. We will hold ourselves accountable
for making progress on diversity across the talent pipeline.
With a longer-term outlook, supported by predictive planning
tools, we will proactively staff people based on their unique setof strengths. By staffing people in roles that build on existingknowledge and expertise, we will increase the mastery acrossour business and reduce the amount of talent churn. S2W is thestart to developing the next generation of leaders, ready to win
for decades to come.

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Intentionally Inclusive Leadership Training: This year, nearly
800 senior business leaders across the globe explored how
inclusion helps them unleash the talent in their organization.
They discovered their proficiency at being inclusive, how to
identify and overcome bias, and left with a courageous plan tocreate an environment where people are secure to contributeas themselves.
Athena in Action™: Athena, the Greek goddess of wisdom,courage, strength and inspiration is the namesake for thiswomen’s leadership program. The program encourages
participants to own their voice and power to help others andthemselves succeed. That is why 100% of participants would
recommend the program to a colleague. Our women leaders
are at their best when they are able to leverage their uniquely
female strengths.
Catalyst’s MARC™ (Men Advocating Real Change):
MARC is a community committed to achieving gender equality
in the workplace through the perspective and support of men.
The focus of MARC’s content and programming is on thebenefit of equality for all employees, regardless of gender, andstrategies for effective partnership between men and womenin creating inclusion.
Lean In Circles: “Leaning in” is about helping women unleash
their full potential. Lean In Circles provide a forum for womento get peer-to-peer support, and to tackle business and career
challenges and opportunities in a safe environment. P&G is
the largest sponsor of Lean In, with more than 4,000 womenparticipating around the world.

COMMUNIT Y IMPAC T

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More than

4,000

P&Gers are
involved with
Lean In

Lean In Circles
When P&G became an early sponsor of Lean In,
Bonnie Curtis, Vice President, Product Supply,
decided to create and try out a Circle before
deploying the concept across the Company. She
expected the team to meet for three months,
make a recommendation for the program andmove on. But, as she said, “by the second meeting,
we were in this for the long haul. Despite our
tenure with the Company and our wide networkof supporters, we found that the Lean In Circle
provided some extra magic. Conversations weretotally confidential. We talked real issues we eachwere facing and shared our hopes and fears. We
have helped each other move to new roles, deal
with adversity and follow our passions. We are all
lifetime supporters of Lean In.”GENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

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DIVERSIT Y & INCLUSION

Stepping Up Inside and Outside Our Walls
African Ancestry buying power is expected to reach $1.2 trillion in 2016, and $1.4 trillion by 2020.* Winningwith these consumers is critical; it is integrated into who we are and how we go to market. We also have a longtrack record of hiring outstanding African Ancestry talent, and we want to keep that talent at P&G. We are
addressing opportunities and investing in purposeful plans for hiring, retaining and developing AA talent to
the executive level. We want every AA employee to feel valued, trusted and supported with the relationships,
capabilities and opportunities they need to achieve their career success.

MY BL ACK IS BE AUTIFULPANTENE GOLD SERIESWith 2.6 million members, My Black is Beautiful is the largest
online community of black women. While challenging society’s
standards of beauty, MBIB celebrates the diverse and collective
beauty of black women, and encourages black women
everywhere to act as catalysts in their communities to redefine
these standards. This year, My Black is Beautiful kicked off its
10-year anniversary at the Essence Festival in New Orleans.
Interactive and educational experiences, combined withengaging panel discussions, inspired visitors to embrace
their best and beautiful selves.

For African Ancestry women, caring for their hair is part oftheir lifestyle and a reflection of who they are; however,they struggle with finding the right products for their hair
type. Pantene’s Gold Series Collection is a breakthrough line
designed to provide strength and moisture for relaxed, naturalor transitioning African Ancestry hair. The line was co-createdwith African Ancestry scientists, stylists and dermatologists
who understand the unique needs of textured hair. The newtechnology targets and penetrates damaged areas of thehair, and strengthens the hair structure for less breakage,to give women the most beautiful, healthy hair in any lookthey choose.

* http://www.terry.uga.edu/news/releases/asians-hispanics-driving-u.s.economy-forward-according-to-uga-study

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Giving a Voice to Issues that Affect Society
P&G and our brands are known and trusted worldwide. This trust translates into influence when
we use our voice to address or start conversations about issues that affect society, such as biases
that prevent us from understanding and supporting one another.

U.S. PAR ALYMPICS TE AM

SK-II CHANGE DESTINYHUMAN RIGHTS C AMPAIGN’S BUSINESS COALITION

Through 10 surgeries and no permanent success, Lex Gillette
lost his eyesight. But he never lost his mother’s words: “It does
not matter what anyone says. You decide what you can doand no one else.” Lex most definitely did decide. In 2016, hecompeted in his fourth Paralympic Games for Team USA as a
track and field athlete. This time, he had his P&G family behindhim. Sponsored by Tide, Lex came home with his fourth career
medal, a silver in long jump. Lex’s mother tells his inspiringstory in “Raising an Olympian,” a P&G video aired with closed
captioning and audio descriptions.

SK-II’s #ChangeDestiny campaign inspires and empowers
women to shape their own destiny. Enjoy these diverse stories
of women who overcame challenges and barriers that werepreventing them from achieving their dreams and goals— stories of perseverance, fearlessness, strength andself-fulfillment.

FOR GLOBAL WORKPL ACE FAIRNESSWatch Lex’s Raising an Olympian video

Our deep involvement in this international event includes a$200,000 donation to the USOC Paralympic organization, andsupporting team athletes and their families during the Games.
We also sponsored swimmer Mallory Weggemann (Head andShoulders) and paratriathloner Melissa Stockwell (Military
Channel athlete) in Rio this year. We remain inspired by thedetermination and strength of these amazing athletes.

• Lin Ching Lan, a deaf Taiwanese dancer, rejected limitations
and forged a successful career.
• Sha struggled to show the world her true identity and has
encouraged people to follow their dream and true self.

P&G is an inaugural member of the HRC’s Business Coalition
for Global Workplace Fairness. Our core values as a Company
include treating everyone with respect. We have a strong
non-discrimination policy and have zero tolerance for unlawful
discrimination. The coalition advocates for all employees,
regardless of race, religion, gender, sexuality, age or disability.
We respect everyone’s right to be who they are, and want all
employees to feel safe, included and able to bring their wholeselves to work.

• Sayaka Osakabe founded the Matahara Net support groupand became an internationally recognized advocate forwomen’s rights in the workplace.
• Sun Li, a Chinese actress, and famous mom idol in China,
inspired women to follow their heart and let go of what
others want them to be.

REJECTING LIMITATIONS WITH LIN CHING L AN
SHOWING YOUR TRUE SELF WITH SHAADVOCATING WOMEN’S RIGHTS
WITH SAYAK A OSAK ABE
FOLLOWING YOUR HEART WITH SUN LI

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Bringing Out the Best in Each Other, Every Day
Inclusion comes down to the everyday choices and actions of individuals. When we unite to bringout the best in each other, when we are open to the insights and innovation that each of us brings
to the workplace every day, when our passions drive the work that we do, we have the power
to be unstoppable.

Diversity & Inclusion Week
Our annual Diversity & Inclusion Week celebrates
the unique individuals that we all are and encourages
us to come together to solve our Company’s biggest
challenges. The events and activities that takeplace during this week are a source of inspirationand learning.
EUROPE• GABLE Allies delivered a program on “How to be an Effective
Ally.” The training was developed and rolled out to help
raise awareness of LGBT employment challenges. Interactive
discussions were conducted with 300+ employees acrossP&G sites in UK and Germany with leadership from ourEurope Human Resources and Diversity & Inclusion Network.
• (Germany) P&G Germany organized “Labels do matter!”workshops meant to understand the importance ofovercoming stereotypes in order to enable an inclusive
culture. Dr. Paula-Irene Villa, Professor at LudwigMaximilians-Universität Institute for Sociology talked about
the paradox of looking at unconscious biases in order tomove beyond them.

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E THICS & CORPOR ATE RESPONSIBILIT YNORTH AMERIC A• (Geneva) The 4th annual P&G Geneva TEDx Event brought
together inspirational external and internal speakers who
provided a memorable opportunity for employees to imagine
looking at reality through different lenses and walking insomeone else’s shoes. This helped P&G Geneva become aneven more inclusive and inspiring place to work.
ASIA• (Greater China) P&G China highlighted issues faced by
women by sharing global brand campaigns on popularmessaging app WeChat. The post “P&G Salutes Womenaround the World: Every Day is Women’s Day” generated
over 11,000 views in one day.
• (Japan) P&G Japan championed diversity with eye-opening
lessons on LGBT inclusion. It also launched the first female
manager coaching program designed not only for employees
but their managers.
• (APAC: Singapore, Philippines, Indonesia, Hong Kong-Taiwan,
South Korea): P&G APAC celebrated diversity and inclusion
through a week-long campaign across Asia. This included
learning symposiums, “speed-dating lunches” and “Open
Mic Night” sponsored by P&G GABLE.

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DIVERSIT Y & INCLUSION• (Global HQ) Trudy Bourgeois, founder and CEO of the Center
for Workforce Excellence, motivated and inspired employees
to apply “creative disruption” as one way to take inclusion
to a new level. Participants were provided actionable steps
to apply on a daily basis.
• (U.S., Canada and Puerto Rico) 50 P&G sites hosted Diversity& Inclusion booths and other activities that brought morethan 10,000 employees together. Events were customized
by site and included Affinity Group displays, Inclusion
Awareness seminars and a Portrait Project celebrating
employees’ stories.
• (Global HQ) Flowers were handed out on International
Women’s Day, creating a special moment for our female
employees. In addition the Always “Like A Girl” campaign
was showcased through video and #LikeAGirl emoji
postcards.

D&I Week brought
more than

10,000employees together
across 50 North
American sites

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DIVERSIT Y & INCLUSION

Bringing Out the Best in Each Other, Every Day — D&I Week
IME A

L ATIN AMERIC A• Colleen Jay, P&G Senior Executive on loan to Catalyst, hosted
a session with her daughter, Catherine Jay, University ofRochester Early Medical Scholar, on how to build a strong
family support network. The event was scored by attendees
as 5/5.

• (Brazil) As part of International Women’s Day — more than
320 employees stopped by the cafeteria to answer thequestion, “What does it mean to be a woman? To be#LikeAGirl?” and had the chance later that day to see themessage shared with the entire organization in a powerful
jointly-created word cloud.

• (India) Hosted a “Sponsors Day” where they celebrated
life sponsors of their employees and how they helped P&G
employees perform at their peak.
• (Pakistan) The week featured innovation experiments suchas a #YourColor Inclusion Test, International Women’s Day
celebrations, and a Women Empowered Network session,
capped by our signature inclusion event — a P&G talent
show. 100% of employees participated in at least one
activity. P&G Pakistan General Manager Sami Ahmed shared,“This has been the unsurpassed highest energy event I haveattended so far in Pakistan! The energy, vigor and talent
was unequalled.”• (Costa Rica) At the first Multifunction Women’s Symposiumfor more than 200 female managers, the office wascovered with a print campaign showing the diversityof P&G women, as well as fun facts for the overall site
including representation of gender, generations, flexibility
and nationalities.
• (Mexico) Project Reach, a program that develops real job
skills by providing students with disabilities administrativelevel work experience, led the “What Makes You Feel
Included?” campaign for more than 170 employees at
the Mexico City General Offices. This included an inclusion
panel with Mexico leadership team members.

Costa Rica’s Multifunction
Women’s Symposium
hosted more than200

female managers

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Bringing Out the Best in Each Other, Every Day
Employee Affinity Groups
Employee affinity groups can often be employees’source of connection and emotional fuel. At theirmost active, they help employees feel valued,
respected and included. We enthusiastically support
three global affinity groups and five more in North
America. They are vital to leading change in the
Company — and change in perceptions. Throughresearch, cultural immersion, local events and otherinitiatives, these groups expose us all to different
perspectives and a richer experience.

What began as largely a North America-centered network for
fostering workplace equality for LGBT employees has growninto a supportive and global community, with networks in every
region of the world. These grassroots efforts have evolved into
chapters representing the diversity of our employees as well as
strong allies to support individuality and inclusion.

ASIAN PACIFIC AMERIC AN LE ADERSHIP TE AM (APALT )PEOPLE WITH DISABILITIES (PWD)

HISPANIC LE ADERSHIP TE AM (HLT )The People with Disabilities (PWD) Affinity Group is devoted toraising awareness about issues facing people with disabilities,
including supporting employees with disabled dependents.
They are also committed to serving as a change agent tofoster a more inclusive work environment for every employee,regardless of mental or physical limitations.

Global Affinity Groups
CORPOR ATE WOMEN’S LE ADERSHIP TE AM (C WLT )The Corporate Women’s Leadership Team (CWLT) is committed
to the advancement of women, helping ensure that women’s
skills and insights are well represented throughout our global
Company, and at all levels of leadership. The team continues
to be actively involved in events and programs that promotementoring, sponsorship, leadership skill development, flexibility
and increasing representation of women at all levels. CWLT
leaders also support broad-based women’s affinity networks
across all functions and regions of the Company.
GAY, ALLY, BISEXUAL, LESBIAN AND
TR ANSGENDER EMPLOYEES (GABLE)GABLE is dedicated to fostering an inclusive, supportive
global network that enables Gay, Ally, Bisexual, Lesbian andTransgender (LGBT) Employees to contribute to their fullest
potential and to bring their whole self to work every day.

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North American Affinity Groups
The African Ancestry Leadership Network (AALN) is one ofthe oldest employee groups within P&G. It is dedicated tohelping P&G achieve its vision of being the best place for
African Ancestry employees with the best brands for African
Ancestry consumers. The AALN helps the Company develop
effective action plans that drive accountability, promote
employee development and progression, recruit the best talent,and create a more inclusive environment. Beyond employee
development, the AALN provides insights about African
Ancestry consumers to enable P&G’s brands to connect withmore consumers in more parts of the world.

DIVERSIT Y & INCLUSION

The Hispanic Leadership Team (HLT) provides direction to theCompany on issues important to Hispanic communities andconsumers, and is heavily involved in recruiting to attract top
Hispanic talent. Members of our Hispanic Leadership Team were
key in P&G establishing support for the Hispanic Scholarship
Fund. P&G has partnered with the fund for more than 25 years,
motivated by an expanding number of highly qualified, collegebound students in the Hispanic community.
NATIVE AMERIC AN INDIAN NET WORKAFRIC AN ANCESTRY LE ADERSHIP NET WORK (A ALN)COMMUNIT Y IMPAC T

The Asian Pacific American Leadership Team (APALT) represents
the Asian-Pacific Americans working at every level in the
Company. The team offers opportunities for networking andis actively involved in recruiting, retaining, developing andadvancing employees of Asian-Pacific heritage.

The Native American Indian Network’s mission is to enable P&G
employees with a strong NAI cultural identity to bring theirwhole selves to work, in a way that leverages and respects the
NAI diversity of our workplace and supports the communities inwhich we live.
VETER ANS AND RESERVISTS NET WORKThe Veterans and Reservists Network, our newest affinity
network, wants to be known for attracting and retaining thehighest quality U.S. military veterans and reservists to theCompany. Their purpose is to attract and place top talent,enable fast starts through mentorship, and build a positiveenvironment through volunteering and community support.

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Bringing Out the Best in Each Other, Every Day
Expanding Our D&I Footprint
PWD

GABLE

The People With Disabilities Affinity Group (PWD) assists theCompany in delivering business results. Its focus areas include
ensuring work processes, technology and governance are inplace to drive an inclusive culture and regulatory requirements
globally; bringing insight to product, package and facility design
to more completely serve global consumers who live and workwith disabilities; and enabling the Company to be recognized
as an “Employer of Choice” by attracting, retaining, developing
and fully enabling employees that live and work with differing
abilities to achieve peak performance. The network also raises
awareness about issues facing people with disabilities. An often
overlooked issue is how employees can give their best at work
if they have a dependent at home with special needs. A pillar
within the network, Employees with Disabled Dependents,
meets monthly and shares experiences and resources withothers who are going through a similar situation.

The GABLE Affinity Group, in supporting and informing the
Lesbian, Gay, Bisexual and Transgender Community and their
Allies, enjoyed an extraordinary year. The group continued
providing programs, workshops and tools to raise awarenessand help P&G adapt policies and benefits to be more inclusive.
Pride Month remained a rallying point, with speaking events,
parades, training and celebrations around the world. The year
was truly marked by growth — growth in the P&G GABLE
network and growth in understanding.
In France and Central Europe, activity was strong. Highlights
included “How to Be a Successful Ally” training andInternational Day Against Homophobia events that built
empathy and understanding of being gay. These and othersimilar efforts are why the group has more members andallies than ever.

People With Disabilities team members are also active inthe community and made a difference this year by sharing
their knowledge and educating deaf college students onopportunities in the technology sector. P&G Systems Manager
Scott VanNice, with co-sponsorship by Guidance Software,
Ernst & Young, Bender Consulting Services and Rochester
Institute of Technology/National Technical Institute for theDeaf, created a forensic bootcamp for students at the RIT/
NTID. Twenty-three students received 32 hours of computer
forensic training designed to prepare them to meet the growing
demand for information security professionals. Students also
met with prospective employers from P&G, FTI Consulting, Ernst& Young, JP Morgan, Comcast, Prudential, Central Intelligence
Agency, Cisco, Morphick and Vigilant. Three employers madeoffers within 48 hours.

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Bringing Out the Best in Each Other, Every Day
OVERCOMING UNCONSCIOUS BIAS
FOR AN INCLUSIVE WORKPL ACE

In celebration of LGBT Pride Month, P&G’s GABLE Affinity Teamhosted a leadership panel discussion on Intentionally Inclusive
Leadership: the Role of Unconscious Bias.

Richard Cooper of the National Underground Railroad Freedom
Center said, “The way we’ve thought about racism in the pasthas been at the conscious level—but not the unconscious level.
We’ve always said good people make good decisions. Bad
people make bad decisions. But actually, good people makebad decisions.”

Speakers shared personal experiences in dealing withunconscious bias and how, as leaders, they work to breakthrough bias with themselves and their teams. They also
addressed the need for everyone to face their own biases as wework to build stronger, more diverse teams.

Marc Pritchard said that one of the most important things
we can do to overcome unconscious bias “is becoming
familiar with one another, getting to know people at a deeper
level… you’ll realize they are people just like you and then
you can really understand their strengths and weaknesses andopportunities.”

The panel featured:• John E. Pepper, former P&G CEO and Chairman of the Board;
former Chairman of the Walt Disney Company and of the
National Underground Railroad Freedom Center.
• Richard Cooper, Director of Museum Experiences, National
Underground Railroad Freedom Center and curator of a new
exhibit on bias.
• Marc Pritchard, P&G Chief Branding Officer and Sponsor of
the African Ancestry Leadership Network.
• J odi Allen, P&G VP NA Hair Care and new NA GABLE
Executive Sponsor.

INTRODUC TION

“I believe enormously in the power of diversity for this Company,”stated John Pepper ”I’ve always tried to see the other person in
myself and myself in them — and if I’m able to do that to somedegree, it’s more likely we can strike up a relationship. And
whatever value I’ve had from learning about this [unconsciousbias], it’s not come out of… principles; it’s come out ofrelationships.”

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Jodi commented, “If you spend the time to meet every
individual as the individual they are, they will be different toyou on some level. They will also be similar to you on somelevel. And then, when you can create a comfort zone with thepeople who have similarities and differences to you—and do
it with a circle of trust—you can have amazing debate that will
always end up in better solutions than what any one person
can do themselves.”

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Strengthening Our Legacy
Our journey to be the global leader of diversity and inclusion is far from over. In fact, it will never be over.
We will continue to learn and improve for generations to come. We want to have a positive impact on
our employees’ lives and careers — and on the lives and careers of our business partners’ employees.
And, we’re humbled when others tell us the impact we are having through awards and recognition.

GLOBAL SUPPLIER DIVERSIT Y NET WORK

Supplier Diversity has been a critical business strategy at P&G
for more than 40 years, and we are committed to it as a driverof value creation and continuous innovation. The Billion Dollar
Roundtable — a forum of companies that spend more than $1
billion a year with diverse suppliers — has only 22 members.
P&G has exceeded $2 billion a year nine years in a row. This is
the legacy of our global Supplier Diversity Network, which has
strengthened thousands of minority, women, military veteranand LGBT-owned businesses, and bolstered our ability toinnovate and get new products to market.
To broaden our network’s reach and impact, we launched the
P&G Community of Partners at two major supplier diversity
conferences. Working to involve all of our suppliers in supplier
diversity, we made more than 200 introductions between
majority suppliers and prospective diverse suppliers. These
connections were the start of many fruitful and ongoing
business relationships. We know when our supply network
reflects the diversity of our employees, consumers andstakeholders, our business grows and our communities thrive.

DIVERSIT Y RECRUITING AT P&G

Recognition for our partnership efforts:• Corporation of the Year, Ohio Minority Supplier Development
Council (two years in a row)
• Top Corporation for Women-Owned Businesses, Women’s
Business Enterprise National Council (two years in a row)
• Military-Friendly Supplier Diversity Program, National
Veteran-Owned Business Association (two years in a row)

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Look for us at these recruiting events• Corporation of the Year, Ohio River Valley Women’s
Business Council• Service Academy Career Conferences• Corporation of the Year, Ohio/Kentucky Construction• Consortium for Graduate Study in Management• National Society of Black Engineers• Association of Latino Professionals For America

DIVERSIT Y & INCLUSION RECOGNITION• National Black MBA Association• Working Mother 100 Best Companies (Top 20)• Society for Advancement of Chicanos/Hispanics
and Native Americans in Science• Working Mother Best Companies for Multicultural
Women (Top 5)• Society of Asian Scientists and Engineers• National Association for Female Executives Top
Companies for Executive Women• Reaching Out MBA• DiversityInc’s Top 50 Companies for Diversity (#13)• Society of Hispanic Professional Engineers• National Organization on Disability (NOD) Leading
Employer Seal

• American Indian Science and Engineering Society• Human Rights Campaign 2016 Corporate Equality
Index (100% score)

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We understand consumers because we attract, recruit, hire andretain diverse people. In fact, a culture of diversity and inclusion
is embedded into our Purpose, Values and Principles. A varietyof ethnicities, thoughts and experiences are valued at P&G
every day. It’s how we operate. It’s an environment where each
person can bring their personal best.

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DIVERSIT Y & INCLUSION• Society of Women Engineers• Annual Biomedical Research Conference for
Minority Students

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76%

GenderEquality

now consider “like a girl”
a positive expression
vs only 19% before theLike A Girl campaign

OVERVIEW
USING OUR VOICE IN
ADVERTISING AND MEDIA

Always has supplied

100,000SUPPORTING EDUCATIONFOR GIRLS AND ECONOMICOPPORTUNITIES FOR WOMENHELPING P&G WOMEN THRIVE

girls in Kenya withpuberty and hygiene
education

Ariel is urging
men in India to#ShareTheLoad

The staff at our CSDW
plant in Singapore is

55% female

36Gender Equality Overview
At P&G, we aspire to help build a better world, inside and outside of P&G — a world freefrom gender bias and a world with equal representation and an equal voice for womenand men. Because most of our consumers are women, and many of our products are
specifically for women and girls, we are in a unique position to make a positive impact.
We have deep insights into their lives, their challenges and their aspirations. Beyond the
products we create to improve their lives every day, we help them — at home, at work,in school — to live their lives free to be all they have the potential and desire to be.
We are leveraging our insights to uncover gender bias and taking actions to spark
conversations that can motivate change. We are doing this through our brands,
with our corporate voice, and with our people.

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Using Our Voice in Advertising and MediaOur brands are part of our consumers’ everyday lives. Through our brands, we often find insights
rooted in gender bias. Through the voice of our brands, we can bring these gender biases tolight in campaigns that spark conversations to change perceptions and bring about change.
As the world’s largest advertiser, we take this responsibility seriously and we are encouraging
other companies and agency partners to join in and do the same. The following brandcampaigns have been recognized as breakthrough efforts to reveal and address gender bias.

ALWAYS #LIKE AGIRLARIEL SHARE THE LOAD

Research reveals that 50% of girls have a large drop in
confidence at puberty. For more than 30 years, Always has beena brand grounded in confidence, making it the perfect platform
to rewrite the rules. One of the more insidious reasons for thedrop in girls’ confidence at their first period includes demeaningphrases, such as “like a girl.” Always set out to change that andmake “like a girl” mean amazing things. The Always #LikeAGirlcampaign has continued to address more outrageous facts.
Over the past year, we continued this campaign by addressing
the stereotypes that exist with ‘girl’ emojis, which typicallywore pink, were princesses, did their nails and fixed their hair.
And that’s about it. So we asked girls to make suggestions for
new girl-focused emojis. Young women made thousands ofsuggestions. The campaign, which launched on International
Women’s Day 2016, played a role that led Google, Facebook
and Unicode to introduce new girl-focused emojis.

In India, 70% of men believe household chores are women’swork. Consequently, two out of three children believe laundry
is a mother’s work. Ariel, our market-leading laundry detergent
brand, brought this generational bias to life. Our “Share theLoad” video encourages men to help with laundry. The video
shows a father watching his grown daughter return from work,
only to do all of the household chores while her husband
watches TV. The father comes to the realization that womenand men can “share the load.” With this campaign, Ariel ischanging conversations about the role of women and men
in society.

The #LikeAGirl campaign is making a difference. People aresharing videos, having conversations and advocating change.
More than 550 million views and many awards later, attitudes
are changing — surveys say that 76% of consumers see thephrase “Like a Girl” as a positive expression compared to 19%
before the campaign began in 2013.

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SK-II CHANGE DESTINY

Trailblazing women in Asia are challenging the traditional belief
that destiny is set at birth. Our SK-II #ChangeDestiny campaign
is showing how strong, independent women are breaking
stereotypes and pursuing their dreams.
“Marriage Market Takeover”, a powerful film, takes on a deeply
held cultural norm about marriage in China.

Ariel’s“Share the Load”
video encourages men
in India to help
with laundry

Get inspired yourself.
Watch the campaign videos:
LIKE A GIRL
GIRL EMOJISSHARE THE LOADMARRIAGE MARKET TAKEOVERCOMMUNIT Y IMPAC T

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GENDER EQUALIT Y

Supporting Education for Girls andEconomic Opportunities for Women
Through our brands, corporate programs and public policy advocacy efforts, we are working
to remove gender-biased barriers to education for girls and economic opportunities for women.
These efforts help us do good and contribute to the United Nations Sustainable Development
Goal #5 for Gender Equality.

ALWAYS KEEPING GIRLS IN SCHOOLSHIKSHAIn many parts of the world, girls don’t have puberty informationor access to sanitary pads. As a result, these girls often missschool when they are menstruating. These missed days add up,
and girls often end up dropping out of school. Over the past
10 years, the Always Keeping Girls in School program has
touched 100,000 lives by donating more than 3.5 million pads
and providing puberty education to primary school girls. In
addition, we expanded the Always/UNESCO project in Nigeria.
It is now helping 110,000 Nigerian girls through vocational
studies and basic literacy skills. The program is building
confidence and keeping girls in school so they have a betterchance to plan for their future.

Shiksha means education in Hindi. For more than 12 years,
P&G India has provided access to education for underprivilegedchildren through the Shiksha program. The program has already
impacted the lives of more than one million students and is now
expanding this impact by focusing on marginalized girls. We
are working in partnership with the government and Save theChildren to remove the gender-based barriers that prevent many
girls from attending school. By working with girls, teachers,
school management committees and parents, we are helping
improve learning environments and support quality education.
LE ARN FOR A BET TER FUTURE

To get an education, some rural adolescent girls in Northwest
Africa must move far from their families, sometimes living
in risky conditions just to continue their studies. We aresupporting these girls by helping provide a more comfortableliving and learning environment through the Learn for a Better
Future program. We are supporting this in partnership with the
Ministry of Education, Rotary International and the Food Bank.
We are supporting girls inNorthwest Africa throughLearn for a
Better Future

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Supporting Education for Girls andEconomic Opportunities for Women
CHILDREN’S SAFE DRINKING WATER

PUBLIC POLIC Y EFFORTS FOR WOMEN IN THE WORKFORCE

Our Children’s Safe Drinking Water Program provides morethan one billion liters of clean drinking water each year. Using
our P&G water purification packets, people can easily purify
water in their own homes. Beyond the health and community
impact, this program helps women and young girls who areresponsible for collecting water for their families. They spend
40 billion hours each year managing household water needs,
such as walking long distances each day to collect oftencontaminated water for their families. These hours could be
devoted to attending school and finding other economic
opportunities to improve their lives and those of their families.

In some areas of the world, women are underrepresented in theworkforce. Employment is critical to their advancement, and weengage in public policy efforts where laws and practices needto change.

Learn more about the power of clean water

Saudi Arabia: In the Kingdom of Saudi Arabia, it is rare forwomen and men to work side by side. Many women specialize
in healthcare and education, not in commercial business. We
have been on a decade-long journey to enable Saudi women
to bring their talents and insights to P&G, while respecting
local culture and values. Today, women represent 15% of the
Saudi workforce, and they receive full benefits and career
opportunities in the same work environment as their malecounterparts.
Hyderabad, India: Women were only permitted to work a
day-shift schedule at our manufacturing plant in Hyderabad,
India. Working with local policymakers, we opened up accessfor women to work any shift. For the first time in the history of
P&G India, we have more than 30% overall plant floor gender
diversity. Today, our Hyderabad facility serves as a benchmark
for gender diversity and representation in India.

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Today women

represent 15%of the Saudi workforce
at P&G

Today P&G India has about
30% overall plant floor

gender diversity

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Helping P&G Women Thrive
While we are committed to being a voice for gender equality globally, we are also committed
to achieving gender balance within P&G. We are focused on creating a supportive environment
and inclusive culture for both men and women. We are a leading company for gender
representation, but that is just a start. We talk openly and at all levels about opportunities
to do better.

OUR INITIATIVES

Throughout P&G, we are helping women thrive at every level,
including our most senior-level roles. Some of our internal
initiatives include:• Lean In Circles serve as advisors and sounding boards for
women. P&G is the largest corporate sponsor of Lean In,
with more than 4,000 women participating.

• Our Corporate Women’s Leadership Team, which includes
women and men from every region, function and business
unit is focused on driving systemic changes that create an
inclusive culture where women can be successful at P&G.
CWLT leaders also support broad-based women’s affinity
networks across all functions and regions of the Company.

• In partnership with Catalyst, the MARC (Men Advocating
Real Change) training program helps men understand andfulfill the role they can play to help achieve gender balance
inside and outside P&G.

• The Women’s Empowered Accelerator Program and Athenain Action initiatives target high-potential women acrossall functions at critical points in their careers to help themdevelop skills necessary for success in senior-level roles.
• We offer parental leave benefits in the United Statesthat include 16 weeks of paid leave for birth mothers
and adoptive parents, four weeks of paid leave for all othernew parents; and we provide the option of taking a fullyear off work during a child’s first year by combining
paid and unpaid leave. We have also enhanced maternity,
paternity and adoptive-parent benefits in many markets
around the world.

INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT Y

We also see the impact we can have on our distributors,
manufacturing sites, suppliers and retail customers.
In Singapore, a gender-balanced P&G team produces our
P&G Purifier of Water technology to provide clean water inmore than 85 countries through the non-profit Children’s Safe
Drinking Water Program. When the plant opened in 2012, it
was primarily staffed by men. Today our plant employees are
55% female. Clean water is a gender equality issue for womenand girls all around the world, and we’re proud to have equal
representation on the manufacturing team that provides thisinnovative and life-changing P&G technology.
L earn more about how we are building a supportiveand inclusive culture at P&G

COMMUNIT Y IMPAC T

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41

Environmental
Sustainability

Our Charmin products are now
FSC® and Rainforest Alliancecertified

OVERVIEW
CLIMATE CHANGE
RENEWABLE ENERGYENERGY CONSERVATIONGREENHOUSE GAS EMISSIONSLOW-ENERGY WASHINGRENEWABLE MATERIALSWe diverted

millionsof tons of wastefrom landfills

PACK AGINGRESPONSIBLE FORESTRY
WATER
WASTE
BR AND SUSTAINABILIT YSTORIES
WORKING TOGETHER
THE POWER OF P&G PEOPLE
GLOBAL MEASUREMENT& ADDITIONAL
OPER ATIONAL DATA

zero
We’re committed todeforestation by 2020

Fairy dishwashing tablets will be

phosphate free
within the year

42

Environmental Sustainability Overview
Protecting the earth is both a responsibility and a business opportunity. Our goal is tocreate brands that enable consumers to make more sustainable choices. We have integrated
sustainability into our business practices, operations, innovation, brand building and culture.

65%

plant-based
and renewable
ingredients

Using Bio-based Ingredients to Clean
Cleaning brands have always faced the samechallenge: how to be more sustainable withoutcompromising performance. Tide purclean™ is thefirst liquid laundry detergent to solve the puzzle. A
full 65% of its ingredients (certified by the USDA)
come from plants and other renewables. Yet Tide
purclean cleans as well as the original — even inenergy-saving cold water. In addition to the newingredients, Tide purclean is manufactured at a sitethat uses 100% renewable wind electricity andsends zero manufacturing waste to landfill.

INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT YGROWING OUR FORESTRY EFFORTSTE AMING UP TO PROTEC T FORESTS

Consumers can now find the Forest Stewardship Council®
and Rainforest Alliance Certified labels on packages ofCharmin paper products. These independent verifications help
consumers identify products from well-managed forests. In
fact, 100% of Charmin tissue products come from responsible
forests. Plus, for every tree we use, one is re-grown. FSC®
certification is based on one of the most stringent standards
in the world, and we are proud to make this sustainable choice.

Palm oil is a versatile crop, and we use a by-product of palm
oil called palm kernel oil in some of our Fabric and Home Careand Beauty brands. To ensure it is sourced responsibly, weare delivering our no deforestation commitments and goals
in our supply chain by 2020 with a three pillar approach —supplier management, small farmers and industry standard
influencing — based on collaboration with partners andcommunication of our programs.

WASTING NO OPPORTUNIT YINNOVATING TO DRIVE PROGRESS

Our Global Asset Recovery Purchases (GARP) team doesn’t
see trash — it sees potential. Around the world, what once
was waste is being beneficially re-used as raw materials andfeedstock for other products. Oral-B waste is finding newlife as part of innovative bricks, Head and Shoulders waste is
being converted to compost in China, and scrap from Always
is becoming part of low cost soles for shoes in India. Since our
focused beneficial reuse program began nine years ago, we
have creatively diverted millions of tons of would-be trash into
something useful (and saved about $1.6 billion in the process).

Enough phosphate to cover 270,000 soccer fields — that’s
how much will be removed when Fairy dishwashing tablets
are phosphate-free within the year. All P&G ADW capsules
even have an extra environmental benefit: with them, there
is no need to pre-rinse, thus saving about 21 billion litersof water each year, equivalent to the water in nearly 9,000
Olympic-sized swimming pools.

COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONHIT TING OUR ENERGY TARGET

This year, not only did we achieve our 2020 goal of reducing
energy use at P&G facilities by 20% per unit of production,
but we reached it four years ahead of schedule. The accelerated
progress is due in a large part to our employee engagement
program The Power of 5, showing how everyday actions canhave big impacts.

GENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

43

ENVIRONMENTAL SUSTAINABILIT Y

Overview — Long-Term Environmental Vision
We are working toward our long-term vision of:0Powering all our plants

100%

with
renewable energy

100%

Using
renewable or recycledmaterials for all products
and packaging

Designing productsthat delight consumers
while maximizing theconservation

zero

Havingconsumer and manufacturing
waste go to landfillsof resources

Being a good corporate citizen means helping reduce both our own
internal footprint and the footprint of our consumers. The following
pages provide an update on our environmental progress.
In some areas, we have exceeded our goals several years aheadof target, while in others, we are still actively working.
We have established specific 2020 short-term goals to demonstrate
we are making progress against our long-term vision.

INTRODUC TION

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ENVIRONMENTAL SUSTAINABILIT Y

Overview — 2020 Environmental Goals Progress
Reduce energy use
at P&G facilities
by 20% per unit ofproduction
by 2020

Reduce truck
transportation
kilometers by 20%
per unit of production

Reduceabsolute GHG
emissions by
30% by 2020

Ensure plants are
powered by 30%
renewable energy

Achieved 20%
since 2010

Achieved more than 25%
reduction since 2010

Reduced 10%
since 2010

Renewable energy use
is 9.6% since 2010

Implement palm oil
commitments

Have 100% of thevirgin wood fiber usedin our tissue / towel
and absorbent hygiene
products be third-party
certified by 2015

Create technologies by2020 to substitute top
petroleum-derived
raw materials withrenewable materials, as
cost and scale permit

Achieved

We have established thecapability to substitutepetroleum-derived plastic
resins and cleaning agents

CLIMATE

Ensure 70% machine
wash loads are low
energy cycles

Increased from 38%
to 61% since 2010

INTRODUC TION

We achieved our initial goalon traceability and supply
chain engagement and madesignificant progress in oursmallholder efforts

E THICS & CORPOR ATE RESPONSIBILIT Y

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ENVIRONMENTAL SUSTAINABILIT Y

Overview — 2020 Environmental Goals ProgressContinued progresson zero manufacturing
waste to landfill(ZMWTL)

Have 100% of our paper
packaging containeither recycled or
third-party-certified
virgin content by 2020

Reduce packaging by
20% per consumer use

Ensure 90% of
product packaging iseither recyclable orprograms are in place
to create the ability
to recycle it

Reduced 12.5%
since 2010

In FY 15/16, 86%
was recyclable

WASTE

55% of our manufacturing
sites have reached ZMWTL

Double use ofrecycled resin in plastic
packaging

Increased 30%
vs. 2010

INTRODUC TIONIn FY 15 /16, 98% ofmaterials surveyed met
these qualifications

Conduct pilot studies
in both the developed
and developing world
to understand how toeliminate landfilled/
dumped solid waste

COMMUNIT Y IMPAC T

Reduce water use
in manufacturing
facilities by 20% perunit of production withconservation focused onwater-stressed regions

We’ve reached 450
million as of FY 15 /16

Achieved more than
24% since 2010

WATER

We continue to advanceour Waste to Worth pilot
project in the Philippines
and are actively involvedin the Closed Loop FundE THICS & CORPOR ATE RESPONSIBILIT Y

Provide 1 billion
people with accessto water-efficient
products

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ENVIRONMENTAL SUSTAINABILIT Y

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

2016 Global Business Unit Detail1 (absolute units x 1,000)

2016

2015

2014

Baby, Feminineand Family Care

BeautyFabric and Home
Care

Grooming

Health CareOther

25,75827,99828,331

5,737

1,983

16,921

634

483

0

694

699

859

Generated Waste

640

807

1,119

216

96

216

42

31

39

Percent Recycled / Reused Waste

86%

89%

90%

89%

90%

83%

98%

89%

68%

Production (metric tons)
Product Shipped 2
Raw Materials from Recycled Sources

3

Waste (metric tons)

Disposed Waste (metric tons)
Waste Disposed

87

88

108

24.32

9.65

37.11

0.68

3.38

12.33

Solid Waste — Non-Hazardous

47

51

71

9.48

6.85

21.10

0.07

2.82

6.58

Solid Waste — Hazardous

8

4

5

4.50

0.04

2.53

0.07

0.09

0.69

23

21

20

4.55

2.39

10.45

0.41

0.37

4.90

10

11

12

5.78

0.37

3.03

0.13

0.10

0.16

Energy Consumption (gigajoules)

59,40164,134

66,18335,893

3,656

12,811

2,541

1,767

2,732

Total GHG Emissions (metric tons) 6

4,903

5,300

5,912

2,777

368

1,054

238

193

274

2,133

2,389

2,612

1,463

103

391

67

41

69

2,770

2,911

3,300

1,314

265

663

171

152

205

209

275

306

209

N /A

N /A

N /A

N /A

N /A

64,192

68,424

69,681

39,876

5,540

14,053

1,071

1,587

2,065

Effluents (excluding water)
Air Emissions

4

5

Energy and Greenhouse Gas (GHG)

Scope 1 — Direct GHG Emissions (metric tons)
Scope 2 — Indirect GHG Emissions (metric tons)
Biogenic GHG Emissions (metric tons)

7

Water (Cubic meters)
Water Consumption
1 metric ton = 1,000 kg = 2,205 lbs.

(3) Data is tracked at a corporate level.

(1)	For 2016, Baby, Feminine and Family Care includes Baby Care, Feminine Care and Family Care. Beauty includes Beauty Care, Prestige, Salon
Professional and Personal Beauty Care. Fabric and Home Care includes Fabric Care Home Care and Chemicals. Grooming includes Blades and Razors
and Devices. Health Care includes Personal Health Care and Oral Care. Other includes major offices buildings as well as technical and research
centers that support the business units, along with facilities that distribute finished product. Numbers do not include production from contract
manufacturing operations.

(4) Wastewater chemical oxygen demand (COD).
(5) Air emissions include particulates, SO2, NOX, CO and VOC.
(6) Total GHG emissions = Scope 1 + Scope 2. Scope 2 emissions calculated using a market-based method.
(7) Market-based Scope 2 GHG emissions. Note: Location-based Scope 2 emissions for 2016 were 2,923,000 metric tons.

(2) Estimated from shipment figures.

INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT Y

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ENVIRONMENTAL SUSTAINABILIT Y

Overview — Environmental Progress vs. 2010 Baseline
Although our production has increased since 2010, we have successfully decoupled that growthfrom our environmental footprint, achieving absolute reductions in waste, water, energy, and
GHG emissions. We have also achieved significant reductions on a production-adjusted basis.

GREENHOUSE GASENERGY-10%-11%

absolute-19%

production-adjusted

RENEWABLE

9.6%

WATER

-16%

absolute

absolute

-20%

-24%

production-adjusted
WASTE

production-adjusted-75%
absolute-78%

production-adjusted

INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT Y

COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

48

ENVIRONMENTAL SUSTAINABILIT Y

Climate Change
P&G is committed to taking action to address climate change.
In 2015, we collaborated with World Wildlife Fund (WWF) todevelop a new science-based goal for GHG emissions. Our
new goal of a 30% absolute reduction in Scope 1 and 2 GHG
emissions by 2020 versus 2010 is aligned with climate scienceand will help ensure that P&G is supporting global efforts toprevent temperature increases from exceeding two degrees
Celsius. To help deliver this goal, we’re striving to use 30%
renewable energy and reduce energy consumption by 20%
per unit of production by 2020.

We’re striving
to use30%

renewable energy
by 2020

L earn more about Science-Based Targets

Our goal is to
reduce energy
consumption by20%
by 2020

INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT Y

COMMUNIT Y IMPAC T

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ENVIRONMENTAL SUSTAINABILIT Y

Renewable Energy
P&G has a goal to use 30% renewable energy by 2020. In FY 15/16, we achieved 9.6%,
and have two projects underway that will nearly double our use of renewable energy.

FULL STE AM AHE AD

THE WINDS OF CHANGE

We are partnering with Constellation Energy to build a50-megawatt biomass plant at our facility in Albany, Georgia,
where we produce Charmin and Bounty. Constellation Energy
will own and operate this highly-efficient combined heat andpower site, which will produce 100% of the steam, and asignificant portion of the site’s total energy, from renewablesources. The plant’s fuel supply will come from locally available
and sustainable biomass — discarded tree tops, limbs, branches
and scrap wood from local forestry operations, crop residuals
such as pecan shells and peanut hulls, and mill waste — thatwould otherwise have been left to decay, be burned, or sent
to landfill. Together, we have found a solution that is bothsustainable and cost effective. We plan to have the plantup and running in 2017.

P&G partnered with EDF Renewable Energy (EDF RE) to build awind farm that will create enough electricity to power all our
Fabric and Home Care plants in the U.S. and Canada that makesuch brands as Tide, Cascade, Downy and Febreze. The windfarm will produce 100 megawatts of renewable power — theequivalent of taking out 200,000 metric tons of greenhouse gas
emissions every year! The wind farm will be operational by theend of 2016.

We’re partnering to power all of
our Fabric and Home Care plants
in North America using

100%

wind electricity

Artist rendering of the new Constellation
renewable energy facility

INTRODUC TION

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COMMUNIT Y IMPAC T

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ENVIRONMENTAL SUSTAINABILIT Y

Energy Conservation
Overall, P&G has achieved a 20% reduction in energy use per unit of production. In fact, wehave already hit our 2020 goal. Since 2010, improvements have led to more than $500 million
in savings. Below are a few examples of how we are driving reductions in energy consumption:

LIGHTING UP ENERGY SAVINGS

CO - GENER ATION

Through our Power of 5 Energy campaign, our manufacturing
sites and the conservation team have committed to saving $100
million in three years. This engagement program has provenvery successful as we improved energy efficiency by 5% in justthe last 12 months when we completed the campaign.

Co-generation uses waste heat from generating electricity tocreate steam, hot air, or other beneficial processes within thehost manufacturing site. This year, we completed three cogeneration projects at our Gross-Gerau, Berlin, and Crailsheimsites in Germany. These three highly-efficient projects will
reduce our footprint by 7,300 metric tons of carbon dioxidea year, which is equivalent to removing more than 1,900 carsfrom the streets.

MAPPING OUT ENERGY SAVINGS

Sustainability is a team effort. And the best ideas come fromour employees who are involved in the process. The talented
men and women at the Cairo plant conducted a workshop
focused on identifying and eliminating energy losses. Through a“Value Stream Mapping” exercise, they were able to document
and analyze their processes and create an action plan that
reduces site energy consumption by 20%.

We hit our 2020
energy goal

4 yearsearly

The Power of 5

has shown that everyday
actions by employees canhave big impacts

Sylvia Jiang, and others from the Xiqing Beauty Caresite in China, participated in the Power of 5 campaign
by submitting innovative savings ideas

INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT Y

COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

51

A Commitment to Use Less Water

Water
Consumption by GBU
A Commitment
to Use Less

Reduce water use in P&G manufacturing facilities by 20% perunit of production by 2020, conservation focused on waterstressed regions.

ENVIRONMENTAL SUSTAINABILIT Y

Greenhouse Gas Emissions

Millions of cubic meters
Reduce water use in P&G manufacturing
unit of production by 2020, conservatio
stressed
60.49regions.
126.70For more than a decade, our global facilities have focused on
the conservation of water. We achieved our 2020 goal last year,
but we will not stop there. This year we saw a reduction in
Our efforts on renewable energy and energy conservation are helping drive water
reductions
use of 24% since 2010. We continue to work to reduce
our water usage across the globe and to strengthen our efforts
in our GHG emissions.
at 40 facilities, which we have identified as being in high waterrisk areas of the world.

For more than a decade, our global faci
64.31
129.35the conservation of water. We achieved
but we will not stop there. This year we
72.43
132.43water use of 24% since 2010. We contin
our water usage across the globe and toat 40 facilities, which we have identified
Baby Care
Beautyrisk areas of the world.
Fabric & Home Care

Family Care

SCOPE 1 & 2 EMISSIONSReduction in Energy Consumption

Total Greenhouse Gas EmissionsGrooming(Scope 1 & Scope 2)Health Care

In 2015, we announced a new science-based per unit ofproduction goal to reduce our absolute Scope 1 and 2 GHG
emissions by 30% by 2020 versus a 2010 baseline. Although
our production has grown since our baseline, we have beenable to successfully decouple this growth from our emissions
driving a 10% absolute GHG reduction over the same period.
Our focus on energy conservation, combined heat and power,
and renewable energy have all helped deliver this result.
The charts to the right summarize our progress:

Percent reduction versus FY09/10 —per unit of production

Percent reduction versus FY09/10, absolute
Physical Distribution

FY15/16-20%

FY14/15
FY13/14

FY15/16-15%8%ENVIRONMENTALSUSTAINABILITYCOMMUNIT
T 2)
Total Greenhouse
Gas Emissions(Scope 1Y &IMPAC
Scope

Millions
tons
Millions ofof metric
gigajoules

Millions of metric tons

4.9 594.9

FY15/16
FY15/16

Water

5.9
66

Baby, Feminine& Family Care

BeautyFabric & Home Care
& Chemical
Health Care

DIVERSIT Y & INCLINTRODUC TIONSUSTAINABILIT Y
5.3
64ENVIRONMENTAL
FY14/15
FY14/15ENVIRONMENTAL SUSTAINABILIT YINTRODUC TION

-3%

FY13/14

Total
Greenhouse
Gasby
Emissions(Scope 1 &INTRODUC
Scope 2)TION
EnergyConsumption
GBU

Water

-10%

FY14/15-13%

Technical Centers

ENVIRON

FY15/16SU
5.3 ENVIRONMENTAL
FY14/15

Water

5.9

FY13/14
FY13/14

Baby, Feminine& Family Care

BeautyGrooming

Fabric & Home Care
& Chemical

Grooming

Other

Health CareOther

FY13/14is oneprecious resources.
Water
As
ispartoneofofour
ourin WaterConsumption
Water is one of our most precious resources. AsWater
part ofour of our mostReduction
ongoingcommitment toPercent
Water Stewardship,
we arecommitme
focusing
reductionongoing
versus
FY09/10–p
ongoing commitment to Water Stewardship, weare focusing
our efforts
canefforts
make anon areas
our efforts on areas where we believe we can makean on areas where we believe weour
immediate impact:
immediate impact:
immediate impact:-24.2%
FY15/16 SUSTAINABILIT Y
E THICS & CORPOR ATE RESPONSIBILIT Y
COMMUNIT Y IMPAC T
DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL
52• Reducewater used in P&G manufacturing• Reduce
facilities
waterby 20%us• Reduce water used in P&G manufacturing facilities
by 20%ENVIRONMENTAL SUSTAINABILIT Y

Greenhouse Gas Emissions
SCOPE 3 EMISSIONS

Scope 3 categories

This year, for the first time, we are reporting estimatesof our Scope 3 emissions. We derived this data fromlifecycle assessments that we have completed for allof our major categories as well as other sources suchas employee travel miles.

Purchased goods and services— Upstream transport & distribution

This exercise reinforced that the “use phase” of products,
especially those that use hot water during consumer use,
is our single greatest opportunity for Scope 3 emissions. The
chart to the right summarizes our Scope 3 estimates and thenext section will highlight our efforts to help reduce energy
consumption in the use phase of our laundry detergents.

In progress

Fuel & energy activities

In progress

Waste generated in operations

In progress

Business travel

100,000

Employee commuting

In progress

Upstream leased assets

Not material

Downstream transport& distribution

3,195,000

Use of sold productEnd of life treatment ofsold product

E THICS & CORPOR ATE RESPONSIBILIT Y

8,560,000

Capital goods

Processing of sold product

INTRODUC TION

Tons CO2e

Not material

186,500,000
10,950,000

Downstream leased assets

Not material

Franchises

Not material

Investments

Not material

COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

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ENVIRONMENTAL SUSTAINABILIT Y

Low-Energy Washing
The impact of the energy used during machine washing of laundry is oneof the biggest impacts on our corporate GHG emissions footprint.

For many years, we have been advancing cold water washing asa key strategy to reduce energy use during machine laundering.
We also know that High Efficiency (HE) low-energy cycles
significantly contribute to our overall objective of reducing
energy consumption during machine wash and as such, since2014, we have tracked not only cold cycles (i.e. dial set to cold
setting) but also HE low-energy cycles. To better reflect thefull scope of positive steps we are taking to reduce energy use
during machine washing, we are updating the language of ourexisting cold water washing goal to reflect a 2020 target of“70% of machine washing loads are low-energy cycles.” Per
our existing tracking, low-energy cycles will include cold cycles
as well as HE low-energy cycles. For FY 15/16, globally weestimate a 5-point increase in the number of low energy cycles
from 56% to 61% over this time period.
To drive continued progress versus our goal, we continue
to develop innovative, sustainable products which enableconsumers to achieve outstanding laundry results in lowenergy cycles so they don’t have to sacrifice performance.

THE TIDE PROFESSIONAL COLD WATER SYSTEM

This is a suite of products designed to drive cold water adoption
with hotels and other commercial machine operators. New
enzyme technology allows for colder washing, less water, andfewer water fills, resulting in 40% less water used and 75% lessenergy consumed than a standard system. This innovation wasrecognized with a 2015 Silver Green Edison Award. While theTide Professional Cold Water system is not included in tracking
versus our cold water washing goal, it is consistent with ourapproach of innovating to provide products with outstanding
performance in cold water.
Tide continues to focus on driving cold water washing throughbroad-based media with the Cold Weather Heroes Campaign.
On a global level, we believe the next impact to low-energy
washing will be the use of quick cycles. We continue to partnerwith top washing machine manufacturers to help educate
consumers about the benefits of cold-water washing cycles andwill reach about 20 million households next fiscal year. As inpast years, we will continue to ensure our products will deliver
the best results within these colder and quicker conditions.

We estimate that61%of machine loads havebeen low-energy cycles

TIDE HE TURBO

This detergent is specifically designed to perform in HE
machines and shorter wash conditions. Consumers have had
a positive response to this product, and Tide HE Turbo showeda growth of 6% since last fiscal year.
TIDE PURCLE AN™

This is the first bio-based cleaning product with the cleaning
power of Tide (65% bio-based). It performs great in traditionalor HE machines and also works well in cold or quick cycles.

INTRODUC TION

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ENVIRONMENTAL SUSTAINABILIT Y

Low-Energy Washing
HELPING TO REDUCE 20 MILLION TONS OF CO 2

P&G uses lifecycle assessment to better understand thefootprint of our products across all phases of their lifecycle (rawmaterials, manufacturing, transportation, consumer use, andend of life). We found that since 2010, we have seen a 43%
decrease in GHG emissions from laundry across North America
and Europe, even though our sales increased during that sametime period. This represents a reduction of about 20 million
tons of CO2 emissions per year. The total GHG emissions fromall P&G manufacturing facilities around the world was about
4.9 million tons, so this is equivalent to eliminating all GHG
emissions from our global manufacturing — four times over!

We have seen a43%

decrease in lifecycle GHG
emissions from laundry
detergents across North
America and Europe

There were a number of factors that contributed to thisreduction, including increases in cold water washing, increased
use of HE machines, as well as development of “cleaner”
electricity grids in North America and Europe that emit less CO2.
Our efforts are helping change consumer behavior and reducing
GHG emissions.

That’s equivalent toeliminating all GHG
emissons from our global
manufacturing

4 times
over

INTRODUC TION

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ENVIRONMENTAL SUSTAINABILIT Y

Renewable Materials
We are committed to creating products that people love anduse every day that have a reduced impact on the environment.
We know our consumers want this, too. That is why we areworking toward a vision of using 100% renewable and recycledmaterials in our products and packaging. Our goal is to create
the capability to replace our top petroleum-derived materials
with renewable materials. Our research focuses on finding costeffective bio-based resins, cleaning agents and acrylates.
Last year, we provided an update on our efforts on bio-resins.
This year, we focused on cleaning agents.

TIDE PURCLE AN

One step toward our goal was the introduction of Tide
purclean™ — the first bio-based detergent with the cleaning
power of Tide. Tide purclean helps consumers make sustainablechoices. Just as important, they are choosing a product thatcleans as well as Tide Original Liquid Laundry detergent.
With 65% bio-based ingredients, as certified by the USDA
BioPreferred program, Tide purclean is helping to set thestandard for natural detergents. Plus, this bio-based detergent
is designed to clean well even in energy-saving cold water.

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Product Design

Manufacturing

Packaging

Reuse/Recycle

USDA certified biobased ingredients are
sustainably sourced.

Formula is made with
100% renewable wind
power electricity, which
represents approximately
50% of the total energy
used. Formula is made ata zero manufacturing
waste to landfill site.

Bottle is made from25% post-consumer
recycled materials.

Tide purclean™ comes ina 100% recyclable bottle.

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Packaging
Our products need a package. Packaging protects our products
and provides important safety and use information. P&G puts
just as much thought and research into our packaging as we
do our products. We are always making improvements, so ourcontainers are as efficient and sustainable as possible while still
delivering against key performance criteria.
Our 2020 packaging stewardship goals include:• Reducing packaging by 20% per consumer use• Doubling our use of recycled resin in plastic packaging•	Ensuring 90% of our packaging is recyclable or there areprograms in place to develop the ability to recycle it

We have achieved a

LESS PACK AGING

Reduce packaging by 20% per consumer use by 2020.
Our goal is to reduce packaging by 20% per consumer use by2020 vs our 2010 baseline. In FY 15/16, we achieved a 12.5%
reduction per consumer use, which keeps us on our glidepath
for our 2020 goal. However, we continue to experience marketdriven headwinds that are impeding progress against our goal.
In some key markets, customer requests for smaller case counts
increased the amount of corrugate usage per consumer useof product. We also shifted some products to smaller sizes tobetter meet consumer needs, which also increased the amountof packaging per consumer use. However, through our ongoing
focus on packaging efficiency and several packaging design
breakthroughs, we were able to offset these headwinds anddeliver a 12.5% reduction versus our 2010 baseline. Some
examples of breakthroughs from this year include:•	Our Hair Care business in Europe transitioned to caselessshipping through some supply chains by eliminating theuse of corrugate for transportation.

12.5%

reduction in packaging
per consumer use

We expect the same challenging headwinds to persist in
FY 16/17 such that future progress against our goal may
become more challenging. Going forward, we will maintain astrong focus on optimizing packaging design and evaluating
opportunities to not only source-reduce, but also increase ouruse of recycled resin and increase recyclability.

While we continue to maintain a strong focus on
optimizing package design, we are also partneringwith external stakeholders to help advance recoveryof packaging materials. Learn more about these
efforts in the Waste section.
WASTE•	The Baby Care business in Latin America launched Pampers
Pants in a flexible film bundle with a robust pallet stacking
design. This significantly reduces the amount of corrugatematerial needed. This bundle and pallet design is being rolled
out to other regions.
•	Our Family Care business is working with consumers to design
larger rolls of Bounty and Charmin. Consumers have fewer rollchanges, and we deliver more consumer uses per amount ofpacking material used.

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Packaging
MORE REC YCLED RESIN IN PL ASTIC PACK AGING

MORE PACK AGING REC YCL ABILIT Y

Double our use of recycled resin (post-consumer resin)in our plastic packaging by 2020.

Ensure that 90% of our product packaging is recyclable
or that programs are in place to create the ability torecycle them.

By 2020, we will need to use 52,000 metric tons of postconsumer resin to meet this goal. In FY 15/16, we used about
34,100 tons of post-consumer resin in our plastic packaging,
putting us about 30% of the way to hitting our goal. We
accomplished this through:•	Using more recycled resin in our Fabric Care, Home Careand Hair Care packaging, mostly in North America.
•	Working with our suppliers to develop the capability
to use recycled resin material in our Fabric Careand Home Care bottles in Europe.
•	E xpanding the use of recycled resin material in markets where
we already have the capability, as well as developing new
capabilities in other markets.
•	Working with industry partners, trade organizations andothers to ensure a healthy recycling value chain is in place.

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For purposes of tracking progress against our goal, a package
is considered recyclable when there is an in-market, atscale recycling system in place for that material type. This
includes collection, sortation, processing for end use, andan established end market for collected material. Using thisdefinition, approximately 86% of our packaging would beconsidered recyclable today. This relatively high value reflects
the fact that the vast majority of our current packaging ismaterials and forms that are readily recyclable (e.g., corrugatedboxes, cartons, high-density polyethylene [HDPE] bottles andpolyethylene terephthalate [PET] bottles).
Difficult to recycle materials including films, resins not readilycollected by curbside programs, and mixed material packaging
continue to be our biggest opportunity. We partner with otherorganizations in the recycling value chain to find solutions
for these materials. One example is our recently expanded
program with Terracycle to collect and recycle the difficult torecycle packaging materials used for some Air Care products.
Terracycle will collect these materials, regardless of producing
company, and utilize their recycling process to ensure thematerials are recovered and used for new purposes.

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Responsible Forestry
Forests are critical to supporting virtually all life on earth. Increases in world population andpressure from economic demands are increasing threats to the world’s forests. These threats areespecially high in tropical regions where deforestation and loss of high-conservation-value areas
are already occurring. The good news is that forests are one of our most-renewable resources
and by collaborating with numerous private and public sector organizations we can makeprogress in achieving our zero net deforestation goals and protecting habitat which benefits
people, business, wildlife and local economies.

Our efforts are based on our commitment to ensure theresponsible management of the world’s forests and ourconscientious use of forest products. Although we do not
own or manage commercial forests, many of our products andpackages are dependent on raw materials from the forest-based
supply chains. Therefore, we recognize the key role we must
play through our procurement and manufacturing practices
to ensure the sustainability of the world’s forest resources.
Wood pulp for tissue/towel and absorbent hygiene products,
wood fibers used in paper packaging, and palm oil for ourlaundry and beauty products are strategic commodities
where our sourcing practices can have the greatest impact on
ensuring responsible use of the world’s forest resources. Eachof these materials has a different supply chain, and their uniquecomplexities led us to develop individual programs as describedin the following sections.

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Responsible Forestry — Wood Pulp Supply Chains
Wood Pulp Supply ChainsWe give preference to pulp from Forest StewardshipCouncil® (FSC®) certified forests when it is available
and meets product performance and business
requirements. FSC protects water, wildlife and local
people by ensuring forests are responsibly managed.
FSC standards are recognized worldwide as themost-stringent forest management certification
scheme and is supported by internationally recognizedenvironmental NGOs.
Based on the market availability of certified fibers, P&G alsorelies on the use of other third-party forestry certification
systems within our supply chain. They include:• Programme for the Endorsement of Forest Certification(PEFC)• Sustainable Forestry Initiative® (SFI)• Brazilian Forest Certification Programme (CERFLOR)• Canadian Standards Association (CSA) Group Sustainable
Forest Management System (SFM)

PROCUREMENT POLIC Y

PULP FOR OUR TISSUE / TOWEL AND ABSORBENTHYGIENE PRODUC TS

P&G requires that the forest certification systems utilized by
our wood pulp suppliers adhere to the following criteria for
responsible forest management:• Ensuring that unwanted wood sources are avoided and thatwood is legally harvested and that all legal requirements are
met. P&G will not knowingly use illegally sourced materials in
our products.
• Ensuring the safety of forestry and manufacturing operations
for employees and the environment.
• Ensuring that our supply chain is incorporating the principles
of responsible forest management and continuous
improvement in their own operations and that theseare verified by independent forest and chain-of-custodycertification.
• Ensuring that trees are not harvested from high-conservationvalue forests unless they are credibly certified or source
verified. P&G supports multi-stakeholder efforts to develop
information sources and tools that will help suppliers
identify these areas on their own forestlands and in theirprocurement of wood raw materials from third parties (e.g.,
www.hcvnetwork.org).

P&G purchases wood pulp for use in our tissue/towel andabsorbent hygiene products. We maintained our prior goal for
100% of the virgin wood fiber used in our tissue/towel andabsorbent hygiene products to be third-party certified to oneof the aforementioned standards. FSC Controlled Wood (FSC
CW) is an important component of our stepwise approachto progressively increase the amount of pulp from FSC Chainof Custody (FSC CoC) certified sources. Specifically, we also
require that all pulp come from sources that have undergone arisk assessment in accordance with the FSC Controlled Woodstandard — a standard that intends to minimizes the risk ofusing wood products from ‘unacceptable’ sources in FSClabeled products. The FSC CW standard ensures that unwanted
wood sources are avoided and that wood harvesting is done
legally per our procurement policy.

• Ensuring that there is no sourcing from geneticallymodified trees.
• Ensuring that supplier practices reflect our social values
and support of universal human rights through workwith local governments and communities to improve theeducational, cultural, economic and social well-being of
those communities.
• Ensuring that our supply chain does not contain fiberfrom conflict timber (timber that was traded in a waythat drives violent armed conflict or threatens nationalor regional stability).

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Responsible Forestry — Wood Pulp Supply Chains
PULP SOURCESIn FY 15/16, P&G bought approximately 1.65 million metrictons of air-dried pulp for use in our tissue/towel, diaper andabsorbent hygiene products. The pulp was sourced from thefollowing countries:

The third-party-certified fiber used as a percent
of our total virgin wood supply for FY 15/16:

Country of Origin% of Total

Certification System% of Total

Argentina

2%
33%
27%
38%
100%

FSC COC

33%
2%
17%
47%
1%
100%

BrazilCanadaUnited States
Total

FSC CWPEFC
SFI
CSA-SFMTotal

L earn more about our wood pulp
procurement policy

FSC COC — FSC Forest Management Chain of Custody
FSC CW — Controlled Wood

Charmin FSC Certification
In addition to ensuring a responsible supply chain
for our virgin wood pulp, our Charmin businesshas taken the step to supporting responsible forest
management by achieving FSC certification for its
tissue paper products.
We recently launched our newest tissue productinnovation, Charmin Essentials, and with it, thelaunch of FSC and Rainforest Alliance certificationof our Charmin Ultra Strong and Ultra Soft family oftissue products.
FSC and Rainforest Alliance certification of brands
is an outcome of our preference for FSC®-certified
pulp sources and our past and sustained effort toensure FSC®-certified virgin wood pulp inputs forour tissue and paper towel business.

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Responsible Forestry — Wood Pulp Supply Chains
We continue to drive strong progress in our wood pulp sourcing. Below are just a few highlights from FY 15/16.

RESPONSIBLE PAPERMAKING

U.S. SOUTHE AST SMALLHOLDER PARTNERSHIPFSC-U.S. AWARD RECIPIENT

Our iconic Bounty, Charmin and Puffs brands have a longpapermaking heritage, and we are proud to share informationand insights on our approach to responsible papermaking.

We have joined with multiple organizations and an associationof small landowners to increase the acreage of FSC-certified
forestlands in the southeast U.S. P&G is going beyond simply
making demands to our suppliers; we are investing ourresources in a close collaboration with our suppliers to increase
the availability of FSC-certified timber.

In the fall of 2016, the Forest Stewardship Council — U.S. jointly
awarded P&G and several other companies and organizations
with their 2016 FSC Leadership Award for Uncommon
Partnerships. This award celebrates the collaboration between
the awardees for support of FSC U.S.’s Consumer Marketing
initiative and the group’s collective efforts to protect theworld’s forests.

Two years ago, we invested in a collaboration with Domtar,
the Rainforest Alliance, The Nature Conservancy, World Wildlife
Fund’s Global Forest & Trade Network®, Forest StewardshipCouncil and the Four States Timberland Owners Association toeducate landowners on the benefits of FSC certification and thesteps they can take to ensure responsible management of thetheir forestlands.

Watch our Responsible
Papermaking videoThus far, for the duration of P&G’s involvement with this group,
forestlands in the U.S. Southeast committed to FSC certification
have increased from 100,000 hectares to over 500,000. Now,
additional FSC-certified timber is available to Domtar for use
in their production of pulp and available for use by P&G in
our products.

P&G’s Bounty, Charmin, and Puffs Communications andMarketing professionals contributed to the development ofconcepts, strategies, and content launched by FSC-US in thefall of 2016 to raise awareness of the FSC and the choices
consumers can make to support responsible forestry bypurchased FSC-certified products.
Learn more about FSC

To learn more about how each of these brands
are supporting responsible forestry visit thefollowing links:
BOUNT YCHARMIN
Watch FSC video

PUFFS

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Responsible Forestry — Palm Oil
Palm Oil
Palm oil (PO) is a high-demand vegetable oil used
as a raw material by food and non-food industries.
In some regions of the world, palm oil productionis threatening tropical forests and peat lands. It has
also led to some incidents that have infringed upon
the rights of independent smallholder farmers andindigenous peoples.
While we do not use a large amount of palm oil, we do use
a byproduct called palm kernel oil (PKO). We are committed
to ensuring that our sourcing of palm oil, palm kernel oil andderivatives does not contribute to deforestation and respects
the rights of workers and indigenous peoples. We are membersof the Roundtable on Sustainable Palm Oil (RSPO) and support
their standards to drive responsible palm practices across theindustry. In addition, we take steps beyond RSPO certification
to confirm the palm-derived materials we purchase are notcontributing to deforestation.

COMMITMENTS

GOALS

1. Develop a traceable supply chain.

Palm oil and palm oil fractions:

2. E nsure our suppliers meet RSPO criteria and have policies
and procedures in place to ensure:• Establish traceability to palm oil mills by December 31, 2015
(Achieved).

• No development of high-conservation-value areas and highcarbon-stock forests• No new development of peat lands regardless of depth• No burning to clear land for new development or replanting• Compliance with P&G’s existing Sustainability Guidelines forExternal Business Partners• Respect for human and labor rights• Respect for land-tenure rights, including rights of indigenous
and local communities to give or withhold their free, priorand informed consent for development of land they own
legally, communally or by custom• Suppliers to submit plans by December 31, 2015, to ensure
no deforestation in their supply chain by 2020 (Achieved).
• As we advance progress against the goals above, we also willcontinue to purchase 100% RSPO-certified palm oil.
Palm kernel oil:
• Establish traceability to palm kernel oil mills by December 31,
2015. (Achieved)• Invest in and work with palm kernel oil suppliers, and thesmallholders who supply them, with the aim of improving
both practices and livelihoods to establish zero deforestationin our supply chain by 2020.
Palm oil derivatives and palm kernel oil derivatives:

If we find that a supplier is violating any of the above
requirements, and if that supplier does not acknowledge
and resolve the concern, P&G will move to suspend or
eliminate palm oil purchases from that supplier. The
supplier would need to have a documented action planand demonstrate meaningful progress to be considered
for reinstating supply agreements• Require suppliers to put forward time-bound plans by end of2016 to ensure no deforestation in their supply chains.

3. W ork with suppliers, industry peers, non-governmentalorganizations, academic experts and other stakeholders
to promote consistent industry standards and practices inpalm oil sourcing with the aim of achieving traceability andeliminating deforestation.

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We will continue
to purchase100%

RSPO-certified
palm oil

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Responsible Forestry — Palm Oil
PROGRESS

We are working to meet our commitments through suppliermanagement, our smallholder program and industry standard
and methodology development.
SUPPLIER MANAGEMENT

We are engaging with and enabling our suppliers to meet our
procurement requirements.
Traceability: Tracing the route of palm oil and palm kernel
oil allows us to ensure that our suppliers are adhering to ourstandards and practices. We apply the KnownSources platform,
which is the industry standard for traceability, with most of our
suppliers. During FY 15/16, we met our commitment to trace
palm oil to the mill and palm kernel oil to the crushing plant.
Tracing the journey of these oils has its challenges. For instance,with palm kernel oil, it can be difficult to trace kernels fromthe kernel crushing plant back to the palm oil mill. Kernels cantravel long distances and be stored for long periods of time,making traceability harder for the entire industry. To address thischallenge, we formed a unique collaboration with the MalaysianInstitute for Supply Chain Innovation and our largest palm
kernel oil supplier, FGV. Working together, we have overcome
these challenges and have achieved significant visibility into ourlargest palm kernel oil supply chain. In fact, we now know thatabout 96% of our palm kernel oil comes from kernels that weresourced from a known subset of FGV’s palm oil mills. While thispartnership is significant, industry-wide challenges still remain
and will most likely require industry-wide efforts and solutions.
Learn more about the complexity
in the supply chain in this video

No-deforestation plans: All of our palm oil and palm kernel
oil suppliers have submitted no-deforestation plans. These
plans provide relevant policies, action plans, procedures, andstatus of suppliers’ palm oil sourcing. We periodically review our
suppliers’ progress, seek to understand and help solve relevant
challenges. We are now having our palm derivative suppliers
submit their no-deforestation plans.
RSPO-certified Oil Procurement: We maintain 100% RSPOcertified palm oil and palm oil derivative. In addition, at the endof FY 15/16, we achieved 76% physically certified palm oil andpalm oil derivatives, with the expectation of reaching 100% as
we progress into FY 16/17.
Challenges: We did face a challenge this fiscal year. Ourlargest supplier of palm kernel oil voluntarily withdrew its RSPO
certification. This has had a negative impact on our overall levelsof mass-balanced palm kernel oil. However, we anticipate thesenumbers will increase when this supplier is recertified, and weare carefully monitoring their progress towards recertification.

P&G Palm Materials Purchases FY 15 / 16

PO*
PO Derivatives
PKO
PKO Derivatives
Total

Metric Tons

RSPO Certified (%)

38,977
81,402335,29073,255528,924

100%
100%
28%
0%
40%

*This includes palm oil and palm oil fractions

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Responsible Forestry — Palm Oil
SMALLHOLDER PROGR AM

About 20% of our palm kernel oil volume originates fromindependent smallholder farmers who work as a part of acomplex trader network. This can make the supply chain
more complex. But we know the importance of supportingthese smallholders, recognizing that they depend on palm
production as a source of income. We are committed toappropriate sourcing practices and improving livelihoods forthese smallholders. We established an independent smallholder
program for our largest palm supply chain. For this effort, wehave teamed up with the Malaysia Institute for Supply Chain
Innovation (MISI) and NGO partners Wild Asia, Proforest andthe International Plant Nutrition Institute (IPNI). Thanks to thisproject, we have a better understanding of the many challengesof the smallholder. This includes disease control, harvesting
and labor practices, best peat management practices, andfertilization. We have also found many opportunities for
improving the productivity of these small farms. Our findings
will be available in FY 16/17, and we will incorporate these
into a smallholder improvement framework model.
We are also continuing development of the Smallholder Risk
Assessment Modeling (SHRAM) project with partners WRI,MISI, and FGV. We are designing this to be an easy-to-use
tool to enable risk prioritization and to simplify and focus
smallholder engagement efforts.

INDUSTRY STANDARDS AND METHODOLOGYDEVELOPMENT

We connect and collaborate with the multi-stakeholder
community to drive harmonized industry standards andmethodology.
RSPO Smallholders Working Group (SHWG): This groupdevelops new standards and tools for our smallholder projectand industry programs. This includes the RSPO Management
System Requirements and Guidance for Group Certification of
FFB Production, approved in March 2016. We also sponsoredthe smallholders from Latin America, Africa and SE Asia to join
the Linking and Learning Session at the RSPO RT13 meeting.
These smallholders shared best practices and experiences forcapability building to improve the livelihoods of smallholders
across the geographies.
Right: P&G representatives meeting with NGO partners, Tradersand smallholders in Malaysia to discuss progress of P&G’s Smallholder
Pilot Projects.

Check out what our partners think
about our smallholder projects

About

20%

of our palm kernel oil
comes from independent
smallholder farmers

Watch to learn more about our commitment
to independent smallholder farmers

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Responsible Forestry — Palm Oil Collaboration
The Traceability Working Group (TWG): This groupsupports development of an industry traceability platform
and system that will drive greater efficiency and speed for
driving traceability of palm oil. The group also developed theSupply Shed Risk Assessment and Verification Methodologythat creates a framework to tackle the challenges facing
many independent palm oil mills. We are advocating theimplementation through our supply management effort.
The High Carbon Stock Approach Steering Group(HCSA SG): When forests are cleared, carbon is released
and biodiversity is lost. The high carbon stock (HCS)
distinguishes areas for protection. As a member of HCSA,
we support development and implementation of the HCS
assessment approach. We are driving to integrate multiple
efforts on HCS into a single harmonized methodology. We arealso supporting the High Conservation Value (HCV) approachand multiple assessment processes into an integrated land-use
planning tool. We joined the Smallholder Working Group within
HCSA SG to develop a simplified HCS assessment process forthe smallholders.
L earn more about how we are progressing in ourefforts towards palm oil sustainability

Thanks to P&G, smallholders were able to come together
to link with, and learn from, others in the industry.

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Responsible Forestry — Paper Packaging
Paper Packaging
We strive to use the least amount of packaging
materials while still ensuring adequate protection,delivery and safe use of our products. As part ofour efforts, we are identifying source reduction
opportunities that will decrease overall material usage
and to use recycled paper when it is the best option.
We have the responsibility to make sure the wood fiber usedin our paper-based packaging is responsibly sourced. Our goalis by 2020, to have 100% of our paper packaging contain either
recycled or third-party-certified virgin content. We have beencollecting data from suppliers to assess our progress. This year,
we have data from more than 110 suppliers, which represents
more than 95% of our global paper packaging spend. This data
reveals that 98% of the volume reported by our suppliers waseither recycled or third-party-certified virgin content.

Total Metric Tons Reported by Paper Packaging
Suppliers Surveyed in FY 15/16: ~795,000 Metric Tons

% virgin83%
17%% of virgin fiber that was
third party certified

86%% of total recycled or
third-party-certified virgin

98%% recycled

2020 Goal:100%

of our paper packaging
will contain recycled
or third-party-certified
virgin content

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Water
Water is one of our most-precious resources. As part of ourongoing commitment to Water Stewardship, we are focusing
our efforts on areas where we believe we can make an
immediate impact:• Reduce water used in P&G manufacturing facilities by 20%
per unit of production by 2020 versus 2010 (achieved) withconservation focused on water-stressed regions• Provide one billion people with access to water-efficient
products by 2020

Reduction in Water Consumption
Percent reduction versus FY09/10 —per unit of production

FY15/16-24%

FY14/15-21%

FY13/14-19%• Provide 15 billion liters of clean drinking water to those
who need it most by 2020

A Commitment to Use Less Water
For more than a decade, our global facilities have focused on
the conservation of water. We achieved our 2020 goal last year,
but we will not stop there. This year, we saw a reduction inwater use of 24% since 2010. We continue to work to reduce
our water usage across the globe and to strengthen our efforts
at 40 facilities, which we have identified as being in high waterstressed areas of the world.

Water Consumption by GBU

Wastewater COD* Disposed by GBU

Millions of cubic meters

Thousands of metric tons

64

FY15/16

68

FY14/15

70

23
21
20

FY13/14

FY15/16
FY14/15
FY13/14*Chemical Oxygen Demand

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Baby, Feminine& Family Care

BeautyFabric & Home Care
& Chemical

Grooming

Health CareOther

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Baby, Feminine& Family Care

BeautyFabric & Home Care
& Chemical

Grooming

Health Care

Other

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Water — A Commitment to Use Less Water
A FOCUS ON WATER-STRESSED REGIONS

Last year, we found that less than 30% of our sites (40 sites)
are located in areas we consider to be experiencing high water
stress. We have moved these sites into Tier 2 of our assessment
process. Each site will complete a detailed questionnaire to
identify the actions already being taken to mitigate risk and theopportunities that still exist to reduce risk. These assessments
are underway and should be completed by the end of 2017.

P&G Water Risk Assessment Framework

1

Water Risk Screening (Completed)
Identify risk level of sites based on:• Baseline Water Stress Score — World Resources Institute• Gross National Income per Capita — World Bank
• P&G Site Water Use per Year — P&G

BEING GOOD STEWARDS

Our Water Risk Assessment process and external partnerships
have been a catalyst for action within our business units, andwe have seen a heightened commitment to being good water
stewards. The identification of sites in water-stressed areas has
empowered our manufacturing plants to support each other inmaking a real difference at the site level leading to:• Internal water workshops to share best practices~70% of sites inlower-risk regions• Access to Water — WHO/UNICEF

2• Scorecards to inspire action on a business unit level

P&G Tailored Site Questionnaire (In-Progress)
Prioritize sites based on outcome of responses• The P&G questionnaire was built upon the facility
questionnaire in WWF’s Water Risk Filter• Renewed business continuity plans that put additional
focus on water stress

ALL SITES SCREENEDPRIORIT Y SITES FROM 1~30% of sites have entered
the Tier 2 process• Investments to understand and implement new waterreuse technologies

3

In-Depth Site Water Analysis (Next Phase)
Prioritize risks for mitigation and develop a site-specificsustainable water management plan
• GEMI™ Local Water tool or equivalent

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A Focus on Water-Stressed Regions
Focusing efforts where they are needed most.

3 3
4
3 5

8
6
2

7

1
18

3
3

9

Site of focus
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Water — Success Stories from Sites in Water-Stressed Regions	
1 Hyderabad, India and Port Qasim, Pakistan: The Tier 2
assessments undertaken at each of these sites mapped out
water risk in detail. The findings gave the project teams indepth knowledge about the water situation in and aroundtheir plants. As a result, the teams decided to equip new
modules built in their plants with cooling technologies that
do not require water.
2 Jeddah, Saudi Arabia: This Baby Care site is now	collecting condensate water from its HVAC systems. The
collected water is then reused for irrigation and topping
off firewater tanks. This new process allows the site to saveabout 25% (or 3600m3) of water a year.
3	Asia:A three-day water efficiency workshop wasorganized in the spring of 2016. Eleven sites in Asia
(five located in high-risk river basins) shared their water
experiences. They learned the latest on water efficiency
approaches from our global experts. These face-to-faceworking sessions led to better benchmarking betweensites and increased capability at the site level. Similar water
efficiency workshops were held in North America andEurope this fall.
	Oxnard,
California: At our paper plant in Oxnard,
4
California, we’ve set new site and business records for low
levels of water consumption. Efforts there have included
projects that recovered water in innovative ways for reusein process, switching from freshwater to treated water forsome parts of the papermaking process and developing
new work process controls to manage the overuseof water.

INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT Y	Taicang,
China: This site has achieved a technical5
breakthrough allowing it to drastically reduce its water
footprint. So far, it has optimized and reduced the amountof water used for cleaning and sanitization by more than
50%. The site is currently treating the water from cleaningand sanitization so it can be recycled and used to feedcooling towers. In the near future, this site wants to further
improve its recycling system so the water can be reused in
more places throughout the manufacturing process.
	Hub,
Pakistan: This bar soap plant reduced its water
6
footprint by 50% in one year, thanks to many projects
allowing reuse of water multiple times before being
discharged. The site achieved this significant reduction bylearning more about the quality of water needed for eachapplication at the plant, allowing them to maximize thereuse of water versus using more freshwater.
7	Mariscala,
Mexico: Located just north of Mexico City,
this plant has struggled with low-quality water comingfrom a well on site. To use this well water as an ingredientin our products, they needed to remove the high levels ofsilica inside the well water. The solution came in the formof a new water pretreatment technology, based on silica
precipitation and ultra-filtration. This water purification
unit is able to treat the well water more efficiently and has
enabled a 20% reduction of site water use, along with an
improvement in water quality.

COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSION	
8 Baddi and Hyderabad, India: For the last two years, theBaddi Plant has hosted tree-planting events in an effort
to reduce their impact on the surrounding environment.
This year, two trees were planted for every one employee,leading to a total of 1,000 new trees taking root aroundthe site. Our Hyderabad site has also been working topromote a “cleaner and greener” environment, whileraising environmental awareness among employees. For
the last four years, they have been planting thousands oftrees on and around the site to encourage the recharge of
local aquifers. This year, they are also partnering with thelocal government to restore the Mamidala Cheruvu pond
just a short distance from the plant.
	Brazil:
Collaboration with key stakeholders is critical to our
9efforts. We are partnering with The Nature Conservancy inBrazil as part of the Green-Blue Water Coalition. The goal
is to engage companies, people and the government sothat together we can work to ensure water security in 12
Brazilian metropolitan areas.
L earn more about the Green-Blue Water Coalition

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Water
A Commitment to Water-Efficient Products
Provide one billion people access to water-efficient
products by 2020.
For many products, the life cycle assessments have shown us
the consumer “use phase” is often the most water intensive.
While we cannot directly control the amount of water thatpeople use, we can give them tools to reduce their water use
without compromising performance. In light of this knowledge,
P&G set a goal to provide one billion people access to waterefficient products by 2020. At the end of FY 15/16, we estimatethat about 450 million consumers had access to water-efficient
products.
2-in-1 Shampoo + Conditioner: When you use shampoo andconditioner in the shower, you use water. Right now, there is noeasy way of getting around it. That is why our Hair Care brands
are focused on helping consumers reduce their in-shower wateruse, while ensuring they continue to have a superior experience.
2-in-1 shampoo + conditioners allows consumers to skip a stepin the shower by combining the power of P&G shampoo andconditioner into one product. This allows them to save up to
1 minute in the shower, translating to a water savings of up to
5 gallons per shower. That’s more than 1000 gallons of watersavings a year for the average 2-in-1 user! Over 200 million
people have access to 2-in-1 shampoo + conditioner1.
L earn more about reducing water use in the showerin the U.S.
L earn more about reducing water use in the showerin the U.K.

Swiffer Wet Pads: For decades, people have used the simple
mop and bucket to keep their floors clean. In 2001, Swiffer
Sweepers were released and millions of consumers wereintroduced to a new, more-convenient way to clean. The
Swiffer Wet system offers an all-around better experience.
It’s easy to use and uses less water than the typical mop andbucket. Households went from using gallons of water to ouncesof solution to clean their floors. Every household that uses
Swiffer Wet could save more than 70 gallons of water per year
vs. mop and bucket cleaners. About 50 million people in the
United States currently have access to Swiffer Wet pads.
L earn more about how Swiffer changed the way
the world cleans

A commitment to clean drinking water
Provide 15 billion liters of clean drinking water to those
who need it most by 2020.
More than a decade ago, P&G established the Children’s Safe
Drinking Water (CSDW) Program to help provide clean drinking
water to millions of people around the world. With the helpof our wide range of partners, P&G has provided more than
10 billion liters of clean drinking water through our CSDW
Program. Over the next five years, we will launch more than
25 new programs to bring clean water to even more
malnourished children, people living with HIV/AIDS, families
living in rural areas who lack clean drinking water, and victims
of natural disasters.
L earn more about our commitment
to clean drinking water[1] Calculation includes women with access to 2-in-1 shampoos in: U.S.,
China, Mexico, UK, Russia, Japan, Germany and Brazil.

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Waste
All material has value, even materials that we consider waste.
Our vision is that one day there will be no waste going into a landfill.

Manufacturing Waste
ZERO MANUFAC TURING WASTE TO L ANDFILL (ZMW TL)

We are committed to reducing waste from our manufacturing
sites and currently more than 55% of our manufacturing sites
are ZMWTL. This is up from 10% just four years ago. Eighteencountries where we have manufacturing sites are completelyZMWTL. While we still have more work to do, we have plansin place to make sure we deliver.
L earn more about what makes a site ZMWTLTECHNIC AL AND OFFICE BUILDINGS

Waste Disposed

While 95% of our waste comes from our manufacturing plants,
we also work to make a difference at our technical and officebuildings. The San Jose Center in Costa Rica is proof of this.
It became the first administrative office in Latin America andthe largest (in terms of employees) globally to voluntarily meetthe same zero waste to landfill qualification process as our
manufacturing sites. Their success is in large part due to strong
employee engagement, leadership support and coordination
with partners and suppliers.

Percent reduction versus FY09/10—per unit of production

We are taking what we learned from the San Jose Center, andwe are applying it across our other offices. We have alreadycertified five offices/tech centers as meeting P&G’s zerowaste requirements.

FY15/16-78%

FY14/15-78%-73%

FY13/14

Water Consumption
by GBU
Disposed
Waste by GBU
Millions of of
cubic
metersThousands
metrictons

87 64

FY15/16
FY15/16

88 68

FY14/15
FY14/1570
108

Baby, Feminine& Family Care

BeautyFabric & Home Care
& Chemical

Grooming

Health CareOther

FY13/14
FY13/14

umption
9/10 – production adjusted

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Waste — Manufacturing Waste
Solid Waste Non-Hazardous by GBU

GLOBAL ASSET RECOVERY PURCHASES (GARP)

Zero Manufacturing Waste to Landfill

Thousands of metric tons

Our Global Asset Recovery Purchases (GARP) program finds
innovative ways to reduce waste and disposal costs. Since 2007,
it has diverted millions of tons of trash from landfills, finding
alternative uses for this would-be waste. It has also saved
more than $1.6 billion. Here are some of the innovative
solutions GARP and our manufacturing plants have
implemented this year:

Sites qualifications by FY

47

FY15/1651

FY14/1571

FY13/14

Thousands of metric tons

85

Baby, Feminine& Family Care

BeautyFabric & Home Care
& Chemical

Grooming

Health Care

Other

11

FY15/16• We finalized the utilization method approved by our supplier
MonoSol for PVA trim and PVA end-of rolls. This diverted
850 tons of landfill to recycling, saving approximately$260,000. This effort also enabled the site to achieve
ZMWTL status.

FY14/15• Our Brazil site is using wastewater sludge and turning it into
usable and affordable bricks.

FY13/14• Our Iowa City site is becoming a master composter. The
major volume of landfill is now turned into fertilizer.
• In Lima, instead of burning waste, it is being used to produce
methane, a useful bio fuel. These efforts have diverted
16,000 tons of waste from landfill across both sites and saved
more than $250,000.

FY15/16
FY14/15

14• Our Amiens plant diverted 1,565 tons of waste (full pouches,soiled PVA, bottled scrap HDL, scrap reblend bulk) fromincineration to alternative usage. Aside from being anenvironmental win, we saved about $830,000 as a result.

Solid Waste Hazardous by GBU

418

FY13/14
FY12/1311
16

FY11/122

FY10/112

FY9/10

1

FY8/9

1

FY7/8

1

FY6/7

Current site totals may differ due to closure and divestitureof sites that had achieved ZMWTL status• We qualified 18 sites ZMWTL status. This is more than any
other year since the program began.
• We now have 18 countries where all of the manufacturing
sites have qualified as ZMWTL — Germany, U.K., Poland,
Japan, Belgium, Egypt, Ireland, Vietnam, Hungary, Indonesia,
Czech Republic, Romania, Singapore, Korea, Thailand, Turkey,
Mexico and Spain.

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Waste — Consumer Waste
Consumer Waste

CLOSED LOOP FUND

We are initiating a number of waste-reduction pilots inboth developed and developing regions:

P&G continues to partner with the Closed Loop Fund (CLF). Thisis a social impact investment fund providing U.S. cities accessto capital to expand and provide comprehensive recycling
programs. By 2020, CLF aims to invest $100 million with thegoal to create economic value for U.S. cities by increasing
recycling rates. To date, CLF has made investments close to$30 million in capital, which in turn unlocked an additional$58 million from other public and private co-investors. CLF
has helped improve recycling in Iowa, Tennessee, Colorado,
Minnesota, and Florida. In January 2016, CLF was also
recognized by Davos at the World Economic Forum as firstrunner-up in the Alliance Trust Award for Circular Economy
Investor category.

WASTE TO WORTH

Waste to Worth is an effort to develop an integrated, profitable
and replicable waste-management business model that finds
value from waste. One key pilot is currently underway in thePhilippines. The goal of the pilot is to convert more than 1,000
tons per day of solid waste to value. Working with the AsianDevelopment Bank, we have already completed feasibility
studies and formed the basis for two proposed pilot projects—
one in Angeles City, the other in Cabuyao. We have also
procured legal constructs and obtained third-party financing.
In June 2016, our Cabuyao plant hosted the signing of the
Laguna Lake Joint Venture agreement that paves the way forconstruction of a Waste to Worth facility in the city of Cabuyao.
Many important leaders attended the signing, including theMayor of Cabuyao, government officials from the Philippines,
and representatives from the U.S. Embassy.
The pilots are currently entering the execution phase.
Groundbreaking for both sites is slated for FY 16/17.

Learn more about the Closed Loop Fund
TR ASH FREE SE AS ALLIANCE ® ( TFSA)

Last year, we joined Trash Free Seas Alliance (TFSA), a multistakeholder coalition that brings together thought leaders fromindustry, conservation and academia to create a forum for
pragmatic, real-world collaboration focused on the measurable
reduction of ocean trash. The goal is to reduce the amount ofland waste entering the ocean.
During FY 15/16, the TFSA completed a comprehensive
evaluation of the barriers and enablers to investment in
integrated trash solutions for the developing nations of the Asia
Pacific rim. The Waste to Worth effort in the Philippines helped
inform this evaluation. TFSA will continue efforts into FY 16/17
to define specific recommendations to help overcome barriers
to investment and enable development of effective waste
management systems.
L earn more about TFSA

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Waste — Consumer Waste
THE REC YCLING PARTNERSHIP

MATERIALS RECOVERY FOR THE FUTURE

P&G is a member of The Recycling Partnership, an industry
collaboration helping to transform recycling programs in towns
across the U.S. The Partnership continues to expand its impact
and reached an important milestone of supporting its first 100
cities. Through technical support, educational programming,
tools for communities, and its new “More, Better” quality
platform, The Partnership is making a difference. They havehelped multiple cities—such as Greenville, South Carolina andEast Lansing, Michigan—switch to recycling carts. They havestarted new statewide partnerships with Massachusetts andMichigan. And they enabled communities from across the
U.S. to have professionally designed tools and educational
materials. Through this partnership, P&G has helped divertmaterial from landfills and driven acceptance of new recyclable
packaging such as polypropylene. Since 2014, The Partnershiphas completed or is working on projects that are the catalyst for
more than $20 million of new recycling infrastructure, provided
education materials that has reached two million households,
and is finishing placement of 300,000 recycling carts.

P&G is committed to finding recovery solutions for film andflexible plastic packaging. With other leading members of theflexible plastic packaging value chain and recovery community,
we developed the Materials Recovery for the Future (MRFF)
program. In the first year of the program, we completed threemajor tests in target material recovery facilities (MRFs). The
tests showed that optical sorters are capable of extracting a
stream of flexible plastic packaging from other recyclables.
Building on these findings, MRFF continues research to optimize
airflow and optical sorters in recovery facilities, to makenecessary equipment modifications, and to ultimately establish
a demonstration project. We want to ensure that flexible plastic
packaging is recycled, and the recovery community captures
value from it.

“P&G’s active and thoughtful support has helped usreach more U.S. households with long-term solutions
for strong recycling. Their goal of 90% recyclable
packaging fits perfectly with our mission to improverecycling not just at the local level, but across theentire system. No company or organization can realize
system-wide success alone and our partnership with
P&G proves that we’re stronger together.”

The Recycling
Partnership has been the
catalyst for more than

$20 million
in new recycling
infrastructure— Keefe Harrison, Executive Directorof The Recycling Partnership

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Waste — Consumer Waste
PETC YCLEPETCORE EUROPE

PET bottles have the highest recycling rates of all post-consumer
plastic waste in Europe. However, new innovations in packaging
design are requiring enhanced recycling technologies. PETCycle,
a three-year project funded the European Union, is addressing
this issue. Started in 2016, PETCycle has two important
objectives. One is to demonstrate that tracer-based sorting
technologies can increase the sorting efficiency of difficult-torecycle PET bottles. The other is to show that sorted fractions
can be successfully introduced into non-woven applications.
Achieving these two objectives will contribute to improving
resource efficiency and stimulate new business models within
the Circular Economy.

P&G is a member of Petcore Europe, the Brussels-based
association representing the PET value chain in Europe.
Petcore Europe works to ensure that the PET industry andits associations are aligned to deliver increased value andsustainable growth of the PET value chain — from PET resin
producers to packaging manufacturers, recyclers and othervalue chain members. These types of partnerships enable moresustainable packaging innovations entering the marketplace.
The group is addressing a number of important issues in
the PET industry, such as improved sorting efficiencies aftercollection. They are also tackling other recycling initiatives, suchas recycling of thermoformed packs. P&G is chairing a newworking group that will focus on opaque and difficult-to-recycle
PET packaging containers.

L earn more about PETCycle“Petcore Europe already has close working relationshipwith leading brand owners and their respective
associations. Having now a global brand leader suchas P&G as a direct member is definitely a great asset
and a stimulating opportunity for Petcore Europe.”— Patrick Peuch, Executive Director of Petcore Europe
HOW2REC YCLE

How2Recycle is a standardized labeling system that clearlycommunicates recycling instructions to consumers. It is a
project of Green-Blue and The Sustainable Packaging Coalition.
P&G is a member of the Sustainable Packaging Coalition and isactively working to inspire consumers to recycle.

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Brand Sustainability Stories
For each of our brands, we are committed to offering outstanding performance,
while making a smaller footprint.

PAMPERS BABY DRY

FAIRY HAND DISH DETERGENT

Pampers Baby Dry has 16% less raw materials compared to theprevious diaper due its new absorbent core technology. This
will have a big positive impact: For instance, by moving to thisnew technology, manufacturing size 4 diapers in Europe saves
180,000 tons of material — the weight of about 120,000 midsize cars. It will also save 11% energy, equating to the electricuse in 5,000 homes for a year. And in Europe, it reduces thenumber of pallets we use by about 85,000. That means wesave about 2,600 trucks on the road in Europe alone — all while
delivering the outstanding performance of Pampers.

Fairy, present with different brand names in most parts of theworld, is one of the most concentrated dish washing liquids
on the market. One bottle of Fairy cleans up to 12,000 dishes
and lasts up to twice as long as other brands. By using Fairy,
consumers save 515 million bottles of dish liquid every year.
That means there are 23,000 fewer delivery trucks on the road,which translates into 15 million fewer kilometers traveled every
year. This also eliminates 74,000 metric tons of carbon dioxide,
equal to the exhaust from more than 15,000 cars.
NO MORE PHOSPHATESTIDE PURCLE AN

Tide purclean™ is the first bio-based laundry detergent withthe cleaning power of Tide. For many years now, Tide has
been on a journey of sustainability, and this is the latest step todeliver a more sustainable product that does not compromise
on cleaning performance. It is not just another eco-friendly
detergent; it is the first 65% USDA certified bio-based detergent
with the cleaning power of Tide.

INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT YIn May, we announced that we are eliminating phosphates
from all Fairy dishwasher tablets and all professional brands
globally by 2017. The result will be the removal of 14,000 tonsof phosphate annually — enough to cover 270,000 soccer
fields. We have already removed phosphates from our FabricCare business.
S ee a quick overview of our Nil-P efforts

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Pampers Baby Dry has

16%less material comparedto the previous diaper

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Working Together
The ReNEWW House,on the Purdue University
campus, has been
retrofitted to include
forward-thinking energy
and water savingfeatures.

Our suppliers are critical partners in improving the environmental sustainability of our endto-end supply chain. Since 2011, our External Business Partner Sustainability Scorecard has
driven transparency and collaboration in our supply chain. We are working with our strategic
and most-innovative partners and agencies to improve our products, supply chains andoperations in a sustainable way. This includes developing improved solutions for bio-alternative
materials, sustainable packaging, renewable energy, and logistics setups.

We work hand-in-hand with our partners to deliver
sustainability improvements. Here are some of the ways
we are working together for the better:• P&G and DuPont are collaborating on using cellulosic
ethanol, made from by-products of corn, in our laundry
detergents, which will result in fewer greenhouse gas
emissions.
• P&G took part in a cooperative learning experience throughthe ReNEWW House. (Retrofitted Net-Zero Energy, Water andWaste) This is a house at Purdue University built in 1929 andretrofitted to include forward-thinking energy- and watersaving features, as well as solar panels that produce bothelectricity and hot water. Systems in the home harvest waste
heat from appliances and “gray water” from showers andsinks. The project was launched as part of the Sustainable
Lifestyle Cluster of the World Business Council for Sustainable
Development, which is co-chaired by P&G and our partner
Firmenich. Key leaders from P&G and Firmenich lived in thehouse to inspire innovative thinking.

• P&G partnered with DOW Chemical to change the supply ofa key raw material for Downy Unstopables. It’s now supplied
mainly by rail instead of road freight. This significantly
reduces greenhouse gas emissions and is the equivalentof taking almost 300 passenger vehicles off the road.
• P&G asked our suppliers in India to come up with ideasthat reduce plastic usage with the same performance
characteristics. Our suppliers explored alternate resinmaterials and technologies. As a result, they developed
new ideas to innovate our Hair Care sachets and Fabric Carepackaging, resulting in a 16% reduction in plastic usage
and material transportation over a two-year period. We
are running national recycling platforms with Air Care in
Canada, U.S., U.K., France and the Netherlands working withTerraCycle. In these models, consumers can send us any Air
Care package at no cost, from anywhere in the country.

• TerraCycle and P&G partnered to recycle air and home carewaste through national recycling programs. Air and Home
Care Recycling programs are currently live in five markets –the U.K., Canada, U.S. and France (under the Febreze banner)and the Netherlands (under the Ambi Pur banner). To date,there are 3,321 participating collection locations with
consumers having sent in more than 250,000 pieces of airand home care waste for recycling.
• TerraCycle and P&G (specifically Head & Shoulders in
Europe) have been working to produce a shampoo bottle
using discarded plastic found on beaches. Together, wehave developed a supply chain whereby NGOs and otherorganizations can send in the material they’ve collectedduring their coastal cleanups. TerraCycle has customformulated an HDPE pellet that can be molded to make new
Head & Shoulders bottles.
L earn more about the External Partner
Sustainability scorecard

Watch the video detailing our
ReNEWW House experience

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The Power of P&G People
E ARTH WEEKINNOVATING FROM THE INSIDE OUT

Every April, the P&G community celebrates Earth Week. Our
sites come together to recognize the progress we have madeand to encourage employees to reduce their environmental
footprints — at work and at home. This year’s theme was“You Can Make a World of Difference.” Special activities at sites
across the world focused on communicating the good that theCompany was doing and how we are leading positive change.

We conducted a manufacturing sustainability hackathon to
reduce our environmental footprint in the London surfactant
plant. Fabric and Home Care Engineering organized the firstmanufacturing sustainability hackathon in Brussels in February.
The event gathered more than 70 volunteers. P&G shared
one year of manufacturing process data, along with available
electricity data, and posed the challenge to use advanced
analytics to reduce the London Chemical plant’s energy
consumption. The results were eye-opening, as we uncovered
10% energy savings potential with no equipment investment.

EX TERNAL RECOGNITIONS

For our efforts, we have been recognized externally including:• Being named on the North America
Dow Jones Sustainability Index• FTSE4Good Index• Stoxx Global ESG Leaders• Corporate Responsibility Magazine
Top 100 Best Corporate Citizens

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Global Measurement & Additional Operational Data
2020 Goal Measurement Systems
We go to great lengths to ensure rigor, accuracy
and transparency in our reporting. Below, we shareadditional information on our some of our 2020 Goal
Measurement Systems to help ensure clarity andtransparency on the data we are reporting:
GREENHOUSE GAS EMISSIONSFor purposes of monitoring progress against our goal and listing
emissions levels in charts and graphs, we utilize market-based
Scope 2 GHG emissions. For more information on the WRI/WBCSD GHG Accounting protocol or for additional perspective
on market- versus location-based GHG emissions, please visit:www.ghgprotocol.org.
LOW ENERGY C YCLE MACHINE WASHING LOADS

Low energy cycles are considered to use less than 0.4KWh
per wash cycle. In Europe, this would include front load 30° C
loads. In NA, this would include traditional and HE Cold Cycles,
as well as Normal and Quick HE warm cycles.

PACK AGING REDUC TION

WATER CONSERVATION

The average packaging reduction is calculated using productsthat represent the top 70% (by volume) of the categories thathave the largest impact on packaging use (Fabric Care, Home
Care, Baby Care, Feminine Care, Family Care, Oral Care, PCC,
Shave Prep, Hair Care and Hair Color). While a subset of overall
data, we believe it is representative of overall corporate data
and focuses resources on the biggest SKUs and categories thathave the biggest impact on packaging.

Our goal to reduce water use in manufacturing facilities by
20% per unit of production applies to freshwater consumption,
which means freshwater intake from the following sources:

REC YCL ABILIT Y OF PACK AGING• Surface water — non-brackish rivers, lakes, creeks, etc.,
at any quality they deliver

For purposes of tracking progress against our goal, a package
is considered recyclable when there is an in-market, at-scale
recycling system in place for that material type (e.g., collection,sortation, processing for end use, established end market
for collected material). While we require large-scale systems
to be in place in at least one geography, we do not requirea minimum percent access or recovery rate per package inevery country or market where a package may be sold for the
package to be considered recyclable for purposes of tracking
progress versus our goal.
PAPER PACK AGING

Data for calculating progress versus our paper packaging goal
was self-reported by our suppliers. The data collected this year
covered materials procured directly by P&G as well as contract
manufacturers and covered over 95% of our global spend.
RENEWABLE ENERGYWhen calculating the renewable energy powering our plants,
we include the renewable energy level of the local electrical
grid that provides power to the plant.

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DIVERSIT Y & INCLUSION• Tap water — water supplied by municipalities or thirdparty companies via piping systems or trucks, at any
quality they deliver• Net water via purchased steam• Ground water from site wells

BASELINE RESTATEMENT

This year, P&G adjusted our GHG emissions baseline inaccordance with the principles in the WRI and WBCSD
Corporate Standard for Greenhouse Gas Accounting. Changes
included adjustments for acquisitions/divestitures as well asother minor modifications and corrections to historic data.
Our original baseline was 5,488,224 metric tons. Our revised
baseline, which we will use for calculating progress versus GHG
emissions reduction goals, is now 5,467,933 metric tons.
As part of this work, we also updated our baselines for energy,
water and waste. Original energy baseline was 67,904,220
gigajoules. It is now 67,030,244 gigajoules. Original waterbaseline was 77,049,114 cubic meters. It is now 76,567,826
cubic meters. Original waste was 354,563 metric tons. It
is now 351,533 metric tons. The baseline year remains thesame — P&G’s FY 09/10.

GENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

81mption

ENVIRONMENTAL SUSTAINABILIT Y

Global Measurement & Additional Operational Data
COMPLIANCE WITH L AWS AND REGUL ATIONSNOTICES OF VIOL ATION

AIR EMISSIONS

There are numerous health, safety and environmental
requirements worldwide. Plants are subject to safety rules
and emission limits with operating requirements that may
be embodied in sources such as statutes, regulations, laws
and permits. It is P&G’s intent to comply with both theletter and the spirit of statutes, regulations, laws and permit
requirements. Identified compliance issues are treated seriously,
and all noncompliance matters are resolved as expeditiously
as possible.

We continually strive for zero notices or penalties. The charts
below summarize data from the last three years and provide
perspective on notices of violation (NOVs) received during
FY 15/16. Note, some fines are still under review but areincluded in the total numbers.

Each site assesses total suspended particulates, volatile organic
compounds (VOCs), carbon monoxide (CO), nitrogen oxides(NOX) and sulfur oxides (SOX). The chart below summarizes
data from the last three years.

10 – production adjusted

Number

2014

29
27
34

$46,250$444,708$95,460

Number of NOVs

Fines

7
Air-Based3
Solid-Waste7
Based
Paperwork
2
Transportation4
Based
Other
3
Worker Safety
3
Total
29
Water-Based.70

Air Emissions by GBU
Thousands of metric tons

2016
2015

U

Fines

$17,485$1,500$8,372$20$10,370$1,503$7,000$46,2509

FY15/1611

FY14/1512

Baby, Feminine& Family Care

BeautyFabric & Home Care

Grooming

Health CareOther

FY13/14

FY15/16

9.35

FY14/15
INTRODUC TION

E THICS & CORPOR ATE RESPONSIBILIT Y

COMMUNIT Y IMPAC T

DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

82