2018 Citizenship Report
STARTIntroduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Message from the CEO
Dear Stakeholders,
We made significant progress in each area of P&G’s
Citizenship work in fiscal year 2018, and we continue
to actively build Citizenship into how we deliver ourbusiness results.
Our aspiration is clear. We want to be a force for good
and a force for growth. We know that the more we
integrate and build Citizenship into how we do business,the bigger the impact we can have on the people we• Our Children’s Safe Drinking Water Program delivered
more than one billion liters of clean drinking water last
fiscal year and has provided more than 14 billion litersof water to those who need it most since the program
began in 2004.
• We increased representation for women, now at 46%
of all P&G managers globally, and we increased our U.S.
representation and workplace satisfaction of African
Ancestry, Hispanic and Asian Pacific American employees.

serve, the communities where we live and work and the• We used our voice in advertising to promote importantbroader world that surrounds us. In turn, this helps us

conversations about a full range of equality, diversity

grow and build our business.

and inclusion topics with the “The Talk,” “Love Over

We continue to make positive impact in each area of
Citizenship: Ethics & Corporate Responsibility, Community
Impact, Diversity & Inclusion, Gender Equality andEnvironmental Sustainability. Importantly, our efforts inBias” and “The Words Matter.” We sparked importantconversations to motivate positive change along racial,ethnic, sexual orientation, gender identity, disability
and gender lines.

these areas support nearly every objective outlined in• And, we established a new road map to drive

the United Nations Sustainable Development Goals.

sustainability into how we operate to achieve positive

Here are a few highlights from the last fiscal year:• Along with our NGO relief partners, we helped those

impact through our brands, supply chain, society andour employees. This includes making all packaging
consumers by sharing our safety science across ourwe provided more than 2,000 personal care kits andbrands, cutting greenhouse gas emissions from ourwashed more than 2,300 loads of laundry to help thosemanufacturing sites in half and continuing to help

impacted by hurricanes Harvey, Irma and Maria. We

stem the flow of plastic into the world’s oceans.

victims of the earthquake in Mexico and assisted with
Syrian refugees in France, Germany and Turkey. And
while this report is on a fiscal year basis, it’s important
to note that we’re actively involved in relief efforts for
those affected by recent natural disasters in the U.S.
and Indonesia.

improving lives. It’s who we are. It’s what we do. And it
motivates us to do more and be a force for good and aforce for growth in the world.

recyclable or reusable, strengthening trust with our

impacted by disasters around the world. For example,

also activated our emergency response efforts to aid

For more than 180 years, P&G has been touching andThis work could not have been accomplished without

DAVID S. TAYLOR

P&G people who come to work every day ready to make

Chairman of the Board,a difference in the lives of people everywhere and themany contributions of our business partners.

President and Chief Executive Officer

EXPLORE THE REPORT

2

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

3

Table of Contents
Message from the CEO

2

Internal Management

4Issue Prioritization

5

P&G at a Glance

6

A Company of Leading Brands

7

Ethics & Corporate
Responsibility

8

Message from Debbie Majoras

10

Our Purpose, Values and Principles

11

Our Commitment to Respect Human Rights

12

Doing the Right Thing with Our Employees

15

Doing the Right Thing with Our Consumers

18

Doing the Right Thing with Our Supply Chain

20

Speaking Up

23

Stakeholder Engagement

24

Community
Impact26

Highlights

27

Message from Marc Pritchard

33

P&G Children’s Safe Drinking
Water Program

34

Disaster Relief

36

Habitat for Humanity

39

Brand Programs

40

Latin America

42

Environmental
Sustainability

103

Europe45

Asia Pacific51

Greater China

53

Highlights

104

India, Middle East and Asia

55

Message from Shailesh Jejurikar

110

North America

58

Vision and Progress

111

Employee Well-Being

60

Brand Stories

115

Awards & Recognitions

64

Circular Supply Chains

117

Climate118

Greenhouse Gas Emissions

119

Renewable Energy

121

Diversity& Inclusion

66

Highlights

67

Energy Conservation

122

Message from William P. Gipson

74

Low-Energy Washing

123

Using Our Voice75

Renewable Materials

125

Making an Impact

77

Packaging

126

Changing the Culture

80

Responsible Forestry

128

Awards & Recognitions

84

Palm Oil

132

Water

138

Waste

143

The Power of P&G People

148

GenderEquality

85

Highlights

86

Sustainable Innovation with Suppliers

150

Message from Carolyn Tastad

93

151

Using Our Voice

94

Worldwide Health, Safety andEnvironment Systems

Making an Impact

97

Awards & Recognitions

155

Changing the Culture

99

Environmental Resource andWaste Summary

158

Gender Equality Partners

101
102

Global Measurement andAdditional Operational Data

159

Awards & Recognitions

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Internal Management
Our objective is to create industry-leading value by
maintaining and enhancing our strong corporate
reputation through a strong ethics and complianceculture that supports conserving resources, protecting

Ethics &Corporate
Responsibility

the environment, improving social conditions, respecting
human and labor rights, and empowering individuals
and the communities in which we live, work and serve.
We start with Ethics & Corporate Responsibility as the

Executive Sponsor
Chief Legal Officer

foundation for the other four priority areas: Community
Impact, Diversity & Inclusion, Gender Equality andEnvironmental 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.

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

Community
ImpactCitizenship
Board
Chair
Chairman of the Board,
President & Chief Executive Officer

Executive Sponsor
Chief Brand Officer

GenderEquality

Environmental
Sustainability

Executive Sponsor
Selling & Market
Operations President

Executive Sponsor
Global Business
Unit President

4Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Issue Prioritization
Last year, 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 results from theissue prioritization exercise reinforced ourstrategic 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 &Ingredient Transparency were rated as high priorities bystakeholders. Our ongoing commitment and efforts inthese areas are embedded within our entire Citizenshipreport and highlighted in our Ethics & Corporate
Responsibility section.
ETHICS & CORPORATE RESPONSIBILIT Y

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

Insight 3
The topics of “Promoting Sustainable Lifestyles” and“Sustainable Product Design & Innovation” were also
important to our stakeholders. Our brands continue toplay a leading role in driving innovation and engaging
with our consumers on a wide range of topics. In
addition, our Ambition 2030 framework, announcedin April, places an increased emphasis on the role ourbrands can play in driving positive impact. Learn more
about the four focus areas of our 2030 Ambition Goals.

AMBITION 2030

Gender Equality

Environmental Sustainability

5Introduction

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Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

6

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 to compete — creating superiorshareholder value in the process. We work
hard every day to make quality products andservices that improve people’s lives, now andfor generations to come.

Amounts in billions, except per share amounts
Net Sales$66.8

Operating Income$13.7

Net Earnings Attributable to P&G$9.8

	Beauty

14.8%

Net Earnings Margin from Continuing Operations
Diluted Net Earnings per Common Share from Continuing Operations
Diluted Net Earnings per Common Share2018 net sales bybusiness segment 2

2018

$3.67

1

$3.67

1

Operating Cash Flow

$14.9

Dividends per Common Share$2.79

2018 net sales bygeographic region2018 net sales bymarket maturity

19%

North America 3

44%Developed Markets

65%

Grooming

10%Europe24%

Developing Markets

35%

Health Care

12%

Asia Pacific9%Fabric & Home Care

32%

Greater China

9%

Baby, Feminine & Family Care27%

Latin America

7%

India, Middle East & Africa (IMEA)

7%

Diluted net earnings per common share are calculated
based on net earnings attributable to Procter & Gamble.
2
These results exclude net sales in Corporate.
3
North America includes the United States, Canada andPuerto Rico.
1Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

A Company of Leading Brands
Our portfolio is organized around 10 product categories and about 65 brands. These 10
category-based business units have historically grown faster with higher margins than thebalance of the Company. These are categories where P&G has leading market positions andwhere product technologies deliver performance differences that matter to consumers. And
across all 10 of our categories, we’re focused on meaningful and noticeable superiority in allelements of our consumer proposition—products, packaging, brand communication, retail
execution (in-store and online) and superior value—in each price tier where we compete.

Fabric Care

Home Care

Baby Care

Feminine Care

Family Care

Grooming

Oral Care

Personal Health Care

Hair Care

Skin & Personal Care

7

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Ethics & Corporate Responsibility
At P&G, we serve nearly five billion people around the world with our brands.
We have operations 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—and have publicly committed to—doing what’s
right and being a good corporate citizen.

VIEW STORIES

8

Introduction

Ethics & Corporate Responsibility

Community Impact

Ethics & Corporate
Responsibility

Message from Debbie Majoras>

Our Purpose, Values and Principles>

Our Commitment to
Respect Human Rights>

Doing the Right Thingwith Our Employees>

Doing the Right Thingwith Our Consumers>

Doing the Right Thingwith Our Supply Chain>

Speaking Up>

Stakeholder Engagement>

Diversity & Inclusion

Gender Equality

Environmental Sustainability

9Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Message from
Debbie Majoras“While the opportunities we seize and the challenges we face are
ever changing, our Purpose, Values and Principles remain a sourceof strength and advantage to our Company. We are mindful that areputation of trust and integrity is essential to our success and must
be consistently earned by operating responsibility and ethically.
Strong governance and compliance practices build that trust, whichleads to increased value creation for our consumers, customers andshareholders.”

Debbie Majoras
Chief Legal Officer
and Secretary10Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Our Purpose, Values
and Principles

Our Purpose, Values and Principles are the foundation

We operate within the spirit and letter of the law,of who we are. Our Purpose is to improve consumers’maintaining high ethical standards wherever welives in small but meaningful ways, and it inspires P&G

conduct business. We believe that good governancepeople to make a positive contribution every day. Our

practices contribute to better results for shareholders.

Values of Integrity, Leadership, Ownership, Passion for

We maintain governance principles, policies andWinning and Trust shape how we work with each otherpractices that support management accountability.

and with our partners. And our Principles articulate

These are in the best interest of the Company, ourP&G’s unique approach to conducting work every day.

shareholders and all stakeholders, and they are

We know that P&G employees believe in the personalconsistent with the Company’s Purpose, Values

and business value of this PVP foundation—our PVPs

and Principles.

are consistently cited in our annual employee survey
as the top aspect about P&G they would not change.
Our philosophy is that a reputation of trust and integrity
is built over time, earned every day and is what sets
us apart.

PURPOSE, VALUES AND PRINCIPLESCORPORATE GOVERNANCE OVERVIEW

Gender Equality

Environmental Sustainability

11Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

12

Our Commitment to
Respect Human Rights
In 2014, P&G published its Human Rights
Policy Statement that communicates our
support for the UN Guiding Principles on
Business and Human Rights, which are
drawn from and reinforce the principles ofinternationally recognized human rights
consisting of: those rights expressed in
the International Bill of Human Rights(i.e., Universal Declaration of Human Rights
and the International Covenants on
Economic, Social and Cultural Rights; andCivil and Political Rights) and the principles
concerning fundamental rights as set out in
the International Labor Organization (ILO)
Declaration on Fundamental Principles
and Rights at Work.

We recognize that it is the sovereign state’s duty toprotect against human rights abuses by establishingand upholding appropriate laws and policies. We also
recognize that some states do not have adequate legal
and regulatory frameworks, enforcement mechanisms
or have laws that conflict with these internationallyrecognized human rights. Wherever this is the case,we will always try to do the right thing by respecting
human rights consistently across our global operations.
We expect these same commitments to be shared byour business partners, and we strongly encourage ourbusiness partners to share these same expectations
with their business partners.
HUMAN RIGHTS POLICY STATEMENTChild Labor
We do not permit the exploitation of children anddo not use child labor in any of our global facilities.
We take this commitment very seriously. In 2014, welearned that children were picking postconsumer

UN GUIDING PRINCIPLES ON
BUSINESS AND HUMAN RIGHTS

waste from landfills, which ultimately made its way to
our upstream corrugate supply chain. Since then, we
have stayed engaged with our corrugate supply chain

ILO DECL ARATION ON FUNDAMENTAL
PRINCIPLES AND RIGHTS AT WORKand used our leverage to enable suppliers to address
the issue and provide remedy to the children and theirfamilies. Remedy included, for example, establishingschools, enrolling and supporting affected children in
the schools, launching mobile health clinics, developing
skilled workshops and compensating parents for loss of
income. We participated in a panel session at the 2016
UN Forum on Business and Human Rights to highlight
how responsible corporate engagement can be astrong force for advancing the cause of human rights.
UN FORUM ON BUSINESSAND HUMAN RIGHTSIntroduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Our Commitment to
Respect Human Rights
Forced Labor
P&G supports The Consumer Goods Forum Priority Industry Principles, whichstate: Forced labor is an unacceptable human rights violation that can take multiple
forms and must be addressed. While certain employment and recruitment practices
may not initially appear problematic, in aggregate or combined with other forms ofleverage, they can result in forced labor, particularly among vulnerable workers. We
will take active measures to apply these Principles across our global value chains andour operations, to cases where such practices may lead to forced labor. We will seek toapply these Principles to all workers regardless of their employment status, location,
contractual arrangements or role.
We do this as part of our collective journey to advance the human rights of workers
and positively shape global labor markets aspiring that:

I. Every worker shouldhave freedom of movement.

II. No worker should
pay for a job.

III. No worker should be
indebted or coerced to work.

The ability of workers to move freely

Fees and costs associated with

Workers should work freely, aware of theshould not be restricted by their

recruitment and employment should beterms and conditions of their work in

employer through abuse, threats andpaid by the employer, not the employee.

advance, and paid regularly as agreed.

practices such as retention of passportand valuable possessions.

PRIORIT Y INDUSTRY PRINCIPLES

13

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

14

Our Commitment to
Respect Human Rights
Non-Discrimination
P&G is deeply committed to an inclusive culture, andFreedom of Association andCollective Bargaining

P&G does not discriminate against individuals on the

P&G respects our employees’ right to choose tobasis of race, color, gender, age, national origin, religion,
sexual orientation, gender identity or expression, marital
status, citizenship, disability, veteran status, HIV/AIDS
status or any other legally protected factor. For more
information about our Diversity & Inclusion and Gender
Equality efforts, visit those sections in the report.
In June 2017, P&G joined the CEO Action for Diversity& Inclusion to advance diversity and inclusion in theworkplace and has committed to: continue to cultivate

We joined CEO Action for
Diversity & Inclusion to cultivate
workplaces that advancediversity and inclusion andsupport open dialogue.

workplaces that support open dialogue on complex,
and sometimes difficult, conversations about diversity
and inclusion; implement and expand unconscious
bias education; and share best known—as well as
unsuccessful—actions.
CEO ACTION FOR DIVERSIT Y & INCLUSION

DIVERSIT Y & INCLUSION: CHANGING THE CULTURE

GENDER EQUALIT Y: CHANGING THE CULTURE

join or not to join a trade union or to have recognizedemployee representation in accordance with local
law. Where employees are represented by a legally
recognized union or employee representative, we arecommitted to establishing a constructive dialogue
regarding the interests of both the employees andthe business. The Company will bargain in good faithwith such representatives in accordance with local law.
Whether the facility is union or non-union, we strive tocreate a high-performing work force—where employees
are highly engaged, multi-skilled and process owners.

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Doing the Right Thingwith Our Employees
P&G people bring our values to life as we
focus on improving consumers’ lives now
and for generations to come. We recruit, hire
and retain the best talent from around theworld, reflecting the diversity of the markets
and consumers we serve. Developing andretaining a diverse workforce provides us
with a sustained competitive advantage. We
recognize that a diverse mix of backgrounds,
skills and experiences drives new ideas,
products and services. This maximizes ourability to achieve our goals together.

Confidence and Trust
At P&G, we strive to promote a work environmentof confidence and trust. Our Worldwide BusinessConduct Manual (WBCM) provides employees withclear guidance on specific situations they may face anddirects them where to go when they have questions orconcerns. P&G is a recognized leader in providing a safe,
healthy, secure and productive work environment. We
are committed to maintaining a workplace that is freeof violence, harassment, intimidation or other unsafe
or disruptive behaviors or conditions due to threats
inside or outside of our facilities. Each employee has a

Our “Do the Right Thing” training series enables
continuous learning for our employees. The all-employee
general training session is derived from our WBCM
principles: Respect, Integrity and Stewardship andother ethics and compliance topics related to thegiven theme. In addition, we deploy breakout training
sessions based on organization needs. In 2017, thegeneral training session was: “Doing the Right Thing –Stewardship at P&G,” and the breakout training sessions
were focused on information security and sexual
harassment prevention.
We also have a library of engaging, custom-built
training courses, which are available to all employees
as a resource and are further assigned based onrole and location to maximize relevance and impact.
These address conflicts of interest, stopping retaliation,
opposing bribery and other areas. In 2017, we partneredwith a renowned behavioral scientist and an awardwinning 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 cinematic style, the genuine
and unscripted participation by executive leadership,
and its candid discussion of human vulnerability to thechallenges, pressures and unseen psychological factors
for which we all must be vigilant.

personal responsibility to their fellow employees and to
the Company to follow all Company safety and security
procedures, as well as applicable laws and regulations.

WORLDWIDE BUSINESS CONDUCT MANUAL

We have an increasing libraryof custom-built training
courses to teach our WBCM
principles: Respect, Integrity
and Stewardship.

15

Ethics & Corporate Responsibility

Introduction

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Doing the Right Thingwith Our Employees
Celebrating Our Do
the Right Thing Culture
Every year, we celebrate our shared Principles, Values
and Purpose (PVP) foundation with the “Do the Right
Thing Celebration.” P&G locations around the world create
their own employee engagement events tied to a global
theme derived from our Worldwide Business Conduct
Manual (WBCM) principles of Respect, Integrity and
Stewardship. Events feature activities and contests toengage employees and raise awareness, leadership
townhall discussions and inspiring videos from
employees making a difference. Sites are recognized
for the outstanding results in the areas of creativity,
engagement and passionate leadership. Though

Employee and Labor Relations
At P&G, a fundamental principle is “The Interests of theCompany and its Employees are Inseparable,” which
provides a foundation for advancing our workforce
strategy. We believe an engaged and capable workforce
is critical to the Company’s success. A key strategy towinning in the marketplace is to create a highly-skilled,agile and flexible workforce that delivers businessinitiatives—better than our competition. We offer an
expansive array of skill-building programs that allow
employees to grow their individual skills, leading tobetter business results and career advancement.
These programs help to ensure a strong and highlyskilled labor workforce that benefits the Company

P&G sets high standards for all employees, thoseas well as the communities in which we operate.

who personally demonstrate commitment to ethics

We regularly assess employee and labor relations

and compliance can also be recognized by peers or
managers with a special “PVP Champion” designation.
Since its inception in 2016, hundreds of employees
have been recognized.

through standard Company tools like our Corporate
Employee Engagement Survey and Compliance &Health Assessment Tool. These assessment tools allow
us to proactively identify and address any individual or
employee group concerns that may potentially impact

Employees and sites
are recognized foroutstanding results increativity, engagement
and passionate leadership.

employee engagement or compliance with local laws
or regulations.

Because we value ahighly-skilled, agile andflexible workforce, we offer
skill-building programs thatlead to career advancement.

16

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

17

Doing the Right Thingwith Our Employees
Compensation and Benefits
P&G supports paying employees competitive totalcompensation, as benchmarked against other leading
companies. Consistent with our principle of valuing
personal contribution and mastery, we provide
employees the opportunity to develop their skills andcapabilities to enhance their ability to succeed in their

have been developed to help protect the financial

individual and team performance which reflects behaviors

each country’s market practices, they might include

consistent with our PVPs and PEAK Performance Factors

things like comprehensive coverage for health care,(Lead with Courage, Innovate for Growth, Champion

a competitive pension scheme, vacation and holiday

Productivity, Execute with Excellence and Bring Out

time and other work/family balance benefits including

Our Best). Recognition helps confirm achievements,

flextime and less-than-full-time schedules, all subject

contributes to feeling valued and encourages employees

to local requirements.

to The
give
their
very
best.
It ofprovides
evidence
thataroundothersBenefits
Navigator
describes
the types
benefits that P&G
offers to its employees
theBenefits navigator

career, consistent with the needs of the business. We

P&G is also committed to recognizing and rewarding

security of employees. While offerings are unique toworld. Some of the benefits described in the Benefits Navigator may not be available to all employees

at all locations.
P&G also may
offer
some
benefits
not describedin the Benefits
Navigator
employees
believein what
we
do
and
that
we aredoing
thetorightare a recognized leader in employee benefits, which

in some locations.

things to help P&G succeed.

VIBRANT LIVINGGLOBAL MEDICAL

Financial

P&G Patterned Circles

Familyhealth& welFare

ViBrant
liVingtime away
FrOm wOrk• Paid Parental Leave• Adoption / Surrogacy Assistance• Flexible Spending Account –Child / Dependent Care

Image describes the typesof benefits that P&G offers
to its employees around theworld. Some of the benefits
described in the Benefits
Navigator may not be
available to all employees at
all locations. P&G also may
offer some benefits notdescribed in the Benefits
Navigator to employees insome locations.

• Health Fair
• Blood Donations• Perks at Work• Flexible Work Arrangements• Service Awards• Legal Services• Annual Gift

Other
BeneFits• Profit Sharing• Pension Plans• Stock Purchase• Employee-InitiatedEmployee Initiated Education
Education
Reimbursement• Retirement Readiness – The Basics• Financial Planning• Medical Plans• Health Savings Accounts• Dental Plan
• Vision Plan
• MyHealth MyRewards• WorkLife Solutions / EAP• Stress & Resilience• Health Flexible Spending
Arrangement– Dental / Vision / Medical Care FSA• Disability– Short-Term / Long-Term– Optional• Life Insurances• Bereavement Leave• Paid Time Off– Personal– Regular Vacation Days
– Purchased Vacation Days
– Company Holidays• Military Leave• Personal Leave of Absence• Family Medical Leave• Volunteerism

Introduction

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Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

18

Doing the Right Thingwith Our Consumers
Since 1837, we’ve built a rich heritage of
positively impacting consumers’ lives withbrands that make each day a little better.

Being Safe, Feeling Safe andIngredient Transparency
We care about the quality and safety of the products
we choose to use in our homes. That’s why we take arigorous approach to ensure product safety, startingwith ingredient screening and selection. If we cannot
be certain about the safety of an ingredient, we will notuse it. Once selected, we define the safe range for every

We take a rigorous approach toensure product safety. If we cannot
be certain about the safety of an
ingredient, we will not use it.

When it comes to people’s home and family, weknow they seek more information to help them feelsafe and to choose what’s best for them. That’s why
we’re committed to providing information that is clear,reliable and accessible—what goes into our products,
what gets left out and why. Increasingly, we will list
product ingredients online via brand websites or apps
like SmartLabel™ (available in the United States andCanada). We will also continue to share information
about ingredients we do not use, and we are committed
to provide fragrance ingredients (down to 0.01% informula) for products marketed in the U.S. by the endof 2019.

ingredient we use with the same scientific process used

We’ve taken a rigorous approach to ensure productby regulatory agencies around the world (WHO, EU,safety and have made this information publicly available.

FDA, EPA and others). Then we evaluate ingredients inthe final product to confirm their actual use is within
the safe range for people and the environment. Once

PRODUCT SAFET Y

a product is marketed, we monitor how people use
it and investigate new scientific information. We also

SMART L ABEL™ PRESS RELEASE

collaborate with external scientists and regulatory
agencies to share information and understand newsafety methods and approaches. These insights help

INGREDIENTS WE DON'T USE

us evolve our safety approaches and keep pace with thelatest data so we can continue to ensure we offer safe
products for consumers and families everywhere.

FRAGRANCE ANNOUNCEMENTIntroduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Doing the Right Thingwith Our Consumers
Our Voice in Advertising and Media
We’ve made a choice to step up and use our voice inadvertising as a force for good and a force for growth—by taking a stand on equality. We recognize that P&G
and our leadership brands can make a meaningful
impact with our wide reach, as images and portrayals of
people in advertising embed memories—over and overagain—which can lead to bias. That’s why as the world’s
largest advertiser, we’ve committed to use our voice topromote equality in three ways:• First, we’re dramatically increasing the diversity in
our everyday advertising.
• Second, we’re developing products and advertising
to meet the unique needs of diverse consumers.

Keeping Privacy and Security
Strong—Protecting Personal
Information
Our stakeholders—whether consumers, employees,
shareholders or vendors—trust that we will ensurethat appropriate privacy and information security
controls will be in place to safeguard critical businessand personal information and that operations aremaintained with due confidentiality, appropriate
integrity and are available when needed. Our Global
Consumer Privacy Policy says that we respect personal
information and take steps to protect it from loss, misuseor alteration and, where appropriate, these steps can
include technical measures like firewalls, intrusion
detection and prevention systems, unique and complex• Third, we’re addressing a unique challenge in the

passwords and encryption. We also use organizational

United States—racial inequality driven by racial bias.

and physical measures such as training staff on dataprocessing obligations, identifying data incidents and

DIVERSIT Y & INCLUSION: USING OUR VOICE

risks, restricting staff access to personal informationand ensuring physical security including appropriately

GENDER EQUALIT Y: USING OUR VOICE

securing documents when not being used. We are also
committed to having an information security programthat provides appropriate levels of protection for thetypes of data we hold.
GLOBAL CONSUMER PRIVACY POLICY

We work with experts
around the world to address
evolving consumer andemployee policies and risks.

19Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Doing the Right Thingwith Our Supply Chain
Our supply chains are the backbone of our
products, and we are making intentional
choices to leverage the footprint of our
suppliers, buyers and manufacturing sites
to be a driver for good. From transparent
sourcing practices that aid consumer decisionmaking to growing shareholder value throughinnovation-driving programs like global
supplier diversity, P&G is proud to be a leader
in supply chain responsibility. This work is
built on three pillars: Responsible Sourcing,
Supplier Diversity and Sustainable Innovation,
all managed by a dedicated Supplier
Citizenship team in Purchases.
Our External Business Partner Guidelines establish
clear expectations of our direct business partners,
including an expectation to respect internationallyrecognized human rights, comply with all applicablelaws and conduct their business ethically and responsibly.
We will not knowingly condone or contribute to adverse
human rights impacts caused by the actions of ourbusiness partners. When we become aware of an
adverse impact, we will engage to be part of the solution
to address the issue or dilemma, including seeking
to prevent or mitigate the adverse impact. We also
support our business partners in providing remedy
to the affected individuals.

Since 2010, P&G has tracked the performance andimprovement of key partner-related environmental
measures via the Supply Chain Environmental
Sustainability Scorecard. In 2017, we launched ourinaugural Supplier Citizenship Scorecard, which builds
on the strong legacy of the Environmental Sustainability
Scorecard and incorporates all five focus areas of P&G’s
Corporate Citizenship Strategy: Ethics & Corporate
Responsibility, Community Impact, Diversity & Inclusion,
Gender Equality and Environmental Sustainability.
Developing this new Scorecard allowed us to leveragea more holistic approach to understanding Citizenshipefforts in our supplier ecosystem that could allow
strategic collaboration while equipping our externalbusiness partners with resources that they can use toadvance their own Citizenship efforts so that we may
all be a force for good and a force for growth.
More than 120 of our strategic partners completed thescorecard, and the results were invaluable. Our partners
confirmed that they are actively engaged in theircommunities, with 87% of them having well-establishedinitiatives such as supporting children’s health andeducation, empowering women economically, protecting
the environment, fighting against hunger and poverty
and many others. More than 75% of our partners have a
documented responsible sourcing plan or are working
toward developing one, and more than 60% haveprograms to recycle, reduce and reuse potential
waste materials.

EXTERNAL BUSINESS PARTNER GUIDELINESOur Supplier CitizenshipScorecard tracks performanceand improvement of key partnerrelated citizenship measures.

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Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

21

Doing the Right Thingwith Our Supply Chain
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, ethicaland transparent supply chain. We are continuallyassessing risks in our supply chain and driving clarity
and resolution if needed. This is part of our desire to
be a force for good. We execute this vision by focusing
across the global business, with greater emphasis on
high-risk countries and spend areas. Our partnerships
with key NGOs and suppliers ensure we are focusing
on the most critical areas. This external input wasstrengthened by our mapping of our salient issues,
and we now have developed strategies to reduce risk

We assess and screen
partners and new vendors
through a robust third-party
risk management process to
identify and remediate top
risks before and after hiring.

and protect our environment and people who workin the supply chains.

We empower responsible supply chains througha supplier education and audit system. Our risk-based
program supports this effort by assessing partners
through third-party audits that identify and remediate
issues with labor standards, health and safety concerns,
environmental issues and business ethics. To date, wehave completed two waves of social audits with morethan 400 suppliers, with a third wave already underway.
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 system of business partners that isfully integrated and synchronized with P&G’s businessand values.

Introduction

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Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

22

Doing the Right Thingwith Our Supply Chain
Supplier Diversity
We are committed to growing and developing ourbusiness with diverse suppliers because we believethat a diverse group of business partners will out-

• Our strong Supplier Diversity program delivers
value to P&G’s key retail customers who supportand encourage diverse supplier inclusion.
• The adversity that diverse suppliers often face results

innovate and out-perform a non-diverse group of

in their ability to drive step-change innovation, andbusiness partners. Supplier Diversity is P&G’s programsome of our most innovative programs have been

to grow and develop supply-side business: globally

driven by our diverse suppliers.

with women-owned business, and in the UnitedStates with minority-owned; Lesbian, Gay, Bisexual,and Transgender-owned; disability-owned; and U.S.
Military Veteran-owned businesses. Supplier Diversity
is predicated on creating value in our business andvalue in our community. When we invest with diverse
suppliers, we not only strengthen our innovation and• 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 andare committed to continuing to purchase products
from companies like P&G that support diversity inthe supply chain.

We aim to reduce our environmental footprint
through partnership with our external partners. We

go-to-market capabilities but also touch and improve
the lives of the women and men who work in these

We seek to grow anddevelop relationships
with diverse suppliers
that will then create
value in our communities.

companies—and through them, their families and thecommunities in which they live and work.
Supplier Diversity is a competitive advantage for P&G.
Since we launched this program four decades ago, we
have developed economic inclusion for all business

Principally, we believe in the power of economic• Diverse suppliers outperform non-diverse suppliersin our formal Supplier Performance Development

reflects the diversity of our employees, consumers

Process surveys.

and stakeholders, our business grows and our

results in key metrics like hiring diverse employees
and engaging in community impact activities.

problems, driving innovation that is sustainable for boththe business and the planet. We are developing uniqueplans to optimize our supply chains that drive improved
circularity in water, waste and/or climate. This is linked
we will continue to be a force for good and a force

inclusion. When the ownership of our supply base

• Our diverse supply base delivers above-average

have connected a team of key suppliers to collaborate
with us to solve our supply chain’s most challenging

to P&G’s Ambition 2030 strategy that reinforces how

owners while delivering Total Shareholder Return inqualitative and quantitative ways.

Sustainable Innovation

communities thrive.

MORE DIVERSIT Y & INCLUSION INITIATIVES

for growth.
AMBITION 2030

Introduction

Ethics & Corporate Responsibility

Speaking Up
Our employees hold themselves and one anotheraccountable for operating with trust and integrity, forstepping up as leaders and owners of the business andfor balancing stewardship with a passion to win. We
are committed to creating a work environment that
fosters open communication and supports employees
in reporting potential violations. Employees andindividuals in our operations or extended supply chain
can report violations of the law or Company policies atthe Worldwide Business Conduct Helpline, which isstaffed by an independent third party 24 hours a day,seven days a week and includes, where permitted by
local law, an anonymous way to report concerns. P&G iscommitted to reviewing all allegations of wrongdoingwith trained teams who ensure thorough, impartial
and fact-based investigations. Proper investigation isessential to promoting a culture of integrity, reducing
the likelihood of incidents occurring and increasing
willingness to proactively raise concerns. It is an
important part of our commitment to prevent anddetect wrongdoing. Retaliation for raising concerns ingood faith is inconsistent with our Values of Integrity
and Trust and simply will not be tolerated.

Employees andindividuals within our
extended supply chain
and operations areencouraged to speak
up and report concerns.

WORLDWIDE BUSINESS CONDUCT HELPLINE

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

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Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

24

Stakeholder Engagement
We acknowledge that improving
transparency, respecting human andlabor rights and sourcing responsibly isan enormous challenge, and progress will
be made through a journey of collaborationand engagement with our stakeholders.
Thus, we seek meaningful collaborationand engagement with our stakeholders
to be a good corporate neighbor and to
improve lives in the communities where
we live and work.

Employees

Quotes from the Employee Survey:

Investors“Our PVPs and our employees are a bedrock
foundation for the Company. At P&G, thisis so deeply ingrained in our DNA that we
often don’t recognize it.”

We value our relationships with all our shareholders.

“David has hit the nail on the head about
straight talk, personal accountability andraising the bar.”Engagement with shareholders builds mutual
understanding and a basis for progress, and the
input we receive from them significantly impacts our
corporate governance practices. Senior management,
our investor relations team and subject matter experts
from the Company maintain a year‐round dialogue
with investors to gain their perspectives on current
issues and address any questions or concerns, andwe make our directors available for engagement with

“Our PVP. I love that we still care about thisand we always have the PVPs to count on
to guide our choices.”shareholders when appropriate. The Company’s top
100 institutional shareholders collectively own nearly
50% of the Company’s outstanding shares of common
stock, and we generally focus our proactive shareholder

Every year, we survey all employees globally—from

outreach efforts on these shareholders. We conductplant technicians to our office population—via the P&G

meetings with institutional shareholders in person,

Survey. Almost 80% of employees make their opinion

via telephone calls and one‐on‐one at conferences

count by responding to the survey, and their feedback

throughout the year. We also routinely respond tois extremely valuable in assessing what we do well as a

individual shareholders and other stakeholders who

Company and where we can improve, and action plansprovide feedback about our business.

are put in place. We also compare our results against
our external benchmarking group and find P&G scoringhigher than the average of our peer group on the
majority of our benchmarking questions—showing that
we remain an Employer of Choice versus competition.
Every year, the P&G Survey proves how ingrained our
PVPs are in the organization. Continuing to uphold andsafeguard our PVPs consistently is the top response to“What should not change about P&G?”

Our annual global survey helps
us assess what we do well,where we can improve andwhat should not change.

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Stakeholder Engagement
Consumers

External Business Partners

We are committed to providing products and services

We work closely with our external business partners tothat can help improve the lives of our consumers all overensure that our products are sourced responsibly. P&G’s

the world. In developing and marketing our products,

Sustainability Guidelines for External Business Partners

we adopt a “Consumer Is Boss” approach to ensure thatset our expectations with our supply base regarding

we delight consumers by launching only new products

Social and Environmental Responsibility. We actively

and product improvements that genuinely meet theirseek business relationships with partners that shareneeds. We actively encourage consumers to contact

these values and that promote high standards within

us because we want to hear about our consumers’

their own supply chains.

experiences with our products. We feel very privilegedthat consumers care enough about our products tocontact us.

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 thatprofits are generated where key business activities
take place. We are committed to the highest level oftax compliance. In doing so, we observe and adhere
to the tax law, the underlying tax policy intent, andthe disclosure and reporting requirements.

OUR POLITICAL INVOLVEMENT

EXTERNAL BUSINESS PARTNER GUIDELINESTA X PRINCIPLES

Authorities: Local – Regional – Global

CONTACT US

We are focused on meeting consumer needs in the
countries where we do business, while creating value forCommunities

our shareholders and continuing to be good corporate

Each P&G production facility has site-specific activities

citizens. Guided by our PVPs, we appropriately engage

to build appropriate and constructive relationships within the political process to ensure that the interests ofindustry associations, residential and business neighbors,

our employees, consumers and shareholders are fairly

action groups, thought leaders and news media.

represented at all levels of government around the

Depending on the cultures and interests of individual

world. We are committed to being transparent aboutcommunities, this can range from regular official

our political involvement globally, and our policies andmeetings, during which new information is shared orprocedures on appropriate contact with government

questions are answered, to more informal meetings.

officials prohibit bribery and any kind of improper
influence.

Non-Governmental Organizations(NGOs): Local – Regional – Global
P&G frequently enters into dialogue with NGOs tounderstand their concerns and cares. NGOs and our
engagement with an NGO can vary by area of interest(e.g., environmental, consumer, human rights) and bygeographic links (from local to global).

Principal Industry and Business
Associations
We hold membership in many industry andbusiness associations whose activities are related to

Our facilities engage withsurrounding authorities,
leaders, associations,residential and businessneighbors and media.

P&G is involved in thepolitical process globallyfor the interests of ouremployees, consumers
and shareholders.

the Company’s. These associations provide a forum for
us to promote and defend our interests in the broader
industry context while providing a lawful platform forjoint research, issue monitoring and sharing of bestpractices. Participation in business associations iscontrolled by Company policy to ensure such industry
activities have the right governance and oversight.

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Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Community Impact
Our brands touch the lives of nearly five billion people, and we are there when our products
matter more than ever. We provide the comforts of home in times of disaster and bring thepower of clean water to people who need it most. We focus where we can uniquely bringvalue and where our brands and people can make the biggest difference. Here are some ofthe heartwarming stories from this year.

VIEW HIGHLIGHTS

VIEW MORE STORIES

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Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

HIGHLIGHTSP&G Children’s Safe
Drinking Water Program
P&G is a company founded on cleaning expertise andinnovation. We provide products that help people
clean their clothes, floors, hair, teeth and babies. So
when one of our scientists discovered a way to clean
dirty water and make it drinkable, an idea was bornto help those nearly billion people who struggle withfinding clean drinking water every day. We launched
our Children’s Safe Drinking Water Program in 2004
and have worked with more than 150 partners aroundthe world to provide more than 14 billion liters ofwater to those who need it most. This simple-to-use
technology has been transformative for communities
around the world — keeping children and their families
healthy, able to pursue their educational dreams andhelping to provide economic opportunities for so many
people with just a bucket, a stick, a cloth and a P&G
Purifier of Water packet. This is improving everyday
life at its core. To celebrate World Water Day 2018, wepartnered with National Geographic to tell the stories
of Mary in Kenya, Veronika in Indonesia and Antonia in
Mexico, and the power of clean water to their families.

Since 2004, we haveprovided more than
14 billion liters of clean
drinking water.

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Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

HIGHLIGHTS

16 Years of Making
a Difference
In the UK, P&G has a long-standing partnership with In
Kind Direct. Founded in 1996 by His Royal Highness, The
Prince of Wales, In Kind Direct is the leading UK charity
dedicated to distributing donated consumer products
from manufacturers and retailers to UK charities working
at home and abroad. Since 2002, P&G has donated morethan $50 million worth of products which have benefited
more than 5,800 charitable organizations and wasawarded with a special recognition for ‘Greatest Volumeof Products Donated’ by the charity in 2017.

Since 2002, P&G has
donated $50 million worthof products in partnershipwith In Kind Direct.

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Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

HIGHLIGHTS

Hurricane Help
The southern U.S. and Caribbean were hit hard during
the 2017 hurricane season when hurricanes Harvey,
Irma and Maria brought widespread devastation to
Texas, Florida, Puerto Rico and multiple countries in
the Caribbean. Communities suffered tremendous
damage, and people were without basic comforts
for extended periods of time. It’s in times like thesewhere our products can mean the most. P&G, alongwith our partner Matthew 25: Ministries, deployed ourrelief efforts to multiple states in the U.S. and delivered
more than 2,000 personal care and cleaning productkits providing everyday essentials like Crest toothpaste,
Charmin toilet paper, Gillette razors, Secret deodorantand Pampers diapers. The team also washed and dried
more than 2,300 loads of laundry through the Tide Loads
of Hope program. Similar programs were deployed in
Puerto Rico, and P&G supported broader emergency
relief efforts throughout the Caribbean in partnershipwith organizations including Americares, International
Medical Corps, GlobalMedic and Save the Children.

We delivered basic comforts to thosein need with more than 2,000 disaster
relief kits filled with P&G products.

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Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

HIGHLIGHTS

Helping Close to HomeIn 1915, P&G helped establish the Cincinnati Community
Chest, which today is known as the United Way of Greater
Cincinnati (UWGC). UWGC impacts the lives of people in
10 counties across Ohio, Indiana and Kentucky. The
annual P&G United Way campaign provides support toreach bold goals like preparing children for kindergarten,
helping families achieve financial stability and ensuring
people lead healthy, quality lives with maximum
independence. This year, P&G employees, shareholders
and retirees donated $9.7 million to the organization’sannual campaign.

We donated $9.7 million
to the UWGC’s annual
campaign, helping thosein our Greater Cincinnati
headquarters community.

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Ethics & Corporate Responsibility

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Diversity & Inclusion

Gender Equality

Environmental Sustainability

HIGHLIGHTS

Not Your Average House
In Costa Rica, 564 tons of plastic waste is thrown away
every day, and only 14 of those tons are recycled — therest ends up in landfills or in our environment. Working
with Habitat for Humanity, we are taking that waste andturning it into homes. Through innovative technologythat enables a new method of construction based onrecycled plastic blocks, we are building homes that are
fireproof, anti-seismic, water and humidity proof andrequire no maintenance. More than 200 volunteers
helped build homes for two single moms — Rocio andCindy — and their families. Each of these homes uses
about seven tons of recycled plastic, and the construction
system has been approved by the highest-ranking
institute for building construction in Costa Rica.

More than 200 P&Gvolunteers helped build
homes out of recycledplastic blocks for two
single moms in Costa Rica.

We’re building homes with
Habitat for Humanity that use
about seven tons of recycledplastic each.

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Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Community
ImpactMessage from Marc Pritchard>

P&G Children’s Safe
Drinking Water Program>

Disaster Relief
Habitat for Humanity
Brand Programs

Latin America>

Europe>Asia Pacific>Greater China>

India, Middle East and Africa>

North America>

Employee Well-Being>

Awards & Recognitions

>

>
>
>

Environmental Sustainability

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Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Message from
Marc Pritchard“P&G has a long history of giving back to communities where
we live and work. It’s foundational to who we are as a Company.
It starts with our brands, which make life a little better every day.
And in times of need and crisis, our brands can have even greater
impact. Through disaster relief, providing clean drinking water andother global and local programs, we provide support where ourbrands and our people are needed most.
We invest in people and communities around the world because
it’s the right thing to do and because our brands and our Company
are well-positioned to help. We also know that when communities
are strong and thriving, businesses can grow. Our community
impact programs are a force for good and a force for growth.”

Marc Pritchard
Chief Brand Officer

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Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

P&G Children’s Safe
Drinking Water Program
Nearly a billion people live without access to clean
drinking water and as a company founded on cleaning
expertise, we’ve stepped up to do something about it. In
2004, we introduced the Children’s Safe Drinking Water
Program and since then, with the help of our more than
150 partners around the world, we’ve delivered morethan 14 billion liters of water to those who need it
most. With just a bucket, cloth, spoon and our Purifierof Water packet, we can help transform lives.
Each 4-gram packet has the power to clean 10 liters ofwater in just 30 minutes and packs the power of a water
treatment facility into a tiny packet. Having clean water
enables health, education and economic opportunity,
and we are well on our way to meeting our goal of 15
billion liters by 2020.
This year, we partnered with National Geographic and“In some parts of the world, we take for
granted the availability of clean water. People
in countries like Mexico, Indonesia and Kenya
struggle with finding clean water to drink.
And without clean drinking water, it’s muchharder to keep their children healthy, havethem get an education and provide a better
life for their families. Our goal in partneringwith National Geographic is to share thesestories about the power of clean water andto inspire others to make a difference andbecome a part of the solution.”– Marc Pritchard, Chief Brand Officer andCommunity Impact Executive Sponsor

created a documentary that tells the transformational
story of three women who were introduced to the P&G
Purifier of Water packets. You can view the 2-minutetrailer by clicking the link below. These videos weremade possible through the help of our partners CARE,

THE POWER OF CLEAN DOCUMENTARY
MARY'S STORY (KENYA)

ChildFund and World Vision.
VERONIK A'S STORY (INDONESIA)TWO-MINUTE OVERVIEWANTONIA'S STORY (MEXICO)Each 4-gram packet has thepower to clean 10 liters of waterin just 30 minutes.

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Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

P&G Children's Safe
Drinking Water Program
Our Family Care organization works with astrategic supplier, Fibria. Unfortunately, some
Fibria employees live in a place where there
is no access to clean water. So we partneredwith Fibria and provided clean drinking
water to their employees who live in thesecommunities, bringing clean water to those
who are part of our own supply chain.

Working with more than 150 valued partners, P&G isproviding more than one billion liters of clean drinking
water every year and continues to play a part to help
end the global water crisis.
To view the infographics with the survey data,
click below.
SURVEY DATA

To help bring awareness to the water crisis, we
conducted a survey in February. Survey findings
show that most U.S. consumers are concerned about
the safety of their drinking water, but do not know thatIn the last 25 years, 2.6 billion
people have gained access to cleanwater but there are still 844 million
people yet to reach.

approximately 1 in 10 people around the world lackaccess to clean drinking water. Survey findings further
highlighted that Americans are largely unaware of the
progress that has been made to date to address theglobal water crisis.
Nearly 70 percent of respondents believe that thecrisis has stayed the same or gotten worse, with almost
one in four saying that the problem has become muchworse. In reality, the global effort to solve the crisis ismaking progress. In the last 25 years, 2.6 billion people
have gained access to clean water but there are still 844
million people yet to reach by 2030 to achieve United
Nations Sustainable Development Goal #6.

Having clean water enables health,education and economic opportunity.

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Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Disaster Relief
P&G provided product donations and services in
response to more than 25 disasters globally, helping
millions affected by natural and humanitarian disasters,
working in collaboration with numerous disaster relief
partner organizations. These efforts were poweredby brands such as Always, Gillette, Oral-B, Mr. Clean,
Pantene, Tide, Vicks and others, and tens of thousandsof products have been donated to those in need aroundthe world. We have also provided more than $1 million
in monetary grants to partner organizations like theAmerican Red Cross, Americares, CARE, Direct Relief,

Resilience in the Face of Heartbreak
HarveyIn September 2017, a powerful category 4 hurricane
made landfall near the coastal town of Rockport, TX.
The devastation left behind from the storm was vastand overwhelming—cars crushed by uprooted trees,houses flipped over, telephone poles snapped liketwigs and debris spread across the city. Schools andbusinesses alike were forced to close for an extensive
period due to the level of damage.

GlobalMedic, Save the Children and World Vision to

The P&G Mobile Relief program, alongside our disastersupport immediate and ongoing response efforts.

relief partner Matthew 25: Ministries, arrived in Rockport

Globally, P&G responded to multiple disasters including
the 7.1-magnitude earthquake which hit Mexico City,
Morelos and Puebla states in September 2017. P&G
Mexico activated their emergency response efforts
including provision of products, P&G Purifier of Waterand other donations in collaboration with NGO partners
United Way Mexico, the Mexican Red Cross and CADENA.
Other global responses included the Chennai floods in
India, the 6.5 magnitude earthquake in China’s Sichuan

and witnessed the tremendous need firsthand as
residents began the difficult process of salvaging
possessions and rebuilding their lives. One couple,
after losing their house and everything that theyowned, planned to take their trailer on the roadto help others affected by disasters. Community
members banded together to set up food stations
and others spent the morning cleaning up seniorcenters before returning to clean up their own homes.

province, Mt. Agung volcano eruption in Indonesia

It's in this spirit that P&G is proud to supportand support of Syrian refugees in France, Germany

communities like Rockport by providing everyday

and Turkey.

essential products from brands like Always, Bounty,
Charmin, Crest, Gillette, Ivory, Mr. Clean, Oral-B, Pantene,
Pampers and Secret in addition to providing clean
clothes washed with care through the Tide Loads ofHope program.

Our response to thesedisasters included $1 million
in monetary grants topartner organizations.

36Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Disaster Relief
Irma
Not long after Hurricane Harvey, Hurricane Irma struck
the Caribbean and Florida. We again deployed our

P&Gers Respond When Disaster
Hits Close to Home

support efforts and in addition to Rockport, TX, theIn the last few months of 2017, California experienced

Mobile Relief team distributed P&G products in 14 cities.

some of the worst wildfires in history. In October,

The U.S. deployment to support those impacted byin Northern California, a series of 250 wildfires broke

hurricanes Harvey and Irma was one of the largest P&G

out, 21 of which became major fires that burned

mobile disaster relief efforts to date.

more than 245,000 acres. In December, a series ofMaria
Hurricane Maria was a powerful Category 5 storm,
causing catastrophic damage to several islands in
the Caribbean and striking Puerto Rico as a powerful
Category 4 storm, already heavily damaged by Hurricane
Irma. P&G employees in Puerto Rico showed amazing
resilience while coping with their own personal recovery
and lack of electricity. They worked tirelessly to not only
restore full operations in 60 days, but to support theirown community with free services like the Beauty &29 wildfires ignited across Southern California andled to widespread evacuations and property losses.
The wildfires burned more than 307,900 acres causing
traffic disruptions, school closures and hazardous air
conditions, and forced more than 230,000 people toevacuate. The P&G Mobile Relief team, powered by
Matthew 25: Ministries, helped respond with provisionof products and Tide Loads of Hope. P&G also provided
an emergency grant to Direct Relief, a local disaster
relief partner.

Grooming brand mobile relief unit “Nuestra Belleza

The Southern California fires also hit close to home,

Prevalece” (“Our Beauty Prevails”) and “Ace Viste a

directly impacting the P&G Oxnard plant and its

Puerto Rico de Esperanza” (“Ace Dresses Puerto Rico

employees, forcing more than 50 to evacuate theirwith Hope”), a mobile laundry unit. More broadly,

homes, with three losing their homes in the fire.

P&G provided immediate grant support to multiple

Despite intermittent power outages and reduced

organizations, including Americares, International

staff, plant management and employees worked to

Medical Corps and GlobalMedic. To meet the criticalensure that the plant continued to operate. In addition,need for clean drinking water, we worked with the U.S.

employees came together and organized efforts toGovernment, UN agencies, universities and NGOs tohelp one of their own sift through the burned remains

provide P&G Purifier of Water packets.

to salvage precious items. They helped assist with local
efforts by picking up products and delivering themto the Salvation Army and fire companies in the area.
These are true examples of P&Gers performing at theirbest during a very difficult time to make a differencein the lives of others.

37Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Disaster Relief
Partnering to Help
Matthew 25: Ministries is an international humanitarian
aid and disaster relief organization founded in 1991.

Venus. Since 2012, P&G and Matthew 25 have partneredon more than 50 deployments in response to hurricanes,
tornadoes, storms, earthquakes, tsunamis, flooding,droughts and wildfires across the U.S. and internationally,

P&G began donating small amounts of extra producthelping millions of people coping with the aftermath of

to Matthew 25 in 2004 — now, Matthew 25: Ministries

a catastrophic disaster.

is one of our largest corporate product donation
partners. In 2017, P&G donated 1.9 million pounds ofproducts which were distributed by Matthew 25 tomultiple destinations within the U.S. as well morethan 25 countries around the world.

In 2015, the program expanded to include the Tide Loads
of Hope Mobile Laundry Unit. The Tide Loads of Hope
Mobile Laundry Unit is designed to be an agile part ofMatthew 25’s disaster response fleet, providing laundry
services to emergencies, disasters and similar crisis

In 2012, P&G also began partnering with Matthew 25

events. Since its beginning in 2005 following Hurricane

on a mobile disaster relief program positioning P&G

Katrina, Tide Loads of Hope has washed more thanpersonal and home care product kits in advance of

68,000 loads of laundry for more than 50,000 families

natural disasters. Kits are packed by P&G employees

impacted by disasters across the U.S. and Canada.

and community volunteers and then distributed by
Matthew 25’s Disaster Response Team following midand large-scale disasters in the U.S. and internationally.
P&G brands represented in disaster kits include Always,
Bounty, Charmin, Crest, Dawn, Febreze, Gillette, Head &Shoulders, Ivory, Mr. Clean, Old Spice, Oral-B, Pampers,
Pantene, Secret, Swiffer, Tampax, Tide andIn 2017, we donated 1.9 million
pounds of products which were
distributed by Matthew 25:
Ministries to destinations in
the U.S. and around the world.

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Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Habitat for Humanity
P&G understands that improving lives
starts at home. Our partnership with Habitatfor Humanity shows our commitment toimproving homes and communities where
we live and work. Over the past year, P&G
and Habitat for Humanity worked sideby-side on projects in 17 countries in Asia,
Europe, Middle East, Africa, Latin America
and North America. Through our partnershipwith Habitat for Humanity, P&G employees
volunteered more than 4,000 hours to build
or repair homes, or complete neighborhood
revitalization projects. Throughout the world,
the goal was the same: help families realize
their dreams of homeownership or improve
the places they already call home.

This year, some activities included:
SingaporeP&G employees cleaned and repaired the homes of
elderly and disabled people and helped to transform
communities into vibrant and safer places to live.
EuropeEmployees helped to restore a refuge facility for womenand children escaping abusive relationships in London.
The project helped sixteen families on their journeyof recovery. There were also activities in Romania,
Poland and Hungary in addition to the expansionof the partnership in the UK.
Latin America
P&G employees volunteered to complete various homeand community improvement projects that included
improving local school buildings and repairing homes
and community building affected by natural disasters.
Also, P&G’s commitment contributed for constructing

P&G employees
volunteered more than
4,000 hours to build
or repair homes orcomplete neighborhood
revitalization projects.

wood stoves in homes of families in need to help them
prepare meals and provide heat in the winter.
North America
A Cincinnati P&G team volunteered to help build ahome and teams from P&G Canada helped build homes
in the Greater Toronto Area.

Gender Equality

Environmental Sustainability

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Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Brand Programs
Tide Loads of Hope
Tide Loads of Hope provides mobile laundry units andlaundry services to help families impacted by disaster.
This year, the program cleaned more than 3,800 loadsof laundry, helping more than 1,700 families during
five deployments.

We cleaned more than 3,800
loads of laundry, helping morethan 1,700 families during five
deployments.

“We have no electricity. It’s hard at night;
it’s scary. You look out and it looks likeeverything is dead; the town is dead. You
have hope for the morning and when you
wake up and see the light and give thanksthat you made it to the morning. And we go
on. The guys and girls from Tide are amazing.
It is just a blessing to be able to do thisbecause clean clothes lift our spirits, it tells
us that everything is going to be OK. You
are revitalized; you feel better; all around you
feel better. We are going to survive, we aresurvivors…This Loads of Hope, it gives hope.
It really does!”– Jenny, Hurricane Harvey flood victim

Safeguard
2017 marked the 10th anniversary of Global
Handwashing Day, and we believe it is the social
responsibility of Safeguard to help children have ahealthy future. Safeguard promotes the correct handwashing habits to Chinese families through an annual
Global Handwashing Day campaign. So far, Safeguard
has carried out the school health educational program
nationwide, providing hygiene educational courses
in 25 provinces for more than 22 million primaryschool students.

Safeguard provided
hygiene education
courses in 25 provincesof China for more than
22 million students.

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Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Brand Programs

P&G Pampers Preemie
Size P-3 diapers help
premature infants in theirdevelopment.

Pampers Preemies

Dawn Ducks

Pampers has been dedicated to the happy, healthy

This year, Dawn marked the 40th anniversary of its

development of babies since our very first diaper morelegacy wildlife campaign by hosting a ground-breaking

than 50 years ago. When nurses asked us to design acelebration to spotlight and honor the impressive

diaper for babies as tiny as 800 grams, the people atnumber of birds and marine mammals the brandPampers were inspired to create our best diaper yet forhas helped wildlife organizations save, protect andthe most vulnerable babies. Other available premature

rehabilitate throughout the past four decades.

diapers do not conform to a premature baby’s shape

To celebrate helping save wildlife, Dawn, wildlife

and proper positioning for optimal development.

activist and actress Kate Mara, wildlife veterinarian

New Pampers Preemie Size P-3 diapers are designed

Dr. Evan Antin, International Bird Rescue and The

to minimize disruption to help with sleep, positioning

Marine Mammal Center rescue workers shared theand medical care for premature infants.

magnitude of helping clean and rehabilitate more

Pampers in Argentina was recognized on Preemie
Day for supporting pregnant and new moms with
the Pampers Newborn national program in morethan 200 hospitals.
In South Africa we donated more than 1,408,000
preemie diapers to public hospitals and trusts thatcare for premature babies.

Pampers UNICEF
Pampers has partnered with UNICEF since 2006 and,through the “1 pack = 1 life-saving vaccine” program,
Pampers has helped UNICEF eliminate maternal andnewborn tetanus (MNT) in 24 countries. Nearly 53 million
women are still at risk from this fatal but preventabledisease. Our goal is to work with UNICEF in their efforts
to eliminate MNT in EVERY country by 2020.

than 75,000 birds. In addition, because of Dawn’s
concentrated product, less plastic is used in packaging
and more can be shipped in less space, reducing
greenhouse gas emissions.

41Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Latin America
Children's Safe Drinking Water
P&G Children’s Safe Drinking Water (CSDW) Program

Coming Together After Mexican
Earthquakes

continues to make a meaningful difference by providing

On September 7 and 19, 2017, Mexico was struck byclean water to communities in rural areas and during
emergency situations in Latin America. When families
are forced to drink water from contaminated sources,
the impact to daily life is significant. Health suffers,
children miss school and families struggle to earn stable
incomes. Working with more than 20 regional partners
in Mexico, Brazil, Panama, Costa Rica, Venezuela,
Colombia, Peru, Chile and Argentina, among othercountries, we are contributing to the worldwide effort toachieve UN Sustainable Development Goal #6—cleanwater and sanitation for all.

two earthquakes affecting six states in the country.
The Mexico earthquakes damaged more than 170,000
homes from which almost 60,000 were devastated.
P&G partnered with CADENA, United Way Mexico and
Red Cross to support families in Mexico City, Estadode México, Morelos, Puebla, Oaxaca, Guerrero andVeracruz. Our brands made a difference when they
were needed the most. We provided thousands of
personal care family kits and Children Safe Drinking
Water kits assembled by P&G volunteers. We deliveredaround $450,000 in in-kind donations, the equivalent
to six 53-foot-long trailer trucks! All our sites opened
their doors to become collection centers for tools,
medical supplies, food and clothes, delivering morethan three tons of supplies. For the first time in Mexico,
we activated the laundromat, offering to share the loadwith our volunteers. For two weekends, we washed 350
loads of clothes for families living in camps and shelterswith support from 68 volunteers.

Children’s Safe Drinking Water Kits
On June 15, employees from the Milenio Shave Care
Plant assembled 1,675 Children Safe Drinking Water kits
in one hour — record time — thanks to the participationof 129 passionate volunteers.

We provided thousands of personalcare family kits and Children’s Safe
Drinking Water kits assembled by
P&G volunteers in response to
two earthquakes in Mexico.

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Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

43

Latin America
Born Learning
One out of every five children in Latin America lives inextreme poverty. Physical inactivity, poor diet and thelack of good oral health habits have become major risk
factors for the health of school-age children. The best
prevention is the one that begins in early childhood andcan help mitigate the adverse impact of toxic stressduring this phase.
The Born Learning Program, a United Way initiative
supported by P&G, benefited approximately 40,000
children in vulnerable situations in Latin America during2017. The platform aims to promote physical, social,emotional and cognitive development of children undersix years old. The program has a Healthy Environments

The Healthy Environments model has been implemented
in nearly 500 early child education centers in sevencountries in Latin America, enhancing knowledge andtraining for 700 teachers. In the last three years, P&G
has contributed to improving the development of about
270,000 children, training 15,000 educators and raisingawareness about the importance of early childhoodcare for more than 67,000 parents and caregivers.

The Healthy
Environments model
has been implemented
in nearly 500 early childeducation centers.

model which aims to help children grow up in healthyand safe environments, promotes self-care habits,
empowers children in safe-care and connects parents
to nutrition and health prevention services.

The Born Learning program is executed in Costa Rica
through a public-private partnership between P&G,
the Ministry of Health, United Way and Paniamor.
In October 2017, the module was formally delivered
to the Ministry of Health for its institutionalization andexecution in public daycares called CEN-CINAI.

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Latin America
Helping in Puerto Rico

Guatemala Volcanic Eruption

In the aftermath of Hurricane Maria, rebuilding efforts

Guatemala's most violent volcanic eruption in more

required contributions from many. With help fromthan a century happened on June 3rd. The Fuego Volcano

the P&G Global Fund and local funds, we were able toin Guatemala explosion affected more than 1,714,000

donate $80,000 to Habitat for Humanity in Puerto Ricopeople, and more than 12,000 people had to evacuate.

to help build homes with those impacted. To keep theteam spirit alive, the Ace detergent program—Tu Equipo
Brilla—donated new uniforms to several sports teamson the Island. And we also contributed to the local

P&G, in alliance with United Way Guatemala, helped
3,615 people by delivering P&G products and P&G
Purifier of Water packets to shelters.

foodbank—Banco de Alimentos de Puerto Rico—with
product donations.
Employee volunteer work, led by our Culture Network,is planning volunteering activities throughout the year
to continue helping Puerto Rico.

The Ace detergent program
donated new uniforms to sports
teams on the island.

44Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

EuropeDelivering the Comforts of HomeIn June, we launched a new series of short films as

Connecting Mums and Midwives
to Say Thank You

part of a new UK campaign to showcase our 16-year

Despite their vital role, one in three midwives admits

partnership with In Kind Direct, the UK’s leading charity
in product redistribution. Our #ComfortsofHome
campaign explored the key role having access toeveryday essentials plays for charities across the UK
The films showcase the role we played in providing
quality branded products to help charities tackle
hygiene and poverty and help provide dignity tothose in need. Check out the video below.

IN KIND DIRECT SHORT FILMS

they feel underappreciated and undervalued. We
found that while the majority of UK mums agree that
it is important to thank midwives, just over half (58%)
actually do. Pampers therefore rallied parents acrossthe UK to encourage them to say #ThankYouMidwife.
For every #ThankYouMidwife shared on social media,
the campaign donated £1 to the Benevolent Fund of
the Royal College of Midwives. Pampers also helped
renovate midwives staff rooms in 10 hospitals as anotherway to say thank you for the work they do. See theresults of Pampers #ThankYouMidwife Makeover at

Our partnership also goes beyond products. P&G is a

Princess Anne Hospital.

member of In Kind Direct Board and our employees
have been involved in volunteering at charity

PRINCESS ANNE HOSPITAL’S MAKEOVER

beneficiaries as well as other fundraising events.

“Over the last 16 years donations of highquality, branded products from P&G to In
Kind Direct have benefited thousands of UK
charities and not for profit groups working
at home and abroad. Our recent award isrecognition for the outstanding support thatP&G has provided and reflects the positive
impact that the partnership has had, andcontinues to have, in disadvantaged
communities around the UK and overseas.”– Robin Boles LVO, CEO, In Kind Direct

For every #ThankYouMidwife
shared on social media, thecampaign donated £1 to the
Benevolent Fund of the Royal
College of Midwives.

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Diversity & Inclusion

Gender Equality

Environmental Sustainability

46

EuropePartnerships with Purpose
Across the UK, we have partnered with three leading
retailers in communities throughout the country.
Together we have raised more than $442,000.

Supporting Cancer Research with Tesco
Cancer Research UK is one of Tesco’s three
charity partners. 2018 was the second year P&G
has partnered with Tesco to support the charity
through a one pack = one donation program acrossSupporting the UK Armed Forces, Past and Present,

all beauty, baby and toiletries products. This year,

and Their Families

we raised $155,000.

To support the thousands of families that help makeup the 6.7 million people in the UK’s Armed Forces
community, we partnered with The Royal British Legion
and Poppyscotland to launch our “Help us, Help them”
campaign exclusively at Sainsbury’s. When consumers
purchased P&G health and beauty products during
October and November, they triggered a donation

P&G Volunteers Help Change Lives
P&G expanded its partnership with Habitat for Humanity
in the UK and are volunteering to help refurbish a refugein London, creating a safe environment for women andtheir children to escape abusive relationships.

to the charities. We enlisted UK TV presenter Helen
Skelton to share the campaign and encouraged
families across the country to get involved and#HelpUsHelpThem. Together, we raised $115,000.
Feeling Super for Marie Curie

We partnered with threeleading retailers through a
one product = one donation
campaign, raising morethan $442,000.

P&G and Superdrug have partnered since 2015 tosupport the retailer’s corporate charity partner, Marie
Curie, through a one product = one donation campaign.
Fronted by long-term ambassador and celebrity mumof two, Frankie Bridge, our #FeelSuper campaign has
raised more than $632,000 for Marie Curie to date. Thisis equal to more than 25,000 hours of expert care andsupport from Marie Curie.

Lifetime Dental Habit Change
Kids usually don’t like to brush, and when they doso, they sometimes don’t do it well. This is probably
the reason why, in Israel, many children reach third
grade with cavities. In order to improve oral health,Oral-B in Israel has launched the Oral-B Brushing
Kit: a subsidized power brush and an educational
book targeting every three-year-old. The brushingrecommendation is in collaboration with Israel Gums
experts association. Within the first year, the program
has reached 48% of three-year-olds in Israel.
The program is reapplied today in European countries
such as Serbia, and in advance process of adaption in
Turkey, the UK and Germany.

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Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

47

EuropeEducating and Helping Parents
Develop Healthy Habits for their
Kids and Improve their Oral Care
Oral-B is committed to helping young parents andchildren develop good dental habits for life. Oral-B has
created an educational toolkit in association with the
University of Leeds designed to help parents help their

Coming Together in the Community
Across Northern Europe, our employees are making a
difference in the communities where they live and workthrough P&G’s ongoing ‘Community Matters’ program.
All our sites have dedicated community programs
supporting local charities where people can help
fundraise and volunteer.

children establish healthy dental habits. It focuses on

Our Cobalt site, together with our Newcastle Innovation

how to brush and make it fun, how friends and family

Centre, partners with The Community Foundation

can support parents and how healthy eating can protect

in Tyne & Wear and Northumberland. Since the fundteeth. The materials are for dental professionals andstarted in 1995, we’ve been able to secure more than $1

designed to support their conversations with parents

million worth of donations for 500 local charities andof young children. In 2018, already 2,000 kits have been

grassroots projects.

We’re helping makebrushing and eating
healthy and fun forboth young parents
and their children.

with two goals—collect litter from the beach alongside
Gestes Propres and TerraCycle (to be used in the
production of Head & Shoulders beach bottles) and help
reopen a natural site that belongs to Conservatoire dulittoral by clearing wetland shrubs and non-native species.
SOS Villages d’Enfants also participated. P&G employees
helped the children build insect hotels, which they
proudly brought back to their SOS villages. This event
helped raise awareness and answer questions about
the SOS Villages d’Enfants and how P&G actions
positively support the SOS Villages.
As a result, 900 liters of non-recyclable waste wasremoved, 480 liters of recycled waste was collected,

provided to dental professionals, enabling 80,000
conversations.

“All in to act for the planet” was the theme for the day

60 liters of rigid plastic was put back into the Head &France Solidarity Day

Shoulders bottle production line, eight insect hotels were

Our P&G offices celebrated their ninth French Solidarity

built and 80 employees gave back to their community.

Day with a focus on our new 2030 environmental goals.
Approximately 80 multifunctional participants trekked
two hours from the general office to the seaside at theConservatoire du littoral.
The Solidarity Day focused on advancing four
partnerships: Conservatoire du littoral/Coast Protection,
the public body under the Ministry of Ecology that our
P&G France Foundation for the Seashore Protection
has supported since 1992; Gestes Propres, Clean Europe
member and P&G France partner since 1991; TerraCycle,
our Head & Shoulders beach plastic bottles partner; andSOS Villages d’Enfants, a local children’s home we havesupported since 2014. Twenty children from four French
SOS Villages d’Enfants joined us.

We collected 60 liters of rigid plastic
that was then put back into our
Head & Shoulders product line.

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Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

EuropeP&G Turkey received Red Crescent
Platinum Award

Belgian employees give backduring their Solidarity day

This year, we donated more than $477,000 worth of P&G

Employees gave back to the community by helping

products to the Turkish Red Crescent. For our continuous

an entire day at different social organizations and NGOs

donation efforts, we were awarded two gold medals

in Belgium. Activities included preparing a home-madefrom the Turkish Red Crescent last year, and this year

meal for the homeless in Brussels, giving the elderly

we received a platinum award presented by Turkish

an active and fun day and wrapping birthday gifts for

President Recep Tayyip Erdogan.

children and mums. Since our first solidarity day in 2016,
we have made a difference for more than 5,000 people,
including homeless, elderly people, refugees, children

We received one platinum
award and two gold medals
for our work with theTurkish Red Crescent.

in need and children with disabilities.

Belgian employees help Mariam’s
wish come true
Mariam, facing a serious illness, had one wish—to be

P&G Belgium helps people in needthrough product donation
We have been supporting Goods-to-Give, a Belgian
NGO collecting surpluses of non-food stock, since 2013.
We have donated almost one million P&G products,
reaching more than 116,000 people in need through134 social organizations. To give our collaboration an
extra boost, we also assembled 5,000 Mother Day’s

CEO of a big company for a day. On May 24, she took
over the role of CEO at the P&G Brussels Innovation
Center where she started the day with a meeting,followed by a visit to the perfume lab. Mariam learned
how perfumes are made and even developed her own
personalized Lenor bottle and fragrance. And thanks
to charity events organized by our employees, weraised money to make three more wishes come true
via Make-A-Wish.

gift and “hygiene” boxes for mums in need.

P&G Brussels Innovation Centergave Miriam her wish—to be CEOof a big company for a day.

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Diversity & Inclusion

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Environmental Sustainability

49

EuropePampers Donated 5,000 Newborn
Starter Kits to Young Families
and Mothers
In Austria, 24% of children ages 0–5 and 22% of women
live in poverty. Pampers already partnered with Caritas(#1 charity organization fighting poverty in Austria)
to support low-income families, donating two trucksof diapers worth $80,000. We know that young, lowincome families require more holistic support so wepartnered with Caritas & BIPA (#1 drugstore in Austria)
to set-up a donation campaign for Newborn Starter
Kits. As part of the starter kits, families are not only
provided with diapers, baby clothes and baby foodbut also receive counseling and support. Consumers
supported the campaign via the purchase of Pampers
diapers, donating $0.57 for starter kits with every packpurchased. The progress was communicated in nearreal-time via a donation counter on the website aswell as on the cash receipts, showing the individual
contribution of the shopper. We reached our goal of
5,000 Starter Kits within one month, and the program
has become part of one of Caritas’ ongoing campaigns

Ausonia has partnered with
the Spanish Association
Against Cancer for morethan 10 years.

to raise awareness for young families. The campaign
is supported by many public figures including Austria’s
first lady.

Spanish Red Cross
Health and hygiene are core to our business but are also
critical for those who need it the most. Oral-B partneredwith the Red Cross in Spain to enable families andchildren in need to have access to proper oral healthcare, improving their overall present and future wellbeing. In just the first year, the effort benefited nearly
200 children and more than 100 families.

Doubling Efforts Against
Breast Cancer
Ausonia has partnered with the Spanish Association
Against Cancer (AECC) for more than 10 years toincrease the awareness and financial investment
to strengthen the battle against breast cancer. Thisdisease affects one out of every eight women in Spain.
Thanks to the overall investment in research, social
awareness and early diagnosis, Spain has increased its
survival rates by 1.4% and chances of survival five years
from diagnosis is now 83% — 15% better than 20 years
ago. Ausonia’s commitment to women was recognized
by Her Majesty the Queen of Spain, Doña Letizia.
We are also an active member of STANPA (National
Cosmetic and Perfumery Industry association) anda supporter of its program “Ponte Guapa, te Sentirás

We created 5,000 Starter
Kits for young families
and young mothers that
also included counselingand support.

Mejor” (“Beauty will help you feel good”), which helps
women fight breast cancer by strengthening theirself-esteem through beauty. Every year, Olay products
are part of the beauty kit distributed by the program
to women in 28 hospitals across Spain during the
program’s beauty workshops to cancer patients.

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Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

50

EuropeCreating Homes for Children

Making People Smile

Sharing a Smile in Italy

In Spain, P&G has partnered with Aldeas Infantiles

Supporting and educating the professional dental

Families of children affected by rare genetic diseases

SOS (SOS Villages) for more than 10 years to provide

community is one of our commitments to communities.

now have more hope thanks to Telethon’s research.

the comforts of a home to children in need. This year,

Through www.dentalcare.co.uk, a P&G-supported portal,

AZ Ricerca and Vanessa Incontrada have decided toin addition to the ongoing Company and employees’

we offer the dental professional community scientificsupport Telethon’s efforts in by encouraging Italian

donations to improve their homes, P&G volunteers

studies, exchange and education courses providing

people to donate smiles to children affected by rare
genetic diseases and to their families. Every smile

visited the villages to create awareness among thethem opportunities to stay abreast of key research andchildren and their families on the importance of a proper

educate their patients on oral health conditions, dental

is converted into a donation to Telethon. This year,

oral hygiene and training on how to improve it.

procedures and proper oral hygiene techniques.

Oral-B supported the charity campaign via an in-store

Approximately ten percent of families in Germany withchildren have incomes that lie below the poverty line.
Oral-B is committed to making a positive contribution
to these underserved communities through volunteer

A Click Against School Drop Out
We partnered with Save the Children and Amazon in
Spain and Italy to fight against school dropout and thecontributions and collaborating with key partners like
RTL, a German TV station, and its annual Spendenmarathon, which is a fundraiser that raises money forchildren in need.

consequences of such action. Spain has the second
largest dropout rates in the European Union and data

DENTALCARE.COM

confirms that the majority of the poorest children in
the country have abandoned their education at an earlystage. Italy is facing a similar situation. Thanks to theSave the Children partnership and to the engagementfrom consumers, Save the Children educational support
program is being strengthened, benefiting children
with more than 26,000 hours of education acrossboth countries.

Habitat for Humanity – Working
Together to Build Homes
Leveraging a corporate grant, employees in Hungary
and Poland donated more than 500 working hours torenovate a rental apartment, a facility for those withintellectual disabilities and apartments for those in
need. Not only does this give back to the community,
but employees feel a sense of pride being able to help
their neighbors.

campaign and as social activation, donating morethan $170,000.

P&G Italy supported theDonate A Smile campaign
with an in-store promotion,
donating more than$170,000.

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Asia Pacific
Helping in Vietnam
P&G Vietnam continues to provide strong support

P&G Builds Communities with
Habitat for Humanity

to the most unprivileged communities across the

We continued our long-term partnership withcountry through several programs. The Children’s
Safe Drinking Water Program in Vietnam is done inpartnership with the Vietnam Red Cross, and we havea three-year agreement focusing on the six disasterprone provinces of Vietnam. We provided nine million
water-purifying packets, equivalent to 90 million liters ofclean water, impacting the lives of 200,000 households.
On World Water Day, our celebration coincided withan event in An Gian province with representation from
the Ministry of Health, local authorities, Red Cross
and also media to raise awareness and educate about
the importance of clean water for the health of thecommunity. This included training at a primary schoolon how to use the water-purifying packets.

P&G CSDW is partneringwith Vietnam Red Cross
to bring clean water to six
disaster-prone provincesin Vietnam.

Supporting an Australian Foodbank
We donated 21,500 cases to an Australian foodbank
this year to help those suffering the effects of natural
disaster or financial hardship.

Habitat for Humanity with multiple volunteer
events across Asia Pacific:
Indonesia
72 P&G volunteers built six houses just in time with
six families celebrating Ramadan.
Singapore
63 P&G volunteers cleaned houses with the elderly
and rejuvenated community spaces in an island-wide
movement, “Home Sweep Home”.
Australia
5 P&G volunteers flew to Northern Vietnam to help build
homes and raised more than $16,000 for other families
to be able to get decent housing.
Philippines
P&G employees and summer interns helped build
Bistekville 5, a Habitat village, which has more than
200 families.

P&G volunteers,
employees, and interns
helped construct or clean
homes and raise money tohelp families get housing.

Environmental Sustainability

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Diversity & Inclusion

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Environmental Sustainability

Asia Pacific
Skills-Based Volunteering Helps
NGOs Help Others
Since 2013, P&G Asia Pacific’s Beyond Borders SkillsBased Volunteering Program has helped non-profit
organizations overcome their biggest challenges by
having P&G employees share their expertise for free.
This Skills-Based Volunteering Program redefines how
corporations like P&G can go beyond donating money
to sharing knowledge.
P&G in the Asia Pacific region is a pioneer in theindustry, offering skills-based volunteering opportunities
including P&G Pro-Bono School (a half-day boot campfor non-profits), Consultation Project (small groupsessions between P&G volunteers and one non-profit
over four months), Sabbatical with UNICEF (full-timework project with UNICEF for three months), andBoard Matching Program (P&G Senior Leaders being
appointed to the Advisory Board of influential non-profit

P&G APAC’s Beyond Borders
Skills-Based Volunteering
Program helps non-profit
organizations go beyond donating
money to sharing knowledge.

Bangkok Plant Giving Back
to Society

organizations). The program’s breadth and flexibility

Our Bangkok Plant Giving Back to Society program

make it not only easy to get involved, but also moreaims to help the local community by focusing on two

meaningful to employees. This Skills-Based Volunteeringschools, two child development centers, one hospital,

Program has become a beacon for employees, inspiring

two foundations and one community group by helping

them to make a difference in society by leveraging

to provide these organizations with clean clothes.

what they are best at! This year alone, more than 150
P&G employees volunteered their time and expertiseorganizations.

P&G Korea Committed to a Better
Today for Better Life

This program was recognized externally, receiving

P&G Korea made an Memorandum of Understanding

to provide free consultation to more than 30 non-profit

American Chamber of Commerce in Singapore CARESAward—for the third year in a row.

with Seoul’s Children’s Hospital to create restinglounges, a kids’ library, and baby feeding rooms at thehospital. This hospital specializes in helping children
who suffer from rare diseases or developmental delays.
We are working to help make a better day and a better
life for families during their stay at this hospital.

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Greater China
Hope School Students on
China’s Most Prestigious Stage

This year, Crest and the China Youth Development

P&G China, China Youth Development Foundation

Foundation established the Smile Fund, aiming to bring(CYDF) and the National Centre for Performing Arts
(NCPA), the most prestigious national theatre in China,
announced a three-year corporate social responsibility
plan. P&G and CYDF will co-sponsor NCPA’s annual
International Children’s Drama Season from 2018
to 2020. In return, the NCPA will include more P&G

Smile Fundoral care education to the children in rural areas. From
December to May, we went to 10 Hope Schools in six
provinces which helped more than 3,300 children
to smile brighter. In the coming year, the “Smile Fund”
will be implemented in more Hope Schools, helping
to spread smiles.

Hope School students in the Children’s Drama Season
productions. This program is the first of its kind in China
to use the arts to engage and empower kids in need.
During the first year, 28 children from one of P&G
Hope Schools performed on the stage of NCPA. A
sellout audience of 800 enjoyed the performance, which
also commemorated P&G China’s 30th anniversary.
To extend the art outreach, P&G China also started
three-year “drama in education” teachers’ training,equipping rural teachers with this innovative approachto teaching children how to express their abilities,
imagination and creativity.

10 Hope Schools, reaching morethan 3,300 children, were taught
about oral care.
P&G China began a three-year
corporate social responsibility plan,
which included P&G Hope School
students given more access to the
National Centre for Performing Arts.

Introduction

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Community Impact

Diversity & Inclusion

Greater China
20 Years of Hygiene Education
The P&G China school program was launched in 1997 to
help Chinese children and young girls develop hygiene
habits early in life so they can grow up healthy andhappy. It consists of handwashing, dental hygiene andmenstrual education classes. To date, the program has
provided nearly 250 million health education toolkits,
benefiting 145 million children from more than 20,000
primary and middle schools across 200 cities in China.
As our China school program moves into its 21st year,
our mission is moving beyond the material needs ofPampers Helping the Most
Vulnerable Babies
Pampers partnered with neonatal intensive care unit
(NICU) nurses to specially design smaller diapers forpremature babies. Pampers has donated 400,000
diapers to 17 hospitals in China thus far, helping morethan 1,000 premature babies while they are treated in
the NICU. In June 2018, we launched the Preemie videoof “Long Awaited First Touch” to call public attention
to premature babies and their families. The video
generated three million views in just two days.

the students to their health, spiritual, social and culturalneeds, as well as addressing the shortage of quality
teachers and the growing issues of rural “left-behind”
children whose parents are forced to leave their families
and work in the city to earn a living.

Since 1997, P&G has
provided 250 million
health education
toolkits across 200
cities in China.

Pampers has donated400,000 diapers to 17
hospitals in China.
PREEMIE CHINA VIDEO

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Diversity & Inclusion

Gender Equality

Environmental Sustainability

55

India, Middle East and Africa
P&G Shiksha

increased to 70%! Similarly, there was more than a

P&G India’s signature community impact program,
P&G Shiksha, in partnership with NGOs, has built andsupported approximately 1,800 schools across thecountry, which is an increase of more than 300 sincelast year, helping more than 1.4 million children.
Since 2005, P&G Shiksha has empowered consumers
to help contribute towards the education of underprivileged children through their brand choices. We
share a part of the sales towards Shiksha, resulting
in a cumulative donation of more than $10 million forbuilding new schools, providing critical infrastructuralamenities at existing schools and reviving non-operational
government schools. During the year, Save the Children,in partnership with P&G Shiksha, has continued toempower marginalized girls through holistic education.

P&G Shiksha in partnershipwith Education Initiatives andthe Government of Rajasthan
implemented a computer-basedlearning program, Mindspark,that improved learning levels
two-fold compared to thecontrol group.

P&G Shiksha has donatedmore than $10 million
towards educationof the underprivileged.

two-fold increase in the percentage of children who
were able to do basic arithmetic after our intervention.
We also identified “Early Childhood Education” as a key
opportunity area in the educational landscape of thecountry. We focus on improving the motor, cognitive,social-emotional, pre-language and pre-math skills inchildren before they enter the first grade.
Two years ago, P&G Shiksha forayed into impacting
learning levels via digital learning. P&G entered intoa partnership with Education Initiatives (EI) and theGovernment of Rajasthan to implement Mindspark,a computer-based adaptive learning solution that
integrates pedagogy, teacher instruction and a learning
management system to help students learn mathematics
and English. The tool analyzes the learning levels of thestudents in language and mathematics by presenting
them with questions in increasing level of difficulty. On
answering incorrectly, the student is provided a simple
or detailed explanation, or is redirected to questions
that strengthen the basic understanding. The program
was implemented in 30 government schools in Rajasthanwhere more than 6,700 students spent more thanA key area of our intervention is Remedial Learning

10,000 hours learning using Mindspark. Post intervention,

and Early Childhood Education. We have partnered withthe learning levels among students using Mindspark

Pratham Education Foundation to improve the learning

improved two-fold compared to the control group.

outcomes and bridge the existing gap between

The tool also provides teachers with information on thecurrent and existing learning levels. The results were

progress and learning levels of students which is usedphenomenal; we reached out to more than 670 schoolsfor effective classroom management and instruction.

and more than 24,000 children and saw the learninglevels in the schools rise at the end of the year following
our interventions. Before the intervention, only 20% ofchildren in these schools were able to read and write
as per their curriculum level—after our invention, thisIntroduction

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Environmental Sustainability

India, Middle East and Africa
P&G Oral Care is Committed
to Improving Oral Hygienein Rural Kenya
P&G’s Oral Care Professional organization teamed
up with the University of Michigan to work on a
joint initiative that would help improve oral hygiene
practices among children in rural Kenya. Fewer thanP&G and HOPE
P&G’s partnership with Health Oriented Preventive
Education (HOPE) and READ Foundation has provided
quality education to more than 2,500 underprivilegedchildren in Karachi, Thatta, Islamabad and Muzaffarabad
this year. Girls constitute around 55% of the students at
the P&G-HOPE and P&G-READ Foundation schools.

1,000 dentists serve the 44 million population of Kenya,
from the far reaches of the bush to the vast expansesof the country’s capital Nairobi. Dental hygiene is ararity outside privileged urban regions. Tooth decay is
the most common chronic disease of childhood. Oralhygiene was taught to more than 1,000 children aged
4-9 years, as well as their teachers. In total, the teamtreated more than 740 children and addressed morethan 1,600 cavities. For many of the children, this wastheir first engagement with a dentist.

CSDW in Pakistan
P&G announced Year 4 of its partnership with
METRO Cash & Carry and Health Oriented Preventive
Education (HOPE) via the P&G Children’s Safe Drinking
Water Program to disaster-struck communities inPakistan. Through this program, we have provided 11
million liters of clean drinking water during the year,
benefiting around 50,000 people across Pakistan. It
also made available more than four million liters of clean
drinking water to families in Karachi during the summer.

The P&G Oral Care Professionalteam taught oral hygiene andtreated 740 children and morethan 1,600 dental cavities.

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57

India, Middle East and Africa
Funfest Pakistan
Employees continue to spend time with children
at the SOS Village in Karachi, giving them a sense of
belonging. This year, more than 50 P&G employees
endeavored to spread cheer and happiness by

Employees stocked
the fridge with drinks,
packaged foods andfruits to support lowincome workers.

creating a memorable day for around 145 children
through the highly anticipated P&G Funfest event.

Providing Books to Those in NeedP&G in the Arabian Peninsula has continued its
partnership with the Abu Dhabi-headquartered LuLu
Hypermarket and Dubai-based charity Dubai Cares
to provide books for thousands of children in the
Middle East region. Supported by the Mohammed Bin

Started in 2016, the concept of the Ramadan Sharing

Rashid Global Centre for Endowment Consultancy,

Fridges gained traction online, and people across Dubai

the ‘Brands for Education’ campaign has been runningin the United Arab Emirates began to set up and stock

for two years and has raised more than $75,000 for

Caring for Our Newest
Members of Society

fridges placed throughout the city. Funded by thebooks through an in-kind donation from P&G for every

Arabian Peninsula selling and marketing organization,

consumer purchase from LuLu Hypermarkets during

The first 1,000 days of life—between a woman’s

the first-ever P&G Sharing Fridge was placed in an

the campaign.

pregnancy and her child’s second birthday—is a uniquewindow of opportunity. The right nutrition and careindustrial area near the Dubai General Office, and it
became a cause the whole office supported. Employeewith drinks such as juices, soda and milk, along with

P&G Partners With Injaz Saudi
to Promote Work Readinesspoverty. Pampers, UNICEF South Africa and retailer

packaged foods and fruits.

In the Arabian Peninsula, we partnered with Injaz Saudi,

Pick ‘n Pay partnered to raise funds to enable hospitals“Ramadan is a time of gifting and charity, andthrough the Sharing Fridge, we’ve been able
to give back to the local community aroundthe office in a way that is both sustainable
and engages every P&Ger here.”

influences not only whether the child will survive, butalso his or her ability to grow, learn and rise out ofand communities to provide the best care for thenewest members of society, laying the foundation
for a brighter future.

Ramadan “Sharing Fridge” Supports
Low-Income Workers in Dubai
As a goodwill gesture to the local community during
the Islamic month of Ramadan (May and June), a groupof employees in the Dubai office set up the Company’s

teams chose days on which they’d stock the fridge– Omer Awan, Associate Director, Supply
Chain Operations for the Arabian Peninsula& Pakistan

the local affiliate of Junior Achievement Worldwide, on
a product designed to promote work readiness among
young Saudis and prepare them for careers in the private
sector. The Steer Your Career project focuses on helping
young Saudi nationals learn skills so that they’re able toenter the work force in the private sector. Over the past
six months, P&G, Injaz and a number of P&Gers from theCompany’s Jeddah operations have given training toalmost 500 Saudi students in a number of universities
in Jeddah, Madinah and Riyadh in the areas of time
management, verbal and written communications,first “Sharing Fridge.” The Sharing Fridge’s campaign

interview techniques, problem solving, team work,

gives low-income workers—many of whom are bothdeveloping a career path and leadership development.

fasting and working in temperatures exceeding 35
degrees Celsius (95°F)—access to free food and drinks
during the month.

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58

North America
United Way

Cincinnati Music Festival

Feeding America

In 1915, P&G helped establish the Cincinnati Community

P&G proudly returned as presenting sponsor for

It’s a startling fact that in America today 40 million

Chest, which today is known as the United Way of

the Cincinnati Music Festival (CMF) for the fourth

people face food insecurity—including 12.5 million

Greater Cincinnati. United Way brings people andconsecutive year. As one of the largest urban music

children and five million seniors. Feeding America® isorganizations together to create real change for thefestivals in the country, we see CMF as an opportunity

the nation’s largest domestic hunger-relief organizationcity. With the help of more than 90,000 supporters,

to bring people together through the power of music

and works to assist people facing hunger through

United Way of Greater Cincinnati has impacted theand a strong spirit of inclusion and community

their network of 200 foodbanks. As a long-standing

lives of 365,000 people a year, in 10 counties acrossunderstanding. The festival allows us to connect

partner, P&G has been playing a role in helping Feeding

Ohio, Indiana and Kentucky. The annual P&G United

with tens of thousands of music fans from around

America’s mission by donating everyday household

Way campaign provides support to reach bold goals

the country and ignites a critical conversation thatessentials and personal care products from brands

like ensuring children are prepared for kindergarten,

promotes economic, social and cultural development

such as Charmin, Dawn, Oral-B, Pampers, Pantene

helping families achieve financial stability and ensuringin Cincinnati and beyond. Our brands hold a visible andand Secret which are distributed through a network

people lead healthy, quality lives with maximum

dynamic presence with immersive experiences like theof 200 foodbanks and 60,000 food pantries and meal
programs. For the past several years, P&G has helped

independence. This year, P&G employees, shareholders

Old Spice and Head & Shoulders Kickback Man Caveand retirees donated $9.7 million to the United Way

and the Goddess Patio Spa, to treat guests to a one-of-

to support School Pantry programs for kids. In theof Greater Cincinnati’s annual campaign.

a-kind weekend that #FeelsLikeCMF. Beyond the music,

U.S., Always teamed up with Feeding America on a

P&G’s My Black is Beautiful partnered with the National

campaign aimed at helping to #EndPeriodPoverty by

Underground Railroad Freedom Center and the Greater

sparking conversations and taking action by donating 15

Cincinnati Association of Black Journalists to host an

million period products to girls in need this school year.

open discussion and event, “Navigating Barriers andPossibilities.” To increase national exposure of the event,
we partnered with the Oprah Winfrey Network for the
first time ever. OWN provided their network audience
with an all-access pass to the fest’s hottest musical acts
and our brand experiences were highlighted in videos
surrounding the release of OWN’s new TV show, “Love
Is,” which aired in August.

P&G partnered with the
Oprah Winfrey Network
for the first time ever toincrease national exposure.

This year, Always
partnered with Feeding
America to bring 15
million period products
to girls in need.

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Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

North America
Habitat for Humanity
P&G teams volunteer to help build decent andaffordable homes in the headquarter city of Cincinnati.
The Vecindades Team volunteered to help build a homein the suburb of Lockland.

Always Donates Product to Help
#EndPeriodPoverty
On June 25, 2018, Always reaffirmed ongoing efforts toempower girls and women through product donations
to organizations supporting asylum seekers, as wellas to colleges, in the Toronto area. Volunteers packed

Park and River Clean-Up
On September 20, more than 300 P&G Canada
employees participated in our first-ever P&G Gives
Back Park & River Clean-Up. In total, we collected 531 kg(1,170 lbs) of garbage, including four pounds of cigarettebutts! This event kicked off our annual P&G Gives Back
employee canvassing campaign where all employee
donations are matched by P&G to the United Way.

2,000 P&G personal hygiene kits consisting of Always
pads, Crest toothpaste, Oral-B toothbrush, Pantene
shampoo and conditioner, Secret antiperspirant
and Ivory soap. These kits were donated to localorganizations supporting asylum seekers and refugees.
In addition, Always donated 20,000 pads to local college
campuses in support of their efforts to increase accessto period protection for students.

Volunteers packed 2,000 personal
hygiene kits for supporting
asylum seekers and refugees.

P&G Gives Back campaign collected
531kg (1,170 lbs) of garbage.

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60

Employee Well-Being
P&G Vibrant Living
Vibrant Living is P&G’s global health and well-being

Positive P&G Employee
Survey Trends

program. Our Vibrant Living vision is “Enable peakThis year, 82% of employees participated in Vibrantperformance by inspiring meaningful, happy, healthy

Living events, activities and programs. For the seventh

lives” and is supported by three pillars:

year in a row, we have seen a positive impact from

“Meaningful” Heart — Feeling proud to be part of P&G

Vibrant Living on our Personal Well-Being index.

and connecting with others, at home, at work and in thecommunity, who share similar interests and passion tobring out our best.
“Happy” Mind — Enriching our overall well-being,building resilience and strengthening relationships toenjoy the best in life.
“Healthy” Body — Optimizing our physical strength and

Employees have access to
Vibrant Living health coaches
and champions to get the supportand resources they need.

energy to meet everyday challenges and enjoy an active
lifestyle. That’s the core of Vibrant Living.

Global Vibrant Living Awareness Day
2018 was a milestone year for Global Vibrant Living
Awareness Day. On this five-year anniversary, 93% ofsites around the world participated in “Let’s Celebrate
the Journey.” The intent of Global Vibrant Living
Awareness Day is to remind employees of all the Vibrant
Living programs available and, this year specifically, toencourage employees to celebrate the small steps on
our health and well-being journey and to connect withothers who are on a similar path.

A Workplace Culture of Health andWell-Being
Vibrant Living provides employees a family of offeringsin the areas of fitness, nutrition, mental and emotional
resilience, health education and training, and hands-• We have 119 certified Vibrant Living sites that support
the health and well-being of our employees.
• With the help of 241 Vibrant Living health coaches

on activities and events to aid personal fulfillment andand champions throughout the world, employees canpeak performance. Many of our Vibrant Living programs

connect to Vibrant Living resources they need most.

are available to family members and through the“Meaningful” Heart pillar. Vibrant Living extends to thecommunities where we work and live.

• Our global online wellness assessment is available toemployees in more than 30 languages.
• We are continuing a progressive 10% utilization ratewith our WorkLife Solutions Program, which reaches
more than 90% of employees worldwide.

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Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Employee Well-Being
Vibrant Living
Highlights from Sites Around the World
5K Walk/Run

Morning Tea
Hong Kong
To lift spirits, employees had morning tea with elders
in their community to share stories, play games, create
memories, take photos and give P&G product gifts.

The Cincinnati General Offices
700 employees from around the city participatedin this Vibrant Living event.

Meditation and Stretch Breaks
Sao Paolo General Office
To be more vibrant throughout the day, employees

Family Day 2018

participated in meditation and stretch breaks.

Cabuyao Plant, Philippines
With their #StepUp2HelpOut step challenge employees
and their families not only got healthier together, butwith every 10,000 steps helped to feed a hungry child.

Walking Trail
Greensboro Plant, United States
Employees celebrated the grand re-opening of their
outdoor walking trail.

Information Stations
St. Petersburg Plant, Russia
Information Stations on the topics of Healthy Breakfast
Choices, The Truth About Calories and Stress andResilience were provided on all shifts.

Celebrate Every Achievement
Materiales Plant, Peru
As part of Global Vibrant Living Awareness Day,
employees were invited to note a change or
achievement in their physical or mental health,Vibrant Living Revolution

allowing each one of them to notice that small

Mumbai, Goa, Hyderabad and Mandideep Plants, Indiachanges can build healthy habits. Some highlights

Nearly 600 employees across four sites participatedamong them: “Spending more time with myin a 12-week challenge to promote healthy behaviors.

children,” “Take dance classes” and “Eat breakfast.”

In addition to individual and team achievement,collectively all participants endeavored to Circle the
Globe by the cumulative steps taken.

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Gender Equality

Employee Well-Being
Vibrant Living
P&G Mexico was granted the prestigious Workplace

Running for good at the Geneva
Marathon for UNICEF

Wellness Council – Mexico award for the fifth year in

Nearly 500 passionate P&G colleagues and families

a row for our Vibrant Living and Medical programs.

came together for a positive impact in the community

This is the highest recognition for best practices inand healthier living at the Geneva Marathon for UNICEF.

Health & Wellness.

Once again, it was a record participation level with P&G

Brazil was also recognized externally for their Vibrant
Living programs and received a Wellness Award.

being the largest corporation represented. The mostdemanding, yet very rewarding, experience was runningalongside disabled children in a joëllette (wheelchair).

P&G Korea served in a momentous role with the 2018

Every year, about 30 volunteers help kids from theWinter Olympics in PyeongChang. Torchbearers included

Clair Bois Foundation experience this unique event.

P&G’s Asia-Pacific Region President Magesvaran Suranjan(pictured below, right) and Hyunju Jeon (pictured below,left), a Product Supply employee who had won a P&G
Korea walkathon competition. The walkathon challenge
helped build anticipation surrounding the games andpromote fitness through our Vibrant Living employee
wellness program.

Two P&G Korea
representatives served
as torchbearers in the2018 Winter Olympics
in PyeongChang.

Environmental Sustainability

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Environmental Sustainability

63

Employee Well-Being
Global Medical
1. Save a Life
(Protect Our People)

We touch and improve the lives of our employees withfocused 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,

2. Obey the Law

productivity and innovativeness of our employees. The

Our programs are making a difference. Our nearly(Protect Company Reputation)

P&G global Employee Health and Well-Being Standard

150 P&G Health Services / Vibrant Living Health Centers

ensures that we deliver:

across 40 countries had nearly 305,000 employee

3. Protect Key Technologies• The same corporate Health and Well-Being(Protect Brand Integrity)

requirements at all P&G locations consistently aroundthe world, assuring that sites provide employees with

4. Enhance Speed to Market(Support Emerging Technologies and New Business
Development)
5. Inspire Health and Wellness

the appropriate level of occupational health assurance
programs and services.

visits in the past fiscal year. Based on employee
feedback, 96% of visits surveyed received a favorable
rating. On the 2018 P&G survey, employees who used
health services / health centers or on-site healthprograms scored an average of five percentage points
better on their personal well-being scores. Many of• Comprehensive and effective emergency care forthese employee visits are proactive, including use

our employees, on-site contractors and visitors atof preventive health services such as travel healthall our facilities.

consultations, seasonal influenza immunizations(Vibrant Living, Travel Medicine Support, Global• Compliance with related laws and regulations

WorkLife Solutions and EAPs)

and sharing this expectation with all of ourbusiness partners.
• A culture of health through quality health services
and Vibrant Living offerings that support employees
in protecting and promoting their health.
• WorkLife Solutions and Employee Assistance Programs(EAPs) to support employees and their families.

and personal health and wellness consultations. P&G
survey results for the last seven years tell a remarkably
consistent story of well-being improvement.

P&G Health Services/Vibrant
Living Health Centers across
40 countries had nearly
305,000 employee visits.

Introduction

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Community Impact

Diversity & Inclusion

Gender Equality

Awards & Recognitions
P&G Community Impact initiatives havereceived significant recognition this year,
including the following:
P&G Indonesia won two bronze awards for “BestWorkplace Category” and “Female Empowerment/
Gender Equality Category” after competing with

P&G Panama recognized as the 3rd Top Dream
Company for young people to work in this country.

P&G Brazil was recognized as the #1 Company mostrespected by the consumers awarded by Grupo Padrão /Consumidor Moderno in Brazil.

more than 200 companies across the region.
P&G Mexico was in #5 with best responsibility and
Our Skills-Based Volunteering Program was recognizedcorporate government by Merco study.

externally, receiving American Chamber of Commercein Singapore CARES Award—for the third year in a row.

P&G Argentina was recognized by the National
Government in the “Pink House” (Official House) by

P&G was No. 77 on Forbes’ list of America’s
Best Employers.

P&G Latin America was named Best Regional Corporate
Partner by United Way Latin America for its work andcollaboration to the Born Learning Platform.

Social Development Minister for the CSDW Programin Argentina and our contribution to water issue
in the country.

P&G China was awarded “2018 CSR China Top 100”by CSR China Education Award for its Project
Hope children’s drama program and P&G School
Hygiene Program.

P&G China was awarded “2017 Best Partner of Project
Hope” by China Youth Development Foundation for its
continuous contribution to Project Hope.

P&G Peru was recognized by the National Labor andDefense Ministry and by World Vision for our immediate
reaction, solidarity and support during the emergency

P&G Panama was recognized by Panama Amchamcaused by “El Niño Costero” phenomenon.

(America Chamber of Commerce) for its work with
CSDW. This is the highest award for sustainability
programs in the country and is the first time P&G
received this.

P&G Colombia has been recognized external by the
Bogota City Council for its community impacts andgood practices in Social Responsibility.

Environmental Sustainability

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Community Impact

Diversity & Inclusion

Awards & Recognitions
P&G Costa Rica was in the Top 10 Best Companies with

P&G Latin America was recognized by National

best responsibility and corporate government in Costa

Geographic for the CSDW Program.

Rica by Merco ranking 2018.
P&G Panama was recognized as “Great Local Corporate
P&G China was recognized as “Top 30 of the World’s Top

Partner” by United Way Panama for its work and

500 Company Contribution List in China” by Southerncollaboration to the Born Learning Platform and theWeekly, one of the most authoritative newspaper inseeding funds for Healthy Environments.

China, for its citizenship contributions to China.
P&G China won several awards in the 7th China Charity
P&G Turkey received Red Crescent Platinum Award for
its ongoing product donations.

Festival, the first festival named “charity” initiatedby mass media. P&G China won “2017 Annual CSR
Innovation Award” for its excellent company and brand

P&G China Project Hope Program was awarded “2017Company Citizenship Excellence Award” by China
Philanthropy Times, the first philanthropic newspaper
under the supervision of Ministry of Civil Affairs.

citizenship programs. P&G Project Hope Program, P&G
School Hygiene Program and Crest Smile Fund all won“Annual Charity Program Award.” Safeguard won “2017
Annual CSR Brand.”

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65Introduction

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Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Diversity & Inclusion
P&G is a company that believes in diversity and inclusion. With more than 140 nationalities
represented in our workforce, our own diversity helps us reflect and win with the consumers weserve 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. Every day we strive to get the full value of our diversity
through inclusion — fostering an environment where P&G people can be their best, full andauthentic selves in the workplace. But our job doesn’t end there — our belief and commitment
extend 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.

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Environmental Sustainability

HIGHLIGHTSThe Talk Sparks Dialogue
and Earns Honors
Last year, P&G tackled head-on a real challenge theU.S. and other countries must address — racialinequality driven by racial bias. We decided to step
up and use our voice to shine the light on racial bias,
continuing our efforts to create a better world foreveryone, with equal representation, equal voice andequal opportunity — regardless of background.
We created a two-minute film focused on “the talk”
that many black parents in America have with theirchildren about racial bias to prepare, protect andencourage them. Throughout the film, there arescenes of parents having a version of The Talk with
their son or daughter in various situations and acrossdifferent decades. These depictions of The Talk
illustrate that, while times have changed, racial bias
still exists.
Since it debuted in July 2017, the film has generated
widespread conversations in social media, news
forums and millions of views online. The Talk wasfeatured as part of the storyline during an episode ofblack-ish, ABC’s hit primetime sitcom and has racked
up numerous awards including the 2018 Creative Arts
Emmy award for Outstanding Commercial and 2018
Cannes Grand Prix Lion for Film Corporate Image.
READ MORE

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HIGHLIGHTS

Documentary Profiles
Courage and Leadership
In an era of increasing polarization and heightened
concern for LGBT+ rights, The Words Matter: One
Voice Can Make A Difference took on one of the mostsalient issues of our time and brought it to a worldwide
audience. The Words Matter is more than just a
corporate documentary — it’s a refreshingly candid
examination of P&G’s own history and a lesson inleadership.
P&G commissioned the film in partnership with aproduction team at CNN’s Great Big Story in celebrationof the 25th anniversary of LGBT+ inclusion at theCompany. Beyond the launch and distribution of
the film, P&G wanted to continue to bolster societal
dialogue about LGBT+ inclusion. Screening events anddiscussions were held in New York, London, Geneva,
Cincinnati, Cannes, China, Panama and other locations
across the world.
READ MORE

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HIGHLIGHTS

Herbal Essences Designs
a Sense of Touch
In 2019, P&G brand Herbal Essences will be making asmall change that makes a big impact for people withvisual impairments. Research shows that more than
69% of people have sight limitation or confusion, whichmeans they have difficulty differentiating shampoo
from conditioner while in the shower. Herbal Essences
is taking small steps to ensure the brand is moreavailable and inclusive to all consumers with the launchof the category’s first “visual impairment aid” via raised
indentations on each bottle.

Herbal Essences is making
sure their products areinclusive for all consumers
with a “visual impairmentaid”— raised indentations
that differentiate shampoo
and conditioner.
READ MORE

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HIGHLIGHTS

Flex@Work Evolves with
the Times
In an era of single parenting, caring for aging parents,
supporting a special needs child or navigating same-sex
parenting, P&G sought to modernize our signature Flex@
Work program to provide location and time flexibility formodern families. We recently introduced additional
upgrades in our parental leave policies in many of ourlargest countries around the world with a clearer focus on
career flexibility. Today, more than 75% of P&G employees
report flexing. We have five years of data through our
employee survey that shows that employees who flex
report significantly higher scores in four important areasof engagement and work-life effectiveness: flexibility, job
demands, energy and support.
READ MORE

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HIGHLIGHTSP&G Germany and REWE
Build Inclusive Playgrounds
With the citizenship campaign “Piece of Happiness”,
P&G Germany and key customer REWE have joined
forces with the non-profit group Aktion Mensch tobuild inclusive playgrounds all over Germany within thenext three years. We are teaming up with REWE, oneof the biggest grocery chains in Germany, and Aktion
Mensch, the largest social lottery in Germany. The
first inclusive playground of the campaign has now
been opened in Cologne. Children with and without
disabilities now can jointly experience new adventures
every day.

P&G is teaming up with a
key retailer in Germany tobuild inclusive playgrounds
for children with andwithout disabilities.
READ MORE

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HIGHLIGHTS

P&G Latin America Hosts
Regional LGBT+ Conference
The GABLE affinity group founded more than 20
years ago continues to grow and thrive around theworld. This year, P&G Brazil hosted the first P&G Latin
America GABLE Conference to bring awareness andconsciousness of LGBT+ and diversity matters with alens on business impact. The conference was attended
by more than 70 P&Gers from 10 different countries
including P&G Brazil’s leadership team and more than
40 external guests from local business and academia.
READ MORE

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Diversity &Inclusion

Message from William P. Gipson>

Using Our Voice>

Making an Impact>

Changing the Culture>Awards & Recognitions>

Community Impact

Diversity & Inclusion

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Message from
William P. Gipson“P&G has an unwavering commitment to leveraging diversity andinclusion to innovate for growth across our business. When we build
a more inclusive workplace and world, we can do a better job ofdelighting consumers with our products and brands.
Internally, we are continually working to improve our culture throughpolicies, training and employee support systems to meet the needsof our changing workforce. We have eight company-sponsoredaffinity groups and are respectful of everyone—regardless of race,color, gender, age, national origin, religion, sexual orientation, gender
identity, gender expression, marital status, disability, veteran status,
HIV/AIDS status or any other legally protected factor.
And because the people of P&G will always be our most important
asset, we celebrate teams and leaders who ensure everyone is
performing at their peak and working seamlessly together.
Externally, we believe in using our voice in advertising and media
to call attention to bias, spark dialogue and motivate change inthe world. We know advertising has the power to shape howcommunities see themselves and each other. Many of our brands
are advancing diversity and inclusion perspectives through accurate
and positive portrayals in everyday advertising, and through calling
attention to issues like racial inequality and LGBT+ bias.”
William P. Gipson
President, End-to-End Packaging
Transformation and Chief
Diversity and Inclusion Officer

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Using Our VoiceThe Talk Sparks Dialogue
and Earns Honors

Vicks India

Last year, P&G tackled head-on a real challenge that thehomosexuality is best kept closeted and where being

U.S. and other countries must address, using our voice

India is largely a conservative country—one wheretransgendered is considered an unspoken curse. While

to shine a light on racial inequality driven by racial bias.

a Supreme Court of India ruling in 2014 recognizedWe created a two-minute film focused on “the talk”

some legal and political progress has been made,that many Black parents in the U.S. inevitably havewith their children about racial bias to prepare, protect
and encourage them. Snippets of parents having a
version of The Talk with their son or daughter in various
situations and across different decades illustrate that,transgender individuals as the “third gender” andsociety at large continues to stigmatize and stereotypetransgender individuals, and they are still denied basic
rights. Vicks took a bold stand, sending a powerful
message to help pave the way towards a more inclusive
society. In a video for their #TouchOfCare campaign,

while times have changed, racial bias still exists.

Vicks cast a compassionate spotlight on transgender

Since it debuted in July of 2017, the film has been viewed

activist Gauri Sawant, challenging conventional thinking

millions of times online and has generated widespread

about what it means to be a caring mother.

conversations in social media and news forums. The Talk
was featured as part of the story line during an episode

VICKS TOUCH OF CAREof black-ish, ABC’s hit primetime sitcom and has racked
up numerous awards, including the prestigious 2018
Cannes Grand Prix Lion for Film Corporate Image andTide North America

2018 Emmy Award for Best Commercial.

Tide advertising, which features diverse families

We know bias is a tough topic to tackle, but we believe

sharing household chores, was created to help mitigate

acknowledging and understanding it allows us all towork together to put an end to its harmful effects. Thisfilm alone is not a complete solution, but an important
step in the journey. We hope it will broaden theconversation about bias by exploring how people fromdifferent backgrounds can use listening and dialogue toform a common ground of understanding.

THE TALK

inaccurate or negative stereotypes that exist in oursociety. By including positive portrayals of Black fathers,
same-sex couples and mixed-race couples in everyday
advertising, Tide is not only appealing to a range ofconsumer groups, but also helping to establish diverse
images as the norm, not the exception.

TIDE PODS

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Using Our VoiceHead & Shoulders North America
As a brand that “takes care of the small stuff so you
can tackle the big stuff,” Head & Shoulders highlights
individuals who have moved beyond the limitations
on their shoulders to achieve great things. For the2018 Winter Olympics, P&G’s North America teambrought extreme skier Gus Kenworthy on board as abrand ambassador. Gus had won a Silver medal at the2014 Winter Games but had not performed at his peakbecause he kept his sexuality a secret. After coming
out in 2015, Gus headed to the 2018 Winter Games as
the first openly gay extreme skier. His dedication to
not letting limitations get in the way of achievements
is the embodiment of the Shoulders of Greatness
campaign. The ad made history by flying the Prideflag in a national campaign.
HEAD & SHOULDERS VIDEO

Documentary Profiles Courageand Leadership
In an era of increasing polarization and heightened
concern for LGBT+ rights, The Words Matter: One VoiceCan Make A Difference took on one of the most salientissues of our time and brought it to a worldwide audience.
The Words Matter is more than just a corporate
documentary—it’s a refreshingly candid examinationof P&G’s own history and a lesson in leadership.
P&G commissioned the film in partnership with aproduction team at Great Big Story in celebration of the25th anniversary of LGBT+ inclusion at the Company. It
centers on the determined efforts of LGBT+ activist andretired employee Michael Chanak, who worked tirelesslyin the 1980s to add sexual orientation to P&G’s equal
employment opportunity (EEO) statement of diversity.
The Words Matter recounts the story of Chanak’s fightand the legacy he left behind, bringing P&G into the
future and altering the private sector forever. The film’s

P&G is First UK Company to Offer
Audio Description Ads

surprising transparency, combined with an effective
storytelling approach blending archival footage withcompelling personal recollections, turned what might

In the UK, there are two million people with sight loss—

have been a stale corporate film into a moving accounta huge audience who have, until recently, been largelyof workplace activism.

ignored by advertisers. It was this insight from Sam
Latif, a P&G UK employee who lives with total sight loss,
that started our journey to make our advertising more
inclusive by adding Audio Description. P&G was thefirst company to offer Audio Description on advertisingin the UK, and we are now working with the entire
industry to enable this service across all channels.

FAIRY UK ADVERT

Beyond the launch and distribution of the film, P&G
wanted to continue to bolster societal dialogue about
LGBT+ inclusion. Screening events and discussions were
held in New York, London, Geneva, Cincinnati, Cannes,
China, Panama and other locations across the world.
P&G worked with Great Big Story/CNN to create an
online Pride Month media event to showcase the film
and other LGBT+ stories. The Words Matter won a 2018
Cannes Silver Lion for Film Corporate Image.

At P&G, we’re committed to using our voice to generatedialogue and create positive change. Only by being
honest about our own past can we have the credibility
to address important topics. Learning from history, we
hope this film inspires a new generation to lead byfollowing in the footsteps of courageous pioneers like
Michael Chanak.

THE WORDS MAT TER

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Making an Impact
INROADS Fuels Pipelineof Diverse Talent

Project REACH Rolls Out
in P&G Russia

Since the 1980s, P&G has been working with non-profit

Project REACH is designed to provide young people

INROADS to grow and develop talented, diverse youth

with disabilities the opportunities to grow theirin the U.S. Students of varied cultural backgrounds

confidence and independence and gain valuable

have joined P&G as interns and worked across all

experience far beyond administrative tasks. P&G Russia

functions and business sectors. Without the support

embraced the program this year and initiated theof INROADS, P&G couldn’t have placed as many

biggest rollout of any P&G office, covering six functions

outstanding ethnically diverse students into internships(HR, IT, Finance & Accounting, Product Supply, Sales andor developed them to achieve career success at P&G.

Marketing). Dozens of trainings have been conductedMany highly-talented professionals who started theircareer as interns are today leading teams at P&G.

for REACH newcomers and for the P&G teams who
welcome them.

“Equality is Opportunity: INROADS Turns Dreams into
Reality,” a 2018 documentary created by WorkingNation,
featured Arun Yagnamurthy, who spent a summer
working in P&G’s North America Sales organization.

With the support of
INROADS, we placestudents into internships
and help them develop acareer at P&G.
INROADS DOCUMENTARY

PROJECT REACH VIDEO

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Making an Impact
Leveraging Neurodiversity
for Innovation

P&G Germany and REWE Build
Inclusive Playgrounds

Based in P&G UK’s Reading Innovation Center, Dr.

With the citizenship campaign “Stück zum Glück”

Emma O’Leary has been championing and leveraging(“Piece of Happiness”), P&G Germany and REWE, one

neurodiversity to further innovation for the Company.

of the largest grocery chains in Germany, have joined

In a first for Europe, Dr. O’Leary has designed a work-forces with the non-profit group Aktion Mensch toexperience program for people on the autism spectrum,build inclusive playgrounds across Germany over thein collaboration with the National Autistic Society.

next three years. The campaign demonstrates how a

She worked to ensure that the organization received

joint citizenship campaign can improve the lives of ourtraining on autism, that the right measures were in

consumers while also building the business. For eachplace for the participants and that all participants

P&G product purchased at REWE, one cent will be

were put at ease.

donated, with a guaranteed donation of $1.1 million.

The interns reported a big confidence boost and theirappreciation for the opportunity. Within P&G, eyes wereopened to a broader definition of diversity and inclusion.
The program resulted in two interns hired for 12-monthinternships and the Talent Supply team gaining an
understanding of how to build accommodations in
the hiring process for people with autism.

In collaboration with
the National AutisticSociety, P&G designed
a work-experience
program for those on
the autism spectrum.

The campaign’s first inclusive playground has now
been opened in Cologne, and children with and without
disabilities can jointly experience new adventures everyday. “We are thrilled by the initial success of our joint
campaign,” said Astrid Teckentrup, Vice President Sales
at P&G Germany. “We are providing children and theirfamilies with a valuable space to play and are making
a lasting improvement to their quality of life.”

For each P&G productpurchased at REWE, wedonate one cent towards
building inclusive playgrounds
across Germany.

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Making an Impact
P&G Costa Rica Champions
LGBT+ Rights

Herbal Essences Designs
a Sense of Touch

A public-private partnership forged in Costa Rica

In 2019, the Herbal Essences brand will be making abetween P&G, the Presidency of Costa Rica, United

small change that has a big impact for people with

Way, the National Learning Institute, the United Nations

visual impairments. Research shows a large percentage

Development Program and Ulacit (a local university),of people have difficulty differentiating shampoo fromhas developed a program that is educating publicconditioner while in the shower—either due to sightofficials on the importance of LGBT+ rights. More thanlimitation or confusion. Herbal Essences is taking small

100 public officials have been certified to date, and thesteps to ensure the brand is more inclusive to ALL

P&G team in Costa Rica is proud to be championing

consumers with the launch of the category’s first

this effort.

“visual impairment aid.”

P&G COSTA RICA VIDEO

Since using similar bottles for both shampoo andconditioner makes it virtually impossible to tell thedifference from touch alone, Herbal Essences saw anopportunity to improve the usage experience for ALL
consumers by developing a system that distinguishes
shampoo from conditioner through the sense of touch,adding etched distinguishers to the back of bottles aswell as braille on the labels.
Herbal Essences believes that a shower should be arelaxing moment in the midst of our crazy days andis working to enhance the experience.
HERBAL ESSENCES VIDEO

We are championing a public-private
partnership in Costa Rica to educate public
officials about the importance of LGBT+ rights.

Gender Equality

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Changing the Culture
Flex@work Evolves with the Times
In an era of single parenting, caring for aging parents,
supporting a special needs child or navigating samesex parenting, P&G sought to modernize our signature
Flex@work program to provide location and time
flexibility for modern families. Flex@work is designed tointentionally drive a culture change around flexibility toenable all employees to be fully engaged by supporting
work-life integration, empowering employees topersonalize their schedules directly with their managers.
Flex@work has enabled P&G people to effectively
manage personal needs while remaining fully engaged
to deliver their work plan and grow their careers. The
Company recently introduced additional upgrades inour parental leave policies in many our largest countries
around the world and provided a clearer focus on career
flexibility. Today, more than 75% of P&G employees
report flexing, and we know that flexibility matters. In
surveys over the past five years, employees who flex
report significantly higher scores in four important
areas of engagement and work-life effectiveness:flexibility, job demands, energy and support.

“Although many days I had to spend
in laboratories or doctor’s offices, myproductivity was great. I felt the Company
was truly supporting me as an individual,
even throughout all the hardships.”– Aaron, P&G Brazil“My third child was born this week and thisis the first time I am going to spend quality
time with the newborn baby…this is truly adream come true.”– Roni, P&G Israel“As a single mom of four children, trusting me
to flex my schedule in response to the needsof my kids is one of the top motivators for me
at P&G.”– Liz, P&G North America

Flex@work is designed to enable
all employees to attain work-life
integration, and today, more than
75% of employees report flexing.

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81

Changing the Culture
Love Felt Around the World
From Santiago to London, Toronto to Rome, and at
global headquarters in Cincinnati, P&G employees andtheir families took to the streets all around the world
this spring and summer, waving rainbow flags andwearing colorful t-shirts (and rainbow glasses!) to

P&G Latin America Hosts Regional
LGBT+ Conference
Founded more than 20 years ago, GABLE—the affinity
group for Gay, Ally, Bisexual, Lesbian and Transgender
Employees—continues to grow and thrive around theworld. This year, P&G Brazil hosted the first P&G Latinmarch in celebration of love and equality.

America GABLE Conference to bring awareness to

In 2018, P&G participated in 35 Pride events globally, andLGBT+ and diversity matters, with a lens on business

we plan to support more than 50 in 2019. Here are some

impact. The conference was attended by more than 70

of our highlights:

P&G employees from 10 different countries, including• The GABLE Team in Central Europe, sponsored byexternal guests from local business and academia.

Vice President Geraldine Huse, sported rainbow
glasses (procured by Geraldine) while marching
together at Budapest Pride on July 7.
• On June 18, for the third year in a row, P&G joined
the CSD Parade in Frankfurt. P&G was the largest
company group, with 100 P&G employees, companions
and external partners marching.

P&G Brazil’s Leadership Team and more than 40

The conference covered topics like LGBT phobia, from a
PhD Professor in Psychology and included case studies
from other companies, and brands discussing how toinclude diversity or communicate successfully with
consumers. A panel with Google’s Brazil HR Director
as a special guest featured personal stories from Shelly
McNamara, Global HR VP; Fred Heimbeck, former Brazil• At the Crailsheim factory, GABLE site leader Horst

CMK Director; and Aaron Flynn, former Brazil GABLE

Brazel helped to establish a Unisex Toilet at the factory

Leader. A highlight of the event was an address by theto answer the needs of transgender colleagues.
• In Boston, Gillette showed up with a stunning blue
float sporting giant razors.
• In Toronto the Crest “Smile with Pride” float got thecrowd cheering.
• Pride St. Charles, located just outside St. Louis, is anewer event of only five years so P&G was thrilled tobe the presenting sponsor this year.

founder of GenderProud, a leading global advocacy andawareness organization that aims to advance the rights
of all transgender individuals.

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Diversity & Inclusion

Changing the Culture
P&G Employee Affinity Groups
Affinity groups, which connect employees based on
similar interests or aspects of diversity, are key enablers
for employees to feel valued, respected and included,
while enabling them to perform at their peak. They
foster understanding for the interests and needsof employees in their groups and provide P&G withassistance in attracting, retaining and developing
people of their group. Additionally, affinity groups
provide assistance in understanding and meeting theneeds of consumers of their group, and often volunteer
to make a difference in local communities.

GABLE
GABLE is dedicated to fostering an inclusive, supportive
global network that enables Gay, Ally, Bisexual, Lesbianand Transgender Employees to contribute to theirfullest potential and to bring their whole self to work
every day. What began more than two decades ago
as largely a North American-centered network for
fostering workplace equality for Lesbian, Gay, Bisexual
and Transgendered (LGBT+) employees has grown intoa supportive and global community, with chaptersin every region of the world. These grassroots efforts
have evolved into chapters representing the diversityof our employees, as well as strong allies to support
individuality and inclusion.

Global Affinity Groups

Corporate Women’s Leadership Team

People With Disabilities Network

The Corporate Women’s Leadership Team (CWLT) is

At P&G, we value diversity, including disability diversity.

committed to the advancement of women, helping

We founded the People With Disabilities (PWD) Network

ensure that women’s skills and insights are well

38 years ago, when the U.S. enacted the Americans

represented throughout our global Company andwith Disabilities Act. The global group shares “copingat all levels of leadership. The CWLT continues to be

strategies” with each other and with colleagues toactively involved in events and programs that promoteenable fellow people with disabilities to perform atmentoring, sponsorship, the development of leadershiptheir peak in the workplace and to enable managers

skills, flexibility and increasing representation of womenand colleagues to become disability confident. The

at all levels.

PWD Network also leverages their diversity to influencecompany strategies on things like inclusive productdevelopment and inclusive advertising.
MEET P&G'S SCOT T VAN NICE

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83

Changing the Culture
Regional Affinity Groups
African Ancestry Leadership Network
The African Ancestry Leadership Network (AALN) is oneof the longest-established employee groups at P&G, andreflects P&G’s century-old commitment to the AfricanAmerican community in the U.S. In the early 1950s, thecompany reaffirmed a commitment to diversity byhiring black skilled technicians and laborers. In 1958,
with the launch of Drene Hair Care print advertising,

Asian Pacific American Leadership TeamOne of the fastest-growing groups in North America,
the Asian Pacific American Leadership Team (APALT)
represents the Asian-Pacific Americans working
at every level in P&G, where they have made major
contributions to our business. The team offers
opportunities for networking and is actively involved
in recruiting, retaining, developing and advancing
employees of Asian-Pacific heritage.

P&G began the earliest diversity advertising. Employees

Native American Indian Leadership Teamof African Ancestry have been integral in helping the

The mission of the Native American Indian Leadership

Company become a corporate leader in innovation

Team (NAILT) is to enable P&G employees with a strong

and leadership, and we continue to benefit from rich

Native American Indian cultural identity to bring theirconsumer insights to develop new products andwhole selves to work, in a way that leverages and respects

bring them to market. Although the AALN is currently

the NAI diversity of our workplace and supports thefocused on employees of African Ancestry in North

communities in which we live. By strengthening

America, work is underway to expand the group’s

the network across North America, NAILT aims toreach to the African diaspora across the world.

develop talent of North American Indian employees

Hispanic Leadership Network
There are approximately 60,000 Latinos living in the
Cincinnati area, home to P&G’s global headquarters.
With language, economic and education barriers, life inCincinnati can be difficult for many Hispanics. A teamthrough mentoring, training, informal connections
and talent career support. The group also volunteers
in local communities where our employees live andwork, aiming to improve the lives of people througheducation and community service.

of dedicated P&G volunteers comprising the Hispanic

Veterans and Reservists Network

Leadership Network in Cincinnati are united in their

The P&G Veterans and Reservists Network helps

quest to improve people’s lives inside and outside P&G.

the Company attract and retain high-performingThis group volunteers in the community in the areas of

U.S. military veterans and reservists. In addition, they

health, education and the arts and actively engages in

help enable fast starts through mentorship and build

programs that support young Hispanic talent.

a positive environment through volunteering andcommunity support.

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Diversity & Inclusion

Awards & Recognitions
Forbes Best Employers for Diversity (U.S.)

Top Supplier Diversity Program, DiversityComm/US
Veterans Magazine (U.S.)

William Gipson named to Black Enterprise’s Top
Executives in Corporate Diversity (U.S.)

Disability Smart Inclusive Service Provider Award (UK)

Diversity Inc. Top 50 Companies for Diversity (U.S.)

Diversity Challenge by Charta der Vielfalt (Germany)

National Organization on Diversity’s 2018 Leading

Premios Fundación Diversidad/Alares (Spain)

Disability Employer Award (U.S.)
Canada’s Best Diversity Employer 2018 (Canada)
Best of the Best by National Business Inclusion
Consortium (U.S.)

100% on Disability Equality Index Best Places to Workfor Disability Inclusion (U.S.)

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Gender Equality
We aspire to build a better world for all of us — insidefor girls and economic opportunities for womenand outside P&G; a world free from bias and withthrough our corporate programs and policy

equal voice and equal representation for all individuals.

advocacy efforts; and creating an inclusive, gender-

A world where everyone sees equal. We know that

equal environment inside P&G — and advocating

gender equality contributes to stronger economies,for gender-equal workplaces beyond P&G — where

healthier communities and thriving businesses.

everyone can contribute to their full potential.

We are focusing on three areas where we can have

In each of these areas, we partner with highly-

the greatest impact: leveraging our significant

engaged organizations that share our commitment

voice in advertising and media to tackle gender

and where we can combine our resources, talents

bias; removing gender-biased barriers to educationand skills to have a bigger impact.

VIEW HIGHLIGHTS

VIEW MORE STORIES

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HIGHLIGHTS

Busting Workplace Myths
and Opening Minds
In January 2018, a thought-provoking exhibit arrived at
the small Alpine town of Davos, Switzerland during theannual World Economic Forum. This Women at Work:
Myth vs. Reality interactive exhibit dispels the gender“myths” that get in the way of women’s representation andadvancement in the workplace. It’s designed to expose
and challenge the myths that hold women back fromachieving 50/50 representation at all levels of management,changing the way we think and talk about women andcreating a new narrative that will accelerate progress. The
Women at Work exhibit is appearing at additional events
across the world, continuing to open minds and challenge
outdated thinking.
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HIGHLIGHTS

Sesame Street Muppets
Fuel Girls’ Aspirations
Chamki is a vibrant 5-year-old girl Muppet who lives on
Galli Galli Sim Sim, the Indian version of Sesame Street. The
Growing Up Chamki series airing on TV in India explores
issues of gender equity in child-relevant ways, with girls
and boys role-playing different careers and family roles.
P&G partnered with Sesame Workshop to produce theepisodes and make them available to Sesame Street
co-productions around the world, aiming to set a new
expectation that values girls’ education equal to boys' —so that both boys and girls can reach their full potential.
Sesame Workshop and P&G also launched an advocacy
campaign featuring a 60-second video promoting girls’
education and gender equality. This video launched on
the Kwesé TV network in ten countries throughout SubSaharan Africa, airing more than 1,000 times, and has
been viewed more than two million times on social media.
P&G will continue to support Sesame Workshop, local
educators and producers in developing engaging, inspiring
female Muppet characters around the world. From Zari in
Afghanistan to Chamki in India, Lola in Latin America, Kami
in South Africa and Raya throughout Sub-Saharan Africa
and South Asia, the girl Muppets have become the mostpopular characters among girls and boys alike.
READ MORE

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HIGHLIGHTSP&G Commits $100 Million to
Women-Owned Businesses
Outside the U.S.
When women have the tools to fully participate in theeconomy — through increased access to training, loans,credit, economic literacy and more — they build businesses,
and we see entire communities transformed. P&G has
made women’s economic empowerment a priority anddeveloped a program supporting women entrepreneurs
across our supply chain, from suppliers to distributors toagencies primarily in the U.S., but now we’re expanding theeffort. In October 2017, we made a commitment to spend$100 million with Women-Owned Businesses (WBEs)
outside the U.S. over three years. In December 2017, we
joined with U.N. Women and Sharjah’s ruler to host the first
Women’s Economic Empowerment Summit held in the
Middle East, driving awareness about the importance ofactive intervention and long-term advocacy. P&G developed
a customized training program targeting the private sector
to help guide businesses on how to get started with WBEs.
This, combined with other interventions, helped jump-starta new generation of women entrepreneurs. And we’re proud
to report that the 3-year, $100 million goal was surpassed inless than one year.

P&G’s pledge to spend $100
million with Women-Owned
Businesses outside theU.S. over three years was
surpassed in just one year.

READ MORE

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HIGHLIGHTS

Using Our Voice
To use our voice in advertising to help eliminate bias andpromote equality, we announced at the 2018 Cannes
Festival of Creativity an industry-wide aspiration to get
to 100% of ads and media accurately portraying womenand girls along with specific steps to get to 50/50
equality in creative directors and other production roles.
We’re partnering with #SeeHer and the U.N. Women
Unstereotype Alliance, investing to expand Free the Bidand supporting content created by and for women — withpartners like Katie Couric Media and The Queen Collective.
Gender-equal ads perform 26% higher in sales growthaccording to the same #SeeHer study. Some of P&G’s
best-performing brands have the most gender-equal
campaigns such as Always Like A Girl and SK-II Change
Destiny — demonstrating that equality is a force for good
and a force for growth.
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HIGHLIGHTS

Generation of Firsts
Our Always brand continues to tackle societal barriers
for women around the world and in April launched
the campaign “Generation of Firsts,” which celebrates
Saudi women achievers. With this campaign, Always is
supporting women to embrace being the first to achievea career ideal that had been traditionally challenged. The
film was made with not only an all-Saudi cast and crew but
an all-female Saudi cast and crew including the director,
producer, cinematographer and full production team.
The film was viewed more than 1.5 million times andgenerated a social media flurry with more than 1,000 stories,
pictures and videos of Saudi girls proudly posting what they
had accomplished.

The Always campaign“Generation of Firsts”
celebrates Saudi womenachievers, inspiringconsumers to share theirown stories.
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HIGHLIGHTS

Men Advocating
Real Change™
At P&G, we believe that the requisite skills to succeed
as leaders in 2018 and beyond include the ability to be
empathetic and inclusive. Given the critical role men playin advancing women and to achieving gender equality,
we have partnered with Catalyst on their MARC™ (Men
Advocating Real Change) initiative. Through this effort men
better understand the impact stereotypes, unconscious
bias and male-dominant culture have on women’s career
progression. In less than two years, MARC workshops havereached almost 800 P&G managers across more than 15
countries. And by inviting other Fortune 500 companies tojoin our P&G-hosted workshops, several companies havebeen inspired to launch their own MARC initiatives.
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Message from Carolyn Tastad>

Using Our Voice>

Making an Impact>

Changing the Culture>

Gender Equality Partners>

Awards & Recognitions>

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

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Message from
Carolyn Tastad“At P&G, we want a world free from bias—a world with equal voice
and equal representation for all individuals.
We believe in gender equality. Equality for women of all races, LGBT+
women, women of high and low economic status, women withdisabilities, with more and less education—in however individuals
define themselves. We’re making progress, but there is more to do.
This past year, we made a conscious choice to look deeper into
understanding why women are so massively underrepresented
in the top levels of companies, of governments, of industries
everywhere. The answer, at least in part, is that society continues
to operate with a set of outdated assumptions—or myths—about
women that hold them back. We’ve all heard the clichés that feedthese myths: Women question and doubt themselves. Women
dread confrontation. It’s hard for women to master their emotions.
They lack ambition.
Women bump up against the notion that it’s their own behavior orstyle that holds them back. We know this is false. We need to create
a new narrative—we need to unlearn the myths and replace themwith the reality that we see every day. Women are highly effective
leaders. That’s what we believe at P&G.”
Carolyn Tastad
Group President,
North America

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Using Our Voice
Generation of Firsts
Our Always brand continues to tackle societal barriers
for women around the world. Saudi Arabia is at thecusp of transformation as Saudi women are coming into
their own, challenging expectations in careers and at
home. In April 2018, Always launched the “Generationof Firsts” campaign, which celebrates Saudi womenachievers. Through this campaign, Always is supporting
women to embrace being the first to achieve a career

Joy Japan
In Japan, while 60% of married couples today havecareers, 90% of household work is performed by women.
“Sharing the housework – job to JOY” encourages family
members to talk about sharing chores and uses maleand female perspectives to tell a compelling story.
JOY JAPAN

ideal that had been traditionally challenged. The film

Olay North America

was made with not only an all-Saudi cast and crew,

From being told they are “too emotional” to “toobut with an all-female Saudi cast and crew—anambitious,” women constantly face conflicting

unprecedented undertaking.

expectations for how they should look, feel or behave.

The film was viewed more than 1.5 million times andgenerated a social media flurry with more than 1000
stories, pictures and videos of Saudi girls proudly
posting what they were the first in their families
to accomplish.
ALWAYS SAUDI ARABIAAn Olay campaign is ready to put an end to that byencouraging women to “Face Anything”.
OL AY NORTH AMERICA

Olay China
Olay is encouraging all women to be fearless about theirage, using meaningful numbers instead of years to telltheir story: “59”, for instance, because she has won 59

Brand Campaigns Champion
Gender Equality

championships, or “8”, because she has been a singer
for 8 years.

Ariel France
By highlighting the important role parents play inrole modelling, this Ariel ad challenges the idea thatlaundry is a woman’s job. French authorities havecalled it “the first time that an ad explicitly points
to sharing responsibilities in the home. It is anevolution of our society.”
ARIEL FRANCE

We are using our brandadvertisements to change
cultural perspectives about
gender norms around the world.

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95

Using Our Voice
Sesame Street Muppets FuelGirls’ Aspirations

P&G will continue to support Sesame Workshop, local
educators and producers in developing engaging,inspiring female Muppet characters around the

Chamki is a vibrant, five-year-old girl Muppet on Galliworld. These characters appeal to both children andGalli Sim Sim, the Indian version of Sesame Street.

adults, and they encourage audiences to respect girls,

Chamki loves school and dreams of becoming a scientist

appreciate their diverse likes and dislikes, advocate for

one day. The Growing Up Chamki series airing on TV intheir education and support their dreams—planting

India explores issues of gender equity in child-relevant

the seeds for societal change. They are often able toways, with girls and boys role-playing different careers

challenge stereotypes in ways that human charactersand family roles. This teaches girls and boys alike that

could not, without threatening or disrespecting cultural

they can aspire to be anything they want to be.

norms. From Chamki in India to Zari in Afghanistan and

P&G partnered with Sesame Workshop to produce theepisodes and make them available to Sesame Street
co-productions around the world, aiming to set a new
expectation that values girls’ education, so that bothboys and girls can reach their full potential. Empowering
girls is critically important because they face barriers
boys do not. Early marriage, gender discrimination, lackof adequate sanitation and differences in how parents
value education for girls versus boys often keeps girls
from enrolling and staying in school.
Sesame Workshop and P&G also launched an advocacy
campaign featuring a 60-second video promoting
girls’ education and gender equity. This video aired
more than 1,000 times on the Kwesé TV network in ten
countries throughout sub-Saharan Africa and has beenviewed more than two million times on social media.
GROWING UP EQUAL

Lola in Latin America, these, and other girl Muppets,
have become the most popular characters among girls
and boys alike.

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Using Our Voice
Always Increases Efforts to Help
Keep Girls in School

Queen Collective Inspires
Female Filmmakers

Girls in many parts of the world don’t have access toLegendary artist Queen Latifah is helping to accelerate

sanitary pads, causing them to miss school during theirgender and racial equality behind the camera byperiod. Always has been helping the most at-risk girls

creating U.S. distribution for films produced by diverse

with access to pads for more than 10 years throughfemale directors. The Queen Collective—a program

initiatives like the Always Keeping Girls in School

developed in partnership with Queen Latifah, Tribeca

Program in Africa. When Always learned, in early 2018,

Studios, P&G and other partners—issued a call forthat there were still a significant number of girls inwomen directors of color to submit a treatment for andeveloped countries missing school because of lack oforiginal short documentary. Brittany “B.Monét” Fennell

access to period products, the team expanded theirand Haley Elizabeth Anderson were chosen as winners

efforts by launching programs like the #EndPeriodPoverty

and participated in a mentorship session hosted bycampaigns in the UK, U.S. and Canada.

Tribeca Studios. They will make films with financing and

The campaigns have been critical in raising awarenessand sparking conversation around the issue, as well as
providing access to products for girls in need. To date,more than 25 million pads have been donated throughthese campaigns. Similar campaigns will continue tobe rolled out in other countries in the coming year.
These programs are just one way Always is helping tochampion girls’ confidence by keeping them in school

distribution support from the Queen Collective.

Partnered with Queen
Latifah and Tribeca Studios,P&G is distributing films
produced by diverse
female directors.

and focused on reaching their full potential.
QUEEN COLLECTIVE
ALWAYS VIDEO

The Always Keeping Girlsin School program in Africa
has expanded to include#EndPeriodPoverty campaigns
in the UK, U.S. and Canada.

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Making an Impact
P&G Commits $100 Million to
Women-Owned Businesses
Outside the U.S.

Mexico, Nigeria, Malaysia, Spain
Champion Women Entrepreneurs
P&G Mexico and P&G Nigeria partnered with

opportunities for women through the launch of “Sigue

When women have the tools to fully participate in

WEConnect International to develop 20 female

Adelante” (Keep Going) grants. This year, grants wereentrepreneurs in each market by providing a multi-

given to three women entrepreneurs to launch their

the economy—through increased access to training,loans, credit, economic literacy and more—they build
businesses, and entire communities are transformed.
P&G has made women’s economic empowerment a
priority and developed a program that supports women
entrepreneurs across our supply chain, from suppliers to
distributors to agencies.
While initially conducted primarily in the U.S., theeffort has been expanded. In October 2017, P&G
committed to spend $100 million with Women Owned
Businesses (WBE) outside the U.S. over three years. In
December 2017, P&G joined with UN Women and theruler of Sharjah to host the first Women’s Economic
Empowerment Summit in the Middle East, driving
awareness about the importance of active intervention
and long-term advocacy. P&G also developed acustomized training program targeting the private
sector to help guide businesses on how to get started
with WBE. Combined with other interventions during
the summit, this helped jump-start a new generation of
women entrepreneurs. We’re proud to report that thethree-year, $100-million goal was surpassed in less than
one year.

P&G Spain partnered with Womenalia, a network ofmore than 280,000 professional women, and retailers
Arenal, Marvimundo and Primor to enhance economic

session training course, tailored to meet local market

businesses, and they were given access to funding,needs. P&G experts and external speakers facilitatedtraining, mentoring and a co-working space.

the sessions to develop participants’ business strategies
and skills in areas such as marketing, sales, finance andleadership. At the end of the course, the entrepreneurs
were able to present their pitches to representatives
from P&G Purchases to receive valuable feedback. P&G
and WEConnect will continue to make more economic
opportunities available through high-value training
sessions in additional markets.
Initiated in 2015, Ibo Nakhoda Hidup is a collaborative
program between P&G Malaysia, top retailer MYDIN,
and the non-governmental organization WOMEN:girls.
This program aims to help mother entrepreneurs(mompreneurs) not only generate household income
but to also pursue their dreams of running a successful
small business. Every year, five winners are selected forfunding and special support opportunities in branding,business strategies and given access to machinery andequipment to bring their business to the next level. As
of 2018, the program has received 600 submissions
from mompreneurs from 10 states across Malaysia,
generating more than $90,000 of support.

Partnered with WEConnect,
we provide training courses
to teach business strategy,
finance and sales to women
entrepreneurs.

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98

Making an Impact
Forward Together Toronto
Nurtures Talent

LEAD Develops Europe’s FutureFemale Leaders

Five years ago, P&G Canada’s internal Women’s Network

At many corporations in Europe, women have

saw an opportunity to further develop high-potential

traditionally not been part of the retail and consumer

women in the company. P&G’s Irena Kahn, supported

goods industry, largely because of an outdatedby her management, took the lead to connect withperception that a career in Sales means life on the roadother large employers in the Toronto area to create a

and a false narrative that few women can succeed as aforum called Forward Together. The Forward Together

corporate executive.

conference is now an annual event, and P&G women“We’re very proud of the progress we’ve
made at P&G but there is a lot of work ahead.
Industry collaborations like LEAD Network
are vital for broad and sustainable progress
towards true gender equality in business andsociety.”— Gary Coombe, Group President, Global
Grooming, and former President, P&G Europe.

who participate say they love to the dynamic guest
speakers and the opportunity for peer mentorship andP&G Belgium Supports Girls in STEM

to share best practices across different companies.

“Greenlight-for-Girls” (G4G) is an international

To date, more than 1,000 women have been touchedby this effort, helping to grow the next generation of
female business leaders.

FEMALE LEADERS VIDEO

P&G has taken steps to drive change across the
FORWARD TOGETHER VIDEO

continent, starting with our own industry. As aFoundation Partner and longstanding supporter ofthe Leading Executives Advancing Diversity (LEAD)

JUMP Promotes Womenin the Workplace

actively attract, retain and advance women in the retail

JUMP is Belgium’s leading voice working withand consumer goods industry in Europe. LEAD servesorganizations and individuals to close the gap
between women and men at work, in order to create

Network, we’ve joined forces with other corporations to

as a platform for exchanging ideas and best practices
and for inspiring others to find solutions to challenges

a more equal society. In March 2018, P&G’s Belgium,

they may be facing.

Netherlands, Luxembourg business leader Caroline

At the 2017 annual LEAD Network event, P&G wasThomaes, a passionate advocate for women, was asked
to talk at the annual JUMP Conference about how P&G
is working to create a gender equal world inside andoutside the Company.

recognized as the European CPG (Consumer Packaged
Goods) manufacturer with the highest representation of
female executives (32%). We are driving our partnershipwith LEAD Network through local chapters in Switzerland,
Netherlands, Germany, Spain, Turkey and the UK.

organization aimed at encouraging girls to pursue STEM
studies. Since 2013, P&G’s R&D team in Brussels has
been organizing science workshops for girls in order toeducate and inspire them to pursue future careers inscience, technology, engineering or math (STEM). The
Brussels Innovation Center has spearheaded this effort,
and P&G centers in Barcelona and Cincinnati have also
adopted the initiative. Plans are underway to expand
the effort to additional countries.

Our R&D team in
Brussels organizes
science workshops forgirls to inspire them topursue careers in STEM.

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Changing the Culture
Busting Workplace Myths andOpening Minds

At P&G, we believe that the requisite skills to succeed

We are working to create an inclusive, gender-equal

as leaders in 2018 and beyond include the ability to be

workplace—within P&G and beyond. While progresshas been made, women are still underrepresented at
the top levels of most companies. One reason is thatsociety continues to operate with a set of outdated

Men Advocating Real Change™
empathetic and inclusive. Given the critical role men
play in advancing women and in achieving genderequality, we have partnered with Catalyst on their
MARC™ (Men Advocating Real Change) initiative.

assumptions about women in the workplace.

Through this effort men better understand the impact

In January 2018, the thought-provoking exhibit Women

culture have on women’s career progression. In lessat Work: Myth vs. Reality was displayed at Davos,
Switzerland during the annual World Economic Forum.
The interactive exhibit dispels the gender “myths”
that get in the way of women’s representation andadvancement in the workplace. The brainchild of P&G
and Seneca Women, a global leadership community,
the exhibit is designed to expose and challenge themyths that hold women back from achieving 50/50
representation in all levels of management, changing
the way we think and talk about women and creatinga new narrative to accelerate progress. The Womenat Work exhibit is appearing at additional events andgatherings across the world.

At P&G, we’re challenging
the myths that hold womenback from achieving equal
representation in theworkplace.
WOMEN AT WORK: MY TH VS REALIT Y

that stereotypes, unconscious bias and male-dominant
than two years, MARC workshops have reached almost
800 P&G managers across more than 15 countries,
with plans to expand further in 2019. Several other
Fortune 500 companies, invited to join the P&G-hosted
workshops, have been inspired to launch their own
MARC initiatives.

“For me, MARC boldly started a dialogue withmyself and other male colleagues about
what we assume to be normal (but it is not),how much business culture is built on maleculture, and the privilege I had in belonging
to the dominant culture from the beginningof my career.”— Giorgio Siracusa, Vice President, Human
Resources, P&G Europe

In less than two years, MARC
dialogue workshops have reachedalmost 800 P&G managers acrossmore than 15 countries.

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Changing the Culture#WeSeeEqual Forums Held in NA,
Europe, Asia

P&G Manufacturing Site Embraces
Equality

Notable advocates for Gender Equality headlined

P&G’s Hyderabad plant was one of the first manufacturing

P&G-hosted events in 2018 to share inspiring stories

sites in India to aggressively hire and support womenand galvanize P&G’s efforts to build a world free fromacross the workforce. In an unprecedented move, thegender bias. Award-winning journalist Katie Couric,site collaborated with the government to receive approval

former White House Executive Director for the Council

to allow women to work across shifts. To facilitate

on Women & Girls Tina Tchen and others energized

this, P&G arranged the necessary support, including

employees, industry partners and government

providing special secure transport for women andrepresentatives in P&G’s Cincinnati, Geneva andinclusive onsite health and wellness programs.

Singapore offices, inspiring attendees to become

Engagement sessions were held during recruitment

advocates for change within the workplace and inwith candidates, their parents and the entire Hyderabad

their communities.

Leadership Team to communicate our commitment
to safety, security and meaningful long-term careers.
Female employees now work across all shifts and havethe opportunity to operate manufacturing equipment.
Implementing these changes has created tremendous
response during hiring drives and has provided a roadmap
for sustaining women over the course of their careers.

Our Hyderabad plant in India
expanded their transportationand health support to enable
women to work across all shifts.

P&G’s Sue Kyung Lee brought together
advocates for Gender Equality to sharestories and inspire action within theircommunities in Singapore.

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Gender Equality Partners
Achieving a world free from gender bias is not work thatany one individual, NGO, government or company — nomatter how committed — can tackle alone. In all of
our Gender Equality focus areas — leveraging our
voice in advertising, removing barriers to educationand economic opportunity and achieving 50-50
representation within our Company — we partner withhighly-engaged and effective organizations that share
our commitment.
We are inspired and proud to work with our partners
to combine our resources, talents and skills to have abroader and bigger impact.

Diversity & Inclusion

Gender Equality

Environmental Sustainability

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Awards & Recognitions
Carolyn Tastad, Alex Keith and Fama Francisco named
to Fortune’s Most Powerful Women (Global)

NAFE Top Companies for Executive Women (U.S.)

Working Mother Best Companies for Working Mothers(U.S.)

Empowerment of Women Bronze Award, Pinnacle
Group Global CSR Awards (Global)

Working Mother Best Companies for Multicultural
Women (U.S.)

Top 10 company – best gender equality practices(Colombia)

Total E-Quality award (Germany)

Gary Coombe recognized as a male champion for
Women in Business, 2018 Agents of Change Power List
(UK)

Diversity & Inclusion

Gender Equality

Environmental Sustainability

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Environmental Sustainability
Building on our legacy of environmental leadership, we have made significant progressagainst our 2020 goals for climate, water and waste — having achieved several of themalready — and have set new, ambitious environmental goals for 2030 that will enable andinspire positive impact. These goals seek to address two of the world’s most pressing
environmental challenges: finite resources and growing consumption.

VIEW HIGHLIGHTS

VIEW MORE STORIES

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HIGHLIGHTS

Ambition 2030
We’ve made strong progress against our 2020 goals
and the time was right to raise the bar. So this year welaunched our new 2030 goals — Ambition 2030 — aimed
to enable and inspire positive impact while creating
value for consumers and our Company. These goals
focus on where we know we can make the biggest
positive difference — our brands, our supply chain,society and our employees.
People know us through our brands, and we will use
the power of our innovation and our brands to delight
consumers and drive positive impact. In our supply
chain, we will reduce our footprint and strive forcircular solutions. We can impact society by creating
the right partnerships that enable people, the planet
and our business to thrive, and this includes finding
solutions so that none of our packaging finds its way
to the ocean. And finally, we will tap into our greatest
resources, our employees, so that they are engaged
and equipped to build sustainability into their daily
work and our communities.

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HIGHLIGHTS

A Power PlayOur energy team has worked hard to deliver renewable
onsite projects like a combined heat and power
biomass facility in Georgia and offsite partnerships
like our wind farm in Texas that have put us on track todeliver our current targets. Building off their progress,
we’ve stepped that up for 2030. We’ve agreed topurchase 100% renewable electricity and will do this in
North America by 2020 and globally by 2030. We havealso committed to reduce scope 1 and 2 greenhousegas emissions by 50% by 2030, using 2010 as a baseline.
This science-based target aligns with climate science,and it will help us do our part to reduce the impact ofclimate change.

P&G will purchase 100%
renewable electricity inNorth America by 2020and globally by 2030.

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HIGHLIGHTS

A Sea of Change
We understand what’s happening to the world’s oceans,so that is why we have included a plastics pledge in our
Ambition 2030 goals. We are looking at holistic solutions
that will make it possible that no P&G packaging finds
its way to the ocean. We are reducing the plastic we use,
increasing recycled content and the recyclability of our
packaging, and leveraging innovation and partnerships
to help stop the flow of plastic into our oceans. Our
brands are bringing this to life:
Limited-edition H&S and Fairy bottles in several
European countries contain recycled beach plastic.
Almost 100% of the packaging used in Charmin, Puffs
and Bounty is recyclable. Lenor introduced postconsumer resin into transparent sizes in Europe andenabled the use of 3,100 tons of recycled plastic in 2017.

P&G is reducing the plastic we use
and increasing recycled content andthe recyclability of our packaging.

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HIGHLIGHTS

Partnering for Change
We know that no one company can do this alone andbelieve that collaboration will be critical to driving positivechange at scale. We’ve had some initiatives that we’ve beenable to bring to life with our partners. For example, we
worked with TerraCycle and Tesco to provide one lucky
school in the UK with a playground made with recycledplastic. In Italy, we worked with Carrefour to create asustainability campaign around beach litter that enabled
shoppers to help choose which beach to clean by providing
a donation with purchase. In Japan, Febreze partnered withTerraCycle and a national retailer to encourage shoppers tobring in used Febreze car air fresheners to their local shops
for recycling. These collections were recycled into raw
materials used to manufacture safety reflectors whichwere donated to schools ­— a great example of bringing
the circular economy to life.

Febreze, along with ourpartners TerraCycle and Tesco,
gave schools in the UK achance to win a playgroundmade from recycled plastic.

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HIGHLIGHTS

That’s Not Garbage
Our production sites are well on their way to reaching ourgoal of sending zero manufacturing waste to landfill by
2020. In fact, approximately 85% of our production sites
have successfully qualified as Zero Manufacturing Waste toLandfill sites. So how does this happen? It all starts withchanging the mindset to see waste not as waste, but asworth. Around the world, our employees have changed
their everyday behaviors, partnering with our Global Asset
Recovery Purchases (GARP) team to think of creative andinnovative ways to find new life for our materials. So
instead of sending those suds that don’t meet our specs tothe landfill, we sell them to carwashes. The scraps fromsome of our fem care products become cat litter. Old
shipping drums are repurposed into artistic waste bins,
school benches and tree containers. And there is a double
benefit — we create a more circular supply chain by
avoiding the landfill while also getting revenue for thiswould-be waste. Since the program started in 2008, it has
saved the Company more than $2 billion and has helped
divert five million tons of waste from the landfill.

85% of our plants
have achieved our2020 goal of sending
zero manufacturing
waste to landfill.

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Sustainability

Message from Shailesh Jejurikar>

Palm Oil>

Vision and Progress

>

Water

>

Brand Stories

>

Waste

>

Circular Supply Chains>

The Power of the P&G People>

Climate>Sustainable Innovation with Suppliers>

Greenhouse Gas Emissions>

Worldwide Health, Safety
and Environmental Systems>

Awards & Recognitions>

Environmental Resourceand Waste Summary>

Global Measurement andAdditional Operational Data>

Renewable Energy
Energy Conservation>>

Low-Energy Washing>

Renewable Materials>

Packaging>

Responsible Forestry>

Environmental Sustainability

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Environmental Sustainability

Message from
Shailesh Jejurikar“This year, we took a major step in renewing our commitment toenvironmental sustainability. In April, we launched new, ambitious
goals for 2030 that focus on where we know we can make themost meaningful difference—our brands, supply chain, society andemployees. We’ve already achieved many of our 2020 goals, andwe’re committed to stay on track so we can deliver the remaining
goals. However, achieving these goals is not enough. We know our
stakeholders want and expect more. With our global reach, ourunderstanding of the five billion people we serve and our innovationand supply chain capabilities, we have a unique ability to drive
positive impact in the world. We can be a force for good and a force
for growth, but we know we cannot do this alone. We will partnerwith consumers, industry, governments, civil society groups andacademics so that, together, we can make an even greater impact.”

Shailesh Jejurikar
President, Global Fabric Careand Brand Building Organization,
Global Fabric & Home Care,and Executive Sponsor,
Global Sustainability

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Environmental Sustainability

VISION AND PROGRESS

Ambition 2030
Ambition 2030 aims to enable and inspire positive impact on the environment andsociety while creating value for the Company and consumers. Our Ambition 2030
goals span our brands, our supply chain, society and our employees. We know P&G
alone does not have all the answers. It will take partnerships and collaboration to
make meaningful progress and take responsible consumption to the next level.

AMBITION 2030

BRANDSSUPPLY CHAIN

SOCIETYEMPLOYEESUse the power ofinnovation and our brands
to delight consumers anddrive positive impact

Reduce our footprint andstrive for circular solutions

Create transformative
partnerships that enablepeople, the planet and ourbusiness to thrive

Engage and equip P&G
employees to build
sustainability thinking andpractices into their work andtheir communities

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VISION AND PROGRESS

2020 Environmental Goals Progress
CLIMATE
Reduce energy use at P&G facilities by 20% per unitof production by 2020

Achieved — 22% reduction per unit of production

Reduce absolute GHG emissions by 30% by 2020

We have reduced absolute GHG emissions by 21%

Ensure 70% of machine loads are low-energy cycles

69% of loads are low-energy

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

Achieved — 100% third-party certified

Numbers are representative of progress since 2010

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

14% of energy is from renewable sources

Implement palm oil commitments
We continue to advance progress against our
three-pillar strategy

Create technologies by 2020 to substitute top
petroleum-derived raw materials with renewablematerials as cost and scale permit
We have developed the ability to substitute our top
petroleum-derived raw materials (resins, cleaning
agents and acrylates) with renewable materials

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VISION AND PROGRESS

2020 Environmental Goals Progress
WATER
Provide 1 billion people with access towater-efficient products

700 million people with access to waterefficient products

Reduce water use in manufacturing facilities by 20%
per unit of production with conservation focused onwater-stressed regions
Achieved — 25% reduction per unitof production

WASTE
100% zero manufacturing waste to landfill by 2020

85% of our manufacturing sites are ZMWTLHave 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

Reduce packaging by 20% per consumer use
Double use of recycled resin in plastic packaging
We have reduced packaging by approximately
13.5% per consumer use

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

We have achieved 86% and have strong, ongoing
effort to further increase recyclability

Numbers are representative of progress since 2010

We used approximately 38,100 metric tons of
PCR in our plastic packaging, getting us 46%of the way to our goal
Conduct pilot studies in both the developed anddeveloping world to understand how to eliminate
landfilled/dumped solid waste
We continue to make progress implementing
a variety of pilot projects with external partners

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VISION AND PROGRESS

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

GHG

21%
30%

21% absolute reduction
30% reduction perunit of production

Energy

Waste

Water

22%

81%

25%

5%

22% reduction perunit of production(exceeding goal early)
5% absolute reduction

79%

81% reduction in solid
waste with 85% of oursites achieving zero
manufacturing waste
to landfill
79% absolute reduction

Renewable Energy

14%
16%

25% reduction per unitof production (exceeding
goal early)
16% absolution reduction

Currently 14% of our
total energy comes fromrenewable sources

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Brand Stories
Head & Shoulders

BountyWe launched the Head & Shoulders Beach Bottle in

Bounty delivers more life per roll by providing superior

France in June 2017 to a positive reception. The bottle isabsorbency and strength. When people choose Bounty,

made with 25% recycled plastic collected from the beachthey can do more with less and make a sustainable

and has received broad recognition as a significant

difference because 100% of the wood fiber used to makeinnovation in sustainability, including the United

Bounty paper is from responsibly managed forests.

Nations’ Momentum for Change Award. With thisconsumer and commercial success, Head & Shoulders

100% of the wood fiberin Bounty rolls is from
responsibly managed
forests.

expanded this innovation to Germany, Spain, Turkey
and Israel and plans are in place for further expansion.

Fairy
Fairy Ocean Plastic bottles were launched in Europe
this year in partnership with TerraCycle. It was designed
to raise awareness of ocean plastic pollution and what
can be done to prevent plastic waste from reaching
the ocean. The innovative bottle is made from 10%
ocean plastic, collected from the ocean and beaches
around the world and is 100% recyclable (excluding
cap and label).

Puffs
Puffs provides soothing comfort to noses in need.
Puffs are made from softwood and hardwood fibersthat were produced to meet international standards
for responsible forestry.

CharminCharmin is soft and strong and lasts longer because
people can use less Charmin Ultra Soft and Charmin
Ultra Strong than the leading bargain brand. All
Charmin tissue products are made from wood fiber
which has been third-party certified to responsible
forestry standards, so you can confidently Enjoy the
Go and support healthy forests.

Our Fairy Ocean Plastic bottle
is made from 10% ocean
plastic and 100% recyclable(excluding cap and label).

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Brand Stories
Downy and Lenor – Long Live
Fashion FormulaHand-Me-Downy

When it comes to your clothes, it’s our business to clean

to landfills each year. One of the major reasons thisand our passion to care—for clothes and the planet. We
want to help people take the best care of the clothes
they love, so we can collectively reduce the impact
clothing has on our planet. We found that by caring
for clothes with what we call “the long live fashion
formula”—using a high-quality liquid or PODs like Ariel,
washing in quick and cold cycles and conditioning withIn North America, millions of tons of clothing are sent
happens is because clothes aren’t well cared for, andthey wear out too soon. To help keep clothes in closets
and out of landfills, Downy encouraged Canadianfamilies to swap clothes their kids had outgrownthrough the first “Hand-Me-Downy” program. Downy
sent Canadian families kits to host their own clothingswaps, including invitations and bottles of Downy to

Downy or Lenor—we can quadruple the clothes’ life.

protect the clothes they love so they can be worn and

In Europe, we tested a typical household laundry basket

the swaps, each family received ‘new to them’ clothes atwith this treatment vs. using a competitive powder at
a 40°C cycle and found that we could keep clothes likenew for 4x longer than with the alternative treatment.
To drive awareness of this within the fashion industry,
we attended the Copenhagen Fashion Summit (CFS).

handed down, not worn out and thrown out. Throughno cost, and every article of clothing found a new home,proving that caring for clothes is better for wallets andthe environment!

Bert Wouters, VP for the Fabric Enhancer Franchise

Oral-B

globally, emphasized to the audience the impact each

Oral-B wants to help put some power in yourof us can make by using the right laundry procedure. He

toothbrush while also helping the planet. Our powershared compelling information, including the fact that if

brushes have a long lifecycle and are often used by

Europeans extended the life of one in five garments byconsumers for up to five years before being replaced.

just 10%, that would translate to saving enough carbon

Electrical brushes use rechargeable batteries as ato power half a million homes for a year and more thansource of energy and enable a much higher product150 million liters of water from slower-paced clothing

performance versus disposable batteries. This results in

production.

longer lifecycle and less waste. Since July 2017, Oral-B
has extended its range of products featuring Lithium
Ion batteries which significantly increase the lifecycle ofthe brushes. These batteries are built into most Oral-B
power brush models, from the Pro-2000 to our mostpremium Genius brushes.

Using Ariel with quick, cold cycles
and conditioning with Downy or
Lenor were proven to keep clothes
like new for 4x longer.

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Environmental Sustainability

Circular Supply Chains
Circularity has always been a part of ourongoing conservation and environmental
footprint reduction efforts within water,
waste and renewable energy. However, as
we look toward the next decade, we arecommitted to be both a force for good anda force for growth. As part of that vision,
we have embraced the need to create amore circular end-to-end supply chain. To
achieve this, we will need to start thinking
differently about the incoming materials,
manufacturing work process, distribution,and transport of our products. Circularity is
not only the right thing to do, it also helps
make our operations more efficient andresilient.
We have established specific targets that we intend

To learn new methods, find creative partners and toaccelerate our circular journey, we recently joined
the Ellen MacArthur Foundation Circular Economy
100 working group. The Circular Economy 100 is a
pre-competitive innovation program established toenable organizations to develop new opportunities
and realize their circular economy ambitions faster.
It brings together corporations, governments andcities, academic institutions, emerging innovators andaffiliates in a unique multi-stakeholder platform.

ELLEN MACARTHUR FOUNDATION

to achieve by 2030:
1. 100% renewable electricity and cut GHG emissions

CIRCUL AR ECONOMY

in half at P&G sites
2. P&G sites will deliver a 35% increase in water
efficiency and source at least five billion litersof water from circular sources
3. Advance at least 10 significant supply chain
partnerships to drive circularity on climate,water or waste

CE-100 MEMBER GROUPSPart of our 2030 vision is making amore circular, end-to-end supply
chain to improve efficiency andreduce waste.

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Environmental Sustainability

ClimateWe recognize the scientific consensus
linking greenhouse gas emissions andclimate change. As a global citizen, we areconcerned about the negative consequencesof climate change and believe action by
governments, industry and consumers
to reduce emissions to the atmosphere isnecessary. We are committed to doing ourpart to reduce greenhouse gas emissions
including adopting science-based targets toensure we are contributing our fair share.
We are striving to reduce emissions from our own
operations via increased use of renewable energy andhave a relentless focus on energy efficiency. We are also
helping consumers reduce their own emissions through

Please click on the links below to learn more about
our climate change efforts:

GREENHOUSE GAS EMISSIONSRENEWABLE ENERGYENERGY CONSERVATION

LOW-ENERGY WASHING

For more information, read our climate change policy.

CLIMATE CHANGE POLICY

our efforts to convert more machine-washing loads tolow-energy cycles.
In 2018, we further strengthened our long-term
commitment by announcing two new goals as partof our Ambition 2030 framework:• We will reduce our Scope 1 & 2 greenhouse gas

We will reduce our Scope 1 & 2
greenhouse gas emissions by
50% by 2030.

emissions by 50% on an absolute basis by 2030 (vs.
2010 baseline). This is our second science-based target
and complements our initial science-based target of a
30% reduction in Scope 1 & 2 emissions by 2020.
• We will purchase 100% renewable electricity in North
America by 2020 and globally by 2030. These targets
will further advance our efforts to increase our use ofrenewable energy.

For additional perspective on climate change
implications that could be relevant for the Company
and the steps we are taking to address them, please
download our climate change perspective document.
CLIMATE CHANGE PERSPECTIVE

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Greenhouse Gas Emissions
Scope 1 & 2 GHG Emissions
In 2018, we made another significant step on our

Reduction in Energy Consumption

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

Percent reduction versus FY09/10 ,production adjusted

journey to reducing greenhouse gas (GHG) emissions
with the announcement of Ambition 2030. We havecommitted to cutting our absolute GHG emissions inhalf between 2010 and 2030. This was verified by the
Science Based Targets Initiative as a goal that is in linewith what leading climate scientists state is necessary
to prevent global warming from increasing two degrees

FY17/18-18%

FY16/17
FY15/16

FY17/18 -21%

-22%

-21%

FY16/17-14%

FY15/16-14%

Celsius versus pre-industrial era temperatures. We aremembers of the World Wildlife Fund (WWF) Climate
Savers program and worked in collaboration with WWF

Energy Consumption by GBU

to develop this key milestone target.

Millions of gigajoules

SCIENCE BASED TARGETS

Cutting our Scope 1 & 2 GHG emissions in half is astretching target, and there is a great deal of work
to do. The foundation of our program will continue

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

4.3

61

FY17/1860

FY16/17

4.7

FY16/1759

FY15/16

4.7

FY15/16

FY17/18

to reside in improving energy efficiency. However,efficiency improvements alone will not be sufficient toachieve an absolute 50% reduction as we continue toBaby, Feminine & Family Care

BeautyBaby, Feminine & Family Care

Beautyserve the needs of a growing consumer population.

FabricHome Care
Grooming
P&G
has &retained
Lloyd’s Register Quality
Assurance

Fabric & Home Care

Grooming

To meet this target, as part of our Ambition 2030 goals,

Other
HealthtoCare(LRQA)
provide independent verificationof our

Health CareOther

we have committed to obtain 100% of our purchased

GHG program to ensure it meets the intent of theelectricity from renewable sources by 2030. Moving toWorld Resources Institute/World Business Council

renewable sources of electricity will eliminate most of

for Sustainable Development (WRI/WBCSD)

our Scope 2 emissions.

GHG protocol.

Our move to purchasing
100% of our electricity
from renewable sources
will eliminate most of our
Scope 2 emissions.

LLOYD’S REGISTER QUALIT Y ASSURANCE

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Environmental Sustainability

Greenhouse Gas Emissions
Scope 3 GHG Emissions
Over the last two years, we have expanded ourestimates for Scope 3 emissions to include all majorreporting categories. This updated data is included in
the table to the right. We derived this data from lifecycle
assessments that we have completed for our major
categories as well as other sources such as employee
travel miles. This exercise reinforced that the “use phase”
of our products, especially those that use hot water
during consumer use, is our single greatest opportunity

Scope 3 Categories

Purchased goods and services — upstream
transport & distribution

Tons CO2e

8,560,000*

Capital goods

246,508†

Fuel & energy activities

495,398†

Waste generated in operations

9,035†‡
100,000*

for Scope 3 emissions.

Business travel

As noted in the table, some data was derived in FY15/16

Employee commuting

117,412†

Upstream leased assets

Not material

and was based on Life Cycle Assessment data. We do
not expect large changes in these numbers from year
to year, and it is clear from the data that the productuse phase is the overwhelming majority of Scope 3
emissions. We intend to update Scope 3 emissions innext year’s report.

Downstream transport & distribution
Processing of sold productUse of sold productEnd of life treatment of sold product

3,195,000*
Not material

186,500,000*
10,950,000*

Downstream leased assets

Not material

Franchises

Not material

Investments

Not material

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

†

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Environmental Sustainability

Renewable Energy
We continue to look for unique global
projects and partnerships that will allow us tosource 30% of our total energy, both thermaland electric, from renewable sources by 2020.
Currently 14% of our energy comes fromrenewables, and we are on track to meet our2020 target.
As part of our new Ambition 2030 we have set a
stretching new vision of purchasing 100% renewableelectricity by 2030 for our global facilities. To jumpstart
this program, our team is looking to reach 100%

Our wind farm in Texas (which provides 100% of theelectricity needed for our Fabric and Home Carefacilities in the U.S. and Canada to produce brands
like Tide, Downy, Cascade and Mr. Clean) and an onsite
combined heat and power biomass facility in Georgia(which provides 100% of the steam needed to make
Bounty and Charmin) continue to remain the shiningstars of our renewable energy program. These largescale partnerships, along with multiple smaller global
onsite/offsite projects utilizing solar, geothermal andhydro, have provided key learnings and the foundationfor our vision to use 100% renewable energy.

renewable electricity in North America by 2020 (10years ahead of our global commitment). North America
is P&G’s largest consumer market. Purchasing 100%
renewable electricity will allow our consumers to knowthat the brands they have come to know and trust forsuperior performance and value are also being madeat sites that purchase 100% renewable electricity.

The biomass facility inGeorgia provides 100% of
the site’s steam needed tomake Bounty and Charmin.

P&G will use 100%
renewable electricity
by 2020.

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Energy Conservation
We continue to make solid progress in
reducing our energy footprint. We have
improved energy efficiency by 22% since2010, achieving our 2020 goal several
years early.
The strengths of our energy program rest on three
key strategies:
1. Operating with zero losses or defects
2. Investing in new technologies to improve efficiency
and deliver savings
3. Leveraging Total Employee Ownership
We have an Energy Team that delivers tools andsystems integrated with our manufacturing work
systems to reduce losses and continuously improveand solutions. Because of the dedicated focus of
the team, they were able to analyze data from theiroperations and implement several projects improving
their efficiency. This includes improvements in shutdown
practices, roof materials, integrated cooling system
controls, vacuum system improvements and drive
system efficiencies. Overall, the site has increased
energy efficiency 51% since FY 09/10.

Energy Success Stories
Mechelen Plant, Belgium
Another example of these focused efforts can be seenat our Mechelen plant in Belgium. The site energy
team developed an action plan to improve the energy
efficiency of making automatic dish washing podsdelivering a 22% reduction vs. the same six month

operating efficiency. We continue to focus on enabling

period the previous year.

our people to identify and quickly eliminate losses

The key areas where they drove efficiency

in energy consumption. We are also benchmarking

improvements were regular air leak and defect audits,

Our Louveira plant in Brazil improved
their efficiency reducing emissions andsaving millions of dollars.

efficiencies internally and externally to determine where

improved production throughput, focused shutdown

we can invest in new technologies to improve basepractices and improved process settings on their air

Amiens Plant, France

operating efficiencies. It’s because of these efforts wehandling systems.

At our Amiens site in France, where we produce ourhave improved energy efficiency by 22% since 2010
which has resulted in hundreds of millions of dollars indirect savings and reduced emissions.
A good example of how we bring this to life is at our
Louveira plant in Brazil. The plant expanded theloss elimination culture by creating a Sustainability
Committee that targeted consumption, reduction“Our site continues to produce high quality
product to delight consumers with a reduced
environmental impact, contributing to theconservation of natural resources.”– Niels Jacobs, Site Energy Leader

and responsibility in each footprint area including

Baddi Plant, India

energy. The team is made up of employees across all

We installed an innovative new heat pump at our

departments and uses the power of Total Employee

Gillette blades and razors plant in Baddi, India. This

Involvement to speed up identification, quantification

allowed the site to save money and exceed goals onenergy efficiency improvements and GHG reductions.

Ariel, Lenor and other Fabric Care products, we installed
electric heat pumps to provide indoor heating andeliminated the need for additional steam generated
from fossil fuels. Because this plant uses 100%
renewable electricity, the electric heat pumps help
reduce our GHG emissions.

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Environmental Sustainability

Low-Energy Washing
The energy used during the machine
washing of laundry is one of the biggest
impacts on our corporate GHG emissions
footprint and, as such, we have been focusedon innovating to enable consumers to getclean clothes using less energy. Our goal isto have 70% of all global washing machineloads done in low-energy cycles by 2020.
This year, we are at 69% thanks to consumer
habit changes in machine technology andinnovation that gets clothes clean in cold
conditions.

Innovating to Get Clean in Cold
We continued to innovate all our detergent formulas
for best performance in low-energy cycles. In North
America, this year we further increased sales of Tide HE
Turbo, which is specifically designed to perform wellin the strongly growing segment of HE machines andshorter washing conditions.
We introduced a new enzyme into our Tide detergentsthat we co-developed with Novozymes. This amylase
enzyme is specifically designed to work well in low
temperatures—meaning it can work quickly to attack
tough stains in even the coldest washing conditions.
More than 40 specialized scientists from around theglobe worked for nearly two years, applying leading
techniques in enzyme optimization, including 3Dcomputer modeling, advanced data analytics andhigh throughput robotic systems to evaluate hundredsof thousands of enzyme molecules. This processcontinued until the team finally identified a winning
enzyme that could perform in both cold and quickconditions. “Arctic,” as this enzyme is named, isinspired by the frigid and challenging conditions of thearctic waters and tundra. Arctic is a fast and efficient,biodegradable cold-water enzyme, making it perfectfor use in Tide.

We partnered to create a
new enzyme specificallydesigned to work well in
low-temperature washing.

Our goal is to have 70% of all
washing machine loads donein low-energy cycles by 2020.

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Low-Energy Washing
Steps in the Right Direction
With a strongly growing high-efficiency washingmachine segment in North America, we focusedparticularly on ensuring that HE machine users havethe best possible outcome in energy-efficient cycles

washing machine manufacturers globally to help
educate consumers about the benefits of quick andcold water washing cycles and will again reach about
18 million households next fiscal year.

through Tide HE Turbo Clean and education on the use

We believe low-energy cycles are not only a win forof quick and cold cycles.

the environment but a win for consumers, since colder,

We also continued to grow and support our plantbased laundry detergent, Tide purclean, which offers
great cleaning performance even at low temperatures.
Tide purclean is USDA-certified bio-based and has 4x
the cleaning power of the leading natural detergent.1
Due to its ‘no compromise performance’, it was recently
awarded the Environmental Leader’s Product of
the Year.
Ariel has been at the forefront of driving consumer
behavior change when it comes to washing at cold
temperatures with our long-running ‘Turn to 30⁰’

Our “Turn to 30°” campaign
asked people to makepledges to turn down
washing temperatures to
30° to reduce their energy
consumption.

As in previous years, we continue to partner with top

campaign. It was why, this year, Ariel partnered withWWF UK to encourage people to make a promise forthe planet in line with Earth Hour. People were asked tomake one of seven pledges to protect the planet, one ofwhich was “turn down washing temperatures to 30⁰.”
For every pledge made with #PromiseForThePlanet
and #EarthHourUK, Ariel donated one euro to WWF
UK. Across March and April, the campaign reachedmore than 326 million people, and WWF UK saw morethan 58,000 pledges made across the country. Almost
a quarter of these pledges were to turn down washingtemperatures to 30°.

shorter cycles mean saving on energy bills and reducing
damage to clothes from long, high-temperature cycles.
While there will always be some loads washed at higher
temperatures, we expect the trend towards moreenergy-efficiency cycles to continue over the coming
years. Given that, we will remain focused on enabling
consumers to adopt more sustainable, low-energy
washing habits without compromising on the clean
they need.
One dose Tide purclean vs. four doses leading natural
detergent.

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Environmental Sustainability

Renewable Materials
We are continuing our efforts to develop
the ability to replace our top fossil-derived
materials with renewable materials. We
have identified cleaning agents, resins andacrylates as our top fossil-derived materials.
We have previously reported on establishing
our ability to replace resins and cleaning
agents with renewably-derived materials.
We have now established this capability
for acrylates.
Acrylates are a key constituent of the superabsorbent
materials used in our absorbent hygiene products. We
have developed two technologies to produce renewablesuperabsorbent polymers from lactic acid which haveidentical properties as fossil-derived superabsorbent
polymers. These patented technologies have been
demonstrated at lab scale, and we are currently seeking
to license these technologies to external parties withhopes of enabling production and commercialization
at scale.
Now that we have achieved our goal, we will look foropportunities to utilize these materials as cost andscale permit. Two examples of our use of bio-resin arehighlighted to the right.

Tampax and Pampers
Tampax recently launched a 90% plant-based plastic
tampon applicator on its Cotton Comfort line in France
and Pure & Clean line at Target (U.S.). This innovative
material is made from sustainably-sourced sugarcanefrom our supplier Braskem® in Brazil. P&G also sources
this bioplastic for use in Pampers Pure. The sugarcane
is converted into ethanol and eventually into plastic
utilizing a by-product from the rest of the plant toprovide some of the energy needed to fuelthis process.
The sugarcane is certified to the Bonsucro® standard,
which has a mission to ensure that responsible
sugarcane production creates lasting value for people,
communities, businesses, economies and ecosystems.
Also, the “I’m Green™” bioplastic production processes
are certified by International Sustainability and Carbon
Certification (ISCC Plus), an international certification
system for biomass and sustainable fuels that sets
specific production standards.
The sustainable innovations in Tampax and Pampers
to include sustainably sourced bio-materials supports
our 2020 goal to “develop the capability to replacepetroleum-derived raw materials with renewablematerials as cost and scale permit.” The use ofsustainable bio-polyethylene from sugarcane is theresult of years of research and partnership with World
Wildlife Fund, the Bioplastic Feedstock Alliance andother research partners.

After years of research,
Tampax and Pampers
use sustainably sourced
bio-polyethylene fromsugarcane.

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Environmental Sustainability

Packaging
Reduce Packaging By 20% Per
Consumer Use
Our goal is to reach 20% reduction per consumer use
in packaging, and this year we were able to achievea slight increase of 0.5% against our goal despite
significant external headwinds impacting our results.
We have now achieved a reduction of 13.5% vs. our 2010
baseline. The primary challenge we face in this area
is customer requests for smaller case counts which
require an increase in our use of corrugate (shippingboxes). Corrugate is renewable, has a high recycle
content and is recycled at a high rate—all of which help
to mitigate impacts from increased use of corrugate.
While we are proud of the significant reduction inpackaging we have achieved so far and will continue
our efforts to reduce even further, current headwinds
are such that it will be very difficult for us to achieve
our original target by 2020.

Ensuring 90% of Our Packaging is
Recyclable or There Are Programs
In Place to Develop the Ability to
Recycle It
For FY17/18, 86% of our packaging is considered
recyclable, and we are working hard to continue
to optimize the designs and advance the recycling
infrastructure. We continue to expand many of ourbrand programs, including the shrink sleeve wrap forLenor in the UK and Air Care recyclability programwith TerraCycle, for example. A new program wasannounced this year, Materials Recovery for the Future,that has the potential to introduce new materials into
the recyclability stream. We are also encouraging
consumers to increase recycling of our packaging by
expanding use of the How2Recycle label across ourbrands in North America.
During FY17/18, our use of plastic packaging was

Double the Use of Recycled Resin in
Plastic Packaging

approximately 55% polyethylene, 15% polypropylene and
10% PET. The remainder consisted of mixed and otherplastics. During FY18/19, we will continue our efforts on

We have committed to double the use of recycled

the goals listed above and will be developing additional

resin in our plastic packaging. This year, we usedperspective on our use of plastics which we will share inapproximately 38,100 metric tons of post-consumer

our next report.

resin (PCR) in our plastic packaging, which represents
an increase of approximately 46% vs. baseline. Our goal
is to get to 52 kiloton of recycled resin, and we haveidentified several projects that we believe will help
us deliver our goal. We are currently working with ourbusiness units to ensure we have adequate time to
execute the needed projects by 2020.

86% of our packaging is
considered recyclable.

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Packaging
Materials Recovery for the Future

Pantene Success Story

We are taking a leadership role working in collaboration

P&G’s Eastern European Team delivered exceptionalwith other brands, retailers and recyclers on a researchvalue via partnership with the Beauty Care Businesspilot called Materials Recovery for the Future (MRFF).

Unit to reduce waste and improve recyclability. The

The goal of the pilot is to test the technical andteam replaced plastic gift set trays with pulp trays that

economic feasibility of adding lightweight flexible

were not only made of recycled paper but are also fully

plastic packaging formats to municipal recycling so that

biodegradable. This innovation allowed P&G to increase

one day consumers can simply place this packaging in

our use of recycled fiber while saving 48,000m3 of

their curbside recycling with other recyclables. In 2016

water and 960,000 kW of electricity.

and 2017, we studied how flexible plastic packaging
flows in a recycling system, what equipment is mostefficient to sort it and what products could be madefrom the recycled material. We also selected a recycling
facility partner—JP Mascaro Sr. and his team at
TotalRecycle, a state-of-the-art, family-owned businessin Berks County, PA serving municipalities throughout
the state.
In 2018 and 2019, we will continue to work with our
MRFF partners and JP to upgrade TotalRecycle to sortand bale this packaging as a new recycled feedstock
for product manufacture. The data will be available
for other communities and facilities interested in
upgrading their facilities to recycle flexible packaging.

Our new pulp gift set trays are
made of recycled paper and are
fully biodegradable.
Researchers and P&G’s Steve
Sikra sort through packaging
to be recycled.

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Responsible Forestry
Forests are critical to earth’s ecosystemand to the plants, animals and humancommunities that depend of them. The
world’s forests hold the potential to mitigate
some of the most important threats weface, such as climate change, but theyremain under pressure from population
increases and economic demands. One of
the easiest ways to counteract threats toforests is by looking for and purchasing wood
products which are sourced from responsibly
managed forests and tree plantations.

We have maintained our commitments to ending andreversing deforestation by sourcing wood products
certified to leading international forest certification
standards. Earlier this year, we announced new nearand long-term commitments, included in our Ambition
2030 goals, to protect and enhance the forests wedepend on. Specifically, we intend to increase the areaof certified forests globally, while working to strengthen
leading certification systems. In addition, we will playa leadership role in developing a collaborative sciencebased Forest Positive approach that supports sustaining
and expanding working forests that we and others
depend on.
Although we do not own or manage commercial
forests, many of our products and packages are
dependent on raw materials from forest-based supply

We are striving to protect
and enhance the forests
we depend on.

chains. Therefore, we play a key role through our
procurement and manufacturing practices to ensure
the sustainability of the world’s forest resources.
Wood pulp for tissue/towel and absorbent hygiene
products, wood fibers used in paper packaging, andpalm oil for our laundry and beauty products are
strategic commodities where our sourcing practices
have the greatest impact on ensuring responsible use of
the world’s forest resources. Each of these materials has
a different supply chain and their unique complexities
led us to develop individual programs as described in
the following sections.

Environmental Sustainability

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Responsible Forestry
Wood Pulp Supply Chains
Procurement Policy
As part of our procurement practices, we require that
all wood used for pulp supplied to us has undergone
a risk assessment in accordance with the Forest
Stewardship Council® (FSC®) Controlled Wood standard.
The FSC Controlled Wood risk assessments ensure thatunwanted wood sources are avoided and that wood

• Ensure that trees are not harvested from high-Third-Party Certificationconservation-value forests unless they are credibly

100% of the virgin wood pulp we purchase for use

certified to the most rigorous forest managementin our tissue/towel and absorbent hygiene products

standards. P&G supports multi-stakeholder efforts tois third-party certified by one of our accepted forest

develop information sources and tools that will help

certification programs.

suppliers identify these areas on their own forestlands
and in their procurement of wood raw materials fromthird parties (e.g. www.hcvnetwork.org).

We give preference to FSC® certified pulp when it isavailable and meets product performance and business
requirements. FSC certification protects water, wildlife

harvesting is done legally per our procurement policy.

• Ensure that there is no sourcing from geneticallyand local people by ensuring forests are responsibly

We have a preference for FSC, which makes use of bothmodified trees in pulp delivered to us.

managed. FSC standards are recognized worldwide as

FSC Chain of Custody (FSC COC) and Controlled Wood
(FSC CW) inputs.
We require that the forest certification systems utilized• Ensure that their own and their supplier practices
reflect our social values and support of universal
human rights through work with local governments

by our wood pulp suppliers adhere to the following

and communities to improve the educational, cultural,

criteria for responsible forest management:

economic and social well-being of those communities.

the most stringent forest management certification
scheme and are supported by leading international
environmental NGOs.
Based on the market availability of certified pulp,
P&G’s supply chain will also source from other thirdparty forestry certification systems. They include:• Ensure the safety of forestry and manufacturing• Ensure that their supply chain used to produce our pulp

operations for employees and the environment.

does not contain fiber from conflict timber (timber• Programme for the Endorsement of Forestthat was traded in a way that drives violent armed

Certification (PEFC)• Ensure that unwanted wood sources are avoided
and that wood is legally harvested and that all legal
requirements are met. P&G will not knowingly use
illegally sourced materials in our products.
• Ensure that their supply chain incorporates theprinciples of responsible forest management andconflict or threatens national or regional stability).
PROCUREMENT POLICY• Sustainable Forestry Initiative® (SFI)• Brazilian Forest Certification Programme (CERFLOR)• Canadian Standards Association (CSA) Group• Sustainable Forest Management System (SFM)

continuous improvement in their own operations andthat they are verified by independent forest and chainof-custody certification.

We prefer FSC certified pulp
because the certification
ensures forests are
responsibly managed.

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130

Responsible Forestry
Pulp for Our Tissue/Towel andAbsorbent Hygiene ProductsWorking Together to Makea Difference

FSC Group Certificate Support
Owners Association (FSTOA), led by Domtar, to discuss

In fiscal year 17/18, we purchased 1.5 million metric tons

P&G is a proud participant in World Wildlife Fund’sof air-dried pulp for use in our tissue/towel, diaper and(WWF®) Global Forest & Trade Network (GFTN), a

absorbent hygiene products. The pulp was sourced

corporate forum for supporting responsible forestfrom the following countries and used the following

management and forest product sourcing.

third-party certified fiber:Country of Origin

Argentina

Many of our projects and activities are inspired by our% of Total

1%

Brazil34%

Canada33%

United States
Total

32%
100%

commitments as participants in GFTN such as:• Continuing to implement our preference for FSC
certification, including overall volume increases
in FY17/18.

FSC COC37%

FSC CW

7%

PEFC

30%

SFI

26%

Total

100%

FSC COC — FSC Chain of Custody
FSC CW — Controlled Woodforest management certification.
FOUR STATES TIMBERL AND
OWNERS ASSOCIATION

Together, we are committed to lowering the technicaland financial hurdles to increasing forest certificationin family-owned forests through Domtar’s FSTOA FSC• Continuing support for efforts to expand group
certification for family forest owners in the U.S.

Our participation supported the growth in certified

with Domtar.

lands, and we continue to support the operation and• Progress in the Coastal Carolinas landowner
outreach project.

convene discussions with other companies and% of Total

expanding the amount of timberland that is undergroup certificate.

• P&G’s efforts at Tissue 2017 Conference & Expo to
Certification System

In 2016, P&G met with the Four States Timberland

NGOs about sustainable forestry and Caribou
issues in Canada.

We are a proudparticipant of WWF’s
Global Forest & Trade
Network, working withpartners that support
responsible forest
management.

expansion of the association. The FSTOA is now working
towards having 600,000 acres of timberland under FSC
group certification.

P&G’s Charmin toilet tissue
and Puffs facial tissue
products are FSC certified
by Rainforest Alliance.

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Responsible Forestry
Carolinas Working Forest
Conservation Collaborative Update
In May 2016, we helped launch the Carolinas Working

practices to ensure that the wood fiber in our packaging
has been responsibly sourced. We have made a specificcommitment that by 2020, 100% of our paper packaging
will contain either recycled or third-party-certified

Forest Conservation Collaborative (CWFCC), a collection

virgin content. Over the last year, we have expandedof organizations led by the American Forest Foundation

our efforts to collect data from an increased number ofworking together to help family forest owners manage

suppliers to assess progress against this goal. This year,

their land sustainably.

we have received data from more than 100 suppliers

The current project area consists of 5,946,494 acres,almost three times larger than our original goal of
2.4 million acres. Because of the early success of thethat represent more than 95% of our global paper
packaging spend. This data, which was self-reported
by our suppliers, is summarized in the following table:

program, all the original goals have been expanded.
For example, the project is now looking to reachout to almost four times as many forest owners anddirectly engage twice the number of forest owners inworkshops and field days to increase knowledge of

By 2020, 100% of our paper
packaging will contain either
recycled or third-party-certified
virgin content.

forest stewardship and practices.
We are pleased with the early success of the program
which enjoys the direct support of more than 20 leadinginternational, national and regional conservation
organizations.

Total volume in metric tons

~700,000% Recycled85%% Virgin15%% of virgin fiber that was
third-party-certified

91%% of total recycled or
third-party-certified virgin

98.5%

Paper Packaging
We continually strive to optimize the design of our
packaging aiming to use the least amount of material,
while ensuring adequate protection, delivery and safeuse of our products. As part of our ongoing efforts, we
continue to identify source reduction opportunities
to decrease overall material usage and to use recycled
paper when it offers the best option to meetThis year, 98.5% of the volume reported by our
suppliers was either recycled or third-party-certified
virgin content. That means less than 2% of the reported
volume was virgin material that was not third-partycertified. We also experienced a 12% reduction in the
total metric tons because of initiatives to reduce our

performance and business requirements.

overall use of paper board. Over the course of the next

Our paper-based packaging is derived from wood fiber,

suppliers to get to our goal of 100%.

and we have a responsibility through our procurement

years, we will remain focused on working with ourIntroduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Palm Oil
Palm Oil (PO) is an important, versatile andhighly efficient vegetable oil that is used asa raw material by both food and non-foodindustries. In some regions of the world,
the rapid expansion of PO production has
threatened environmentally sensitive areasof tropical forests and peat lands and has
resulted in incidents where the rights of
independent smallholder farmers andindigenous peoples have been infringed.
We are committed to ensuring that our sourcing ofpalm oil does not contribute to deforestation andrespects the rights of workers and indigenous peoples.
We are members of the Roundtable on Sustainable
Palm Oil (RSPO) and support their standards to drive
responsible palm practices across the industry. In
addition, we have established a robust approach toensuring the responsible sourcing of palm-derived
materials which includes supplier management,
improving lives of smallholders and industry influence.

Palm Oil Procurement Policy
P&G is committed to ensuring our suppliers meet
RSPO Principles and Criteria (P&C) and have thenecessary policies and procedures in place to ensure:• No development of high-conservation-value (HCV)
areas and high-carbon-stock* (HCS) forests• No new development of peat lands regardlessof depth• No burning to clear land for new development
or replanting• Compliance with P&G’s existing Sustainability
Guidelines for External Business Partners• Respect for human and labor rights• Respect for land tenure rights, including rights ofindigenous and local communities to give or withhold
their free, prior and informed consent for developmentof land they own legally, communally or by custom.
All of our suppliers have submitted their relevant
policies and procedures to demonstrate how they willmeet our requirements. If we find a supplier is violating
any of the above requirements, and if that supplierdoes not acknowledge and take action to resolve
the concern, P&G will suspend or eliminate palm oilpurchases from that supplier. A supplier would needto have a documented action plan and demonstratemeaningful progress to be considered for reinstating
supply agreements.
*The High Carbon Stock Approach (HCSA) Toolkit should beapplied to identify and conserve HCS forests. We have been
supporting inclusion of HCSA to the 2018 RSPO P&C and are
expecting to incorporate the revised P&C for verifying ourcommitments.

We are working with ourpalm oil suppliers to ensure
responsible sourcing.

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Palm Oil
Progress
During FY17/18, key milestones included:
Greatly increased transparency of our supply chain by

Announced a major commitment as part of our Ambition
2030 program to significantly scale our smallholder
program which is focused on improving the livelihoodsof the smallholder farmers in our supply chain.

publishing both palm oil supplier names and a detailed
list of the palm oil mills in our supply chain.
PALM OIL MILL LIST

Explored key drivers of land use planning to help usprioritize our efforts. You can read key learnings fromthat exercise here.
DRIVERS OF L AND USE PL ANNING

Maintained 100% RSPO certification for palm oil/palm oil
derivatives and continued to make progress in ourefforts to source 100% of our palm oil as RSPO Segregated(SG) by the end of 2018. We remain on track to hit thatgoal and are developing plans to procure 100% of our

You can read more about the detailed progress in eachof our three pillar areas by clicking on the links below.

palm oil derivatives as RSPO SG by the end of 2020.
PILL AR I: SUPPLIER MANAGEMENT

Completed a comprehensive palm oil mill risk assessment
to understand which palm oil mills in our supply chain

This year, we seeked to gaina better understanding ofdrivers of land use planningwithin the palm industry.

PILL AR II: SMALLHOLDERS

are located in areas considered to be high-risk. Roughly~7% (~90 mills) were found to be in high-risk locations,and during FY18/19 we will focus on developing
additional verification programs for these sites.

Continued to play a leadership role in multi-stakeholder
discussions seeking to advance a consensus
approach to assessing High Carbon Stock areas via
our participation in the High Carbon Stock Approach
Steering Group.

PILL AR III: INDUSTRY INFLUENCE

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Palm Oil
MetricTons*

RSPO
Certified (%)

RSPO MB
Certified (%)

Palm Oil/Palm Oil Fractions

55,834100%

94%

Palm Oil Derivatives

64,263100%

95%

Pillar I: Supplier Management
Palm Oil
We use ingredients derived from palm oil and palm oil
derivatives in Beauty Care and Fabric Care products.
Our major PO and POD suppliers are Wilmar, Golden
Agri, Musim Mas and Apical.
We are proud of our progress on palm oil and are on
target to deliver 100% RSPO SG palm oil by the end of
2018. We’re also developing plans to move our palm oil
derivatives to RSPO Segregated (SG) by the end of 2020.
Until that time, we will maintain our palm oil derivatives
to be RSPO Mass Balance (MB) Certified. Our ability
to achieve that may be influenced by broader market*This represents the total volume of PO and PO derivatives purchased by P&G. Approximately 95% of this is used internally by P&G
brands. The remaining 5% is sold to external parties through our P&G Chemicals division

dynamics and supply availability, but we have alreadyland pressures, and the greatest impacts can be

engaged with our suppliers on plans to achieve this goal.

achieved by industry placing a disproportionate focus

This is consistent with our belief that it is the demandon driving sustainable palm oil production practices

for palm oil that is driving forest conversion and peat

across all categories and regions that use palm oil.

Palm Kernel Oil
We use ingredients derived from palm kernel oil andpalm kernel oil derivatives in some Fabric Care, Home

MetricTons*

RSPO
Certified (%)

RSPO MB
Certified (%)

Care, Hair Care and Beauty Care products.

Palm Kernel Oil

317,7965%

5%

Thanks to a unique partnership with the Malaysia

Palm Kernel Oil Derivatives

72,1640%0%Institute for Supply Chain Innovation and FGV, oursingle largest PKO supplier, we have gained significant
visibility to the sourcing plantations and regions of*This represents the total volume of PKO and PKO derivatives purchased by P&G. Approximately 65% of this is used internally by P&G
brands. The remaining 35% is sold to external parties through our P&G Chemicals division

FGV’s PKO supply chain. In fact, we now know thatabout 96% of our palm kernel oil was sourced from aknown subset of FGV’s palm oil mills. FGV is currently
on a glidepath to re-certify their mills which voluntarily
withdrew their RSPO certification in 2016. As FGV
progresses their recertification efforts, our percentage
of RSPO MB certified PKO will increase. This glidepath

should drive our RSPO certification levels for a year-on-

in the percent of physically certified RSPO PKO we buy.

year increase in certified PKO. Given the complexity of

We are also focusing our smallholder efforts on our PKO

the PKO supply chain and a lack of supply of physicallysupply chain as we know we have a large concentration

certified PKO, our commitment is to work with our PKO

of smallholders in our Malaysian PKO supply chain. You

suppliers to aggressively drive year-on-year increases

can read more about those efforts here:

PILL AR II: SMALLHOLDERSIntroduction

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135

Palm Oil
Pillar I: Supplier Management
Risk Assessment and Verification
We expect all suppliers (including their third parties)
to fully comply with our Responsible Sourcing policy
and will act swiftly to address any allegations of noncompliance. To help inform our efforts on verification ofcompliance, in FY17/18, we conducted a risk assessment
using the PALM Tool (Version 2: Updating the PALM Risk
Assessment Methodology. Sargent et al., publication
forthcoming) on the World Resources Institute’s (WRI)
Global Forest Watch Pro (GFW Pro) to identify palm
oil mills in our supply base that are at a high risk basedon presence of deforestation risk factors in the areasurrounding the mill. We assessed 1269 mills andidentified ~90 (~7%) as high risk. The majority of these(>85%) were third party mills used by our direct suppliers.

Focus Areas for FY18/19
Concession Maps: We believe that increasedtransparency on concession maps is an importantpart of enabling verification and holding suppliers
accountable for any violations of their palm policies. We
require all direct suppliers to be RSPO members. As aresult, they are required to publish concession maps fortheir own lands. In FY18/19, our objective is to work with
our direct suppliers to have concession maps of indirect
third-party suppliers also published. As a first step, we
have asked our suppliers to identify any existing barriers
to the publication of concession maps so that we canwork with our suppliers and other relevant stakeholders
to find solutions for those barriers.
Verification: We will focus our verification efforts onsourcing areas characterized as high risk per our palm
oil mill risk assessment process. We will work with
relevant suppliers to ensure verification of Responsible
Sourcing requirements for high risk locations. As aThis year, we conducted arisk-assessment on all 1,269
palm oil mills in our supply
base to identify mills at a highdeforestation risk.

first step, we will assess the sufficiency of current
verification process of all suppliers. Based on thosefindings, we will develop a glidepath and process forverification of high-risk locations in consultation with
relevant suppliers to ensure we have an optimized
process that avoids duplication of effort.

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Palm Oil
Pillar II: Smallholders Program
As per our Ambition 2030 announcement, we havecommitted to significantly scale our smallholder
program. The objective of this program is to improve
the livelihood of smallholders while verifying production
practices to meet our sourcing criteria. The program
focuses on the independent smallholders and small
growers in our PKO supply chain that supply fresh
fruit bunches (FFB) to FGV mills in Malaysia. There areapproximately 30,000 smallholders supplying up to
90,000 mT of PKO into this network, and our target
is to enable these smallholders to be at or above thenational yield average.
Pilot Results
In FY15/16, we partnered with Wild Asia and Proforest
to develop the capability and capacity of smallholders
and collection centers in two project sites in Parit Raja
and Benut, both located in the western part of the Stateof Johor, Malaysia. The two project sites covered sevencollection centers and 2000 smallholders.
Together with our project partners, we have developed• Respect land tenure rights, including rights ofindigenous and local communities to give or withhold
their free, prior and informed consent for developmentof land they own legally, communally or by custom• Traceable supply chain
At the end of June 2018, Wild Asia, Proforest and MISI
have assessed 560 smallholders against the P&G
Responsible Sourcing Criteria for Smallholders. We
will use the learnings from these initial pilots to help
us scale our efforts.
P&G Oil Palm Data Warehouse
Developing full traceability to smallholder farms andgrowers is an important enabler towards ensuring
sustainability of P&G’s complex PKO supply network.
To achieve this, we partnered with MIMOS, Malaysia’snational Applied Research and Development Center,to develop the P&G Oil Palm Data Warehouse. The Data
Warehouse is capable of securely storing and analyzing
data collected by our project partners to turn them into
useful and actionable information. The Data Warehousewill also be Blockchain-enabled, and we plan to test

the P&G Responsible Sourcing Criteria Scorecard forthis with a group of smallholders and collection

Smallholders to assess smallholders against our criteria.

centers’ dealers.

The Scorecard covered six P&G palm sustainability policies:• No development of High Conservation Value (HCV)
areas and High Carbon Stock (HCS) forests• No new development of peat lands regardless of depth

We partnered with MIMOS of
Malaysia to create a Palm Oil Data
Warehouse to store and analyze
data from our project partners.

• No burning to clear land for new development or
replanting• Respect for human and labor rights

Our initial work with MIMOS has showed that our PKO
supply network can already be fully traceable to thecollection centers which is one step upstream fromthe mills and one step downstream from smallholder

farms and growers. A collection center (also referred
as FFB dealers) is a place where smallholders sell their
FFBs before being transported to mills. By developing
traceability to collection centers, we will be able
to utilize geospatial technology to understand theenvironmental landscape within a 10–30 KM radiusenabling us to prioritize key collection centers forour smallholders program. We plan to complete thistraceability exercise before the end of FY18/19.

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Palm Oil
Pillar II: Smallholders Program

Pillar III: Industry Influence

Scaling Efforts: Development of Learning Farms

As a member of the High Carbon Stock Approach

We are partnering with International Plant Nutrition

Steering Group (HCSA SG), RSPO’s Principle & Criteria

Institute (IPNI) in a multi-year agreement to develop up

Taskforce, RSPO’s Smallholder Working Groupto 75 core innovator farms and 165 primary innovatorand RSPO’s Human Rights Working Group, we arefarms (together termed as learning farms) by 2020 withcollaborating to drive harmonized industry approaches

the objective of improving the livelihood of smallholders

that can help advance shared objectives. Below arein the P&G palm supply chain in Malaysia. The program

descriptions of some of the key collaboration areas:

will focus on our current project sites in Johor and will
provide sustainable intensification of oil palm forindependent smallholders in Johor, Malaysia. The
program will focus on increasing FFB yield by enabling
farmer access to knowledge about crop and nutrient
best management practice.

No Deforestation, Peat and Exploitation (NDPE)
Policy and the RSPO P&C
Enhancing the RSPO Principal & Criteria (P&C) to betteralign with current NDPE policies represents a significant
opportunity to strengthen the P&C and enable andaccelerate industry efforts to verify NDPE compliance.

We are working towards higher
standards and harmony acrossthe industry supply chain.

This program has the objective of improving the yields

As member of HCSA SG and RSPO No Deforestation

by 30–50% and will drive both livelihood income andInterim Group, we are actively participating in the

RSPO Smallholder Standard and Inclusion

ensure sustainable practices in the P&G supply chain.

collaborative effort to incorporate both HCSA and

The new RSPO Smallholder Standard is critical toan approach for High Forest Cover (HFC) landscape/enabling the RSPO smallholder strategy issued incountries into the RSPO P&C. Via the RSPO P&C Task

2017. As a member of the Smallholder Interim Group,

Smallholder Objectives for FY18/19
During FY18/19, we will work to achieve the following
objectives:
1. Expand the project sites from seven to 32 collection
centers and ~8000 smallholders in Johor anddevelop full traceability to collection centers

Force and Working Groups, we are helping drive

we are contributing to developing an inclusive,

integration of no deforestation, no peat development

engaging standard that will drive stepwise, supported

and the broader human, labor and land tenure rights

improvement of practice and productivity andpolicies into the RSPO P&C. A revised version of the RSPO

livelihood of this key supply chain sector into the

P&C are expected to be approved in November 2018.

RSPO system. We also continue to support the 13th,
14th and 15th RSPO Roundtable Meetings in bringing

2. Develop the first 15 core innovator farms
3. Partner with NGOs and universities to develop
standardized sustainability training modules anddevelop a strategy to reach and train up to 1000
smallholders

As a member of HCSA SG
and RSPO, we help drive
collaboration between
RSPO and High Forest
Cover countries.

smallholders from multiple regions to join this learningand sharing event.
We are encouraged by the progress on these importantefforts so far but recognize there is still important work
to do. We will continue to advance the progress andimplementation in support of our commitments andindustry common goals.

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Water
Advancing Our 2020 Water
Sustainability Goals
As we approach the end of the decade, we are excitedat the progress we’ve made against our 2020 water
goals. While we’ve already announced our next decadeof water goals, we are committed to continuing to work

Goal

Progress

Reduce water used in P&G manufacturing
facilities by 20% per unit of production
versus 2010 with conservation focused onwater-stressed regions.

25% water reduction per unit of production,completion of Tier 2 of our Manufacturing Water
Risk Assessment process

towards achieving all three of our 2020 water goals.

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

FY17/18
FY16/17
FY15/16

Provide one billion people with access towater-efficient products.

700 million people with access

Provide 15 billion liters of clean drinking
water to those who need it most.

14 billion liters of clean drinking water

Water Consumption by GBU
Millions of cubic meters

-25%
-26%
-25%

Wastewater COD* Disposed by GBU
Thousands of metric tons

63

FY17/1862

FY16/1763

FY15/1621

FY17/18

19

FY16/17

18*Chemical Oxygen Demand

FY15/16

Baby, Feminine & Family Care

BeautyBaby, Feminine & Family Care

BeautyFabric & Home Care

Grooming

Fabric & Home Care

Grooming

Health Care

Other

Health Care

Other

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Environmental Sustainability

Water
Reducing Water Use and Focusing
Where it Matters Most
Water is an essential input at many of our facilities
around the world. Creating a culture of water efficiency
at our sites has been a priority for our manufacturing

P&G Water Risk Assessment Framework1

teams for more than two decades. Thanks to the work

Water Risk Screening (Completed)
Identify risk level of sites based on:• Baseline Water Stress Score — World Resources Institute• Gross National Income per Capita — World Bankof many employees across our global portfolio, we’ve• P&G Site Water Use per Year — P&G

been able to reduce our manufacturing water usage by• Access to Water — WHO/UNICEF

25% per unit of production since 2010. We continue to

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

exceed our goal of 20% reduction per unit of production
and will keep focused on increasing efficiency into thenext decade.
In combination with our efficiency work, we’ve also

2

continued to move through our Manufacturing Water
Risk Assessment process which was developed in

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

partnership with the World Resources Institute (WRI)

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

and World Wildlife Fund (WWF). This past year, we
completed Tier 2 of our process, which involved
working closely with experts at Environmental
Resources Management (ERM) to deploy, collectand analyze in-depth site water questionnaires at
each of the 40 Tier 2 sites.

After a rigorous scoring and ranking process, wefound that 24 of our facilities are exposed to highwater risk. These 24 facilities have been moved into
Tier 3 of our assessment process. These facilities
represent almost every business we operate andspan ten unique countries.

3

In-Depth Site Water Analysis (Current Phase)
Prioritize risks for mitigation and develop site water
stewardship plans.
• Alliance for Water Stewardship (AWS) International
Water Stewardship Standard 1.0 steps 1-3.

PRIORIT Y SITES FROM 2~15% of sites will complete
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Water
The Alliance for Water Stewardship(AWS) Standard
Each of the 24 Tier 3 facilities will create site water
stewardship plans by the end of 2020. They will do thisby following steps 1, 2 and 3 of the Alliance for Water
Stewardship (AWS) International Water StewardshipStandard 1.0. This standard provides a globally applicable
framework for major water users to understand theirwater use and impacts and to work collaboratively
and transparently for sustainable water management
within a basin context. The AWS Standard will help
each site create plans that address risks both inside andoutside their four walls. It will also help to tie site efforts
around water to local water challenges that are being
experienced by not only the site but also by others inthe same basin. This year, we became a member of AWS
and are happy to support the work they do to ensure
consistency and credible recognition of good water
stewardship practices.

ALLIANCE FOR WATER STEWARDSHIPP&G Tier 3 Facilities

Environmental Sustainability

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Environmental Sustainability

Water
Pulp & Paper Water Stewardship
Water has always been an important focus at the
manufacturing facilities that produce our Bounty,
Charmin and Puffs products. Those sites are buildingon their long history of compliance and efficiency
measures, to a more holistic water stewardship strategy.
As part of this strategy, the business acted in two ways:
1. Completed the Alliance for Water Stewardship (AWS)Standard Self-Verification process for a key facility and 2.

Again, working closely with WWF, we collaborated with
our supplier, Fibria, to collect and share our respective
water management practices, challenges and solutions
to help us, and others in the industry, move beyond
compliance and efficiency towards holistic water
stewardship. Our findings will soon be shared publicly
so others can benefit from our experience.
WATER STEWARDSHIP INFOGRAPHIC

Embarked on a partnership opportunity with a supplier.

Finding Circular Solutions
Our family care products
are at the forefront ofwater stewardship in their
manufacturing facilities.

Our Global Fabric Care business, including brands Tide,
Gain, Ariel, Ace and Lenor, has been working hard to
reduce fresh water use in their manufacturing plants,
thus reducing their impact to their local water basins.
The various plants have identified and implemented

The AWS Self-Verification was completed at our
Oxnard, California facility, already known across theCompany for its impressive water savings and water
management strategy in a water-stressed region. World
Wildlife Fund (WWF) guided the site through the AWS
Standard and enabled greater understanding of risks
and opportunities both inside and outside the plant. As
of October 2018, the site has declared itself to meet the
AWS global standard for water stewardship.
AWS CERTIFICATION

solutions to reduce water use, including capturing andusing rain water and reusing utility reject water thatwould otherwise go to the sewer. Several Fabric Careplants located in Mexico, Pakistan, Czech Republic
and the U.S. have found unique circular approaches tobeneficially reuse water from one process as feed water
into another process.
A recent circular example is the Port Qasim plant inPakistan, which is located within a water-stressedregion. Since every drop counts, the plant looked forways to reduce their absolute fresh water intake byreusing the water used to clean and flush holding
tanks back into the manufacturing process.
Fabric Care continues to look for new circular water
sources to reduce their local water impact.

We implemented solutions to
reduce water use, including
capturing and using rain waterand reusing water from one
process into another process.

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Water
Providing Consumers Access to
Water-Efficient Products

We’ve designed products that enable women to skip

Our goal is to provide one billion people with accessThis allows them to reduce their time in the shower

to water-efficient products by 2020. At the end ofand save water, while still ensuring they have the silky-

FY17/18, about 700 million consumers had access tosmooth hair they desire. 40 million people have access

Leave-On Treatments
the rinse out conditioner step in their shower regimen.

water-efficient products around the world. This year,

to leave-on treatments across countries like Mexico,

we qualified two products that enable women to

China, Brazil, the U.S and the UK.

spend less time in the shower: dry shampoos andleave-on treatments.

PANTENE DRY OIL

Dry Shampoos
In many places around the world, the shower accounts
for a large percent of the household’s weekly wateruse. It also adds up to precious hours of time. Moreand more women are finding ways to extend the time
between washes. One way we’ve enabled them to do
this is through our dry shampoos. This product enables
consumers to go longer between washes and helps
to refresh their hair on days they decide to skip thewash. 50 million people have access to dry shampoos
in countries like China, Germany, the U.S. and the UK.

Clean Water Through Scienceand Partnership
More than a decade ago, a P&G scientist, in
collaboration with the U.S. Centers for Disease Control,
invented a 4-gram packet that can transform dirty
water to clean, drinkable water in only 30 minutes.
Today, with the help of more than 150 partners, thistechnology is delivering clean drinking water to those
who need it most. Our goal is to provide 15 billion litersof clean water by 2020 through our Children’s Safe

HERBAL ESSENCES DRY SHAMPOO

Our dry shampoos andleave-on treatments help
consumers use water more
efficiently.

Drinking Water (CSDW) Program. This year, we madeprogress against this goal and have provided morethan 14 billion liters of clean water to people aroundthe world since the program began in 2004.
CHILDREN’S SAFE DRINKING WATER

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Waste
We have a vision that one day zero consumer
and manufacturing 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.

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

Manufacturing Waste

Solid Waste Non-Hazardous by GBU
Thousands of metric tons

40

FY17/18-81%

FY16/17-79%

47

FY16/17

FY15/16-79%

46

FY15/16

FY17/18

Zero Manufacturing Waste to Landfill (ZMWTL)
We started our Zero Manufacturing Waste to Landfill
program in 2008. At that time, it seemed like an
impossible dream as our 100+ manufacturing sites
were producing more than one million tons of waste per
year. What started as a sustainable movement, to see
trash ‘not as waste, but as worth’ has helped transform

Solid Waste Hazardous by GBU
Thousands of metric tons

Disposed Waste by GBU
Water Consumption by GBU
Thousands of metric tons
Millions of cubic meters

the way our sites think about raw materials. Waste

71

champions across our manufacturing sites and within
our Global Asset Recovery Purchases (GARP) teamquickly started to find beneficial uses for our waste.
Not only helping avoid landfills but helping generate
revenue at the same time. Since 2008, the team has

63

FY17/18
FY17/18

78
62

FY16/17
FY16/1782
63

FY15/16
FY15/162

FY17/18
3

FY16/178

helped save the Company more than $2 billion and hashelped divert more than five million tons of waste fromthe landfill.
Once ~50% of our sites reached ZMWTL (less than two
years ago), we decided to look for ways to accelerate ourzero-waste journey, setting a stretching target that ALLof our production sites would send Zero Manufacturing
Waste to Landfill by 2020. In the last two years, thewaste team has made phenomenal progress, withapproximately 85% of our facilities currently being
qualified as ZMWTL, well on track to meet our 100%goal by 2020.

Baby, Feminine & Family Care

BeautyBaby, Feminine & Family Care

BeautyFabric & Home Care

Grooming

Fabric & Home Care

Grooming

Health Care

Other

Health CareOther

FY15/16143

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Waste
In addition to individual sites, our waste teams also
look for ways to drive ZMWTL across entire businessCountries that are ZMWTL
Belgium

Nigeria

BrazilPakistan

China

Philippines

Czech Republic

PolandEgypt

Romania

FranceSingapore

GermanySouth Africa

HungarySouth Korea

India

Spain

We also have two regions close to 100% ZMWTL, Europe

Indonesia

Turkeyand Asia, and we expect them to reach this milestone

IrelandUnited Kingdom
Vietnamunits, countries and regions. This year, our Health Care
Business achieved 100% ZMWTL in all their production
sites across the globe, joining Fem Care, Oral Care and
Grooming in reaching this milestone. Furthermore,
our Fabric & Home Care business had a very strong
year, going from 50% to 83% of their sites receiving
our ZMWTL certification, with 98% of their total waste(production volume) diverted from landfill.

by this time next year. In total, we now have 26 countries

Italy

where all our manufacturing sites have qualified asJapan

ZMWTL. This year, we qualified 16 more sites, and in

MexicoZero Manufacturing Waste to Landfill
Sites qualified by FY

16

FY17/1822
18

11

FY15/16
FY14/1514

FY13/1411

FY12/1316

the process, saved the Company millions of dollars.

FY16/17

FY11/122

FY10/112

FY9/10

1

FY8/9

1

FY7/8

1

FY6/7

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145

Waste
Global Asset Recovery
Purchases (GARP)

Diaper Recycling

Our Global Asset Recovery Purchases (GARP) programin Italy, developed a breakthrough diaper recycling

continues to be a great enabler in our waste efforts
as we find innovative ways to reduce waste anddisposal costs.
Here are some of the innovative solutions GARP has
implemented this year:• Our Tepejí Plant in Mexico (Baby Care) worked with an
external supplier to recover plastic from the diapers
production waste and converts it into plastic pellets
that are used as primary raw material to make items
like buckets, brooms and other plastic-based goods.
• In China, we are beneficially re-using toothpaste as a

Fater, a Joint Venture of P&G and Gruppo Angelini
technology that recycles used absorbent hygiene
products (baby diapers, fem care and adult incontinence
products) to create new products and materials ofadded value.
The technology is now live and operational at industrial
scale able to process 10,000 tons of used absorbent
hygiene products per year. That corresponds to serving
around one million people. The plant is unique andthe first of its kind in the world. We are expanding
the technology globally to more markets such as the
Netherlands and India, and we are studying many
more markets.

component for car cleaner, and shampoo/conditioner
is re-purposed to help clean pets.

Finding Value in Waste• In Canada, our Belleville Plant (Fem Care) is converting

Febreze, TerraCycle and Tesco partnered to give

our highly absorbent scrap and process waste into

schools in the UK a chance to win a playground madevarious spill mitigation products.
• In Brazil, our Baby Care Plant in Louveira is converting
our diapers production waste into dog hygienic mats,and hair care and detergent production waste arefrom recycled plastic. Community members wereencouraged to get involved and help their local schools
win by voting for them in the competition. The Febreze
Playground competition focused on raising awarenessused as a component for car washes.

of the issue of waste recycling among the youngest in• Our Oral Care operations are converting toothpaste

waste, the project aimed to help reduce plastic litter

into car cleaner, toothbrushes and floss into wood
plastic composites, and our rinse wash waste is used
for biofermentation and plastic recycling industries.

Together with Gruppo
Angelini in Italy, we developed
technology capable ofprocessing 10,000 tons per yearof absorbent hygiene products
to create new products.

our society as well as their communities. By recyclingfrom entering nature’s playground and polluting theplanet, instead creating play areas for kids to enjoy a
bit of fresh air everywhere.

was made mainly with parts made from recycled plastic

The competition garnered more than 65,000 votes,

lumber from curbside recycling waste collected in the

including a viral video campaign from one school

UK. Following its success, the program is now in its

generating more than two million media impressions.

second year and has been expanded in partnership

The recycled playground, built at Wooler First School,with Tesco to run across the whole household category.

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Waste
Collaborating to address
Plastic Waste
Circulate Capital
We are proud to have been a lead partner in thecreation of Circulate Capital, a new kind of investment
firm that leverages technology and builds infrastructure
in South and Southeast Asia to prevent plastic frombecoming waste in the ocean.
Led by Rob Kaplan, co-founder of Closed Loop Partners,“P&G is proud to be part of Circulate Capital.
Just like the Closed Loop Fund, this willaddress the root cause and help develop theright infrastructure to drive positive change.
Working together, we believe we can halt theflow of plastic into the world’s oceans.”– Steve Sikra, P&G Associate Director,
Corporate R&D, Global Product Stewardshipthe company evolved out of the “Closed Loop Ocean”

solving the ocean plastic problem. South and Southeast
Asia have seen exponential growth and development
over the past 10 years that has outpaced the necessaryChampions
We renewed our participation as an Associationof Plastic Recyclers (APR) Demand Champion.
The APR program is intended to:residential mixed plastics• Make a public commitment to plastic recycling

is set to deploy: India, Indonesia, Vietnam, Thailand• Expand plastic recycling infrastructure

and the Philippines. We believe that this unique model• Boost a “circular economy” for plastic packaging

retain plastic in packaging and product supply chainsand prevent it from entering the environment, thus
supporting a truly sustainable and circular economy.

healthy ocean and how everyone can help, including

Association of Plastic Recyclers (APR) Demand

reduction in plastic leakage to the ocean can bewill be instrumental in building the infrastructure towill help drive youth awareness of the importance of aand ocean health as a political priority.

• Strengthen and increase domestic demand forachieved by improving waste management andconnect to it. We are also a proud founding partner ofYouth for the Ocean, a new collaborative initiative thatclean up communities and coasts and elevating coastal

infrastructure. Studies have shown that significant

recycling in the five countries where Circulate Capital

become more aware, educated and actively engaged
in creating a healthier ocean and the waterways thatand solutions, driving action by mobilizing a youth

to create financing opportunities focused on preventing

acceleration of the project which we see as vital to

aimed at reaching millions of people worldwide toconstituency to prevent plastic pollution and helping

at the Our Ocean Conference in Malta in October 2017

As a lead funder, we were critical to the spin-off andP&G is a major sponsor of World Oceans Day, a global
celebration officially recognized by the United Nations

educating youth about plastic pollution issues

project, following commitments made by us and others

plastic from flowing into the ocean.

World Oceans Day

Along with the APR and other Demand Champions,
we recognize a “demand-pull” is needed to drive apositive momentum in plastic recycling.

Youth for the Ocean createsawareness about plastic pollution
and how to keep oceans healthy.

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Waste
Waste to Worth
Waste to Worth is an effort to develop an integrated,
profitable and replicable waste-management businessmodel that finds value from waste. Three key pilots are
currently under development in Angeles City, Cabuyao
and Dagupan in the Philippines. 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 of creating
economically viable and thus sustainable infrastructure.

Through partnership, the results-driven nonprofit has
invested more than $29 million to help around 600
communities and more than 29 million households
improve recycling, diverting 115 million pounds ofrecyclables from landfill. In 2017, the Partnershipplaced 182,000 recycling carts from Portland, Maine
to Santa Fe, New Mexico. They also teamed up with
Atlanta and Chicago to clean up the recycling stream
in communities by decreasing overall contaminationand joined forces with Denver to boost capture ofaluminum cans by 25%. Across the country, more of our

We have supported this effort with our partner, thepackaging is being recovered due to the activities ofAsian Development Bank, who co-funded feasibility

The Partnership.

studies that were critical to advancing the project. This
year, the project made significant progress with signing
off-take (electricity, diesel, gas) customers, permitting,engineering, investment and bidding for a construction
firm to build the facilities. Ground breaking has happenedin Dagupan with Angeles City and Cabuyao to follow inearly 2019. The facilities are on track to deliver our goal
to have operational pilots in place by 2020.

The Recycling Partnership
We are committed to helping consumers have accessto strong recycling programs through our supportof The Recycling Partnership. Today, less than half ofrecyclables in U.S. homes are recycled. We work with
The Recycling Partnership to change this by making
it easier for people to recycle. How? By providing
recycling carts, educating residents on what—andwhat not—to recycle and by delivering best practices,
expert technical assistance and free online tools to help
communities across the country improve their recycling
programs long-term.

“P&G understands that we must all work
together to transform recycling for good incommunities across the U.S. Their continued
support has helped us help more than 29
million households—almost a quarter of the
U.S. population—recycle better. We havemuch more work to do, and with P&G’s help,
we can create a sustainable recycling systemthat is good for the economy, the planet andpeoples’ lives.”– Keefe Harrison, CEO, The Recycling
PartnershipWith The Recycling Partnership,
we have helped more than 29
million households divert
recyclables from landfills.

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The Power of the P&G People
Coastal Clean-ups
Singapore
In celebration of P&G’s 30th anniversary in Singapore,more than 250 P&G employees set out to two locations
along the eastern coast—Coney Island and Tanah Merah
Ferry Terminal—to do a thorough coastal clean-up. In
partnership with the National Environment Agency andWaterways Watch Society (WWS), our P&G employees
cleared three kilometers of beach, collecting an
outstanding 1,129 kilograms of coastal debris!
Brussels
Employees at the Brussels Innovation Center
participated in an event to help clean the Belgian
coast. In 2017, about 75 employees and their families
participated; in 2018 more than 100 joined up during
their free Sunday and collected 5.3 tons of garbage
along with other volunteers.
Cincinnati

MadridP&G partnered with Ecoembes and SEO-Birdlife under
the Libera Project to enable a volunteer collectionof waste in various parks and beaches in Spain. P&G
volunteers and their families from Madrid General Officeand Jijona Plant joined forces to restore the natural
beauty of El Pardo Natural Park and Cala Cantalar of
Cabo de las Huertas in Alicante. The Libera Project
collected tons of garbage while at the same time raisingawareness of the issue inside and outside of P&G.
Valencia
To increase awareness around the topic, P&G and
CARREFOUR partnered with Paisaje Limpio andEcoembes to clean the Port Saplaya Beach in Valencia.
Volunteers collected hundreds of pounds of waste.
In addition, a roundtable was organized with theparticipation of P&G, CARREFOUR, SUEZ and TerraCycle
to discuss the journey behind this effort and theimportance of driving responsible consumption.

Nearly 100 Cincinnati employees partnered with
Living Lands & Waters to clean the river banks of theirhometown one steamy afternoon in September. Thanks
to their efforts, nearly 19,000 pounds of trash were
removed from the banks of the Ohio River, including
more than 1,000 pounds of carpet, 810 pounds ofrandom plastic, 177 tires and 150 mattresses.

Philippines Tree Planting
Volunteers planted hundreds of flowering tree
saplings to aid the restoration of Sitio Jordan, San
Vicente, Sto. Tomas, Batangas in October during thefirst P&G Philippines Intersite Tree Planting Activity.
In 2014, employees from the Cabuyao facility planted
saplings on the same site, which are now full-growntrees. Thousands of sapling trees were planted by P&G
Philippines in different locations near the Cabuyao site.

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Environmental Sustainability

The Power of the P&G People
P&G China Pioneer Program
benefited 4,000+ futureenvironmental protection leadersin three years

In total, 20,000 Ghaf seeds were planted by P&G andCarrefour employees and consumers. When ready,these Ghaf saplings will be planted in a new national
reserve designed to educate UAE consumers about
the importance of environmental sustainability.

2018 is the third year of the P&G China Pioneer
Program. We partner with a leading NGO in China,
the China Environmental Protection Foundation, toprovide funding, training and networking to student
environmental protection societies in universities in
China. This program is designed to grow future leaders

Our campaign with YH
Supermarket in China generated
donations to help protect morethan 200 square kilometers ofnatural forest reserve.

We planted one Ghaf seed forevery P&G product purchased
at Carrefour UAE, totaling
20,000 seeds planted.

in environmental protection.
During the three-year first phase, Pioneer Programsupported 80+ university societies and 117 environmental
protection projects, benefiting more than 4,000
university students from North and South China.

Partnering with Customers toProtect Natural Reserves in China
P&G China Pioneer Program and YH Supermarket, one

P&G in the Arabian Peninsula teams
with retailers to support educationand sustainability
P&G in the Arabian Peninsula has partnered withboth retailers and consumers for several years to
support causes that impact the region’s communities.
This year, P&G in the Arabian Peninsula joined withMajid Al Futtaim-Carrefour to support the Year of
Zayed, the centennial celebration of the birth of thecountry’s founder through a unique shopper initiative.
Named “Leave Your Mark”, the campaign promoted
environmental sustainability, in particular the plantingof the Ghaf, the UAE’s national tree. P&G in the Arabian
Peninsula and Carrefour UAE planted one Ghaf seed
for every P&G product purchased at Carrefour UAE
stores nationwide during two weeks in July and August.

of the largest-scaled supermarkets in China, built afive-year partnership to help protect natural reserves
and rare species. The partnership began in 2017 where
we attracted 1.5 million consumers to join the “buy one
P&G product, donate 1 RMB” responsible consumption
campaign in 300 YH supermarkets around China. The
donation contributed to help local NGOs protect morethan 200 square kilometers of natural forest reserve innorthwestern China, including a few rare animal andplant species living in the forest area.

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Sustainable Innovation
with Suppliers
Designing The Good Life with our
Sustainable Partner Innovation
Network
In November, P&G thought leaders and fourteen
suppliers from our global Sustainable Partner
Innovation Network participated in an experiential
immersion where they were challenged to think
about current and future sustainability issues in a
new and innovative way. Participants travelled toseven unique locations across the city of Chicago in
one day to experience a broad range of barriers thatprevent consumers and communities from living
The Good Life—a life filled with delightful innovation
and responsible consumption. The event challenged
participants to consider the imminent world—one ofincreased urban living and decreased resources—asan inspiration, rather than a barrier, for developing
sustainable innovation for the future. As a result, oursupplier ecosystem is more connected to the visionof developing future innovations that are both a force
for good and a force for growth.

P&G thought leaders andsuppliers met in Chicago to
imagine The Good Life—filledwith delightful innovation andresponsible consumption.

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Worldwide Health, Safety
and Environment Systems
Health and Safety Policy
P&G is committed to having safe and healthy operations
around the world. The goals are to protect the lives andhealth of our employees and the communities surrounding
our operations, as well as to protect our assets, ensure

Worldwide Health, Safety &Environment Organization
Health, Safety & Environment (HS&E) is a global
community of resources responsible for ensuring thatall sites worldwide—including innovation centers,

business continuity and engender public trust.

distribution centers, acquisitions and established

To accomplish this, P&G will:plants—are operated safely and legally; that process• Operate facilities safely and ensure that processes areare identified and managed or eliminated; and thatsafe and healthy for our employees and residents ofthe surrounding communities. We will accomplish
this by following uniform corporate safety standards
around the world. Safe operations have been a longstanding part of Company culture, reflecting the belief
that our employees are our most important asset.
• Construct our facilities so as not to compromise thesafety and health features designed into them.

hazards are minimized or eliminated; that health risks
waste from sites is reduced as much as possible.
Several thousand employees spend all or a portionof their time on HS&E management.
There are three major components to a site’s HS&E
organization: Environmental, Technical Safety andIndustrial 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

• Monitor progress toward our objective of preventing

organization also closely partners with the site Healthinjuries, illnesses and incidents. We will continuallyService or Medical leader. P&G uses a phased, detailed

assess and improve our safety and health technologies

Risk Assessment process to evaluate the safety ofand programs.

processes and initiatives being introduced at our own• Have every employee understand and be responsiblefor incorporating safe behavior in daily businessactivities. Every employee is trained to work in a safeand healthy manner.
• Have operating standards, practices, systems andresources in place to implement this policy.

manufacturing operations as well as at contractor
manufacturing operations. The Risk Assessment
process is designed to enable high-speed innovation.

P&G has verified that the HS&E program at all of ourmanufacturing facilities meets the intent of the Global
Health and Safety Management standards OSHAS 18001
and ISO 14001. In addition to our own internal reviews,
in 2006, P&G worked with Environmental Resources
Management (ERM), a highly respected international
consulting firm in the field of environment, health,safety and sustainability to conduct an independent
equivalence study. This ERM report, and a secondary
P&G internal follow-up audit in 2010, both reaffirmed weare following the overall principles defined within thesestandards.

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Worldwide Health, Safety
and Environment Systems
Health & Safety
The health and safety of P&G employees and our

Total Incident Rate
(Injury and illness per 100 employees)

contractor partners is a foundational expectation anddirectly linked to P&G core values.
• Nothing we do is worth getting hurt
• Safety can be managed• Every injury and illness can and should be prevented

0.24

2018

0.23

2017
0.27

2016

• Safety is everyone’s responsibility
The Company tracks our total injury rate (TIR) andloss work day case rate (LWDC). TIR includes any

Total Lost Work Day Case Rate
(Lost and restricted work day cases per 100 employees)

injury that requires medical treatment beyond firstaid, including work restrictions. LWDC is a subset of
all injuries that were serious enough to result in theindividual missing the next assigned work shift. Our
TIR target for both employees and contractors is 0.24
injuries per year per 100 employees (100,000 hours).
No targets are set for LWDC rates. To achieve theseresults, we have implemented an integrated Health,
Safety and Environmental program. This program sets
expectations that enable evaluation of each site’s
leadership involvement, behavior and culture, equipment
design and maintenance standards, and training andprocedures. We specifically focus on life-safety criticalsystems such as electrical safety, confined spaceentry, fall prevention/protection, material handling andisolation of hazardous energy. The TIR and LWDC rate
results are summarized in the charts to the right.

0.13

2018

0.12

2017

0.12

2016

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

Worldwide Health, Safety
and Environment Systems
P&G has more than 25 manufacturing plants
and technical centers that are celebrating
more than one million safe work hours
without a lost workday injury.

Audit Programs
P&G’s internal HSE audit program is designed toensure sites are complying with both local regulatory
requirements, as well as, corporate polices, standards
and procedures. These audits are completed at allplants, innovation centers and distribution centersworldwide. Recently we modified the audit program
to eliminate numerical scores and move to identifying

Top 5 Sites with the Highest Number of Employee Safe Working Hours
Manufacturing Site

Safe Hours*

GBU

RegionIbadan11,900,000

Fabric and Home Care

IMEA

Shiga

7,200,000

BeautyAsia

Takasaki

6,600,000

Fabric and Home Care

Asia

Xiqing

4,900,000

BeautyAsia

Huangpu

4,600,000

BeautyAsia

GBU

Region*Rounded down to the nearest 100,000

specific findings and classifying those findings as critical,
major or minor. All findings are tracked to closure by
the corporate HSE. The fundamental philosophy is to
use the standards worldwide, implemented by trained
HSE leaders at facilities and audited each year using aconsistent, comprehensive approach. Audits measureperformance against mandatory standards andoperating procedures. The target is to have no criticalfindings and continually reduce the number of major orminor findings. This year 99% of the sites were assessed.
Sites Conducting Annual Audits(Percentage)

99%
97%
94%

2018
2017
2016

Technical Center

Safe Hours*

London Innovation Center

2,700,000

Technical Center

EuropeKobe Innovation Center

670,000

Technical Center

Asia

Brussels Innovation Center

550,000

Technical Center

EuropeSingapore Innovation Center

450,000

Technical Center

Asia

Kronberg Innovation Center

330,000

Technical Center

Europe153

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Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

154

Worldwide Health, Safety
and Environment Systems
Compliance with Laws
and Regulations

Notices of Violation

Air Emissions

We continually strive for zero notices or penalties. The

Each site assesses total suspended particulates, volatile

There are numerous health, safety and environmental

charts below summarize data from the last three years

organic compounds (VOCs), carbon monoxide (CO),and provide perspective on notices of violation (NOVs)

nitrogen oxides (NOX) and sulfur oxides (SOX). The chart

received during FY 14/15. Note, several fines are still

below summarizes data from the last three years.

requirements worldwide. Plants are subject to safety
rules and emission limits with operating requirementsthat may be embodied in sources such as statutes,
regulations, laws and permits. It is P&G’s intent tounder review but are included in the total numbers.

Year

Numberregulations, laws and permit requirements. Identified

2018

17

$249,4302017

24$102,8048

FY17/182016

29$46,2508

FY16/17

compliance issues are treated seriously, and allnoncompliance matters are resolved as expeditiously
as possible.

Fines

Air Emissions by GBU
Thousands of metric tons

comply with both the letter and the spirit of statutes,

9
A breakdown of NOVs is provided below:

Violation

Numberof NOVs

Fines

Water-Based7$15,908

Air-Based

4$229,500

Solid-Waste-Based

1$0

Paperwork

4$3,622

Transportation-Based

0

$0

Other

1

$400

Worker Safety

0

$0

Total

17

$249,430

Baby, Feminine & Family Care

BeautyFabric & Home Care

Grooming

Health CareOther

FY15/16

Introduction

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Community Impact

Diversity & Inclusion

Gender Equality

Environmental Sustainability

155

Awards & Recognitions
Environmental Excellence
We were one of only five organizations nationwide toreceive an EPA Green Power Partnership LeadershipAward for direct project engagement. The program
recognizes organizations that distinguish themselves
through direct project engagement with on- and offsite projects to access renewable energy certificate(REC)-based green power.

Our Alce Blanco toothbrushes and floss plant in Mexico
received a recognition granted to less than 1% of the
manufacturing sites in the country called Clean Industry
Level II. They also received an award for Environmental
Excellence by the Environmental Ministry. This award
is given to sites that have demonstrated best practices
in environmental sustainability such as zero water
consumption in the manufacturing process, clean
energy and zero waste to landfill. The Alce Blanco plant

In addition, we rank as number 9 on EPA’s Fortune

has made significant progress recently, including LED

500 Partners list and as number 14 on EPA’s National

lighting, solar heaters, reforestation, and process andTop 100 Partners list. Each list highlights EPA Green

machinery efficiency projects that translate into lessPower Partners using the most renewable energy

water and energy consumption while reducing GHG.

®

annually as of July 2018. EPA updates its Top Partner
Rankings quarterly.
EPA TOP PARTNER RANKINGS

Our diaper recycling technology that we worked inpartnership with Fater to bring to scale, received theEco-Innovation award from the European Commission.

According to the EPA, our green power use of morethan 743 million kWh at our U.S. facilities is equivalent
to the electricity use of almost 70,000 average
American homes annually.

The Arbor Day Foundation
recognized P&G as afriend of the forest for ourcommitment to responsible
forest sourcing.

Arbor Day Foundation 2018 Friend of theForest Award
We were honored to be recognized by the Arbor Day
Foundation as their 2018 Friend of the Forest Award
recipient. The award was granted for our dedication
to responsible forest sourcing by partnering withorganizations and landowners that support responsible
forest management.
FRIEND OF THE FOREST AWARD

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental SustainabilityAwards & Recognitions
Business Intelligence Group 2018 Sustainability

Our Milenio Blades & Razors Plant in Irapuato,

Leadership Award and Sustainability Initiative of

Mexico continues to be a leading example of applying

the Year Awardinnovative sustainable manufacturing practices. The

The Business Intelligence Group (BIG) announced P&G

plant, which started operations seven years ago, is

as a 2018 Sustainability Leadership Award recipient

LEED Silver certified, sends zero manufacturing waste

in recognition of our efforts to make sustainability an

to landfill, reuses treated wastewater and utilizes 100%

integral part of our business practice.

wind electricity. The plant won first place in the Energy

And our Family Care business was separately awarded
BIG’s 2018 Sustainability Initiative of the Year Award.

SUSTAINABILIT Y INITIATIVE AWARD

Efficiency State Award for the third consecutive year,
recognizing improvements in the evaporation plant,
reducing consumption within lighting, heating,ventilation and air conditioning (HVAC). Two key
highlights were the use of outdoor air in the winterwhich saved 360,945 KWh and upgrading to LED
illumination in the quality assurance labs saving an

FSC 2017 Leadership Award

additional 5,820KWh.

We were awarded the Forest Stewardship Council
United States 2017 Leadership Award in recognition
for making our iconic Charmin and Puffs tissue

Our plant in Irapuato,
Mexico uses 100%wind energy.

products FSC-certified and for working with partners
to add 500,000 acres of FSC-certified forest in theSoutheastern U.S.
FSC LEADERSHIP AWARD

We were awarded the United Nations’ Momentum
for Change Award for our H&S beach plastics bottle.

Our Binh Duong facility received the Green Book Award
from the government in 2016-2017 for its energy andwater reduction efforts.

The Forest StewardshipCouncil recognized P&G formaking Charmin and Puffs
FSC-certified.
Photo Credit:
Ebersole Photography

156

Introduction

Ethics & Corporate Responsibility

Community Impact

Diversity & Inclusion

Gender Equality

Environmental SustainabilityAwards & Recognitions
LEED
We are committed to “designing in” sustainability
within our facilities, including pursuing LEED
certification for all new facilities. We now have 30
sites with LEED Silver or Gold certification.
Location

Gold Silver

Ben Cat, Vietnam

2

Box Elder, UT, U.S.

2*

Cabuyao, Philippines

GyongyosBox ElderCincinnati

Tabler Station
Greensboro

Taicang

1
Lagos

2

Cincinnati, OH, U.S.

Guangzhou

Hyderabad

Cruz, Brazil

1

Greensboro, NC, U.S.

1

Budapest / Gyongyos, Hungary

3

Guangzhou, China

11Hyderabad, India

1

2

Jakarta, Indonesia

4

Lagos, Nigeria

2Singapore1

Tabler Station, WV, U.S.

2

Taicang, China

1

3

Total

4

26

Ben Cat

Singapore
JakartaCruz*Represents a LEED v4 Certification at this location.

Cabuyao157

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Community Impact

Diversity & Inclusion

Environmental Sustainability

Gender Equality

158

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)

2018

2017

2016

Baby, Feminineand Family Care

BeautyFabric andHome Care

Grooming

Health CareOther

25,64230,00725,758

5,737

1,983

16,897

634

391

N/A

633

676

632

Generated Waste

727

670

612

285

70

204

38

35

96

Percent Recycled / Reused Waste

90%

88%

87%

91%

89%

84%

99%

95%

96%

Waste Disposed

71

78

82

25.84

7.44

31.85

0.41

1.65

4.00

Solid Waste — Non-Hazardous

40

47

46

15.31

3.60

17.09

0.00

0.35

3.30

2

3

8

0.01

0.11

2.03

0.00

0.01

0.00

21

19

18

4.71

3.50

10.90

0.36

1.22

0.37

8

8

9

5.81

0.23

1.83

0.05

0.07

0.33

60,89160,48859,26339,504

2,994

11,147

2,469

1,813

2,963

4,298

4,663

4,669

2,682

260

690

230

191

244

2,138

2,118

2,030

1,566

81

318

61

42

70

2,160

2,545

2,639

1,117

179

373

169

148

174

68

89

177

68

N /A

N /A

N /A

N /A

N /A

63,41961,927

63,21939,515

4,865

14,163

1,102

1,571

2,202

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.

(2) Estimated from shipment figures. Data was estimated using FY17/18 production volumes and FY15/16 conversion factors.

(1) F or 2018, 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
stand alone offices/technical centers that support the business units, our largest distribution facilities, and corporate
entities such as our manufacturing operations in Venezuela. Numbers do not include production from contract
manufacturing operations.

(3) Data is tracked at a corporate level.
(4) Wastewater chemical oxygen demand (COD).
(5) Air emissions include particulates, SO2, NOX , CO and VOC.
(6) Total GHG emissions = Scope 1 + Scope 2. Scope 2 emissions calculated using a market-based method.
(7) Market-based Scope 2 GHG emissions. Note: Location-based Scope 2 emissions 2018 were 2,598,621 metric tons.

Introduction

Ethics & Corporate Responsibility

Community Impact

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Gender Equality

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

HE including both Top Loading and Front Loading HE
Machines. Our benchmark for qualifying low-energy
cycles has been 0.4KWh per wash cycle. Based on ourcontinuing monitoring of machine performance, we
now recognize that Top Loading HE machines consume
more than 0.4KWh/wash cycle but still represent asignificant energy savings vs. loads run in traditional

Greenhouse Gas Emissions

warm cycles. In addition, we expect total energy for

For purposes of monitoring progress against ourthese types of machines to decrease further over timegoal and listing emissions levels in charts and graphs,

based on continued innovation and regulation. Given

we utilize market-based Scope 2 GHG emissions. The

our objective is to drive consumers to low-energy cycles,

WRI/WBCSD GHG Accounting protocol provides

and since HE Top Load machines represent a significant

additional perspective on market - versus location-energy savings, we will continue to count top load HE

based GHG emissions.

machine Warm and Cold as low-energy cycles. Net,
there is no change in the scope of our tracking but we

GHG PROTOCOLS

are modifying our approach to simply list the cycles
that we now track. For clarity they are cold cycles in

Our GHG emissions data has been verified by
an external third party, Lloyd’s Register Quality
Assurance (LRQA).

traditional top load machines and cold and warm
cycles in all HE machines.
Packaging Reduction
The average packaging reduction is calculated using

LLOYD’S REGISTER QUALIT Y ASSURANCE

products that represent the top 70% (by volume) of thecategories that have the largest impact on packaging

Low-Energy Cycle Machine Washing Loads
Each year, we carefully review habits and practices
data to help us assess progress against our lowenergy washing goal. The objective of this goal is toget consumers to use low-energy cycles, and we canplay a significant role in that by providing detergentsthat provide outstanding performance in low-energy
cycles. We have included the following cycles in our
tracking: Traditional Cold, HE Warm and Cold, withuse (Fabric Care, Home Care, Baby Care, Feminine Care,
Family Care, Oral Care, Personal Cleansing Care, Shave
Prep, Hair Color and Hair Care). While a subset 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.

Environmental Sustainability

159

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Environmental Sustainability

160

Global Measurement andAdditional Operational Data
2020 Goal Measurement Systems
Recyclability of Packaging
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 thatmaterial type (e.g., collection, sortation, processing

Water Conservation
Our goal to reduce water use in manufacturing facilities
by 20% per unit of production applies to freshwater
consumption, which means freshwater intake from thefollowing sources:• Tap water – water supplied by municipalities or third-for end use and established end-market for collected

party companies via piping systems or trucks, at any

material). While we require large-scale systems to bequality they deliverin place in at least one geography, we do not require aminimum percent access or recovery rate per package• Net water via purchased steam

in every country or market where a package may be• Ground water from site wells

sold for the package to be considered recyclable for• Surface water – non-brackish as rivers, lakes, creeks,purposes of tracking progress versus our goal.
Paper Packaging
Data for calculating progress versus our paper
packaging goal was self-reported by our suppliers.

etc., at any quality they deliver
Palm Oil: We are seeking to increase

Baseline Restatement

our use of RSPO SG palm oil

This year, P&G adjusted our GHG emissions baseline in

RSPO SG palm oil means that RSPO certified oil isaccordance with the principles in the WRI and WBCSD

physically segregated from non-certified oil. Given

Corporate Standard for Greenhouse Gas Accounting.

and covered more than 95% of our global spend.

increasing stakeholder concerns over palm oil

Changes included adjustments for acquisitions/production practices of third-party suppliers, moving

divestitures as well as other minor modifications andRenewable Energy

to RSPO SG oil for palm oil and derivatives provides

corrections to historic data. Our original baseline was

The data collected this year covered materials procured
directly by P&G as well as contractor manufacturers

When calculating the renewable energy powering ourplants, we include the renewable energy level of thelocal electrical grid that provides power to the plant.

a higher level of verification that the oil we procure

5,466,601 metric tons. Our revised baseline, which weis originating from RSPO-certified sources. It also, bywill use for calculating progress versus GHG emissions

definition, allows us to trace oil to the source plantation

reduction goals, is now 5,422,275 metric tons. As

and implement additional verification efforts shouldpart of this work, we also updated our baselines forthey be deemed necessary. There are challenges withenergy, water and waste. Original energy baseline wasmoving to RSPO SG palm oil, including both available

67,904,220 gigajoules. It is now 64,081,270 gigajoules.

supply and increased costs, but we are working with

Original water baseline was 77,049,114 cubic meters. It

suppliers to try and overcome both of these challenges

is now 75,201,959 cubic meters. Original waste disposed

as we work towards our goal of having 100% of PO andwas 354,563 metric tons. It is now 339,306 metric tons.

POD be RSPO SG.

The baseline year remains the same: P&G’s FY09/10.

ABOUT OUR CITIZENSHIP REPORT
Data in this report covers the period of July 1, 2017 to June 30, 2018. Financial information is given in U.S. dollars.
Questions related to this report can be directed to mediateam.im@pg.com. This report references GRI 102:
General Disclosures 2016. A GRI Content Index for this report can be found here.

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