2017

Citizenship
ReportSTART ›

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2ENVIRONMENTAL SUSTAINABILIT Y

Table of Contents
Introduction

3

Diversity & Inclusion

47

Environmental Sustainability

86

Leadership Statement

3

Overview

48

Overview

87

Issue Prioritization

5

Message from William P. Gipson

50

Message from Shailesh Jejurikar

89

P&G at a Glance

6

51

Vision and Progress

90

A Streamlined and Strengthened
Portfolio in 10 Categories

7

Building Inclusion as a Business
and Cultural Strategy

Brand Stories

94

56

Climate98

Partnering with our Suppliers

8Creating Value ThroughDiversity & Inclusion
Advocating for Dialogue and Actionthat Drives Progress

59

Renewable Energy

99

Energy Conservation

101

Bringing Out Our Best Everyday

63

Greenhouse Gas Emissions

102

Strengthening Our Legacy

68

Low-Energy Washing104

Renewable Materials

105

Ethics & Corporate Responsibility

9

Overview

10

Message from Debbie Majoras

11Internal Management and Controls

12

Doing the Right Thing with Our Employees

14

Doing the Right Thing with Our Consumers

15

Doing the Right Thing with Our Supply Chain

17

Speaking Up

18

Stakeholder Engagement

19

Community Impact

21

Overview

22

Message from Marc Pritchard

24

Corporate Programs

25

Brand Programs

29

Regional Programs

31

Employee Well-Being

43

Recognitions

46

Gender Equality

71

Packaging

106

Overview

72

Responsible Forestry

108

Message from Carolyn Tastad

74

Palm Oil113

Leveraging our Voice in Advertising and Media

75

Water

117

Supporting Education for Girls andEconomic Opportunities for Women

80

Waste

120

The Power of P&G People

128

Creating an Inclusive Environment within P&G

83

Recognitions

129

The Power of Partnerships

85

Environmental Resource andWaste Summary

131

Global Measurement andAdditional Operational Data

132

Worldwide Health, Safety andEnvironment Systems

135

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INTRODUCTIONETHICS & CORPOR ATE RESPONSIBILIT Y

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Leadership Statement

Dear Stakeholders,I’m pleased to share our 2017 Citizenship Report, which details how
P&G’s Citizenship efforts are built into the way we deliver our businessresults. This report provides a holistic view of how P&G’s Citizenshipwork comes together — across brands, employees, operations andbusiness partners — to make meaningful differences in people’s lives
around the world.
Every day, we work to be a force for good and a force for growth.
Our aspiration is to positively impact all our stakeholders in eacharea of our Citizenship work: Ethics & Corporate Responsibility,
Community Impact, Diversity & Inclusion, Gender Equality andEnvironmental Sustainability.
(continued on next page)

David S. Taylor
Chairman of the Board,
President and Chief Executive Officer3

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Leadership Statement(continued from previous page)P&G has been a leader in environmental sustainability for
decades and continues to make strong progress — meeting our2020 energy, transportation, waste and water goals ahead ofschedule. We’re committed to continuing to innovate in theseareas. For example, we partnered with TerraCycle and SUEZ
to bring to market in France the first-ever recyclable shampoo
bottle made from beach plastic. And we recently created a
new partnership with Innventure called PureCycle, the basis ofwhich is a new-to-the-world technology that has the potential
to revolutionize the plastics recycling industry. This technology
purifies recycled polypropylene plastic back to a virgin-like formand can open up billions of pounds of plastic material to meet
an unmet demand for like-new recycled plastic — something thatwas not possible before.
P&G makes an impact in communities around the world throughour people, brands and partners by delivering the comforts ofhome, health and hygiene. We do this with programs like Tide
Loads of Hope, which provides laundry services to those affectedby disaster; P&G Children’s Safe Drinking Water Program, whichhas provided more than 12 billion liters of clean drinking waterin communities around the world; and our Pampers UNICEF
campaign, which has helped eliminate maternal and newborn
tetanus in 20 countries — more than halfway to our goal ofeliminating neonatal tetanus from the world.
We treat all employees with respect and encourage them tobring their full selves to work, knowing that fully leveraging ourdiversity elevates our collective thinking and improves our ability
to win. To accelerate our progress in diversity and inclusion, we
recently joined 300 other companies to form the CEO Action for
Diversity & Inclusion. This initiative focuses on three key areas:
creating a trusting workplace environment for dialogue,

Ethics & Corporate
Responsibility

Community
ImpactDiversity& Inclusion

understanding unconscious bias, and sharing best — as well as
unsuccessful — practices to learn from. This is important not
only for P&G and the other members of the coalition, but also
for our society. By creating an environment where diverse
people can come together and offer their best thinking, ideas
and performance, more ideas for growth are realized. As atestimony to this effort, we received a perfect score on the
Human Rights Campaign Foundation’s Corporate Equality
Index for the fourth consecutive year.
We aspire to build a better world for all of us — inside andoutside of P&G — free from gender bias and with equal voice andequal representation for women and men. As the world’s biggest
advertiser, we can spark conversations that motivate changesuch as with our Ariel #SharetheLoad, SK-II #ChangeDestiny
and Always #LikeAGirl campaigns. In addition, this year, inconjunction with International Women’s Day, we launched our#WeSeeEqual video, which has been widely recognized for the
inclusive way it promotes equality.
P&G’s commitment to Citizenship is supported by our Purpose,
Values and Principles. They are the foundation on which thisCompany was built, and they have been our guiding force
for 180 years.

GenderEquality

Environmental
Sustainability

I want to acknowledge and thank P&G’s many valued
partners — businesses, NGOs and governments across theglobe. In addition, our efforts align with the United Nations
Sustainable Development Goals, which are focused on ending
extreme poverty, fighting inequality and injustice, and tacklingclimate change.
We’re proud of what we’ve accomplished, but we know there
is more to do to continue to make progress in each area. Thisis important work. Consumers care about the company behindthe brands they purchase and use. They want to know that the
products they are buying come from a trusted source. We’reworking to build on that trust every single day, and we’ll do it
within our Purpose, Values and Principles. We’ll always do it
the right way, with integrity and with competitive passion.
That’s P&G at our best.

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

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Issue Prioritization
We conducted an issue prioritization exercise to better
understand stakeholder views on citizenship issues relevant
for us. We consulted around 80 stakeholders through a
combination of on-line surveys and interviews. Stakeholders
included investors, civil society groups, retailers, suppliers,
industry organizations, experts and P&G employees. The resultsfrom the issue prioritization exercise reinforced our strategic
focus areas of Ethics & Corporate Responsibility, Diversity &Inclusion, Gender Equality and Environmental Sustainability.

It included the following learnings:
Insight 1
Governance & Ethical Conduct, Human & Labor Rights,
Corporate Transparency and Product Safety & IngredientTransparency were rated as high priorities by stakeholders.
Our ongoing commitment and efforts in these areas areembedded within our entire Citizenship report and highlighted
in our Ethics & Corporate Responsibility section.

Ethics & Corporate Responsibility

We asked our stakeholders insurveys and interviews to share
their top citizenship issues.

Insight 2
Climate, Water, Waste, and Packaging are the current major
focus areas of our environmental sustainability pillar, and resultsof the issue prioritization exercise reinforced the importance of
these issues for our stakeholders. You can read about our current
efforts throughout the Environmental Sustainability section ofthis year’s report.

Environmental Sustainability

Insight 3
The topics of “Promoting Sustainable Lifestyles” and“Sustainable Product Design & Innovation” were also importantto our stakeholders. Our brands continue to play a leading rolein driving innovation and engaging with our consumers on awide range of topics. In this year’s report, you will see multiple
examples of our brand efforts and this will continue to be afocus area for P&G moving forward.

ENVIRONMENTAL SUSTAINABILIT Y

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P&G at a Glance
Our aspiration is to serve the world’s consumers
better than our best competitors, in every
category and every country where we choose tocompete — creating superior shareholder value
in the process. We work hard every day to makequality products and services that improve people’s
lives, now and for generations to come.

2017 NET SALES BY BUSINESS SEGMENT

2017 NET SALES BY MARKET MATURITY(Excludes net sales in Corporate) aby, Feminine,
B
and Family Care 28%
Beauty 18%

Developed Markets 65%

Fabric and Home Care 32%

Developing Markets 35%

Health Care 12%
Grooming 10%

Amounts in billions,
except per share amounts

2017

Net Sales$65.1

Operating Income$14.0

Net Earnings Attributable to P&G$15.3

Net Earnings Margin from
Continuing Operations

15.7%

Diluted Net Earnings per Common
Share from Continuing Operations 1$3.69

Diluted Net Earnings per
Common Share 1$5.59

Operating Cash Flow

$12.8

Dividends per Common Share$2.70

Diluted net earnings per common share are calculated basedon net earnings attributable to Procter & Gamble.

1

2017 NET SALES BY GEOGRAPHIC REGION

North America 45%

Europe 23%

Latin America 8%

Asia Pacific 9%

India, Middle East,
and Africa (IMEA) 7%

Greater China 8%6INTRODUCTIONETHICS & CORPOR ATE RESPONSIBILIT Y

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A Streamlined and Strengthened
Portfolio in 10 Categories
During fiscal 2017, P&G completed the transformation of its brand portfolio. We now havea much stronger, more focused portfolio that is better positioned to win. P&G has leading
market positions in these 10 categories, and they leverage the Company’s core strengths —consumer understanding, branding, product and package innovations, and go-to-market
capabilities. These are daily-use categories where purchase intent and choice are driven bya specific job to do and the product’s effectiveness in doing it. Daily-use categories drive
shopping trips and sales, and loyalty to brands is often higher in these categories.

Fabric Care

Home Care

Baby Care

Feminine Care

Family Care

Grooming

Oral Care

Personal
Health Care

Hair Care

Skin and
Personal Care

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8Partnering with our Suppliers
PARTNERING WITH OUR SUPPLIER FOR SUCCESSPARTNERING FOR SUSTAINABLE INNOVATIONOur External Business Partners, or Suppliers, play a critical role inadvancing Citizenship at P&G. Through our Supplier Citizenshipprogram, we partner with our Suppliers to drive Citizenshipthroughout our Supply Network and deliver even greater impact
and innovation. Throughout this report, you will see examples of
how we are bringing our Suppliers together to collaborate moreclosely with P&G in all of our Citizenship priority areas. When weare synchronized with our Suppliers, the possibilities are endless.

In 2016, P&G launched the Sustainability Partner Innovation
Network (SPIN), a unique network that aims to accelerate
our Environmental Sustainability journey through external
capability and partnerships. We brought together twenty of
our key Suppliers representing all spending areas, including
Chemicals, Packaging, Logistics, Marketing and Services tocollaborate directly with P&G business leaders on problems andopportunities in sustainability. We know that collectively with
our suppliers, we can drive transformational change for thebusiness and the planet through innovation, and this teamis directly engaged in many new P&G projects thanks to thisinitiative. Here are a few examples of how we’ve partneredwith Suppliers to bring Sustainable Innovation to Life:

Learn more about Supplier Citizenship

BRINGING SUPPLIER DIVERSITY TO LIFE
THROUGH THE COMMUNITY OF PARTNERS
Supplier Diversity has been abusiness strategy at P&G since
1976 because we know thatwhen our Supply Network
reflects the diversity of ourconsumers, employees, andstakeholders, our business grows
and our community thrives. We partner with organizations likethe National Minority Supplier Development Council (NMSDC)
to identify and develop strong diverse-owned businesses. The
NMSDC Annual Conference is the largest annual gatheringof the Supplier Diversity industry, and last year, we leveraged
this conference as a platform to bring our supplier ecosystem
together. We invited more than 50 of our suppliers, both diverseowned and majority-owned, to attend the conference with morethan 100 P&G leaders to connect, collaborate and grow. We
helped our majority-owned suppliers make over 200 connections
with prospective diverse suppliers to ensure the spirit of Supplier
Diversity penetrates all levels of our Supply Network.

CREATING GENDER EQUALITY THROUGH
GLOBAL BUSINESS TRAINING
In 2016, we expanded our Supplier Diversity efforts to include
woman-owned businesses outside of the United States inpartnership with WEConnect International and UN Women.
Our goal is create a transformational impact in our business andcommunity, and we believe it’s important to uplift the capability
and confidence of women entrepreneurs to work with large
corporations like P&G. Last year, we partnered with WEConnect
International to launch Women’s Business Development
Programs in five countries — Turkey, Mexico, Nigeria, China, andSouth Africa. We brought together local women entrepreneurs
to learn from P&G leaders and each other to develop theirbusiness strategies and skills, tailoring the program to meet theneeds of each country. Through this initiative, we helped develop
more than 100 women entrepreneurs last year, all who will makea lasting impact on their communities.

Febreze One Package Development
We partnered with Netherlands-based AFA Packaging to bringto market a package for the Febreze brand that meets consumer
needs while delivering an aerosol-like performance without theuse of propellant.
Enzyme Compaction
In partnership with Danish Supplier Novozymes, we developed
a new technology that enables us to deliver the same cleaning
benefit at significantly less volume, reducing emissions fromtransportation and production.

Our partnershipenables us toreduce emissions
from transportationand production.

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Ethics &Corporate
Responsibility
Overview
Message from Debbie Majoras
Internal Management and Controls
Doing the Right Thing with Our Employees
Doing the Right Thing with Our Consumers
Doing the Right Thing with Our Supply Chain
Speaking Up
Stakeholder Engagement9INTRODUCTIONETHICS & CORPOR ATE RESPONSIBILIT Y

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Ethics & Corporate Responsibility Overview
At P&G, we serve nearly 5 billion people around the world with our brands. We haveoperations in nearly 70 countries and have one of the strongest portfolios of trusted,
quality and leadership brands. As we serve the world’s consumers, we believe in andhave publicly committed to doing what’s right and being a good corporate citizen.
We define this as improving transparency, building collaborative partnerships,
respecting human and labor rights, and sourcing responsibly. This influences all wedo, and we take this responsibility seriously. Our philosophy is that a reputation oftrust and integrity is built over time, earned every day, and is what sets us apart.
CON

SUME RS

S

OP

PE

AN

D

G

Integrity
Leadership
Ownership
Passion for Winning
Trust

LE

OUR VALUESBR

Learn more about our PVPs

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, our shareholders
and all stakeholders, and they are consistent with the Company’s
Purpose, Values and Principles.

P&G

Our Purpose, Values and Principles are the foundation of
who we are. Our Purpose is to improve consumers’ lives insmall but meaningful ways, and it inspires P&G people to makea positive contribution every day. Our Values of Integrity,
Leadership, Ownership, Passion for Winning, and Trust shape
how we work with each other and with our partners. And ourPrinciples articulate P&G’s unique approach to conducting
work every day.

P&

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Message from Debbie Majoras

Doing the right thing at P&G is foundational to how we work together.
Even under the pressures of complex business issues in a highly volatileenvironment, how we create value is as important as the results themselves.
As our employee survey reminds us every year, employees take great pridein our Purpose, Values and Principles, and these PVPs consistently remain asource of strength and advantage to this Company. The understanding that
we will operate responsibly, ethically, and with integrity not only binds andguides us internally, but it builds trust externally. This trust then leads toincreased value creation for our consumers, customers and shareholders.
— Debbie Majoras
Chief Legal Officer and Secretary

ENVIRONMENTAL SUSTAINABILIT Y

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INTRODUCTIONETHICS & CORPOR ATE RESPONSIBILIT Y

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DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT YInternal Management and Controls
Our objective is to create industry-leading
value by maintaining and enhancing our strong
corporate reputation through a strong ethics
and compliance culture that supports conserving
resources, protecting the environment, improvingsocial conditions, respecting human and laborrights, and empowering individuals and thecommunities in which we live, work and serve.
We start with Ethics & Corporate Responsibility as thefoundation for the other four priority areas: 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. The
executive sponsors of the priority areas come together to form
the Citizenship Board with the Chairman of the Board, President
and Chief Executive Office as the Chair.

Ethics &Corporate
Responsibility
Executive Sponsor
Chief Legal Officer

Diversity& Inclusion
Executive Sponsor
Chief Human Resource Officer,
Chief Diversity Officer

Community
ImpactCitizenship
Board

Executive Sponsor
Chief Marketing Officer

Chair
Chairman of the Board,
President & Chief Executive Officer

GenderEquality

Environmental
Sustainability

Executive Sponsor
Selling & Market
Operations President

Executive Sponsor
Global Business
Unit President

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INTRODUCTIONETHICS & CORPOR ATE RESPONSIBILIT Y

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DIVERSIT Y & INCLUSIONGENDER EQUALIT YInternal Management and Controls
Our Citizenship efforts are governed by:
Our Worldwide Business Conduct Manual, which contains theglobal standards P&G employees must follow to ensure they
uphold P&G’s Purpose, Values and Principles in their daily work

Worldwide Business Conduct Manual

Our Employee Rights Policy, which outlines our commitment
to our employees to uphold our PVPs and respect international
labor standards

Employee Rights Policy

Our Sustainability Guidelines for External Business Partners,
which outline the values we seek in the suppliers we dobusiness with

Our Privacy Policy, which outlines our commitment tomaintaining your trust by protecting the personal informationthat we collect and use

Privacy Policy

Our Product Safety and Compliance, which details the steps
we take to ensure the safety of consumers who use our products

Product Safety and Compliance

Our Environmental Policies & Practices, which outline ourcommitments to preserving our planet for generations to comeEnvironmental Policies & Practices
Guidelines for External Business Partners

Our Human Rights Policy Statement, which outlines ourcommitment to respect human rights and the expectation thatour business partners share this commitment

Human Rights Policy Statement

Our Social Policies & Practices, which outline the additional
commitments we have made to responsible operations

Social Policies & Practices

ENVIRONMENTAL SUSTAINABILIT Y

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14Doing the Right Thingwith Our Employees
Collectively, our PVPs articulate who we aspire
to be as an organization and as individuals.
We know that P&G employees and seniorleaders throughout the organization believein the personal and business value of this PVP
foundation — our PVPs are consistently cited in
our annual employee survey as the top aspect
about P&G they would not change. We seek
to hire individuals whose personal values are
consistent with our PVPs, and — through training,communication and other employee programs —we work to sustain and promote our strong cultureof ethics and compliance.
HEALTHY PEOPLE; HEALTHY BUSINESS
We touch and improve the lives of our employees by having
health and wellbeing programs at all P&G locations aroundthe world. We ensure that sites provide employees with: theappropriate level of occupational health assurance programs
and services; comprehensive and effective emergency care forour employees, onsite contractors and visitors at all our facilities;
quality health services and Vibrant Living programs to enablepeak performance by inspiring meaningful, happy, healthy
lives; WorkLife Solutions and Employee Assistance Programs
to support employees and their families; and best-in-classcompensation and benefits policies and programs.

We educate employees todo the right thing throughevents, contests, and fun
and inspiring videos.

CELEBRATING AND BUILDING OUR CULTURE
Every year, we celebrate our shared PVP foundation with the“Do the Right Thing Celebration.” P&G locations around theworld create their own employee engagement events tied to a
global theme from our Worldwide Business Conduct Manual:
Respect, Integrity or Stewardship. Events feature games toengage employees and raise awareness, contests, and fun andinspiring videos. Sites are recognized for outstanding results inthe areas of creativity, engagement and passionate leadership.
Though P&G sets high standards for all employees, those who
personally demonstrate commitment to ethics and compliancecan also be recognized by peers or managers with a special“PVP Champion” designation.

In addition to on-site activations, we have invested in a libraryof engaging, custom-built training courses, which are available
to all employees as a resource and are further assigned basedon role and location to maximize relevance and impact. We also
recently partnered with a renowned behavioral scientist andan award-winning documentary filmmaker to create a series ofshort films that spotlight clinical research on integrity and feature
P&G leaders and employees reflecting on “doing the right thing.”
This miniseries of five episodes has been hailed for its cinematicstyle, the genuine and unscripted participation by executive
leadership, and its candid discussion of human vulnerability to
the challenges, pressures and unseen psychological factors forwhich we all must be vigilant.

We created five shortfilms that spotlight clinicalresearch on integrity, with
P&G employees reflecting
on “doing the right thing.”

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15Doing the Right Thingwith Our Consumers
Since 1837, we’ve built a rich heritage of positively
impacting consumers’ lives with brands that makeeach day a little better.

BEING SAFE, FEELING SAFEAND INGREDIENT CHOICES
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 thoroughly
evaluate its safety through a science-based process and ensurecompliance with all global and local regulations. We want ourconsumers to be able to trust the quality and safety of all our
products, and we provide information to enable consumers
to make informed choices about the products they use everyday. We understand that feeling safe can be a different matter
altogether. Consumers may be curious about the actual
ingredients we choose, so we share information on bothwhat’s in our products and what’s not in our products, basedon common questions that have been asked.

We thoroughly evaluate thesafety of a product before
it is marketed, and ensure
it’s compliant with local andglobal regulations.

Read about our science-based process
Read about our ingredients

We ensure critical businessand personal information andoperations are maintained withthe appropriate confidentiality
and integrity.

KEEPING SECURITY STRONGPROTECTING INFORMATIONOur Global Privacy, Cybersecurity and IT team works withbusiness and risk management experts around the globe
to address evolving consumer and employee privacy
and technology laws, and to protect our Company andits stakeholders’ business and personal information. Our
stakeholders — whether consumers, employees, shareholders
or vendors — trust that P&G will have appropriate privacy
and information security controls will be in place to ensure
critical business and personal information and operations aremaintained with due confidentiality, appropriate integrity, andare available when needed. This team provides guidance daily,
from small local market promotional programs to enterprisewide technical architecture solutions, to ensure we are meeting
relevant legal requirements and, as importantly, our stakeholders’expectations of trust.

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Doing the Right Thingwith Our Supply Chain
Our supply chain is the backbone of our products,
and we are making intentional choices to leverage
the footprint of our suppliers, buyers andmanufacturing sites to be a driver for good. From
the transparency of our sourcing practices to aid
consumer decision-making, to growing shareholder
value through innovation-driving programs likeglobal supplier diversity, P&G is proud to be aleader in supply chain responsibility.

RESPONSIBLE SOURCING
Responsible Sourcing is a critical pillar in our Citizenship program,and one that every P&G buyer touches through his or her work
to drive environmental sustainability and human and social
rights. Our vision is to be the company with the most responsible,
ethical and transparent supply chain. Further, we intend tomove beyond basic compliance, not resting on the status quoof “doing no harm,” to striving to be a force for good. We will
execute this vision by focusing across the global business, withgreater emphasis on high-risk countries and spend areas. We will
partner externally with key NGOs and suppliers to ensure we arefocusing on the most critical areas. We mapped our salient issues
and have proactively developed strategies to not only reduce
supply chain risk, but also to protect our environment and theworkers who directly and indirectly support our supply chains.
Further, we will operationalize this work by driving accountability
with our buyers, suppliers and internal stakeholders throughtraining, incentives and sourcing process integration.

Our vision is to be thecompany with the most
responsible, ethical andtransparent supply chain.

We empower responsible supply chains through a supplier
education and audit system. Our risk-based program supports
this effort by assessing partners through third-party auditsthat identify and remediate issues with labor standards, healthand safety concerns, environmental issues and business ethics.
We screen new vendors through a robust third-party risk
management process to identify and remediate top risks before
hiring. In these and other efforts, we build a robust systemof business partners that is fully integrated and synchronizedwith P&G’s business and values.

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Doing the Right Thingwith Our Supply Chain
SUPPLIER DIVERSITY
P&G is committed to growing and developing our business withdiverse suppliers, because we believe that a diverse group ofbusiness partners will out-innovate and outperform a nondiverse group of business partners. Supplier Diversity is P&G’s
program to grow and develop supply-side business: globallywith women-owned businesses, and in the United Stateswith minority-owned businesses; Lesbian, Gay, Bisexual andTransgender-owned; disability-owned; and US Military Veteranowned businesses. This program is managed by Purchaseswith a Corporate Supplier Diversity Manager who reports to
our Chief Purchasing Officer. Supplier Diversity is predicatedon creating value in our business and value in our community.
When we invest with diverse suppliers, we not only strengthen
our innovation and go-to- market capabilities, but also touchand improve the lives of the women and men who work inthese companies — and through them, their families and thecommunities in which they live and work.

We invest with diverse
suppliers to touch and improve
the lives of those who workfor these companies, as well as
their families and communities.

Supplier Diversity is a competitive advantage for P&G. Since welaunched this program four decades ago, we have developed
economic inclusion for all business owners while delivering Total
Shareholder Return (TSR) in qualitative and quantitative ways.
• Diverse suppliers outperform non-diverse suppliers in ourformal Supplier Performance Development Process surveys.
• Our diverse supply base delivers above-average results in
key metrics like hiring diverse employees and engaging incommunity impact activities.
• Our strong Supplier Diversity program delivers value to P&G’s
key retail customers who support and encourage diverse
supplier inclusion.
• The adversity that diverse suppliers often face results in theirability to drive step-change innovation, and some of our mostinnovative programs have been driven by our diverse suppliers.
• P&G’s diverse consumer base is increasing buying power at a
rate that is disproportionate to its population growth; diverse
consumers are loyal to P&G brands and are committed tocontinuing to purchase products from companies like P&G
who support diversity in the supply chain.
From a principles standpoint, we believe in the power of
economic inclusion. When the ownership of our supply
base reflects the diversity of our employees, consumers andstakeholders, our business grows and our communities thrive.

SUSTAINABLE INNOVATION
P&G aims to reduce our environmental footprint throughpartnership with our business partners. We have connected
a team of key suppliers to collaborate with P&G to solve our
supply chain’s most challenging problems, driving innovationthat is sustainable for both the business and the planet. We aredeveloping unique plans to deliver value to our supply chainthat can both develop consumer-noticeable innovation andalso drive environmental sustainability.

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Speaking Up
At P&G, we strive to promote a work environment of confidence
and trust. Our employees hold themselves and one anotheraccountable for operating with trust and integrity, for stepping
up as leaders and owners of the business, and for balancing
stewardship with a passion to win. P&G is committed tocreating a work environment that fosters open communicationand supports employees in reporting potential violations.
Violations of the law or Company policies can be reported at
the Worldwide Business Conduct Helpline, which is staffed byan independent third party and provides an anonymous way
to report concerns about potential violations 24 hours a day,
7 days a week. P&G is committed to reviewing all allegations ofwrongdoing with trained teams who ensure thorough, impartial
and fact-based investigations. Proper investigation is essential
to promoting a culture of integrity, reducing the likelihood ofincidents occurring and increasing willingness to proactively
raise concerns. It is an important part of our commitment toprevent and detect wrongdoing. Retaliation of any kind isinconsistent with our Values of Integrity and Trust and simply
will not be tolerated.

Employees areencouraged to “speak up”
and report concerns to a
24/7 hotline staffed by anindependent third party.

Worldwide Business Conduct Helpline

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Stakeholder Engagement
We seek meaningful collaboration andengagement with our stakeholders to be a good
corporate neighbor and to improve lives in thecommunities where we live 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.

We want to hear from you — contact us

COMMUNITIESEach P&G production facility has site-specific activities to build
appropriate and constructive relationships with local authorities,
industry associations, residential and business neighbors, actiongroups, thought leaders and news media. Depending on thecultures and interests of individual communities, this can range
from regular official meetings, during which new information isshared or questions are answered, to more informal meetings.

Each P&G facility uses sitespecific activities to build
constructive relationships withlocal authorities and neighbors.

EXTERNAL BUSINESS PARTNERS
We work closely with our external business partners. P&G’s
Sustainability Guidelines for External Business Partners set
our expectations with our supply base regarding Social andEnvironmental Responsibility. We actively seek business
relationships with partners that share these values, and that
promote high standards within their own supply chains.

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Stakeholder Engagement
AUTHORITIES: LOCAL – 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 to ensure that theinterests of our employees, consumers and shareholders are
fairly represented at all levels of government around the world.
We are committed to being transparent about our politicalinvolvement globally, and our policies and procedures onappropriate contact with government officials prohibit bribery
and any kind of improper influence.
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 engage in the politicalprocess to ensure that theinterests of our employees,
consumers and shareholders
are fairly represented.

Our political involvement
P&G Core Tax Principles

NON-GOVERNMENTAL ORGANIZATIONS (NGO):
LOCAL – REGIONAL – GLOBALPRINCIPAL INDUSTRY AND BUSINESSASSOCIATIONS

P&G frequently enters into dialogue with NGOs to understandtheir concerns and cares. NGOs and our engagement with an
NGO can vary by area of interest (e.g., environmental, consumer,
human rights) and by geographic links (from local to global).

P&G holds membership in many industry and businessassociations whose activities are related to P&G’s activities.
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 monitoringand sharing of best practices. Participation in businessassociations is controlled by Company policy.

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Community
ImpactOverview
Message from Marc Pritchard
Corporate Programs
Brand Programs
Regional Programs
Employee Well-Being
Recognitions

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22Community Impact Overview
Our brands are part of everyday life. We’re there with people when they wash theirhair, clean their clothes, diaper their babies, and care for their homes. We’re also
there in times of greater need — when our products and our help matter more thanever. We focus our efforts where we can uniquely add value — health and hygieneand comforts of home. These are just a few examples of our work in communities
around the globe.

BRINGING THE POWER OF CLEAN WATER
TO FAMILIES AROUND THE WORLD
Now in its 13th year, the P&G Children’s Safe Drinking Water(CSDW) Program continues to make a meaningful difference by
providing clean water to communities in rural areas and during
emergency situations. When families are forced to drink waterfrom contaminated sources, the impact to daily life is significant.
Health suffers, children miss school, and families struggle to earnstable incomes. Working with more than 150 global partners,
we are contributing to the worldwide effort to achieve UN
Sustainable Development Goal #6  —  clean water and sanitation
for all. We have delivered more than 12 billion liters of cleanwater and are on our way to our goal of 15 billion by 2020.
The life-changing technology, invented by a P&G scientist, packs
the power of a water treatment plant in a four-gram packet.
With just a bucket, a spoon, a cloth and a P&G Purifier of Water
packet, a family can clean 10 liters of water in only 30 minutes.

P&G has delivered more than

12 billion
litersof clean water.

BIG IMPACTS COME IN SMALL SIZES

We’ve responded to more than

20 global
disasterswith product donations
and services this year.
IMPROVING LIVES IN TIMES OF NEEDP&G provided product donations and services in response to
more than 20 disasters globally, and helped millions of people
through our disaster relief programs, working in collaboration
with numerous disaster relief partner organizations. Brands suchas Always, Gillette, Head & Shoulders, Oral-B, Pantene, Pampers,
Vicks and many others donated thousands of products to thosein need around the world. We provided disaster relief grants topartners on the ground to help bring some of the comforts ofhome to those impacted by natural disasters.

Pampers believes that when babies enter the world, they
deserve to feel love at first touch. This is why P&G has partneredwith Neonatal Intensive Care Unit (NICU) nurses to design andintroduce the new Pampers Preemie Swaddlers Size P-3 diaper,
which is three sizes smaller than newborn diapers. It is designed
to fit the tiniest and most vulnerable premature babies, who
can weigh as little as one pound, wrapping them in Pampers
most trusted comfort and protection. Moreover, in honor ofWorld Prematurity Day, Pampers went on Facebook, Twitterand Instagram with its #TouchesOfLove campaign and donatedmore than $100,000 to the March of Dimes.

Pampers Preemie Swaddlers
Size P-3 diaper is designed
to fit the tiniest and mostvulnerable premature babies,
weighing as little as 1 pound.

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23Community Impact Overview
HELPING HAND IN THE REFUGEE CRISISIn Turkey, we donated more than 300,000 P&G products
to help touch and improve lives of people needing assistance,
including thousands of Syrian refugees. The Turkish Red Crescentacknowledged the contributions with two gold medals. The
Turkish President hosted the ceremony recognizing P&G, andthe Minister of Family and Social Policies presented the awards.
We are privileged to be part of the solution, through a long-term
partnership with the Turkish Red Crescent.

P&G has introduced acommunity Centre in Kenya,providing basic sanitationand empowerment throughpay-per-use services.

COMING TOGETHER IN THE COMMUNITY
P&G has introduced a first-of-its-kind community Centre,
located in the poverty-stricken region of Kibera, Nairobi in
Kenya. Together with our NGO partner, Human Needs Project,
P&G is pioneering innovative ways to make sustainable lifestyles
irresistible and affordable, even in such a stressed environment.
It is a life-transformational 1-stop-shop providing much-needed,
pay-per-use services such as laundry, sanitation and hygiene tothe challenged community. Since it opened in March 2015, theCentre has served more than 230,000 people with an estimated
750 transactions every day, helping to improve the quality oflife for those in need in Kibera.

A GREATER GOOD
In line with the P&G Citizenship goal to bring comforts of hometo those who need them the most, P&G Italy, in partnershipwith the Office of Papal Charities and the Whirlpool Corporation,
led the creation of a free laundry service for homeless anddisadvantaged people in Rome. P&G supplies Dash and Lenor
fabric care products, and Whirlpool donated washing machines,
dryers and irons. P&G Italy first partnered with the Office of
Papal Charities in 2015 when we began supplying razors andshaving cream to the facilities in St. Peter’s Square establishedby Pope Francis that offer free showers, haircuts and shaves toRome’s homeless population.

P&G supplies Dash andLenor fabric care products
for a free laundry service
for the homeless anddisadvantaged people
in Rome.

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Message from Marc Pritchard

Giving back to the communities where we live and work is not new to P&G.
Helping people in need has been part of our Company’s Purpose and Values
since P&G was founded. We work hard to make every day better for those
who use our brands, and for those in need of our brands and our helping
hands. We provide support where our Company, our people and our brands
can uniquely add value.
For years, we’ve invested in people and communities around the world,
because it’s the right thing to do and because it’s crucial for building a
Company that will thrive for generations to come. We want to ensure thecommunities where we operate remain strong, and we need to help thecommunities we hope to serve begin to thrive. These investments are goodfor the world and good for our business.
— Marc Pritchard
Chief Brand Officer

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INTRODUCTIONETHICS & CORPOR ATE RESPONSIBILIT YCORPORATE PROGRAMSChildren’s Safe
Drinking Water

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We are on our
way to providing

15 billion litersof clean waterby 2020.

P&G’s signature community impact programis our Children’s Safe Drinking Water (CSDW)
Program. As a company with deep expertisein cleaning technologies, P&G innovations aretouching and improving lives every day. A P&G
Fabric Care scientist, who was studying how
to reuse dirty laundry water, discovered a new
formulation that could clean dirty water andmake it drinkable. In a world where nearly abillion people struggle every day to have clean
drinking water — P&G Purifier of Water — ishelping to address this challenge. Since theprogram began in 2004, we have delivered
more than 12 billion liters of clean drinking
water working with more than 150 partners
in emergencies, rural areas and community
health programs.

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STIR

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ENVIRONMENTAL SUSTAINABILIT YFILTER & WAIT 30 MINUTES

DRINK

Each 4-gram water purification packet treats 10 liters of water byeffectively killing bacteria and viruses and removing parasites and solidmaterials. The P&G packets are easy to use — with just a bucket, a spoon,a cloth and a packet, a family of five can have clean drinking water fora day in just 30 minutes.
Check out the Power of Clean

Clean water can transform lives, and the P&G packets are an important tool
to help progress toward UN Sustainable Development Goal #6 — universal
access to clean water and proper sanitation for all. Clean water improves thehealth of communities and enables education and economic opportunities.
Through the Children’s Safe Drinking Water Program, we’ve met and been
inspired by incredible women like Bechibila who is educating her community
in Northern Ghana about the need for clean water, proper sanitation andhygiene in the midst of her own personal challenges. Strong women like
Joana, Fusenia and Nena and their families living in sub-Saharan Africa are
thriving economically as they are empowered by clean water.
Bechibila, a woman from Northern Ghana,
educates her community with the help of
the Children’s Safe Drinking Water Program.

Meet Bechibila
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27Corporate Programs
DISASTER RELIEF EFFORTS
At P&G, giving back is part of who we are as a company.
In the aftermath of disaster, our goal is to help bring somesense of normalcy and the comforts of home through ourbrand and monetary support. This year, we responded to morethan 20 disasters globally and helped millions of people throughour Disaster Relief programs. We worked in collaboration
with many partners and provided more than $1 million indisaster relief grants to organizations on the ground including
AmeriCares, CARE, Direct Relief, Global Medic, Habitat for
Humanity, International Medical Corps, Matthew 25: Ministries,
PSI, Red Cross, Save the Children and World Vision.

“In times of disaster, it’s wonderful to know that
we have such a great partner in Procter & Gamble.
Because of their generous support, we are able
to help thousands of people who are in greatneed each year, recovering in the aftermath of acatastrophic disaster. I have seen firsthand therelief that comes over people’s faces when theyreceive the different brands they trust provided
by Procter & Gamble. These products not only
provide them with practical assistance, they
provide them with the assurance that they are
not alone. So on behalf of these people, I would
like to say thank you to Procter & Gamble for
their care and concern.”— Tim Mettey, CEO, Matthew 25: Ministries

In October 2016, there wassevere flooding in central
Vietnam impacting
thousands of homes.
Our employees madedonations that werematched by the company
to help those sufferingfrom the after-effects, and wewere able to help more than 4,200
families in Quang Binh and Binh Dinh —two provinces that suffered heavily from this flooding disaster.
Heavy rain hit 13 provinces in southern Thailand in December
2016, leaving 1.8 million people impacted. P&G Thailand and
P&G Thailand Foundation for Society joined hands with several
organizations providing relief and recovery assistance to flood
disaster victims. We partnered with Princess Pa Foundation, Thai
Red Cross Society to provide regular training session on how to
use P&G Purifier of Water packets to the local governments, aids
officers and community leaders in impacted areas, and provided
about 720,000 liters of clean drinking water.
In January 2017, P&G Malaysia partnered with the National
Disaster Management Agency (NaDMA) and non-governmentalorganization iM4U to provide 3,000 hygiene kits filled withessential items to flood victims in Kedah, Perlis and Sarawak.
P&G committed a total of 5,000 hygiene kits which benefited
10,000 people in flood-affected areas. Volunteers fromP&G Malaysia and iM4U came together to pack hygienekits consisting of Oral B toothbrushes, toothpaste,
Gillette disposable shaving kits, Rejoice shampoo,
and Whisper sanitary pads and towels.

As Japan is a country that has been impacted by natural disasters
in recent years, we created the P&G “Disaster Preparedness
Manual” for families who have younger children to help raise
preparedness level at each home to help in times of natural
disasters. By collaborating with the local government in Kobe
City, P&G distributed the manual to about 50,000 families.

We donated5,000
hygiene kits
which benefited 10,000 people
in flood-affected areas.

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Corporate Programs
HABITAT FOR HUMANITY PARTNERSHIP• More than 60 P&G volunteers from South Africa helped
build homes in Orange Farm, south of Johannesburg. P&G
helped build three houses, working alongside families living
in poverty, most of whom have never lived in formal housing.
One of the homeowners is Merriam, 74, who has lived in ashack for 23 years. Today, she has a decent, affordable brickand mortar home, thanks to Habitat for Humanity and P&G.

P&G and Habitat for Humanity are celebrating their five-year
partnership anniversary. Below are a few highlights of the work
we’ve done together to provide the comforts of home to thosetouched by the program:• Habitat for Humanity of Greater Cincinnati‘s strong
partnership with P&G in its headquarter city has contributed
to recent growth in the number of families the local Habitatfor Humanity can serve. In the last two years alone, six homes
have been built in the East Price Hill neighborhood, a historicurban community with strong growth and revitalization
potential. The homes have been built with the help of financial
support and employee volunteers from P&G, with three
more homes to come in 2017-18, improving the lives of evenmore families. In addition, every new Habitat for Humanity
homeowner who moves into a Habitat Greater Cincinnati
home receives a gift basket filled with P&G products.
• P&G partnered with Habitat for Humanity Thailand alongwith two key trade partners, Krabi Benjamin and Mother
Department Store at Krabi province, to organize the fifth
year of “Making A House A Home” in collaboration with60 volunteers from Krabi Technical College. At the sametime, we donated P&G brands like Safeguard, Head &Shoulders and Oral-B to the families and extended help
to 150 college students.

In Thailand, P&G donatedbrands like Safeguard, Head
& Shoulders and Oral-B tofamilies and college students
in collaboration with Krabi
Technical College.

• In May 2017, P&G Indonesia partnered with one of ourbiggest customers, Borwita Citra Prima (BCP), to build ten
houses in Gresik, East Java, Indonesia. Eighty volunteers from
P&G and BCP joined hands to give 640 labor hours to buildand paint walls which will help to protect nine families fromsun and rain, and ensure better sanitation facilities.

80 volunteers gave

• In the past three years, in collaboration with Habitat for
Humanity, P&G Vietnam continued to support disadvantaged
families in Long An Province — one of the poorest in the
Mekong Delta, where many families are unable to afford
a basic house. We have built several new houses, repaired
20 houses and provided Water, Sanitation and Hygiene(WASH) trainings for students and community villagers.
In the program, we are proud to engage hundreds of P&G
employees volunteering their time and efforts to touchand improve the lives of Vietnamese consumers.
• In Latin America, our volunteers helped renovate homes,
bringing independence and peace of mind to many families
in the region. During the last year, nearly 45 families from
Argentina, Brazil, Chile, Colombia, Costa Rica and Mexico
have seen their lives improved, thanks to the hard workof our P&G volunteers.

640 labor
hours
to build and paint nine houses
in Gresik, East Java, Indonesia.
• P&G Indonesia started to partner with Habitat for Humanity
in 2015 in providing houses with sanitation facilities. This year
alone, hundreds of P&G volunteers and partners have beenworking together hand in hand to build 19 houses withsanitation facilities in the Banten and East Java areas as we
continue to improve the lives of the people around the world.

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Brand Programs
PAMPERS/UNICEF

TIDE LOADS OF HOPE

Maternal and Newborn Tetanus (MNT) affects families in someof the poorest areas of the world and it occurs when newborns
are infected as a direct result of unhygienic birthing practices,such as cutting the umbilical cord with non-sterile instruments.
Once newborn tetanus has been contracted there is no real cureand MNT still claims the lives of 34,000 newborns every year,
equivalent to one baby’s life every 15 minutes.

Tide Loads of Hope provides mobile laundry units in times ofneed to help families impacted by disaster by providing clean
clothes. This year, the program cleaned more than 4,000 loadsof laundry during six deployments.

The Pampers/UNICEF campaign has helped eliminate maternal
and newborn tetanus in 20 countries. With 18 countries left,
Pampers and UNICEF are now over half way towards achieving
the goal of eliminating MNT from the world.
Since the Pampers/UNICEF “1 pack=1 vaccine” campaignbegan in 2006, more than half a million newborn babies
have been saved and a vaccine has reached a mother andher baby every second.

PAMPERS PREEMIE
Pampers believes that when babies enter the world, they
deserve to feel love at first touch. This is why P&G has partneredwith Neonatal Intensive Care Unit (NICU) nurses to design andintroduce the new Pampers Preemie Swaddlers Size P-3 diaper,
which is three sizes smaller than newborn diapers. It is designed
to fit the tiniest and most vulnerable premature babies, weighing
as little as 1 pound, wrapping them in Pampers’ most trusted
comfort and protection.

“A big thanks to the Tide Mobile Truck!
After my house flooded, they helped
by washing my curtains from 4 rooms
and lots of towels. So grateful! It
freed me up to do other things likeripping my kitchen out and took
some pressure off of me.
Thanks so much.”— Rhoda, Louisiana Flood Victim

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Brand Programs
DAWN WILDLIFEAUSONIA CANCER CARE

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 and the Marine
Mammal Center to give volunteers the cleaning help they need.
In all, 100,000 donated bottles have helped save about 75,000
wild animals from oil contamination.

Ausonia is a local iconic Feminine Care brand of pads, liners
and adult incontinence products. In 2008, Ausonia started its
partnership with the Spanish Association Against Cancer (AECC)
focusing on the fight against breast cancer, the most common
type of cancer in Spanish women. Thanks to overall investment
in research, social awareness and early diagnosis, Spain increased
its survival rates by 1.4%, and chances of survival 5 years fromdiagnosis is now 83% — 15% better than 20 years ago. Ausonia
brand’s collaboration with the AECC consists of:We’ve donated more than
100,000 bottles to help save

75,000wild animals
from oil contamination.

1. Breast cancer researchfunding where more than
$1 million US has alreadybeen donated in 9 years
to support prevention,
treatment and resistance.
2. Help on prevention by creating awareness with pink ribbons
on all our Ausonia pad packs and airing advertising every
year close to Breast Cancer Awareness Day.
3. Support to all patients and their relatives through media
messages including more than 45 celebrities in the past
10 years, along with women’s testimonials. The symbolof this collaboration is a pink scarf tied around the head,
which has evolved as a national symbol to support breast
cancer sufferers.

Ausonia partners with
AECC to help prevention
by creating awareness withpink ribbons in packaging
and advertising.

DODOT DIAPERS
The Spanish diaper brand Dodot cares for babies’ development
and health, and invests in different babycare programs including
a yearly pediatric research grant for pediatric students. Dodot
diapers have collaborated for more than 20 years with the
Spanish Pediatricians Association (AEP).

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31Regional Programs
LATIN AMERICA

In the last week of November 2016, Costa Rica was struck by
Hurricane Otto. As the hurricane reached the coast, one of ourorganizations (Records to Report) had to cancel their community
service, but we took this as an opportunity to lend a helping
hand by donating to the Red Cross the food, beverages and oral
hygiene products intended for the activity. We helped the Red
Cross with an immediate need for the emergency personnel andvolunteers that were going to be deployed at the emergency
zones. We gathered and donated toothpaste, shampoo andfeminine pads for these courageous heroes. We also brought
potable water to those communities with no access to drinking
water during the disaster. Our P&G packets were dispatchedthrough the Ministry of Health to the community of Upala,providing 225,000 liters of clean water to 1,000 people in need.
We also brought potable water to communities affected byother emergencies such as rains and floods in Peru, Mexico,
Argentina and Colombia.

Our CSDW efforts since the program began have provided
more than 750 million liters of clean drinking water to families
in 18 countries: Argentina, Brazil, Colombia, Costa Rica, Chile,
Ecuador, El Salvador, Guatemala, Guyana, Haiti, Honduras,
Mexico, Nicaragua, Panama, Peru, Dominican Republic,
Santa Lucia and Venezuela.
Our Born Learning program, a United Way education
platform, seeks to ensure more children live and develop in
healthy environments. In 2016, the regional program improved
the quality of more than 1,000 early care and education
centers in 11 countries, benefiting more than 105,000 children
aged 0 to 6 years in vulnerable communities.

For more than 3 months, Peru suffered the effects of the“El Niño” climate phenomenon. The frequent rain and flooding
left several provinces of Peru in a State of Emergency anddestroyed more than 100,000 homes, impacting more than
626,000 people. Marleny was one of them. She is a residentof José Leonardo Ortiz, a district located in Chiclayo (in northernPeru), which was heavily affected by the rains and floods. She isgrateful for the many cleaning products and personal care items
P&G has donated to her community.“ My children have had avery bad time, and we do not even have a place to stay, which
is why I thank P&G very much for these donations, which, above
all, help our children and the elderly. I’m very grateful.” This help
was possible thanks to our Disaster Relief program, which
was executed with World Vision and helped 280 families.

We were also able to launch our Disaster Relief program topositively impact those affected by the hurricane. Around 100
P&G volunteers helped build 500 kits of P&G products withbrands that helped bring some normalcy to those in need.
Thanks to their collaboration and great commitment, we built
the kits in record time. These kits were dispatched through the
National Food Bank through the Ministry of Health.
P&G also made sure to coordinate and execute the donation of
products that initially were intended for sale in the country andwere available in our warehouses. These products have reached
the communities in Upala with the help of the Food Bank and
Red Cross.

We donated food, beverages
and oral hygiene products to the
Red Cross and their emergency
personnel in the aftermath of
Hurricane Otto.

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Regional Programs
EUROPEIn the UK and Ireland, our employee Community Impact
programs have benefited more than 160 charities and grassroots
projects through fundraising and volunteering. Our productdonations have reached nearly 2,000 voluntary and community
organizations. P&G partners nationally with In Kind Direct — acharity which distributes products to those in need and in timesof disaster, as well as industry charity Grocery Aid and Look
Good Feel Better.

In Greece, we supported our communities with regular
product donations to more than 30 NGOs helping families,
kids and vulnerable social groups. In parallel, we stood byyoung professionals who are chasing their dreams through the
P&G “Together we build your future” program. This year,
we equipped 400 young professionals with knowledge andexperience through five skill building programs. For more than
20 years, we’ve also been supporting education through our
long-lasting scientific grants to help young scientists. We’ve alsojoined forces with our customers to run several activations suchas Pantene Give Strength program, which is in its third year
and has provided more than 16,000 ponytails to a local NGO
that creates wigs for women suffering from breast cancer. This
program was recognized as a Corporate Social Responsibility
Excellence program by the Retail and Advertising Association.
We also provide home essentials to kids in need — sheltering
abandoned kids, providing school meals around Greece, andcovering the daily needs of 40 families in partnership with
the Municipality of Athens. We supported health and hygiene
through a vaccination program in partnership with Red Cross.

Pantene Give Strength hasprovided more than

16,000ponytails
to a local NGO that createswigs for breast cancer patients.

In Germany and Austria, we supplied a large number ofarriving 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.
In Eastern Europe and Central Asia, the P&G Care to Every
Home program includes local partnerships with SOS Children’s
Villages, UNICEF, Red Cross/Red Crescent and foodbanks.
Through these partnerships, we provide the comforts ofhome, health and hygiene for those who need it most.

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33Regional Programs
EUROPEIn Spain and Portugal, our Community Impact programs havebenefited more than 1,000 institutions, through fundraising,volunteering activities and by our product donations that havereached more than 100,000 people in need. We partner with
Fundacion Valora and La Nau in Spain and ENTRAJUDA in
Portugal — three organizations which distribute products tocharities and institutions in each country.

Our volunteers andproduct donations havereached more than

100,000
in need.
In Spain, our solidarity journey with Aldeas Infantiles SOS(SOS Children’s Villages) celebrated its tenth year of partnership.
We co-produced a campaign in conjunction with the Rio
2016 Olympic Games featuring Olympic swimming champion
Mireia Belmonte and her mother Paqui García, in addition to
Aldeas Infantiles SOS mothers. The campaign honored mothers’
strength and carried a message of solidarity to help others whoare in need. Funds raised during the campaign helped provide
13,000 meals served in Aldeas Infantiles SOS programs. This
donation was made possible because of consumer support
and our retail partners.

Check out the inspirational video

Employees in France, the Netherlands and Belgium continued thesolidarity journey by providing help and P&G products to local
communities. Employees can take a full day to volunteer withsocial or environmental causes that support the homeless, elderly,
disabled children and adults, children from less privileged areas,
job seekers or the LGBT population. More than 1,430 employees
participated, providing help to more than 16,000 people.
In addition, we donated more than 30,000 products:

In France, we continued our partnership with SOS Children’s
Villages and co-produced a campaign on Children’s Rights, withthe help of more than 10 employees’ children who acted in thevideo, launched for the International Day of Children’s Rights.
The video was viewed more than 750 million times. Throughthis partnership, we provided help to more than 600 children.

• In Belgium: 1,700 gifts packs were wrapped and donated tomoms in need on Mothers’ Day.
• In France: 400 employees packed more than 10,000 hygienekits with Head & Shoulders, Oral-B and Gillette products,
benefiting more than 11,000 people.
• Also in France: 300 employees created a contest where 2,600
Pantene bottles were donated to one of our charity partners.

P&G gives back to the Geneva community through employee
volunteering and product donations. Employees are eager todonate time and resources to make a positive impact where they
live and work, in team-building activities and through mentoring
sessions with local charities. Last year, P&G Geneva provided
the equivalent of 100 working days to volunteering, and donatedeveryday essentials to the NGO Partage, which helped about
800 families in need.

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Regional Programs
EUROPEIn Hungary and Poland, we have partnered with Habitat for
Humanity to help provide the comforts of home by building
and cleaning houses for more than 70 families to date, and lastyear, 133 P&G volunteers joined forces to help.

P&G is supporting education
through student scholarships
with the expansion at the
Urlati plant in Romania.

P&G and Habitat for Humanity Romania continued theirpartnership started in 2013 and announced the expansionof the Technical High School Brancoveanu Voda Urlati with a
new classroom. The Company’s financial support and employee
volunteers will not only contribute to building the new facility,
but also strengthening the curricula and training opportunities
at the Urlati plant. This project is part of P&G’s commitment
to the local community of Urlati, where the Company has astate-of-the-art hair care plant. Moreover, the new facility
complements a series of activities that aim to support education,
like giving scholarships to students, supporting participationin regional and national competitions, or providing professional
opportunities within P&G.

Following an earthquake in August 2016 that hit the center of
Italy, P&G donated products to the Red Cross from brands suchas Oral-B, Pantene, Head & Shoulders and Gillette. Through theinternal initiative “Christmas Market,” P&G employees donated250,000 euros to Save the Children to build a recreational space
where kids can meet, play music, read and study. Importantly,
when the earthquake occurred, Save the Children was able tointervene in less than 24 hours, thanks to the Emergency Unit
funded by the donations of P&G employees during previous
Christmas Markets. Also, when the earthquake hit Norcia,
Perugia in October 2016, P&G, in collaboration with the
Civil Protection and Whirlpool Corporation, built 10 laundry
containers for the families affected and donated Dash andLenor products.

We helped build

10 laundry
containers
in Norcia for families affectedby the earthquake.

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Regional Programs
ASIA PACIFIC
In Japan, we have been helping about 1,400 children in infant
homes/orphanages by donating much-needed products such as
Pampers, Ariel and Joy. We also help women and their children
through domestic violence shelters. We have been contributing
to these two causes for nearly 15 years.

“I would like to commend Procter & Gamble
Trading (Thailand) for its confidence in Thailand
as a regional production-base, and for its leadingrole in corporate social responsibility in Thailand
for the past three decades. I wish to extend mysincere congratulations to Procter & Gamble
Trading (Thailand) on the important occasion

P&G Vietnam has partnered with the Vietnam Red Cross to carryout humanitarian activities focused on the P&G Children’s Safe
Drinking Water Program. Our strategic partnership aims toreach more than 200,000 households within three years in thesix disaster-prone provinces of Ha Tinh, Nghe An, Quang Binh,
An Giang, Dong Thap and Long An, where thousands of local
people have suffered serious shortage of clean drinking waterin the flooding season every year.
P&G Vietnam also celebrated the 20th anniversary ceremony of
the “For a brighter future” scholarship program. This initiative,
jointly organized by P&G and the Binh Duong Federation ofLabor, is aimed at opening the door to a brighter future foryoung, talented people. Over the past two decades, more than
2,000 scholarships have been granted to disadvantaged students.
Many of these students have now graduated from universities.

of its 30th anniversary.”— Prime Minister His Excellency

Over 20 years, we have granted

General Prayut Chan-o-cha

2,000scholarships

In Thailand, P&G and its partners donated 88 recycledplaygrounds in remembrance of His Majesty the Late King.
The colorful playgrounds are manufactured from recycled
Pantene, Head & Shoulders, Rejoice and Herbal Essences bottles.
The project aims to enhance the development and improve
personal health and hygiene, build confidence for children
with special needs, and help cultivate a consciousness ofconservation of natural resources and the environment.
At least 20,000 children will benefit from these projects.

Check out this video

to disadvantaged students.

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36Regional Programs
ASIA PACIFIC

More thanEvery year on the occasions of Children’s Day, mid-autumn
festival and Tet, P&G Vietnam has organized trips to visit
and provide gifts to disadvantaged children and the elderlyin three orphanages and nursing homes in Binh Duong.
Through these efforts, we reach more than 500 disadvantaged
people every year.

150 P&G
employees

P&G Beyond Borders empowers employees to make ameaningful impact. This skills-based volunteering program is thefirst of its kind in the region. P&G employees share knowledge
and frameworks on various topics (followed by hands-on training
with P&G volunteers dedicated to each NGO). We completed fiveconsultation projects with non-profit organizations. These are
3- to 4-month consulting projects where P&G teams tackle thebusiness challenges of non-profits and share the action plan or
strategy. We also provided one employee with an opportunity
to work with UNICEF on a 3-month sabbatical.
P&G fosters an inclusive society in partnership with Special
Olympics Singapore. More than 150 P&G employees and theirfamilies volunteered in two key events with Special Olympics
Singapore: American Chamber of Commerce Corporate
Community Day and Special Olympics National Games.

and their families volunteered
with Special Olympics
Singapore.
P&G is committed to building capability across our local
partners and small and medium enterprises (SME) in line withour commitment to strengthen and support the local economy.
In Singapore’s 2nd P&G Leadership College for SMEs,
P&G and external experts shared their expertise with 40
SMEs to build their digital capabilities.

Through the P&G Berbagi Asa (Sharing Hope) program,
P&G Indonesia helped expecting moms and toddlers improvetheir health through medical checkups and additional nutritional
information. We provide trainings to local communities andbetter access to electricity and sanitation to orphanages in the
Karawang area. Through the P&G Sweat for a Cause event,employee and family volunteers worked at a local mangrove areaand planted around 4,000 trees in the Marunda coastal areain North Jakarta.

Employee and family
volunteers planted around

4,000 trees
in North Jakarta.

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37Regional Programs
GREATER CHINA
2016 was the 20 anniversary of P&G China’s support of
Project Hope. Having renovated more than 200 schools andhelped more than 300,000 children, we are going into our fifth“five year plan.” Based on the new problem that rural children’s
parents go to urban places to make a living and the lack ofcompanionship makes children feel lonely and helpless, thefifth “five year plan” will focus on caring for children’s spiritualneeds instead of merely material needs.
thEncouraging children to participate and express themselves
actively, we are using the most advanced concepts andtechnologies to give children comprehensive education that
includes drama, sports, arts and music to fulfill the inspirationof “believe in ourselves and believe in the power of love.”

In 20 years, we have renovated

200 schools
helping more than
300,000 students.
We have made many breakthroughs this year:• 37 students took part in the first children’s drama summer
camp and public performance in the history of Project Hope.
• Rural children experienced a more advanced educational
concept than their peers in urban places.
• We hosted a professional children’s drama tour performancein three cities in China, with more than 6,000 viewers.
Another program is “Onward Moms.” Hong Kong moms
are under enormous pressure when raising their children.
They face challenges from all aspects — from children’s
education and workplace competition to inflated expectationfrom families. Based on this insight, P&G Hong Kong started
the “Onward Moms” movement in April. We leveraged ourstrong assets across moms and community leaders to support
Hong Kong moms. A series of workshops were rolled out tohelp moms better deal with the stress of raising a child in ademanding society.

P&G 6 Minutes Protect a Life is Taiwan’s leading community
impact program and has been active since 1994. The idea of thisprogram is to help women manage cervical and breast cancer
risk. Over the past decades, thanks in part to the program, 80%of cervical and breast cancer cases in Taiwan were diagnosed at
an early stage for better treatment options. Death rate of cervicalcancer also has decreased greatly (65%) since P&G started theprogram. With support and recognition from local governments,
we are committed to women’s health protection and continue
to promote the importance of regular cancer screenings.

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38Regional Programs
INDIA, MIDDLE EAST, AFRICA (IMEA)CSDW has provided clean water in more than 45 countries
in the IMEA region, and we have entered our 3rd year ofpartnership in Pakistan with METRO Cash & Carry and HealthOriented Preventive Education (HOPE) to provide clean drinking
water to disaster-struck communities in Pakistan. Additionally,
after a series of particularly harsh summers, P&G is making clean
drinking water available in urban disadvantaged areas across
Karachi with P&G Purifier of Water packets. P&G has provided
more than 12 billion liters of clean drinking water aroundthe world since the program began in 2004 and has reachedapproximately 57,000 people across Pakistan this year. In South
Africa, we partnered with Gift of the Givers (the largest disaster
relief organization of African origin) for disaster relief efforts
including helping with floods in Mozambique. This was also ourfirst year of partnership with Walmart in South Africa to donate
one day of clean drinking water for every P&G product soldduring a 1 month period. We raised 1.2 million days of clean
drinking water, more than doubling our goal.

We provided

57,000peoplein Pakistan withclean water.

Since the program started in 2005, P&G Shiksha has
empowered consumers to contribute to the education ofunderprivileged children by making conscious brand choices.
This has enabled us to share a part of the sales towards thismovement. P&G Shiksha has made a cumulative donation of
more than $10 million US dollars towards building new schools,
providing critical infrastructural amenities at existing schoolsor reviving non-operational government schools. During theyear, Save the Children, in partnership with P&G Shiksha, hascontinued to empower marginalized girls through improving
learning effectiveness.

Reading and writing ability has
increased to 70%, versus 20%
before the program’s invention.

The Always School program gives puberty and hygiene
education to millions of girls every year, helping themunderstand and remain confident through the many physicaland psychological changes they undergo in puberty. The
Pampers New Moms Education program reaches millions
of moms annually in hospitals, home gatherings or neonatal
clinics with essential health and baby care information, including
breastfeeding, nutrition, diapering, immunization and post-natal
check-ups. Safeguard drives hygiene habit changes by educating
school children on the importance of hygiene and proper handwashing to help prevent illness and the spread of disease.
P&G India’s signature community impact program, P&G
Shiksha, in partnership with a number of NGOs, has built andsupported approximately 1,500 schools across the country,
which is an increase of more than 500 since last year. This will
positively impact the lives of more than 1.2 million children.

Two years ago, we entered into a partnership with Pratham
Education Foundation, a leading NGO in India in the educational
space, to help with remedial learning and early childhood
education. P&G Shiksha partnered with Pratham’s Read India
initiative aiming to bridge the existing gap between current
and existing learning levels. The results were phenomenal; wereached out to more than 500 schools and 65,000 children andsaw the learning levels in the schools rise at the end of the year
following our interventions. Before the intervention, only 20%
of children in these schools were able to read and write as per
their curriculum level — after our invention, this increased to
70%! Similarly, there was more than a two-fold increase in thepercentage of children who were able to do basic arithmetic
after our intervention. P&G also identified “Early Childhood
Education” as a key opportunity area in the educationallandscape of the country.

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39Regional Programs
INDIA, MIDDLE EAST, AFRICA
The P&G Home at SOS Children’s Village in Islamabadprovides orphan children the chance to live a normal life.
The P&G Home fulfills the primary needs of these children andprovides them with security, love and care in an environment
which has a “mother,” “brothers” and “sisters.” P&G employees
visited the SOS Children’s Village in Karachi and spent aninspiring day with the children. Interactive sessions with
employees play an important part in the lives of these children,
giving them a sense of belonging and being cared for while
helping build their social and interpersonal skills.
P&G’s partnership with Health Oriented Preventive Education(HOPE) and READ Foundation has provided quality education
to around 4,800 underprivileged children in low-income
communities of Karachi, Thatta, Islamabad and Muzaffarabad.
Girls constitute around 53% of the students at the P&G HOPE
and P&G READ Foundation schools. Students of the P&G READ
Foundation schools and P&G HOPE schools continue to excel
academically. The P&G HOPE school program has come full circle;
one bright and talented girl who completed her graduation fromthe P&G HOPE Home School now runs her own P&G HOPE
Home School. To date, more than 6,000 underprivileged children
have received quality education through these programs.

P&G HOPE Home School
has provided quality
education to more than

6,000
children.

The Kibera Town Centre, located near Nairobi in Kenya, is afully functioning social enterprise at the heart of the biggest lowincome area in Kenya and is the result of a partnership between
P&G and NGO The Human Needs Project. The Centre is designed
to help improve the lives of local residents in an environmentallyand financially sustainable way. This is done by offering pay-peruse sanitation and empowerment services and by employing
smart systems for water and energy management. The pay-peruse services offered at the Centre include Ariel laundry services,
showers and toilets, clean drinking water, a cafeteria, high-speed
Internet, computer classes, adult education classes, and savingsand credit cooperatives for low-interest loans.

More than
750 transactions
occur at the Centre daily.
The Centre has a borehole, a full gray water recycling system,
and is partly powered by solar energy. The Centre has served
more than 230,000 people to date with more than 400,000
purchases of products and services, and approximately 80%of the customers have returned to the Centre. More than 750
transactions are happening at the Centre daily, each contributing
to improving the quality of life for the residents of Kibera.

See the new Town Centre

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40Regional Programs
INDIA, MIDDLE EAST, AFRICA“We believe that we have an important role to

P&G in the Arabian Peninsula joins hands with retailers andconsumers to support local causes. As part of P&G Arabian
Peninsula’s backing for the United Arab Emirates’ “Year of
Reading” and “Year of Giving,” national initiatives to promote
literacy, corporate social responsibility and community
engagement, the organization launched a number of local
cause-related marketing initiatives. The first, a partnership
between P&G, the Abu Dhabi-headquartered LuLu Hypermarket
and Dubai-based charity Dubai Cares, resulted in an in-store
campaign that benefited tens of thousands of children. For every
select P&G brand purchased during the ten-day campaign atparticipating Lulu Hypermarkets across Abu Dhabi, Dubai andSharjah, we donated the cost of a book to Dubai Cares. The
initiative, which was backed by the Mohammed Bin Rashid
Global Centre for Endowment Consultancy, supported the UAE’s
Year of Reading campaign that aimed to create a generation ofbook lovers and promote education through reading. In total,
more than 40,000 US dollars worth of books were donatedthrough shopper purchases during the campaign.

play in supporting local causes across the region.

Our partnership with
Lulu Hypermarket andDubai Cares resulted in
an in-store campaign
providing a total of$40,000 worth of books.

Reading and access to books are key to developing
creativity and learning among young minds.
Likewise, being with the people you love may justbe the most valuable gift anyone can ask for.
We live in one of the most vibrant places in theworld, which is moving at such a fast pace. We
want to encourage our consumers to step backfor a moment and think about what difference
they can make to others and who makes them
happy, and give them an opportunity to share
this thought with that person as well as offer them
In partnership with Majid Al Futtaim-Carrefour and as a tributeto the country’s push to promote happiness and well-being,
we gave UAE consumers the chance to both share their great
moments of happiness with their families and loved ones andcreate new ones by winning family experiences. During the
campaign, consumers who visited Carrefour stores acrossthe UAE could express their gratitude to family and friends
for the quality time they’d spent together and become a partof a Guinness World Record attempt for the longest line ofphotographs. In total, UAE consumers contributed more than
10,000 images to the campaign to say thank you to their loved
ones for all the great moments they’d created together.

a chance to give back through shopper causes.
Thank you to everyone who made these campaigns
come to life.”— Khaled Adawi
Director, P&G in the Arabian Peninsula

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Regional Programs
NORTH AMERICA
In our Green Bay plant, two P&G grant programs madesignificant impact in the local community. The first one usedmatching P&G grant funds to supply Caring Closet with hygiene
items, household cleaning supplies, school supplies and clothing.
Another program used matching P&G grant funds to support
the Boys and Girls Club of Northeastern Wisconsin, Inc., where
volunteer mentors serve as role models to youth supported byongoing, professional monitoring, changing the lives of both thementors and youth for the better, forever.

P&G provided financial
support to the Boys andGirls Club of Northeastern
Wisconsin.

The P&G Military Team is improving the quality of life for
America’s Military Families around the world. Through theircause-related Marketing activations, the Military Team invested$1.5 million in support of the Military Community this past
year. Contributions included sponsoring 13 NFL ProCamps
Worldwide for military children, donating 40,000 “Toys for
Holidays” through partner Operation Homefront, handingout “Welcome Home Kits” at USO facilities, and supporting
the efforts of Fisher House (a foundation that provides free
temporary housing to family members while their wounded
loved ones are recuperating at military base medical centers).
These are just a few of many ways the Military Team, throughtheir Start Strong/Stay Strong Campaign, improves the qualityof life for the men and women who serve, and their families.

Feeding America® does much, much more than the nameimplies. North America’s largest domestic hunger-relief and foodrescue charity not only distributes nutritious and wholesome
food, but also household essentials and personal care items
through a nationwide network of 200 food banks and 60,000
agencies. As a long-term partner, we have been providing basic
essential products like Crest, Gillette, Charmin and Pantene tohelp families struggling to make ends meet. In just two years,
Pampers has donated 15 million diapers and 10 million baby
wipes to help families care for their youngest members.
For several years, we have helped support Feeding America’s
School Pantry Program for kids and partnered together onbrand campaigns such as the Crest Healthier Smiles Project.

As a long-term partner,
we have been providing
products like Crest, Gillette,
Charmin and Pantene
to struggling families.

In Canada, we continued our longstanding tradition ofgenerously giving back to the community with a new employee
engagement campaign called P&G Gives Back. As part ofour P&G Gives Back efforts, we encouraged employees to giveback to the community through their time, talent and treasures.
P&G Canada employee donations to the United Way, alongwith a corporate match and product sales, generated more than
1 million US dollars for the Canadian communities. Employees
also volunteered their time through corporate partners like
Habitat for Humanity and United Way.

P&G Canada donated more than 200,000 units of in-kindproduct to provide comforts of home to those in need,
especially for newly arrived Syrian and Yizidi refugee families.
By engaging employees, community groups and government
officials in kit-packing events with our Canadian disaster
relief partner Global Medic, we donated more than 1,900“Welcome to Canada” kits.

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Regional Programs
P&G IN ITS GLOBAL HEADQUARTERS CITY
United Way of Greater Cincinnati brings people andorganizations together to do what no one person or one group
can do alone. With the help of more than 90,000 supporters,
United Way of Greater Cincinnati improves the lives of 365,000
people a year in 10 counties across Ohio, Indiana and Kentucky.
Through our partnership with and support of United Way, we’retackling some of the toughest problems in the Greater Cincinnati
region by advancing community solutions that work. Together,
we ensure our community has access to good jobs, educationand healthcare because we know when those needs are met,
everyone has an opportunity to thrive. P&G and its employees
donated more than $10 million to the United Way of Greater
Cincinnati’s annual campaign, making us United Way’s largest
local donor.

P&G is the largest contributor
to the Cincinnati Center
City Development
Corporation – 3CDC. This is a
private, non-profit, real estate development organization focusedon revitalizing Cincinnati’s urban core in partnership with theCity of Cincinnati and the Cincinnati corporate community.
P&G’s partnership with 3CDC is fundamental in helping attract
and retain top talent. When 3CDC approached us with theirvision for creating programming and events that bring the city
together in celebration, growth and revitalization, it fit well withour corporate vision, and we saw it as a way to help power andsupport the momentum of our city. Our employees have gotten
behind everything we support, from running groups in the Flying
Pig Marathon, to participation in Salsa on the Square, to sharing
their love of music at events like Cincinnati Music Festival andperformances at Fountain Square and Washington Park.

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Employee Well-Being
P&G VIBRANT LIVING

In 2017, Vibrant Living continues as P&G’s healthand well-being program with a presence across
55 countries. After launching our expanded visionin 2016 —“Enable peak performance by inspiring
meaningful, happy, healthy lives”— this year wesaw even more momentum engaging not just ouremployees but also our families. Our Vibrant Living
vision is supported by three pillars:“Meaningful” Heart — Feeling proud to be partof P&G and connecting with others, at home, atwork and in the community, who share similarinterests and passion to bring out our best.
“Happy” Mind — Enriching our overall well-being,building resilience and strengthening relationships
to enjoy the best in life.
“Healthy” Body — Optimizing our physicalstrength and energy to meet everyday challenges
and enjoy an active lifestyle. That’s the core of
Vibrant Living.

More than
600 employees
participated in the Cincinnati
General Offices Vibrant
Living 5K Walk / Run event

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Employee Well-Being
P&G VIBRANT LIVING:HIGHLIGHTS OF OUR PROGRESS
Positive P&G Employee survey trends
For the second year in a row, 81% of employees participatedin Vibrant Living events, activities and programs. This is having
a favorable impact with our overall Personal Well-Being scoreincreasing 9 points over the last six years.
Global Vibrant Living Awareness Day
While site Vibrant Living Teams plan Vibrant Living activities
and events throughout the year, during two weeks in Aprilsites participate in Global Vibrant Living Awareness Day.
With a theme of “Vibrant Living, Better Together!”, 72%
of our sites around the world celebrated our fourth annual
Global Vibrant Living Awareness Day.

A workplace culture of health and well-being

Highlights from Sites Around the World• We now have 107 certified Vibrant Living sites that support
the health and well-being of our employees.

5K Walk/Run
The Cincinnati General Offices
More than 600 employees from around the city participated inthis Vibrant Living event.

• With the help of Vibrant Living Health Coaches andChampions throughout the world, employees can connect
to Vibrant Living resources they need most.
• Our global online wellness assessment is available toemployees in more than 30 languages.
• We are continuing a progressive 10% utilization rate with
our WorkLife Solutions Program, which reaches more than
90% of employees worldwide.

Summer Vibrant
Living Carnival in
China engaged 500+
employees and family
members through12 different activities.

The site Vibrant Living Teams leverage the Vibrant Living
framework to bring the program to life in a meaningful way
for the employees at their site. The types of Vibrant Living
activities, programs and events vary by location and can include
such things as health checks in the Vibrant Living Health Center,health fairs, sports competitions and tournaments, 5K Walk/Run
events, Stress & Resilience Promotions, health food and snack
offerings, fitness center promotions, massages, Vibrant Living
Circles, family day, community outreach events and many others.

Global Vibrant Living Awareness Day
Damman Plant, Saudi Arabia
Employees participated in fitness activities, nutrition awarenessand a vision campaign.
Summer Vibrant Living Carnival
Xiqing Plant, China
The plant launched a brand-new Vibrant Living series ofcampaigns named VL Summer Carnival and successfully
engaged 500+ employees and family members with 12 rounds
of VL activities such as a health lecture, parent-child interaction,
sport competitions, themed family day and outside sports.
Health Fair
Geneva G.O.
Included an information booth where employees could learn
about their Vibrant Living Health Center and programs.
Blood Drive
Santiago Plant, Chile
As part of Global Vibrant Living Awareness Week at the plant,
employees were able to give back to the community.
Sweat for a Cause
P&G Indonesia
To celebrate Vibrant Living Week and Earth Week, employees
and their families ran for a healthier life and replenished theearth by planting five trees for each lap run by an adult andhalf lap for children.

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Employee Well-Being
GLOBAL MEDICAL

We touch and improve the lives of our employeeswith focused delivery of our five Global Medical
priorities.

The P&G Medical vision “Touching and Improving the Healthand Well-Being of P&G People – Healthy People, Healthy
Business” reflects the importance of the well-being, productivity
and innovativeness of our employees. The P&G global Employee
Health and Well-Being Standard ensures that we deliver:• The same corporate Health and Well-Being requirements
at all P&G locations consistently around the world, assuringthat sites provide employees with the appropriate level ofoccupational health assurance programs and services,

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)• Comprehensive and effective emergency care for our
employees, on-site contractors and visitors at all our facilities,• Compliance with related laws and regulations, and sharing thisexpectation with all of our business partners,• A culture of health through quality health services and Vibrant
Living offerings that support employees in protecting andpromoting their health,• WorkLife Solutions and Employee Assistance Programs (EAPs)
to support employees and their families.
Our programs are making a difference. Our 152 P&G HealthServices/Vibrant Living Health Centers in 42 countries had morethan 297,000 employee visits in the past fiscal year. Based on
employee feedback, 93% of visits surveyed received a favorable
rating. Our annual ratio of Health Center visits to total P&G
employees covered by on-site occupational health services
remains at a similar level. Many of these employee visits areproactive, including use of preventive health services such as
travel health consultations, 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 2017 P&G Employee Survey. P&G Survey
results for the last six years tell a remarkably consistent story of
double-digit well-being improvement.

152 centers in
42 countries
logged more than 297,000 employee visits
in the past fiscal year.

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Recognitions
P&G Community Impact initiatives have received
significant recognition this year including the following:

Forbes Magazine named us the #1 most socially responsible
company in Central America.

P&G Myanmar received the second Annual AMCHAM ACE
Recognition.

P&G Singapore received the 2017 AmCham Cares Award fromthe Singapore American Chamber of Commerce for our corporatesocial responsibility efforts.

CSDW in Indonesia was named Best Philanthropic Program
2016 by Mix MarComm Magazine.

P&G Thailand-Myanmar-Laos team received the 2016
AMCHAM’s CSR Excellence (ACE) Recognition for our workin corporate social responsibility, receiving 2 awards: “Gold level”
AMCHAM ACE Recognition for the 6th consecutive year and‘The US-Thailand Creative Partnership’ award by the US Embassy.

CSDW West Kalimantan Project was shortlisted as Best
Corporate Responsibility Program in APAC by Asia PacificExcellence Awards.

P&G Colombia has been recognized externally for our community
impacts and our good practices in Social Responsibility in Bogota,
the capital of Colombia, awarded by the Bogota City Council.

P&G was recognized as United Way´s Best Regional
Corporate Partner in Latin America.

The Peruvian Ministry of Defense recognized P&G Peru for its
work and support during El Niño Costero emergency.

United Way Peru recognized P&G Peru for our commitment
with our communities and our efforts on childhood “Empresa
comprometida con la primera infancia” (Company
committed to early Childhood).

World Vision recognized P&G Peru “Por el apoyo y lasolidaridad durante el Fenómeno del Niño Costero 2017”(Solidarity and Support during El Niño Costero 2017).

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Diversity& Inclusion
Overview
Message from William P. Gipson
Building Inclusion as a Business
and Cultural Strategy
Creating Value ThroughDiversity & Inclusion
Advocating for Dialogue andAction that Drives Progress
Bringing Out Our Best Everyday
Strengthening Our Legacy

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Diversity & Inclusion Overview
P&G is a company that believes in diversity and inclusion. With over 145 nationalities
represented in our workforce, our own diversity helps us reflect and win with theconsumers we serve around the world. The more we understand people, their needs
and challenges, the better we can delight them with our products and services. And
while diversity is essential in all we do, we believe inclusion changes the game. Everyday we strive to get the full value of our diversity through inclusion — fostering anenvironment where P&G people can be their best, full and authentic selves in theworkplace. But our job doesn’t end there — our belief and commitment extends
beyond P&G’s walls. We are driving action on the world stage to make a meaningful
difference, and we care deeply about our impact, always striving to make the world
a little bit better through our actions.
BUILDING INCLUSION AS A
BUSINESS AND CULTURAL STRATEGY

CREATING VALUE THROUGH DIVERSITY
AND INCLUSION

P&G’s commitment to an inclusive culture is broad and deep.
We are continually improving our culture through policies,
training and employee support systems to meet the needs ofour changing workforce. We are committed to achieving 50-50
representation of women and men in all parts of our Company
and stepping up for our African Ancestry employees. To enable
P&G people to be and give their best, we continue to innovatein the area of global parental leave and employee flexibility. Allof this underscores our desire to make a difference around theworld. We know that when we get inclusion right, we are moreable to reach our full potential.

Our 2017 P&G Diversity & Inclusion Award winners are helping
P&G to win through better business, organizational andcommunity-improving results. The link to diversity and inclusion
comes through the commitment of these teams and individuals
who think differently and challenge themselves and others totake initiative, embrace change and tackle challenges throughdiverse vantage points and teams. From product innovation
for women of African Ancestry, to creating opportunity forpeople with disabilities, to advancing LGBT inclusion, to driving
economic empowerment for women, to winning locally withproducts and messages that resonate with consumers, we areinnovating for growth across our business through our diversity
and inclusion efforts.

We are committed to achieving
50-50 representation of womenand men in all parts of our company.

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Diversity & Inclusion Overview
ENCOURAGING DIALOGUE AND ACTION

BRINGING OUT OUR BEST EVERYDAY

In June 2017, P&G joined 300 other companies through the CEO
Action for Diversity & Inclusion, the largest CEO-driven business
commitment to advance diversity and inclusion in the workplace
signed by more than 270 CEOs. The power of this commitment
is the bias towards action — seeing something, saying something
and then doing something about it. Diversity is about making
sure we have the right mix of talent. Inclusion is about usingthat diversity to make us all stronger. It takes both. P&G is taking
deliberate steps inside and outside the Company to create
a trusting workplace environment for dialogue, understandunconscious bias, and share best practices.

At P&G, we believe diversity and inclusion comes down tothe everyday choices and actions of every individual. When we
unite to bring out the best in each other, and when we invest
in our communities, we have the power to be unstoppable.
In 2017, our People with Disabilities and Veterans Affinity Teams,
in partnership with the Department of Veterans Affairs andParalyzed Veterans of America, co-presented the 37th National
Veterans Wheelchair Games in Cincinnati, Ohio. More than 550
veterans competed in this event, empowering veterans withspinal cord injuries, multiple sclerosis, amputations and otherneurological injuries to live more active and healthy lives
through wheelchair sports and recreation.

Inclusion is about
using diversity tomake us all stronger.

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Message from William P. Gipson

We’ve been raising the bar across our business, in everything we do —including diversity and inclusion. We are seeing business momentum, andas a Company that is 180 years old, we are committed to a better tomorrowand the next 180 years, and more, of success. I believe diversity and inclusion
will continue to be a key way of doing this. We need to continue innovating
for growth, across our business, and at every consumer moment of truth, todelight people with our brand and products. We need a workforce and culturethat allows each and every employee to bring their full, best and unique self
to work each day. If we continue to apply our diverse minds and diverse talent
to tackle opportunities or challenges, we will continue to serve our consumers
in ways that are meaningful to them and keep delivering better results.
— William P. Gipson
President, End-to-End Packaging Transformation,
and Chief Diversity and Inclusion Officer

Everyone Valued,
Everyone Included,
Everyone Performingat Their Peak™

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Building Inclusion as a Business
and Cultural Strategy
P&G is deeply committed to an inclusive culture.
We are continually working to improve our culture
through policies, training and employee support
systems to meet the needs of our changing
workforce. We are committed to achieving 50-50
representation of women and men at all levels andin all parts of our Company and standing up for
all employees across the globe to ensure everyone
can be their best self. We continue to make bold
improvements in the area of global parental leaveand employee flexibility. All of this underscores
our desire to make a difference around the world.
We know that when we get inclusion right,
we are more able to reach our full potential.

CONTINUING OUR COMMITMENTTO GENDER EQUALITY

To support this priority, we have invested in innovative programs
focused on the development of women.

We are working to build an equal workforce of women andmen at all levels of the Company around the world. Today,
women represent 45% of our manager positions and 35% of
our executive-level positions. To continue our progress to a
50/50 balance, we believe we must be at our inclusive best for
the women and men of P&G. We continue to make notable
improvements in our approach to developing and advancing
women and policies that support new parents and meet theflex needs of all employees. We believe that P&G women canachieve their goals and ambitions at P&G. Developing the next
generation of women leaders is a key priority for us in the
coming years.

P&G Asia’s Movement
P&G’s Asia-Pacific (APAC) Region has a strong history ofdeveloping women leaders. Women represent 50% of all
management roles across the region and 32% of all executivelevel positions. In 2016, our Asia-Pacific leadership team
introduced gender equality through a flagship effort. The
initiative supports both an inclusive culture and a commitment
to the advancement of women into senior-level positions acrossthe region. Key to their plan is a commitment to new parents. In
2017, APAC updated its maternity leave benefits to ensure that
all women, birth and adoptive mothers, have at least 14 weeks
of paid leave. They made advancements in supporting child carein Japan and Indonesia, with plans to expand in sites where
this need exists. To accelerate the development of top womenleaders, more than 100 women have been formally matchedwith career sponsors. In addition, more than 350 womenparticipate in Lean In Circles. APAC leadership is also engaged
in training for the region on subjects ranging from “unconsciousbias” to “cultures at work.” We believe that when men andwomen work together, we can co-create an inclusive workplace
where employees, regardless of gender, can bring their best andbe their best every day.

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Building Inclusion as a Business
and Cultural Strategy
P&G’s North America’s Women’s Accelerator
and Latina SOAR
The Women’s Accelerator program and the SOAR Initiative
are intensive leadership development programs designed toaccelerate the development of women to senior managementlevels. Both initiatives focus on topics ranging from effective
envisioning and leadership to networking and negotiation. SOAR
is targeted to our Latina women and focuses on the uniquenessof Hispanic women’s leadership. In five years since establishingthese programs, we have seen a continual increase in women’s
progression and a reduction in overall women’s attrition.

“SOAR was the first training at P&G that really
empowered me to embrace and strengthen all myleadership qualities as a woman executive. The
self-discovery insights and the tips I learned at
the personal coaching sessions are all tools I am
applying today. I also believe the Latina SOAR
training has been a key tool to help P&G build asteady pipeline of strong performing and wellconnected Latina leaders that will play at P&G
top levels and spheres of influence. These future
leaders will inspire younger Latinas to believe thatthey can succeed in our company as well.”— Carolina Rogoll
Fabric Care Canada Commercial Leader

Lean In Circles
P&G is a founding member of
Leanin.org with more than
4,000 women participatingin Lean In Circles around theworld. In June 2017, P&G hosted
a fireside chat with Sheryl
Sandberg, Chief Operating
Officer of Facebook and authorof bestselling books Lean In and Option B, at our Boston andCincinnati sites. Sandberg commended P&G for continuing to
be one of the largest sponsors of Lean In. “Leaning In” is about
helping women unleash their full potential. Lean In Circles
provide a forum for women to get peer-to-peer support, andto tackle business and career challenges and opportunities in asafe environment. Sheryl also shared a sense of urgency to makefaster progress in the area of gender equality. “Women havereceived 57% of undergraduate degrees in the US, and only
occupy 5% of Fortune 500 CEO roles. Women’s voices are notheard. Individuals of different races are not heard. Diversity ofthought stems from diversity of background — so how do we getthere?” It is a question we will continue to work to answer forourselves and for the world around us.

Secret: Redefining Feminine Strength
The Secret brand is unwavering in its portrayal of strong,
confident women in its advertising. Secret was one of the firstbrands to represent women in the workforce and men as fathersin advertising. The “Stress-Tested for Women” campaign is built
on Secret’s rich history of supporting all women who showcourage in redefining feminine strength. The campaign highlights
a variety of stressful situations that are culturally relevant andshows how women face those challenges with courage everyday. Secret knows it takes guts to redefine cultural norms andproudly supports all women’s efforts — big or small — to take lifeand stress head on. The clip below is one of our favorites andhas more than 6.5 million views to date.

Check out the Secret campaign video

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STEPPING UP FOR AFRICAN ANCESTRYEMPLOYEESWe have a long track record of hiring outstanding African
Ancestry (AA) talent, and we want to keep that talent at P&G.
We are addressing opportunities and investing in purposefulplans for hiring, retaining and developing AA talent to the
executive level. In 2017, we continued on an innovative approachto building strong manager-employee relationships, challenging
bias, and focused career planning to better support and develop
our valued AA talent.

Cincinnati Winton Hill Site Pilot
We know that strong manager-employee relationships are what
lead to higher levels of job satisfaction, the ability for individuals
to contribute to their fullest potential and lead to better results.
As part of our Stepping Up plan, we created a pilot program tostrengthen the manager relationship with our AA employees.
The 3-part learning experience, based on a principle of shared
responsibility, required the individual participant, the manager,
and the organization to all be responsible for ensuring the
program objectives were met. Sponsored by senior leaders in
Family Care, Feminine Care and Baby Care, African Ancestry
employees at our Winton Hill site in Cincinnati were invited toattend Efficacy, a 2-day workshop focused on concrete strategies
to shape their careers with P&G in ways that are most personally
meaningful. Managers of these employees were then invited totake a Managing for Inclusive Partnerships workshop and a P&G
signature training, Intentionally Inclusive Leadership. The final
element of the program paired participants and their managers
in Group Success Path two-way coaching and feedback sessions.
The hidden value of this program is training P&G managers how
to manage people regardless of ethnicity. The forum also gives
people the space and permission to grow their relationshipwith a psychological safety net. Over 120 employees completed
the full pilot program and, based on positive results, we are
expanding the program.

National Underground Railroad Freedom
Center PartnershipP&G understands that bias influences how effectively employees
partner with each other to deliver their work. That’s why P&G is
helping our leaders, managers and our employees more broadly,
understand the impacts of unconscious biases on workplaceactions and decisions. In 2016, when the National Underground
Railroad Freedom Center in Cincinnati promoted a new exhibit
on implicit bias called Open Your Mind, P&G executives on
the museum’s board saw an immediate opportunity to use
the exhibit to help build awareness and learning on bias. In
partnership with the museum staff, we developed a workshopthat leveraged the museum exhibits to create an immersive
learning experience meant to open the heart as well as the mind
to tackle bias. The initial pilot experience was a success and wellreceived by participants. Going forward, we are exploring how
the Freedom Center can add this workshop to their portfolio andoffer other business and community groups the opportunity tobenefit from this transformational learning experience.

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Building Inclusion as a Business
and Cultural Strategy
COMMITTING TO NEW FAMILIES“Several months after my wife and I found out we

P&G has always celebrated growth and we believe P&Gers
deserve an amazing experience as they expand their families. In
2016, we announced significant improvements in our US parental
leave benefits to include increased paid time off for new birthmoms, adoptive parents and dads. Through paid and unpaid
leave, parents can take off up to their child’s entire first year.
2017 brought an expansion of these benefits across the globe,
adding enhanced maternity, adoption and/or paternity leave
benefits in more than 25 countries to include Brazil, Mexico,
Panama, Puerto Rico, Belgium, Egypt, Spain, Singapore, South
Korea, Philippines, Thailand, Malaysia, Indonesia, Israel and many
more. As employees expand their families, this is one way wehelp them. For many of our new dads, the access to paid time
off to bond with a new child has been life-changing.

were expecting our first child, I was thrilled to learn“Changing a policy is one thing,
but having the culture to supporta change like this is really where
the true strength of P&G lies.”that P&G had updated our U.S. Parental Leave
Policy to allow for four weeks of paid paternity
leave. My wife and I were already planning how tomanage the first few weeks after our daughter’s
arrival, knowing that none of our family lives
close. But this new policy changed our approach,reduced our stress, and led to a life-changing
experience that has empowered me both at home
and at work. Changing a policy is one thing, but
having the culture to support a change like this isreally where the true strength of P&G lies. WhenI walked into my manager’s office, the first thing

my expertise in house care, cooking, and a myriad

he asked me about was, ‘Andy, you’re going toof other activities. When I returned from leave, I

take every day of eligible Paternity Leave, right?’

was refreshed, thankful, and eager to get back to

I didn’t even realize he knew about it. To havework. Unlike some new fathers at other companies

this level of proactive support made my decision

I know, I didn’t feel bad about my return to work

much easier and eliminated any anxiety I may

after leave; I felt great about the fact that I spent

have had. My month-long leave was an absolutely

a full month with them, and it’s allowed me tofantastic experience. I was able to completely

remain focused on my challenging and exciting job

immerse myself with my wife and daughter during

leading P&G’s Supplier Citizenship Program.”the critical first few weeks of our new family’s
existence — a time I will cherish forever. I relearned— Andy Butler, Product Supply Associate Director,
North America

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Building Inclusion as a Business
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CHAMPIONING A FLEXIBLE CULTURE“I was offered the role of Finance Manager at

Our flex@work program rests on a simple principle: Theinterests of our Company and our people are inseparable. To
improve the lives of our consumers, we start by improving the
lives of the people behind the products. We recognize themany demands placed on our employees to live a full life whilebalancing work responsibilities — especially in today’s real-time,
results-driven environment. Today, more than 60% of our men
and women across the globe indicate they are flexing. The
core of our latest intervention is designed to better equip ourmanagers with the tools they need to have meaningful andproductive conversations about flexibility — whether schedule
flexibility, career pacing flexibility or flexible policy and benefits.
The discussion of flexibility is an important moment of truth forour employees. When our managers and employees work in
partnership to meet the needs of the business and the employee,it’s good for all of us.

our Port Qasim Plant in Karachi, Pakistan, upon

“I trust you will give me your 100%. Rest assured
that you don’t have to worry about a thing. We
will make this work!”

return from maternity leave. I was thrilled, but alsostressed out! My husband worked long hours, so
picking up our six-month old from daycare was
my responsibility. The commute to and from theplant on a good day is about 90 minutes andthe daycare hours of operation were limited. If I
were to work full-time at the plant, I would spend
barely one hour with my son in the evening andnot see him in the morning. Returning to work
was not a conducive situation. I told my manager
how energized I was about the role, but that I justcouldn’t live with not being able to spend proper
time with my son during the week. My manager
was super supportive! We decided that I would
work six hours at the plant and cover two hours
either at home or over the weekend. My colleagues— Mohamed Shreef, Manager

understand not to plan face-to-face meetings after
my working hours, but know I’m available to meetby phone during my commute. I constantly feel
grateful towards the Company and my colleagues
who, every day, enable me to have the best ofboth worlds.”— Manah Siddiqui, Finance Group Manager,
Port Qasim Plant, Karachi, Pakistan

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Creating Value ThroughDiversity & Inclusion
In 2017, P&G hosted its fourth annual Global
Diversity and Inclusion Awards Celebration. The
awards recognize and celebrate the outstanding
work of P&G employees around the world
who have progressed diversity and inclusion
through innovation, value creation, inclusion andinspirational leadership. These awards demonstrate
our commitment to innovating for growth acrossour business so that we can delight consumers
with our products and brands. The link to diversity
and inclusion comes through our people who think
differently and challenge themselves and others
to take initiative, embrace change and tackle
challenges through diverse teams and with diverse
points of view. Here’s a look at the 2017 winners
who are helping P&G deliver better business,organizational and community results.

INNOVATIONVALUE CREATION

Pantene Gold Series TeamThe African American (AA) market is one of the biggest andfastest-growing segments in the hair care category. This
represents a huge growth potential for Pantene to serve thehair care needs of AA women — including nearly 10,000 P&G
employees around the globe. This team of inspiring, courageousand passionate P&G AA scientists, stylists and dermatologists
found emotional and historical connections behind AA hair
not being accepted as a beauty industry norm. The new
Pantene Gold Series — products designed specifically for AA
hair — challenges this norm by celebrating strong, beautiful AA
women and their incredible hair.

Japan Diversity & Inclusion Team
Embracing women in the workforce is a key strategy of theJapanese government to improve the economy and spur
diversity. With 25 years of experience in Diversity and Inclusion
in P&G Japan, we were in a unique position to help. The Japan
D&I team, in partnership with the Japanese government,
established diversity training programs for partners, government
agencies and other companies. Through these efforts, more than150 companies and 1,700 professionals have been reached, andP&G received external recognition from the Ministry of Health,
Labor and Welfare for their work in this area. While working tosupport women externally, this team went one step further tosupport families inside P&G. In 2016, P&G Japan opened two
daycare programs so new parents could be their best upon
return to work.

Pantene Gold is designed toserve the hair care needs of
AA women — including nearly

10,000P&G employees.

Learn more about the Pantene Gold Series
Check out the Innovation video

Jamila Bilabidi, Europe Product Supply Purchasing
Jamila is leading the expansion of P&G’s US Supplier Diversity
Program to Europe, India, the Middle East and Africa. Her
partnership with the United Nations Women’s Economic
Empowerment Panel, and P&G leadership, led to the Company’scommitment to helping grow women-owned business together
with the UN Women. Inspired by strong women in her
family, Jamila is a role model for bringing her full self to work,relentlessly advocating for what is right, and showing courage tohelp P&G be better positioned to succeed as a leader in supplier
diversity and gender equality.

Watch the Value Creation video

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Creating Value ThroughDiversity & Inclusion
INCLUSION
Turkey Project REACH Team
Project REACH is a unique program sponsored by our People
with Disabilities Network. The program is designed to provide
real-life work experience to people with disabilities. They aretrained and assigned to departments with heavy workload
needs. What began in 2012 with three students assigned to
FemCare in Cincinnati, has since blossomed across the Company
including all Cincinnati sites, Mexico City, Greece, UK and now
Turkey. The impact of this effort goes beyond the diversity aspectof hiring disabled workers. It is about giving them the chance tobe prepared for the job market, growing their self-esteem, andbuilding skills while earning an income. For P&G, the value isevident. This program is an inclusion enabler — helping us focus
on abilities versus disabilities as the participants increase our
productivity through their meaningful contributions.

Project REACH
Helping students with disabilities
reach their potential.

GABLE Latin America TeamThe Latin America GABLE Conference has built credibility inside
P&G with employees and outside among partners like LinkedIn,
Google, Nielsen, Ambev and DOW. Through this event, theseleaders are tackling important conversations like combatting
LGBT+ phobia to build a more equitable society and advancetransgender rights. This team is inspiring others to build a betterworld for all of us — inside and outside of P&G — reflecting
P&G’s values and the values of a growing majority of ourconsumer base.

Watch the Inclusion video

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Creating Value ThroughDiversity & Inclusion
INSPIRATIONAL LEADERSHIP
Ruba Jamjoom, HR Leader, Saudi Arabia
Ruba is a pioneer for female empowerment. As one of the first
women to join the Company in Saudi Arabia 11 years ago, Ruba
plays a critical role at P&G. Balancing her roles as an HR leader,a wife and mother, she proves that women can be effective
professionally and personally, even in a conservative culture.
Ruba coaches female employees and their managers on how to
be more effective and juggle priorities without compromising
work/life balance. She has introduced a number of social andtraining initiatives and her contributions have made a difference.
Increased retention and morale can be attributed to her efforts
and women now account for 50% of new hires in our Saudi
Arabia general offices. And others have taken notice. Ruba
works with many companies in Saudi to help them build adiverse workforce.

Hear from Ruba

Sumaira Latif, People with Disabilities Affinity Leader
and Manager, Inclusive Design
Sumaira “Sam” Latif is a role model and inspirational leader
who is passionately dedicated to improving the way consumers
experience our products. Working in partnership with the
University of Cambridge, Sam developed a tool that assesses
the inclusiveness of our products and packaging. The Exclusion
Calculator analyzes the ease of use along six vectors: brandidentification, variant selection, reading instructions, opening
pack, product usage and disposal. This provides insight intochanges we can make to improve user experience and sales to abroader population. Sam is also encouraging P&G on a journey
to champion audio description in advertising commercials. This
allows people with visual impairments to experience a full P&G
commercial. Our 2016 Olympic ads were Audio Described.
Through Sam’s leadership, she is making everyday life easierfor our consumers.

Hear from Sumaira

Linda Clement-Holmes, Former CIO
and Advisor to the CEO
Linda Clement-Holmes will forever be known for leaving a long
list of “firsts” at P&G. Linda joined P&G in 1983 as a systems
analyst. She went on to become the first African-American
senior vice president in the IT function and first female AfricanAmerican Chief Information Officer at P&G. Her “firsts” didn’t
stop there. She led the first vision and strategy for P&G’s e-mailsystem, led the partnership with Hewlett-Packard to provide
core information technology services, and spearheaded deliveryof broad business and employee services to CEEMEA. When
she was P&G’s Chief Diversity Officer, Linda crafted the firstcompany-wide diversity and inclusion strategy and established
P&G’s first Global Inclusion & Diversity Council, a foundationfor our diversity efforts today. Linda is widely recognized in
the community, having received countless awards and honors
including Uptown Professional’s Top 100 Executives, YWCA’s
Career Woman of Achievement, and the Howard University
Global Visionary Leadership Award. Linda’s contributions inleadership, innovation, and diversity and inclusion have helped
make P&G the company it is today.

Hear from Linda

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Advocating For Dialogue andAction That Drives Progress
We believe the world will be a better place if
we can all respectfully listen to — and share ourexperiences with — one another. This can leadto dialogue, understanding and more equal
opportunities for all. For years, P&G has been
driving conversations that spark dialogue insupport of all the consumers we serve. This has
spanned gender, sexual orientation, geography
and race. We believe we can be force for goodand for growth as we ultimately deliver our
Company’s mission of improving lives.

CATALYST CEO CHAMPIONS FOR CHANGE
In late 2016, we signed onto Catalyst CEO Champions for
Change, an initiative that brings together more than 50 global
CEOs and senior leaders who are visibly supportive of diversity
and inclusion by driving it in their organizations. This affirms
our support for accelerating diversity, inclusion and genderequality within our organization with commitments to forward
this movement. This includes advancing the representation of
women and women of color in senior level positions and on
the board of directors over five years, and actively sponsoringa diverse group of women.

MY BLACK IS BEAUTIFUL “THE TALK”
CEO ACTION FOR DIVERSITY & INCLUSION
In June, 2017, P&G joined 300 other companies through the
CEO Action for Diversity & Inclusion to advance diversity andinclusion in the workplace signed by more than 270 CEOs. The
power of this commitment is the bias towards action — seeing
something, saying something and then doing something about
it. Diversity is about making sure we have the right mix of talent.
Inclusion is about using that diversity to make us all stronger. It
takes both. P&G is taking deliberate steps with other companies
through this effort in three areas: creating the trusting workplaceenvironment for dialogue, understanding unconscious bias, andsharing best practices. The access to other thinking will help us
expand our own capabilities and make even more progress in ourefforts to create an inclusive environment where diverse people
can come together and offer their best ideas and performance.

In August 2017, P&G launched “The Talk” — one of P&G’s
newest campaigns from My Black is Beautiful. “The Talk” isa short video that depicts conversations many black parents
have with their children about racial bias to prepare, protect
and encourage them. We recognize issues of race and bias
are tough topics, but we believe they represent an opportunity
for each of us — whoever we are and wherever we comefrom — to engage in constructive dialogue that lifts everyone
up, regardless of background.

Watch the video for “The Talk”

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Advocating For Dialogue andAction That Drives Progress
CONNECTING AFRICAN ANCESTRY MALEEMPLOYEES WITH LAW ENFORCEMENT
Hasani Gillispie, a P&G Research & Development leader, reminds
us that incredible things can come from crises, that individuals
can inspire change on a grassroots level, and that dialogue itself
can be the catalyst needed for progress. Hasani has been active
in our AA community for years but it wasn’t until the summerof 2016 when, amidst fatal interactions between police andAA males, his daughter posed a question to him “What are
you going to do?” And with that question, the “Bridge of Life”
project was born.
This program creates bridges between local police departments
and the AA community through dialogue sessions and sharedactivities. AA P&G employees and police officers participate inboth moderated and 1:1 sessions to develop new and personalunderstanding and respect for the experiences of each group,
which can ultimately build bridges between the communities.
While this program is in its infancy, everyone involved has been
personally moved by the experience. The impact of Hasani’s
leadership — his willingness to think outside of the box and takea risk — is improving the lives of employees and the communities
in which we work and live.

MARC ™ is a dialogue designed
to engage the hearts andminds of men as full partners
in achieving gender equality
inside and outside P&G.
MEN ADVOCATING REAL CHANGE
We aspire to build a better world for all of us — a world freefrom gender bias with equal representation and equal voices for
women and men. P&G is committed to 50-50 representationof women and men of all ethnic backgrounds, at all levels,in all parts of the Company. We believe this is good for ourbusiness. We also believe that to achieve this goal, it requires
the leadership and voices of men and women. It takes us all. So,in partnership with Catalyst, we are in our second year of an
initiative called MARC (Men Advocating Real Change). More thana training program, MARC is a dialogue designed to engage thehearts and minds of men as full partners in achieving genderequality inside and outside P&G.

Hear more about MARC from our head of sales

Jeffrey K. Schomberger
Global Sales Officer

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ADVOCATING FOR DIALOGUE AND ACTIONTHAT DRIVES PROGRESS

Men Advocating forReal Change (MARC)
Attending a MARC workshop affects leaders in different
ways. For me, it was transformational. I always thought I
was rather “enlightened” in my attitudes towards genderequality. Through MARC, I realized that the depth of
thinking and self-awareness I needed to make a realdifference was simply not there. It is not enough just to
say “I am for gender equality,” lead diversity reviews,
or ensure that an affinity group has facilities to meet on
a monthly basis. To be an effective leader of a diverse
workforce, one has to make a deliberate, continuous
effort to deeply understand the dynamics involved,
engage in dialogue, and act. This is no different from anyother area of the business: after all, if we want to launcha new product we need to become knowledgeable ofconsumer and customer dynamics, and of our capabilities
to produce and market the product. The same applies
when we aim to lead a diverse workforce and engage
people through inclusion. We cannot hope to become
effective leaders unless we apply the same quality ofanalysis, strategic thinking and execution to diversity
and inclusion as we do to running the business.

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The MARC workshop puts men front and centerin gender dynamics. This can be uncomfortable
at times. I realized that for me, over the years,
most diversity and inclusion talk has been
about the “other” (women, non-white, LGBT).
When men talk of gender-related issues in theworkplace, for example, we really talk about theissues women face in their careers. It’s almost
like white men don’t have a gender, race or
ethnicity. We just “are,” and others are definedby their difference versus us. Essentially, we
leave ourselves unexamined, and in a diverse
environment this undermines our growth
as effective leaders. Not seeing ourselves
under the lens of gender, or other forms ofdiversity, inevitably leads to assuming that 1)
D&I is someone else’s problem; 2) it is about“helping someone else,” and 3) consciously or
unconsciously, think that if “others” just behaved
like us, everything would be fine. Don’t get me
wrong, intentions are usually very good, but
we need a much deeper level of understanding
and engagement if we really want to makea difference. For me, MARC boldly started a
dialogue (with myself and other male colleagues)
about what we assume to be normal (but it
is not), how much business culture is a man’sculture, and the privilege I had in belonging to
the dominant culture from the beginning of
my career.

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I found that once I examined what it means
to be a man in the workplace from a gender
standpoint, I recognized that there has always
been a “light tailwind” behind me. Yes, we cancall it privilege, even if it has nothing to do withmoney. Don’t get me wrong, I worked as hard as
I could to get where I am today — no silver spoon.
Also, it is not my fault that this tailwind exists.
However, it is there. If I have a new child, I don’t
have to worry about others making assumptions
on my career ambition, or readiness to travel orrelocate. As a man, I am also far less likely to be
judged “overly assertive” or “not communicating
appropriately.” I don’t have to worry much about
security while on business trip, about being
judged on my appearance, or being harassedon the way to work. It’s the essence of invisible
privilege — not having to worry about things
that others have to.
The main question that MARC poses to men
is “how do I live my privilege honorably?” It issenseless to feel guilty or blamed about it …
it comes from a long tradition and centuriesof history. However, we need to accept
responsibility to spread this privilege to people
who don’t have it … it is not a zero-sum game.
MARC helps open minds to dialogue, enables
leaders to be more effective, and works tomake everyone privileged. Isn’t this the essenceof inclusion?

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Giorgio Siracusa
Vice President, Human Resources
P&G Europe

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63Bringing Out Our Best Everyday
At P&G, we believe diversity and inclusion comes
down to the everyday choices and actions of every
individual. When we unite to bring out the best ineach other, when we invest in our communities,
when we are open to the insights and innovationthat 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.

37TH VETS WHEELCHAIR GAMES ROCKS
AND ROLLS CINCINNATI
P&G and the Department of Veterans Affairs and Paralyzed
Veterans of America co-presented the 37th National Veterans
Wheelchair Games in July, 2017. With more than 550 veteranscompeting this year, this event empowers veterans withspinal cord injuries, multiple sclerosis, amputations and otherneurological injuries to live more active and healthy lives throughwheelchair sports and recreation.
Each summer, veterans from across the United States, including
a team from Great Britain, travel to a new community hosting
the games. During the week, veterans compete in 19 wheelchairsports events while providing encouragement, mentoring andeducation for newly injured veterans on what is possible.
Those witnessing the events realize that limitations are only
state of mind.
Beyond the participants’ impressive display of athleticism, thegames strike a particular resonance with our employees — an
inclusive, coming together of all people. Several hundred
P&G employees joined the games to volunteer and spectate.
Impressively, the 37th National Veterans Wheelchair Games was
the #1 trending Twitter topic for the week of July 17th, 2017,
reaching over 45 million people globally.

“P&G is proud of this connection. We find thatveterans bring leadership, discipline, perseverance
and teamwork skills that can enhance our work
systems and culture, creating competitive
advantages that can lead to better business results.”— David Taylor
P&G Chairman of the Board,
President and CEO

RESTORING THE HOME OF THE HOUMA NATIONWe all desire a better life for our children, but education was
not available for Native American Indian children until the 1940s.
Given the historical significance of this event, the Houma Tribeis dedicated to bringing their first school building back-to-life
as home to the Houma Nation. Currently uninhabitable, andseverely in need of attention, the P&G Native American Indian
team worked intensively for a day to begin the restoration
process. Houma Principal Chief, Thomas Darda, Jr., touchedby the miraculous results, gave an emotional speech, thanking
each volunteer individually for their work ethic and the support
provided by P&G to the Houma Nation.

The P&G Native
American Indian teamworked intensively to
begin restoring the homeof the Houma Nation.

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Bringing Out Our Best Everyday
PRIDE
Twenty-five years ago, Procter & Gamble stood for inclusion
by adding sexual orientation to our non-discrimination policies,
reinforcing fair treatment for everyone. Then, and now, we
understand people can only reach their highest potential
when they are able to work in an environment that values andrespects who they are — a place where living their truth is justas important as the bottom line. Today, P&G is proud that wehave Gay, Ally, Bisexual, Lesbian and Transgender (GABLE)
organizations in 43 countries with more than 5,000 members.
Our Company also sponsored the 2017 World Pride Paradein Madrid, with employees from four of our five regions
represented. We were also active in 25 Pride Parades on fivecontinents this year and look forward to expanding that activity
in the future. Understanding, valuing and embracing thediversity of those we work with enhances our ability to serve
others. Whether through our dedicated LGBT and ally employee
network — GABLE, providing equal benefits for same-sex
partners, or standing behind the belief that everyone shouldhave the right to marry whomever they choose, we are steadfast
in our commitment to a culture of inclusion and respect.
We believe labels are for products, not for people which wecelebrated during 2017 Pride through our video “100% of Me.”

Watch “100% of Me”

P&G has GABLE organizationsin 43 countries with more than

5,000 members.

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65Bringing Out Our Best Everyday
DIVERSITY & INCLUSION WEEK
Each year our annual Diversity & Inclusion Week unites
employees in our offices, innovation centers and plants aroundthe world as we continue building a culture that celebrates
Everyone Valued, Everyone Included, Everyone Performingat their PeakTM. Events center on building awareness andencouraging conversations on topics like bias, empathy,
race, discrimination and flex@work while opening space forself-reflection and idea sharing. In 2017, we also used theopportunity to celebrate International Women’s Day aroundthe world, and reinforced our commitment to gender equality
by sharing our point of view with the launch of #WeSeeEqual.
Here are a few highlights from this year’s Diversity & Inclusion
week activities:
EuropeP&G Europe’s D&I “week” went from late February 2017 until
the end of March 2017, proudly celebrating the uniqueness ofeach and every employee. Celebrations were held in 70+ sites,
reaching nearly 30,000 employees.
Gary Coombe, President, P&G Europe, is helping embrace
employees’ differences to inspire each other. He believes ingender equality and #WeSeeEqual as the kind of leadership theworld expects of big brands and big business, and that
we expect of ourselves.

North America
North America experienced one of the most successful D&I
weeks yet with widely attended participation across CincinnatiGO sites, a majority of plants and sales offices. A consistenttheme was that it felt different in driving a higher level ofinclusion. Innovative new inclusion programs were piloted
including a Power of Dialogue and What is Your Truth workshopsthat a majority of participants said were relevant, led to newlearning, and will lead to behavior change.
The annual D&I Fair was three times larger this year. Exhibitors
included representatives for all of our affinity networks, other
employee support networks like our Vibrant Living Program, andlocal organizations including The National Underground Railroad
Freedom Center and the Cincinnati Chamber of Commerce.
Latin America
P&G LA held its 7th annual D&I Week from February 27thto March 17th, reaching nearly 10,000 employees in theregion. To set the tone and open the celebrations in LA,
Juan Fernando Posada, President P&G Latin America, kicked
off the week, inviting employees to engage in events centeredaround International Women’s Day focused on gender diversity
and engaging men as allies in our quest for gender balance in
the Company.
The 2nd LA GABLE Conference in São Paulo attracted 140
employees from 10 different countries and drew in external
guests from Google, LinkedIn, Nielsen, Ambev and DOW, among
others. LA’s diverse spirit was alive in celebrations in Argentina,
Brazil, Chile, Colombia, Costa Rica, Mexico, Panama, Peru,
Venezuela and in LA’s plants.

Asia
D&I Week in Asia focused on empowering women withactivities coinciding with International Women’s Day. Employees,
regardless of gender, from all APAC markets came together
to help make P&G not only a more gender-equal organization,
but also a thought leader in gender equality in the world.
Events spanned topics including dialogue to break down
stereotypes and how to build an inclusive culture, and launchof new Lean In Circles in the region.
IMEA
IMEA used D&I Week and the celebration of International
Women’s Day to become accelerators for Gender Equality.
They used the opportunity to invite employees to add theirown twist to #WeSeeEqual, inviting them to share what it means
to them. Here is the winning video from the Cairo GO Team.

Watch the video

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Bringing Out Our Best Everyday
We actively support eight affinity groups in the
US and three globally. A senior leader sponsors
each group, and they meet regularly withexecutives on key issues. Each of these groups
bring experience and insight to lead change
throughout the Company and to influence
our brands and products.

GLOBAL AFFINITY GROUPS
Corporate Women’s Leadership Team (CWLT)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 Transgender
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 selves to work every day.
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.

People With Disabilities (PWD)
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.

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NORTH AMERICAN AFFINITY GROUPS
African Ancestry Leadership Network (AALN)
The African Ancestry Leadership Network (AALN) is one of theoldest employee groups within P&G. It is dedicated to helping
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 createa more inclusive environment. Beyond employee development,
the AALN provides insights about African Ancestry consumers
to enable P&G’s brands to connect with more consumers inmore parts of the world.
Asian Pacific American Leadership Team (APALT)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.

Hispanic Leadership Team (HLT)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 American Indian Network (NAI)
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
in which we live.
Veterans And Reservists Network
The Veterans and Reservists Network, our newest affinity
network, wants to be known for attracting and retaining
the highest quality US military veterans and reservists to theCompany. Their purpose is to attract and place top talent, enable
fast starts through mentorship, and build a positive environment
through volunteering and community support.

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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 neverbe over. We will continue to learn and improve forgenerations to come. We want to have a positive
impact on our employees’ lives and careers — andthe lives and careers of our business partners’
employees. And, we’re humbled when others tellus the impact we are having through awards
and recognition.

annually. In 2017, we also expanded our Supplier Diversity
program globally. We launched Women’s Business Development
programs in five countries (Turkey, China, Nigeria, South Africa,
Mexico) and made a public commitment at Global Citizen 2017to spend at least $100 million with woman-owned businesses
outside the United States over the next three years
Our external business partners, or suppliers, play a critical role inadvancing Citizenship at P&G. Through our Supplier Citizenshipprogram, we partner with our suppliers to drive citizenshipthroughout our supply network to deliver even greater impact
and innovation. When we are synchronized with our Suppliers,
the possibilities are endless.

GLOBAL SUPPLIER DIVERSITY
Supplier Diversity has been a business strategy at P&G since 1976,
because we know that when our Supply Network reflects thediversity of our consumers, employees and stakeholders, ourbusiness grows and our community thrives. We partner withorganizations like the National Minority Supplier Development
Council (NMSDC), Women’s Business Enterprise National Council(WBENC) and many others to identify and develop strong
diverse-owned businesses. The NMSDC Annual Conference is thelargest annual gathering of the Supplier Diversity industry, andlast year we leveraged this Conference as a platform to bring our
Supplier Ecosystem together. We invited over 50 of our Suppliers,
both diverse-owned and majority-owned, to attend theconference with over 100 P&G leaders to connect, collaborate
and grow. We helped our majority-owned suppliers make over
200 connections with prospective diverse suppliers to ensure
the spirit of supplier diversity penetrates all levels of our supply
network. For ten straight years, P&G has exceeded $2 billionin spending with our diverse suppliers and we’re proud of ourparticipation in the Billion Dollar Roundtable, an elite group of
28 companies that spend at least $1 billion with diverse suppliers

Learn more about Supplier Citizenship

Recognition for our Supplier Diversity efforts:• Corporation of the Year, Ohio River Valley
Women’s Business Council• Best Supplier Initiative on Gender Diversity, 2016 LSA

P&G has exceeded$2 billionin spending with our diverse
suppliers over 10 years.

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Strengthening Our Legacy
DIVERSITY RECRUITINGEYES ON THE FUTURE

We understand consumers because we attract, recruit, hire
and retain diverse people. A culture of diversity and inclusion is
deeply rooted into our Purpose, Values and Principles. Diverse
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.

Our P&G Newcastle Innovation Center (NIC), one of our Fabricand Home Care R&D sites, celebrated the 60th anniversary of
their facility by focusing on the future. As a company that is built
on innovation, the site leader brought our innovation to life for agroup of 155 “scientists of tomorrow’ from 14 local high schools
for a STEM Career Day. The event took place at the perfect time
to reach students before making their final college decision.
Advances in STEM Innovation is at the core of how our company
is celebrating a 180-year legacy of touching and improving
lives. We used this opportunity to showcase the dynamic
possibilities of a career in STEM, the importance ofdiversity in the workforce and to help young women
overcome some of the cultural and societal
barriers to choosing a career in science.

Look for us at these recruiting events:• Service Academy Career Conferences• National Society of Black Engineers• Consortium for Graduate Study in Management• National Black MBA Association• Management Leadership for Tomorrow• Prospanica• Society for the Advancement of Chicanos/Hispanics andNative Americans in Science• Society of Asian Scientists and Engineers• Reaching Out MBA• Society of Women Engineers• Society of Hispanic Professional Engineers• American Indian Science and Engineering Society• Annual Biomedical Research Conference for Minority Students• INROADSENVIRONMENTAL SUSTAINABILIT Y

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Strengthening Our Legacy
DIVERSITY & INCLUSION RECOGNITION

North America

Leadership Development

Asia• Top Company for Executive Women by Working Mother
Media, National Association of Female Executives• Amy Eskoff Garrett, North America Sales, awarded 2016
Women of Influence by the Network of Executive Women• Top Company for Multicultural Women by Working
Mother Media• William Gipson, President, End-to-End Packaging
Transformation and Chief Diversity & Inclusion Officer,
named to EBONY Magazine’s Power 100 List

• IKUBOSS Award Grand prize for diversity & inclusion by
Japan’s Ministry of Health, Labor and Welfare• Kotomi Takagi, SK-II Shinga Plant Manager, received Forbes
Innovative Woman Award
Europe• Best Company in LGBT by Spanish LGBT Foundation
Federation• P&G Spain named Employer of Choice for the Consumer
Goods by Ranstad
IMEA• Employer of Choice at East Africa Employer of Choice Awards• P&G Near East named Best Employer by Aon Hewitt• Hanan Heakal recognized for her work on Women’s
Empowerment by Global HR Forum
Latin America• P&G Chile Ranked #1 Chilean Employer for Youth Ranking
as best company for young professionals• P&G Chile Top 4 — Best Companies for Working Mothersand Fathers by Fundacion Chile Unido and El Mercurio’s
Ya Magazine• One Hundred Best Companies for Working Mothersby Working Mother Media• Top 50 Company for Diversity by DiversityInc.
• Top 50 Company for Diversity Councils by DiversityInc.
• Top 50 Company for Mentoring by DiversityInc.
• Perfect Score, Human Rights Campaign’s Corporate
Equality Index• Marketplace Award by Disability Matters, Springboard
Consulting• P&G Canada Top 100 Employers Award by Globe andMail newspaper• P&G Canada listed as a Best Diversity Employers by
Mediacorp Canada• Kara Roede and Kristin Okhuysen, 2017 Honorees for STEP
Ahead Awards for women in manufacturing by the National
Association of Manufacturers• Jennifer Biggs, 2017 STEP Ahead Emerging Leader for
women in manufacturing by the National Associationof Manufacturers• Carolyn Tastad, Group President, North America, Selling &Market Operations and Executive Sponsor, Gender Equality,#37 on Fortune’s list of Most Powerful Women• Kelly Vanasse, Vice President Communications, Global
Business Units, 2017 Achiever Award honoree by CEW,
recognizing women leaders in the cosmetics industry• Ranked #1 by Forbes for developing the best c-levelmarketing leaders• Ranked #1 by Forbes as top company for MBA
marketing students

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GenderEquality
Overview
Message from Carolyn Tastad
Leveraging our Voice in Advertisingand Media
Supporting Education for Girls andEconomic Opportunities for Women
Creating an Inclusive Environment
within P&G
The Power of Partnerships

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Gender Equality Overview
We aspire to build a better world for all of us — inside and outside of P&G —free from gender bias and with an equal voice and equal representation for
women and men. A world where everyone sees equal.
This focus makes sense for P&G, as many of our products are made uniquely
for women and girls. We have deep insights into their lives, their challenges
and their aspirations.

To create a world where everyone sees equal, we are focusing
on three areas where we can have the greatest impact:

INSPIRING A NEW EXPECTATIONWITH #WeSeeEqual• Leveraging our voice in advertising and media to tackle
gender bias;

We believe that when we make gender bias visible andbring awareness to it, we have the power to motivatechange. We launched #WeSeeEqual in March 2017 to
inspire a new expectation and re-set the outdated narrativethat has been in place for far too long. The video has beenviewed millions of times in more than 180 countries andwas named one of the most inclusive ads of 2017 by the
Association of National Advertisers.

• Removing gender-biased barriers to education for girls
and economic opportunities for women through our brandand corporate programs and policy advocacy efforts; and• Creating an inclusive environment for our employees with
50-50 representation of women and men.
In all of these areas, we partner with highly engaged
organizations that share our commitment and where we can
combine our resources, talents and skills to have a broader
and bigger impact.

The #WeSeeEqual video has been seen
millions of times in more than180 countries.
#WeSeeEqual

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Gender Equality Overview
REMOVING BARRIERS TO EDUCATIONAND ECONOMIC OPPORTUNITIESLEVERAGING OUR VOICE IN ADVERTISING
AND MEDIA
P&G’s brands — including Always, Ariel, Dawn, Fairy, Luvs,
Pantene, Secret, SK-II, Tide and others — continued to deliver
campaigns that break down stereotypes and start conversations
that motivate change.
Some of the ads tackle important issues like girls’ confidence,
while others break down stereotypes and set new expectations
by portraying characters in a gender-equal setting. The
campaigns, told in each brand’s unique voice in a way thatconnects with consumers, build the business and contributeto a better world.
We’ve joined forces with other companies, including competitors,
to collaborate for good. We’ve committed to support:• The Association of National Advertisers (ANA) #SeeHer
movement to reflect accurate portrayals of women and girls
in advertising and media; and• The UN Women-led Unstereotype Alliance, a group of about
20 companies around the world focused on addressing andeliminating stereotypes in advertising. (UN Women is theUnited Nations entity that champions gender equality andthe empowerment of women worldwide.)

We’re helping to ensure access to education for girls andeconomic opportunities for women through our public policy
advocacy efforts as well as our brand and corporate programs.
Our Supplier Diversity program, which has been operating in the
United States for more than 40 years, is a great example. This
program is focused on awarding purchasing contracts towomen- and minority-owned businesses — including military
veterans, people with disabilities and LGBT business owners.
We have more than $1 billion of spending with women-owned
businesses in the United States. With recent expansion into
China, Mexico, Nigeria, South Africa and Turkey, the program
is now in place in each of the five regions where P&G does
business, with expansion into additional countries planned soon.

P&G has more than

$1 billionof spending with womenowned businesses in the
United States.

CREATING AN INCLUSIVE ENVIRONMENTWITHIN P&G
We are committed to achieving 50-50 representation in allparts of our Company and ensuring an inclusive environment
where everyone — men and women — can contribute to theirfull potential.
Our commitment extends beyond the walls of P&G. We area founding partner of Catalyst CEO Champions For Change,
an initiative that brings together more than 50 global CEOsand senior leaders who are
visibly supportive of diversity
and inclusion by driving
it in their organizations.

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Message from Carolyn Tastad

We are making steady progress against our aspiration to create a world
free from gender bias.
Our brands continue their ground-breaking work to deliver advertising
campaigns that uncover gender bias — sparking conversations that motivatechange. We have built or expanded partnerships with organizations thatshare our commitment to eliminate gender-biased barriers to education andeconomic opportunity. And internally, we continue to move toward our goalof an organization with 50-50 representation at all levels and an inclusive
environment where our people can thrive.
When women have the opportunity for full representation, businesses
perform better, economies prosper, communities are healthier and the world
is a better place — for everyone.
— Carolyn Tastad
Group President, North America

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Leveraging our Voicein Advertising and MediaWe are a company of brands, each with their own
personality and character. Brands are the heart ofour business. And as the world’s largest advertiser,
we reach a lot of people.
We have committed to leverage our voice inadvertising and media to tackle gender bias.
Sometimes we create campaigns that directly address an issue —like gender bias, racial bias or girls’ confidence. Other times, it
may be as simple — and yet as powerful — as breaking down
stereotypes — representing a more “equal world” in how the men
and women in the advertising are cast — and how the story istold. For example, we show dads cleaning up messes in kitchens,“swiffering floors,” sharing parenting duties and doing laundry.

We believe that when we makegender bias visible, and bringawareness to it, we have thepower to influence it.

ALWAYS #LIKEAGIRL
Always, the leader in global feminine hygiene, is a brandgrounded in helping girls worldwide feel more confident.
Three years ago, Always discovered that 50% of girls experiencea huge drop in confidence at puberty, often triggered by theonset of their first period. Many girls never get that confidence
back. As the brand that has championed girls and women for
more than 30 years, Always embarked on a mission to stop thatdrop in confidence.
The first iteration of the #LikeAGirl campaign demonstrated the
profound effect the use of the phrase “like a girl” has on girls’
confidence. The phrase was commonly used as an insult — socommonly, in fact, that many people didn’t even recognize thebias in it. Always set out to change that and make “like a girl”
stand for amazing things. They created a campaign asking girls
and boys what it means to do things “like a girl.” After seeing the
campaign, 76% consider “like a girl” a positive expression versus
only 19% before.
This was the starting point. The latest iteration of Always#LikeAGirl is designed to tackle another key knock to a girl’s
confidence — the fear of failure. Based on the insight that halfof girls feel paralyzed by fear of failure during puberty, the latest
Always #LikeAGirl campaign encourages girls to embrace failure
as the fuel to build confidence and Keep Going #LikeAGirl.

The newest Always
campaign encourages girls
to embrace failure as thefuel to build confidence andKeep Going #LikeAGirl.

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Leveraging our Voicein Advertising and MediaFAIRY HOW FAIR IS HOMEREJOICE: CELEBRATING WOMEN

Inspired by the insight that British women still do 70% of all
domestic chores, even those in full-time work, Fairy removed
the ‘Y’ from its iconic logo to remind all family members to help
around the house, particularly when it comes to washingthe dishes. Fairy revealed how there still isn’t a fair split of chores
in homes today and got consumers to pledge to #MakeItFair.

Rejoice is a hair care brand in China and throughout Asia thathas a history of celebrating women who pursue their dreams.
The brand’s newest campaign in China, called Pilot, builds on
the insight that post-1990s Chinese women have goals theywant to achieve, and they know how to be agile in overcoming
life’s barriers while remaining true to themselves. The advertising
depicts women in situations — like pursuing a career as a pilot —that were previously dominated by men. Rejoice continues its
legacy as a brand that supports women who hold on to theirbeliefs and convictions.

ARIEL #SHARETHELOAD

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.
SK-II’s “Marriage Market” video put a spotlight on the reallife issue of Chinese women who are feeling the pressure to
get married before they turn 25. Most recently, the film “TheExpiry Date,” follows the journey of three women as they passthrough stages in life with growing pressure placed on them bysociety — manifested as an increasingly visible physical expiry
date imprinted on their forearms.

Ariel is a market-leading laundry detergent brand that
uncovered another insight rooted in gender bias and tooka stand on societal norms. The insight is that in India, 70%of children — girls and boys — believe household chores are
women’s work. It’s part of the culture and deeply rooted. Our
Ariel team wanted to inspire a new expectation — and ask men
to #ShareTheLoad. This campaign is about the bias that exists aspart of our day-to-day lives. It shows a father’s discovery as hewatches his daughter juggle her responsibilities — finishing her
work, making tea for her husband, managing her son’s laundry,
and he resolves to become part of the solution. This campaign
prompted more than 2 million men in India to sign a petition to“share the load” and help out at home.

More than

2 million men
in India signed a petition to “sharethe load” and help out at home.

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Leveraging our Voicein Advertising and MediaAll of these campaigns across our portfolio of brands aredifferent, unique and true to the brand’s voice. They show
the world we all want to live in — and they build the business.
We’re doing our part at P&G, but we know we can have broader
impact through industry collaboration. We’ve joined forces
with several industry groups — other companies, including
competitors — to bring clarity to the problem and showcase
the opportunity for change and potential solutions.

CAMPAIGN VIDEOS

Always #LikeAGirl – Keep Going

Secret #StressTest – Pitch

SK-II #ChangeDestiny – Expiry Date

Secret #StressTest – Raise

Ariel #ShareTheLoad

Rejoice – Pilot

We’ve committed to support:• The ANA #SeeHer movement to drive awareness of genderbias in advertising and encourage a more accurate portrayalof women and girls in advertising and media. Their studyof 30,000 ads found that 28% of ads negatively portray
women — through some form of stereotyping, objectification
or a diminished character.
• The UN Women Unstereotype Alliance, as one of 20 founding
companies around the world to eliminate stereotypes inadvertising, as well as the UN Women Study on Gender
Attitudes to measure changes in attitudes on genderequality in more than 40 countries for the next 10 years.

A study of 30,000 ads,
performed by ANA, found that

28% of ads
negatively portray women.

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Leveraging our Voicein Advertising and MediaGENDER EQUALITY IN THE SPOTLIGHT ATWOMEN IN THE WORLD AND CANNES LIONS
We were proud to join the conversation at the Women in theWorld Summits in New York and Toronto, events which bring
together women leaders, activists and political change-makers
from around the world to share their stories and offer solutions
for building a better life for women and girls.
Chief Brand Officer Marc Pritchard took the stage in New York
City during the 8th annual Women in the World Summit, while
Carolyn Tastad participated in the Inaugural Women in the World
Canada Summit.
Both highlighted P&G’s belief in the role of advertising inuncovering gender bias during panel discussions entitled“Flipping the Script.” The panels focused on steps that advertisers,
creative agencies and others are taking to promote genderequality in advertising.

“As the world’s largest advertiser, we can be a
The ‘Flipping the Script’ panel in Canada included,from left, news anchor Wendy Mesley,
Carolyn Tastad, Madame Sophie Gregoire Trudeau,champion for girls and women’s issues andwife of Canadian Prime Minister Justin Trudeau,
Madonna Badger and Canadian actressRoseanne Supernault.

force for good. Indeed, advertising can actively
encourage gender equality. Advertising has an
impact on how people see themselves.”— Marc Pritchard
Chief Brand Officer

Marc also led a compelling panelat Cannes Lions International
Festival of Creativity in June.
During the panel, called Creativity+ Responsibility (pictured below, from left), Marc and valued
partners Madonna Badger, Chief Creative Officer, Badger &Winters, and the creative agency behind #WeSeeEqual; Tina
Brown, CEO & Founder at Women in the World; and Sheryl
Sandberg, Chief Operating Officer, Facebook, shared how brands
use their creative voices both for good and for growth.

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DIVERSIT Y & INCLUSIONLEVERAGING OUR VOICEIN ADVERTISING AND MEDIA

Inspiring a New Expectation
with #WeSeeEqual
We launched #WeSeeEqual in March 2016.
The video is our way of sharing our vision andinspiring those around us to consider their own
gender bias and take steps to correct negativeor outdated stereotypes that weigh us down.
With all of us as active participants, we canreach beyond our own walls and encourage
society to see the world differently.
The video has been viewed millions of times
in more than 180 countries and was named
one of the most inclusive ads of 2017 by the
Association of National Advertisers.
Watch #WeSeeEqual Advertisement#WeSeeEqual

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

P&G has several long-standing programs that support
this commitment:

ALWAYS AND GIRLS’ EDUCATIONThe Always Puberty and Confidence Education Program hashelped girls, teachers and parents for more than 30 years byproviding free educational resources and samples that help girls
understand the changes they will go through during puberty
and how to cope with them. The program reaches more than
17 million girls and young women in 70 countries per year.
Innovative teaching approaches ensure teachers are able toreach their students in a way that best suits their country’s needs.
The curriculum is also adapted for different contexts and in lightof varying cultural sensitivities around menstruation.
Always has several other long-standing programs that support
our commitment to tackle barriers to girls’ education, especially as
they enter puberty. For example, in some parts of the world, one
in 10 girls stays out of school three to five days every month whenon their periods, and many drop out of school altogether. Our
Always Keeping Girls in School program set about to change that,by providing girls in Africa puberty education and free sanitary
pads. Since its launch in 2006, the program has distributed morethan 8 million pads to more than 100,000 girls, with 78% ofschools documenting an improvement in girls’ attendance.

Since 2006, we have
distributed more than

8 million pads
to more than 100,000 girls in
Sub-Sahara Africa.

P&G SHIKSHA
For more than 12 years, P&G India has provided access to
education for underprivileged children through the Shiksha
program. Shiksha means education in Hindi, and the program
has expanded its focus on removing barriers and ensuringmarginalized girls are able to attend school.

CHILDREN’S SAFE DRINKING WATER
Our Children’s Safe Drinking Water Program provides more than
one billion liters of clean drinking water each year and helps
women and girls who are disproportionately burdened by the
global water crisis. Using our P&G water purification packets,
women and girls can easily purify water in their own homes,saving time that can be devoted to attending school and finding
other economic opportunities to improve their lives and thoseof their families.

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Supporting Education for Girls andEconomic Opportunities for Women
In addition, we have made important progress on othereconomic empowerment initiatives:

SUPPORTING WOMEN THROUGH TRAINING
Last year, we partnered with WEConnect International tolaunch Women’s Business Development Programs in fivecountries — Turkey, Mexico, Nigeria, China and South Africa.
We brought together local female entrepreneurs to learn from
P&G leaders and each other to develop their business strategies
and skills, tailoring the program to meet the needs of eachcountry. Through this initiative, we helped develop more than
100 women entrepreneurs last year, all whom will make a lasting
impact on their communities.

RAISING AWARENESS ABOUT
THE GENDER PAY GAP
At P&G, fair pay practices and an equitable workplace arecore Company beliefs and essential to our long-term success.
Unfortunately, that’s not the norm across the United States,
where women on average are paid 20% less than men, and thediscrepancy for women of color is even greater.
For Equal Pay Day, which was recognized in the US on April
4, 2017, P&G supported LeanIn.Org’s #20PercentCounts, acampaign to raise awareness about the pay gap between
women and men in the United States. P&G, along withbusinesses in 25 US cities, offered 20 percent discounts andspecial offers on a basket of P&G goods.

In the U.S., women on
average are paid

20% lessthan men, and the discrepancy for
women of color is even greater.

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Supporting Education for Girls andEconomic Opportunities for Women
ENCOURAGING STUDENTS IN STEM
P&G believes that STEM (Science, Technology, Engineering& Mathematics) Education is critical for developing future
innovation leaders. And we are committed to work withthe communities where we operate to support students withthe potential to be successful STEM professionals. Recent
highlights include:
United Kingdom
Newcastle, UK, site leaders hosted a STEM career day withhundreds of scientists of tomorrow from local high schools. P&G
team members educated students on the dynamic possibilities ofan education and career in STEM, the importance of diversity inthe workforce and, in particular, encouraged young women to
overcome the cultural and societal barriers to choosing a careerin science.
United States
In Cincinnati, Ohio, we partnered with Greenlight for Girls (g4g),
an international organization dedicated to encouraging young
women and girls to pursue studies and careers in STEM. We
welcomed hundreds of girls to Cincinnati and showed themwonderful P&G role models to reinforce that anything is possible.

Singapore
Our Singapore Innovation Center hosted teen girls for a fun-filled
day in the laboratory where volunteers shared perspectives fromtheir careers as researchers. The girls were exposed to hands-on
activities in the laboratory and got an inside look at the sciencethat goes into our products. They saw first-hand the technologythat allows P&G to touch and improve lives every day.

We gave teenage girls theopportunity to experiencehands-on activities in ourlaboratory and receive aninside look into the scienceof our products.

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Creating an Inclusive Environment
within P&G
We are committed to being a voice for genderequality globally, and we are committed toachieving gender equality within P&G. We arefocused on creating a supportive environment
and inclusive culture for men and women where
everyone can contribute to their full potential. And
we are striving to achieve 50-50 representation in
all areas of our Company.
CATALYST CEO CHAMPIONS FOR CHANGE
We signed on to Catalyst CEO Champions For Change, an
initiative that brings together more than 50 global CEOs andsenior leaders who are visibly supportive of diversity andinclusion by driving it in their organizations. This affirms our
support for accelerating diversity, inclusion and gender equality
within our organization with commitments to forward thismovement. This includes advancing the representation of
women and women of color to senior-level positions and toboards of directors.

We have joined more than

50 global
CEOs
and senior leaders to drive
diversity and inclusion in
our organizations.

In 2017, we expanded ourparental benefits in

26 countries
to include enhanced maternity,
adoption and/or paternity leave.

COMMITTING TO NEW MOMS AND DADSIn 2016, we announced significant improvements in our US
parental leave benefits to include increased parental leave forall parents and additional benefits for birth moms and adoptive
parents. We believe this is an important time for all parents andwant our programs to encourage all parents to be fully involvedin their children’s lives. Through paid and unpaid leave, parents
can take off up to one full year to be with their new child.
2017 brought an expansion of parental benefits across theglobe, including enhanced maternity, adoption and/or paternity
leave benefits in 26 countries including Mexico, Panama, Puerto
Rico, Belgium, Egypt, Spain, India, Singapore, South Korea,
Philippines and many more. As employees expand their families,
these programs and policies can help them have a rewarding
experience, giving both parents the access to paid time off tobond with their new child.

LEAN IN CIRCLESIn June of this year, P&G hosted Fireside
Chats at our Boston and Cincinnati sites
with Sheryl Sandberg, COO of Facebook,and author of bestselling books Lean In
and Option B,. Sheryl graciously thanked
P&G for serving as one of the founding
corporate partners of Leanin.org and for continuing to be one of
the largest supporters of Lean In with more than 4,000 womenparticipating in Lean In Circles around the world.
Lean In is about helping women unleash their full potential.
Lean In Circles provide a forum for women to get peer-topeer support and tackle business and career challenges andopportunities in a safe environment. This past year, we have
expanded the audience for Lean In circles to include all countries
around the world.

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84Creating an Inclusive Environment
within P&G
CHAMPIONS FOR EQUALITY
Our commitment to Gender Equality shows up in various ways
throughout our organization:
FemPowerment
Our global Feminine Care team launched FemPowerment tobring the Company’s Gender Equality focus to life within the
Feminine Care organization. The initiative helps ensure that
all employees including women can grow and succeed, feelexcited to come to work to and still have energy to take backhome. Ultimately, the program’s goal is to help FemCare retain
and advance the best talent to deliver increasingly better results
behind gender-balanced teams.

ENGAGING MEN IN GENDER EQUALITY
We believe that achieving a truly gender-equal world requires
the leadership and voices of women and men. We are in our
second year of implementing an innovative Catalyst initiative
called MARC TM (Men Advocating Real Change). More than a
training program — MARC is a dialogue designed to engage thehearts and minds of men as full partners in achieving genderequality inside and outside P&G.

P&G Bangkok
Our Bangkok plant — in a region with a traditionally maledominated culture — is proud to have achieved 70% women on
the plant leadership team, of which 50% are working mothers!
This success is largely due to the implementation of supportiveparental policies and an inclusive culture.

We are proud to have achieved

70% womenin our Bangkok plant leadership team,of which 50% are working mothers.

Forbes Japan Woman
of 2016 Award
Kotomi Takagi, SK-II Shiga Plant
Manager, is our first Japanese
female plant manager and wasrecognized with the Forbes Japan
Woman of 2016 award “for a
person who brings a revolution”
as the first Japanese woman in the male-centered manufacturing
world. She has directly touched and inspired thousands incountless women’s business seminars, networking events andcommunity development forums.
MULAN Movement
In November 2016, we launched MULAN Movement, P&G
APAC’s flagship program for Diversity & Inclusion, which has
made big strides toward making P&G Asia Pacific a moregender-equal organization and has continued rolling out acrossAsia-Pacific markets.

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The Powerof Partnerships
Achieving a world free from gender bias is notwork that any one individual, NGO, government
or company — no matter how committed — cantackle alone. In all of our Gender Equality focus
areas — leveraging our voice in advertising,removing barriers to education and economic
opportunity, and achieving 50-50 representation
within our Company — we partner with highlyengaged and effective organizations that share
our commitment.
We are inspired and proud to work with ourpartners to combine our resources, talents andskills to have a broader and bigger impact.

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Environmental
Sustainability
Overview
Message from
Shailesh Jejurikar
Vision and
Progress
Brand Stories
ClimateRenewable
EnergyEnergyConservation
Greenhouse
Gas Emissions
Low-Energy
WashingRenewable
Materials
Packaging

Responsible
Forestry
Palm Oil
Water
Waste
The Power of
P&G People
Recognitions
Environmental
Resource andWaste Summary
Global Measurement
and Additional
Operational Data
Worldwide
Health, Safety
and Environment
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87Environmental Sustainability Overview
Environmental Sustainability is not something new at P&G. We have been
incorporating it into our way of doing business for decades. We see it as our
responsibility, as well as a business opportunity, and want to ensure no one
has to choose between the products they use and enjoy today and what they
hope to preserve for tomorrow.

FULL STEAM AHEAD
A unique initiative that has come to fruition after years ofplanning is our highly efficient combined heat and power
biomass facility in Albany, Georgia. This site produces 100% of
the steam and a significant portion of the total energy used tomake Bounty and Charmin at P&G’s Albany manufacturing plant.
This biomass project, along with our windfarm in Texas, will
nearly double our use of renewable energy, getting us two-thirdsof the way to our 2020 goal of 30%. Instead of using natural gas
to make the hot air and steam, we produce our own renewableenergy through the repurposing of scrap wood, leftover tree tops
and limbs, peanut shells and other locally abundant productsthat would otherwise be discarded. The $200 million+ co-locatedfacility is owned and operated by Constellation, and is anotherexample of how we are using innovative partnerships to help
reach our sustainability goals.

Renewable biomass produces 100%of the steam and a significant portionof the total energy used to make
Bounty and Charmin in Albany, GA.

P&G has committed that all
our manufacturing sites will
send ZERO manufacturing
waste to landfill by 2020.

FINDING VALUE IN WASTE

HEAD AND SHOULDERS ABOVE THE RESTP&G has committed that all our manufacturing sites will send
ZERO manufacturing waste to landfill by 2020. This requires
working with local partners on circular approaches, finding abeneficial use for more than 640,000 metric tons of waste(the weight of nearly 350,000 mid-size cars). Currently, morethan 70% of our sites have achieved this status by eliminatingor finding alternative uses for waste. This includes all of ourmanufacturing sites in two of our largest markets, China andIndia, for a total of 23 countries. In addition, our Always andTampax Feminine Care business unit was the first business toreach zero manufacturing waste to landfill across all their
manufacturing sites. And as an added benefit, it saves money— more than $1.9 billion since the program began in 2007.

Head & Shoulders, the world’s #1 shampoo brand, partneredwith TerraCycle and SUEZ to pioneer the world’s first recyclable
shampoo bottle made with beach plastic. The bottles, available
in Carrefour retail stores in France, hit shelves this summer. In
addition, we have a goal to have 99% of all hair care bottles
sold in Europe converted to include 25% post-consumer recycledcontent by the end of 2018, giving consumers yet another way
to make more sustainable choices.

Head & Shoulders partnered withTerraCycle and SUEZ to pioneer
the world’s first recyclable shampoo
bottle made with beach plastic.

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Environmental Sustainability Overview
REVOLUTIONIZING THE PLASTICSRECYCLING INDUSTRYAND THE WINNER IS …
P&G was recognized as an Organizational Leader in the 2017
Climate Leadership Awards. Sponsored by the US Environmental
Protection Agency (EPA), the Center for Climate and Energy
Solutions, and The Climate Registry, the award recognizes P&G’s
active leadership within industry to address climate change
and reduce our greenhouse gas emissions. We are proud to berecognized by the EPA for our efforts to not only reduce ourgreenhouse gas footprint but also that of our consumers.

P&G has been using recycled plastic in our packaging since thelate 1980s, but our use of recycled polypropylene (PP) has been
limited due to a lack of availability of high-quality material.
We needed a solution, so one of our scientists invented atechnology to remove the color, odor and contaminants fromrecycled PP. We are scaling up this innovation with PureCycle
Technologies and look for it to unlock the potential for billionsof pounds of high-quality recycled polypropylene to replace
virgin materials for P&G and many other companies.

“This technology has the capacity to revolutionize
the plastics recycling industry by enabling P&G,
and companies around the world, to tap into

WATER AWARENESS GUIDING ACTION
P&G celebrates its five-year anniversary partnering with theWorld Resources Institute (WRI) on water. Over the course of thepartnership, we have worked with experts from WRI’s Aqueduct
Project to develop a detailed water risk assessment process forour manufacturing sites, supplier locations and key countries.
This approach enables us to highlight opportunity areas andfocus our resources where they can have the largest impact,
such as our Bounty and Charmin plant in Oxnard, California.
This facility implemented five distinct conservation projects
to deliver a 28% reduction in freshwater usage, setting newsite and category records for low levels of water consumption.
As a result, the American Forest & Paper Association (AF&PA)
presented P&G with their 2016 Sustainability Award for Water inrecognition of these advances. We are also making it possible for
consumers to reduce their water footprint with products like Tide
HE Turbo, which helps to eliminate extra rinse time and water
usage in high-efficiency washing machines while providing afantastic clean.

sources of recycled plastics that deliver nearly
identical performance and properties as virginmaterials in a broad range of applications.”— Kathy Fish, P&G Chief Technology Officer

The American Forest & Paper
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Message from Shailesh Jejurikar

At P&G, we help make sustainable lifestyles more irresistible by leveraging ourbrands to be a force for good. We know that improving consumers’ lives alsomeans caring for the world we live in while providing high-performing brands.
That’s why we make irresistibly superior products that deliver the performance
consumers expect while being produced responsibly. Consumers can buy our
products without worry and can focus on what really matters.

We focus where we believe we can make the biggest difference — on climate,water and waste. We think about sustainability holistically, partnering with
consumers and integrating it into our operations, our brands, with employees
and society. We are transparent about the ingredients we use to help build
consumer trust in the quality and safety of our brands. This report highlights
some of our accomplishments from around the world and across our brands
over the last year.
— Shailesh Jejurikar
President, Global Fabric Care andBrand Building Organization, Global Fabric & Home Care,and Executive Sponsor, Global Sustainability

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VISION AND PROGRESS

Long-Term Environmental Vision
We are working toward our long-term vision of:Powering all our plants with
100% renewable energy

Using 100% renewableor recycled materials for
all products and packaging

Having zero consumer
and manufacturing waste
go to landfills

Designing products that delight
consumers while maximizing
the conservation of resources

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VISION AND PROGRESS

2020 Environmental Goals Progress
CLIMATE

Reduce energy use at P&G facilities by 20%
per unit of production by 2020
Achieved — 22% reduction per unitof production

Reduce absolute GHG emissions by 30%
by 2020

We reduced absolute GHG emissions by 16%

Ensure 70% machine loads are low-energy cycles

67% of loads are done in low-energy

Have 100% of the virgin wood fibers used in our tissue/towel andabsorbent hygiene products be third-party certified by 2015

Achieved — 100% third-party certified

Reduce truck transportation kilometers by 20%
per unit of production
Achieved — reduced kilometers
by more than 25%

Ensure plants are powered by 30%
renewable energy

10% of energy is from renewable sources

Implement palm oil commitments
We continue to advance progressagainst our three pillar strategy

Create technologies by 2020 to substitute top petroleum-derived
raw materials with renewable materials as cost and scale permit
Complete for 2 of the 3 material classes we arefocusing on (resins, cleaning agents). Researchongoing for third targeted material class (acrylates).

Numbers are representative of progress since 2010

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VISION AND PROGRESS

2020 Environmental Goals Progress
WATER

Provide 1 billion people with access to water-efficient products

610 million consumers had access towater-efficient products around the world

Reduce water use in manufacturing facilities by 20% per unit ofproduction with conservation focused on water-stressed regions
Achieved — 27% reduction per unitof production

WASTE

100% zero manufacturing waste to landfill by 2020

72% of our manufacturing sites are ZMWTLReduce packaging by 20% per consumer use
We have reduced packaging by approximately
13% per consumer use

Ensure 90% of product packaging is either recyclable or programs
are in place to create the ability to recycle it
We have achieved 86% and have strong, ongoing
effort to further increase recyclability

Have 100% of our paper packaging contain either recycled or
third-party-certified virgin content by 2020
98% of the volume reported by our suppliers waseither recycled or third-party-certified virgin content

Double use of recycled resin in plastic packaging
We used approximately 34,400 metric tons of PCR in ourplastic packaging, getting us 32% of the way to our goal

Conduct pilot studies in both the developed and developing world
to understand how to eliminate landfilled/dumped solid waste
We are making progress implementing a variety of pilot projects
with external partners
Numbers are representative of progress since 2010

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VISION AND PROGRESS

Environmental Progress vs. 2010 Baseline
Within our operations we strive to grow responsibly, constantly improving
our efficiency while reducing our footprint. Global production has increased
since 2010, however we have successfully decoupled that growth from ourenvironmental footprint, achieving both absolute and production-adjusted
reductions in waste, water, energy and GHG emissions.

GHG

16%
25%

16% absolute reduction
25% reduction perunit of production

Energy

Waste

Water

22%

80%

27%

12%

22% reduction perunit of production(exceeding goal early)
12% absolute reduction

77%

80% reduction in solid
waste with 72% of oursites achieving zero
manufacturing waste
to landfill
77% absolute reduction

Renewable Energy

10%
18%

27% reduction per unitof production (exceeding
goal early)
18% absolution reduction

Currently 10%, with largescale wind farm and biomass
projects coming online in theback half of the fiscal yearthat will double our usage
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Brand Stories
We are leveraging our brands to be a force forgood. We know that improving consumers’ lives
also means caring for the world we live in andproviding sustainable solutions. That’s why wemake irresistibly superior products to deliver the
performance consumers expect while being
produced responsibly. Below are a few examples ofwhat our brands are doing to provide consumers
that confidence:

DAWN – MORE POWER IN EVERY DROP
FOR BIG IMPACT
Dawn Ultra has 3x more grease-cleaning power per drop** soyou can get through more dishes with less. By producing themost concentrated hand washing liquids on the market, we save
up to 25,000 tons of plastic every year globally.*** Additionally,
for more than 40 years, Dawn dish soap has been an importantpart of rescuing and releasing more than 75,000 wild animals
affected by oil pollution. It is tough on grease, yet gentle.

One bottle of Dawn cleans

5,760 dishes

CASCADE – SKIP THE PRE-WASH
Cascade Platinum Action Pacs clean 24-hour stuck-on food sowell you can skip the pre-wash and save more than 20 gallons
of water per dishwasher load.*and contains 3x moregrease-cleaning power.

REMOVES BURNT-ON FOODWITHOUT PRE-WASHING
BEFORE

AFTER†

Learn more about Dawn Wildlife** C leaning ingredients per drop vs. the leading competitor’s nonconcentrated brand.
*** Based on Dawn and equivalent P&G brands sold in the key markets
globally.
Number of dishes that a 21.6oz bottle of Dawn Ultra Blue version can†clean.

*Pre-rinsing dishes prior to loading the dishwasher uses up to 20 gallons
of water. (Source: Energy Star www.energystar.gov)

TIDE – PLANT-BASED WITHOUTSACRIFICING THE CLEAN
Tide purclean is made from 65% plant-based ingredients anddelivers the cleaning power of Tide. The product has beencertified as 65% bio-based by the USDA BioPreferred program,and the formula is produced at a manufacturing facility thatuses 100% renewable wind power electricity and has zero
manufacturing waste to landfill. Additionally, the packaging is
100% recyclable. Keeping clothes clean and looking more likenew offers clothes a longer useful life and avoids the carbon,
water and waste impacts of those clothes going to landfill.

Tide purclean is certified 65%
bio-based and its packaging is100%
recyclable.

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BRAND STORIESHead &
Shoulders –Rethinking
Plastic
In partnership with recycling experts TerraCycle
and SUEZ, Head & Shoulders produced the world’s
first recyclable shampoo bottle made with up to
25% recycled beach plastic. The bottle launched in
France this past summer and is a first major step inestablishing a unique supply chain that involves the
support of thousands of volunteers and hundredsof NGOs collecting plastic waste found on beaches.
To further expand our positive packaging impact,by the end of 2018, more than a half a billion
Hair Care bottles in Europe will include up to
25% PCR plastic.

Check out the campaign video“This is a great example of the cross-industry partnerships needed to address such daunting
challenges as marine plastic pollution. By coming together, we have developed practical,
scalable and replicable solutions to reclaim plastic waste from beaches and insert it into
the circular economy through innovative packaging, giving consumers yet another reason
to choose P&G products.”— Lisa Jennings

See how the bottles are madeVice President, Global Head & Shoulders& Sustainability Leader for P&G’s Hair Care Portfolio

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96Brand Stories
DREFT – BIO-BASED FOR BABY
Dreft purtouch HE Liquid Laundry Detergent comes from the #1
pediatrician recommended baby laundry detergent. It’s madefrom 65% plant-based ingredients, yet its gentle formula is also
effective, helping to remove up to 99% of baby food stains so
you do not need to compromise when cleaning messes left
behind by your little ones. The specially formulated plant-basedlaundry detergent is free of dyes, chlorine, phosphates andoptical brighteners, and it gently cleans fabrics making it perfectfor the very first wash and every wash after that. Dreft purtouch
is an essential for keeping baby’s clothes clean and fresh, fromprewashing clothes before baby’s arrival to those first giggles
and steps.

PANTENE – REDUCING SHOWER TIMESAVES WATER

Households using Swiffer Wet
or WetJet can save more thanCalifornia has recently experienced drought conditions, andwater conservation is essential. Showers account for nearly 20%
of all household water usage and last, on average, about 10
minutes. Cutting shower time in half could save up to 12 gallons
of water per shower. By providing a 5-minute timer with the
products in some stores in California, Pantene helped consumers
to reduce their time spent in the shower.

70 gallons

Cutting shower time in half
could save up to

12 gallons
Dreft purtouch removes up to 99%
of baby food stains while being
free of dyes, chlorine, phosphates
and brighteners.

of water per shower.

HERBAL ESSENCES
Behind their new bio:renew line-up, this shampoo is focusedon products that are good for her hair, good for her and goodfor the planet. With this launch, Herbal Essences is our first
Beauty brand to share the Green-e® credential on our productpack, celebrating our commitment to renewable energy at theCompany’s Iowa City manufacturing plant.

Herbal Essences bio:renew lineup is our first beauty brand to
display the Green-e credential
on the packaging.

of water per year.

SWIFFER – SAVE MORE THAN 70 GALLONSOF WATER PER YEAR
For decades, people have used the simple mop and bucket tokeep their floors clean. The Swiffer Wet and WetJet systems
offer an all-around better experience. They’re easy to use anduse less water than the typical mop and bucket. Households
went from using gallons of water to ounces of solution to clean
their floors. Every household that uses Swiffer Wet or WetJet
can save more than 70 gallons of water per year versus mop
and bucket cleaners.

Learn more about Swiffer

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97Brand Stories
PUFFS – SAME SOFTNESS, LESS WASTE
Puffs softness provides comfort to noses, but people can also
use less and reduce waste because of its strength. Each sheetof Puffs Ultra Soft and Puffs Plus Lotion protects skin and is
3X stronger than the leading bargain brand. This means it only
takes one to be done. This is also a sustainable choice since Puffs
partners with leaders in the forestry practices. This summer, theForest Stewardship Council® (FSC®) and Rainforest Alliance logos
were added to packs in the US.

BOUNTY – HELPS YOU CLEAN MESSESWITH LESS
Bounty Select-A-Size offers a choice of a smaller size for smaller
messes so more can be done with less. In addition, each sheet
of Bounty is 2X more absorbent than one sheet of the next
leading Custom-Size-It brand. When people choose Bounty, they
can also be sure that 100% of the wood fiber used to make ourpaper is from responsibly managed forests, as determined bythird party criteria.

All of our pulp is 100% thirdparty certified and comes from
responsibly managed forests.

CHARMIN – PARTNERING WITH LEADERS
IN FORESTRY PRACTICES
Charmin is soft and strong, which keeps families comfortable. It
also helps reduce paper waste because people can use 4X less
Charmin Ultra Soft and Charmin Ultra Strong than the leadingbargain brand. Charmin also helps consumers make sustainablechoices by partnering with suppliers and NGOs on developing
and implementing sustainable forestry practices. All of our pulp
is 100% third-party certified and more than half of our woodfiber supply is Forest Stewardship Council (FSC) Chain of
Custody certified.

FEBREZE – LEAVE NOTHING BEHIND
BUT FRESH AIR
That’s the Febreze way of thinking. Our focus is on recognizing
the incredible value of fresh air and ensuring that every aspectof our business is guided by the imperative to create and protect
it. We’ve reduced the weight of packaging by 25% over the past
five years, and we’re working to ensure that more than 90% of
our packaging can be recycled conventionally by 2020. In 2016,
Febreze partnered with TerraCycle to make all Febreze products
100% recyclable. Since we’ve started working with TerraCycle,
we’ve collected more than 13 tons of waste! New Febreze ONE
moves Febreze along the journey to offer consumers the benefitsof odor removal with fewer ingredients. It offers pure, light
freshness that gently cleans away odors — no propellant, no dyes,
no heavy perfumes.

The new Febreze ONE uses nopropellant, no dyes, and no heavy
perfumes while still removing odors.

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ClimateWe recognize the scientific consensus linking greenhousegas emissions and climate change. As a global citizen, we areconcerned about the negative consequences of climate change
and believe prudent and cost-effective action by governments,
industry and consumers to reduce emissions to the atmosphere
are necessary. We are committed to doing our part to reducegreenhouse gas emissions including adopting science-basedtargets to ensure we are contributing our fair share.

Representatives from P&G and
WWF Climate Team at the Climate
Leadership Award Ceremony.

We are striving to reduce emissions from our own operations via
increased use of renewable energy and have a relentless focus
on energy efficiency. We are also helping consumers reduce theirown emissions through our efforts to convert more machine
washing loads to low-energy cycles.

We are reducing GHG
emissions by increasing ouruse of renewable energy anddriving energy efficiency.

Read our full policy on climate change

In 2017, we received a Climate Leadership Award from the
US EPA, the Center for Climate and Energy Solutions, and The
Climate Registry. This award recognized companies for their
extraordinary leadership in their response to climate change andtheir engagement of peers, partners and supply chains. We also
became a founding member of the Climate Leadership Council,
a multi-stakeholder group seeking to advance consensus-based
climate solutions in the US thatbridge partisan divides, strengthen
the economy, and protect ourshared environment.

Learn more about this effort from the CLC

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Renewable Energy
2017 was a milestone year for P&G’s Renewable
Energy program, with two large-scale projects
coming on-line — the Tyler Bluff wind farm in Texas
and the onsite Albany Biomass combined heat andpower facility in Georgia.
With our partners,
we brought an additional

52 windturbines
and more than 125
megawatts of electricity
to the grid.

TYLER BLUFF WIND FARM
January was the first full month of production from the Tyler
Bluff wind farm. The project is an example of the importance ofpartnerships in bringing additional renewable energy generation
to market. P&G partnered with EDF Renewable Energy andSouthern Company on a project that brought an additional 52
wind turbines and more than 125 megawatts of electricity to
the grid. P&G purchases 80% of the project’s output, which isenough to power 100% of our Fabric & Home Care plants
in the US and Canada. Consumers in these regions are now
able to purchase products such as Tide, Gain, Downy,
Dawn, Cascade, Febreze and Mr. Clean thatare produced with 100% wind electricity.
This wind project demonstrates P&G’s
commitment to reducing GHG
emissions through increased useof renewable energy.

One of the windmills in the
P&G wind farm in Texas.

Consumers in the US andCanada can now purchase
Fabric and Home Care
products produced with

100% windelectricity.

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Renewable Energy
ALBANY BIOMASS FACILITY“By powering our Bounty and Charmin plant

Earlier this year, P&G and Constellation partnered on thecompletion of a 50-megawatt biomass-fueled combined heatand power plant located at one of P&G’s largest US facilities.

with renewable energy, consumers can feel good

This highly efficient approach provides P&G with 100% of thesteam energy needed to manufacture Bounty paper towels andCharmin toilet tissue at this plant.
Constellation owns and operates the facility, which supplies
steam to P&G’s Albany, Georgia paper manufacturing plant andgenerates electricity for the local utility, Georgia Power, and theircustomers. Additionally, steam from the facility will be used to
power an 8.5-megawatt steam-to-electricity generator for the
Marine Corps Logistics Base in Albany, helping the base increase
its energy security and making them the first Net Zero Navy basein the United States.

about putting these products in their carts. We
are using our innovative capabilities and those of
our external partners to drive meaningful changethat is good for the environment and good forbusiness.”— Stefano Zenezini, P&G Vice President

At our Albany plant,
Bounty and Charmin
are made from100%
renewable
steam energy.

Product Supply and Sustainability
Next year will represent the first full year of operation for the
Tyler Bluff wind farm and Albany biomass projects, and we
expect our levels of renewable energy to approach about 20%,
keeping us on track to hit our 2020 goal of 30%.

The plant’s fuel supply will come from locally abundant biomass
that would otherwise have been left to decay, burned or
potentially sent to landfill, including discarded tree tops, limbs,
branches and scrap wood from local forestry operations; crop
residuals, such as pecan shells and peanut hulls; and mill waste,such as sawdust. For more about the process, watch thevideo below.

Watch to learn more about this process

Read the press release about our partnership

Constellation Combined Heat andPower Biomass facility co-locatedwith P&G’s Albany, GA plant.

Photo Credit: Constellation

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Energy Conservation
P&G continues to make solid progress in reducing
our energy footprint. We have reduced energy
usage per unit of production by 22% since 2010,
exceeding our 20% by 2020 goal several years
ahead of schedule.
To drive energy conservation, we are applying many of thesame loss analysis and focused improvement tools used to drive
innovation within our manufacturing processes as a way to
reduce our heating needs.
One of the large energy and water users within many of ourglobal sites is the need for robust cleaning and sanitization.
Working across the seamless technical community of R&D,
Engineering, Quality and Manufacturing, our teams have foundinnovative new approaches to cleaning with moist heat as
opposed to traditional hot water and chemicals. This moist
heat approach has already been actively rolled out to several
pilot sites.
Innovative approaches like this allow our sites to deliver
best-in-class quality systems that assure we deliver our
promise of “Quality our consumers, customers, regulatorsand employees trust — everywhere, every time” while reducing
our environmental footprint and that of our consumers.

Our R&D, Engineering and
Quality teams are partneringwith Manufacturing to find new,innovative approaches to cleaningthat not only deliver outstanding
cleaning results but also driveenergy conservation.

Our sites are also looking for ways they can drive additional
efficiencies onsite. One example is our Groß-Gerau site inGermany that partnered with E-ON to build a combined heatand power (CHP) facility. This highly efficient approach allows thesite to take advantage of waste heat during power production
to operate other parts of our process. The CHP unit will supply
approximately 50% of the plant’s needed electrical power and
50% of the steam generated on-site. Sustainability is smart
business, delivering savings while eliminating 3,000 tons of
CO2 emissions annually, equivalent to 10% of the plant’s total
carbon emissions.

The Groß-Gerau plant is eliminating

3,000 tonsof CO2 emissions annually.

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ENVIRONMENTAL SUSTAINABILIT Y

Greenhouse Gas Emissions
SCOPE 1 & 2 GHG EMISSIONSIn 2015, we collaborated with World Wildlife Fund (WWF)to develop 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
science and will help ensure that we are supporting global
efforts to prevent temperature increases from exceeding
two degrees Celsius.

Reduction in Energy Consumption
Percent reduction versus FY09/10 —production adjusted

Total Greenhouse Gas Emissions (Scope 1 & Scope 2)
Percent reduction versus FY09/10, absolute

FY16/17-21.6%

FY16/17

FY15/16-22.5%

FY15/16

FY14/15-17.9%-16.4%-11.3%-4.1%

FY14/15

Learn more about science-based targets

Our progress on both renewable energy and energy efficiency
are the underlying enablers that will assist us in obtaining ourgoal to reduce absolute greenhouse gas emissions. Thanks toprogress in these two areas, we are currently delivering a 16%
absolute GHG reduction vs. our 2010 baseline.
Over the last year, we have taken several additional steps tostrengthen the quality of our GHG accounting program. We
built a partnership with Schneider Electric to automate ourenergy invoice and data collection systems and retained Lloyd’s
Register Quality Assurance (LRQA) to provide independent
verification of our GHG program to ensure it meets the intent
of the World Resources Institute/World Business Council for
Sustainable Development(WRI/WBCSD) GHG protocol.

Lloyd's Register Quality Assurance Statement

Total Greenhouse Gas Emissions (Scope 1 & Scope 2)
Millions of metric tons

4.6
4.8
5.1

Energy Consumption by GBU
Millions of gigajoules

FY16/1759

FY16/17

FY15/1659

FY15/16

63

FY14/15

Baby, Feminine & Family Care

BeautyBaby, Feminine & Family Care

BeautyFabric & Home Care

Grooming

Fabric & Home Care

Grooming

Health Care

Other

Health CareOther

FY14/15

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Greenhouse Gas Emissions
SCOPE 3 GHG EMISSIONS

Scope 3 categories

Last year, we reported estimates of our Scope 3 emissions.
We derived this data from lifecycle assessments that we havecompleted for all of our major categories as well as other sources
such as employee travel miles. This exercise reinforced that the“use phase” or our products, especially those that use hot water
during consumer use, is our single greatest opportunity for
Scope 3 emissions.

Purchased goods andservices — upstream
transport & distribution

This year we were able to expand our Scope 3 inventory byincluding new estimates for Capital Goods, Fuel & Energy
Activities, Waste Generated in Operations, and employee
commuting. This updated data is included in the table here.
As noted in the table, some data was derived in FY15/16 and wasbased on LCA data. We do not expect large changes in thesenumbers from year to year, and it is clear from the data thatthe product use phase is the overwhelming majority of Scope 3
emissions. As a result, we plan to update LCA derived estimateson an every-other-year basis.

Tons CO2e

8,560,000*

Capital goods

246,508†

Fuel & energy activities

495,398†

Waste generated
in operations

9,035†‡

Business travel

100,000*

Employee commuting

117,412†

Upstream leased assets

Not material

Downstream transport& distribution

3,195,000*

Processing of sold productNot material

Use of sold product186,500,000*

End of life treatmentof sold product10,950,000*

Downstream leased assets

Not material

Franchises

Not material

Investments

Not material

FY15/16 estimate
FY16/17 estimate‡
Scope limited to material sent to landfill*†

Learn what you can do to help

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Low-Energy Washing
The impact of energy used during the machine
washing of laundry is one of the biggest impacts
on our corporate GHG emissions footprint and, assuch, we have been focused on helping consumers
take positive steps towards reducing their energy
consumption. Our goal is to have 70% of all
global washing machine loads being conducted in
low-energy cycles by 2020. We define an energy
consumption of 0.4 kwh or below as low-energy
cycle. This includes cycles in cold / low temperaturewater, quick cycles and most HE machine cycles.
Our goal is to have 70% of all
global washing machine loads
conducted in low-energy cycles
by 2020.

This fiscal, we estimate a 6-point increase in the number of lowenergy cycles — from 61% to 67%, which keeps us on-track toachieve our goal of 70% by 2020. In the past year, we continued
to innovate all our detergent formulas for best performance in
low-energy cycles, we increased sales of Tide HE Turbo, which is
specifically designed to perform well in HE machines and shorter
washing conditions, and we continued to educate consumers on
more sustainable washing.

Tide HE Turbo is specificallydesigned to perform well in HE
machines and shorter washingconditions.

Consumer Engagement
Ahead of Earth Day, Tide purclean, World Wildlife Fundand program spokesperson Kristen Bell launched the Sustainable
Laundry Pledge, an effort to convert as many households as
possible to energy-saving laundry habits. In celebration of thethousands of #CleanPledge responses, Tide purclean made adonation of $250,000 to support WWF’s global conservation
efforts.
Outside of North America, we also continued to drive consumer
education on energy-efficient washing with Ariel. In the UK,
consumers can find extensive information and tips on our
website. We also received a Good Housekeeping Institute (GHI)
testing seal for Ariel Excel Gel for washing at 30°C, and wereinforced washing at 30°C at the point of sale. A great example
on how this comes to life is the Tesco display claim for Ariel Excel
Gel – “BRRRRRRRRilliant clean at 30. Save 66 percent on energy.”

Read more Ariel washing tips

We also continue to partner with top washing machine
manufacturers globally to help educate consumers about thebenefits of quick and cold water washing cycles and will againreach about 20 million households next fiscal year.

Ariel continued to drive
consumer education onenergy-efficient washing.

Kristen Bell helped us launch the
Sustainability Laundry Pledge to help
households adopt energy-saving habits.

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Renewable Materials
We are continuing our efforts to develop the ability
to replace our top fossil-derived materials withrenewable materials. We have identified cleaning
agents, resins and acrylates as our top fossilderived materials. We have previously reported
on establishing our ability to replace resins andcleaning agents with renewably derived materials,
and this year have focused our update on ongoing
research efforts related to acrylates.
Acrylates are a key constituent of the superabsorbent materials
used in our absorbent hygiene products. We have developed
two technologies to produce renewable superabsorbent
polymers from lactic acid which have identical properties
as fossil-derived superabsorbent polymers. These patented
technologies have been demonstrated at lab scale and weredeveloped with partners such as the Friedrich-Alexander
University Erlangen-Nürnberg (FAU) in Germany. We are currently
seeking to license these technologies to external parties withhopes of enabling production and commercialization at scale.

With partners such as FAU in Germany, wedeveloped two technologies to produce renewablesuperabsorbent polymers from lactic acid.

BIOPLASTIC FEEDSTOCK ALLIANCE
We remain committed to advancing progress against ourlong-term vision of using either recycled or renewablematerials in our products and packaging. As we drive forwardwith research on renewable materials, we do that with therecognition that renewable does not always mean “better.” As
we evaluate materials, we must ensure there are no trade-offs inperformance or value for our consumers and ensure responsible
sourcing of renewable feedstocks.
The Bioplastics Feedstock
Alliance (BFA) is a multistakeholder alliancefounded by WWF focused on
encouraging the responsible
development of plant-based
plastics, and we were a founding member. Read more
about BFA’s efforts to advance sustainable sourcing.

Bioplastic Feedstock Alliance

DREFT PURTOUCH
The launch of the new Dreft purtouch in North America
follows last year’s launch of Tide purclean with 65% plantbased ingredients. This new plant-based version of Dreft baby
detergent is made solely with wind-powered electricity andmanufactured at a plant in Ohio that sends zero manufacturing
waste to landfill. The hypoallergenic detergent’s formula ismade with naturally derived ingredients and is 65% plant-based.
Dreft purtouch is free from dyes, chlorine, optical brighteners,
phosphates and ethanolamine.

Dreft baby’s
hypoallergenic detergent is

65%
plant-based.

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Packaging
Our products need a package. Packaging protects
our products and provides important safety anduse information. P&G puts just as much thought
and research into our packaging as we do our
products. We are always making improvements,
so our containers are as efficient and sustainable
as possible while still delivering against key
performance criteria.
One example of this is our Head & Shoulders team.
They have partnered with TerraCycle and Suez tocreate the first recyclable shampoo bottle madefrom beach plastic.

DRIVING INNOVATION
One area where we are using our innovative capabilities isby leading the industry-wide “Holy Grail”* project aimed atdeveloping an additional dimension for sorting of plastics atmaterial recovery facilities and/or recycling plants. This will allow
more plastics to be recycled and improve purity of recycledmaterial — allowing more widespread use.

We believe in the potentialof creating a “barcode ofrecycling” to reduce theamount of sorting required.

Our specific 2020 packaging goals are:Goal 1
Reducing packaging by 20% per consumer use

Check out the Head & Shoulders story
Goal 2
Doubling our use of recycled resin in plastic packaging
Goal 3
Ensuring 90% of our packaging is recyclable or there areprograms in place to develop the ability to recycle it*A participant-led pioneer project from Ellen MacArthur Foundation’s
New Plastics Economy Initiative

REDUCING PACK AGING
BY 20% PER CONSUMER USE
In FY16/17, we reduced packaging by 13% vs. our 2010 baseline.
We are proud of this progress but we continue to face marketdriven headwinds that are making progress against this goal
challenging. This includes customer requests for smaller casecounts in some key markets, increasing the amount of corrugate
usage per consumer use and shifting some products to smaller
sizes to better meet consumer needs.
We remain committed to driving progress, and our Pampers
brand, which has been actively reducing its packaging foryears, continued significant progress this year by replacing theircorrugate with recyclable plastic bags. Not only do consumers
prefer this type of packaging, as it is easier to carry, but there aresome great sustainability savings including an 80% packaging
material reduction and the recyclability of the plastic used for thebags. The move from box to bag was successful in Latin America
and is now expanding across all tiers in Europe and Brazil.

Our new Pampers packaging
replaces corrugate withrecyclable plastic, resulting
in an 80% reduction of
packaging material.

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Packaging
DOUBLING OUR USE OF RECYCLED RESIN IN
PLASTIC PACK AGING
This year, we used 34,400 metric tons of post-consumer resin(PCR) which puts us 32% of the way to our goal of doubling
our use of PCR. We are advancing our work to revolutionize
the plastics recycling industry. Examples of progress include
introducing 50% PCR into all transparent Lenor sizes in Europe.
With this change, our European Fabric Enhancers will use morethan 2,700 tons of recycled plastics in the next year.
In China, we began using PCR in some of the Oral Carepackaging. It delivered not only a sustainability benefit but
a cost savings too!

Our European Fabric Enhancers will use more than

2,700 tons ofrecycled plastic
in the next year by introducing PCR.

Read more about our plastics advancements

ENSURING 90% OF OUR PACK AGING ISRECYCLABLE OR THERE ARE PROGRAMS IN
PLACE TO DEVELOP THE ABILITY TO RECYCLE IT
For FY16/17, 86% of our packages
are considered recyclable, and wecontinue to optimize designs andadvance the recycling infrastructure.
Our Family Care business is our firstcategory to have 100% recyclable
packaging.* This includes consumer
messaging on pack to educate
consumers on how to recycle the packaging.
In Home Care, our Febreze business works with TerraCycle,
and their partnership is making a big difference. This fiscal, wereached our 500,000 piece of waste collection milestone andtallied a collection of more than 13 tons of waste. Canada
and the UK account for nearly 70% of the collection
with the US, France and the Netherlands picking
up speed. Once the UK is able to add Aerosols
to the recycling program, it will make Air Care
100% recyclable through the TerraCycle program.
Fabric enhancers in the UK (and more selected
countries) introduced a shrink sleeve (withconsumer messaging to remove the sleeveprior to recycling) on their Lenor bottles.
This moved the brand from clear / colored
PET to transparent PET (containing 50%
PCR) thus improving the recyclability.
*Calculated percentage was 98.6% which
has been rounded to 100%Through our partnership,
we collected more than

13 tonsof waste.

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Responsible Forestry
Forests are critical to supporting virtually all life onearth. Increases in world population and pressure
from economic demands are increasing threats tothe world’s forests. These threats are especiallyhigh in tropical regions where deforestation andloss of high-conservation-value areas are alreadyoccurring. The good news is that forests are one ofour most-renewable resources and by collaboratingwith numerous private and public sector
organizations, we can make progress to achieving
our goals of protecting habitats, which benefits
people, business, wildlife and local economies.

Forests are one of our mostrenewable resources.

WOOD PULP SUPPLY CHAINSThird-party Certification
100% of the virgin wood pulp we purchase for use in our tissue/
towel and absorbent hygiene products is third-party certified by
one of our accepted forest certification programs.
We give preference to Forest Stewardship Council® (FSC®)
certified pulp when it is available and meets productperformance and business requirements. FSC certification
protects water, wildlife and local people by ensuring forests are
responsibly managed. FSC standards are recognized worldwide
as the most stringent forest management certification scheme
and are supported by leading international environmental NGOs.

We give preference to Forest
Stewardship Council® (FSC®) certified pulp
when it is available and meets productperformance and business requirements.

Based on the market availability of certified pulp, P&G’s supply
chain will also source from other third-party forestry certification
systems. 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)

P&G employees helping with an Arbor Day
tree planting event in Detroit.

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Responsible Forestry
PROCUREMENT POLICYKey Wood Pulp Supplier Procurement Policy Requirements

As part of our procurement practices, we require that all woodused for pulp supplied to us has undergone a risk assessmentin accordance with the FSC Controlled Wood standard. The
FSC CW risk assessments ensure that unwanted wood sources
are avoided and that wood harvesting is done legally per our
procurement policy. Our preference for FSC makes use of both
FSC Chain of Custody (FSC COC) and Controlled Wood
(FSC CW) inputs.

1
Ensure the safety of forestry and manufacturing operations for
employees and the environment.

5
Ensure that there is no sourcing from genetically modified trees
in pulp delivered to us.

2
Ensure that unwanted wood sources are avoided and that woodis legally harvested and that all legal requirements are met. P&G
will not knowingly use illegally sourced materials in our products.

6
Ensure that their own and their supplier practices reflect oursocial values and support of universal human rights throughwork with local governments and communities to improve theeducational, cultural, economic and social well-being of thosecommunities.

We require that all wood used
for pulp supplied to us has
undergone a risk assessment.

We require that the forest certification systems utilized by
our wood pulp suppliers adhere to the following criteria for
responsible forest management.

3
Ensure that their supply chain incorporates the principles of
responsible forest management and continuous improvement intheir own operations and that they are verified by independent
forest and chain-of-custody certification.
4
Ensure that trees are not harvested from high-conservationvalue forests unless they are credibly certified or verified to notinclude controversial sources. P&G supports multi-stakeholder
efforts to develop information sources and tools that will help
suppliers identify these areas on their own forestlands and intheir procurement of wood raw materials from third parties(e.g., www.hcvnetwork.org).

7
Ensure that their supply chain used to produce our pulp does
not contain fiber from conflict timber (timber that was tradedin a way that drives violent armed conflict or threatens nationalor regional stability).

Learn more about this policy

As part of implementing our responsible sourcing commitments,
P&G is a participant in WWF’s Global Forest & Trade Network(GFTN).

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Responsible Forestry
PULP FOR OUR TISSUE/ TOWEL AND ABSORBENTHYGIENE PRODUCTS
Pulp Sources
In FY16/17, we purchased 1.5 million metric tons of air-dried
pulp for use in our tissue/towel, diaper and absorbent hygiene
products. The pulp was sourced from the following countries
and used the following third-party certified fiber:Country of Origin% of Total

Argentina

1%

Brazil35%

Canada31%

United States

33%

Total

100%

Certification System% of Total

FSC COC33%

FSC CW

2%

PEFC

17%

SFI

47%

CSA-SFM

1%

Total

100%

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

Puffs FSC and Rainforest Alliance Certification
In the last part of our fiscal year, we introduced FSC and
Rainforest Alliance (RA) certification to our Puffs family of facial
tissue products.
FSC certification of our Puffs products is a continuation of ourcommitment to supporting responsible forest management andthe benefits associated with certification throughout our virginwood pulp supply chain.
P&G is proud of both Puffs and Charmin for obtaining FSC and
Rainforest Alliance certification. This was made possible becauseof our collaboration with our suppliers to source FSC-certified
pulp for use in our all our tissue and paper towel products.

Our Puffs brand is proud to joinCharmin in being FSC certified
by Rainforest Alliance.

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111

Responsible Forestry
Beyond sourcing and product certification, we
continue to drive progress in responsible forest
management as part of various initiatives. The
following are some highlights from this year.

Through the CWFCC, we intend to accomplish
the following objectives:
Objective 1
Increase awareness and understanding of the importance ofsustainable forestry and active management among 30,000
woodland owners who collectively own 2.4 million acres offorestland in the Coastal Carolinas Plain region.

WORKING TOGETHER TO MAKE A DIFFERENCE
Small Landowner Efforts
We have continued to support our existing smallholder efforts
such as the Four States Timberland Owners Association.
Additionally, we have expanded on those efforts to directly
support adoption of FSC forest certification among nonindustrial woodland owners.
One such effort is our collaboration with FSC United States
to enable Group Certification to reduce costs and barriers to
adoption of FSC forest certification. One tangible outcome thatwill have a lasting impact is a new group certification handbook
published by FSC US this March with support provided by P&G.

This new group certification
handbook is the result of
our collaboration with FSC
United States to enable Group
Certification.

The handbook is designed to equip group managers with ways
to develop outreach materials that can help articulate the valueof FSC group certification for non-industrial woodland owners.

Access the handbook

Objective 2Work with at least 450 landowners across 36,500 acres in the
project counties to connect them with technical assistance andresources to get them started in forest management.
Objective 3
Engage at least 160 woodland owners within the project area toenhance, restore or expand bottomland hardwood forests andquality habitat for at-risk species on at least 13,000 acres.

CAROLINAS WORKING FOREST CONSERVATIONCOLLABORATION (CWFCC)In May, we helped launch the Carolinas Working Forest
Conservation Collaborative along with the American Forest
Foundation, International Paper and 3M.
We have joined this collaboration to engage directly with family
woodland owners in the US Coastal Carolinas Plain to support
sustainable forestry, conservation of bottomland hardwood
forests, the enhancement of habitat for at-risk species, and forest
certification.

Objective 4
Certify at least 120 landowners in a recognized forest
certification standard.

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Responsible Forestry
PAPER PACK AGING
We continually strive to optimize the design of our packaging,
aiming to use the least amount of material, ensuring adequate
protection, delivery and safe use of our products. As part ofour ongoing efforts, we continue to identify source reduction
opportunities to decrease overall material usage and touse recycled paper when it offers the best option to meet
performance and business requirements.
Our paper-based packaging is derived from wood fiber. As such,
we have a responsibility through our procurement practices
to ensure that the wood fiber in our packaging has been
responsibly sourced. We have made a specific commitmentthat by 2020, 100% of our paper packaging will contain either
recycled or third-party-certified virgin content. Over the last year,
we have expanded our efforts to collect data from an increased
number of suppliers to assess progress against this goal. This
year, we have received data from more than 125 suppliers*that represent more than 95% of our global paper packaging
spend. This data, which was self-reported by our suppliers, issummarized in the table to the right.
This year, 98% of the volume reported by our suppliers waseither recycled or third-party-certified virgin content. Thatmeans 2% of the reported volume was virgin material thatwas not third-party-certified. Over the course of the next year,
we will work with our suppliers to close that gap.
*The number of suppliers is less than in previous years due to our supply
base consolidation strategy.

Total volume in metric tons

~810,000% Recycled84%% Virgin

16%% of virgin fiber that was
third-party-certified

88%% of total recycled or
third-party-certified virgin

98%

We have made a commitment thatby 2020, 100% of our paper packaging
will contain either recycled or thirdparty-certified virgin content.

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113Palm Oil
Palm Oil (PO) is an important, versatile and highly efficient
vegetable oil that is used as a raw material by both food andnon-food industries. In some regions of the world, the rapid
expansion of PO production has threatened environmentallysensitive areas of tropical forests and peat lands and has resulted
in incidents where the rights of independent smallholder farmers
and indigenous peoples have been infringed.
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 therights of workers and indigenous peoples. We are members of
the Roundtable on Sustainable Palm Oil (RSPO) and support theirstandards to drive responsible palm practices across the industry.
In addition, we have established a robust approach to ensuring
the responsible sourcing of PO, PKO and derivatives via a threepillar program:

We are members of RSPO
and support their standards
to drive responsible palm
practices.
PALM OIL PROCUREMENT POLICYP&G is committed to ensuring our suppliers meet RSPO
Principles and Criteria (P&C) and have the necessary policies
and procedures in place to ensure:

PROGRESSP&G has successfully met all our initial palm oil goals.
These include:• Establishing traceability of palm-derived materials to palm
oil mills (for palm oil) and kernel crushing plants (for palm
kernel oil).

• No development of high-conservation-value areas andhigh-carbon-stock forests• Requiring all suppliers to submit relevant policies, procedures
and action plans to demonstrate how they will meet oursourcing requirements. Review of initial plans resulted in
P&G moving supply away from suppliers who did not haveadequate plans in place.

• No new development of peat lands regardless of depth• Maintaining 100% RSPO certification for palm oil purchases.

• No burning to clear land for new development or replanting• Improving the lives of the smallholders in our PKO
supply — Initial pilot projects with smallholders resulted insignificant increases in palm fruit yields for smallholders.

• Compliance with P&G’s existing Sustainability Guidelines forExternal Business Partners

Procurement Pillars• Respect for human and labor rights

We have successfully maintained

Pillar I
Supplier Management• Respect for land tenure rights, including rights of indigenous
and local communities to give or withhold their free, prior andinformed consent for development of land they own legally,
communally or by custom

100% RSPO
certification

If we find a supplier is violating any of the above requirements,
and if that supplier does not acknowledge and resolve theconcern, P&G will suspend or eliminate palm oil purchases fromthat supplier. A supplier would need to have a documented
action plan and demonstrate meaningful progress to beconsidered for reinstating supply agreements.

for palm oil purchases.

Pillar II
Smallholder Program
Pillar III
Industry Influence

We also continue to drive progress vs. all three pillarsof our program.

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114Palm Oil
Metric Tons

RSPO Certified (%)

RSPO MB Certified(%)

Palm Oil/Palm Oil Fractions

55,834100%

94%

Palm Oil Derivatives

64,263100%

95%

Palm Kernel Oil

317,7965%

5%72,1640%0%Palm Kernel Oil Derivatives
PILLAR I: SUPPLIER MANAGEMENT

The chart summarizes current use and RSPO certification statusof palm-derived materials we purchased in FY16/17. Our top
three suppliers of palm-derived materials by volume were FGV,
Wilmar, and Kuala Lumpur Kepong Berhad (KLK).
Palm Oil
We are proud of our progress on Palm Oil and our intent is to
move to 100% RSPO Segregated (SG) Palm Oil by the end of
2018. Our ability to achieve that may be influenced by broader
market dynamics and supply availability, but we have alreadyengaged with our suppliers on plans to achieve this goal. Thisis consistent with our belief that it is the demand for palm oilthat is driving forest conversion and peat land pressures andthe greatest impacts can be achieved by industry placing adisproportionate focus on driving sustainable palm oil production
practices across all categories and regions that use palm oil.
Palm Kernel Oil
The complexity of the palm kernel oil supply chain continues topose challenges.

Explore the challenges

Thanks to a unique partnership with the Malaysia Institute for
Supply Chain Innovation and FGV, our single largest PKO supplier,
we have gained significant visibility to the sourcing plantations
and regions of FGV’s PKO supply chain. In fact, we now knowthat about 96% of our palm kernel oil was sourced from aknown subset of FGV’s palm oil mills.
While our partnership with FGV has resulted in significant
visibility into our PKO supply chain, as reported last year FGV
made the decision to voluntarily withdraw the RSPO certification
status of their mills in Malaysia. This has negatively impacted
our RSPO certification levels for PKO as FGV supplied a large
percentage of our PKO in FY16/17. We are working closely with
FGV as they advance their recertification plans and our levels ofcertified PKO will increase significantly as FGV advances progressover the next two years.

We have gained
significant visibility into
our PKO supply chain.

Collaboration Opportunities
Driving progress against our supply chain goals has resulted
in a much deeper understanding of our supply chain. While
we remain deeply committed to driving progress with ourindividual suppliers, we believe there may be opportunity for
multi-stakeholder efforts to drive progress on some cross-cutting
issues. These include:• Independent Third Party Supply Chains
Independent, third party suppliers can feed many parts of the
supply chain across multiple regions. Developing effective andefficient approaches for verifying third party supplier practices
continues to be a challenge for many of our suppliers and is
an area that may require industry-wide efforts and solutions.
We believe jurisdictional approaches may offer one effective
solution, but they will likely require multi-stakeholder efforts
to enable implementation at scale.
• Social Issues
Human and labor rights have always been a core part of our
supplier expectations. We will continue to rigorously enforce
supplier compliance with our expectations, but we also believethat multi-stakeholder regional initiatives, actively supported
by governments, may offer an opportunity to help address
regional issues that cut across multiple commodities.
As we advance our efforts in FY17/18, we will be exploringcollaborative opportunities to help address these challenges.

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Palm OilPILLAR II: SMALLHOLDER PROGRAM
The objective of this program is to improve the livelihood ofsmallholders while verifying production practices meet oursourcing criteria. The program focuses on the fresh fruit bunch(FFB) supply chain from independent smallholders and small
growers that supply FFB to FGV’s mills in Malaysia. This is a key
part of the supply chain which contributes ~80,000 tons of the
PKO we purchase from FGV. Supply chain mapping with the
Malaysia Institute of Supply Chain Innovation identified that
there are approximately 30,000–50,000 smallholders in thisnetwork who contribute ~50% of the FFB while the other
50% is from small growers.

MISI identified that there are approximately

30,000 – 50,000
smallholders
in this network, making up about 50%of the fresh fruit bunch supply.

The objective of this programis to improve the livelihood ofsmallholders while verifying
production practices meet oursourcing criteria.

We are partnering with two non-profit organizations, Wild Asia
and Proforest, to conduct pilots to trace the source of these FFB
and conduct a baseline assessment against our sourcing criteria
for roughly 2,000 farmers who supply 7 collection centers. In
addition, we have completed initial pilots with the International
Plant Nutrition Institute (IPNI) to improve the smallholder yields
through an Improved Crop Recovery Program (ICR). Initial resultsfrom ICR were encouraging and showed an increased FFB
output of 30-50% in pilot locations. Finally, we are also utilizing
geospatial technology to develop a satellite imaging system toassess potential risks across the smallholder supply chain andprioritize expansion of pilot efforts. We have built the prototype
and are in the process of “ground truthing” to validate the modelin our smallholder pilot areas.

Our partnership allows
us to conduct pilots totrace the source of fresh
fruit bunch supply chainsand conduct assessments
against our sourcing
criteria for roughly 2,000
farmers.

Going forward, we plan to expand the program in four key areas:
Expansion Plan
1
Adding more collection centers and smallholders to trace the FFB
supply chain and validate against the P&G sourcing requirements.
2
Focus on livelihood improvement through the creation of model
farms with the application of good agricultural practice, crop
recovery program and nutrient (fertilizer) management programwith full-time agronomists on the ground to build the capabilityof the smallholders.
3
Continue building and expanding the smallholder risk assessment
model to help track and trace FFB from farms to mills.
4
Explore solutions for the challenges of water management inpeat areas and integrated pest and disease management, whichwere the two critical opportunities that will require regional andnational coordination.

Watch to learn about our smallholder efforts

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116Palm OilPILLAR III: INDUSTRY INFLUENCE
We are collaborating to help drive harmonized industry
approaches that can help advance shared objectives.
Below are descriptions of some of these collaborations:

The High Carbon Stock Approach
Steering Group (HCSA SG)
As a member of the HCSA SG, P&G continues to support
development and implementation of the high-carbonstock assessment approach to produce a single harmonizedmethodology for identifying and protecting HCS areas. A
major milestone was reached this past year when the HCSA
and HCS+ approaches were converged, helping drive furtheralignment across the industry. While there are areas that needfurther development such as the application to high-forest-coverlandscape and inclusion of smallholders, a key milestone for
one aligned industry approach was reached. Integration of thisapproach into the pending RSPO P&C revision process represents
another opportunity to help drive a single methodology andprocess for HCS forest conservation and land use planning.

As a member, we continue
to support development
and implementation of
the high-carbon-stock
assessment approach.

RSPO P&C and Smallholder Inclusion
The RSPO Principal & Criteria is fundamental to our commitments,
and we have been actively contributing to RSPO standard
development and smallholder inclusion. We are a member of the
RSPO 2018 P&C Review Taskforce and share RSPO’s objectiveof improving the relevance and effectiveness of the mostrecognized sustainability standard for palm oil. As a member of
the Smallholder Working Group, we contributed to developing
the Smallholder Strategy (approved in June 2017) to drive
productivity and livelihood improvement, and the inclusion ofthis key supply chain sector into the RSPO system. This revised
strategy will be incorporated into the proposed 2018 P&C
revisions. For the second year, we supported the RSPO meeting(13 and 14) and supported smallholders from Latin America,
Papua New Guinea and SE Asia to join this multi-stakeholders
learning and sharing event.

The Sustainable Landscapes Working Group (SLWG)
P&G participates in SLWG (formerly the Traceability Working
Group) to advance an industry traceability platform at thelandscape level and to promote implementation of supply shedrisk assessment and verification as a strategy to advance supply
chain risk assessment, especially for independent palm oil millsthat may supply multiple palm oil producers. The key next
phase is for the industry members to develop more detailed
implementation plans that include governance and quality
provisions that will allow execution to move forward.
Consumer Goods Forum (CGF)
We are also part of the CGF Palm Oil Working Group to mobilize
resources in driving industry progress on policy and goals, as well
as alignment on standards and methodologies.

To learn more about our efforts on palm oil, we would
encourage you to read a recent case study we released outlining
the history and status of our efforts.

Read our palm oil efforts case study

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Water
FOCUSING WHERE IT MATTERS MOSTMANUFACTURING IN WATER-STRESSED REGIONS

Water is an essential part of the manufacturing process for manyof our products. Over the past two decades, our engineeringand manufacturing teams have partnered to develop innovative
ways to reduce and recycle water in our plants. Currently, we
have reduced our freshwater usage by more than 27% per unitof production vs. our 2010 baseline, continuing to exceed our2020 goal of 20%.

P&G celebrates its 5th anniversary partnering with the World
Resource Institute (WRI) on water. Over the course of the last
five years, we have worked with experts at WRI's Aqueduct
Project to develop water risk assessment processes that allow
us to determine risk and opportunity at our manufacturing
sites, supplier locations and key countries where our products
are being used every day. This approach enables us to focus ourresources where they can have the largest impact.

We currently have a

27% reduction
in fresh water usage vs. our2010 baseline.

Our approach is working, as The American Forest & Paper
Association (AF&PA) recently presented P&G with their
Sustainability Award for Water for advances at our Oxnard, CA,
plant where we significantly reduced
our freshwater consumption andset business records for low water
consumption levels.

Learn more about the Aqueduct Project

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

FY16/17
FY15/16
FY14/15

Water Consumption by GBU
Water Consumption by GBU
Millions of cubic meters
Millions of cubic meters

-27%
-26%

Wastewater COD* Disposed by GBU
Thousands of metric tons
62
62

FY16/17
FY16/1764
64

FY15/16
FY15/16

68
68

-22%

Baby, Feminine & Family Care
Baby, Feminine & Family Care
Fabric & Home Care
Fabric & Home Care
Health Care
Health Care

BeautyBeautyGrooming
Grooming
Other
Other

19

FY16/1718

FY14/15
FY14/15

FY15/16
FY14/15

21*Chemical Oxygen Demand*Chemical Oxygen Demand

Baby, Feminine & Family Care

BeautyFabric & Home Care

Grooming

Health Care

Other

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Water
In 2015, we completed Tier 1 of our water risk assessment
process in an effort to understand where in the world we have
manufacturing facilities operating in water-stressed conditions.
From this process we found that less than 30% of our sites
are located in areas classified as experiencing high water stress.
All these sites were then asked to complete the second (Tier 2)part of our assessment process.

P&G WATER RISK ASSESSMENT FRAMEWORK

Tier 2 of our water risk assessment process includes having eachsite complete a detailed questionnaire that builds off World
Wildlife Fund (WWF)’s Water Risk Filter.

• P&G Site Water Use per Year — P&G

Explore the Water Risk Filter toolThis questionnaire provided a strong basis for developing arigorous scoring system that would address the unique featuresof our manufacturing processes. WWF and our partners at WRI
were invaluable in its creation, and consultants at Environmental
Resources Management (ERM) helped our vision come to life. This
included assessing water risk exposure and water management
practices occurring both inside and outside our walls. Scoring of
the responses and identification of the sites moving to Tier 3 will
occur by the end of 2017. This is a very big milestone for us. With
the information we’ve gathered from the Tier 2 process, we will
work with our partners to determine the most effective way toimplement with Tier 3, ensuring we address risks that fall both
inside and outside our four walls.

Circular Water Management Report1

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
• Access to Water — WHO/UNICEF

2
3

ALL SITES SCREENED~70% of sites inlower-risk regions

P&G Tailored Site Questionnaire (Completed)
Prioritize sites based on outcome of responses• The P&G questionnaire was built upon the facility
questionnaire in WWF’s Water Risk Filter

PRIORIT Y SITES FROM 1~30% of sites have entered
the Tier 2 process

In-Depth Site Water Analysis (Current Phase)
Prioritize risks for mitigation and develop a site-specificsustainable water management plan

PRIORIT Y SITES FROM 2

Sites moving to tier 3 will be
determined by the end of the year

A great example of how this is already coming to life is on ourefforts in Taicang, China where we produce Head and Shoulders,Pantene, Rejoice and Vidal Sassoon. Designing in sustainability
from day one, Taicang was built around the concept of a
Chinese water garden and is one of our most sustainable sites
globally. They have achieved LEED silver certification, utilize
100% renewable electricity from wind, are qualified as zero
manufacturing waste to landfill, and have demonstrated
breakthrough water/wastewater recycling.

Their recycling efforts were recently recognized in a case study
by the World Business Council for Sustainable Development(WBCSD) showcasing best practices in circular water
management.

P&G Manufacturing Facility Case Study

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Water
HELPING CONSUMERS SAVE WATER
IN THEIR HOMES
Sometimes it seems hard to believe, but for many of our
products, more water is consumed when people use theproducts in their homes than at any other time during the
product’s lifecycle. While we cannot directly control the amountof water that people use in their homes, we can give ourconsumers tools to reduce water use without compromising
performance. We are doing this via our goal to provide one
billion people with access to water-efficient products by 2020. At
the end of FY16/17, about 610 million consumers had access towater-efficient products around the world.
This graph represents P&G's overall freshwater use acrossall lifecycle stages. Individual product profiles may differ fromthis distribution.
P&G Water Footprint

3%

Raw Materials

1%

Manufacturing<1%

Packaging<1%

Distribution
96% Consumer Use<1%

End of Life

Tide HE Turbo
High Efficiency (HE) machines can be found in the homes of
millions of Americans today. These machines enable people toclean their clothes while decreasing their impact on water andenergy. But your HE machine is only as good as the detergent
you put inside and not all HE detergents are created equal. Some
detergents can add up to 25 extra minutes to your wash cycle,
equaling up to 10 extra gallons needed to do your laundry. Tide
Turbo helps eliminate this extra time and water usage while
giving a fantastic clean. With the suds suppressing technology inTide HE Turbo, machines can switch from the rinse cycle to thespin cycle easily, saving an estimated 260 gallons per household
per year vs. the second leading HE value detergent. 160 million
people have access to Tide HE Turbo in the United States.

Tide HE Turbo helps eliminate
extra time and water usage byhelping machines switch fromrinse to spin easily thus saving
an estimated 260 gallons perhousehold a year.

Learn more about how Tide HE Turbo can help

PROVIDING CLEAN WATER TO THOSEWHO NEED IT MOST
At P&G, we recognize the importance of looking at water
stewardship holistically. We look beyond reducing our water
impact through manufacturing and product usage to include
increasing access to clean water around the world. That is why
we have a goal to provide 15 billion liters of clean water tothose who need it most by 2020 through our Children’s Safe
Drinking Water (CSDW) Program. This year, we made significant
progress against this goal and can proudly say that with the helpof our more than 150 partners, we’ve provided more than 12
billion liters of clean water to people around the world since theprogram began in 2004.

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Waste
We have a vision that one day zero consumer andmanufacturing waste will go to landfill. To help
lead the way and demonstrate what is possible,
our manufacturing sites are on a mission to get
to zero waste to landfill now.
MANUFACTURING WASTE
Zero Manufacturing Waste to Landfill (ZMWTL)
In January, we kicked off our New Year’s resolutions bycommitting that all of our production sites would send Zero
Manufacturing Waste to Landfill by 2020. Our teams are making
phenomenal progress, with more than 72% of our facilities
currently being qualified as ZMWTL.

Waste Disposed
Percent reduction versus FY09/10 — per unit of production

Solid Waste Non-Hazardous by GBU
Thousands of metric tons

47

FY16/17-80%

FY15/16-78%

52

FY15/16

FY14/15-78%

53

FY14/15

Water Consumption
by GBU
Disposed
Waste by GBU
Millionsof
cubic
metersThousands of metric tons

FY16/17

Solid Waste Hazardous by GBU
Thousands of metric tons
78 62

FY16/17
FY16/1764
84

FY15/16
FY15/16

86 68

FY14/15
FY14/15

Baby, Feminine & Family Care

BeautyFabric & Home Care

Grooming

Health Care

Other

4

FY16/17105FY15/16
FY14/15

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Waste
MANUFACTURING WASTE

This year, we qualified 22 sites — more than any other year, andin the process, saved the Company millions of dollars.

In addition to individual sites, our waste teams also look for ways
to drive ZMWTL across entire countries or regions. This year we
added two of P&G’s largest markets, India and China, to the list.
The 16 sites within these regions stepped up to lead the way for
their sister sites around the globe by finding innovative beneficial
reuse, such as turning toothpaste scrap into detergent for cars in
China, and making building panels out of scrap plastic laminate
in India. In total, we now have 23 countries where all of ourmanufacturing sites have qualified as ZMWTL.

Zero Manufacturing Waste to Landfill
Sites qualified by FY

22 FY16/17
18

FY14/1511

FY13/1414

FY12/1311
16

Hungary
India
Indonesia
IrelandJapan
MexicoPakistan
Philippines
PolandRomania
Singapore
South Africa

South Korea
Spain
TurkeyUnited Kingdom
Vietnam

FY11/122

FY10/112

FY9/10

1 1

FY8/9

1

FY7/8

1

FY6/7

100% of our manufacturing sites in 23 countries have now qualified as ZMWTL:
Belgium
China
Czech Republic
Egypt
FranceGermany

FY15/16

Learn more about what makes a site ZMWTL.

ZMWTL Qualifications

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Waste
GLOBAL ASSETS AND RECOVERY PURCHASES(GARP)

Here are some the innovative solutions GARP has implemented
this year:

Our Global Assets and Recovery Purchases (GARP) program
continues to be a great enabler in our waste efforts as we findinnovative ways to reduce waste and disposal costs. Since 2007,
this program has diverted nearly 700,000 metric tons of trashfrom landfills, finding alternative uses for this would-be waste.
Showing sustainable manufacturing is smart business, it has also
saved us more than $1.9 billion.

GARP Highlights• At our Auburn Tampax plant, the plastic trim from ourwrapping operation is recycled into mudflaps, truck bedliners,
Adirondack chairs and patio boards.
• In a joint effort with local schools, shipping drums used tostore incoming materials at Binh Duong (Tide) and Ben Cat(Pampers) plants were painted and repurposed into artistic
waste bins, school benches and tree containers.
• Waste food from the cafeteria at our Milenio plant is being
used as animal feed on local farms.
• At our Akashi site, scrap Always pads are being recycled into
absorbent cat litter.
• In China, highly absorbent materials from Pampers are used
to create a unique fertilizer that can hold water for extended
periods of time, allowing local groups to replant in harsh areas
such as the Gobi Desert.

We have diverted nearly

700,000
metric tonsof trash from landfills.
Employees from Ben Cat andBinh Duong re-purposed shipping
drums for the local community.

CONSUMER WASTE
P&G is also committed to helping our consumers reduce theirwaste footprints. We have been involved in post-consumer
recycled (PCR) materials for nearly 30 years and continue ourefforts to help drive positive change. We are advancing a numberof waste reduction pilots in developed and developing regions
and know that partnering with others in the industry resultsin greater impact. On the following pages, we share updates
on some of those great collaborative efforts on such projects
as Waste to Worth, The Closed Loop Fund, The Recycling
Partnership, The Materials Recovery For the Future, PureCycle
Technologies, and Fater.

P&G is committed to waste
reduction and helping consumers
reduce their waste footprints.

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WASTERevolutionizing
the Plastics
Recycling
Industry
Recycling is a vital part of who we are as acompany and, in fact, P&G has been using
recycled plastic in products and packaging
since the late 1980s. To date, our usage
has predominantly been in polyethylene(PE) and Polyethylene Terephthalate (PET)PCR. For polypropylene (PP), one of our
top three resins used, the limited supplyof high-quality PCR was motivation for us
to innovate. One of our lead scientists, Dr.
John Layman, developed a purification
technology to improve the quality ofrecycled polypropylene. This technology has
the potential to revolutionize the plastics
recycling industry by introducing highquality recycled PP into the market.

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124“Our approach to innovation not only includes
products and packaging, but technologies thatallow us and others to have a positive impact
on our environment. This technology, which canremove virtually all contaminants and color fromused plastic, has the capacity to revolutionize theplastics recycling industry. It will enable P&G andcompanies around the world to tap into sourcesof recycled plastics that deliver nearly identical
performance and properties as virgin materials
for use in a broad range of applications.”— Kathy Fish, P&G’s Chief Technology Officer

P&G licensed the technology to PureCycle
Technologies (PCT), a portfolio company of
Innventure, a Wasson Enterprise Partnershipthat commercializes disruptive technologies.
PCT hosted a ribbon-cutting for a new plant inHanging Rock, Ohio, that will produce recycled
PP plastic with “virgin-like” quality. While this isa P&G-developed technology, the recycled PP
produced will be widely available for purchaseacross the entire plastics industry.

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Waste
WASTE TO WORTH

Importantly, the portfolio is performing as expected and initial
theories are proving out.

Waste to Worth is an effort to develop an integrated, profitable
and replicable waste-management business model thatfinds value from waste. Three key pilots are currently underdevelopment in Angeles City, Cabuyao and Dagupan in thePhilippines. The goal of the pilots is to convert more than 1,000
tons per day of solid waste to value. Various business models
are being explored to extract value from waste as a means ofcreating economically viable and thus sustainable infrastructure.
We have supported this effort with our partner, the AsianDevelopment Bank, who co-funded feasibility studies that werecritical to advancing the project.
This year, we made significant progress with the signing offormal Joint Venture agreements by Angeles City and Dagupan,
legally recognizing and awarding the projects. Many importantleaders attended the signings including the mayors, government
officials from the Philippines and the Deputy Chief of Mission
from the US Embassy. The projects have formally entered theengineering and design phase which will enable construction tostart in 2018. The facilities are on track to deliver on our goal tohave operational pilots in place by 2020.

With the support of the AsianDevelopment Bank, our goal is
to convert more than 1,000 tonsof solid waste to value per day.

Initial Theories
1
The theory of catalyzing outside investors is working. The
portfolio has about a 2:1 co-investment ratio with funds frommunicipal bonds, impact investor dollars and institutional capital.

CLOSED LOOP FUND
We are one of the founding
members of the Closed Loop Fund
(CLF). Now in its third year, this social impact investment fundcontinues to provide capital to US and Canadian cities for
new, expanded and comprehensive recycling programs. CLF
investments now exceed $30 million in capital and in turn haveunlocked an additional $64 million in co-investments to advancethe recycling infrastructure. Co-investors include institutional
investors (BoA, CoMerica), municipal bonds and impact investors(RSF Social Finance, Calvert Foundation). Projects have reached
1.4 million households and are diverting 227,000 tons of material
from landfill. In the first six months of 2017, CLF projects havemore than doubled the tonnage diverted from the previous year
and a half.

Our projects have reached

1.4 million homes
and diverted 227,000 tons of material from landfills.

2
Investing across the entire value chain is enabling more solutions
and better connections between Material Recovery Facilities(MRFs), municipalities and end markets. For example:• MRFs in southeast US can send mixed plastics to end-users
such as IntegriCo.
• MRFs in the northeast US can connect with Aero Aggregates
as an end market for glass.
Closed Loop Partners (the parent investment firm) is also
supporting the success of the Closed Loop Fund throughits other funds — Closed Loop Ventures and Closed Loop
Foundation. Learn more about the Closed Loop family of funds
on their website.

Closed Loop Fund

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Waste
THE RECYCLING
PARTNERSHIP

MATERIALS RECOVERYFOR THE FUTURE

We are honored to continue
our support of The Recycling Partnership, an industry
collaboration transforming the recycling system. While recycling
feels universal, the truth is we can do much better. We strive
to make recycling (at home and in public) easier than throwing
something away. Together with The Recycling Partnership, weare changing the recycling landscape by growing access torecycling, expanding the ability to recycle P&G products, andeducating residents about how and what to recycle in theircommunity. Working nationally and in cities such as Chicago,
Atlanta, Denver and Santa Fe, this partnership is ensuringthat recycling can reach its full potential, delivering powerful
economic and environmental metrics. Additionally, in the past
three years alone, this group has helped more than 400,000
American families receive a new recycling cart, totaling morethan $27 million worth of new infrastructure and has forgedseveral state-wide partnerships to drive best practice adoption.

We, along with other leading
members of this group, arecommitted to finding recovery
solutions for film and flexible plastic
packaging. With help across the
packaging value chain and recovery community, the Materials
Recovery for the Future (MRFF) program, led by experts from
Resource Recycling Systems (RRS), has completed large-scaletesting of flexible film recovery in material recovery facilities(MRFs). We have advanced our knowledge significantly and aremuch more prepared to effectively handle film and ensure proper
separation in a MRF. There is more work to do, but we are now
ready to move to the next phase of learning which is to establish
a community MRF collection and processing program with plans
for multi-year support. We also have end-market development
efforts underway and will connect recycled film with endmarket applications. We anticipate this demonstration phase
to commence in 2018. We know efficient and economically
viable flexible film recovery is a current challenge, but remaincommitted to this collaborative effort and envision a future
where we deliver on the vision where “flexible packaging is
recycled, and the recovery community captures value from it.”

“P&G’s dedication to recovering more recyclables
has been evident through their very active supportof The Recycling Partnership. Regrettably, theUS currently disposes of over 20,000,000 tons ofrecyclables annually. Those lost recyclables, if
recovered, would deliver a climate-action savings

We strive to makerecycling (at home andin public) easier than
throwing something away.

equivalent to removing more than 10,000,000
cars from the road. With P&G’s support, we’redelivering a better outcome that builds healthiercommunities and a healthier planet.”— Keefe Harrison
CEO of The Recycling Partnership

We are all committed to finding

recoverysolutionsfor film and flexible plastic packaging.

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Waste
DIAPER RECYCLING

WORKING TOGETHEROver the last 20 years, we have reduced the weight of our
Pampers diapers by roughly 50% while continuing to deliver theoutstanding performance that our moms and babies expect anddeserve. While we are proud of our source reduction efforts andthe positive impact they have had, we continue to explore diaper
recycling technologies.

We recognize that working together with partners andcompetitors, sharing knowledge and collaborating, isan imperative. Not only will we be able to achieve ourenvironmental goals more effectively, it’s also fundamentallythe right thing to do. Here are a few examples of how weare working together to use our core capabilities with others’
expertise to drive the industry forward.

Together with our Joint Venture partner Fater in Italy, we areadvancing a new technology that recycles used absorbent
hygiene products (baby diapers, adult incontinence and fem
care products), turning them to higher value products andapplications for a new life. Building on the success of our initial
pilot system in Italy, we will launch the technology in Amsterdam(Netherlands) and in Pune (India). The learnings we derive from
Amsterdam and Pune will help guide our efforts to grow andexpand use of this technology.

We have reached a50%
reduction
in weight of our Pampers
diapers over the last 20 years.

Example 1
This spirit of collaboration is at the heart of the Ellen MacArthur
Foundation’s New Plastics Economy initiative, which we joinedlast year. The New Plastics Economy works with stakeholders toalign on competing standards across the value chain, with theaim to create a circular system for plastics.
Example 2Started in 2015, Pioneer Project is a project led by P&G China inpartnership with the China Environmental Protection Foundation
to leverage our rich experience in cultivating leaders. P&G
China provides funding, training and networking to student
environmental protection societies in universities in China,
aiming at growing future leaders in environmental protection
within China. From April 2015 to April 2017, we supported 92
university societies and 82 environmental protection projects,
benefiting more than 970 university students. In 2016 alone, 50
university societies, 40 projects and 470 students benefited from
Pioneer Project. Pioneer Project is also leading in integrating P&G
business partners. In March 2017, our business partner, Yonghui
supermarket, joined Pioneer Project for 5 years.

Example 3
We have been working with about 30 suppliers to explore
opportunities in sustainable innovation within the absorbent
hygiene products. In April, we launched the Baby & Fem Care
Sustainable Supply Chain Innovation Program designed toreduce the environmental footprint of baby diapers, feminine
menstrual products, adult incontinence pads and wipes throughsuppliers’ improvements in the next 10 years. These suppliers
have been rigorously exploring their resource use, emissions,and environmental and citizenship programs to identify newopportunities. They are setting specific targets in several areas:
energy efficiency, renewable energy use, reduced waste/increase
recycling, transport/packaging efficiency, robust sustainability
reporting, greenhouse gas reduction, water reduction andrisk mitigation, optimal material consumption, third party
certifications (pulp, cotton), biodiversity and land management.
Example 4
We are supporting the Trash Free Seas Alliance efforts to halt theflow of plastic to the worlds oceans.

Check out TFSA's efforts on ocean plastic

We involve our suppliers and share our sustainability standards
and expectations. We have been working with them using a
supplier sustainability scorecard since 2010.

Check out the sustainability scorecard

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The Power of P&G People
While the world celebrated Earth Day on April 22, we took theopportunity to recognize the event for an entire week with morethan 50 sites around the world participating in some activities toremind employees of our sustainability efforts and reinforce theidea that “You Can Make a World of Difference.” Some regional
highlights include:
North America
In NA, many of our sites hosted
Earth Day fairs, and at ourheadquarter building and theMason Business Center, thefacilities moved to Centralized
Waste, a program aimed
at reducing the amount ofmaterial going to landfill while
increasing the amount of recycled material.
Brussels
In Brussels, they launched their “net positive” energy initiativeand beach clean-up event.
Germany
The Groß-Gerau Plant in Germany has supported a local schoolfor the last several Earth Weeks by making collages and posters
depicting the Earth Week theme.
Philippines
P&G Philippines celebrated Earth Week by practicing Earth
Hour, where all P&G floors switched off the lights during
lunch time and raised funds for “Plant for the Planet” —a tree planting activity.

Indonesia
P&G Indonesia ended its
Earth Week campaign with an
employee tree planting event.
China
The China team created a
media tag #YOU CAN MAKE
A WORLD OF DIFFERENCE, translated as #美好世界由我创,on Weibo for their social media material and expanded their
beloved photo contest to the public for the first year.
Argentina
In Argentina, they conducted a composting workshop
and provided plant kits and paper made from seeds, as a gift
to all employees.
India
The Baddi plant celebrated with activities including a skit
performed by the sustainability team, a tree planting, asustainability quiz, a video, classroom sessions and adoptionof the corporate branding around the site.

In addition, P&G employees associated with our Bounty,
Charmin and Puffs brands took time away from their day-today responsibilities to learn more about activities we are doing
to support responsible forestry. Last year, they heard from
FSC smallholder Stacey Locke whose family woodlands were
the first in the US Southeast to produce FSC certified timber.
In addition to interacting with Stacey, they had the opportunity
to meet with representatives from World Wildlife Fund,
Rainforest Alliance and Forest Stewardship Council to learn
about forestry concerns and actions we can take to protect
them. They also learned more about what P&G is doing tosupport responsible forestry, why P&G prefers FSC, and why
buying products like Charmin and Puffs that now carry the
FSC logo supports global forests.
P&G people have also given back to their communities bycleaning debris from some of the area rivers. Two major eventswere the Cincinnati event in September where nearly 100
volunteers got together with Living Lands & Waters to clean
up the banks along the Ohio River and a similar event inBrussels where about 75 employees removed trash along
the Belgian coast.

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Recognitions
This year, Tide purclean received
a prestigious Silver Edison Award
for Sustainability. Being recognizedwith an Edison Award is one of thehighest accolades a company canreceive in the name of innovation
and business success.
We were recognized as an Organizational Leader in the2017 Climate Leadership Awards. Sponsored by the US EPA
Center for Climate and Energy Solutions and The Climate
Registry, the award recognizes P&G’s active leadership in
the industry to address climate change and reduce ourgreenhouse gas emissions.

In Vietnam, we received the “Green Book” award granted
by Binh Duong DONRE as recognition for all contributions toenvironmental sustainability throughout the year.
In FY16/17, we joined the EPA’s Green Power Partnership (GPP)
which highlights US companies’ usage of renewable electricity.
This was enabled by the mid-year start-up of the Tyler Bluff windfarm that provides renewable electricity to all our US and Canada
Fabric and Home Care plants. P&G is on the GPP’s National Top
100 list, 14th on the GPP’s Fortune 500 Partners List and is 2nd for
consumer products organizations. As we advance toward our2020 renewable energy commitments increasing our usage of
renewable electricity, we expect to move up the list.

In the Green Power Partnership (GPP),
we currently rank

30th out of 100
in the National Top 100 list.
In early 2017, our environmental efforts were recognized byWalmart Canada when P&G Canada received the Vendor of theYear Award for Sustainability. This award recognizes a company’s
overall progress and efforts in helping Walmart achieve theirsustainability goals: to be supplied 100% by renewable energy;
to create zero waste; to sell products that sustain people andthe environment. We are honored to be recognized by this top
customer for our sustainability efforts.

We also received the special award for “resource efficiency”
at the German Sustainability Awards for playing “a pivotal
role within the industry” in protecting resources and our“numerous initiatives in the value chain” to make this part of oursustainability strategy. This award is a fantastic recognition of
the vision, passion and dedication of our R&D, Product Supply
and Brand teams to reduce the footprint of our products along
the lifecycle.
The American Forest & Paper Association recognized us inNovember with their 2016 AF&PA Leadership in SustainabilityAward for Water for our Water Conservation Response projectfor our work at the Oxnard, CA facility. Here we have reduced
water consumption 28% between 2012 and 2015 and set newrecords for reduced levels of water consumption.

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Recognitions
We are committed to "designing in" sustainability
within our facilities, including pursuing LEED
certification for all new facilities. We now havemore than 24 sites with LEED Silver or Goldcertification.
LocationGold

Silver

Ben Cat, Vietnam

2

Box Elder, UT, United States

1

Cabuyao, Philippines

1

Cincinnati, OH, United States

2

Cruz, Brazil

1

Greensboro, NC, United States

1

Gyongyos, Hungary

1Guangzhou, China

11Hyderabad, India

1

2

Jakarta, Indonesia

3

Lagos, Nigeria

2Singapore

1

Taicang, China

3

1

Total

5

19

GyongyosBox ElderCincinnati

Greensboro

Taicang
Guangzhou

Hyderabad
Lagos

Ben CatCabuyao
Singapore

JakartaCruz

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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)

2017 Global Business Unit Detail1 (absolute units x 1,000)

2017

2016

2015

Baby, Feminine andFamily Care

BeautyFabric and Home
Care

Grooming

Health Care

Technical Centers
and Distribution
Centers

30,00725,75827,998

5,935

1,907

20,997

767

401

0

715

694

699

Generated Waste

676

632

784

298

77

201

33

39

29

Percent Recycled / Reused Waste

86%

83%

87%

92%

87%

86%

99%

87%

68%

Waste Disposed

78

84

86

29.23

8.30

29.94

0.42

3.92

5.80

Solid Waste — Non-Hazardous

46

46

50

18.76

5.79

15.48

0.04

1.23

4.88

3

8

4

0.05

0.06

2.94

0.02

0.01

0.37

19

18

21

4.52

2.27

9.40

0.30

2.57

0.39

9

12

11

5.91

0.19

2.13

0.06

0.11

0.15

58,78358,697

63,34637,2692,897

11,799

2,453

1,817

6

4,583

4,841

5,149

2,869

274

864

191

150

235

2,174

2,099

2,268

1,566

82

355

64

46

62

2,409

2,742

2,881

1,303

192

509

128

104

173

105

209

275

105

N /A

N /A

N /A

N /A

N /A

62,02863,67067,83238,814

4,672

13,770

1,009

4,973

2,098

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

3

Waste (metric tons)

Disposed Waste (metric tons)

Solid Waste — Hazardous
Effluents (excluding water)
Air Emissions

4

5

Energy and Greenhouse Gas (GHG)
Energy Consumption (gigajoules)
Total GHG Emissions (metric tons)

6

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

7

Biogenic GHG Emissions (metric tons)
Water (Cubic meters)
Water Consumption

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

(4) Wastewater chemical oxygen demand (COD).

(1) For 2017, Baby, Feminine and Family Care includes Baby Care, Feminine Care and Family Care. Beauty includes Beauty Care 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.

(6) Total GHG emissions = Scope 1 + Scope 2. Scope 2 emissions calculated using a market-based method.

(2) Estimated from shipment figures. Data was estimated using FY16/17 production volumes and FY15/16 conversion factors.
(3) Data is tracked at a corporate level.

(5) Air emissions include particulates, SO2, NOX, CO and VOC.
(7) Market-based Scope 2 GHG emissions. Note: Location-based Scope 2 emissions for 2017 were 2,750,000 metric tons.

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Global Measurement and Additional
Operational Data
2020 GOAL MEASUREMENT SYSTEMSLOW-ENERGY CYCLE MACHINE WASHING LOADSPAPER PACK AGING

We go to great lengths to ensure rigor, accuracy
and transparency in our reporting. Below, we shareadditional information on some of our 2020 Goal
Measurement Systems to help ensure clarity andtransparency on the data we are reporting: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.

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 contractor
manufacturers and covered over 95% of our global spend.

PACK AGING REDUCTIONGREENHOUSE 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. The WRI/WBCSD GHG Accounting
protocol provides additional perspective on market — versus
location-based GHG emissions.

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, Personal
Cleansing Care, Shave Prep, Hair Color and Hair Care). While asubset of overall data, we believe it is representative of overall
corporate data and focuses resources on the biggest SKUs andcategories that have the biggest impact on packaging.

Learn more about GHG Protocols
RECYCLABILITY OF PACK AGINGOur GHG emissions data has been verified by an external third
party, Lloyd’s Register Quality Assurance (LRQA).

Lloyd's Register Quality Assurance

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 forcollected material). While we require large-scale systems to be inplace in at least one geography, we do not require a minimum
percent access or recovery rate per package in every country
or market where a package may be sold for the package to beconsidered recyclable for purposes of tracking progress versus
our goal.

INTRODUCTIONETHICS & CORPOR ATE RESPONSIBILIT Y

COMMUNIT Y IMPACT

DIVERSIT Y & INCLUSIONGENDER EQUALIT YENVIRONMENTAL SUSTAINABILIT Y

Global Measurement and Additional
Operational Data
RENEWABLE ENERGYBASELINE RESTATEMENT

When calculating the renewable energy powering our plants,
we include the renewable energy level of the local electrical
grid that provides power to the plant.

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 as other minor
modifications and corrections to historic data. Our original
baseline was 5,466,601 metric tons. Our revised baseline,
which we will use for calculating progress versus GHG emissions
reduction goals, is now 5,488,224 metric tons. As part of thiswork, we also updated our baselines for energy, water
and waste. Original energy baseline was 67,904,220
gigajoules. It is now 66,860,377 gigajoules.
Original water baseline was 77,049,114 cubic
meters. It is now 75,530,696 cubic meters.
Original waste was 354,563 metric tons.
It is now 340,688 metric tons. The baseline
year remains the same — P&G’s FY09/10.

WATER CONSERVATIONOur goal to reduce water use in manufacturing facilities by 20%
per unit of production applies to freshwater consumption, whichmeans freshwater intake from the following sources:• Tap water — water supplied by municipalities or third-party
companies via piping systems or trucks, at any quality they
deliver• Net water via purchased steam• Ground water from site wells• Surface water — non-brackish as river, lakes, creeks, etc.,
at any quality they deliver

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Global Measurement and Additional
Operational Data
NOTICES OF VIOLATION

AIR EMISSIONS

A breakdown of NOVs is provided below:

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
16/17. Note, some fines are still under review but are includedin the total numbers.

Year

Number

Fines

2017

24

$102,8042016

29$46,2502015

27$444,708

Numberof NOVs

Fines

Water-Based7$4,461

Air-Based

2$63,499

Solid-Waste-Based0$0

Paperwork

0$0TransportationBased

0

$0

Other

7

$10,879

Worker Safety

8$23,246

Violation

Total

24 $102,085

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

Air Emissions by GBU
Thousands of metric tons

8.5

FY16/1712.3
11.1

Baby, Feminine & Family Care

BeautyFabric & Home Care

Grooming

Health CareOther

FY15/16
FY14/15

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COMMUNIT Y IMPACT

DIVERSIT Y & INCLUSIONGENDER EQUALIT YWorldwide Health, Safety
and Environment Systems
HEALTH AND SAFETY POLICYP&G is committed to having safe and healthy operations aroundthe world. Our goals are to protect the lives and health of ouremployees and the communities surrounding our operations,
was well as to protect our assets, ensure business continuity,and engender public trust.

WORLDWIDE HEALTH, SAFETY& ENVIRONMENT ORGANIZATION
Health, Safety & Environment (HS&E) is a global communityof resources responsible for ensuring that all sites worldwide —including innovation centers, distribution centers, acquisitions
and established plants — are operated safely and are compliant
with applicable health, safety and environment regulations;that process hazards are minimized or eliminated; that healthrisks are identified and managed or eliminated; and that
operational wastes are reduced as much as possible. Several
thousand employees spend all or a portion of their time on
HS&E management.
There are three major components to a site’s HS&E organization:
Environmental, Technical/Process Safety and Industrial Hygiene& Personnel Safety. In addition each site typically has both a Fire
Protection Systems Leader and an overall HS&E Leader. The HS&E
site organization closely partners with the site Health Services,or Medical leader. P&G uses a phased, detailed Risk Assessment
process to evaluate the safety of process changes and initiatives
being introduced at its own manufacturing operations as well as
at contractor manufacturing operations. The Risk Assessment
process is designed to enable high-speed innovation.

More information about HSE

This report was prepared using the Global Reporting Initiative’s (GRI’s) GRI3.1 Reporting Guidelines.
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.

ENVIRONMENTAL SUSTAINABILIT Y

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ABOUT OUR CITIZENSHIP REPORTThis report shares a few examples of the work being done
across the Company. The information in this report covers
the time period from July 1, 2016 through June 30, 2017.

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