2011 SUSTAINABILITY OVERVIEW

Commitment to Everyday Life

Contents
CEO Statement..........................................................................................2
Leadership Statement...........................................................................3
Report Card........................................................................................... 4–5
Products................................................................................................. 6–11
Operations..........................................................................................12–17
Social Responsibility.................................................................... 18–23
P&G at a Glance.................................................................................... 24
Resource & Waste Summary.......................................................... 24
Long-Term Environmental Sustainability
Vision and Goals................................................................................... 25

About this publication
This is the 13th year that P&G has reported on its
sustainability efforts. This publication details the progress
we’ve made on our 2012 goals, devoting a section toeach of our focus areas: Products, Operations, and Social
Responsibility. It concludes with an overview of P&G’s
long-term environmental sustainability vision and 2020
goals, which we established in September 2010. Data inthis report covers the period from July 1, 2010, throughJune 30, 2011. Financial information is given in U.S. dollars.
To view our online report, which was prepared using the
Global Reporting Initiative’s (GRI) G3 Guidelines, please
visit www.pg.com/sustainability.

P&G has been a member of the FTSE4Good and Dow Jones
Sustainability Indexes (DJSI) since their inception. P&G
is the Household and Personal Care Products leader on
the Corporate Knights Global 100 list of the world’s
most sustainable corporations and is on the Corporate
Responsibility Magazine 100 Best Corporate Citizens list.

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The Procter and Gamble Company 1

At P&G, we’re committed to delivering products and services thatmake everyday life better for people around the world. Our opportunity
to touch and improve lives comes with a responsibility to do so in a
way that preserves the planet and improves the communities in which
we live and work. We’re continuing to make progress in our focus
areas of Products, Operations and Social Responsibility, enabled byour employees and our stakeholders.

Our Focus Areas
We have set specific strategies and goals to ensure we are delivering continuous improvement toward each of our focus areas.

Products:
Delight the consumer with sustainable
innovations that improve the environmental
profile of our products

Operations:Improve the environmental profile
of our own operations

Social Responsibility:
Improve children’s lives through oursocial responsibility programs

Our Enablers
In order to deliver our environmental and social programs, we must engage our employees and stakeholders. Our objective is to equip all
P&G employees to build sustainability thinking and practices into their everyday work. We will also work transparently with stakeholders toenable us continued freedom to innovate in a responsible way.

Employees

Stakeholders

2

P&G 2011 Sustainability Overview

CEO Statement

P&G’s Purpose is to touch and improve lives, now andfor generations to come. Our growth strategy, which isinspired by our Purpose, is to touch and improve moreconsumers’ lives, in more parts of the world, more
completely.
One critical way we are executing this strategy is to reach and serve
five billion people with our products and services by the midpointof this decade, up from less than four billion just two years ago.
We’re confident we can improve these billions of lives if we canreach people where they shop with products and services they need
and want. But we also know that we must achieve our growthsustainably and responsibly. To do otherwise would be inconsistent
with our Purpose and what we stand for as a Company.
Last year, we announced a new long-term environmental
sustainability vision to guide our efforts. This vision is challenging
and far-reaching: 100% renewable energy to power all our plants,
100% renewable or recycled materials for our products andpackages, zero consumer and manufacturing waste related to our
products going into landfills. We don’t yet have all the answers
necessary to achieve this vision, but we are committed to making
disciplined, step-by-step progress through a series of ten-year
goals. We’re confident that with P&G’s size and scale, and with ourcapabilities and partnerships, we can make the difference in theworld to which we’re committed.
To ensure line of sight between our business and our sustainability
goals, we created the P&G Sustainability Board, which includes
executive officers from Product Supply, Research & Development,
Marketing, External Relations, and our North America business.
Each of these leaders is responsible for the systemic integration of
our sustainability strategy across these functions.
I serve as the executive sponsor of Sustainability at P&G because
I feel it is a critical leadership role that only the CEO can play.
My sponsorship and the leadership of the Sustainability Board help
ensure that our Purpose and our sustainability vision are integrated
into each business unit and each of our key functions.
We see this integration most clearly in P&G innovation. The best
way to solve sustainability challenges is to innovate, which is at theheart of our Company’s business model. We are creating newmaterials, new technologies, and new ideas consumers will embrace.

We want to provide consumers with the quality and value they
deserve without having to make trade-offs to be more sustainable.
Innovation is how we do this, with solutions that require fewer
materials, use less energy and water, and produce less waste.
We are also leveraging the ongoing demand for increasing
productivity as an accelerator of sustainability progress.
Sustainability often enables productivity. For example, we operate
more effectively and efficiently by increasing the eco-efficiency ofour plants — reducing water usage, greenhouse gas emissions andwaste. We are also advancing research in renewable materials todevelop alternatives to petroleum, which is the most important
thing we can do to reach our long-term vision of making 100% of
our products and packaging with renewable or recycled materials.
(In the Products section of this report, you will see two new
items that are replacing petroleum with renewable materials.)
To put it simply, what’s good for business can also be good forthe environment.
Touching and improving lives also gives us the responsibility tohelp the communities in which we operate to prosper. We do thisthrough disaster relief and through programs that help children andfamilies in need around the world to live, learn and thrive. All these
programs allow us to help those who need help when and where
they need it most. As a result, we not only improve life but also
create positive relationships with people that ultimately build ourbusiness and allow us to do even more good.
The opportunity to make a difference that lasts generations —whether through our brands and services, our operations, ourenvironmental sustainability efforts, or our philanthropy — is what
attracts people of remarkable character and caliber to P&G.
We are committed, together, to improving life every single day.
We’re proud of the progress we make year after year, and we areinspired by the challenge to do more.

Robert A. McDonald
Chairman of the Board, President and Chief Executive Officer

The Procter and Gamble Company 3

Leadership Statement

In 2007, P&G established a series of five-yearsustainability goals. In this annual report, we present
the progress we have made over the past year andour cumulative progress since this program began.
We are pleased to report that we have already achieved several of
our five-year goals and continue to make important progressagainst the others.
For our Products goal, we have delivered $40 billion in Sustainable
Innovation Products, and we are well on our way to exceed our2012 goal of $50 billion in cumulative sales. These products have atleast a 10% improvement in their environmental profile compared
to a previous or alternative version of that product. The compactionof our powder laundry detergents in North America and the
packaging changes we made in our Gillette Fusion ProGlide razors
in Western Europe are examples of our progress in this area.
In our Operations, we have achieved a reduction per unit ofproduction of 16% in energy, 57% in waste, 12% in CO2, and 22%
in water usage. Our 2012 goal is a 20% reduction in each of theseareas, so we have already achieved this goal for our water andwaste reductions and continue to work toward achieving it for
our CO2 and energy reductions.

in Western Europe. We have also expanded our renewable energy
portfolio by building our first wind turbine, which provides 17% of
the power for our Iams pet food plant in the Netherlands.
Solid waste continues to be an important issue to address for ourindustry. Our comprehensive solid waste strategy includes:(1) creating less solid waste by designing waste out of our packaging
and products, (2) driving the waste generated at our manufacturing
facilities that goes to landfill to zero, and (3) working withgovernments and industry partners to catalyze the developmentof waste management systems that divert solid waste fromlandfills or dumps to recycling and incineration with energy
recovery systems.
We could not reach our vision and goals without the help of P&G
employees. Their passion, dedication, and expertise is inspiring.
They are the ones making the small and large steps to make ourCompany more sustainable. Whether they are working directly on
our strategies and goals, initiating grassroots efforts to undertake
important sustainability projects, or passionately serving in theircommunities outside of work, their stories are inspiring. I hope you,
too, will be inspired as you read about a few of them in this report.

Relative to our social investments, we have already surpassed ourgoal of enabling 300 million children to live, learn and thrive,
reaching a total of 315 million by June 2011. We have delivered
2.9 billion liters of clean drinking water and are well on our way
to reach our goal of 4 billion liters. Key to this progress was the
expansion of our P&G Children’s Safe Drinking Water program,which provides clean drinking water through use of our PUR
technology, into four new countries. We are now delivering PUR
packets in 65 countries, with the help of 119 partners.
In September 2010, P&G announced a new long-term environmental
sustainability vision. We also announced a series of additional
2020 goals, focused on Products and Operations. We have madeimportant strides to integrate our new vision into each business unit
and across all of P&G’s operations, and we are making significant
progress towards the new goals. Highlights of this work include
research into the development of renewable materials for our major
material classes, including development of plastic bottles madefrom sugarcane that are now used for Pantene Nature Fusion soldLen Sauers
Vice President, Global Sustainability

4

P&G 2011 Sustainability Overview

Products

GOAL

Develop and market at least$50 billion in cumulative sales of“Sustainable Innovation Products,”
which are products that have an
improved environmental profile.(1)PROGRESS (in U.S. dollars)
Since July 200740$

P&G Report Card2012 Sustainability Goals

Cumulative sales of Sustainable
Innovation Products

billionWe set five-year goals in 2007
across our focus areas of Products,
Operations, and Social Responsibility.
In year four, we are continuing ourefforts to achieve each of our goals,
and we have already achieved threeof them.
Our long-term environmental visionand 2020 goals can be found on
page 25.
These goals, originally set in 2007, were increased in March
2009. The goal for P&G Children’s Safe Drinking Water(CSDW) program was again increased in September 2009.

(1) Sustainable Innovation Products are included if they have launched in market
since July 1, 2007, and have a >10% improvement compared to a previous oralternative version of the product in one or more of the following indicators without
negatively impacting the overall sustainability profile of the product: A. Energy,
B. Water, C. Transportation, D. Amount of material used in packaging or products,
E. Substitution of non-renewable energy or materials with renewable sources.

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The Procter and Gamble Company 5

Operations

Social Responsibility

GOAL

GOAL

Deliver an additional 20% reduction(per unit of production) in energy
consumption, CO2 emissions, disposed
waste, and water consumption
from P&G facilities, leading to a total
reduction over the decade of atleast 50%.

Enable 300 million children to Live,
Learn and Thrive.(1) Prevent 160 million
days of disease from unclean waterand save 20,000 lives by delivering
4 billion liters of clean water throughour P&G Children’s Safe Drinking
Water program.(2)PROGRESS (percent reduction per unit of production)

PROGRESS

Since July 2007

Since July 2002

Since July 2007

LIVE, LEARN AND THRIVE-16 -52%

Energy Usage-12 -53%

CO2 Emissions

GOAL
MET

Waste Disposal

(1)

GOAL
MET

Water Usage%%-57 -61
%

GOAL
MET

Number of Children Reached
P&G CHILDREN’S SAFEDRINKING WATER PROGRAM

Liters of Clean Water Delivered

million

2.9

billion115%-22% -58%

315

Days of Disease Prevented

Lives Saved

million>14,000(1) Live, Learn and Thrive (LLT) is P&G’s global cause that focuses our social
investments on efforts that improve the lives of children in need.

(1) Total waste disposed includes non-hazardous and hazardous solid waste,
air emissions, and strength of effluent measured as chemical oxygen demand.

(2) Within Live, Learn and Thrive, our signature program is P&G Children’s Safe
Drinking Water. Methodology for calculating diarrheal days and mortality wasdeveloped with Population Services International and Aquaya Institute. Details areprovided in the 2011 Sustainability Report found at www.pg.com/sustainability.

6

P&G 2011 Sustainability Overview

Commitment throughOur Products

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The Procter and Gamble Company 7

We are committed to improving people’s everyday lives by making products thatare better for the environment.
To understand how we can make a product more environmentally sustainable,
we analyze its footprint throughout its entire life cycle — from the creation of raw
materials, to manufacturing, to consumer use, to disposal. This helps us focus
where we can make the most significant impact.
For example, by rethinking the raw materials phase of some of our products and how
the products are designed and formulated, we’ve been able to reduce the amountof materials we use, the energy it takes to produce them and the waste at the end of
consumer use. We’ve also begun to replace petroleum-based raw materials in someof our products with sustainably sourced renewable materials.
Sustainable Innovation Products (SIPs) 2010 – 2011
These products have a significantly reduced (>10%) environmental footprint versus a previous or alternative version of the productwithout negatively impacting the overall sustainability profile of the product. These SIPs were identified in Fiscal 10/11.

Product

Region

Swiffer Sweep-n-Vac
North America		

Innovation
Optimization of packaging design delivered a significant reduction
in overall packaging.

Powder Laundry Detergents
North America
Compaction of powder detergents delivered savings in packaging(Cheer, Dreft, Era, Gain, 		
and energy.
Ivory Snow, Tide)			
Pantene Nature Fusion

Western Europe	The introduction of plant-based materials reduced the use of
non-renewable resources.

Gillette Fusion ProGlide Razors

Western Europe	The introduction of plant-based materials reduced the use of
non-renewable resources, and changes to the package structure
achieved an overall reduction in packaging.

Pampers Cruisers
North America
		

Changes to packaging increased the number of units that could beplaced on a truck, delivering an overall reduction in transportation.

Pampers Baby Dry, Swaddlers, New
North America, Western Europe,
Baby, Active Fit, Active Baby, Juegos
Latin America
and Sueños, Cruisers with Dry Max		

Changes to product formulation and package design delivered
reductions in material usage.

Pampers Wipes Sensitive

North America, Western Europe

Changes to product design delivered a reduction in material usage.

Always & Naturella

Latin America, Asia, CEEMEA*,
Western Europe

Significant reduction of the polyethylene bag delivered an overall
reduction in packaging.

AlwaysWestern Europe		

Shelf-ready box with open front and back panels significantly 		
reduced overall packaging usage.

Braun – Oral-B New Generation Charger

Changes to product design delivered a reduction in material usage.

Western Europe, CEEMEA*The CEEMEA region includes Central and Eastern Europe, Middle East, and Africa

8

P&G 2011 Sustainability Overview

Committed to Renewable Materials
A bottle that balances nature. Pantene is piloting the use of plant-based plastic
in its packaging. This innovative material made from sugarcane — a first for the mass
hair care industry — debuted in the Pantene Pro-V Nature Fusion collection last April
in Western Europe, and is expanding to North America in Fall 2011.
Sourced from our supplier Braskem® in Brazil, the sugarcane is converted into ethanol
and eventually into plastic utilizing a by-product from the rest of the plant to provide
some of the energy needed to fuel this process.

Sugarcane is harvested
and taken to a mill.

Sugarcane

The energy needed to
run the fermentation
plant comes fromburning bagasse, afibrous material
remaining after
extraction of the sugar
juice from the cane.

The sugarcane ismechanically crushed,
releasing sugar juice thatis converted to ethanol
through fermentation
with yeast.
EnergyFermentation

The excess energy
is sold to the electricalenergy grid, some ofwhich is used for thepolymerization process.

The ethanol is chemicallyconverted to ethylene,
which is then combined
to make polyethylene.
Energy Grid

Polymerization

Bio-Polyethylene(Bio-PE) is plastic that is
chemically identical topolyethylene plastic
made from petroleum.
Bio-PEThe Procter and Gamble Company 9

T O M F E D E R L E , Research Fellow , P&G Environmental Stewardship Organization“We felt that a highly productive plant like sugarcane could be a sustainable feedstock for
producing next-generation renewable plastic containers. Due diligence dictated that weunderstand the specific agricultural practices being used and potential environmental impacts
associated with the entire life cycle of this new plastic. Given World Wildlife Fund’s expertisein sugarcane and its sourcing, we sought their guidance as we took this first step in a longer
journey toward more sustainable packaging materials. Furthermore, we conducted a numberof comprehensive studies, including a life cycle assessment and a food impact analysis.
Then we went to Brazil, not only to talk to the manufacturer, but to visit fields to see how
farmers grow and harvest the crop and to visit the mills to see how it’s processed. In that way,
we could observe first-hand how potential environmental impacts were avoided or minimized.
As a result of these efforts, we were able to confirm that the sugarcane being used isdefinitely sustainably sourced and the plastic itself provides tangible sustainability benefits.”
In 2011, Dr. Tom Federle was presented the prestigious Samuel Rosen Memorial Awardby the American Oil Chemists’ Society (AOCS) in recognition of his accomplishments insurfactant chemistry.

Plant-based plastic
is a significant
environmental
innovation.
When compared
to traditional
petroleum-based(HDPE) plastic, it:

170

Reduces greenhouse gas (GHG)
emissions by more than 170%
because (1) as sugarcane grows,
it absorbs CO2 that is stored inplastic when it is recycled orlandfilled, and (2) a large portionof the energy used to produce
Bio-PE is from renewable biomass,
which emits less GHG.

70

Consumes over 70% less fossil
fuels than petroleum-based
plastic%%

Can be recycled in traditional
facilities that recycle petroleumbased plastic

10 P&G 2011 Sustainability Overview

Committed to Packaging Reduction
Rethinking packaging from source to shelf. P&G partnered with Be Green® Packaging,a molded fiber supplier, to develop a breakthrough package for Fusion ProGlide, Gillette’s
newest high-performance razor. The new package launched in Western Europe with a 57%
reduction in plastic compared to the originally launched Fusion outer pack and razor tray
and a 20% reduction in gross weight compared to the Fusion launch package. To minimize
plastic, the design uses fiber material made from bamboo, sugarcane, and bulrush.
The innovation stretches the boundaries of what moldable pulp can do, deliveringa breakthrough package out of fiber material. Its structure stays strong under compression,
sealing and opening forces, and distribution and transportation stresses, while also
maintaining a strong visual presence on the shelf. And, like the Fusion packaging inWestern Europe, this new ProGlide packaging is 100% free of Polyvinyl Chloride (PVC).
P&G plans to begin introducing this package in North America in 2012.
M I K E M A R C I N K O W S K I , Principal Engineer, Gillette“To deliver this materials-reduction project, about a dozen of us literally locked ourselves in aroom and worked on it until the design was complete. We focused where we could make thebiggest impact on materials by looking at alternatives to plastics — fiber-based materials suchas bamboo, sugarcane, and bulrush. Be Green was an instrumental partner, and together wewere able to deliver a 57% reduction in the amount of plastic. We feel like we’re leading ourindustry with this approach.”

57%
Reduction in plastic*

100%

PVC free20%
Reduction in gross weight**

The new design significantly reducesmaterials by minimizing the internal tray
and simplifying the design.

Old* vs. Fusion launch outer pack and razor tray** vs. Fusion launch package

New

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The Procter and Gamble Company 11

New
Old

Committed to Compaction
Creating a triple win for customers, retailers, and the planet. Building on previous
years’ success in liquid laundry compaction and advances in powder compaction inWestern Europe, this past winter we compacted our entire portfolio of U.S. and Canadiancarton powder laundry detergents by 33%. Compaction provides meaningful benefits forthe consumer, the retailer, and the environment.
The compacted powder formulas of Tide, Gain, Cheer, Dreft, and Ivory Snow use a higher
proportion of dense active cleaning agents, resulting in the same great performance using
less product. The environment benefits from a smaller carton size that produces less waste.
The retailer benefits because fewer trucks, fewer pallets, and less inventory space allow fora more efficient supply chain.
N I C O L E B O S L E Y, Marketing Manager, P&G Fabric Care

“Consumers today know that compaction means a smaller-sized package. So we focused ourbrand marketing on the improved cleaning power of Tide and the enhanced freshness of
Gain. We utilized coupons and informational inserts placed in pre-compacted and compacted
formulas to educate consumers on the product upgrades behind Tide and Gain and thesmaller packaging. We also leveraged P&G’s Future Friendly platform to communicate theenvironmental benefits of powder compaction. Consumers have reacted positively to the
product being lighter to carry and easier to store. These changes are just a few of the waysthat sustainability can create more benefits for the consumer.”

Up to 6% fewer trucks*(5,900 Trucks)

Up to 28% less corrugate*

Up to 5– 8% less fuel*(6.3 Million Square Meters)(3,360,000 Diesel Liters)*Based on recommended dosage.

12 P&G 2011 Sustainability Overview

Commitment throughOur Operations

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The Procter and Gamble Company 13

Our commitment to improving everyday lives begins with our own day-to-day
operations. And we’re making progress — reducing energy usage and water
consumption, and reducing the amount of manufacturing waste going to landfills.
We’ve expanded this focus on efficient and environmentally responsible operations
across our end-to-end supply chain. We’re collaborating with suppliers on the front
end and our finished product logistics on the back end to make steady, lasting
improvements in our operations.
Energy Usage

CO2 Emissions(Per Unit of Production)

Reduction
since
July 2007

07

08(Per Unit of Production)

-16
09

10

11

07

Water Usage(Per Unit of Production)(Per Unit of Production)

Reduction% since

July 2007

Goal (20%)

-6%

-12

Reduction% since

Waste Disposed

08

09

10

July 2007

11

07

08

Goal (20%)

-11%

-14%

-16%

We are making excellent
progress towards the energy
footprint reduction goal.
Energy usages are derived frompurchased energy, purchased
fuels, and alternative andrenewable energy. Key elements
to delivering the goal are ourefforts to conserve energy
and reapply best-in-classapproaches.

-8%

-10%

-57
09

10

July 2007

11

Goal (20%)

-11%

-12%

While P&G is not an energy
intensive company, we still havea role in controlling greenhousegas emissions, and we aremaking progress. Our focus has
been on direct CO2, which isderived from usage of fuels. In
addition, we continue to makeprogress on Total CO2 (direct +indirect) reductions by making
changes in fuel selection.

-21%

-22%

Reduction% since

-30%

-50%

-57%

Total waste disposed includes
non-hazardous and hazardous
solid waste, air emissions, andstrength of effluent measured
as chemical oxygen demand.
Results have been delivered
through beneficial reuse ofmaterials both internally andexternally.

07

08

09

10

11

-13%

-16%

-22%

Goal (20%)-7%Water consumption reductions
have been driven by a rigorous
conservation program andreapplication of best-in-classprocesses across our businesses.
While this work is focused on
all sites, we put special focus
on our large sites and those inwater scarce areas.

14 P&G 2011 Sustainability Overview

Scrap Dental Floss
Industrial Spill Pillows
Excess floss is repurposed in Mexico as
the filling in pillows that are used to clean
up industrial spills.

Excess Feminine Pads
Shoes
In India, scrap pads are recycled into plastic
soles to make low-cost shoes.

Hair Care Manufacturing Waste
Construction Bricks
In Thailand and China, the waste left
over from the manufacturing process is
combined with clay and coal ash, thenheated to make bricks.

After

BeforeCommitted to Reducing
Manufacturing Waste
Transforming waste into alternative products. To reduce waste at our manufacturing

plants and distribution centers, P&G employs a dedicated global team of experts. The GARP
team (Global Asset Recovery Purchases) has expertise in creating value from waste.

16

Sites have reachedzero manufacturing waste
sent to landfill

When a P&G facility has something it cannot recycle, GARP steps in to help. Thanks to them,
many materials that were once destined for a landfill or incineration are being put to gooduse — or sold for re-use, reducing the virgin materials that other companies require.
To date, 16 P&G plants and distribution centers have achieved zero manufacturing waste sent
to landfill. This means that 100% of their manufacturing waste is beneficially re-used anddiverted from landfills. Shown above are some of the creative ways the GARP team has founda new life for waste.
F O R B E S M c D O U G A L L , Technical Leader, P&G GARP Team“We start by simply focusing on optimizing the recycling of conventional materials such as
cardboard, plastics, and metals. While this seems easy, we must make sure we create
processes that enable our employees to sort everything efficiently and avoid contamination ofthese different materials. Then we bring in our Alternative Use team to help identify solutions
for other scrap materials that have value in specific niche markets, such as wastewater andsludges. In some countries we use sludges as an ingredient in the manufacture of bricks andin others we use them as soil enhancers. I know that the work we are doing within the GARP
team is delivering significant environmental benefits to all of our sites and the communities inwhich they operate.”

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The Procter and Gamble Company 15

Committed to Renewable Energy
5,500
Megawatt hours of energy
produced per year.

Harnessing the wind, saving costs. P&G is expanding its portfolio of renewable energy
sources. With each new investment, these new methods are making us more efficient andself-sufficient, decreasing our dependency on conventional petroleum-based energy sources.

In 2011, we installed a wind turbine at P&G’s pet care plant in Coevorden, Netherlands.
Our first investment in wind energy, this turbine will supply approximately 17% of the petcare plant’s annual energy needs, producing approximately 5,500 megawatt hours ofenergy per year, which is enough energy to power up to 1,500 houses in the Netherlands.
V I N C E N T S T R U Z K A , Plant Finance Manager, Iams Plant, P&G Netherlands

17%
The turbine powers 17% of theplant’s annual energy needs.

“When I came to the plant, I had one focus: to reduce costs. To me, waste is a cost. Energy
is a cost. And when I was looking at how to solve these challenges, I wanted to explore
all of the possibilities. I was surrounded by people thinking green, and we determined thatwind energy was the most appropriate solution for our region, our specific site and our
culture. The community response has been wonderful. People who live here are very proud
to have the first wind turbine in the province. And this initiative was also very energizing
to all of us at P&G.”

Vincent Struzka on top of the
100-meter wind turbine.

16 P&G 2011 Sustainability Overview

38%
of suppliers included
sustainable innovation ideas
in their year-one scorecards.

Scorecards Submitted
by Industry
29% Packaging & Hygiene
14% Chemicals
10% Natural Commodities & Ingredients
9%

Capital9%Global Brand Building

8%

Durables/Devices

7%

External Manufacturing

7%

Global Business Services

7%

Logistics

Committed to Supplier
Environmental Performance
Expanding the supplier scorecard. In 2010, P&G issued its first environmental sustainability
supplier scorecard. The scorecard was designed to track and encourage our suppliers’
own improvements in environmental metrics such as energy, water, waste, greenhouse gas
emissions, and innovation. This tool was also intended to build better collaboration acrossthe supply chain and accelerate sustainable innovation.

Year-one results showed that the scorecard was relevant across the wide range of industries
our suppliers represent. Most suppliers were able to report on the majority of metrics werequested. The scorecard also proved to be an effective way to generate sustainable innovation
ideas from our suppliers, 38% of whom submitted ideas in the first year.
In 2011 we issued a revised scorecard, incorporating supplier feedback from the prior year’s
process. Unlike the first year, when the scorecard was not mandatory to complete, the 2011
scorecard factors into a supplier’s rating and will affect its ability to do more business with
P&G. Details on this open-source tool can be found at www.pgsupplier.com.
N E I L M c F A R L A N E , Director of Sustainability, Firmenich“Sustainability is at the heart of our values and integral to our strategy at Firmenich, and weare pleased to be a member of P&G’s supplier sustainability board. The group is a valuablenetwork for P&G suppliers to talk and discuss innovative ways of improving in the area ofenvironmental sustainability. P&G’s leadership led to the development of an open-source
scorecard, which is an important tool to standardize the scoring process across all industries.
When we filled out the supplier scorecard, seeing the P&G-only numbers helped us identify
opportunities and make improvements along our Supply Chain. We also get inspiration from
P&G’s ambition in this area — a good example being P&G targets on renewable energy use —which we have built into our own 2015 objectives.”

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The Procter and Gamble Company 17

Committed to Sustainable Design
Taking our building efficiency global. To ensure ongoing excellence in the sustainable

design of our operations, P&G has committed to LEED® certify all new construction of
manufacturing plants, distribution centers, and office buildings.

Credit: U.S. Green Building Council

LEED (Leadership in Energy and Environmental Design) is an internationally recognized green
building certification system. Developed by the U.S. Green Building Council (USGBC), LEED
provides building owners and operators with a framework for identifying and implementing
practical and measurable green building design, construction, operations and maintenancesolutions. As the global industry standard for sustainable design, LEED evaluates a facility’s
potential impact in several areas, including CO2 emissions, energy, waste, water, andenvironmental quality.
P&G’s initial sites to pursue LEED certification include plants in Taicang, China; Box Elder, UT, USA;and the Singapore Innovation Center.
S A R W A R S H A R E E F, Associate Director, P&G Global Facilities Engineering“LEED’s primary focus is commercial buildings, so large-scale manufacturing facilities likeours bring added complexity in areas like energy performance and water efficiency. But weare adapting the LEED process globally — whether the project is in China or Brazil or Utah,
you see a highly consistent level of rigor and performance. That takes a lot of education anddiligence among project teams, but we continue to move toward our certification goals.
It’s a process that’s becoming part of our everyday work.”

The Taicang, China, plantis one of P&G’s first sites topursue LEED certification.

Credit:U.S. Green Building Council

18 P&G 2011 Sustainability Overview

Commitment toSocial Responsibility

The Procter and Gamble Company 19

We believe that profit responsibility and social responsibility must go hand-in-hand.
That’s why touching and improving lives is at the heart of our business model, and it’swhat motivates us to make a difference in communities around the world. Throughour global Live, Learn and Thrive Social Responsibility programs, we’re demonstratingthat doing well and doing good can flow from the same Purpose.

LIVE, LEARN AND THRIVE 

Since July 2007

P&G CHILDREN’S SAFEDRINKING WATER PROGRAM

2.9

315

GOAL
MET

millionNumber of Children Reached
60 M

135 M

210 M

Liters of Clean Water Delivered

Days of Disease Prevented

08

09

10

11

billion

115

315 M

Goal
(300 Million (M) cumulative)

07

Since July 2007

Lives Saved

million>14,000

20 P&G 2011 Sustainability Overview

Committed to Disaster Relief
Responding in moments of crisis. Over the past year, natural disasters had a devastating
impact on people in many parts of the world. With compassion and careful planning, wehave worked with relief partners to provide P&G products and services that help people feel
more like themselves — and help a temporary shelter feel more like home. Through these
services that are directly connected to our brands, and through donations of products andcash, we’ve been able to help people in Japan, Pakistan, Australia, New Zealand, Haiti, andthe U.S. rebuild their lives.
I K U K O I M A M U R A , Team Leader, Fundraising Team, Marketing Department, World Vision Japan“After the tsunami hit, P&G provided shampoo and conditioner, which World Vision Japan
included in 10,000 sanitary kits that were distributed to evacuee centers across the affected
region. As we were assembling the kits, an evacuee center requested the family-size bottles ofshampoo, instead of the smaller, travel-size bottles. P&G provided the bottles for World Vision
to distribute. People were used to seeing the larger bottles in their own homes, and in a small
way, having them gave reassurance that they would someday go back to their normal lives.”
Responding to the Japan Earthquake and Tsunami In response to the Japan
earthquake and tsunami in March 2011, P&G sent shipments of Pampers diapers and wipes,
Whisper feminine hygiene products, shampoo and conditioner into the hardest-hit areas.
Duracell Power Relief During the past year’s storms that struck many parts of the U.S.,
Duracell Power Relief trucks were present with flashlights, batteries, and recharging stations
for mobile devices.
Tide Loads of Hope Tide Loads of Hope sent its mobile laundromat to areas across the
U.S., with more than 32 energy-efficient washers and dryers that can clean over 300 loads oflaundry per day.
P&G Children’s Safe Drinking Water Program In July and August of 2010, we mounted
our largest-ever disaster relief response to provide clean water to people in Pakistan affectedby flooding.

The Procter and Gamble Company 21

Helping more than

300,000
children in need.

Venezuela, Mexico, Brazil,
Chile, Colombia, Argentina,
Peru, Costa Rica, Guatemala
and Panama

Committed to Child Development
Partnering to expand the United Way. In Latin America, P&G has helped start up
new United Way organizations across Venezuela, Mexico, Brazil, Chile, Colombia, Argentina,
Peru, Costa Rica, Guatemala, and Panama. P&G people play active roles in these organizations.
Many of our executives serve as board members. Employees from all levels of the Company
contribute their passion and expertise on various committees and activities, and also makefinancial donations.
P&G and the United Way have championed a flagship program called Nacer Aprendiendo(Early Learning). The program promotes broad public awareness of early learning, and has
developed a variety of tools, materials and interventions ranging from Ludotecas (Learn & Play
Centers) in rural areas, to qualifying “Community Mothers” who take care of children while
their mothers are at work.
P&G Latin America and its employees have collected and invested millions of dollars for
Nacer Aprendiendo, helping vulnerable communities across Latin America and benefiting
more than 300,000 children in need.
M A R I A D E L R O S A R I O S I N T E S , Regional Vice President Latin America, United Way Worldwide“From P&G, we’ve gained strategic insight and direction that have changed the way we think
about our programs. We had a meeting with P&G where we had all of the Latin American
United Way organizations together. It was an important moment because we started thinking
beyond our individual, local programs, and more about a coordinated approach to regional
programs. The Nacer Aprendiendo program was the result, and we’re now using it to develop
a model that other organizations can follow.”22 P&G 2011 Sustainability Overview

Committed to Employee Volunteering
Strengthening our community involvement. This year, P&G announced a renewedemphasis on connecting our employees to the Company’s Social Responsibility programs
as one more way all of us can experience and participate in our Purpose more deeply.
We have a long heritage of volunteerism in our Company. P&G people continue to give
selflessly of their time to make our communities stronger and more vital places to live andwork. This has always been part of P&G’s DNA everywhere we do business.
Volunteering deepens our understanding and appreciation of those we serve and seek toserve. Whether we volunteer close to home or thousands of miles away, we see how others
live. We learn about their challenges and their joys. We uncover insights. These insights
lead to innovations that can help us better meet their most fundamental needs. In this way,
we’re helping to improve lives, not just in the moment, but for generations to come.
K I R K P E R R Y, President, Family Care

“I have been with P&G for 21 years. I have worked and lived in three countries, and have
traveled the world. But I have never had the opportunity to develop the depth of relationshipas I did with the people with whom we lived and worked in Mexico. We spent time in theircurrent homes. We grew to understand their living conditions, how they got by, what they
aspired to, what they wanted. As we built their new homes, we took our in-home visits toa whole new level. The team walked away with a deeper commitment to deliver to our lower
income consumers in a way we never have before (regardless of where we were from).
We truly saw how we, and our brands, can touch and improve consumers’ lives. No focus
group, 1:1 interview or in-home visit could have given us this depth.”

We introduced three volunteering
programs and encouraged
all employees to take part.

Individual Volunteering
Opportunities in our local communities
that employees can participate inon their own, or with their families.

Team Building
Opportunities for colleagues to improve
life together, in communities where they
live and work.

Global Service Trips
A new program for employees to assist
one of three Live, Learn and Thrive
programs in Mexico, China, or Malawi.

P&G volunteers perform skits on dental hygienewith migrant Chinese children.

The Procter and Gamble Company 23

This renewed emphasis on committing employee time to gathering consumer and market insights,
while helping address some of the world’s most important social challenges, is just one step on ourjourney to serve and improve the lives of more people, in more parts of the world, more completely.
This is true in the communities where our employees live and work, but it was especially evident for
employees who participated in the first round of Global Service Trips in April and May 2011.

MEXICOMARCOS A. SALAS

P&G Venezuela, R&D
Global Service Trip
to Mexico

Teaching Hygiene“Teaching migrant children in the outskirts of Shanghai was,for lack of a better word, amazing. Our Global Service Team of
16 P&Gers witnessed firsthand the challenging conditions inwhich these migrant families live — tiny apartments withoutclean water, parents with only one day off each month, children
without the right to free education outside their home town.
We were able to impact the children’s lives in a number of ways,
but the insights we gained related to the children’s health andhygiene in the schools were the most powerful. We were able
to use P&G’s expertise in oral care and handwashing to makea difference for the children that will continue for years(and, hopefully, generations) to come.”

M A LAW I

H E AT H E R J A R R E TT

P&G United States, Sales
Global Service Trip
to Malawi

Creating Homes“Our team of 20 P&Gers had never met before, but we shared
a common desire to help improve life for the three families weserved. Before our visit, each family slept in shared beds … incramped rooms … in houses with holes and asbestos in the roof.
Yet they held to dreams of new homes and better opportunities
for their children. As we worked side-by-side with the families, welearned the importance of community and identified opportunities
for P&G innovations that could be shared by multiple families
to help keep them and their children safe and healthy. What a
blessing that our P&G team from around the world could help
provide shelter to the hard-working families we served whilecommitting to making a difference in the future as well.”

CHINA

J U R A J S LOTA

P&G Czech Republic,
Business Analyst
Global Service Trip
to China

Providing Clean Drinking Water“Beyond the birth of my own children, being a part of P&G’s Global
Service Trip to Malawi was the most life-changing experience of
my life. In our week in Africa, our team of 11 incredible employees
helped provide clean water to dozens of villages and thousandsof people. Not surprisingly, one of our greatest insights was theimportance of access to water. While P&G’s PUR technology canmake contaminated water sources safe to drink, having limitedaccess to water can inhibit the health and vibrancy of a community …
imagine not being able to easily wash your hair or brush your teeth
because the nearest water source is miles away. This understanding
may lead to innovations that can help P&G improve the everyday
lives of those we served in Malawi and around the world.”

24 P&G 2011 Sustainability Overview

P&G at a Glance
P&G is recognized as a leading global company, including a #5
ranking on Fortune’s “Global Most Admired Companies,” the #10
ranking on Barron’s “World’s Most Respected Companies List,”a #25 ranking on Business Week’s list of “World’s Most Innovative
Companies,” a #3 ranking on the AMR Research Supply Chain Top 25,
top rankings on the Dow Jones Sustainability Indexes from 2000
to 2011, a ranking on the list of the Global 100 Most Sustainable
Corporations in the World, and a consistent #1 ranking within our

industry on Fortune’s Most Admired list for 26 of 27 total years and for
14 years in a row. In 2010, P&G was recognized by SymphonyIRI Groupas the most innovative manufacturer in the consumer packaged
goods industry for the last decade — presenting the Company withits “Outstanding Achievement in Innovation” award. This year, P&G
was again recognized by SymphonyIRI Group for using innovation tolaunch four of the ten most successful new products of 2010.

2011 Net Sales
By business segment
19%

24%

Grooming

9%
14%
4%

Developing

Western Europe

41%

Health Care

35%

Central & Eastern Europe,
Middle East & Africa

14%

65%

Latin America

Fabric Care & Home Care

Asia

20%

Baby Care & Family Care

Developed

North America

9%

Snacks & Pet Care30%

By market maturity

By geographic region

16%

BeautyResource & Waste Summary
The table below reports environmental statistics for Manufacturing Operations in the Global Business Units, Technical Centers, and Distribution
Centers. It reflects divestiture of Western European Tissue/Towel, Coffee, and Pharmaceutical Businesses.
Totals (absolute units x 1,000)

2011 Global Business Unit Detail (1) (absolute units x 1,000)

2010

2009

BeautyGrooming

HealthCare

Snacks and
Pet Care

Fabric Careand Home
Care

Baby Careand FamilyCare

23,291 24,213

22,936

2,045

730

1,084

1,224

13,377

4,832

0

0

1,080

129

50

47

10

203

154

0

0

2011

Technical Distribution
Centers
Centers

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

593

784

Generated Waste

1,025

1,048

911

141

25

109

52

316

346

15

21

Percent Recycled / Reused Waste

69%

63%

63%

60%

88%

80%

42%

53%

89%

32%

75%

Solid Waste — Non-Hazardous

250

287

270

51

2

18

29

113

24

9

4

Solid Waste — Hazardous

23

28 (2)

27

2

1

1

0

18

0

1

1

Effluents (excluding water)

27

34

24

4

0

2

1

14

5

1

1

Air Emissions (3)

15

15

19

1

0

1

1

4

9

0

0

Energy Consumption (gigajoules )73,998 71,842

70,646

4,014

2,509

3,105

2,908

17,09541,404

2,475

488

Greenhouse Gas Emissions (metric tons) (4)

2,906

2,795

2,625

120

59

57

106

533

1,956

63

13

Water Consumption (cubic meters )79,999 80,914

78,556

6,711

833

1,954

1,873

16,74745,893

5,989

0

1.91

0.05

0.00

0.23

0.00

2.22

0.07

0.00

0.00

Waste ( metric tons )Disposed Waste (metric tons)

Other

SARA Releases(metric tons) (5)

2.57

1.83

1 metric ton = 1,000 kg = 2,205 lbs.
(1) Beauty includes Hair Care and Personal Beauty Care. Grooming includes Blades and Razors, and Devices. Health Care includes Personal Health Care, Feminine Care and Oral Care. Snacks and
Pet Care includes Snacks and Pet Care. Fabric Care and Home Care includes Fabric Care, Home Care, and Batteries. Baby Care and Family Care includes Baby Care and Family Care. TechnicalCenters includes each of the technical and research centers that support the business units. Distribution Centers includes facilities that distribute finished product. 2011 numbers come from
P&G manufacturing sites only; they do not include production from contract manufacturing operations.
(2) Reflects corrected information listed in the 2010 report.
(3) Air emissions include particulates, SO2, NOx, CO and VOC.
(4) Greenhouse gas emissions resulting from fuel combustion sources.
(5) Releases defined in the U.S. Superfund Amendments and Reauthorization Act (SARA) by the U.S. Environmental Protection Agency.



The Procter and Gamble Company 25Long-term Environmental Sustainability Vision and 2020 Goals
P&G is the largest consumer packaged goods company in the world
today. This very fact, coupled with our Purpose-inspired Growth
Strategy — improving the lives of more consumers, in more partsof the world, more completely — requires us to continue to growresponsibly.
In September 2010, we announced a long-term environmental
sustainability vision for our Company that establishes future
expectations for our performance.
We won’t reach this vision overnight; in fact, it will take decades toachieve. So, we have set goals for 2020 to hold ourselves accountableto making progress toward our vision.

Our Long-Term Environmental Sustainability Vision includes:• Using 100% renewable or recycled materials for all
products and packaging• Powering our plants with 100% renewable energy• Having zero consumer or manufacturing waste
go to landfills• Designing products to delight consumers while
maximizing the conservation of resources
For more information on our long-term vision, go to www.pg.com/sustainability.

2 0 2 0 E N V I R O N M E N TA L S U S TA I N A B I L I T Y G O A L S

Products

Replace Petroleum-Based Materials
with Sustainably Sourced
Renewable Materials

25%*

Cold Water Washing

70% of total washing machine loads

Packaging Reduction

20% (per consumer use)*

Consumer Solid Waste	Pilot studies in both developed and developing
markets to understand how to eliminate
landfilled/dumped consumer solid waste

Operations

Renewable Energy
Powering Our Plants

30%

Manufacturing Waste to Landfill<0.5% (disposed)

Truck Transportation
Reduction

20% (km/unit of volume)*© 2011 Procter & Gamble